Kota Fibres, Ltd. was founded in 1962 in Kota, India. Created to produce nylon Fibre, Kota Fibres provided synthetic Fibre yarns to local textile weavers mainly to make the traditional women’s dress in India; the saris. Ms. Pundir was both the managing director and principal owner of the company. Kota Fibres used new technology and domestic raw materials to produce their quality product. The demand for saris amounted to 12 billion yards of fabric
The Case Papers
Kota Fibres, Ltd. was founded in 1962 in Kota, India. Created to produce nylon Fibre, Kota Fibres provided synthetic Fibre yarns to local textile weavers mainly to make the traditional women’s dress in India; the saris. Ms. Pundir was both …show more content…
Their sales would be INR 6 million and these sales were not reflected in the current sales forecast. They are requesting credit terms of 80 days. 2.Transportation Manager-Supply shipments would become more reliable due to a new road between Kota and New Delhi. The proposal was to reduce raw material inventory from 60 days to 30 days. 3.Purchasing Agent-Hibachi Chemicals will supply polyester pellets. If feasible, the pellets inventory will be reduced from 60 days to 2 or 3 days. 4.Operations Manager-The recommendation is to level annual production. The benefits are as follows: a. Gross profit margin would rise by 2 or 3 percent due to a stable work force. b. Seasonal hiring not necessary and the workforce would be stronger with less division among workers. c. Lower manufacturing risk as there would be fewer equipment breakdowns. Ms. Pundir requests input from her managers and staff yet takes no responsibility on following through or evaluating the informative solutions her staff develops. She seems to be solely focused on pleasing the shareholders which consist solely of immediate family.
The company has projected gross sales to reach INR90.9 million in 2001, an approximate increase of INR15 million over the current year. Although this increase is substantial, there are several additional financial factors which need attention. These factors include seasonality of sales and production, current credit standing, receivable and