A WINTER INTERNSHIP PROJECT REPORT

ON THE TOPIC OF PROMOTION MIX IN

VARDHMAN (HKY)

A Project Report Submitted to Ambedkar Institute of Management Studies,

Visakhapatnam in Partial fulfillment for the award of

POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT

Submitted
By

PINAKI PATEL
Regd. no. 27136A

Under the guidance of

Mr.. N. Venkatachary
Ambedkar institute of management studies

AMBEDKAR INSTITUTE OF MANAGEMENT STUDIES.

Sector-12, MVP Colony, Visakhapatnam-17.
Ph. 0891-2783946.
2006-2008
 CERTIFICATE

This is to certify that Mr. Pinaki Patel, student of Post Graduate

Diploma in Business Management at Ambedkar Institute of Management
Studies during the year 2007-2009 has successfully completed the project
work “PROMOTION MIX” in Vardhman (HKY), Unit-1 Ludhiana, as
a partial fulfillment for the award of his post graduation under my
guidance and supervision.

N. Venkatachary
Ambedkar institute of management studies
 DECLARATION

I hear by declare that this project entitled “PROMOTION

MIX” Submitted by me in original to the Vardhman HKY, Sales

office, Ludhiana is a bonafide work of my own and it has not been

submitted to any other college or University and it is not published

any time before.

PLACE :
DATE : PINAKI PATEL
(signature)
 ACKNOWLEDGEMENT

No report ever reflects the efforts of a single individual. The report

owes its existence to the constant support and guidance to a number of
people. I take this opportunity to express our acknowledgement and deep
sense of gratitude to the individuals for rendering valuable assistance and
gratitude to us . Their inputs have played a vital role in success of this
project. A project work is a combination of views, ideas, suggestions &
contributions of many people. Thus, one of the pleasant part of writing
the report is the opportunity to thank those who have contributed towards
it fulfillment.

First of all I am thankful to Dr. C.Nalini, Director I/C of Ambedkar

institute of management studies, Visakhapatnam, for providing an
opportunity to carry out the Project.

I express my heart full gratitude to faculty guide

Mr.N.Venkatachary who has helped me in this project through thick
and thin.

I express our sincere thanks to Mr. Lalit Mahajan, Chief Manager,

Sales office, Ludhiana for his generous support, constant direction and
mentoring at all stages of training. I owe my debt to my company guide
Mr.Ankush Khanna for his regular encouragement and time to time
consideration at every stage.

I take this opportunity to thank all Dealers, Agents and Consumers

who spared their precious time to provide us with valuable inputs for
project without which it would have not been possible. We owe our
whole-hearted thanks to the entire staff of Vardhman Spinning &
General Mills. for their kind cooperation and assistance during the
course of our project. Last but not the least, I are grateful to God & my
Parents for giving us physical, mental & financial assistance to complete
this arduous task.

HOWEVER, I ACCEPT THE SOLE RESPONSIBILITY OF ANY POSSIBLE

ERROR OR OMISSION.

Place:
Date: Pinaki Patel
 PREFACE

When everybody is providing what is expected from him/her , the

person delivering the unexpected to its customers succeeds in the long
run . In today’s marketplace, it is no longer enough to satisfy the
customers, the manufacturer needs to delight them as well. To conquer
the modern business world one needs to be one step ahead of its
competitors.

MBA is combination of both theoretical as well as practical aspects of

business and winter training gives a good opportunity to work in a real
work environment . The concept of winter training , which is there in the
curriculum of business management schools , serves three important
purposes:

Firstly: It gives the student a fair amount of insight of problems faced by

them .

Secondly: The winter training project helps business management

students to get a firsthand experience of actual working condition, which
otherwise is possible only when a student enters a job.

Thirdly: Winter training is a learning ground , which helps us to relate the

workings of the corporate world with the class room teaching.

Winter training helps the students to view the real business world
closely, which in turn widely influences their conceptions and
perceptions . I was fortunate to pursue our training in a reputed, well
established , fast growing and a professionally managed organization.

This project report is the result of eight weeks training at Vardhman

Spinning and General Mills, Ludhiana. It has given me a great deal of
exposure and I have found practical work very different from theoretical
one.
 CONTENTS
CHAPTER – I

• INTRODUCTION
• ABOUT VARDHMAN
• HAND KNITTING YARN
• NEED FOR THE STUDY
• OBJECTIVE OF THE STUDY
• METHODOLOGY
• LIMITATIONS

CHAPTER-II

• THEORITICAL FRAMEWORK
• PROMOTION MIX IN VARDHMAN
• ADVERTISING
• SALES PROMOTION
• EVENTS
• PUBLIC RELATION

CHAPTER-III

• DATA ANALYSIS AND INTERPRETATION

CHAPTER-IV

• FINDINGS
• SUGGESTION
• CONCLUSION
• BIBLIOGRAPHY
• QUESTIONNAIRE
CHAPTER – I
 INTRODUCTION

THE 8 SECRETS OF SUCCESS OF

VARDHMAN:

There are hundred of business books and number of

journals and magazines published every year on
successful business operation. However, if put nutshell for
common mans it can be distilled in 8 major secrets.

♣NOT SOLELY FOR MONEY: 1ST secret is that successful

companies are not in business solely for the money.
“ Henry Ford” remarked that a company which only
makes money is no sort of company at all.
“For successful companies money is a by- product of
doing the right things”

♣ CULTURE: Strong culture, faster than other, friendly

and goal oriented.

♣ CUSTOMERS: Try to understand the customers, what

customers actually wants that are understand by
VARDHMAN, not vague idea, need aspiration and
behavior.

♣ WHAT IN BUSINESS: They know what is important and

this is reflected in their impulsion of their employees.

♣ COMMUNICATION: Successful companies are

president and powerful communicator. People keep
information and bright idea to themselves or communicate
with a select few.

♣ SIMPLICTY: Not a secret at all keep faith in simple

practice and principles is the presence of the chosen few.
♣ LEARDERSHIP: Leader in sense overall activities he
control ability and skill.

♣ RESULT : Make profit but make customer delight.

Total Productivity Maintenance (TPM)

What is TPM

It aims to create a corporate system that maximizes

the efficiency of the production system. TPM is based on
participation of all members, ranging from the top
management to front line employees.

TPM policy of Vardhman Group

Maximize overall effectiveness and reliability of the

plant and machinery by aiming at “ Zero Break Down”, “
Zero Accident” through nurturing team work and
continuous development of all employees, following TPM
road map for implementation of “ Total Preventive
Maintenance” ( TPM ) in the company.
 TPM mission and How Training Related

It come under the training because trainers give

knowledge of TPM to employees and its mission is to
maximize overall equipment effectiveness and improve
flexibility through achievement of total reliability of the
plant and machines and development of human recourses
by us hearing cultural change by involving all personal
working in the company.
SWOT ANALYSIS
STRENGTHS: -
1) Good Brand Equity

2) Good technological Base with foreign collaboration.

3) High quality standards

4) High production capacity

5) Own research and development department

6) Reliable Human Capital

7) Commitment for growth

8) Vardhman group’s Culture and philosophy

WEAKNESSES: -
1) Comparatively higher price
2) Lesser degree of promotional activities
3) Long hierarchy

OPPORTUNITIES:-
1) As quality is good and prices are comparatively high, Vardhman can
always easily liquidate stock pressure by slight reduction in prices.
2) As brand image is very good and production is too wide ,

THREATS: -
 1) Smaller players in the market are using Vardhman’s prices
as shield to push their product at lower prices.
2) Hand knitting yarn trend is declining as next generation prefers
readymade sweaters.

FROM THE CHAIRMAN’S DESK

It gives me immense pleasure to share with you my perception of

the textile business and some of our initiatives. The global textile trade is
chugging along as envisaged in my earlier communications. A few years
ago, when the world trade was less than $400 bn, we had projected the
trade to grow to $600-$700 bn by 2010. According to WTO data, the
world trade in textiles and clothing touched $530 bn in 2006. We expect
the trade to keep growing at 5-6 percent in the coming years to reach
$700 bn by 2011. My optimism flows from the fact that there has been
steady build up of capacities in the major textile producing countries
including India. However, the recent global economic developments,
escalating cotton prices and galloping oil prices pose a formidable
challenge for the textile producers.

The Indian Textile Industry has witnessed growing flow of

investments during the last three years. According to statistics compiled
by the Ministry of Textiles, projects worth RS.124627 crore have been
sanctioned under Technology Up gradation Fund up to 31st March 2008.
As a consequence, the fiber consumption in the country has increased
from 5.8mn tons in 2005 to 6.5 mn tons in 2007. Although, the industry is

facing the excess supply at this juncture, I am hopeful the new capacity
will lead to greater economies of scale, product diversity and
consolidation in the industry, which will strengthen the competitiveness
of the industry in the future.

At Vardhman Textiles Limited, the new yarn unit- Vardhman Yarns at

Satlapur (MP) has expanded capacity to 1.23 lac spindles. The expansion
to ultimate capacity of 2.30 lacs spindles is undergoing steady
implementation. The integrated fabric project at Budhni (MP) has
recently been commissioned. On achieving its full capacity, the unit will
have 60,000 spindles for yarn spinning, 400 air jet looms for weaving and
fabric processing capacity of 60 mn meters per annum. This will put
Vardhman among the select group of companies having fabric production
capacity of above 100 million meters per annum. The new capacities will
enable us to serve our customers better. Both these plants are new and
would face teething problems. However, with the long experience,
knowledge and expertise of the Group, I am sure these plants will achieve
stability and benchmark performance parameters in the near future.

I look forward to the continued support of all stakeholders in taking

Vardhman Textiles Limited towards new milestones.

With best wishes,

(S.P. OSWAL)
Chairman & Managing Director
 ABOUT THE ORGANIZATION

VARDHMAN GROUP
An Overview

The Industrial city of Ludhiana, also known as the

Manchester of India nestles the corporate Headquarters of
the Vardhman group. Vardhman, a household name in
Northern India, has carved out a niche for itself in the
Textile Industry. The Vardhman Group was setup in 1965
by Late Lala Rattan Chand Oswal, Father of the present
Chairman cum Managing Director, Shri S.P. Oswal. Since
then, the group expanded manifold and is today, perhaps
the, largest textile conglomerate .The Vardhman group’s
five companies and 16 production units are located in
Punjab, Himachal Pradesh and Madhya Pradesh. A growth
rate of almost 15% per year is reflected in the financial
results of last five years of this group.

Vardhman Group started in a humble way in 1965

with a spinning unit at Ludhiana, having an installed
capacity 14000 spindles, the largest in India. Vardhman
Group has a Rs.5000 million structured expansion
programs that focuses on forward and backward and
backward integration to transform the group into a
composite textile manufacturer .Today, Vardhman’s
products have a strong presence in some of most quality
conscious markets of world due to its orientation, state of
art and technology & technical tie ups with specialists
worldwide. VARDHMAN Group was awarded first ISO 9002
accreditation for any textile manufacturing in India. It has
also won the “Outstanding Export achievement Award” for
the year 1996-1997 from the president of India & and the
“State Export award” for five successive years. This
strength comes from the total effort being built around the
customer by a workforce of 20,000 committed personnel.
The group’s HRD philosophy is centered on the faith that
people are our basic strength & resources & the total
commitment towards training &Development of all the
employees is a step in the direction.
The BADDI Operation started in March 1991 with “Auro
Spinning Mills” with a capacity of 18,000 spindles &
today have three units & a production capacity of 65,000
spindles to manufacture Cotton /Acrylic/Blended Yarns.

Today the Vardhman group comprises of three listed and

two unlisted companies-

Listed Companies and Plants:

♣ Vardhman Holdings and Plants
(Formerly known as Vardhman Spg.& Gen.Mills)
♣Vardhman Textiles . (Formerly known as Mahavir
Spinning Mills.)
♣Vardhman Acrylics, Bharuch (Gujarat) in 1998-99

Unlisted Companies:
♣VMT spinning Co. at Baddi, H.P.(in 1996-97)
♣Vardhman Yarns & threads.
.

Units of Vardhman Textiles Limited:

1.Vardhman Spinning and General Mills.

UNIT LOCATION PRODUCT RANGE

Vardhman Spinning and Ludhiana (Punjab) Cotton, Blended, Acrylic,

General Mills Ltd.( Unit-I & Hand Knitting, Industrial Yarn
II)

Auro Spinning Mills Baddi (H.P) Cotton, Blended, Fiber, Dyed

Yarns

Auro Dyeing Mills Baddi (H.P) Yarns and Fiber dyeing

Auro Weaving mills Baddi (H.P) Grey Poplin, sheeting, shirting

Auro Textile Mills Baddi (H.P) Fabric Processing

VSGM Baddi (H.P) Cotton Yarn

Vardhman Fabric Budhni(M.P) Fabric

UNIT LOCATION PRODUCT RANGE

Mahavir Spinning Mills Hoshiarpur (Punjab) Sewing Thread and

Ltd. (Unit I) Industrial Thread

Mahavir Spinning Mills Ludhiana (Punjab) Sewing Thread and

Ltd. (Unit II) Industrial Thread

M.S.M.L Pendurai Sewing Thread

Gas Mercerized Unit Hoshiarpur (Punjab) Cotton yarn

Arihant Spinning Mills Malerkotla (Punjab) Cotton, Blended, Melange
Yarns

Arisht Spinning Mills Baddi (H.P) Cotton, Blended Yarns

Arisht Spinning Mills Baddi (H.P) Cotton, Blended Yarns

(100% EOU)

Anant Spinning Mills Mandideep (M.P) Cotton, Blended Yarns

Vardhman Special Steels Ludhiana (Punjab) Special Steel, Alloy Steel

Ltd.

Map showing manufacturing as well as

distribution units of Vardhman group:
STATE WISE DISTRIBUTION OF MANUFACTURING UNITS :

♣ PUNJAB 7

♣HIMACHAL PRADESH 8

♣MADHYA PRADESH 1

♣ GUJRAT 1

HISTORY OF VARDHMAN GROUP

 The Vardhman group is professionally managed multi
product organization producing and marketing
synthetic/cotton yarn, sewing threat and steel, meeting
the need for quality products in the domestic as well as
foreign markets.
The Vardhman group started its corporate journey under
the leadership of Late Rattan Chad Oswal with its flagship
Co. VSGM in the “Manchester of India”, Ludhiana.
The unit was incorporated on 27th Dec 1962 and started
commercial production of yarn with 14000 spindles in No.
1965. In 1977-1978 the unit diversified into Acrylic yarn
spinning by being the first Textile Mill in the country to
spin Acrylic on modified cotton spindles and also to
introduce “Hand Knitting Yarn” for the first time.

Mahavir Spinning Mills Ltd. Was started in 1976 with a

4-tons capacity installation of manufacturing and
marketing of sewing thread. Today Vardhman threads with
a capacity of 19 tones are one of the largest sewing
thread brads in India.
The group ventured in the steel business when it started
Oswal Steels, in 1973. Vardhman Steels business
expanded when it purchased Mohta Steels in 1983 and
recommissioned it as Vardhman Special steels producing
specialized alloy steels. Vardhman has become a leading
textile group in India having diversified yarns, Hand
knitting yarn, sewing threads, fibers, special alloy steel &
more recently textiles.
The group has 17 operational plants with the current
installed capacity of 5,26,000 spindles, 216 air jet looms
and about 45 tons per day dyeing capacity capable of
processing variety of raw materials world wide.

Another step forward has been the entry of Vardhman

into the Grey fabric and readymade garments sector. Auro
weaving was commissioned in mid 1992 and is exporting
90% of its production. A fabric processing unit Auro
textiles has started its commercial production of
processed suiting and shirting the latest foray into the
field of textiles by the Vardhman group, has been its entry
into readymade garments sector with “Aspen wood” and
“Berkley” suiting and shirting.
 Today, through its vision about the dedicated efforts in
continuously improving the business it has not only
expanded its business and capacities but also established
a firm footing and quiet essential values that lend the
group and unassailable strengthened to face the future

The group has a strong presence in the markets of

Japan, Hong Kong, Korea, U.K. and EU in addition to the
domestic markets. The group has been awarded the
prestigious “Texprocil” award for excellence in exports
regularly over the years. A true dedication to quality has
resulted in Vardhman being the first textile mill in the
country to obtain the coveted ISO 9002- Quality
Certification.

With a sales turnover of approx. 2200 crores,

consistent strong financial performance and excellent
goodwill in the market, Vardhman stands to grow further
on and on the road of success.
MISSION STATEMENT OF VARDHMAN

Vardhman aims to be world class textile organization

producing diverse ranges of products for the globle textile
market. Vardhman seeks to achieve customer delight
through excellence in manufacturing and customer service
based on creative combination of state- of- art technology
and human resources. Vardhman is committed to be
responsible corporate citizen. The mission of vardhman
group can be summed up in a single line i.e. “being world
class spinners by providing high quality products with
minimum cost”.

♣ Supermarket of High Quality Yarns

♣ To be Globally Recognized as a Leading supplier of Quality Fabric

Vision Statement of Vardhman group:

Vardhman aims to be world-class textile organization

producing diverse range of products for the global textile
market. Vardhman seeks to achieve customer delight
through excellence in manufacturing and customer service
based on creative combination of state-of-the-art
technology and human resources. Vardhman is committed
to be responsible corporate citizen.

S P Oswal, Chairman - Vardhman Group

MARKET POSITION OF VARDHMAN GROUP:

♣Largest Spinning capacity in India - over half a million spindles.

♣Largest producer of Cotton, Synthetics and Blended yarns in the

country

♣Largest Dyeing Capacity of Fibre and Yarn

♣Largest Exporter of Cotton Yarn

♣Market Leader in Hand Knitting Yarns in India

♣Largest range of Textile products

♣Second largest producer of Sewing Thread in the country

♣Collaborations with specialist worldwide

♣ERP (Enterprise Resource Planning) enabled solutions for online order

tracking

We export to the world!

Some of our prominent markets are -
Australia Portugal
South Africa Iran
Tunisia Morocco
Brazil Turkey
Bangladesh Russia
Belgium Saudi Arabia
China Singapore
Canada Sri Lanka
Colombia Spain
Egypt Switzerland
Germany Syria
Greece Thailand
Hongkong U.K.
Indonesia Ukraine
Israel Uruguay
Italy USA
Japan Venezuela
Korea Vietnam
Lebanon Newzealand
Malasiya Mauritius
 Sri Aurobindo Socio-Economic and Management Research Institute
is engaged in the promotion of education, research and publications
highlighting social and economic issues facing the society. The Institute
runs a Human Resource Development Centre for providing career
counseling and guidance to college students in Punjab. The teams of
experts also visit the colleges in the state to prepare college students for
gainful employment in the industry.

Sprung from a keen desire to set up an educational institution in

Ludhiana and inspired by the writings of Sri Aurobindo and the Mother,
the Trust has set up a college - Sri Aurobindo College of Commerce and
Management (affiliated to the Punjab University) with the mission to
create an institution with distinction dedicated to the ideals of creating
disciplined career oriented young people ready for going for
administrative and management roles in enterprises or to set up their own
business as entrepreneurs.
 Mr. Oswal with Faculty at the College
A Vardhman initiative to improve the yield of cotton in Punjab in
2001 when the State had suffered a shock of crop devastation and area
under cotton cultivation was dwindling, led to the experiment to adopt
villages and see whether concerted efforts in bringing knowledge to
farmers could improve the yield of cotton. The experiment was successful
as it improved the yield of cotton to 873 kg/hectare in 2005 in adopted
villages where the average yield of cotton in the State of Punjab was 587
kg/hectare (world average - 700 kg/hectare). It found mention in the
President's broadcast on Technology Day (11/05/04) as a 'technological
event, which has the potential to penetrate into our everyday lives'. The
Village Adoption Programme also found mention in the President's
address to the nation on the eve of India's 56th Republic day. The
President of India was gracious to bless one of the participating Villages
-'Gehri Buttar' (District - Bathinda) by his presence on December 10th
2005.

Vardhman is actively
engaged in the activities
of Nimbua Greenfield
Punjab Limited
(www.ngpl.co.in) formed
by a consortium of
Industries of Punjab for
developing a common facility for storage, treatment and disposal of
hazardous wastes generated by the Industry with a Government of India
grant

Vardhman has one of the largest spinning capacities in

India with a spindlage of more than 500,000. Vardhman
Threads has emerged as second largest sewing thread
brand in the country. In fabrics, the Group has already
made its mark as a quality producer of grey poplin
/shirting / suiting in the home market and has also entered
the highly competitive export market within this short
span, now exporting fairly large volume of its production.
Vardhman established a modern fabric process house in
1999 with a capacity of 30 million meters per annum. This
capacity has been expanded to 42 million meters per
annum in FY 2005-06. Set up in technical collaboration
with Marubeni and Japan Exlan of Japan, the acrylic fibre
plant has an annual capacity of 16500 metric tonnes
annum. The steel mill has been modernised and expanded
to a capacity of 100000 metric tonnes per annum.
Spinning Business
Spindle Capacity
Existing 5,36,440
Post Expansion 7,76,440
Fabric Business
Fabric Production in Lac (100 thousand) Metres/Month
Auro Textiles (Existing) 42
Post Expansion 85-90
Sewing Thread Business
Production in Metric Tonnes/Day
Total 28.30
Dyeing (Yarn & Fibre) & Mercerising
Production in Metric Tonnes/Day
Total 54.5
Steel Business
Production in Metric Tonnes/Annum
SMS 100000
Rolling Mill 84000
Acrylic Fibre Business
Production in Metric Tonnes/Annum
Total 18500
 LOGO OF VARDHMAN GROUP

The logo of Vardhman group has significance in each and every

part, it contains. The “flame” signifies growth i.e growth of the
company along with the growth of each and every individual
associated with it whether he/she is a worker, employee, employer,
shareholders or customers.

The “Stick” symbolizes cotton that is basic raw material of the

core product of Vardhman

The “V” stands for Vardhman group.

♣ Faith in bright future of Indian textiles and hence continued expansion
in areas “which we know best”.

♣ Total customer focus in all operational areas as ensuring quick and

positive response to the customer’s needs.

♣ Products to be of best available quality for premium market segments

through TQM and zero defect implementation on all functional areas.

♣Global orientation targeting at-least 20-25% production for exports.

♣Integrated diversification/product range expansion.

♣World class manufacturing facilities with most modern R&D and

process technology.

♣Timely delivery with consistent standards.

♣Believing that trust is foundation for a durable relationship between the

employer and the employee.

♣Faith in individual potential and respect for human values.

♣Encouraging innovation for constant improvements to achieve

excellence in all functional areas.

♣Accepting change as a way of organizational growth.

♣Developing relationship in mutual benefit with business

partners/dealers.

♣Appreciating our role as a responsible corporate citizen.

Desktop of Vardhman
Vardhman Textiles Limited
Board of Directors –
Mr. Shri Paul Oswal - Chairman & Managing Director
Sh. Ajay Kumar Chakraborty - (Nominee Of ICICI Bank Ltd.)
Sh.Vinod Kumar Saxena - (Nominee of IDBI)
Sh.Sachit Jain - Executive Director
Sh.Suchita Jain - Executive Director
Sh Darshan Lal Sharma - President & Executive Director
Sh. Prafull Anubhai
Sh.Surinder Kumar Bansal
Sh.Subash Khanchand Bijlani
Dr.J.C.Bakshi

Vardhman Holdings Limited

Board of Directors –
Mr. Shri Paul Oswal - Chairman
Sh. Surinder Singh Bagai
Sh. Jagdish Rai Singal
Sh. Chaman Lal Jain
Sh. Ram Swarup Gupta
Sh. Bal Krishan Choudhary
Sh. Sachit Jain
Sh. Shakun Oswal
Suchita Jain
 VARIOUS DEPARTMENTS OF VARDHMAN GROUP

GROUP CORPORATE OFFICE

Vardhman has a modern centrally air-conditioned multi stored
Corporate building that serves as the original place from where all
Strategies, policies, programs, rules and regulations take shape, data
Implemented, in each group company. The corporate building houses of
the top bosses including chairman cum managing director, Executive
director, corporate general manager and vice president of the Functional
areas. The other facilities include meeting room, boardroom, conference
halls etc.

FINANCE DEPARTMENT
The main functions of corporate finance department in Vardhman, is as
prescribed in a typical financial management book, is to arrange funds for
the whole group at least cost and to utilize in such a way so as to enhance
the shareholders wealth. The core activities of this dept. include arranging
short term funds and export negotiations and deploying short term and
long term funds in the best and effective way.

PERSONNEL AND HRD DEPARTMENT

Vardhman is one of the few organizations in the northern part of the
country, which has reposed its faith in professional management since the
early stages of growth. The philosophy of the org. has been to promote a
culture conductive to a professional style of decision making in business
and also to ensure that young executives having the right attitude and
facilities are suitably trained in the org. so that they are able to contribute
its success.

RAW MATERIAL AND COMMERCIAL DEPARTMENT

The two main functions of this department are procurement of raw
material and dealing with various government and non governmental
agencies for smooth functioning of the company. The department
procures raw material like raw cotton, synthetic material and other related
things from various sources within the country and from the foreign
markets. The domestic raw material market is mainly divided into three
parts viz. northern zone, central zone and southern zone. The inputs are
from various countries like Egypt, America, Australia, West Africa,
Chile, Syria etc. The commercial functions of this department mainly
comprises of:
• Formulation of import / export policies of the company.
• Considering benefits against imports.
• Incentives from the government.
• Excise and subsidies
• Licensing
• Foreign exchange and RBI related activities.

SECRETARIAL DEPARTMENT
The corporate secretarial houses the offices of the company secretaries of
the Vardhman Spinning And General Mills Ltd, Mahavir Spinning Mills.
It deals with the compliance of all the statutory laws under company’s
act. The filling of the return, assessment of shareholder’s wealth as well
as listing of shares in the stock exchanges is also done by the dept. The
annual general meeting and board meeting are also conducted.

MIS DEPARTMENT

This department is hub of all the information regarding all the unit of
group. It gathers information from various department and units of the
group and processes it and provides to the management for decision
making process. This department formulates the daily profitability reports
of all the units and sends them to the CMD. The role of this department
has considerably widened. Now it deals with generating reports on cost
production, manpower, development etc. It sets standard of the performance, gives
reasons deviation if any and also suggest corrective measures.

INTERNAL AUDIT DEPARTMENT

Internal audit system is an independent and impartial appraisal function
to examine and evaluate an organization’s activities and services as eyes
and ears of the management for knowing and evaluating the areas which
were weak and need strengthening. As Vardhman has grown in the size
and complexity over the two decades, the scope of internal audit function
has changed. Now the internal audit has begun to focus more and more
on such items operational appraisals, analysis of data processing system,
management cost studies etc. through this department the management
ensures that management control system is functioning properly, policies
and procedure are being reviewed constantly and that there is a
systematic program of review and appraisal.

PROJECTS DEPARTMENT
The Corporate projects and purchase departments have various sections
like:
 • Civil section
• Planning section
• Purchase Section
• Insurance Section
• Technical Section

The civil section deals with all the infrastructural construction like sheds
in case of mill, utilities like compressor, sub-station, boilers, Manav
Vikas Kendra etc. They also go in for negotiation with the contractor and
also do physical checking at the sight end of the material.
The planning function includes preparing reports of each project by
coordination with the civil and purchase.
The purchase section gets offer for machines does the comparison, calls
the parties that suits the requirement, the most and does the necessary
negotiation.
The insurance section looks after the group’s insurance scheme.
The technical section deals with the specification of all the machinery.
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AWARDS AND ACHIEVEMENTS:

1989-90: State award for outstanding award in exports.

1990-91: Bronze trophy for third largest mill yarn exporter.

1991-92: Bronze trophy for third largest mill yarn exporter.

1993-94: Gold trophy for largest merchant exporter of yarn. Golden

trophy for largest Merchant of yarn to non-quota markets. Bronze trophy
for third largest merchant of grey woven fabrics.
1994-95: Gold trophy for largest merchant exporter of yarn . Bronze
trophy for third largest merchant of grey woven fabrics .Government of
India award for outstanding Exports Performance.

1995-96: Outstanding export performance in exports .

1996-97: Silver trophy outstanding performance in exports .

1997-98: Texprocil bronze trophy for third highest export in 100% EOU.

1998-99: Texprocil silver trophy for second highest export in

EOU.Texprocil silver Trophy for second highest export of yarn to non-
quota market.Bronze trophy for third largest mill yarn exporter .

2002-03: Texprocil Gold trophy,Shri S.P.Oswal,CMD Vardhman Gropup

received from Honourable Union Minister of Textile,Government of
India.

2003-04: Mr. Sachin Jain ,Executive Director,Vardhman received Gold

trophy for export of cotton yarn 2003-04,from Honourable
Minister,Mr.Shankar Singh Vaghela.

2003-04: Madam Suchita Jain,Executive director,Vardhman received

bronze trophy in mill exporter’s category.
 BUSINESS OF THE GROUP YARN:

The group is the largest spinning group of the country spindliest of

about 7 lakh spindles. The group has nineteen production plants located
in the states of Punjab, Himachal Pradesh, and Madhya Pradesh. In many
of the market segments Vardhman holds the position of market leader,
besides being large and reliable supplier in the country. Vardhman is also
the largest exporter of yarn form India. The group yarn exports amount
to over USD 100 million covering the most quality conscious markets in
the world. Vardhman possesses state-of art technology from Switzerland,
Germany, Japan, Korea, and Italy. Vardhman offers a wide range
specialized grey and dyed yarn in cotton, polyester, acrylic and a variety
of blends. Quality consciousness both in products and services has made
Vardhman a standard for others to follow. 1965 was a humble beginning.
Three decades of hard work, commitment and constant innovation have
resulted in well earned trust and goodwill of our customers across the
globe.

At Vardhman, we move with the notion that Customer service is a

way of life. We strive to provide our customers a delight with 3P services
- Prompt , Polite and Personalised. We today have a capacity of over half
a million spindles along with two dyeing plants bearing a capacity of
more than 27 tons Yarn and 22 ton Fiber per day. Our goal therefore calls
for serving our customers with a multiple range of products meeting the
most diverse of requirements. This, in fact has positioned Vardhman as a
“Supermarket of High Quality Yarns”
Grey Yarn

Cotton Hosiery, Weaving, Open End & Tyrecord Yarn

Acrylic Yarn (Bulk & Regular)

Polyester Cotton Yarn

Special Blended Yarns

(Cotton - Wool, Cotton - Acrylic, Cotton - Viscose,
Polyester - Acrylic - Viscose, Lycra - Blended)

Compact Yarn

Dyed Yarns

Crayons (Package Dyed Cotton Yarn)

Rainbow (100% Fibre Dyed Cotton Yarn)

Rangoli (100% Cotton Melange Yarn)

Gassed Mercerised Cotton Yarn

Paragon (Fibre Dyed Polyester Cotton Yarn)

Harmony (Fibre Dyed Polyester Cotton Melange Yarn)

Padam (Superior Tow Dyed Acrylic Bulked Yarn)

Daffodil (Tow Dyed Acrylic Bulked Yarn)

Yarn Dyed Acrylic

Hand Knitting Yarn

Speciality Yarns
 Hank Dyed Cotton Yarn.

YARNS - Production Capacity

VARDHMAN GROUP (TEXTILE UNITS)

Distribution of Installed Spindlage Capacity

Vardhman group has an Installed capacity of more than half a million

spindles and out of it about one lac seventy four thousands spindles are
fully dedicated to exports only. Having build up giant capacity in term of
more than half million spindle spanned over 15 units out of 4 units are
dedicated to exports only (EOU), state-of-the-art technology. Dextrose
hands capable of playing rhythm with machines sourced from best
available around the world has made Vardhman a gallery of variety of
world class Yarns.

*EOU -100% dedicated to Exports only

* NON EOU - Produce for domestic as well as for export market
Sewing Thread and Industrial Thread:

Vardhman entered the Sewing thread business in 1982 as a forward

integration to its yarn business. The group had to struggle for survival
being pitted against a large multinational organization. Today, Vardhman
threads in all their OURriad forms have becomes a household name all
over India. With a capacity of around 28.5 metric tons per day in its plant
at Hoshiarpur. Ludhiana and Baddi it is one of the largest selling brands
in India. Vardhman threads have emerged as the second largest seller of
sewing thread brand in the country, next to Madura Coats Ltd. It caters to
industries as diverse as garments, leather, hosiery etc. It also
manufactures high quality “specialty threads” as its unit in Baddi.

Fabric:

Vardhman’s recent entry into grey fabric weaving at Baddi (H.P)

commissioned in mid 2007 with a capacity of 40 mn meters per annum. It
has already made its mark as a quality producer of grey
poplin/suiting/shirting in the home market and also entered the highly
competitive export market within a short span, now exporting 90% of the
production of Auro Weaving. The weaving unit at Baddi.
Fibre:

Vardhman ventured into the manufacture of acrylic fibre in 1999. The

joint venture, VAL, was set up together with two leading Japanese
business house namely Japan Exlan Company Ltd., a part of Toyobo
group of Japan & Marubeni Corporation, Japan. It has manufacturing
capacity of 50 tons per day at Jhagadia, Gujarat in Western India. The
products are marketed under the brand name VARLAN. ‘Varlan’ fibre
has acquired Indian Market for its use in a wide variety of applications
such as Hand Knitting Yarn; Machine knitting yarn for blankets, jerseys,
sweaters, saris, dress material, upholstery, furnishing fabrics, velvets,
Carpets etc. The group is one of the largest consumers of Acrylic Staple
Fibre in India.

Steel:
The steel business was set up in 1973 as diversification with a capacity of
35000 mt per annum. Later on group acquired a steel plant from Mohta
Group of industries (now known as Vardhman Special Steel) in 1986 and
converted this loss making unit into a profitable business in first year of
operation with the group. Subsequently the steel mill has been
modernized and expanded to a capacity of 1 lacs mt per annum. Catering
to high technology quality conscious alloy steel segment, the unit has a
reputation of being a dependable source of supply of special and alloy
steel to Indian/International standards.

(SHARE OF EACH BUSINESS IN GROUP TURNOVER)

 History and culture of Knitting yarn :

One of the earliest known examples of knitting was finally decorated

cotton socks found in Egypt in the end of the first knitting trade guild was
started in Paris in 1527. With the invention of the knitting machine,
however, knitting “by hand” became a useful but non-essential craft.
Similar to quilting, spinning, and needlepoint, knitting became a social
activity.

Hand knitting has gone into and out of fashion many times in the last
two centuries, and at the turn of the 21st century it is enjoying a revival.
According to the industry group Craft Yarn council of America, the
number of woman knitters in the United States age 25-35 increased 150%
in the two years between 2002 & 2004. While some may say knitting has
never really gone away, this latest reincarnation is less about the make do
ad mend of the 1940”s and 1950”s and more about making a statement
about individually as well as developing an innate sense of community.
Additionally, many contemporary knitters have an interest in about their
knitting, patterns, and techniques.

There are now numerous groups that are not only growing
individually, but also forming international communities. Communities
also exist alone, with blogs being very popular, alongside online group
and social networking through mediums such as Yahoo! Group, where
people can share tips and techniques, run competitors, and share their
pattern. More people are finding knitting a recreation ad enjoying the
hobby with their family. Knitting parties also are becoming popular in
small and large communities around the U.S. and Canada.

Knitting:

Knitting is a craft by which thread or yarn may be turned into cloth.

Similar to crochet, knitting consists of loops called stitches pulled
through each other. Knitting differs from crochet in that multiple stitches
are’ Active’, or in use, at he same time, and crochet uses a single tool, a
crochet hook, instead of a minimum of two knitting needles. The active
stitches are held on a needle until another loop can be passed through
then with a second needle.

Knitting may be done by hand or may by machine. By hand there are

numerous styles and methods. Some of these produce an entirely different
end-product, some produce very similar results. Flat knitting, which is
done on two straight needles, produces a length of cloth, while circular
knitting, which is done on circular or double- pointed needles, produces a
seamless tube.

Different yarns and knitting needles may be used to achieve different end
products, by giving the final piece different colours, texture, weight, or
integrity.

TYPES OF KNITTING

♣ Weft knitting
♣ Flat knitting
♣ Circular knitting

Weft kitting: A weft kitting fabric consists of horizontal, parallel courses

of yarn and requires only a single yarn. Weft kitting may be doe by
machine or hand. Knitting machines use a different mechanical system to
produce results nearly identical to those produced by hand-knitting.

Flat knitting: Flat knitting, on the other hand. Is used, in its most basic
form, to make flat, rectangular pieces of cloth. It is done with two straight
knitting needles and is worked in rows, horizontal lines of stitches. Flat
knitting is usually used to knit flat pieces like scarves, blankets. And the
backs and fronts of sweaters.

Circular knitting: Circular knitting (also celled “knitting in the round”)

is a form of knitting that creates a seamless tube. Knitting is worked in
rounds ( the equivalent of rows in flat kitting) in a spiral. Circular knitting
was done using a set of four or five double-pointed knitting needles.
Later, circular needles were invented. A circular needle resembles two
short knitting needles connected by a cable between them.

Properties of kitted fabrics:

The topology of a knitted fabric is relatively complex. Unlike woven
fabrics, where strands usually run straight horizontally and vertically,
yarn that has been knitted follows a loopy path along its row, as with the
red strand in the diagram at left, in which the loops of one row have all
been pulled through the loops of the row below it.

Because there is no single straight line of yarn anywhere I the pattern, a

knitted piece can stretch in all directions. This elasticity is unavailable
from woven fabrics, which only stretch along the bias. Many modern
stretchy garments, even as they rely on the elastic synthetic materials for
some stretch, also achieve at least some of their stretch through knitted
patterns.

Stockinette Stitch

Reserve Stockinette Stitch

The basic knitted fabric has a definite “ right side” ad “ wrong side”. On
the right side, the visible portion of the loops are the verticals connecting
two rows, arranged in a grid of V shapes. On the wrong side, the ends of
the loops are visible, both the tops and bottom, creating a much more
bumpy texture sometimes called Reserve Stockinet. Because the yarn
holding rows together is all on the front, and the yarn holding side-by-
side stitches together is all on the back, stockinette fabric has a strong
tendency to curl toward the front on the top ad bottom, and toward the
back on the left and right side.

Stitches can be worked from either side, and various patterns are created
by mixing regular knit stitches with the “ wrong side” stitches, known as
purl stitches, either in columns (ribbing), rows ( garter, welting), or more
complex patterns. Each such fabric has different properties; a garter stitch
has more vertical stretch, while ribbing stretches much more horizontally.
Because of their front-back symmetry, these two fabrics have little curl,
making them popular as edging, even when their stretch properties are
not desired.

Different combinations of knit and purl stitches, along with more

advanced techniques, generate fabrics of considerably variable
consistency, form gauzy to very dense, from highly stretchy to relatively
stiff, from flat to tighly curled, and so on.

Process:

A piece of knitting begins with the process of casting on ( also known

as” biding on”), which involves the initial creation of the stitches on the
needle. Different methods of casting on are used for different effects; one
may be stretchy enough foe lace, while another provides a decorative
edging- Provision/ cast-ones are used when the knitting will continue in
both directions from the cast-on. There are various method employed to
“cast-on,” such as the “ thumb method” ( also known as “slingshot” or
“log-tail” cast-ons), where the stitches are created by a series of loops that
will, when knitted, give a very loose edge ideal for
“picking up stitches” ad knitting a border; the “double needle method”
( also known as “ knit-on” or “cable cast-on”),whereby each loop placed
on the needle is the “ knitted-on,” which produces a firmer edge idealon
its own as a border, and many more. The number of active stitches
remains the same as when cast on unless stitches are added ( an increase)
or removed ( a decrease).

Most western-style knitters follow either the English style ( in which the
yarn is held in the right hand) or the continental style ( in which the yarn
is held in the left hand). A third but less common method, called
combination knitting, may also be used.

Once the kitted piece is finished, the remaining live stitches are “cast
off.” Casting ( or “binding”) off loops the stitches across each other so
they can be removed from the needle without unravelling the items.
Although the machines are different from casting o, there is a similar
variety of methods.

In knitting certain articles of clothing, especially larger ones like

sweaters, the final knitted garment will be made of several knitted pieces,
with individual sections of the garment knit separately and then sewn
together. Seamless kitting, where a whole garment is knit as a single
piece, is also possible. Elizabeth Zimmermann is probably the best-
known proponent of seamless or circular kitting techniques. Smaller
items, such as socks and hats, are usually knit in oe piece o double-
pointed needles or circular needles

KNITTING MATERIALS

Yarn:

A selection of yarn for knitting

Yarn for hand-knitting is usually sold as balls or skeins

(hanks),although it may also be wound on spools or cones. Skeins and
balls are generally sold with a yarn-band, a label that describes the yarn’s
weight, length, dye lot,fiber content ,washing instructions, suggested
needle size, likely gauge,etc. It is common practice to save the yarn band
for future reference, especially if additional skeins must be purchased.
Knitters generally ensure that the yarn for a project comes from a single
dye lot. The dye lot specifies a group of skeins that were dyed together
and thus have precisely the same colour; skeins from different dye-lots,
even if very similar in colour, are usually slightly different and may
produce a visible stripe when knitted together. If a knitter buys
insufficient yarn of a single dye lot to complete a project, additional
skeins of the same dye lot can sometimes be obtained from other yarn
stores or online.

The thickness of the yarn is a significant factor in determining the gauge,

i.e, how many stitches and rows are required to cover a given area for a
given stitch pattern. Thicker yarns generally require thicker needles,
whereas thinner yarns may be knit with thick or thin needles. Hence,
thicker yarns generally require fewer stitches, and therefore less time to
knit up a given garment. Patterns and motifs are coarser with thicker
yarns; thicker yarns produce bold visual effects, whereas thinner yarns
are best for refined patterns. Yarns are grouped by thickness into six
categories: superfine, fine, light, medium, bulky and super bulky;
quantitatively, thickness is measured by the number of wraps per
inch(WPI). The related weight per unit length is usually measured in tex
or dernier.

Before knitting, the knitter will typically transform a hank into a ball
where the yarn emerges from the center of the ball ; this making the
knitting easier by preventing the yarn from becoming easily tangled. This
transformation may be done by hand, or with a device known as a ball
winder. When knitting, some knitters enclose their balls in jars to keep
them clean and untangled with other yarn passes through a small hole in
the jar-lid.

Knitting Tools:
Knitting needles

Bamboo knitting needles

The process of knitting has three basic tasks. The active

(unsecured) stitches must be held so they don’t drop. These stitches must
be released after they are secured; and new bights of yarn must be passed
through the fabric, usually through active stitches, thus securing them. In
very simple cases, knitting ca be done without tools, using only the
fingers to do these tasks; however, knitting is usually carried out using
tools such as knitting needles, knitting machines or rigid frames.
Depending o their size and shape, the rigid frames are called knitting
boards, knitting rings (also called knitting looms) or kitting spools (also
known as knitting knobblies, knitting fancies, or corkers).Other tools are
used to prepare yarn for knitting, to measure and design knitted garments,
or to make knitting easier or more comfortable.

There are three basic types of knitting needles (also called “knitting
pins”). The first and most common type consists of two slender, strength
sticks tapered to point at one end, and with a knob at the other end to
prevent stitches from slipping off. Such needles are usually 10-16 inches
long but, due to the compressibility of knitted fabrics, may be used to knit
pieces significantly wider. The most important property of needles is their
diameter, which rages from below 2mm to 25mm (roughly 1 inch). The
diameter affects the size of stitches, which affects the gauge of the
knitting and the elasticity of the fabric. Thus, a simple way to change
gauge is to use different needles, which is the basis of uneven knitting.
Although knitting needle diameter is often measured in millimetres, there
are several different size systems, particularly those specific to the United
States, United Kingdom ad Japan; a conversion table is given at knitting
needle. Such knitting needles may be made out of any materials, but the
most common materials are metals, wood, bamboo are less prone to
dropping stitches. The knitting of new stitches occurs only at the tapered
ends, and needles with lighted tips have been sold to allow to knit in the
dark.

The second type of knitting needles are straight, double- pointed knitting
needles ( also called “dpns”). Doubles-pointed needles are tapered at both
ends, which allows them to be knit from either end. Dpns are typically
used for circular kitting. Especially smaller tube-shaped pieces such as
sleeves, collars, and socks; usually one needle while the others hold at
active stitches. Dpns are somewhat shorter (typically 7 inches) and are
usually sold in sets of four or five.

Cable needles are a special case of dpns, although the usually are not
straight. But dimpled in the middle. Cable needles are typically very short
( a few inches), ad are used to hold stitches temporarily while others are
being knitted. Cable patterns are made by permuting the order of stitches;
although one or two stitches may be held by had or knit out of order,
cables of three or more generally require a cable needle.

The Third needle type consists of circular needles, which are log. Flexible
double-pointed needles. The two tapered ends (typically 5 inches long)
are rigid and straight, allowing for easy knitting; however, the two ends
are connected by a flexible strand (usually nylon) that allows the two
ends to be brought together. Circular needles are typically 24-60 inches
long, and are usually used singly or in pairs; again, the width of the
knitted piece may be significantly longer than the length of the circular
needle. Special kits are available that allow circular needles of various
length and diameters to be made as needed ; rigid ends of various
diameters may be screwed into strands of various length. The ability to
work from either end of one needle is convenient in several types of
knitting, such as slip-stitch versions of double knitting. Circular needles
may be used for flat or circular knitting.
Ancillary tools:
Various tools have been developed to make hand knitting easier. Tools
for measuring needle diameter and yarn properties have been discussed
above, as well as the yarn swift, ball winder and “yarntainers”. Crochet
hooks and a darning needle are often useful in binding off or in joining
two knitted pieces edge-to-edge. The darning needle is used in duplicate
stitch ( also known as Swiss darning), while the crochet hook is also
essential for repairing dropped stitches ad some specialty stitches such as
tufting. Other tools are used to prepare specific ornaments include the
pompom tree for making pompoms conveniently. For large or complex
patterns, it is sometimes difficult to keep track of which stitch should be
knit in an particular way; therefore, several tools have been developed to
identify the number of a row or stitch, including circular stitch markers,
hanging markers, extra yarn and counters. A second potential difficulty is
that the knitted piece will side off the tapered end of the needles when
unattended; “ point protectors” that cap the tapered ends prevent this.
Another problem is that too much knitting may lead to hand and wrist
troubles; for this, special stress-relieving gloves are available. Finally,
there are sundry bags and containers for holding knitting, yarn and
needles.

Hand Knitting Yarn (H.K.Y.) is one of the major and most profitable
products of Vardhman Group.

Hand knitting yarn is further divided into two types:

♣ Plain yarn
♣ Fancy yarn

Fancy hand knitting yarn is also called feather yarn.

Major types of Fancy Hand knitting Yarn ( H.K.Y.) in Vardhman are:

♣ Feather glow
♣ Feather shine
♣ Fun feather
♣ Luster
♣ Dazzle feather
♣ Sonata feather
♣ Sargam
♣ Crazy
♣ Wonder fur
♣ Sensation
♣ Lavish feather ball
♣ Snow flake
♣ Exotica
♣ Royal feather
♣ Smart feather
♣ Rainbow feather
♣ Fashion feather
♣ Smart feather

Packaging forms in case of Hand Knitting Yarn

Hand knitting yarn is packed into three forms:

♣ Hanks
♣ Balls
♣ Lachchi

HANKS:
It is the most basic loose form of yarn which is supplied in bundles of
3kgs each. The retailers sell it as customer requirement.

HANKS PRODUCTS

♣ Millennium
♣ Melody Fine
♣ 3/16 Diamond
♣ Shine Star
♣ 4/16 Deluxe ♣
Melody
♣ 4/16 Brilon
♣ Jasmine
♣ Mehak ♣ Fiesta
♣ Rabbit excel ♣ Crystal
♣ Indica ♣ Dazzle Feather
♣ Khushboo ♣ Brycral
♣ Shin star ♣ Madonna/Madonna Slim
♣Snowflake
♣ Butterfly
♣ Royal feather ♣ Exotica
♣ Feather shine ♣ Rainbow feather
♣ Unique ♣ Britney
♣ Rubel NEW PRODUCT
♣ Sargam ♣Cherry
♣ Ultma ♣ Elegant
♣ Ginni ♣ Fortune
♣Wonder fur ♣ Double Knit
♣ Crystal ♣ Metallica
♣ Fashion feather ♣ Crazy
♣ Brilon ♣ Dew Drops
♣ Sensation

BALLS: Convenient form which is available in various shapes of 25gms

ad 50gms. It comes in two types of packing i.e. in box and in jar.
Ball PKG.
Alpine Plus Box
Baby Smart Jar
Baby Soft Jar
Blossom Box
Caliber Plus Box
Little Angle Jar
Lamb Hair Box
Glamorous Box
Cozy Care Box
Christina Prem. Box
Charlie Box
Fairy Angle Box
Passion Box
Feather Fresh Box
X-Press Box
Smart Feather Box
Soft N Smart Box
NEW PRODUCTS
Snowflakes Box
Salsa Box
Polka Box
Pearl Jar
LACHCHI: It is sorted in 200gms polypack of yarn, which has a
branded level.It is projected as economic packing because the price of
these packing is lower than ball packing due to lesser usage of packing
material.
 LACHHI PKG.
Eliza 20 Packets

Micro Shine 20 Packets

Pretty Baby 20 Packets

Prim Rose 20 Packets

Twinkle 10 Packets

Major causes of appraisal of the product:

♣ Looks of the product
♣ Feel of the product
♣ Brand name
♣ Perceive value
♣ Reliability of the product

Major selling products of various companies:

Vardhman Oswal Malwa Local companies

Rabbit excel Venus Juhi Supreme
Feather glow Marina M. Glow DCL
Brilon Rainbow Brilon Langowalia
Millenium Majeet M.Millennium Dhown woolens mela
Soft n smart Eros Rose petal
Little angel Babylon Young spirit
Globalization
Vardhman ventured in to the global market in 1986 with
an export value of one core to reach an outstanding
440crores(92 million Dollars) in 2002.
Little wonder then, that Vardhman, today, exports 40%
of its yarn production to more than 25 countries and has a
strong presence in markets like the EEC, USA, Canada,
China, Japan, Korea, Mexico, Brazil and Mauritius, Middle
East. Vardhman has a share of more than 6% in total Yarn
exports from India.
Its trusted, tested and reliable workforce, coupled with
the latest technology, quality consciousness, customer
oriented services and strong logistics has given Vardhman
an edge over its competitors and in the world’s most
quality conscious and price sensitive markets. Thereby
making Vardhman a truly international organisation in
terms of sourcing from and catering to the world .
 NEED OF THE STUDY

This study focuses on the Promotion mix strategy

(advertising, sales promotion, events & public relation) of
Vardhman hand knitting yarn and the brand image.
Modern marketing calls for more than developing a good
product , pricing it attractively & making it accesible to
target customers. The study is based on how Vardhman
communicate with present & potential stake holders and
with general public.
 OBJECTIVES

 To study about the Promotion mix strategy of

Vardhman hand knitting yarn.

 To know about how it has been successful in using

marketing communication tools integratedly.

 To gain knowledge about how it has emerged as a

strong brand in hand knitting yarn market.

 To examine what are the key factors, which has helped

to sustain growth & be the market leader.
 METHODOLOGY

Research Methodology is a way to systematically solve the research

problem. The Research Methodology includes the various methods and
techniques for conducting a research. “Marketing Research” is the
systematic design, collection analysis and reporting of data and finding
relevant solution to a specific marketing situation or problem. “D.
Slazenger and M. manipulation of things, concept or symbols for the
purpose of generalizing to extend, correct or verify knowledge, weather
that knowledge aid n construction of theory and practice of an art.
Research is thus an original contribution to the existing stock of
knowledge making for its advancement. The purpose of research is to
discover the answers to the question through the application of scientific
procedures.

Defining the Research Problem and Objectives: It is said,” A problem

well defined is half solved” The first step in research methodology is to
define the problem and deciding the research objective. The objective of
the study is to know the market position of Vardhman group in Ludhiana
against its competitors.

Research Design: Research Design is a blueprint or framework for

conducting the marketing research project. It specifies the details of the
procedures necessary for obtaining the information needed to structure
and solve marketing research problem. The research design used in the
study is descriptive and comparative research.

Descriptive Research: It is that type of research which can explain what

had happened and what are happenings, but we cannot change the
variables.

Sampling Design: Sampling can be defined as the section of some part

of an aggregate or totality on the basis of which judgement or an
inference about aggregate or totality is made. The steps involved in
sampling design are as follows.
Universe: Universe refers to the total of the units in field of inquiry. The
study is restricted to Ludhiana city only.

Sampling unit: Sampling frame is the representation of the elements of

the target population. Sampling unit of the study are dealers of hand
knitting.

Sampling Size: Sampling size is the total no. of units which we covered
in our study. The sample size is 20.

Sampling Technique: Sampling Technique used in the study is Non-

Probabilistic convenient sampling.

Convenient Sampling: It is that type of sampling where the researcher

selects the sampling according to his or her convenience.

Data collection and Analysis: Data can be collected in two ways

Primary Data: primary data are those, which are collected a fresh and
for the first time, and thus happen to be original in character. It is the
backbone of any study.

Secondary Data: Secondary data are those which have already been
collected by someone else and which have already been passed through
the statistical process. In this case one is not confronted with the
problems that are usually associated with the collection of original data.
Secondary data either be published data or unpublished data.

Source of Data: Source of the research is both primary and secondary

data. Primary data is obtained from respondents with the help of widely
used and well-known method of survey, through a well-structured
questionnaire. And the secondary data is collected from the internet,
magazines, journals, and news papers.

Research instrument: Research instrument is that with the help of which

we collect the data from respondents. he questionnaire of the research
consists of open ended, close ended and ranking questions.

Tools of Analysis: We have used pie charts, graph and percentage to

analyse the collected data.
 LIMITATIONS

♣ The time period assigned for the training that is six weeks is too short conduct
the research thoroughly.

♣ As research is limited to Ludhiana city only there are not enough

dealers for the collection of data.

♣ Due to time and resource constraints the survey was conducted within
Punjab therefore such study might not present a true picture of
respondent’s perception towards brand image of Vardhman HKY.

♣ We were not able to survey some of the agents as our training was
conducted in the peak season of HKY sale.
.
♣ It was really difficult to conduct market surveys due to the cold
weather and foggy conditions.

♣ Language was also a barrier upto some extent as Punjabi is a regional

language here and we were not so very familiar with it.

♣ Visiting go down on a daily basis to check the stock was a barrier upto
some extent due to the peak season of sale.
CHAPTER – II
 THEORETICAL FRAMEWORK

A successful product or service means nothing unless the benefit of such

a service can be communicated clearly to the target market. An
organizations promotional strategy can consist of:

Advertising: Is any non-personal paid form of communication using any

form of mass media.

Public relations: Involves developing positive relationships with the

organization media public. The art of good public relations is not only to
obtain favorable publicity within the media, but it is also involves being
able to handle successfully negative attention.

Sales promotion: Commonly used to obtain an increase in sales short

term. Could involve using money off coupons or special offers.

Communication Model - AIDA

AIDA is a communication model, which can be used by firms to aid them

in selling their product or services. AIDA is an Acronym for Attention, Interest,
Desire, Action.. When a product is launched the first goal is to grab attention.
Think, how can an organization use it skills to do this? Use well-known
personalities to sell products? Once you grab attention how can you hold
Interest, through promoting features, clearly stating the benefit the product
has to offer? The third stage is desire, how can you make the product
desirable to the consumer? By demonstrating it? The final stage is the
purchase action, if the company has been successful with its strategy then
the target customer should purchase the product.

Promotion through the Product life cycle- At this stage with increased
competition the organization take persuasive tactics to encourage the
consumers to purchase their product over their rivals. Any differential
advantage will be clearly communicated to the target audience to inform of
their benefit over their competitors.

Product lifecycle. -

As products move through the four stages of the product lifecycle different
promotional strategies should be employed at these stages to ensure the
healthy success and life of the product .
Stages and promotion strategies employed.
Introduction
When a product is new the organizations objective will be to inform the target
audience of its entry. Television, radio, magazine, coupons etc may be used
to push the product through the introduction stage of the lifecycle. Push and
Pull Strategies will be used at this crucial stage.
Growth
As the product becomes accepted by the target market the organization at
this stage of the lifecycle the organization works on the strategy of further
increasing brand awareness to encourage loyalty.
Maturity
A slow down in sales growth because the product has achieved acceptance
by most potential buyers. Profit stabilize or decrease of increased competition.
Decline
As the product reaches the decline stage the organization will use the strategy
of reminding people of the product to slow the inevitable.

When it comes to any business there are thousands of ways to promote it.
The best thing to keep in mind, however, is your target demographic and
investment requirements. Are you trying to interest kids in your product? Do
you want to cater to the 40-50 year old crowd who visit retail stores? Much of
your promotion will be based on who exactly you are selling. We want to help
you find the best promotion strategies for your business.

Promotion decisions are related to selling to and communicating with the

consumers you are targeting. You must be very cost-efficient when making
these decisions because they can be huge in proportion to the actual price of
your product. You must know what each customer will cost you and decide
from there how many customers you can take on at a single time without
losing your shirt.
These promotion strategies will include advertising, different forms of media,
public relations and more.
The best promotion will include both long-term and short-term strategies for
attracting the customers you want while making the most available profit. This
will include the typical marketing system of the 4 P's. These are Promotion,
Product, Price, and Placement - especially in retail stores.

The Marketing Communications

(Promotion) Mix

Every marketing plan is executed by using the tactical elements of the

Marketing Communications, or Promotions Mix.

The elements of the marketing

communications mix

The Marketing
Communications Mix is the
specific mix of advertising,
personal selling, sales
promotion, public relations, and
direct marketing a company uses
to pursue its advertising and
marketing objectives.
Definitions:
Advertising - Any paid form of nonpersonal presentation and
promotion of ideas, goods, or services by an identified sponsor.
Personal selling - Personal presentation by the firm’s sales force for
the purpose of making sales and building customer relationships.
Sales promotion - Short-term incentives to encourage the purchase or
sale of a product or service.
Public relations - Building good relationships with the company’s
various publics by obtaining favorable publicity, building up a good
"corporate image", and handling or heading off unfavorable rumors,
stories, and events.
Direct marketing - Direct communications with carefully targeted
individual consumers to obtain an immediate response and cultivate
lasting customer relationships.

Setting the Promotion Mix

When deciding how to properly utilize the marketing communications

mix to meet your marketing objectives, it is important to consider the
relative strengths and weaknesses of each component of the mix. Further,
you must always define your total budget first (generally defined in the
Marketing and/or Business Plan) and then decide upon the best way to
leverage the different elements of the mix to maximize the return on your
investment. You will balance the various parts of the mix to not only
create an integrated approach to your marketing communications but you
must also devote enough resources for each component to be successful.
Here are some things to keep in mind:
Advertising - Reaches large, geographically dispersed audiences, often
with high frequency; Low cost per exposure, though overall costs are
high; Consumers perceive advertised goods as more legitimate;
Dramatizes company/brand; Builds brand image; may stimulate short-
term sales; Impersonal, one-way communication; Expensive
Sales promotion - May be targeted at the trade or ultimate consumer;
Makes use of a variety of formats: premiums, coupons, contests, etc.;
Attracts attention, offers strong purchase incentives, dramatizes offers,
boosts sagging sales; Stimulates quick response; Short-lived; Not
effective at building long-term brand preferences
Public relation - Highly credible; Very believable; Many forms: news
stories, news features, events and sponsorships, etc.; Reaches many
prospects missed via other forms of promotion; Dramatizes company or
product; Often the most under used element in the promotional mix;
Relatively inexpensive (certainly not 'free' as many people think--there
are costs involved)

When deciding upon your unique marketing communications mix, you

should also consider the Product Life Cycle. Here are some general
guideline as to how and when to emphasize different parts of the mix
according to the stages of a typical product life cycle:
 PROMOTION MIX IN

VARDHMAN
Modern marketing calls for more than developing a good product
pricing it attractively & making it accessible to target customers.
Companies must also communicate with present & potential stake holders
& with the general public.

Marketing communications are the means by which firms attempt to

inform, persuade and remind consumers – directly or indirectly- about the
products and brands that they sell. In a sense marketing communications
represent the ‘voice’ of the brand and are a means by which it can
establish a dialogue and build a relationship with consumers. In
vardhman the promotion mix perform several functions for consumers. It
has implemented micro-model of communication process to draw
consumer response.

Vardhman is a strong brand in hand knitting yarn market which has

large market share in organized hand knitting yarn market. Its brand
image communicates to its customer that it delivers the quality.

All these are a outcome of combine and effective use of promotional

tools. It is using Advertisement, sales promotion, Events, Public relation
to get favorable customer response. Each of these promotional tools have
their own significance to create stronger consumer response in a way
which can open up a path to success.

ADVERTISEMENT

The current ad campaign of Vardhman is a kind of informative ad. It

has endorsed soap-opera artist Shweta Tiwari as its brand ambassador.
The opening of ad shows a family and the brand ambassador Shweta
Tiwari plays the role of a housewife and make the audience aware of to
see the the tag of Vardhman while purchasing hand knitting yarn.

In one hand mostly housewives are engaged in the knitting of sweaters

and other winter garments for there family members. This ad campaign
aims towards housewives as its target audience. On the other hand
 housewives watch TV serials as their
favorite pastime. Shweta Tiwari being a
actor can influence the target customers.
So the ad campaign is carried out by her.
Though Vardhman is a established brand
in hand knitting yarn market, it is using
campaigns to reinforce the brand equity.
The popular slogans of vardhman are
 Sachha pyar Vardhman
 Jo bune pyar se wo chune dimag
se.

SALES PROMOTION

Vardhman offers a variety of incentives through its sales promotion

schemes. It spend huge amount in sales contests, lotteries , specialty
advertising, discounted sales etc. The sale promotion of Vardhman are
done through schemes. Each year schemes keep changing.

Currently Vardhman is endorsed one sales contest named ‘Laksya mein

hai jeet’ & one lottery scheme ‘Kiska sitara chamkega’.

LAKSHYA MEIN HAI JEET – In this sales contest scheme targets are
given to whole sellers. On achievement of the sale target prizes are
distributed by the company.

KISKA SITARA CHAMKEGA – In this lottery scheme only dealers

take part.
They are instructed to tear the leaf from the bundle card on which ‘Kisaka
sitara chamkega’ is written and return it to the company along with their
stamp & mobile no. on it. The name of the winner is declared every
month15th & 30th .

Vardhman also provide sales promotion materials to its dealers.

Promotion material carry certain prices -:
Booklets – 7/- Rs
Knitting bag – 1/- Rs
Shopping bag – 5/- & 6/- Rs
H.M bag – 2/- Rs
Premium bag – 6/- Rs
Laminated posters – free
Posters – free
Calendars – free

EVENTS

Vardhman sponsor for two events ‘Aao bune’ & ‘Aawa’.

Aao bune - It is a school level knitting competition between class 6th to

12th. This event is organized by Zoom India. The objective is to create
knitters for the next generation. Trophies, certificates, banners,
momentos, booklets, posters are provided by the company. ‘Aao bune’ is
conducted once in a year. This event facilitate and encourage good
knitters through prizes. In the competition 80gms of ball(each 40gms) &
two knitting needle are provided to the participants. Different colours like
yellow, blue, red, orange, sea green, cream, black etc are used.

AAWA – ‘Aawa’ is another event sponsored by Vardhman to strengthen

its brand image. This event is organized by Hemkunt(Ludhiana). This
even is also a knitting competition among military wives. Vardhamn aims
at creating professional knitters and make military housewives self-
dependent. These two events really work wonder for Vardhman in
generating goodwill & building a strong brand ever.
PUBLIC RELATION

To cement the relation among public the company has taken long-term
measure which has resulted in building a strong brand like Vardhman. It
is publishing a quarterly magazine “We” which carry the ethical values of
the company. This magazine is full of good articles & tips for better life.
From the years of its establishment till today it has been able to design a
path for itself to journey long distance carrying goodwill for years. It has
also a college named Arvind college of commerce & management. Te
name that depicts quality is not just a single day work. The employees of
Vardhman are also responsible for making it reach to a respectable
position. Their contribution is also remarkable. All these communication
tools designed by the experts has paid a huge return on investments.
Certainly the marketing communication strategy used altogether
benefited for Vardhman in various aspects.
CHAPTER – III
DATA ANALYSIS AND
INTERPRETATION
Results :
1) Showing the companies from where the dealers purchase their H.K.Y.

Companies Responses Percentage %

Vardhman 14 70
Oswal 3 15
Malwa 2 10
Other 1 5
Total 20 100

Interpretation: The above table shows that 70% of the dealers procure
their H.K.Y from Vardhman, About 15% procure it Oswal & Other 10%
Procure it from Malwa & local market it constitutes nearly 5%.
2) Showing the experience of the dealers in the H.K.Y. business

Years No. of respondents Percentage %

0-2 Years 0 0
2-4 Years 0 0
4-6 years 0 0
More than 6 20 100
Total 20 100

Interpretation: the above table shows that about 100% of the dealers are
selling the H.K.Y. for more than six years.
3) Showing the ranking of the various factors which the dealers consider while
procuring the H.K.Y. from the manufacturers

Factors Rank Mean score

Brand 3 114
Quality 1 150
Price 2 146
Shade card 4 84
Services 5 72
Interpretation: From the above table we can conclude that dealers
consider quality as the most important factor while procuring the H.K.Y.
The second most important factor is price followed by brand, shade range
& then services.

4) Showing the reach of audience through advertisement .

Response NO.of respondents Percentage %

Yes 14 70
No 6 30
Total 20 100

Interpretation: The above table shows that 70% of the respondents have
seen the ads of Vardhman in TV, while 30% of the respondents are not
aware of advertisements.
5) Showing the quantity sale per year of H.K.Y .

Sales per year in kg No. of respondents Percentage

500 1 5
500-1500 0 0
1500-2500 0 0
2500-3500 0 0
>5000 19 95
Total 20 100

Interpretation: The above table shows that 95% of the dealers are sells
per year more than 5000kg.
6) Showing type of colors selling most in H.K.Y.

Type of color NO.of respondents Percentage %

Single color 19 95
Multi color 1 5
Total 20 100

Interpretation: The above table shows that 95% of the dealers are
selling single colour.
7) Showing the products of H.K.Y. sold maximum.

Product NO.of respondents Percentage %

Hanks 15 75
Balls 3 15
Lachhi 2 10
Total 20 100

Interpretation: From the above table shows that Hanks is the largest
selling product of Vardhman which is 75% & ball and lachhi 15% & 10%
respectively.
8) Showing the responses about readymade sweater affecting sale of
hand knitting sweater.
Responses Respondent Percentage %
Yes 6 30
No 14 70
Total 20 100

Interpretation: 70% of the respondents are of the opinion that

readymade sweaters does not affect the sale of hand knitting sweater &
30% of them believe readymade sweater affect the sale of hand knitting
sweater.
9) Showing the ranking of the major manufactures of H.K.Y. on
certain parameters.
Companies Price Quality Variety
Ranks
Malwa 1 3 3
Oswal 2 2 2
Vardhman 3 1 1

Interpretation: The above table shows that the H.K.Y. of Vardhman is

the most expensive but is of best quality. Oswal H.K.Y.stands at the
second place in terms of quality followed by Malwa.
10) Respondents believe “Aao buney can create knitters for future.
Responses Respondents Percentage %
Yes 16 80
No 4 20
Total 20 100

Interpretation: 80% of the respondents are of the opinion that Aao

buney can create knitters for future & rest 20% are of opinion that it does
not have effects.
11) Showing the various steps, which the companies should take to
boost the sales of H.K.Y.

Steps Responses Percentage %

Increase variety 4 10
Reduce price 4 30
Discount 1 5
Encourage advertising 9 55
Total 20 100

Interpretation: From the above table we can conclude that about 55% of
respondents are of the opinion that encouraging advertising can boost the
sale and 30% spoke that reducing price can boost sale and 10% told
increase can help in boosting the sale, 5% said discounts can help it out.
12) Showing the most preferred brand of hand knitting yarn.
Brand Responses Percentage %
Malwa 1 5
Vardhman 15 75
Oswal 4 20
Total 20 100

Interpretation: It has been shows that 75% of the dealers are saying that
Vardhman is the most preferred brand followed by oswal and malwa.
13) Showing the sales promotion schemes influencing the sales of
company-:

Scheme influencing the Responses Percentage %

sales of the company
Yes 14 70
No 6 30
Total 20 100

Interpretation: It has been shown in the table that 70% of dealers are of
the opinion that various schemes offered by the companies will help in
increasing the sales of the company.
CHAPTER – IV
 FINDINGS

Finding of the study:

♣ Most of the dealers procure their Hand knitting Yarn from Vardhman.

♣ Nearly all the dealers of hand knitting yarn are in this business for more
than six years.

♣ Plain hand knitting yarn is sold more than Fancy yarn.

♣ Quantity of sale per year of hand knitting yarn of each dealer is more
than 5000kg.

♣ Single colour is in trend than multi colour.

♣ Hanks is the largest selling product and Balls and Lachhi come
respectively.

♣ Most important aspect for the appraisal of the product is quality.

♣ Advertisement is the major source for boosting the sales.

♣ Various schemes offered by the companies like ‘ kiska sitara

chamkega’, ‘lakshya mein hai jeet’ , quantity discounts, cash discounts
also boost the sales of the company.

♣ The most preferred brand of dealers of hand knitting yarn is Vardhman.

♣The staff of Vardhman Spinning & General Mills was extremely

cooperative. Each & every member provided us guidance wherever
needed.

♣ We found that no customer had any complaints regarding the staff &
quality of vardhman.
 SUGGESTIONS

• Company should open up its own factory outlets in different

regions. Company should use trade promotion tools like price-off, free
goods etc. Company should enter into readymade sweaters to meet the
customer preference.It should create a niche market for hand knitted
sweaters & the designs should match the lifestyle of customer.

• As the hand knitting yarn trend is declining due to modernization

therefore it should be introduced as a subject in the schools.
Advertisement is encouraged so that people get aware about the
various benefits of hand knitting yarn.
• Schemes should be periodically introduced to increase the sales
like ‘Aao Buney’ contest of Vardhman. Advertisements are made to
avoid the duplicacy of the products by introducing hologram so that
customers are aware of the product.Vardhman should pay due
considerations to individual needs of their dealers . Vardhman should
be in a position to meet up the requirements of their dealers on time in
terms of shade range availability.
• Vardhman should pay attention towards advertisements.
• Vardhman should find out reasons for decrease in sales of their
parties. Hand-knitting should be taken as a separate business.
Important is that it can create employment and provide job
opportunities to women. Not only women , men can also be trained.
Wages & pays should be given to hand knitters who knit on order for
their business . But before starting it as a business proper promotional
activities should be conducted. It can be a milestone in such
businesses. Company should increase its production units as demand
of hand-knitting yarn is more and supply is less.
• Price of company booklets should be reduced so that it can be
affordable for all customers. Catalogues, brochures, booklets
consisting different designs should be made widely available in the
market in the various stores where young generation visit, so that it
can attract their attention.
 CONCLUSION
• Most of the dealers deal in HKY and general store materials.
• Majority of Vardhman dealers are into retail business.
• Majority of respondents considers Vardhman as their most preferable
brand.
• Majority of dealers are having an opinion that Hanks category of HKY
of Vardhman and its competitors generates maximum sales.
• Almost every customer of HKY asks for Vardhman other than any
brand.
• Quality is the main reason for customer demanding for Vardhman
products.
• Majority of dealers deals on cash basis with Vardhman.
• Transparent packaging will help in making product more attractive.
• Majority of parties are having a good dealing with Vardhman in terms of
payment clearance.
• Promotional activities like Kiska sitara chamkega and Lakshya mein hai
jeet motivates the dealers and the wholesellers to sell more as they get
many attractive gifts on achieving their sales target.
 Bibliography

 www.vardhman.com

 www.google.com

 www.indiantextile.com

 Marketing Management (Philip Kotler)

 QUESTIONNAIRE

1. From whom do you purchase Hand knitting yarn?

a. Vardhman
b. Oswal
c. Malwa
d. Others

2. How much experience do you have?

a. 0-2yrs
b. 2-4yrs
c. 4-6yrs
d. more than 6yrs

3. Which factor you consider while purchasing hand knitting yarn

from manufacturer?
a. brand
b. quality
c. price
d. shade cards
e. service

4. Have you seen any ads of Vardhman in TV?

a. Yes
b. No

5. How much quantity you sell per year?

a.500 kg.
b.500-1500 kg.
c.1500-2500 kg.
d.2500-3500 kg.
e.5000 kg.

6.Which type of color is more in demand?

a. Single color
b. Multi colored

7. Which product of HKY are sold large in number –

a. Hanks
b. Balls
c. Lachhi
8. Does readymade sweaters affect the sale offhand knitted sweaters?
a. Yes
b. No

9. Which manufacturer is offering best quality, variety & attractive price

respectively?
a. Malwa
b. Oswal
c. Vardhman

10. Do you believe the event Aao buney can create knitters for future?
a. Yes
b. No

11. What steps should company take to boost the sale of hand knitting
yarn?
a. Increase in variety
b. Reduce price
c. Discounts
d. Encourage advertising

12. Which is the most preferred brand of hand knitting yarn?

a. Malwa
b. Vardhman
c. Oswal

13. Does sales promotion schemes influence the sale of hand knitting
yarn?
a. Yes
b. No