Swot Analysis Of Vardhman Textile

Assignment -1

Submitted by- Amandeep Singh

331604

Company name- vardhman textiles

Executive summary.

Textiles holds 14% of India’s industrial production and approx 22% of its exports earning. Industry uses a broad range of fibers ranging from natural fibers to manmade fibers. The company provides direct employment to estimated 35mn people by contributing 4% of gdp and 14% of value addition in manufacturing sector. Almost all sectors of textile industry have shown their tremendous achievement. This industry is the second largest employer after agriculture sector in both urban and rural areas.

Company background.

Vardhman group had setup in 1962 and started in 1965 in Ludhiana with a spinning mill and with an installed capacity

India is the second biggest maker of materials and articles of clothing on the planet. The Indian materials and clothing industry is relied upon to develop to a size of US$ 223 billion by 2021, as indicated by a report by Technopak Consultants. This industry represents very nearly 24% of the world 's axle limit and 8% of worldwide rotor limit. Bounteous accessibility of crude materials, for example, cotton, fleece, silk and jute and also gifted workforce have made the nation a sourcing center point

The materials business has made a noteworthy commitment to the national economy regarding immediate and backhanded work era and net outside trade income. The part contributes around 14 for each penny to modern creation, 4 for every penny to the total national output (Gross domestic product), and 27 for every penny to the nation 's outside trade inflows. It gives direct work to more than 45 million individuals. The materials area is the second biggest supplier of vocation after horticulture. In this manner, development and all round advancement of this industry has an immediate bearing on the India 's change

The vardhman group is earning most of their cash from the operating activity only.

2. Cash from operating activity- As per the statement it can be observed that in the year 2012, the cash inflow is 930cr approx and in the coming year it badly decreased to 264.cr and following in 2014 the net cash inflow increased to 718cr approx that means company has fund to full its day to day requirements.

3. Cash from investing activity- In the year 2012 , the statement shows a very negative balance and in 2013 it has increased a bit i.e. approx 40cr increment and then after in 2014 it again decreased badly to -690cr. That means the company was doing a lot of investment in the 2014 investment may be in purchase fixed of fixed assets. Therefore it shows the negative balance.

4. Cash from financing activities-In 2012, the statement shows a negative balance that means the company has borrowed a lot from the bank, and in the year 2013 a major recovery was made by the company and then the net cash inflow increased figure-168.cr. And in the yea2014 the statement again shows the negative balance.

5. Therefore the company is incurring the losses in every year as per the cash flow statement for the year 2012-13-14. And the cash and cash equivalent is decreasing every