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1. INTRODUCTION The Indian textile industry, until the economic liberalization of Indian economy was predominantly an unorganized industry. The economic liberalization of Indian economy in the early 1990s led to stupendous growth of this Indian industry. Now Textile industry is the most prominent industry in India as it supplies cloth to the populations. It also assists for the survival of other small scale industries. Textile industry has shown its major growth in the post quota regime under the WTO agreement. Textile accounts for 14% of the total Industrial production and contributes nearly 30% of the total exports. Textile is a key contributor to GDP to the order of 4%. The intense global competition in textiles has stimulated cost-cutting measures and new investments that have significantly increased the efficiency of transforming cotton fiber into yarn. Continuous improvement in production, waste reduction and productivity would automatically lead of success of the enterprise. The Spinning Industry in India is on set to hit the global market with other fabrics as well like the cotton textiles with its enthusiasm and consistency in work. It has already reached a phenomenal status in India by beating the obstacles that caused a downfall since past few years and is now on its way to cover a wider area in the spinning sector. 2. STATEMENT OF THE PROBLEM Indian Spinning Industry has gone from strength to strength since a very long time now as it was the hub of cotton manufacturing. Cotton is not only consumed to the highest extent in India but it has also become one of the most profitable textiles in the export industry. The productivity in case of spinning mill is confined to gms per spindle shift. An elaborate and detailed assessment is made on various sectors of the yarn spinning such as, production, consumption, and materials. Everyone should try to get increased production at the least possible cost. For this purpose it is necessary to find the behaviour of the production, raw material and yield .Tuning this well would enhance the productivity. On the other hand the costs associated with the production should also be evaluated to achieve the production with the least possible costs. It is necessary for everyone to improve productivity as well as profitability for their survival in the global economic crisis. It is right time to find solution to this type of problems. __________________________________________ 1 Dean, School of Commerce, Bharathiar University, Coimbatore Tamilnadu State, India. E-Mail: drganesanbu@rediffmail.com 2 Associate Professor of Commerce, Salem Sowdeswari College, Salem. Tamilnadu State, India. E-Mail: dhanapal.c@gmail.com 2
3. OBJECTIVES OF STUDY The following may be taken as the objectives of the study: 3.1. To find the relationship between production and raw material consumption and yield. 3.2. To find the association between Spinning production and costs. 3.3. To predict the spinning production using Cobb Douglas production function. 3.4. To offer plausible suggestions for improvement in cost and efficiency. 4. REVIEW OF LITERATURE 1 Imran Sharif Chaudhry et al (2009) have made study on “Factors Affecting Cotton Production in Pakistan: Empirical Evidence from Multan District”. They examined the factors affecting cotton production. In that study Cobb-Douglas Production Function was used to assess the effects of various inputs like cultivation, seed and sowing, irrigation, fertilizer, plant production and labour cost on yield. 2 Moosup Jung, et al (2008) made a study on” Total Factor Productivity of Korean Firms and Catching up with the Japanese firms “.They measured and compared the TFP of both Korean and Japanese listed firms of 1984 to 2004.They used the Chain Linked Index Number method developed by Good et. al.(1999). They found that the average TFP of Korean firms grew about 44.1% between 1984 and 2005, with 2.1% annual growth rates. Industry was observed to be outstanding. 3 Danish A. Hashim made research on” Cost and Productivity in Indian Textiles” for Indian Council for Research on International Economic Relations. His observations and findings are: There is an inverse relationship between the unit cost and productivity: Industry and States, which witnessed higher productivity (growth) experienced lower unit cost (growth) and vice - versa. Better capacity utilization, reductions in Nominal Rate of Protection and increased availability of electricity are found to be favourably affecting the productivity in all the three industries. ___________________________________ 1 Imran Sharif Chaudhry, Muhammad Bashir Khan ( Bahauddin Zakariya University Multan,Pakistan ) and Mumtaz Anwar(University of the Punjab, Lahore, Pakistan)-“ Factors Affecting Cotton Production in Pakistan: Empirical Evidence from Multan District”- Journal of Quality and Technology Management, Volume V, Issue I1, Dec, 2009, pg. 91-100. 2 Moosup Jung, Keun Lee( School of Economics, Seoul National University korea) and Kyoji Fukao (Hitoshubashi University, Japan )- Total Factor Productivity of Korean Firms and Catching up with the Japanese firms- Seoul Journal of Economics, vol 20,no 1, March 2008. Gokhale 1992 in Cotton Mill Sector', Productivity, January- March. 3 Danish A. Hashim (2004)- cost and productivity in Indian Textiles- Indian Council For Research On International Economic Relations. Multan District” Journal of Quality and Technology Management, Volume V, Issue I1, Dec, 2009, pg. 91-100 3
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operational analysis of a select spinning mill - International ...

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