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Cotton fabric, gold and spices were the main attraction for the Britishers and other countries to come to India. Textile industry is flourishing since the olden days even when the markets were in unorganized nature. But the present scenario of textile industry is facing a fluctuating trend due to increase in oil prices and inflation in the world market. Garden silk mills Ltd is one of the leading producers of the polyester cloth and fabric and clothing. It is renowned all over the world for its cloth. Garden as a brand is popular in the world markets as well as in the Indian markets. Garden sarees and dresses are popular among the women as well as younger generation. At Garden I studied the working capital management. The working capital is very important for the profitability of the company as if the working capital is managed well then the company avoids itself from liquidity crunch. The working capital requirement for the year 2010-11 is Rs. 15702.17 lakhs. The company manages its working capital requirement on fund as well as non-fund basis. For non-fund basis the company uses the letter of credit and bank guarantee. The company’s debtor turnover ratio is 15-20 days which is considered good while the company’s creditor turnover ratio is also 15-30 days which is also good but the company should match both the creditor and debtor ratio so that the liquidity problem does not arise while making payment to the creditors. The company depends on bank finance and internal sources for meeting the working capital requirement needs. But the company can also under channel financing as it is an innovative method of fulfilling the working capital requirement needs.
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CHAPTER 2 BACKGROUND OF THE INDUSTRY
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2.1 OVERVIEW OF THE INDIAN TEXTILE INDUSTRY
Progressive measures are critical for the survival of textile industry in the modern era. Automation can help and so the stakeholders in textile industry should welcome it with open arms. Indian textile industry has seen both ups and downs. There were days when Indian cotton was in great demand in London and the British government had to pass acts to save Manchester cotton from competition with Indian cotton. It was felt that British intervention, both in England and India, was responsible for the collapse of Indian textile industry in the early 20th century. But, this was largely because of the cost-reducing technological innovations in English textile mills, which badly affected Indian textile weavers. After years of observations and sailing through tough waters, stakeholders in Indian textile industry have realized that for the industry to grow, technological advancements are required. Today, textile industry is one of the healthiest segments in the Indian economy and contributes to the tune of 4% to our GDP. At present, the weaving sector has about 19 lakh shuttle looms across India. The number of shuttle-less looms is about 50,000; most of them have been set up through incentives provided under the TUF scheme, offered by the Ministry of Textiles. As mentioned earlier, international competition makes it necessary for the textile industry to adopt technology to survive. Today's weaver needs to ensure that he is able to manufacture and supply the finest quality of fabric, at the lowest cost, within a shorter time period. Automation is the only way to achieve this objective.
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2.2 CHALLENGES FACED BY THE TEXTILE INDUSTRY
Some of the major challenges that our textile industry faces today include organizational flaws in weaving and processing, a fragmented and scientifically backward textile processing sector, and infrastructural logjams in terms of power, road transport etc. After identifying the key issues troubling the industry, efforts were made to do away with them. The government came out...