1.

Inventory Management Japan, India, Hong Kong and China became leading producers
due to their cheap labour supply, which is an important factor for the industry.
3.1.2.Global Textile Scenario According to statistics, the global textile market possesses
a worth of more than $400 billion presently. In a more globalize environment, the industry
has faced high competition as well as opportunities. It is predicted that Global textile
production will grow by 25 percent between 2002 and 2010 and Asian region will largely
contribute in this regard. The World Trade Organization (WTO) has taken so many steps
for uplifting this sector. In the year 1995, WTO had renewed its MFA and adopted
Agreement on Textiles and Clothing (ATC), which states that all quotas on textile and
clothing will be removed among WTO member countries. However the level of exports in
textiles from developing countries is increasing even if in the presence of high tariffs and
quantitative restrictions by economically developed countries. New innovations in clothing
production, manufacture and design came during the Industrial Revolution - these new
wheels, looms, and spinning processes changed clothing manufacture forever. The ‘rag
trade’, as it is referred to in the UK and Australia is the manufacture, trade and
distribution of textiles. There were various stages - from a historical perspective - where
the textile industry evolved from being a domestic small-scale industry, to the status of
supremacy it currently holds. The ‘cottage stage’ was the first stage in its history where
textiles were produced on a domestic basis. During the Industrial Revolution, new
machines such as spinning wheels and handlooms came into the picture. Making
clothing material quickly became an organized industry - as compared to the
domesticated activity it had been associated with before. A number of new innovations
led to the industrialization of the textile industry in Great Britain Haranahalli Ramaswamy
Institute of Higher Education, Hassan 25
2. 26. Inventory Management 3.1.3.Textile Industry in India India Textile Industry is one of
the leading textile industries in the world. Though was predominantly unorganized
industry even a few years back, but the scenario started changing after the economic
liberalization of Indian economy in 1991. The opening up of economy gave the much-
needed thrust to the Indian textile industry, which has now successfully become one of
the largest in the world. India textile industry largely depends upon the textile
manufacturing and export. It also plays a major role in the economy of the country. India
earns about 27% of its total foreign exchange through textile exports. Further, the textile
industry of India also contributes nearly 14% of the total industrial production of the
country. It also contributes around 3% to the GDP of the country. India textile industry is
also the largest in the country in terms of employment generation. It not only generates
jobs in its own industry, but also opens up scopes for the other ancillary sectors. India
textile industry currently generates employment to more than 35 million people. It is also
estimated that, the industry will generate 12 million new jobs by the year 2010. Indian
textile industry can be divided into several segments, some of which can be listed as
below: • Cotton Textiles • Silk Textiles • Woollen Textiles • Readymade Garments • Hand-
crafted Textiles • Jute and Coir 3.2.S.Kumars Nationwide Limited S.Kumars’ group was
founded in 1948 by two brothers Mr.Abhayakumar S.Kasliwal and Mr.Shambhukumar
S.Kasliwal . The group consist of a conglomeration of several manufacturing,trading,
Haranahalli Ramaswamy Institute of Higher Education, Hassan 26
3. 27. Inventory Management marketing and service companies. Each of which is
decentralised and run as an independent operating unit by well qualified personnel.
S.Kumars’ under the dynamic leadership of Mr.Nithin Kasliwal, not only continues to grow
in its existing line of synthetic fabrics but has also firmly committed itself to major
investments in cotton, synthetic and woollen fibre groups. The sprawling 40 acres of Reid
& Taylor plant for worsted suiting in Mysore in south India is a living testimony of the
S.Kumars’ firm resolve to emerge as one of the most important and diversified textile
group in India. 3.2.1. Four Pillars of S.Kumars Nationwide Limited SKNL's success is
based on its four pillars of strength - Manufacturing, Distribution, Brands and Human
Capital. These four pillars have made the company stand apart and succeed in a highly
competitive market scenario. Manufacturing Maintaining world-class quality has been a
corner stone in SKNL's business strategy. The company has invested extensively in
manufacturing facilities to maintain high quality standards. Four state of art
 manufacturing units based in Mysore (Karnataka) and Dewas (Madhya Pradesh)
collectively produce over 2,00,000 meters of high-quality fabrics each day. Luxury Textile
fabrics are manufactured at a world-class integrated facility situated near Mysore
(Karnataka). Its high quality fabrics are well received in the domestic as well as
international market. In fact, Reid & Taylor - Scotland, sources its fabrics from this mill as
well for its international markets. SKNL is the only manufacturer of fine count Damask in
India. Its Chamunda Standard Mills and Amana Manufacturing Unit in the outskirts of
Dewas (Madhya Pradesh) manufactures this fine fabric to cater to Indian & European
markets. Distribution The company’s wide network reaches both domestic as well as
overseas market. SKNL caters to the entire socio-economic segments of the Indian
market across 30,000 outlets through 300 dealers. Haranahalli Ramaswamy Institute of
Higher Education, Hassan 27
4. 28. Inventory Management Today, SKNL is the largest institutional supplier in India in the
organized sector. The company plans to establish high impact presence through multi-
brand outlets, large format chain stores and exclusive stores for all its brands. Brands
Ability to build brands, across the socio-economic segments has been one of the key
factors in SKNL's success. A keen understanding of the dynamic market trends, while
keeping abreast with the changing usage patterns, attitudes and preferences of the
consumers has been the foundation of creating successful brands. Reid & Taylor caters
to the premium and upper-middle strata of the Indian suiting market. Since its national
launch in 1999, the brand has accelerated to the second position in a highly competitive
market. The brand's growth has been hailed by marketing professionals and is a case
study for launching international brands in India. No surprise that Superbrands Council,
the world’s leading authority on marketing and advertising; has awarded it a ‘Superbrand’
status, second time running. Belmonte offers a wide range of polyester and viscose blend
fabrics for office, leisure and evening wear catering to the mid-premium consumer. It is
available across top 100 cities in India. ‘Uniformity by Belmonte’ is the sub-brand which
offers a wide range of uniform fabrics for professional work-wear across industries.
Carmichael House is a new entrant in the Home Textile category. This mass premium
brand offers a wide range of home textile solutions for the entire abode in a variety of
fabrics and weaves. Since its launch, Carmichael House, has received fast recognition
among its consumers. Human Capital Haranahalli Ramaswamy Institute of Higher
Education, Hassan 28
5. 29. Inventory Management SKNL has developed highly effective management
capabilities due to a unique fusion of entrepreneurship with professional expertise. The
Board of Directors includes eminent people from industry, law, banking, finance and
economic sectors. The business at SKNL is divided into product-wise Strategic Business
Units viz, Consumer Textiles (work wear, mid premium and daily wear), Home Textiles
(THE), Premium cotton fabric (HVFC) and Ready to Wear (Total Wardrobe
Solutions),Luxury Textiles. Each SBU operates as an independent profit center and is
lead by a seasoned professional. Service functions like Human Resources, Corporate
Finance, Corporate Planning, Research, Marketing & Communications and Legal are
centralized. 3.3. REID AND TAYLOR (INDIA) LTD Reid & Taylor (India) Ltd., is a
subsidiary of SKNL. Synonymous with British tradition, Reid & Taylor has been styling
the world's elite for over 170 years. It all began in the 1830's with Alexander Reid, an
enterprising Scottish gentleman, embarking on a journey to make his vision a reality.
Using locally available Cheviot wool he created Cheviot cloth that soon caught on the
fancy of the landed gentry. As the clientele and reputation grew, he was joined by
financer Joseph Taylor. Thus, began the enduring partnership of creating finest cloths in
the world, which today is better known as Reid & Taylor. Reid & Taylor continues the
journey to create the finest fabric passionately and has thus carved out a distinguished
name for itself in the industry. Reid & Taylor was launched by SKNL in India in 15th
December 1998 with the inauguration of a state-of-the-art fabric plant at Mysore in 40
acres of land . The discerning consumers in India now can experience international-
quality garments in their own cities and towns. Today, Reid & Taylor has emerged as a
leading brand in the worsted suiting segment with sales turnover of Rs. 2200 Million and
a market share of 18 %, propelling the brand to grow at a rapid rate of 25% p.a. The
 manufacturing facilities for Reid & Taylor includes; 13600 state-of-the-art worsted
spindles, complete and comprehensive facilities for dyeing of wool tops, yarn and
fabrics , the latest Dornier Rapier looms , well-equipped finishing department with the
ultra modern fabric processing gadgets. All these have churned out over 600 designs in
the first year of operation. Reid & Taylor is the first brand in India to offer both fabrics and
apparel under one label. The fine quality of garments and sharp styling has created a
space for itself in the customer’s mind. Haranahalli Ramaswamy Institute of Higher
Education, Hassan 29
6. 30. Inventory Management After an initial flush of success the brand once again faced
the grim future of stagnation. Research by ACNielsen concluded that it needed to reach a
wider audience in metros without losing the premium values associated with the brand
.The challenge required a brand ambassador who was a style icon for Indians, was
equally popular with both the masses as well as the elite. Also, his personality had to jell
with the brand platform. Amitabh Bachchan clearly fitted this role. The association has
helped the brand consolidate its positioning of ‘Bond with the Best’. This is because
Bachchan stands head and shoulders above his peers, defining the outstanding values
that always accompany style, grooming and professional excellence. Reid & Taylor
manufactures suit lengths in superfine merino fleece and superfine polyester executive
wear in wool and polyester and other popular blends. The composition, too, is more
adventurous. Linen Kraft is a unique combination of linen with 10% polyester for an
unruffled look. Specially developed for ceremonial wear is Silk Ovation – a 100% silk
fabric with a clear understanding of major user segments and usage environments, the
product offering has been created to exceed customer expectations. Rewriting the rules
with dynamic colours, attractive selvedge and competitive pricing, Reid & Taylor has
made its mark across all segments in the market. The plant has 12960 spindles and 56
looms and has a captive power generating capacity of 70MW.All the machinery is
imported from Germany, France, Italy, Switzerland and England. The range of the
products varies from medium to higher range. The 25% of its production are exported to
foreign countries like U.K, Middle east, Japan and UAE etc. The plant having technical
collaboration with Reid &Taylor Scotland . The company has provided direct employment
to 1200 workers including staff and indirect employees. The workmen are employed as
company apprentice on training period of two years and over 95% of the workmen are
recruited from in and around Nanjangud and adjoining villages. 3.3.1.Mission Statements
• To ensure the consumer remains the focal point of all our activities by offering him high
value for money. • To pursue our goals in a just and ethical manner. Haranahalli
Ramaswamy Institute of Higher Education, Hassan 30
1. 31. Inventory Management • To provide every opportunity to our business associates and
employees to realise their potential to the fullest extent. • To blend modern technology
with traditional values in our endeavour to be a world class, Indian company globally.
3.3.2.Objectives • To be India’s leading textile group and a world class entity. • To
continue and expand the leadership position in uniforms/ workday materials. • To
consolidate and expand in the household material sector. • To reinforce and expand the
position in shirting and prints. • To enter made-ups and value added products. • To
expand exports to 20% of group activity. • To enter retailing of apparel and soft goods
country-wide in a big way. • To become a global player in textiles. 3.3.3. Quality policy
We are committed to be a world class company by consistently designed and
manufacturing suiting to the highest standards and customer expectations. We shall
operate in a just and ethical manner providing opportunity to employees and associates
to realise their potential to the fullest extent. We are committed to comply with ISO 9001
and for continual improvement of the quality management system . Haranahalli
Ramaswamy Institute of Higher Education, Hassan 31
2. 32. Inventory Management 3.3.5.Products and services Fabrics Reid & Taylor
manufactures a wide range of Worsted and Premium suitings including: • All Wool
Superfine • Polywool Blends • Wool Cashmere Blends • Wool Linen & Wool Silk
Polyester Blends • Polyester Viscose Blends • Polyester Viscose – worsted • Value
added Polyester Viscose blends • Wrinkle resistant suitings • ECOFRESH suitings
Apparel In the ready to wear segment, Reid & Taylor has launched • Suits • Jackets •
 Trousers • Shirts • T-Shirts • golfing Haranahalli Ramaswamy Institute of Higher
Education, Hassan 32
3. 33. Inventory Management 3.3.7.SWOT Analysis Strengths • Outstanding brand equity. •
30,000 strong retailer networks all over the country. • Professional management with
entrepreneurial outlook. • Excellent track record in business administration. Haranahalli
Ramaswamy Institute of Higher Education, Hassan 33
4. 34. Inventory Management • Broad market coverage. • Good materials management
systems. • Human resource competencies. • Appropriate organizational structure. •
Management support. • Work union support. • R&D skills. • Technology used. • 25 retail
shops. Weakness • Depend on single supplier for some materials. • High cost for
procurement of wool. • High cost for procurement of polyester. Opportunities • Expand
core business(es). • Widen product range. • Expand into foreign markets. • Seek fast
market growth. • Government support. Haranahalli Ramaswamy Institute of Higher
Education, Hassan 34
5. 35. Inventory Management • Support from banks and financial institutions. • Investors. •
Overcome barriers to entry. • Enlarge corporate portfolio. • Technical collaboration with
Reid & Taylor Scotland. Threats • Increases in domestic competition. • Increase in
foreign competition. • Changes in economic factors. • Downturn in economy. • Strong
competition from Raymond. Chapter 4 analysis 4.1. Stores procedure Chart4.1. Chart
showing Stores procedure Material receiving Haranahalli Ramaswamy Institute of Higher
Education, Hassan 35 Supplier Receiving stores Inspection Rejection b
7. https://www.slideshare.net/hemanthcrpatna/study-on-inventory-management-conducted-
at-reidtaylorindialtd