“A STUDY ON THE WORKING OF THE TEXTILE MANUFACTURING UNIT”

BY KUNJAN SHAH SHATAKSHI GOYAL HARSH SHAH UNDER THE GUIDANCE OF SMIT SHAH DIRECTOR

SUPERNOVA POLYFABS PVT LTD UNIT OF ETCO SPINNERS PVT LTD MUMBAI

ACKNOWLEDGEMENT

We would like to express my profound gratitude to all those who have been instrumental in the preparation of this project report. We wish to place on records, our deep gratitude to our project guide Dr. Rajesh Jain, a highly esteemed and distinguished guide, for help and advice.

INDIAN TEXTILE INDUSTRY

The Textile industry in India traditionally, after agriculture, the only industry that has generated huge employment for both skilled and unskilled labor in textiles. The textile industry continues to be the second largest employment generating sector in India. It offers direct employment to over 35 million in the country. India is the second producer but India will lead in all. According to the Ministry of Textiles, the sector contributes about 14% to industrial production, 4% to the country's gross domestic product (GDP) and 17% to the country's export earnings. The share of textiles in total exports was 11.04% during April–July 2010, as per the Ministry of Textiles. It is estimated that India would increase its textile and apparel share in the world trade to 8% from the current level of 4.5% and reach US$80 billion by 2020. During 2009-2010, Indian textiles industry was pegged at US$55 billion, 64% of which services domestic demand.

Contents
1 History
2 Production
3 Indian Textile Policy
4 Textile Organisation
5 Organized sector
6 References

History

The archaeological surveys and studies have found that the people of Harappan civilization knew the weaving and the spinning of cotton four thousand years ago. Reference to weaving and spinning materials is found in the Vedic Literature also. There was textile trade in India during the early centuries. A block printed and resist-dyed fabrics, whose origin is from Gujarat is found in tombs of Fostat, Egypt. This proves that Indian export of cotton textiles to the Egypt or the Nile Civilization in medieval times were to a large extent. Large quantity of north Indian silk was traded through the silk route in China to the western countries. The Indian silks were often exchanged with the western countries for their spices in the barter system. During the late 17th and 18th century there were large export of the Indian cotton to the western countries to meet the need of the European industries during industrial revolution. Consequently there was development of nationalist movement like the famous Swadeshi movement which was headed by the Aurobindo Ghosh. There was also export of Indian silk, Muslin cloth of Bengal, Bihar and Orissa to other countries by the East Indian Company.
Production

India is the second largest producer of fibre in the world and the major fibre produced is cotton. Other fibres produced in India include silk, jute, wool, and man-made fibers. 60% of the Indian textile Industry is cotton based. The strong domestic demand and the revival of the Economic markets by 2009 has led to huge growth of the Indian textile industry. In December 2010, the domestic cotton price was up by 50% as compared to the December 2009 prices. The causes behind high cotton price are due to the floods in Pakistan and China. India projected a high production of textile (325 lakh bales for 2010 -11). There has been increase in India's share of global textile trading to seven percent in five years. The rising prices are the major concern of the domestic producers of the country. Man Made Fibers: These include manufacturing of clothes using fiber or filament synthetic yarns. It is produced in the large power loom factories. They account for the largest sector of the textile production in India. This sector has a share of 62% of the India's total production and provides employment to about 4.8 million people.
The Cotton Sector: It is the second most developed sector in the Indian Textile industries. It provides employment to huge amount of people but its productions and employment is seasonal depending upon the seasonal nature of the production.
The Handloom Sector: It is well developed and is mainly dependent on the SHGs for their funds. It market share is 13% of the total cloth produced in India.
The Woolen Sector: India is the 7th largest producer of the wool in the world. India also produces 1.8% of the world's total wool.
The Jute Sector: The jute or the golden fiber in India is mainly produced in the Eastern states of our country like Assam, West Bengal. Indian is 3rd largest producer of jute in the world.
The Sericulture and Silk Sector: India is the 2nd largest producer of silk in the world. India produces world's 18% total silk. Mulberry, Eri, Tasar, and Muga are the 3 main types of the silk produced in the country. It is a labor-intensive sector.

Indian Textile Policy

Government of India passed the National Textile Policy in 2000
Textile Organisation

The Indian Textile industry is mainly dominated by some government, semi government and private institutions.
The major functions of the ministry of Textile are:
Textile Policy & Coordination
Man-made Fiber Industry
Cotton Textile Industry
Jute Industry
Silk and sericulture Industry
Wool Industry
Decentralized Powerloom Sector
Export Promotion
Planning & Economic Analysis
Finance Matters
Information Technology (IT)
The advisory boards include:
All India Handlooms Board
All India Handicrafts Board
All India Power looms Board
Advisory Committee under Handlooms Reservation of Articles for Production
Co-ordination Council of Textiles Research Association
Jute Advisory Board
The major export promoting councils include:
Apparel Export Promotion Council, New Delhi
Carpet Export Promotion Council, New Delhi
Cotton Textiles Export Promotion Council, Mumbai
The major PSU or Public Sector Undertaking are:
National Textile Corporation Ltd. (NTC)
British India Corporation Ltd. (BIC)
Cotton Corporation of India Ltd. (CCI)
Jute Corporation of India Ltd. (JCI)
National Jute Manufacturers Corporation (NJMC)
Handicrafts and Handlooms Export Corporation (HHEC)
National Handloom Development Corporation (NHDC)
Export Promotion Council for Handicrafts, New Delhi
Handloom Export Promotion Council, Chennai
Indian Silk Export Promotion Council, Mumbai
Power loom Development & Export Promotion Council, Mumbai
Synthetic & Rayon Textiles Export Promotion Council, Mumbai
Wool & Woolen Export Promotion Council, New Delhi
Other autonomous bodies in this industry are:
Central Wool Development Board, Jodhpur
National Institute of Fashion Technology, New Delhi
National Centre for Jute Diversification
The textile Research Associations are:
Ahmedabad Textiles Industry’s Research Association
Bombay Textiles Research Association, Mumbai
Indian Jute Industries Research association, Kolkata
Man-made Textiles Research Association, Surat
Synthetic and art silk –Mills Research Association, Mumbai
Wool Research Association, Thane
Northern India Textiles Research Association, Ghaziabad
South India Textiles Research Association, Coimbatore

Organized sector

According to Kearney’s ‘Retail Apparel Index’ India ranked as the fourth most promising market for apparel retailers in 2009.There is large scope of improvement in the textile industry of India as there is a huge increase in personal disposable income among the Indians after the 1991 liberalisation. There is also a large growth of the organised sector in the Indian textile industries. The foreign brands along with the collaboration of the Indian companies established business in India. Some of these are Puma, Armani, Benetton, Esprit, Levi Strauss, Hugo Boss, Liz Claiborne, Crocs etc. The major Indian Industries include Bombay Dyeing, Fabindia, Grasim Industries, JCT Limited, Lakshmi Machine Works, Lakshmi Mills and Mysore Silk Factory.

AHMEDABAD AT A GLANCE

The textile industry of the city of Ahmedabad in the state of Gujarat in India dates back to the 19th century, when the city and the industry was established under the British Raj. Textile mills employed thousands of people from across the state, and the cotton garments manufactured were exported across the world. The prosperity of the industry was the mainstay of the city's economy, and Ahmedabad was accordingly termed the "Manchester of the East. The Arvind Mills is a major company that processes denim for jeans worldwide. This industry has proved a great boon for the people of Ahmedabad due to its situation near the Sabarmati River; as such the water required for the textile industry is easily available. The black soil found abundantly in Gujarat is best suited for the cultivation of cotton which is mostly required for the industry. Another major company in Ahmedabad is Ashima group. Electricity and cheap labour are available in abundance. Ahmedabad stands very near to the sea and as such export and import becomes easy. Because of its booming textile industry, Ahmedabad is also known as "The Manchester of world”
“It was far from inevitable that a modern textile industry should have developed in the city of Ahmedabad. In some ways it was even an unsuitable place for one,” observed urban historian Kenneth Gillion. Lack of suitable fuel, an unfavorable climate and inferior quality of cotton grown in the region were Ahmedabad’s main disadvantages. There was no suitable port nearby and the British railway tariff structure proved that Ahmedabad had no geographical advantage in nurturing the modern textile enterprise. However, according to Gillion, “Ahmedabad’s advantages…were indigenous; they were not locational but social and moral.” The city’s ‘vanias’ (business class) remained attached to the city, even in adversity. She had experienced and prestigious financiers and merchants and a skilled work force in her weavers and artisans. The city had long specialized in textiles and was able to carry over her technique and skill into the machine age. Its dominant ethic of hard work, frugality and money making suited the rigors of modernization and met the need for capital. Moreover, trade and finance had had a long-standing relation with production. By the mid-19th century, there was a considerable accumulation of capital and Ahmedabad’s financiers were looking for profitable avenues of investment. They put their money into textile mills. Ahmedabad’s first cotton textile mill, the Ahmedabad Cotton Mill, (owned by the Ahmedabad Spinning and Weaving Company Limited, a joint-stock company) started production on May 30th, 1861. It was a spinning factory of 2,500 spindles employing 63 workers, and catered to the requirements of yarn for the local handloom weavers. It was founded by Rao Bahadur Ranchhodlal Chhotalal, an entrepreneur of Ahmedabad, with an initial capital of Rs 1 lakh and nearly 15 years of groundwork, much of it unsuccessful. Ranchhodlal Chhotalal’s venture attracted others and two more mills were built in 1871 and 1877 by Rao Bahadur Bechardas Ambaidas and Sheth Mansukhbhai Bhaghubhai, respectively. By 1916 there were 51 mills in Ahmedabad and in 1935 there were 67 units in the city. The earliest textile entrepreneurs adopted a unique system of industrial financing - they secured funds from small depositors on personal security. The industry reached its peak in the 60s, when the number of mills hovered around 70, providing employment to around 135,000 persons, with an annual production of 1,146 million yards worth over Rs 100 crores (1961). The post-70s era saw large-scale fragmentation of the industry, with government policy heavily biased towards the handloom and power loom sectors, resulting in a downslide of the organised mill sector, which remains unabated even today.