Madura Coats Pvt.Ltd.

COMPANY PROFILE:

Coats India the Indian subsidiary of Coats Limited is head quartered in UK. The company manufactures thread and trims with operations in 66 countries and sell them to all the apparel and footwear manufactures Coats Limited is a large company with a history of successful operations in the thread industry and revenues of US $1.5 billion annually. The highest volume of thread is manufactured in India. Coats India, the Indian arm of Coats Limited also handles export to the Middle East, as well as the sales and marketing for the region.

Madura Coats Private Limited is the 100% owned subsidiary of J&P Coats Plc, a UK based company, having located its Registered office at New Jail Road, Madurai – 625001, Head Office is located at 144, MG Road, Bangalore - -560001. presently Mr. Joe Remedios is the Chairman and Managing director of the Company. The Company is presently manufacturing and supplying thread and accessories since 125 years in the domestic and international markets. It is controlling its business by dividing its operations inti two divisions viz

Global Thread Supplies of India which is being headed by Sri O.P.Yadav and

Coats India which is being headed by Sri Ashok Mathur.

Global Thread supplies of India (GTSI): GTSI is division of MCPL, looking over the activities of manufacturing and supply of grey thread. Coats India is looking over the activity of distribution of different types of thread and also marketing the products like machine needles used by garments industries. There are 4 Manufacturing units, which are located in different states of India.

Manufacturing Units:

Ambasamudram in Tamil Nadu State.

Ponali in Gujurath State.

Serampore in West Bengal State.

Tuticorion in Tamil Nadu State (Finishing Unit).

Coats India: Coats India is one of the divisions of Madera Coats Pvt Ltd. It is having its Head Office at H – 85 Old Madras Road, P.B.NO.1600, Bangalore – 560016. It is mainly supplying the different types of threads and accessories in the domestic and international market. In the domestic market it is rendering its distribution services to its customers through their branches spread all over the country in different states.

Coats’s  major customers include all garment, leather and other industries. It’s customers also includes consumers consisting of wholesale dealers, semi wholesale dealers, retailers and finally end users who are largely consisting of tailors. In order to provide better services and to have better control over its distribution activity and customers, Coats India has divided its customers into two parts i.e.

Industrial Customers &

Consumer and End use Customers.

Industrial Customers: Industrial Customers Consisting all major, garment industries leather industries and other industries who require thread in their manufacturing process. They usually buy in bulk quantity.

Consumer and End Use Customers: Basically, this group does not include manufacturers, but ranges from small garment factories to tailors. It means customers includes, Wholesale dealers, Semi Wholesale Dealers, Retailors, Tailors and others.

Based on the above types of customers, Coats India has Classified its Branches into two types i.e.

Industrial Branches

Consumer Branches

Industrial Branches: These Branches supply Thread and Accessories in large quantities to Garment, leather industries in the domestic market.

Consumer Branches:  These Branches supply the articles to all whole sale dealers, SSIs, Semi whole sale dealers, retailers, retailers and tailors and also does Redistribution activity.

PRODUCTS:

Major product of Coats India include the following

Threads  &

Accessories

Threads: Coats India is dealing in manufacturing and distribution of different types of thread in the domestic market. The different types of threads include the following,

Cotton Thread

Polyester Fibre

Nylon

Polyester Cotton

Polyester Poly

Accessories: Accessories include the following and used by textile industries and tailors in stitching various types of garments.

Interlinings

Zips

Belt Rolls

Handi Crafts

Needles (only Marketing)

Based on the customer type and products type, the company has classified all its products into 5 categories which include overall 20 trade groups. The list is as follows.

Product Categories

Consumer sewing: This category include the following 5 trade groups

Sl.No       Trade Group Description                          UOM

  01          Consumer sewing - Cotton                       KCLU

  02          Consumer sewing – Synthetic                  KCLU

  03          Consumer White                                       KCLU

  04          Popular Sewing Synthetic                         KCLU

  05          Coarse Cotton Thread                               KCLU

NOTE: 1CLU=10000 Meters

            KCLU=1000 CLU

Crafts: This category include the following 4 trade groups

Sl.No   Trade Group Description                              UOM

  06       Handicraft and other Accessories

 07       Anchor Stitch Kits                                             Nos

 08       Handicraft – Anchor                                         KGS

 09       Handicrafts-Doli                                               KGS

Industrial Thread: This include the following 6 trade groups

Sl.No     Trade Group Description                               UOM

  10         Industrial premium cotton                             KCLU

 11         Industrial premium SSP                                KCLU

 12         Industrial premium filaments                        KCLU

 13         Industrial popular Cotton                              KCLU

 14         Industrial popular SSP                                  KCLU

 15         Industrial popular filaments                          KCLU

Industrial Accessories: This category includes the following 2 trade groups.

Sl.No       Trade Group Description                                 UOM

 16           Industrial Interlinings                                     Mts

 17           Other needles                                              Bxs

Consumer Accessories: This category include the following 4 trade groups

Sl.No        Trade Group Description                               UOM

 18            Needles (TVS)                                            Bxs

 19            Zips                                                              Bxs

 20            Consumer Interlining                                  Mts

 21            Belt Rolls                                                     Nos.

Major brands available in the local market to all end use customers are as follows.

Polyester Thread: Presently the major brands available in the market under this type of thread are as follows:

Brand Name                  Tkt    Colour                 Selling Unit             List Price

1. Ameto No 37m         080     WBC                Box of 15 Tubes            49.50

2. Spade Poly 3838       000   WBC                Box of 25 Tubes            69.65

3. Moon 63662M          080      WBC                Box of 20 Tubes            36.00

4. Spade Poly 3851       000     W                 Box of 10 Tubes             59.40

5. Spade 3860               000      W                        Cone                        55.85

W-White, B-Black and C-colour

Cotton Thread: Presently the major brands available in the market under this type of thread are as follows:

Brand Name                     Tkt      Colour                 Selling Unit         List Price

1.Spade 1013                   000         W                 Box of 15 Tubes          51.30

2.Griffin 552M                030            W                 Box of 15 Tubes         205.40

3.Rocket 1121                 080           W                           Cone                 112.10

4.Falcon 1748                  080          W                     Heavy cop              226.10

5.Chain X550D               080           W                        Vicone                404.50

Interlining: Interlining is also called as Canvas, which is normally used while stitching the color of shirts by the tailors. Major brands available in the market are as follows:

Brand Name                   Width (cms)   Selling Unit             Present Rate

1. Anchor BRM00                 -              Per Piece                   11.50

2.Basics 0331D                   113           Mtr                        33.00

3.MCL 1216D                     090            Mtr                        54.50

Zips: Presently Coats India is dealing in trousers and ladies apparel zips. Various brand available in the market are as follows:

Brand Name                 Size                               Selling Unit                  Rate

MCL Zip Fasteners      8”                                 Box of 100                 290.50

MCL Zip Fasteners      9”                                 Box of 100                  349.50

TLR Zip Fasteners       8”                                 Box of 100                  215.00

MIG Zip Fasteners       8”                                 Box of 100                  166.00

GUN Zip Fasteners      8”                                 Box of 100                   217.00

Belt Rolls: Belt Rolls are being used by tailors in stitching the pants etc, presently the following brands are available in the market

Brand Name                    Width (cms)                     Selling Unit                  Rate

MCL premium B1216       032                                  25m roll                   52.55

Ultimate B2627                 032                                  25m roll                   44.90

Handicraft Kits: Premium brands available are as follows

Brand Name                 Tkt          Selling Unit                 Colour              Rate

Anchor 4054                020          Box of 10 balls              WBC              293.25

Doli X910                    000           Box of 10 balls              WBC              116.00

Red heart 1240             020         Box of 10 balls              WBC              168.00

Needles: Coats India is presently marketing domestic sewing machine needles presently available in the market in different sizes i.e.

Brand Name                                  Selling Unit                                    Rate

DN151 (in all sizes)                       Box of 300                                   275.00

The scope of market for the products of the company is spread in domestic and international market.

Pricing:

The product pricing activity is being carried and controlled by the Head office. It is being centralized. In order to promote the sales volume in the domestic market, the company is providing some discounts (like std discounts, quantity discount) also running some schemes on quarterly basis. As far as discounts and schemes are concerned it is uniform to all branched. In order to promote the redistribution sales, branches are liberalized to some extent and are given with sales promotional budget based on which, the branches can introduce there own schemes based on the market conditions, however the same are to be intimated to HO and approval are to be obtained prior to operating their own schemes.

Competitors:

Major competitors of Coats India in the market include Vardaman, Bajet, Tamco, Power, Spectra, Magic, Talco, RCL, Bombay Daying, Lotus, YKK and some of local industries. Coats India has 60% of market share as compared to its competitors share in the domestic market.

Landmarks in the history if Madura Coats:

1886        Anchor Brand Launched in India

1980    Coats launched synthetic thread in India

1988    Interlinings launched

1989    Zips launched

2001    Global Thread Supply India formed

2002    Coats Ltd increases stake to 95% in Madura Coats Limited