RESEARCH PROPOSAL

TOPIC
A STUDY ON PRODUCTIVITY EFFICIENCY OF TEXTILE INDUSTRY OF INDIA

SUBMITTED TO: MS. A. RAJYALAXMI ASSISTANT PROFESSOR NIFT, HYDERABAD DATE OF SUBMISSION: 30.01.12

SUBMITTED BY: DIVYA SINGH MFM 2ND SEM NIFT, HYDERABAD

RESEARCH TOPIC: A study on Productivity Efficiency of Textile Industry of India

INTRODUCTION TO THE TOPIC

The Indian textile industry is the second largest in the world second only to china. Indian textiles also account for 38 percent of the countrys total exports and are therefore, a very important industry. The forecast is that textiles exports will reach USD 35 billion by the years 2012. To sustain this growth, it is imperative that the textiles industry produces goods of high quality at reasonable prices. This means that the industry must continuously moderate its machinery. Therefore, the textiles machinery industry sector has an integral role to play in the growth of Indias export industry. Analysts note that textile prices are Increasingly competitive worldwide as more and more developing countries enter the global textile trade. To maintain if not increase, its global market share, the Indian textile industry must procure modern, lowcost, textile machinery so that it can produce high quality textiles and garments for export at competitive prices. It is in this context that the market for used textile machinery is viewed as very promising used textiles machinery permits India to incorporate new technology at low cost. Here are a few important facts about Indias textile: 1. There are approximately 1200 medium to large scale textile mills in India. Twenty percent of these mills are located in Coimbatore(Tamil nadu). 2. India has 34 million cotton textile spindles for manufacturing cotton yarn. Cotton yarn account for 70 percent of Indias textile exports (China has 40 million cotton spindles.) 3. Of the Indian textile yarn exports, almost 80 percent come from coarser yarns (counts below 40s). Consequently, there is a need to upgrade the technology. 4. For the past two years, there has been a significant slow-down in the cotton spinning segment, mainly due to the spiraling price of cotton. 5. The domestic knitting industry is characterized by small scale units which lack adequate facilities for dyeing processing and finishing the industry is concentrated in Tirupur (Tamilnadu) Ludhiana (Punjab). Tirupur produces 60 percent of the countrys total knitwear exports. Knitted garments account for almost 32 percent of all exported garments. The major players include Nahar spinning, Arun processor and Jersey India. Financial soundness of a business enterprise largely depends upon the liquidity, productivity and profitability of the business enterprise. The liquidity can be achieved by managing the different parts of working.A Study of Productivity and Financial Efficiency of Textile Industry of India 86 capital such as receivable management, cash mgt.and proper debt collection policy. An output is obtained by the

combined input of a number of factors like labour, material, capital, land and organization. The ratio between output and one of these factors of input is generally known as the productivity of the factors considered, the ratio between output and all these factors is known as total productivity. It is considered as a measure performance of the economy as a whole. In the broadest concept, productivity may be taken to constitute the ratio of all available goods and services to the potential resources of the group of the country. The problem of increasing productivity implies the full proper and efficient utilization of the available resources of men machines- money power land- capital etc. Productivity cannot have a mask attack on wastage of every type and in every sphere. It constantly urges to find better, cheaper, quicker, easier and safer ways of doing job, manufacturing a product and providing a service. It aims at the maximum utilization of resources for yielding as many goods and services as possible, of the kinds most wanted by consumers, at the lowest possible cost. The profitability can be achieved after control over the cost of production. In recent years, cost of almost all elements of production like cost of raw material consumed, wages cost, excise duty, power and fuel cost, interest burden, administrative expenses, selling and distribution expenses etc. have increased heavily. On the other hand, selling price of A cement, textiles, automobiles, woolen, engineering, tea, paper, and chemical products has decreased. In these circumstances, to keep the progress of business enterprise is very essential for management in present environment, to achieve the profit it tends to introduce various control techniques over

expenditure and get maximum output. A study of productivity and financial efficiency classified on the basis of persons interested in the analysis. Generally external and internal parties are interested in such analysis of study. Objectives of both these analysis are different. An external analyst has to depend upon the published information of financial statement, which is not enlightening them. While internal analysis knows every thing regarding the information provided in the financial statements. Different analysts always make analysis or study of financial performance knowingly, generally, external analysts analysis of the information as per their requirements. Financier is interested in the financial and liquidity position. A shareholder is interested in the profitability. Management is interested in the productivity and

operational efficiency. Thus various stakeholders of business enterprise like management, investors, bankers, financial institutions, creditors, employees, government, economists, prospective investors etc. look at liquidity, profitability and productivity of the business concern.

BACKGROUND OF THE STUDY:

I have chosen the topic for research as a study on productivity efficiency of textile industry of India as my interest lies in retailing of fashion products. Any development in retail or textile industry domestic or overseas always catches my attention. New trends and innovation in retailing products always interests me and motivates me to know more about them.

In the process of getting acquainted with it is necessary to know about the productivity and financial efficiency of textile mill or industry of India. Increasingly competitive worldwide as more and more developing countries enter the global textile trade

However, All these factors motivated me to go into the depth of this topic and I decided to take productivity efficiency of textile industry of India as my research area.

OBJECTIVES OF THE STUDY:

The objective of the study is to analyze and interpret the Productivity Efficiency of Textile Industry of India. The basic objectives are as under: 1. To examine the position of textiles industry 2. To measure the financial efficiency 3. To determine the rate of growth of textile industry in india. 4. To assess and comment on determinants of the production, and productivity. 5. To suggest ways and means to improve performance

SCOPE OF THE STUDY:

There are approximately 1200 medium to large scale textile mills in India. Twenty percent of these mills are located in Coimbatore. (Tamil nadu ).India has 34 million cotton textile spindles for manufacturing cotton yarn. Cotton yarn account for 70 percent of Indias textile exports (China has 40 million cotton spindles.) Of the Indian textile yarn exports, almost 80 percent come from coarser yarns (counts below

40s). Consequently, there is a need to upgrade the technology.Indian Textile Industry is one of the largest textile industries in the world. Today, Indian economy is largely dependent on textile manufacturing and exports. India earns around 27% of the foreign exchange from exports of textiles. Further, Indian Textile Industry contributes about 14% of the total industrial production of India. Furthermore, its contribution to the gross domestic product of India is around 3% and the numbers are steadily increasing. Indian Textile Industry involves around 35 million workers directly and it accounts for 21% of the total employment generated in the economy.

METHODOLOGY:
The system of collecting data for a research project is known as Research Methodology.The data collection techniques to be followed in order to achieve the research objectives include primary as well as secondary data collection and its analysis. Primary Data Collection One of the foremost objectives of the research is to determine the productivity of textile industry of India. Thus this objective will be achieved by conducting a primary questionnaire survey among the worker of different textile mill of India. The proposed survey is an online questionnaire survey and personal interview which would determine the growth rate of productivity of textile industry of India and would have open as well as close ended questions. In order to perform this survey a sample of 50 respondents will be taken Secondary Data Collection Secondary data will be used to achieve the objective of productivity of textile industry of India. Secondary data will also be used to determine and analyze the future potential of textile industry of India. Secondary data will help to determine the steps which must be undertaken in order to successfully implement.