CHAPTER I
1. INTRODUCTION
1.1 About the Industry
a. History of the Industry
The Indian clothing or apparel industry had its origin during the Second World
War mainly for mass production of military uniforms. Over the years, its profile has
undergone significant changes. Technology has been gradually upgraded and there is
qualitative and quantitative improvement in apparel industry in India. Now India is
well known for its fine textile products and emerged as strong destination of all types
of highend textile products. India’s garments are exported to almost all parts of
developed world. Most of the leading fashion brands are sourcing substantial
quantities from India now.
One of the basic needs of civilized mankind is clothes. The garment industry
caters to the need of clothing while textile refers to the production of intermediate
products like fabric and yarn etc which are used to make the final product i.e. garment.
The textile trade around the word has expanded at rapid speed than the GDP growth
and trade in international textile and clothing has grown at higher rate than world
trade. World textile and clothing industry was around US$ 309 Bn in year 2003 and it
was expected that it would be reaching US$ 550 Bn by 2005 (when all quantitative
restrictions are gone away) and US$ 856 Bn by 2012. Textile and Clothing (T&C)
industry would be the fourth industry to cross trillion dollar mark after Auto,
Computer and Pharmaceutical sector. There is immense potential of growth with
changing fashion and rising standard of living. US and EU would be the major
importer countries of textile products. The Indian garment industry is extremely, with
the hand-spun and hand-woven textiles sectors at one end of the spectrum, while the
capital intensive sophisticated mills sectors from the other end of the spectrum. The
de- centralized power looms/hosiery and knitting sector from the largest component of
the textiles sector.
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b. Present and Future prospects of the Industry
India’s textiles sector is one of the oldest industries in Indian economy dating back
several centuries. The Indian textiles industry has the capacity to produce a wide variety
of products suitable to different market segments, both within India and across the world.
However, the USA, EU and Canada together account for 70% of world exports.
Markets in Asia, Africa, East Europe, Australia, New Zealand and countries in the
Pacific Ocean account for the rest. India’s Textiles Exports were highest ever in FY
2021-22, crossing $44 Bn
India is a largest cotton producer (23%) in the world and has the highest area under
cotton cultivation (39% of world area). Cotton plays a major role in sustaining the
livelihood of an estimated 6.5 Mn cotton farmers.
India produced 94 Lakh bales of raw jute in FY 2022-23 as per the 3rd Advance Estimate
Of Directorate Of Economics And Statistics (DES).
The Indian textile and apparel market size is estimated around $165 Bn in 2022,
with domestic market constituting $125 Bn and exports contributing $40 Bn.
The market size of the industry is projected to grow at a 10% CAGR to reach $350
Bn by 2030.
India scaled its highest ever exports tally at $44.4 Bn in Textiles and Apparel
(T&A) including Handicrafts in FY 2021-22, indicating a substantial increase of 41%
and 26% over corresponding figures in FY 2020-21 and FY 2019-20, respectively.
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ABOUT THE INTERNSHIP
The main objectives of the term “HR TRAINING” is to develop the basic
knowledge and discern the functioning of and to get the company hands on experience in
the work scenario which is must for a management graduate, In HR training which I have
undergone at SCM GARMENTS Pvt Ltd, Thekkalur. This is useful for imparting such a
practical knowledge which in turn improved my management skills, out of which I
learned the process involved in manufacturing of fabrics.
This internship is an opportunity offered by an employer to potential employees,
called interns, to work at a firm for a fixed, limited period of time. Interns are usually
undergraduates or students, and most internships last for any length of time between one
week and one months.
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1.2 About the Organization
a. History of the Organization
SCM Garments Pvt Ltd
Established in 1989, SCM Garments Private Limited is the destination of superlative
apparels that are knitted with immaculate quality and strong values. Each of our brands is a
natural extension of our philosophy of excellence that is created with zeal and concern to our
customers who are spread over globally. As an exports arm of The Chennai Silks (TCS), we
exist to create experiences where passion and purpose come together. We leverage on robust
research and advanced technologies which makes us
“A Fibre to Fashion company”.
We are part of the biggest and most efficacious company - SCM Group of
Companies. We believe that quality and efficiency are a quintessential part of our very being
and to measure up to our own ideals. Also, instilling a sense of ownership and pride enhances
a long-term relationship with our customers. To stay true to our pride in workmanship, we’ve
established a dominant presence in every part of the textile spectrum and our pride lies in
being independent and self-sufficient in every stage of garment production. We will continue
to persist with confidence and move steadfastly despite any obstacles and thereby leaving
remarkable foot-prints in the history of garment industry.
In order to boost the volume of export production, the company has affiliated and
integrated processing units like Dyeing, Knitting, Compacting, Embroidery units, etc., The
export capability of the company is ably supported by its progressive attitude that has made it
to have vertical set-up knitting factories, processing division and garments manufacturing
division
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b. Structure and Function of the Organization
PRODUCTION LINE
• Design Studio
• Cutting and Spreading
• Stitching
• Finishing
• Packing
VALUE ADDITION
• Printing
• Embroidery
• Accessories
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c. Mission and Vision of the Organization
MISSION:
To become a leading and responsible textile industry, this understands the human
requirements and acts to balance these by producing world-class products, keeping in view
the social, economical concerns of the nation
VISION:
To manufacture products to international standards, to be customer-focused and
globally competitive though better quality, latest technology and continuous innovation and
engineering.
d. Future Plans of the Organization
❖ To deliver the agreed quality every time
❖ To maintain good relation with all their partners and colleagues.
❖ To meet up the customers’ expectations
❖ To understand the pre requisite for the value creation
❖ To focus on creating value for their customers and for the team as a whole.
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CHAPTER II
2. FUNCTIONS AND STRUCTURE OF DEPARTMENTS
2.1 PURCHASE DEPARTMENT
The primary objective of purchase department is to obtain the right materials, in the
right quality, at right time and price. One role of the purchasing department is to procure all
necessary materials needed for production or daily operation of the company or government
organization. The purchase department’s primary task is to procure the required materials at
the best possible price without comprising the quality. After the enquiry if the purchase
officer is satisfied, he asks for samples. These samples are received and duty checked by the
quality department.
The purchasing department in a garment company is similar to the sourcing
department but the main difference is that the sourcing department works for sourcing the
fabrics alone while the purchasing department works for sourcing the accessories and
trims.
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2.2 PRODUCTION DEPARTMENT
The production department/ team coordinate and do all operation activities on the
production floor. All other departments give them support for smooth operation. The
operational production team leads the future production operations by showing an
exceptional leadership approach and contributing to attaining the garments industry’s
vision. The overall operation process is under the production team and all the production
staff, officer, and production manager is under the production department.
The production department is responsible for production throughout the garments
factory process by the process with good quality. In the garments industry, we can see 3
key departments called cutting, sewing, and finishing in the garments industry, the
production team control and lead all 3 departments. Apart from these 3 key sections, a few
other sections are also there under production like embroidery. The cutting department
gives input to the sewing section, the sewing department gives input to the finishing
department and the finishing section makes product finished goods, all 3 are under the
production department.
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2.3 HUMAN RESOURCES DEPARTMENT
In all the companies the human resource department plays an important role by
selecting the employee for a job this department appoints the employees personal
department functions with the help of the other department under the help of the other
department under the control of personnel manager and supervisions. In this company,
customers are called as foreigners or buyer, Buyer is the person from whom the company
getting order. 100% export oriented buyer place the order and also they inform about quality
type delivery date and time of goods.
The company mainly exports to European countries because they have more number
of buyers in EU. The company gets order from the buyer in the form of order sheet, buyer
order (or) purchase order copy.
HR processes man power requirement, wages slip issued PF, ESI placement,
attendance mechanism, HR also processes settlement, salary certificate and man power
supply.
Salary is paid monthly to staff and weekly paid to labor. Separate attendance has
been maintained for the monthly salary and separate attendance for weekly salary workers,
the company can also provide social benefit for workers.
The HR department collects the photo of the employee and personal data, family
particulars name, D.O.B, address. The daily wages (or) monthly salary is fixed by the HR
Department.
HR Department Fixes probation period and then provide appointment order. Age
proof is necessary of the employee because 18 years completed person only allowed time
card is also maintained by HR department this time card is necessary because to calculate
the salary to the person according to his time attendance.
Attendance requirement, placement salary, wages, training record updates are
maintained by HR Department. Training certificates are provided by HR department to the
person based on file maintained separately for each employee in HR department.
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2.4 MARKETING DEPARTMENT
The Export Manager proceeds to examine carefully in respect of items specification
shipment inspection, Payment conditions, special packing, labeling, shipment and delivery
date, marine insurance, documentation etc. Once he is satisfied on these aspects, a formal
confirmation is sent to the buyer otherwise clarification should be sought from the buyer
before conforming the order. After conformation of the export order immediate steps should
be taken for procurement of the raw material and accessories. Formal export contract is
entered into with buyer before any manufacturing activity commences.
• Meeting the buyer
• Asking their Opinion
• Asking shipping mode
• Garment Production
• Sending the Goods
• Buyer Receives Goods
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2.5 SALES AND STORES DEPARTMENT
A sales department is responsible for selling products or services for a company.
The department comprises a sales team that works together to make sales, increase
profitability and build and maintain relationships with customers to encourage repeat
purchases and brand loyalty. The sales department identifies sales goals and objectives and
prepares a sales plan that acts as a guide to achieving them.
Before starting the garments production, the required amount of fabric has to
store in the garments. All the next processes such as spreading, cutting, sewing, etc. have
been done by taking the fabric from here. As result, this department plays an important role
to get smooth production. The main responsibility of fabric store department is to store all
the raw materials specially fabric necessary to produce garments. This department is sub
divided into three sections.
i. Receiving Fabric roll
Woven fabrics are supplied in roll package. Once these rolls of fabric are
delivered the store in-charge receives the incoming consignment. This is the first
phenomenon which is done in fabric store.
ii. In-house Inventory
Once these rolls are received, the store in-charge matches the packing list of the
fabric consignment with the original quantity of the fabric rolls. He also keeps all the record
in a log book. The inventory maybe done alone by the store in-charge or with the presence
of a representative of the fabric supplier.
iii. Cutting for inspection
At the time of inventory a piece of fabric is cut form every roll. The piece is of
full width of the fabric and of a length depending on buyer. These cut piece is send
for inspection tests like shrinkage, blanket making for shade segregation.
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2.6 ACCOUNTS DEPARTMENT
Accounts Departments is directly under the supervision of the top management.
However, they closely work with purchase, commercial and personnel department.
Information related to this department is highly sensitive and therefore all the information
regarding this department is not disclosed with others.
• Pay salary, manage the company’s account
• Make advance payment, recompense payment for production costs
• Collection of debts on buyers
Apart from the money to pay suppliers, salaries, expenses, etc funds have to be on hand to
finance stocks of raw materials and finished goods. In periods when trading is difficult and
revenues are down, provision has to be made to cover such periods.
Some important functions performed by this department are:
• Providing management information
• Budgeting
• Garment costing
• Administration.
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2.7 FINANCE DEPARTMENT
The finance department is responsible for managing all the financial administrative
affairs of the company and has a very important influence on many of the policy and
commercial decisions taken by management. The financing of a company’s operations
require precise timely planning and control in order to ensure that adequate funds and credits
are available when needed.
Budgeting:
The object of budgeting is to plan and control the company’s activities so as to
maximize profitability, and the starting point for all budgeting is the sales budget. This is
usually drawn up before the beginning of each financial year or season considering the sales
to be established and new customers, general economic trends at home and abroad,
manufacturing capacity and availability of finance. Other budgets considered are: labor
costs, material costs, overheads, and departmental budgets.
Garment Costing:
It is the ‘identity card’ of the garment and contains all the information required for
the pre-production and production stages making garments. The costing sheet shows the
detailed costs for:
• Material,
• Labor,
• Fixed and variable overheads,
• Other expenses.
The information for garment costing comes from various sources: sample section,
cutting room, break down time values and costs involved in cutting, sewing and finishing,
costs of trims and materials, overhead costs from finance department.
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Administration:
All the departments in a clothing industry require administrative support for their
operations to ensure orderly and systematic functioning.
The procedures covered are;
• Preparing orders to supplies,
• Checking goods inwards,
• Timing and methods for stock taking,
• Imports and exports,
• Obtaining credits for returned goods and materials,
• Issuing credits for customer returns,
• Negotiating and issuing tenders for major projects,
• Purchase of office furniture and equipment etc.
A clothing business has ‘up-front’ departments such as design, marketing and
production and the fact that they function smoothly is the result of good administrative.
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CHAPTER III
3. OBSERVATIONS FROM THE INTERNSHIP
“By three methods we may learn wisdom: First, by reflection, which is noblest; Second, by
imitation, which is easiest; and third by experience, which is the bitterest” ~ Confucius. When
you take pride in your work you will reflect upon it. I take great pride in my internship.
Therefore, I will reflect on these last few months. Not only have I changed the way that I view
my own strengths and weakness, but my view of others has shifted dramatically. This internship
semester has given me insight that I never thought I would know.
In every situation you grow. This growth can result in a negative or positive outcome, the
end result is ultimately up you. And this is a key lesson that I have learned throughout my
internship. Every situation I came across, whether it be on the Hill or in the APA, was a chance
for me to cultivate a negative or positive outcome. My attitude in every situation is the biggest
influencer. In fact, attitude is so important the Bible speaks about it, "Let all bitterness, and wrath,
and anger, and clamor, and evil speaking, be put away from you, with all malice:" If I allow these
emotions of bitterness and anger to overcome my thinking and attitude, then I am creating a
negative result. I found that I have the power to change a situation.
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3.1 SWOT ANALYSIS
Strength
• Strong and diverse raw material base including cotton, jute, silk, wool, man-made
fibers and other specialty fibers.
• Second largest producer of man-made fiber, largest producer of jute and handloom
cloth and second largest producer of silk.
• Strong presence in the entire textile value chain from raw material to finished goods.
• Unique strength in traditional handlooms and handicrafts.
Weakness
• Technological backwardness especially in weaving, processing and garmenting
sections
• Under developed domestic textile machinery manufacturing industry, necessitating
import of modern and second-hand machinery at a large scale.
• Existence of huge skill deficit in the work force.
• Low share in global exports despite being the largest producer.
Opportunities
• Promising domestic market due to high growth in GDP and per capita income.
Favorable demographic structure with high income proposition of working population.
• Supportive policy regime, increasing plan expenditure and generous incentives for
investment and modernization.
• Rising wages and cost of living in countries closely competing with India in the
international markets of the textiles and clothing sector provides a vast opportunity for
India to capitalize.
• High spending on infrastructure and socially inclusive programs by the Government.
Threats
• High cost of raw materials and decline in the purchasing power of people due to high
inflation.
• Slow pace of development of infrastructure, availability of power etc.,
• High cost of meeting strict environmental standards.
• Unfavorable exchange rate situation.
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3.2 CONCLUSION
In review this internship has been an excellent and rewarding experience. I have been
able to meet and network with so many people that I am sure will be able to help me with
opportunities in the future.
One main thing that I have learned through this internship is time management skills
as well as self-motivation. When I first started, I did not think that I was going to be able to
make myself sit in an office for eight hours a day, five days a week. Once I realized what I
had to do I organized my day and work so that I was not overlapping or wasting my hours. I
learned that I needed to be organized and have questions ready for when it was the correct
time to get feedback. From this internship and time management I had to learn how to
motivate myself through being in the office for so many hours. I came up with various
proposals and ideas that the company is still looking into using.
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3.3 REFERENCE
https://www.scmgarments.com/
https://www.justdial.com/Tirupur/Scm-Garments-Pvt-Ltd-Avanashi-Ho/9999P4296-4296-
140430112824-N7A8_BZDET
https://www.indiamart.com/scm-garments/aboutus.html
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