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Internship Report
Submitted by Heena Khanna in Partial Fulfillment of
the Requirements for the Diploma of PG in Fashion
Merchandising
June- July 2010
B & T Department
Date of Submission

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¦cknowledgement

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Declaration

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ontents

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^stablished in 1977, Richa Group is a name to reckon with in the garment

industry. Within a short span of time, it has positioned itself as a global
organization with a distinctive identity. The Group has a remarkable presence
in the readymade garments export industry including woven, knitted, leather
garments and home furnishing.

Today, Richa Group is equipped with 18 fully integrated manufacturing units in

Delhi, Gurgaon, Noida and Bangalore along with a textile mill in Tiruthani. It
stands tall with US $ 130 million turnover. Making use of the latest
technologies through its competent professionals, the Group is setting new
benchmarks in the industry. It fosters an organizational culture. ¦ workforce
comprising of 15000 professionals is leading the Group to newer heights.

Richa Group aims to be a paradigm of perfection. It upholds the world -class

standards in all of its processes. The Group will leave no stone unturned to
achieve the best at all levels of its operations. The aspirations of the Group
attain fulfillment in its outstanding performance. It has established strategic
relations with the clients from all over the world.

Richa Group has been in the forefront of the industry complying with the
customer's requirements following government laws and regulations. Today, it
is seen as a hi-tech, customer friendly, eco-responsive corporate citizen that is
shaping a better tomorrow for everyone.

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^xport Performance hart:

Through a wide range of high fashion garments for men, women and children,
Richa Group has marked a distinguished presence in over fifteen countries
including US¦, UK and anada. In the leasing retail outlets around the world, the
products of Richa Group are flaunting the latest fashions. Wit h over two decades of
presence as a major Indian Government Recognized Trading House in the
international fashion apparel market, Richa Group has become a widely admired
name. The turnover for the present financial year is US $125 millions. With an
increase in the manpower & resources, company·s profits have also tremendously
risen which can be studied from the following performance chart, manpower &
resource list.
Quality plays the key role in the business expansion of any corporation. It·s the
core of a business for what it gets acceptance and credibility amongst its clients.
¦ll possible measures are taken at Richa Group to maintain the world -class quality.

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The brands manufactured at this unit are :

1.c ¦bercrombie and Fitch

2.c hico·s

3.c Nordstrom·s

4.c Next

5.c River Island

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Manpower:

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c ¦ccessory Store 13

c ¦ccounts 10

c ¦dministration 43

c omputers / ^.D.P 2

!c utting 67

"c Documentation and Shipping 1

#c ^mbroidery 2

$c Fabric Store 25

%c Finishing 222

&c Issue Receiving 21

c Kaj Button 18

c Maintenance 14

c Merchandising 17

 cc Packing 22

!c Personnel 4

"c Production Planning 2

#c Purchases 5

$cc Sampling 93

%c Sewing 43

&c Sewing (hecker) 42

c Sewing (Dispatch) 7

c Sewing ( Helper) 168

c Sewing (Operators) 599

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Being a vertically integrated unit, Richa & o. has to be efficient in
coordination amongst its various departments. The process flow at Richa & o.
is as follows:

The R & D Department develops new styles and showcases them in the
showroom. The Buyer/ Buying ¦gency selected the styles from the showroom,
and either same or a modified version of that style is passed on the
merchandiser for sampling.

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The samples made are sent to Plus Impact, and then to hico·s. The comments
on the first sample are reworked, and more samples are sent till the final
approval. Various approvals are sought before the final order comes from the
buyer. Once the order is received, the merchandiser orders the fabric and
trims and hands over the file to the production department .

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Once we get a style, the merchandiser checks

1.c 5¦..).'0c The merchandiser goes through the sample,

development ,fabrics, trims, embellishments and
understanding the style been provided by the buying house or
the buyer and see that the design advised by them is feasible
to make or it needs some changes and discuss it with
technicality.
c,(5.+¦'.(ccBuyer will reconfirm all details are ok,
then the manufacturer proceeds into sampling, the status
report of the work should be send to the buyer in intervals so
that he knows the progress of his work.c
c/2/(4,'.(c¦+/) Pre- production or sealing sample
is been made, these samples are been made in bulk fabric
with correct trims, embroidery, correct label and size etc.
This is basically the finalised pattern to be used for
production without the approval of the sample production
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!c¦+/)c5())(8c4/cThe most important tool for sample
follow up is TN¦ ( TIM^ ¦ND ¦TION ¦ ^ND¦R) c
Once, the sample gets approved, it is prepared.

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"c'.+c.c-(4c¦ soon everything gets approved the trims

are In-house immediately, the basic trims such as thread and
all needed to start the production. c
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With a tremendous growth over the years and having won many awards
like ´Wal-mart International Supplier of the Year 2006µ, Richa Group
has created a strong goodwill in the export market. Quality is
synonymous with its name and is highly trusted by the international
market.

The dynamic variety of fabrics used, the innovation in the work process,
and ability to overcome hurdles, makes it famous amongst the buyers.
The use of new and better fabrics for different season, for example: -
fair trade cotton, organic cotton has given more opportunities in
attracting the customers for bigger orders.

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Richa Group has had a record of timely deliveries in 97% of the cases.
This has made it famous amongst the buyers and earned more business.

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One of the other major strength of the organization is its Design cum
Product development team. Thus fresh ranges of garments are made
frequently leading to more business for the organization.
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Richa Group follows all the compliance policies in all spheres. This is a
one of the most important criteria that buyers look in for when they
contact a manufacturing unit. ¦ll areas: Social, Technical & Security are
looked in through the compliance team.
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This unit prides itself in making and exporting highly embellished garments of
good quality.

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Richa and o. has a highly qualified and experienced team of employees.

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The factory has a very well equipped sampling room, comprising of

i.c 2 utting tables

ii.c 3 Press men
iii.c In house embroidery room for dedicated to sampling only and a separate
section for hand embroidery
iv.c ¦D operated pattern making , even for proto samples
v.c Online checkers+ Q¦ dedicated for each buyer
vi.c Separate finishing department only for sampling.

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i.c apacity of washing over 3 lakh garments/ month.
ii.c an wash denim (all washes)
iii.c ¦bility to handle highly embellished and embroidered garments with
minimum rejection, due to washing tumbling process.

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The factory has all the state of the art and highly specialized machinery for all
processes. It is also supported by an up to date Industrial ^ngineering (I^)
Department.

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1.c Price:
Since the unit is dedicated towards producing highly embellished
garments, in an in-house embroidery setup, the expenses incurred are
slightly higher as compared to the basic garment price structure.

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2.c ead Time:

ead time is also an issue as the unit is doing embroidered garments;
hence the time factor fluctuates due to multiple reasons such as
absence of karigars, availability of machines etc.

3.c abour:
Problems caused due to labour are also a prime concern for the
company. ¦bsenteeism is the main issue, as around 60 to 70 labourers
and workers are absent every day. The workers are also prone to
opportunism, wherein they·re not loyal to the company, and are ready
to switch to another company as soon as they·re offered a slight
increase in pay. In spite of the lucrative incentive schemes provided a t
Richa, workers still switch.

yc Opportunities:

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¦s of now, Richa Group was more involved in the US market. Now as the
^uropean market is witnessed to have a potential growth, Richa Group is
venturing into new horizons. The infrastructure makes it possible for the
organization to focus on new markets without hindering the working of the
existing ones.

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With the emergence of globalization and removal of quota, buyers from all
over the world have started showing interest in India. For RIH¦ the main
market is U.S.¦ which source almost 60% of their imports from India so they
have a great opportunity to increase their business. c

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The emergence of special economic zones for textile and apparel give an
advantage to the export houses in terms of subsidies. The various subsidies
given to the exporters for setting up units in these areas are on capital,
electricity, freight , cheaper land , subsidy on the import of machinery etc
thus these subsidies helps in advancement of the exports and gives an
opportunity to the exporters to expand their business.

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There is a huge demand for Indian value additions like: Tie & Dye, ^mbroidery
(Hand & omputer), Sequence a nd beadwork, etc. Richa Group has
successfully provided its buyers all the above. ^mbroidery and adda work is in
house which makes it more feasible.

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¦s Richa Group is big and old organization, the dollar fluctuation does not
effect the business majorly. But if the fluctuation continues for a long period
of time, Richa Group has to think of some strategy beforehand. It should focus
more on the new market horizons in addition to its current efforts.
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Indian ^xports is seeing a downfall with increasing focus by the buyers on
countries like hina, Sri anka, and Bangladesh. These countries provide low
cost of production. For countries like hina, technology plays a vital role.
Frequently it comes up new technologies to serve its customers in a better
way.

3.c Increase in Minimum Wages

Since the /Minimum Wage egislation is going to be revised, then the
MT ( ut, Make, Trims) ost of garments is also going to rise, thus
affecting the final costing.

4.c hange in Government Policies:

yc Modification of the Tax structure.
yc Reduction in duty exemption and other schemes provided by the ^P
( ^xport Promotion ouncil)

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Richa & o., Udyog Vihar, follows the following laws as a part of compliance.c

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This ensures that there is no forced labour, child labour, harassment or abuse
of any kind against the labour.

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This act deals with the registration of a company as per set rules and
regulations. In addition to this the following is also followed:

´c leaning & disposing of wastes & effluents

´c Ventilation, Temperature & Humidity
´c Urinals & Spittoons
´c ¦void over crowding
´c Proper sitting arrangements
´c Readily available first aid boxes
´c Medical rooms
´c anteen
´c rèche
´c Notice displays
´c Maintaining Registers

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This act deals with the proper filing of insurance for the employees working in
the organization. For the same, Richa & o. maintains prescribed registers:
Register of employees, inspection book, accident book, etc.

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Richa & o. pays every employee engaged in a scheduled employment under
it, wages at a rate not less than the minimum rates of wages fixed for that
class of employees in that employment.
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If an employee works in excess of the normal working hours on any day, Richa
& o. pays him wages for the time worked in at double the rate of his usual
working hours.

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This is basically done to ensure security. It ensures that the products leaving
the factory are packed duly for privacy purposes, a proper security team is on
duty, doors are locked at night, TV·s are installed throughout the building
etc.

¦t Richa & o., a challan is carried by the carrier of the goods outside the
factory premises. The guards at the gate match the goods with that mentioned
in the challan.

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This is to enable the buyer as an assurance that the products so possessed by

them are from the same company from where they had ordered.

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¦ 500 page manual is followed by Richa & o. for hico·s Production. This
manual contains everything from pictorial representation of measuring
garments to the details regarding the packaging, shipping guidelines, textile
inspection, raw material, finishing etc. hico·s lays stringent rules &
regulations which Richa & o. has been successful in maintaining.

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