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  • Published on: 14th September 2019
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Abstract

Textile Industry in India is the second largest employment generator after agriculture.  It holds significant status in India as it provides one of the most fundamental necessities of the people. The textile sector in Tamil Nadu has been growing fast due to the comparative advantages developed by the sector is not that much significant.  Some of the major issues and basic problems affecting this sector's balanced development are explained in this paper.  The study also aims at analyzing the problems of exporters that would be very much useful to make preventive measures. Identifying the own production problems, managerial problems, marketing problems and financial problems helps the textile authority to provide valuable suggestions to the exporters and manufacturer's too. The study analyses problems related to the company for raising its standard. It helps the company to earn more profit and less waste.

Key Words: Textile Industry, Balanced Development and Identifying Problems

INTRODUCTION

The Indian Textile industry has a significant presence in the economy as well as in the international textile economy. Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings. It contributes 20 percent of industrial production, nine percent of excise collections, 18 percent of employment in the industrial sector, nearly 20 percent to the countries total export earnings and four percent to the Gross Domestic Product.

The textile industry occupies a vital place in Indian economy and contributes substantially to its exports earnings. Textiles exports represent nearly 30 percent of the country's total exports. It has a high weight age of over 20 percent in the National Production It provides direct employment to over 15 million persons in the mill, power loom and handloom sectors. India is the world's second producer of textiles after china. It is the world's third largest producer of cotton-after China and the USA and the second largest cotton consumer after China.

TEXTILE INDUSTRY IN TAMIL NADU

Textile industry is one of the traditionally well-developed industries in Tamil Nadu. Tamil Nadu has a strong production base and accounts for about 1/3rd of Textile production in the country. The net value addition in Textile industry in Tamil Nadu is about 37.5 percent, the highest in the country. The Textile mills are concentrated in Coimbatore, Tirupur, Salem, Palladam, Karur and Erode. Tamil Nadu has around 3,50,000 power looms manufacturing cotton fabrics and accounts for about 30 percent of India's export of textiles products. The Erode district in Tamil Nadu is well known for marketing of textile products of handloom, Powerloom and readymade garments.

The Textile Industry of Tamil Nadu has a significant presence in the National and State economy. It is the forerunner in industrial development and in providing massive employment in the State. Handloom, Powerloom, Spinning, Processing, Garment and Hosiery are the various sectors of the Textile Industry in Tamil Nadu. It is the largest economic activity next only to Agriculture in providing direct and indirect employment. Handloom sector occupies a place of pride in preserving the country's heritage and culture and plays a vital role in the economy of the country. It has a long traditional par excellence it its craftsmanship. The Powerloom Sector in Tamil Nadu has also been playing an important role in meeting the clothing needs of the people. The Power Loom Sector in Tamil Nadu is next only to Maharastra in terms of number of looms. The textile sector in Tamil Nadu is predominantly in the private sector, spinning oriented and labour-intensive because of the preponderance of the decentralized sector in most of the segment of the industry.

PROBLEMS FACED BY THE TEXTILE INDUSTRY

The textile industry is reeling under manifold problems. The major problems are:

  Sickness

  Obsolescence

  Government Relations

  Low yield and fluctuation of cotton output

  Competition from Man-made Fibres

  Competition from other countries

  Labour Problems

  Accumulation of Stock

  Other Problem like power cuts, infrastructure problems, lack of finance, exorbitant rise in raw material prices and production cost etc.,

STATEMENT OF THE PROBLEM

The textile industry in India is one of the largest and most important industrial segments of the Indian Economy accounting for over one fifth of the country's industrial production. The textile process has installed specific areas for each task. Precautionary measures are required of the workers in the industry's most dangerous zones. Textile problems usually happen in packaging areas and those close to gilling and carding machines, storage and dispatch areas and in weighing or quality control departments. Since the growth of textile industry in Karur is rather extensive, it is apt to consider the study in order to find out what the peculiar problems that arise in this industry and what is done by the proprietors to solve them amicably.

OBJECTIVES OF THE STUDY   

1. To analyse the structure of textile industry in India and the organizational pattern of exporters in Karur.

2. To analyse the motivational factors of exporters in Karur and suggest ways and means to improve performance.

3. To assess and comment on determinants of the production and productivity and examine the position of textile problem.

4. To analyze various problems involved in running a Textile Industry in Karur Town.

5. To identify the most crucial problems of Textile Industry and offer practical suggestions.

SCOPE OF THE STUDY

This study on textile industry to the keen observation is based on Karur textiles products only. The main purpose of this study is to know the problems of textiles business. It also covers the overall textile industry which the cent rater selected respondents in Karur only. The purpose of the study is to analyse the problems faced by the producers in the textile industry, Karur. This study is very much useful to know about the various causes that occur in the production, managerial, marketing and financial departments in textile industry, Karur. The result of the study is very much applicable to other company home textile products and other parts of the country.

RESEARCH METHODOLOGY

For the study purpose Karur has been selected because most of the textile industry situated in Karur only. Nearly 55 per cent come from Karur Export Association (KEA) out of which at present nearly 650 units are actively engaged in exporting and related production process in Karur. Hence, certain per cent of the above units have been selected as sample for the purpose of present study. Both primary and secondary sources of data were utilized for the study. Primary data was collected by means of administering a questionnaire to the textile industry. Secondary data have been collected from various publications, periodicals, journals and websites. Descriptive research design is one that simply describes something such as demographic characteristics of textile industry. The descriptive study is typically concerned with determining the frequency with which something occurs.

SAMPLING

For the purpose of the study, the data has been collected from different places of Karur district. 125 textile organizations were randomly selected for the study. In this method, the sampling units are chosen primarily in accordance with the investigators convenience. Based on simple random sampling, 125 units were selected for collecting the primary data. For the purpose of the study simple random sampling techniques was adopted. Karur town is selected as the area of the study, 150 respondents were selected at random. Out of 150 questionnaires issued, a total of 140 were collected back and 15 questionnaires has to be discarded due to incomplete answering and other reasons. Only 125 completed questionnaires were taken for the study.

STATISTICAL TOOLS USED FOR STUDY

The data are tabulated and analyzed keeping in view the objectives spelt out and hypotheses formulated. The research has the following tools during analysis:

(i)Percentage Analysis (ii)Simple Ranking Method and (iii) Chi – Square Test

LIMITATIONS OF THE STUDY

The study based on consumers survey through pre-designed questionnaire which suffers from the basic limitation of the possibility of difference between what is recorded and what is the truth no matter how carefully the questionnaire was designed and field investigation has been conducted.

REVIEW OF LITERATURE

Deepti Rajan (2011) Cotton and yarn prices are a perpetual matter of dispute between the industry associations representing the producers of these two materials and those representing the units that make textiles. The government is often beseeched by one or the other of these groups to either tighten or loosen export controls over cotton and yarn to adjust domestic prices.

Thulasidharan (2010) Chairman, The Southern India Mills Association (SIMA), has said that the spinning mills in Tamil Nadu is already in a disadvantageous position due to the absence of raw material base, incurring Rs.4 to Rs.5 per kg for bringing the cotton from the state like Gujarat selling over 60 percent of the yarn in upcountry by spending equal amount for transport, etc. He has stated that the new investment in modernization and green field projects in Tamil Nadu have already become dormant due to power shortage and high logistics cost.

Nair (2010) secretary general, confederation in Indian Textile Industry (CITI), said the textile industry is facing a crisis over rising raw material prices and decline in overseas orders in the last three months and the global economic slowdown which prompted buyers, especially in Europe and America, to postpone fresh orders and high volatility in raw material prices are a cause for concern.

ANALYSIS AND INTERPRETATION

TABLE: 1

FORM OF ORGANIZATION

S.No Organization No.of Respondents Percentage

1 Sole Proprietorship 43 34

2 Partnership 70 56

3 Joint Family 12 10

Total 125 100

Most of the respondents undergo textile business as a partnership organization

TABLE: 2

S.No Motivational Factor No.of Respondents Percentage

1 Employment 25 20

2 Traditional Business 19 15

3 More Profit 30 24

4 Growth Opportunity 36 29

5 Existing Demand 15 12

Total 125 100

Growth Opportunity is the main motivational factor to undergo textile business.

CHI-SQUARE TEST

FORM OF ORGANIZATION and MOTIVATIONAL FACTORS

Hypothesis:

There is no significant relationship between form of organization and motivational factors.

TABLE:3

Form of Organization

Motivational Factors Sole Proprietorship Partnership Joint Family Total

Employment 16 5 4 25

Traditional Business 10 9 - 19

More Profit 8 20 2 30

Growth Opportunity 5 26 5 36

Existing Demand 4 10 1 15

Total 43 70 12 125

RESULT OF CHI-SQUARE TEST

Test used Degree of Freedom Level of Significance Table Value Calculate Value Result

CHI – SQUARE 8 5% 15.507 27.40 Rejected

Since the calculated value is greater than the table value. The hypothesis is rejected. Hence, there is significant relationship between the form of organization and motivational factors of the respondents to undergo the textile business.

TABLE :4

OPINION ABOUT POWER PROBLEM

S. No Opinion No. of Respondents Percentage

1 Yes 125 100

2 No - -

Total 125 100

Power problem is the most important problem that affect the production process of textile business.

TABLE :5

PRODUCTION PROBLEMS

RANK THE PROBLEMS OF RAW COTTON

Problems I II III IV V Total No. of Respondents Total Score Mean Score Rank

No.of Respondents Score No.of Respondents Score No.of Respondents Score No.of Respondents Score No.of Respondents Score

1 Low quality of cotton 27 135 20 80 22 66 25 50 31 31 125 362 2.90 III

2 High Price 32 160 28 112 25 75 18 36 22 22 125 405 3.24 I

3 Shortage of cotton 21 105 25 100 23 69 27 54 29 29 125 357 2.85 V

4 Depending upon output type 20 100 24 96 28 84 26 52 27 27 125 359 2.87 IV

5 Paying heavy advance to weavers 25 125 28 112 27 81 29 58 16 16 125 392 3.13 II

From the above table it is clear that high price factor is the foremost influencing factor for the exporters in buying of raw cotton. The factor paying heavy advance to weavers secured II rank among the respondents. Low quality of cotton secured III rank.

TABLE :6

RANK THE PROBLEMS OF WEAVING

S.No Problems I II III IV Total No. of Respondents Total Score Mean Score Rank

No. of Respondents Score No.of Respondents Score No.of Respondents Score No.of Respondents Score

1 Mending 25 100 28 84 32 64 40 40 125 288 2.30 IV

2 Dust Problem 35 140 38 114 25 50 27 27 125 331 2.64 II

3 Stains 40 160 33 99 28 56 24 24 125 339 2.71 I

4 Color Problem 25 100 26 78 40 80 34 34 125 292 2.33 III

TABLE :7

RANK THE PROBLEMS IN PRODUCING GOODS

S.No Problems I II III IV V Total No. of Respondents Total Score Mean Score Rank

No.of Respondents Score No.of Respondents Score No.of Respondents Score No.of Respondents Score No.of Respondents Score

1 Purchase 25 125 22 88 37 111 15 30 26 26 125 380 3.04 IV

2 Weaving 35 175 17 66 26 78 25 50 22 22 125 391 3.12 III

3 Printing 40 200 29 116 10 30 20 40 26 26 125 412 3.30 I

4 Stitching 15 75 35 140 41 125 20 40 14 14 125 394 3.15 II

5 Packing 10 50 22 88 11 33 45 90 37 37 125 298 2.38 V

From the above table it is clear that Printing factor is the foremost influencing factor for the exporters in problems of producing goods. The stitching factor secured II rank among the respondents. Weaving secured III rank, the factor Purchase secured IV rank and the packaging factor occupied last position by the respondents regarding factors in Problems of producing goods.

TABLE: 8

RANK THE PRECAUTIONS TAKEN TO ELIMINATE THE WASTES

S.No Problems I II III IV Total No. of Respondents Total Score Mean Score Rank

No. of Respondents Score No.of Respondents Score No.of Respondents Score No.of Respondents Score

1 Proper Material 22 88 29 87 36 72 38 38 125 285 2.28 III

2 Clearness 34 136 35 105 32 64 24 24 125 329 2.63 II

3 Visual Control 25 100 28 84 29 58 43 43 125 285 2.28 III

4 Proper training for employees 44 176 33 99 28 56 20 20 125 351 2.80 I

TABLE : 9

MODE OF MARKETING

S.No Market No. of Respondents Percentage

1 Direct Export 45 36

2 Indirect Export 55 44

3 Local Market 25 20

Total 125 100

It is clear from the above table most of the respondents prefer indirect export mode for marketing their products.

TABLE : 10

OPINION ABOUT GOVERNMENT POLICES

S.No Opinion No. of Respondents Percentage

1 Favourable 35 28

2 Not Favourable 90 72

Total 125 100

Majority of the respondents opine that government policies are not favourable for textile industry.

TABLE: 11

MARKETING PROBLEMS

S.No Problems No. of  Respondents Percentage

1 Lack of Marketing Information 20 16

2 High Marketing Cost 15 12

3 Unauthorized Deduction 12 10

4 Insufficient Godown Facility 9 7

5 Poor quality of Packing materials 13 10

6 Poor Government supports 10 8

7 Competition 17 14

8 Agent Commission 8 6

9 Untrained Salesman 9 7

10 Price Level changes 5 4

11 Improper mehod of sale 7 6

Total 125 100

It is concluded that majority of the respondents feel that lack of marketing information and high marketing cost are the main marketing problems.

TABLE: 12

MANAGERIAL PROBLEMS

S.No Problems No. of Respondents Percentage

1 Increase of Yarn Price 18 15

2 Increase of Operational Cost 17 13

3 Heavy advance payment to weavers 12 10

4 Shortage of worker 8 6

5 Low quality of Yarn 6 5

6 Shortage of availability of Yarn 9 7

7 Increase of transportation cost 10 8

8 Difficult to receive the abroad market information 14 11

9 Difficult to complete the order in time 15 12

10 Limited order 16 14

Total 125 100

The above table shows that majority of the respondents say that increase of yarn price is the main managerial problem.

CHI-SQUARE TEST

AGE OF THE COMPANY Vs MANAGERIAL PROBLEMS

Hypothesis:

There is no significant relationship between age of the company Vs managerial problems faced by the textile owners.

TABLE :13

OBSERVED FREQUENCY TABLE

   Age of the company  

Managerial Problems

Upto 5 Years

5 – 10 Years

Above 10 Years

Total

Shortage of skilled workers 8 10 7 25

Low Quality of cotton 10 14 5 29

Poor Post storage facilities 12 13 3 28

Poor customer relationship 7 10 5 22

Insufficient godown facilities 3 8 10 21

40 55 30 125

RESULT OF CHI-SQUARE TEST

Test used Degree of Freedom Level of Significance Table Value Calculate Value Result

CHI - SQUARE 8 5% 15.507 11.71 Accepted

The calculated value is less than the table value at 5% level of significance. So the hypothesis is accepted. Hence there is no significant relationship between the age of the company and managerial problems of textile industry.

TABLE :14

OPINION ABOUT YARN RATE FLUCTUATION

S.No Opinion No. of Respondents Percentage

1 Yes 115 72

2 No 10 28

Total 125 100

The majority of the respondents feel that the yarn rate fluctuation affect textile industry.

TABLE :15

EFFECTS OF DOLLAR RATE FLUCTUATION

S.No Opinion No. of Respondents Percentage

1 Yes 80 64

2 No 45 36

Total 125 100

The above table shows that majority of the respondents opine that the textile industry is affected by dollar rate fluctuations.

TABLE :16

OPINION ABOUT GOVERNMENT SUBSIDIES

S.No Opinion No. of Respondents Percentage

1 Yes 70 56

2 No 55 44

Total 125 100

The majority of the respondents opine that government gives subsidies for textile industry to a certain limit as per provisions given in the act.

FINDINGS

• Most of the respondents(36%) belongs to the age of 30-40 years

• Most of the respondents(70%) belongs to the male of category

• 80% of the respondents are married persons

• 29% of the respondents say that growth opportunity is the main motivational factor to undergo textile business.

• 60% of the respondents nature of business is production and export and use machines through outsourcing.

• Most of the respondents feel that stains factor is the foremost influencing factor for exporters in problem of weaving.

• Majority of the respondents opine tht the government policies are not favourable for the textile industry.

• Most of the respondents feel that lack of marketing information and high marketing cost are the main marketing problems.

• Majority of the respondents feel that the low quality of cotton is the main factors influencing managerial problems

• Maximum number of respondents feels that textile owners mobilize fund through borrowing from financial institution.

• 56% of the respondents opine that government gives subsides for textile industry under specific limit.

SUGGESTION

• The government should fix the raw material cost for annual consumption or as per the availability.

• The textile organizations should provide proper guidance and adequate training to all types of employees for improving their contributions to reduce the production problems.

• To maintain a good raw material supply, Government should ban raw material export

• Shortage of labour is to be prevented.

CONCLUSION

The study concludes that the foremost problems faced by the exporters are power, rise in cotton price, fluctuations in yarn rate mobilization of fund for rotation in textile business and labour problems. The government should take necessary steps to overcome the problems which are faced by the textile owners in Karur.  

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