Review And Study On Oswal Textiles Ltd Commerce Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Oswal group is a premier Textile Group of India having its Corporate Office at Ludhiana, Punjab. The Group has existence for last 40 years with core competency of Spinning. It was earlier part of Vardhman Group but after family settlement between two brothers in 2003, it is known as Oswal Group.The Projected turnover of the Group is INR 500 Crores (US $113.64 millions) at its full scale of operations. chairman & md of oswal textile is Mr. Ashok Oswal .The oswal group is in the process of expanding the spindles capacity, establishing knitting & garment business in a big way. The group has also an arm for retailing under a separate company namely Oswal Retail (P) Ltd. It has setup 35 stores and plans to have 135 stores by2008. The Oswal Group steps into 2007 to combat post quota situation and to face the competition from the global players. It will continue to strive to be technology driven and customer oriented all the times. Oswal and vardhman was earlier together vardhman. Vardhman textiles (erstwhile mahavir spinning mills) is a leader in its sector, with 550,000 spindles offering the widest product range in cotton and blended yarn in India. It is the second-largest company with an 18% market share in sewing threads. The company has a vertically integrated business model, giving it a significant presence in fabrics (20% of FY07 revenues). It is also present in special and alloy steel hot rolled products and is a vendor to OEMs in the automotive and engineering space. Its superior quality and wide product range in higher-value-add products make it a preferred supplier to domestic and international manufacturers in textiles and apparels. Direct exports contribute 21% of revenues, excluding the sales to exporters. It is the flagship company of the SP Oswal Group, with the major shareholders owning a 62%.


* Vardhman Polytex Ltd.

* Oswal F. M. Hämmerle Textiles Ltd.

* Oswal Retail Pvt. Ltd.

* AM Kryon International Pvt. Ltd.


The Rs 250-crore Oswal Group, which has interests in spinning yarns, branded apparel and textiles, has embarked on a new growth path. The group has recently made a foray into setting up a multibrand intimate wear retail chain which is a first of its kind effort in the country.The group has floated a subsidiary company Amram Trading Ltd which will exclusively handle the operations of the intimate wear retail chain in the country .Called Sensa, the chain will showcase all leading innerwear brands like Triumph, Lovable, Vanity Fair, Enamor along with its own in-house brand Sensa. The showroms will showcase everything from lingerie to nightwear to maternity wear and thermals.Says Amram Trading managing director Adish Oswal, the company has plans to set up 120 showrooms by 2008-09. The group has been aided by consulting firm KSA Technopak which estimates the current size of the intimatewear market at Rs 2,000 crore.“The marketsize growth will be as high as 70% by 2009, according to KSA Technopak. Moreover, the growth of the lingerie market in India has been aided by new retail space with the rise of malls and emergence of organised retail formats. We have selected 30 towns across the country where we will makea splash soon,” Mr Oswal says.The Oswal group is betting on superior customer relationship management (CRM) initiatives as as the key differentiator in its endeavour. “We are putting a lot of thrust on staff training which we have developed in-house. The unique feature of the stores will be the human touch,” Mr Oswal says. The stores will sell innerwear ranging from Rs 60 to Rs 3,000 and in all will have 16 brands on display.For instance, the group proposes to put in place professional counsellors to advise customers to pick up the ‘right' product. The showrooms will be complete with trial rooms to facilitate buying and also have various loyalty programmes to generate customer “pull.” The company's research into the lingerie market also pointed out that women's innerwear is the highest growing apparel item across income groups which has been trigerred by an increasing realisation of self-grooming.The study also says that lingerie sales have picked up by 35% in the last two years. Moreover, women are uncomfortable with male sales staff in the showrooms which Sensa plans to address by employing female staff only.The Oswal group recently opened its first Sensa outlet...


Oswal textiles has a number of employee benefit schemes that go much beyond what is legally mandated. One of these is the ‘post retirement non-contributory pension', which was launched in 1986 as a platinum jubilee gift for unionised employees. Some of the other employee benefit options in this category include the Family Hospitalisation Assistance Scheme, Welfare Assistance, Accident Relief, Emergency Relief, supply of uniforms to all unionised employees, and in some locations, also to management staff. Oswal textiles also offers Housing Loan Assistance, Educational Assistance and coaching classes for employees' children at Munger, Saharanpur, Chirala, and Anarparti, career guidance for employees' children at Kidderpore and the Head Office in Kolkata .Recreation Clubs have been set up at Bengaluru, Kidderpore, Munger, Bhadrachalam, Tribeni and all ILTD locations. There are oswal textiles -aided schools in remote locations like Tiruvottiyur, Munger, Saharanpur, Tribeni and Bhadrachalam. Oswal textiles of has set up subsidised canteens in factories and other establishments and co-operative stores at some of its locations. Co-operative societies in most oswal textiles establishments promote thrift and provide loans on nominal interest charges. Oswal textiles Welcomgroup runs a premier hotel management institute, the Welcomgroup Graduate School of Hotel Administration at Manipal in Karnataka. It is run in association with the Dr TMA Pai Foundation, affiliated to the Manipal Academy of Higher Education (MAHE), a deemed university. The institution runs a 4-year Bachelor of Hotel Management programme and is considered a leader in this field. Oswal textiles's Hotels Business also runs the Welcomgroup Hotel Management Institute at Gurgaon, near Delhi.


• Social Security

- Social security benefits include the general benefits like unemployment insurance & benefits, old age insurance, and Medicare facilities.

• Workers' Compensation

- Worker's compensation includes the compensation when an employee becomes injured or disable due to extreme working conditions or while working at the job site.

• Family & Medical Leave

- Family leave includes the compensation continuation during the family leave such as maternity or paternity leave and other family leave.

• Old age, Survivor , Disability Insurance requirements for getting compensation:

- Earn 40 quarters of credit, or

- Be employed for 10 years

- Be age 62 for partial benefits

- Be age 65 for full benefits

- Now the age has been extended to age 67 because more and more workers are retiring late.

- Widow aged 60 +


Depends on the country's policy, medicare facilities are generally government services to citizens. Organizations add some value to medicare facilities. In some countries medicare is financed together by employees' tax, employers and the government.

Provided insurance coverage for

* Hospitalization - Covers inpatient & outpatient hospital care & services.

* Major doctor bills - Charges of visiting a doctor or specialist.

* Prescription drug costs.

* Provides unlimited in-home care in certain situations.


Workers' compensation is a legally required benefit is included in the compulsory disability laws of many countries. Mostly, employer is seen liable regardless of the fault.

Objectives of Workers' compensation:

* Provide income & medical benefits

* Reduce litigation

* Eliminate legal fees & time

* Encourage employer safety

* Promote accident study & avoidance


* Injury

* Occupational disease

* Death


* Medical services

* Disability income

* Death benefits


Discretionary benefits are judgment based benefits that the organization provides to its employees. These benefits are not legally required benefits but enhances organizational culture and corporate image.

Benefits include:

* Protection programs

* Pay for time not worked

* Other services

Pay for time not worked

• Holidays

• Vacations

• Funeral leave

• Marriage leave

• Sick leave

• Stress leave

• Blood donation or welfare work

• Personal leave

• Sabbatical leave/ For Muslims, leave after death

• Other religious leaves such as pilgrimage or preaching


This benefit should cover pregnancy, confinement and their consequences resulting in the suspension of earnings. Provision should be for medical care, including pre-natal confinement, post-natal care and hospitalization if necessary. Periodical payment limited to 12 weeks should be made during the period of suspension of earnings.

Invalidism benefit

This benefit, in the form of periodical payments should cover the needs of workers who suffer from any, disability arising out of sickness or accident and who are unable to engage in any gainful activity. This benefit should continue till invalidism changes into old-age, when old age benefits would become payable.


This should cover periodical payments to the family following the death of its breadwinner and should continue the entire period of contingency. The ILO has suggested various methods of organizing, establishing and financing various social security schemes. For the benefit of the less developed.


· Voluntary welfare measures

These are various welfare amenities provided to the employees by the employer and by the employer's organization.Valuing its people as a great asset, Oswal is committed to their development, both in order to benefit the individual and to benefit the Company through increased knowledge and skills. In order to leverage maximum potential of human resource to achieve business objectives the Company recognizes that enrichment of people will help retain a motivated workforce in a competitive environment

The statutory welfare schemes include the following provisions:

1. Drinking Water: At all the working places safe hygienic drinking water should be provided.

2. Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided.

3. First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee.

4. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition.

5. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees.

6. Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition.

7. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts.

8. Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places.

9. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes and belongings.

10. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.


1. Secretariat - Social Services - Provides for expenditure on secretariat of the Ministry.

2. Research & Statistics - Provides for collection and publication of statistics, conducting enquiries, surveys and research studies on various labour subjects.

3. Industrial Relations - Provides for expenditure incurred in connection with promotion of harmonious industrial relations and speedy implementation of labour laws, awards and agreements, laying down code of discipline, etc. for improving industrial relations to regulate wage and other conditions of work and for conducting evaluation studies of implementation of labour laws, industrial relations.

4. Working Conditions and Safety - Provides for Directorate General, Factory Advice Service and Labour Institutes which together are responsible for the safety, health and welfare of the dock workers and factory workers.

5. Labour Welfare Schemes - Provides for schemes for welfare of Beedi workers, labour working in Mica Mines, Iron, Chrome, Manganese Ore Mines (excluding coal mines workers), Limestone and Dolomite Mines, Workers and Cine Workers. Expenditure is met out of cess levied and collected under the respective Labour Welfare Acts, which is transferred to Reserve Funds in the Public Account.

6. Net Transfer to/from Labour Welfare Funds -Represents the difference between the transfer proceeds of cess to various Labour Welfare Funds and the expenditure on Labour Welfare Scheme met from these Funds.

7. Employees Pension Scheme, 1995 - The new scheme provides for family pension and life insurance benefits to Industrial Workers. The provision is for the Government's contribution to the new scheme.

8. Family Pension-cum-Life Insurance Scheme for Plantation Workers in Assam, Deposit Link Insurance Scheme for Tea Plantation Workers in Assam - Family Pension-cum-Life Insurance Scheme for Plantation Workers and Deposit Link Insurance Scheme for Tea Plantation Workers are administered through the State Government of Assam in respect of plantation workers in Assam, who are governed by the Assam Tea Plantation Provident Fund and Family Pension and Employees Deposit Linked Insurance Act administered by the Government of Assam. The provision caters for Central Government's contribution to the scheme as also for the reimbursement of administrative charges.

9. Social Security for Unorganised Sector Workers - One of the major insecurities for workers in the unorganized sector is the inability of the workers to find money for medical care for themselves and their family members.

10. Central Board for Workers' Education - Central Board for Workers' Education, set up as a tripartite society by the Government of India in 1958, undertakes workers' education activities in pursuance of the recommendations of the Fifteenth Indian Labour Conference held in 1957.

11. Other Items - (i) This provision is to give impetus to the development of Information Technology to further improve the efficiency in the Ministry.

(ii) Strengthening of Enforcement Machinery and paymentof pension/compensation to workers and civilians for injuriessustained during war.

12. Employment - The employment schemes mainly cover employment market information programme, vocational guidance and employment counselling, employment assistance to certain selected category through Coaching-cum-Guidance Centres,Vocational Rehabilitation Centres for handicapped and also research and training in employment services.

13 Training: Under this item provision for the following schemes have been made:-

1. Hi-Tech Training - The Central Sector Scheme is aimed at developing new generation of workers for the Hi-Tech disciplines, both in operation and maintenance.

2. To provide training to out of school youth, workers, ITI graduates etc. : For improving their employability by optimally utilising infrastructure available in ITIs/Industrial Training Centres (OSWAL TEXTILES's) and other organisations. The Scheme will cater to the needs of all those who want to acquire skills or upgrade them to improve their employability. Existing skills of the persons can also be tested and certified under this scheme. Emphasis would be given to the courses that cater to the needs of unorganised economy.

3. Other Schemes - Provides for the Director General of Employment & Training, which is the apex organisation in India responsible for the development of programmes relating to theemployment service and vocational training. In addition, a number of minor schemes relating to training and employment are being implemented by the Director General of Employment & Training

14. Welfare of SC/ST - The scheme includes Coachingcum- Guidance Centres for SC/ST to provide confidence building training programmes and vocational guidance for candidates belonging to that category..


Oswal undertakes several welfare schemes like education, medical, transport, housing etc., according to the needs of the employees. In regards to sports, oswal is a prominent patron and sponsored various sports events. Football, Cricket, Hockey, Kabbaddi and other teams continue to show excellent performance at District, State and National levels and have brought laurels to oswal by winning several prizes


Employee benefits & services were formerly known as fringe benefits and these benefits were primarily the in-kind payments employees receive in addition to payments in the form of money.In addition to paying employees fairly and adequately for their contributions in the performance of their jobs, organizations assume a social obligation for the welfare of employees and their dependents Employee benefits are usually inherent components of the non-compensation system are made available to employees that provide:

- Protection in case of health & accident

- Income upon retirement & termination

These benefits are components that contribute to the welfare of the employee by filling some kind of demand.

Case study



Construction industry occupies a pivotal position in the nation's development plans. It is the second largest contributor to the Gross Domestic Products after the agricultural sector. It provides substantial employment and growth imputes to other manufacturing industries such as cement. Chemicals, bricks paints, bitumen, etc About 2.8 crore in organized sector and about 27.7 crore were employed in unorganized sector. There are 1.7 crore workers building and other construction workers in India these workers are one of the most numerous and vulnerable segment of the unorganized sector. Young, married, illiterate and unskilled male's dominant construction labour. Participation of female unskilled workers in the construction industry is about 30% of the total workforce. The article critically analyses the working conditions, welfare and other protective provisions under various enactments. These legislations lack in effective implementation. The Comprehensive legislation pertaining to construction workers is the need of the hour. This article discusses the ground realities/conditions of these workers. Based on the study certain guidelines for promotion and protection of these workers are suggested.

Working Conditions of construction workers

Workers are exploited because they are socially backward, unorganized, uninformed, and poor. Workers mostly comprises of landless labour move to cities in search of works, where these exploited by Contractors. Moreover their work is also characterized by its casual nature, temporary relationship between employers and employees, lack of basic amenities and inadequacy of welfare facilities. The extent of unionization in thecrèche facilities are available. The social protection is virtually non-existence due to lack of stable nexus between employee and employers; inability of employment, uncertain earning of workers and irregular duration of work. Wages in the industry are large at minimum or sub-minimum level. Women and children are paid wages at comparatively low rates as compare to men. A system of bondage exists and gets extended from one generation to the next child labour.There are some special legislative provisions to protect the interest of construction workers, such as The Building and Other Construction Workers (Regulations of Employment and Conduct of Service) Act, 1996, the Building and Other Construction Workers Cess Act, 1996, the Contract Labour Act, 1970, the Inter State Migrant Labourers of Employment Conditions of Service Act, 1979. Construction workers do not get benefit under the Employees State Insurance Act 1948, but are covered by the \Workman Compensation Act, 1923. Employees normally prefer to avoid implementing. The industry employs sizeable women workers largely unskilled. The Maternity Benefits Act 1961, applies the number of benefits is likely to be limited due to the intermittent nature of employment.


Passing of legislations alone doesn't take care of everything. The enforcement agencies must intensify its implementation in the practical aspects. The ground realities are quite different from the legislative aspects. Mainly it is due to ineffective enforcement mechanism and lack of awareness among the workers about their rights and liabilities of employers under relevant statutes. There is a need for a unified legislation on construction workers that must provides, an independent enforcement authority for its enforcement at states as well as distinct level. Further the following labour welfare and social security measures are suggested for protection and promotion of interest of construction workers:


1. It should be mandatory for the contractors/ employers to provide shelters to the construction workers at work sites. Such shelters must also be equipped with sanitary facilities and drinking water availability. Municipal authorities should help them in making available the site for the purpose.

2. Contractors/employers should ensure that workers are provided with statutory minimum wage, specified by the respective State Governments, within first week of every month. Failing which interest may be charged according to prevailing' rates. There should be no discrimination for payment between male and female workers.

3. Contractors/employers should make arrangements for free balanced diet to all the workers at least, once in a day. An appropriate break for 30 minutes should also be given National Commission Rural Labour 1991

4 National Commission Labour, 2002to workers for' said purpose. These initiatives will certainly enhance the capabilities and efficiency of workers.

5. In case number of workers exceeds 50 workers an ambulance equipped with first aid facilities should be made available at the work site. One specialist medical doctor should be appointed residing in the locality to attend any contingencies. In case civil hospital is located within perimeter of 05 kms, the said facilities may also be utilized in case of emergencies. Such appointment must be made prior to commencement of works and it must also be informed to Labour Commissioners in that area. Such appointed doctor should visit the work sites at least once in a week for the treatment of the worker preferably on holiday. The employers should provide medicines.

6. The employers should provide an appropriate crèche equipped with all facilities for children below the age of 03 years Crèche: where the number of married women is more than 10. Balanced diet for the children should also be arranged accordingly.

6. One senior worker among the workers should be nominated to coordinate between employers/contracts and to resolve dispute of general nature. Person so nominated can also look after the effective availability of welfare measures to workers. Such person should be nominated after consultation with workers. He should also be responsible to maintain these facilities.

7. Adequate drinking water and sanitary measures should be provided at the work site. Separate sanitation facilities for men and women are maintained. Drinking water point must not be with in 10 meters of sanitary facilities.

8. Some means of recreational activities like television; newspapers etc should also be made available. But these facilities may not be provided during working schedule.

9. Working schedule of the workers must be fixed between 8 am to 5 pm during summer season and

9 am to 5 pm during winter season. A lunch break between 1 pm to 1.30 pm must be given to the workers. Overtime wages at the double rate of normal rate be given. Weekly holiday should be provided to the workers, and if not possible compensation in lieu of that should be added to their payments.

10. Employers/contractors should also provide adequate means of light, water, electricity, road, and relevant facilities to the shelters provided to them. Contractors/employers should also provide transport facilities to workers form place of work to their residential complex.

11. Social welfare fund for construction workers may be set up in each district. Employers must deposit Rs. 25 per workers on monthly basis till the completion of work at a site. Further the workers should also deposit 25 per months to such fund. Employers shall make arrangements of such contributions. Loans may be taken from such fund after 07 years of contribution. The state government shall also contribute to such fund form its social welfare budget. The total amount along with interest may be withdrawn aftercompletion of 20 years contributions. Pensionary benefits may also be provided out of such fund, after 15 years of contributions to such fund. State government may frame rules for pensionary benefits.


1. Contractors/employers must ensure that all the workers working at the site be insured for one lakh rupee. The period of insurance cover shall be available up to the completion of work at a site. The said amount of insurance paid by employers and shall be returned to the employers after completion of works. Such insured amount should be given to the dependents of workers.

2. Medical facilities for workers may be entertained from Employees State Employees Scheme. Workers and employers should contribute to this scheme at the rate of Rs. 25 per month. The Scheme may be amended to provide for special contribution provisions on construction workers.

3. Maternity benefits for the period of 04 weeks should be given in case of delivery, miscarriage, or sickness arising out to pregnancy two weeks prior to delivery and two weeks after confinement. Maternity bonus of Rs. 2,000 should also be provided to such women, in case medical facilities are not provided by the contractors/employers.. Rs. 2,000 for funeral expenses should be paid to the next of kin of the workers, in case of death of any worker at the site.

4. Compensation for death and disablement must be provided by the respective employers for the incident arising out of and in course of employment. Rs. 1.25 lakh for death and 1.5 lakh for total disablement (ranging from 50 to 100 percent disablement) and 1 lakh for partial permanent disablement (below 50 percent disablement) should be padis to the affective worker. The ESI hospitals doctors should decide the rate of disablement.

6. Employers/contractors should give bonus amounting Rs. 2000, where the workers have been working more than one year.

7. Employers/contractors must ensure that workers between 14 and 60 years of age should be only employed for work. Construction workers should also be screened for health before the work commencement

8. A safety culture needs to be developed as an integral part of the work culture. The supervisors should brief workers every day before commencement of week pertaining to risk factors involved and precaution to be taken while working. Safety equipments like helmets etc, must be provided by the employers. One Safety officer should also be appointed where 150 or more workers are employed.


* The more vulnerable among the construction workers (such as the poor, the disabled, the infirm, the chronically sick and those without family support) may be identified and special welfare schemes may be instituted for them on a priority basis as in the case also it the position of workers is clearly shown so the workers basically of unorganised sector should be provided with the benefits.

* There is crying need for reformulating the benefit package and strengthening its sources of contribution in order to make the Fund totally self-financing. Unless corrective measures are taken, Oswal would face serious financial consequences in the very near future.

· The contribution of employers / contractors should be substantially enhanced from their existing levels.

* Government should also take steps to improve the legislations of the workers in order to help the workers.


Labour welfare is welfare accorded to labour. Welfare Funds are raised by levying cess on production, sale or export of specified goods, or by collecting contributions from various sources including employers and employees, as well as the Government, and are used for meeting expenditures on the welfare of workers. Social security benefits are given mainly in the form of provident funds, paid to workers on superannuation, monthly pensions, and gratuity. Social insurance is given in the form of ex gratia payment in the event of disability or death; a modest payment is made in the event of treatment for ill-health. Welfare assistance consists of financial assistance for housing, education of children, and marriage of daughters. These programmes will have to be developed to promote family values and sensitise the young generation on the necessity and desirability of inter-generational bonding and continuity.


* http://www.tfjbp.Oswal


* TEXTILES%20PWA/4.AIOSWAL TEXTILESPWAjanuary10circular.doc