Company History - Niwas Spinning Mills

YEAR EVENTS 1984 - The Company was incorporated on 19th April as a private limited company and was converted into a public limited company on 18th June, 1986. It was promoted by Jaju family of Solapur (Maharashtra). The main object of the Company is manufacturing and processing of all types of yarn both cotton and synthetic, cloth, fabric, textiles, etc. - The Company had set up a modern spinning mill at Solapur in Maharashtra with the latest open-end spinning technology. Commercial production of yarn from cotton waste was started in October 1985. - The Company undertook to expand its yarn manufacturing capacity by adding one clute fed blowroom line, two modern open end spinnign units and two-for-one twisting machine. These spinning units were to be utilised for the manufacture of synthetic yarn of 15 counts, single and double. The installed capacity of this expansion project would be 2,000 kgs of synthetic yarn per day. 1986 - All shares taken up by promoters, directors, etc. 1987 - 9,90,000 No. of equity shares issued at par, out of which 1,20,000 shares received and allotted to promoters, etc. Out of the remaining 8,70,000 shares, the following shares reserved for preferential allotment. - (i) 3,60,000 to NRIs on repatriation basis (only 3,27,200 taken up). - (ii) 49,500 to employees, etc., (none were taken up). - (iii) 17,400 to business associates (only 1,500 taken up). The balance 4,23,100 shares along with the unsubscribed portion of 1,18,200 out of the preferential quota were offered to the public in January (all were taken up). 1988 - The Company undertook a terry towel project. 1989 - The Company offered during July/August 1,00,000-14% secured

redeemable partly convertible debentures of Rs.2.50 each on rights basis to the existing shareholders in the prop. of 10 Debentures: 100 Equity shares (all were taken up). Rs.50 out of each fully paid-up Debenture would be converted into 5 No. of equity shares of Rs.10 each at par on the expiry of 6 months from the date of allotment. per Debenture would be redeemed in 3 equal instalments at the end of 6th, 7th and 8th year from the date of allotment. 1990 - 5,00,000 shares issued at par in part conversion of debentures. 1991 - The Company undertook a project to increase manufacturing capacity by setting up 6 open-end spinning units to manufacture cotton synthetic yarn of higher counts mainly catering to export markets. - The spinning machines were imported from Elitex Czechoslovakia. The cost of the project was being met through issue of convertible debentures aggregating Rs.7.50 crores, non-convertible debentures aggregating Rs.2.75 crores and State subsidy of Rs.0.25 crores. 1992 - The Company offered 12,50,000-14% secured fully convertible debentures of 60 each for cash of which 6,95,833 debentures were offered on rights basis to the existing equity shareholders in the ratio of 4 debentures for every 10 equity shares held. Out of the balance 5,54,167 debentures, 62,500 debentures were offered for public subscription in February. Including the retention of oversubscription, the following debentures were allotted under this issue: - (i) 8,00,203 debentures as rights. - (ii) 40,000 debentures to employees. - (iii) 5,97,292 debentures to the public. - As per the terms of the issue, part-A of Rs.20 of each debenture would be converted into one equity share of Rs.10 each at a premium of Rs.10 per share at the end of 6 months from the date of allotment of debentures while part-B of Rs.40 of each debenture would be converted into two equity shares of Rs.10 each at a premium of Rs.10 per share at the end of 12 months from The non-convertible portion of Rs.200

the date of allotment of debentures. - The Company decided to privately place 2,75,000-14% secured redeemable non-convertible debentures of Rs.10 each with Mutual funds. Canbank Mutual Fund agreed to take up 2,25,000 debentures. These debentures would be redeemed in five equal annual instalments beginning at the end of five year from the date of allotment at a premium of 5% to be paid along with the last instalment. - The Company proposed to issue equity shares/convertible debentures/non-convertible debentures with or with out detachable warrants for a aggregate amount of Rs.120. crores. - 14,37,407 No. of equity shares allotted at a premium of Rs.10 per share on conversion of part A of debentures. 1994 - The Company undertook to set up a spinning unit of spindles with latest technology with a total outlay of Rs.60 crores. - 24,84,814 No. of equity shares allotted on conversion of part B of debentures at a premium of Rs.10 per share. 1995 - During May the company issued through prospectus 72,65,500 zero interest FCDs of Rs.80 each as follows: 18,15,625 debentures on firm allotment to promoters, directors, their friends. The following debentures were issued on preferential allotment basis: - (i) 10,85,000 debentures to fin. Institution; - (ii) 10,85,000 debentures to Mutual Funds; - (iii) 13,02,000 debentures to NRIs/OCBs and - (iv) 10,000 debentures to employees. 19,66,225 debentures were taken up. Of the these only

- Balance 19,64,875 debentures along with unsubscribed portion of 34,80,650 debentures from pref. quota was issued to the public. - Each FCD of Rs. 80 would be converted into two equity shares of Rs.10 each at a premium of Rs.30 per share, six months from the

date of allotment of debentures.

History of Coimbatore Popular Spinning Mills Ltd.

The Comp. was incorporated on 27th September, 1978 as a private limited company. The Comp. commenced its cotton yarn spinning operations with an initial capacity of 2400 spindles in June, 1979. The Comp. has been gradually expanding its capacity through ploughing back its profits & with continuous financial assistance from IDBI and Canara Bank, its previous banker. The Comp. besides expanding its capacity has also been modernising its production & allied facilities so as to continuously produce quality yarn that meets international standards. The Comp. presently has a spindleage of 24108 & also two open ended spinning machines [336 rotorss]. The Comp. became a deemed public limited Comp. on 01.07.1994 pursuant to Section 43A [2s] of Companies Act, 1956. It was converted into a Public Limited Comp. on 31st October 1994.

Company History - Sri Ramakrishna Mills (Coimbatore)

1946 - Sri Ramakrishna Mills (Coimbatore) Ltd was incorporated as public limited company. The company is mainly into the manufacturing of cotton yarn and synthetic staple fibre and promoted by L Nagaswarna, R Doraiswami, D Ranganayakiammal, L Swathy, L Suhasini, Swathy Processors Ltd and Suhasini Spinners Ltd. 1951 - The company started commercial operation at the Ganapathy unit in Tamil Nadu. 1984 - The company started its second unit at Nagari, Andhra Pradesh and third unit at Sathyamangalam, Tamil Nadu. 2005 - Members at the annual general meeting of the company held on 23rd February had authorized the board of the company to sell, lease or dispose the whole, or substantially the whole undertaking of the company, or to restructure the same undertaking by any means. 2007 - Sri. L Damodaraswamy was reappointed as the director of the company. 2008 - Board of directors of the company had allotted 21,35,000 equity shares to the promoters and 10,00,000 equity shares to the Clearwater Capital Partners. - Fedex Securities Ltd had issued Public Announcement to the equity shareholders of Sri Ramakrishna Mills Coimbatore Ltd on behalf of Sri R Doraiswami, Smt D Ranganayaki, Sri D Lakshminarayanaswamy, Smt L Nagaswarna, Smt L Suhasini and Smt L Swathy who are the acquirers.
Source : Dion Global Solutions Limited

To cateIntroduction

To Mahmood Group Of Industries

The Group is in cotton business for the last 50 years. The projects include five Spinning Units, Two Weaving Units, Captive Power Project, Number of cotton Ginning Factories composite with Oil Mills, Leather Tanning Unit, a company for trading operations, Agricultural & Fruit Farms. The total turn over of Mahmood Group is around Rs.4 Billion (US$: 70 Million). Export Sales constitute 3.5 Billion Rupees (US$: 60 Million). The Group owns and operates seven companies located in various parts of the country, comprising of twelve modern production units. The group is currently employing 3500 personnel in its different projects. The Group has been awarded seven Merit Trophies for best export performance during different years by Prime Minister of Pakistan & other High-ups through Federation of Pakistan Chamber of Commerce & Industry an Apex body of Trade & Industry. In addition, Corporate Excellence Certificate 1998 has been awarded to them in Textile & allied Sector by the Management of Association of Pakistan (MAP). As per data collected by Vital Information Services (Pvt.) Ltd., the name of this Company was ranked as one the fastest growing Companies of Pakistan. To build more confidence in their products by their valued buyers Certificates under ISO 9002 have been achieved separately for our five Spinning and two Weaving unit from (URS) (United Registrar of System Ltd.) U.K. Introduction of the Company: Mahmood Group is vertically based on integrated industries and started business in 1935, by setting up a tanning unit. Since then, the group has grown immensely in the fields of cotton ginning, spinning and weaving. Objectives: 'Farm to Fabric' is the objective of the company. Being vertically integrated, the group possesses its own vast cotton farms in the area of Multan, a region of Punjab. The cotton ginning, seed oil extraction, spinning and weaving units are located at strategic places for efficient and harmonious working of the various production units. Current Performance: The only group which starts from cotton farming to ginning, spinning and weaving, which gives it a distinction over the entire textile industry of Pakistan.

 Certified by ISO, Supima, Lycra and Oko-tex. Employees = 11,000. Turnover = US$ 70 million. Exports ratio = 90%. Employee Turnover = 10%. Responsible Corporate Citizenship Core Values: The group is always open for strategic alliances & long term relationships (Core Concept and basic idea). We believe in passing on the benefit of less cost to our buyers instead of increasing our own overheads; however there is no compromise on quality or machinery Future Plans: In an era of trade globalization, our vision is excellence in terms of quality with satisfied internal and external valued customers. The objective is to achieve continuous improvement in quality through professional management, state-of-the-art equipment, and highly motivated workforce. We at Mahmood Group are demonstrating sustained growth over the period of last 3 decades with reasonably good return on investment which have been utilized to give high quality products to our valued customers at least possible prices. Vision Statement To be recognized internationally and locally as dynamic, quality conscious and ever progressive Textile Product manufacturer in the textile Industry of Pakistan. Mission Statement Mahmood Group is committed to: Be ethical in its practices. Excel through continuous improvement by adopting most modernized technology in production. Operate through professional Team work. Retain our position as leading and innovative in the Textile Industry.

 Achieve Excellence in the quality of our product. Be a part of countrys economic development and social Prosperity

Operations Strategy Goals: The main purpose again is to have customer satisfaction. This would ultimately mean higher profits as more competition. Core Competencies: The core competencies of Mehmood Textile Mills are as follows: Quality Standard Buyer Satisfaction Efficient and Effective Staff Competitive Priorities The importance of Competitive priorities is essential in every successful organization. The basic factor to be viewed is to look for is that which one is given the most preference and why. The four main core competencies are 1) Cost 2) Quality 3) Time 4) Flexibility Cost As far as cost is concerned this group is vertically based so overall cost is less then any other textile unit in Pakistan. Quality:

Two main things persist in this scenario of quality: 1) Consistent Quality 2) High Quality Quality is the thing, which is given most preference in Mahmood. The objective is to always have the best and most modernized machinery to have the best quality. The concept of consistent quality is simply not preferred as the company always wants to have increasingly better quality which gives them a big edge on there competitors. In a sense the quality can be consistent as it is for a specific customer a specific and consistent quality is to be maintained. The quality policy of the group states as follows: "We are committed to the achievement of excellence in the quality of our products. This is done by motivating all employees towards the satisfaction of our customers and with the use of best quality raw materials."

Flow Strategy: There are three possible flow strategies, which an organization can adopt. (1) Flexible flow strategy: (2) Line flow strategy: (3) Intermediate flow strategy: Flow Strategy Used In Mahmood Textile: The flow strategy used in most of the textile mills and Mahmood textile is Intermediate Flow. This is because there are some times some alterations and specifications made in the order. Which means no standard product. This basically depends upon the requirement of the buyer. The buyer gives up a specification and production has to be done accordingly. But this flexibility is only to a limited extent according to the capability of the machinery. Strategies Based On Flows: There are 3 strategies based on three flow-strategies. 1. Make-To-Stock Strategy:

Its for line flow strategy & high volume production. 2. Assemble To Order Strategy: Its for intermediate flow strategy. The components exist in organization but they are assembled on order. 3. Make To Order Strategy: Its for flexible flow strategy and customized product or services. Strategy Used In Mehmood Textile: The company being a textile like most of the other goes for the make-to-order as the production is made right according to the yarn. Decision Making: The decision-making authority for high and big decisions is mainly left with the Top Management that constitutes of the Chairman and the Directors. The Managers also play a special role in these decisions and the role of the General Manager is also very vital. The directors themselves mainly take the orders and similarly they are the ones who negotiate of rates with their respective buyers. This basically reflects towards are more centralized decision making system. The department heads are supposed to cope up with their own departments problems and there requirements as per, but again the confirmation for the implementation of any order needs to be confirmed from the Top Management. The General Manager and his authorized subordinates usually resolve the conflicts within the mill between workers and other minor problems. The Top Level Management under the supervision of the Chairman takes the big decisions like Expansion of a particular unit or the making of a new unit. Process Different Process Of Spinning Mills Blow Room: This is the first department of a spinning Mills. The main object of Blow Room is to blow out the waste from the cotton which is blown through the machinery by suction blowing and beating method. The waste is extracted by gravitational force method. Usually 57% waste is extracted in this stage.

Card: This is the second department in the line of spinning period. The cotton is once again cleaned short fibers and waste is extracted and the strand of fibers is brought in such a position that further drafting can be done in the subsequent processes. The waste extracted is almost 56% Drawing: The product from carding comes to drawing section. Here the product is mixed so that variation in quality may be minimized and the fibers are parallelized. Simplex: From drawings the sliver comes to simplex machine. In simplex the fibers are once again drafted and little bit twist is inserted. So that for final spinning the strand of fibers may get ready. Spinning: In this process the yarn is manufactured from roving by drafting and twist insertion. There are different methods for spinning of yarn but ring running is most common method used in the world. Auto cone: The yarn made in ring spinning is brought to auto cone. In auto cone yarn is cleared from defects by any yarn clearer and with fix length is converted into a package according to the requirement of buyers. Packing: To give the yarn extra strength and elasticity the yarn is conditioned by giving some moisture and packed; now the yarn is ready for dispatch. Location The Group has four of its units located in the District area of Muzaffargarh while the other remaining one named as Masood Fabrics is located at KabirWala district. These locations are on the following basis. Availability Of Raw Material: One of the major factors for their location in Muzaffargarh is that its connecting cities like Multan and Bahawalpur are cotton growing areas and availability of raw material is not a problem at that particular area. Even though the company usually uses up its own ginning factories cotton but still periods can be there when the cotton from the market needs to be purchased. Proximity to Market:

The firm can easily serve the other markets, as facilities were available. Mainly the production of the Raw Materials is there. This location of Shah Sons is also near by Multan which helps the mill in getting its spare parts. Taxes and Real Estate Costs: The real estate's cost at that time when the mill was established was too much lower as compared to the main area in the city which helped the group in developing the city and the its mill. Favorable Labor Climate: The labor plays an important role in the selection of the labor-intensive company. So the main reason for the selection of the site outside city was that the labor was available at the cheaper rate. Room For Expansion: Another factor was that there was a potential to grow more in the market. This is why the mill in here added more four units. Forecasting Forecasting is the science and art of predicting future events. It may involve taking historical data and projecting them into the future with some sort of mathematical model or forecasting may involve combination of these i.e. a mathematical model adjusted by managers good judgment. Effective planning depends on a forecast of demand of the company products. Importance Of Forecasting: Forecasting help in adjusting three main functions: Human Resource Capacity Supply Chain Management Forecasting Approach: Generally two approaches are used for forecasting activities. These approaches are: Qualitative Approach: This approach incorporates some important factors like decision maker intuition emotion, experience and judgement. This approach include following techniques:

 Jury of executive opinion Sales force opinion Delphi Technique Consumer market surveys Quantitative Approach This approach implies a variety of mathematical models that use historical data and causal variable to forecast demand. Technique used under this approach is: Time Series Models: Moving averages Exponential smoothing Trend estimate projection
Casual model:

Simple linear regression Multiple regression

Capacity Capacity is the maximum rate of output for a facility. The facility can be a workstation or entire organization. Plants: There are five spinning units in the group with all of them having almost the same capacity to produce. Four units are located in the Muzaffargarh district and the other one named as Masood Spininig is located in Kabir Wala. Spindles in each plant: Unit 1 15360 spindles

Unit 2 19600 spindles Unit 3 15360 spindles Unit 4 15360 spindles This gives an average of about 16420 spindles per unit. Capacity Information For A Unit: 1 Day= 24 hrs (3 Shifts of 8 hrs. each) Ideal Capacity =360,000 lbs.

Peak Capacity =410,000 lbs

Effective Capacity =300,000 lbs NOTE: Count Variations can have effect on the capacity. Capacity Cushions: The company basically produces according to its capacity. Capacity cushion dont not allow first class finished product. Therefore the company avoids keeping them. Enhancement In Capacity: There is no particular procedure for enhancement of capacity but mainly the help of following steps does it A-grade raw material is used so that less waste may be extracted in the manufacturing process and more production can be obtained. Wastage of material at different manufacturing stages is controlled and whatever is re-useable is reused. Supply Chain Management Supply-chain management aims at synchronization of a firms activities/ functions and those of its suppliers to match the flow of materials, service and information with customer demand.

Supply Chain In Mehmood Textile:

Inventory Management Inventory is stock of anything held to meet the future demand for organization. For an organization Inventory Management is very important process. Inventory Tracking: Different methods are used for the tracking of Inventory. Different computer programs and monitoring charts are used for keeping the Inventory minimum and maximum levels. Employees in the store have charts after Inventory level and report to management if Inventory level reaches to minimum level so that new order is made. Economic Order Quantity (EOQ) is also used to some extent as it is a general entity used by every organization. Average method is used by the Mill because according to them its is the most suitable for the organization and is determined in the policy of the organization. Systems For Inventory Management: These are three types of systems.

1. Continuous system 2. Periodic 3. Hybrid system System Used In Mahmood: The company makes use of Continuous or perpetual inventory management system where the records of the finished goods and other inventory are kept up right upto date with the help of stores and other people assigned for this particular task as for the company this helps in having the work done in a more efficient manner. Reorder point: The company uses the optimal replenish system to an extent. For different items different minimum inventory level serving as the reorder point. But if calculated on average basis by the company I was informed that it has about 2 weeks are used as a reorder point.

Aggregate Planning A manufacturing firms aggregate plan, called a Production Plan, generally focuses on production rates and inventory holdings, whereas a service firms aggregate plan, called staffing plan, centers on staffing and other labor related factors. The Purposes Of Aggregate Plans: Aggregation: The aggregate plan is useful because it focuses on general course of action, consistent with the companys strategic goals and objectives, without getting bogged down in details Aggregate Planning Policies: Reactive Policy: It means one has to follow the demand patterns by adjusting all three factors Production Rate Work-force labor

 Inventory level Under reactive policy there are further two categories; Chase Policy: Demand is followed by adjusting production rates. No inventory is kept which avoids holding costs. Level Policy: Demand is followed through inventory level while keeping production rate constant. When demand is high it is met from inventory. When demand is low it results in piling of inventory. Strategy Used In Mehmood Textile: The company basically makes use of the level strategy where about 350 workers work in a particular unit. Further fluctuation of demand is not very much there therefore this is the most feasible strategy for the company. The company makes use of Undertime Overtime And according to the company most of the times there is no under time and if it is its almost negligible. Overtime payment is made according to the normal wage rate.

Material Requirement Planning Material requirement planning system enables businesses to reduce inventory levels, to utilize labour and facilities in a better way and improved customer-service. It mainly has three components 1. Bill of Material (BOM) 2. Inventory Records 3. Master Production Schedule (MPS) As the companys only finished good is yarn there fore the bill of material is pretty simple as well. The inventory of Raw Material i.e. cotton is on seasonal basis all the available and required cotton is stored in

that duration. The master production schedule is prepared on almost weekly basis but is checked and reviewed on almost daily basis by the concerned authorities.

future vision
In an era of trade globalization, our vision is excellence in terms of quality with satisfied internal and external valued customers. The objective is to achieve continuous improvement in quality through professional management, state-of-the-art equipment, and highly motivated workforce. We at Mahmood Group are demonstrating sustained growth over the period of last 3 decades with reasonably good return on investment which have been utilized to give high quality products to customers at least possible prices.
r to product innovation by mastering value added areas like processing and finishing.

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