Sitaram Textiles Limited

Sanal Kumar Velayudhan ()
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Sanal Kumar Velayudhan: Administrative Staff College of India, Bella Vista, Hyderabad - 500 082, India

Asian Case Research Journal (ACRJ), 2001, vol. 05, issue 02, 227-249

Abstract: Sitaram Textiles is a state-owned textile mill in India. It serves a regional market with a limited product-line of cotton fabric. The mill was set up as an integrated textile mill. Severe price-competition from the unorganised powerloom sector has restricted its operations to producing yarn and processing of grey cloth. The weaving activity is contracted out to the small powerloom units. Competition for certain types of fabric is from large players. Changes in the environment have an adverse effect on its performance. New channel arrangements, evolving consumer tastes and an increase in competition are the noticeable changes in the environment. It has not been able to fully utilise its processing capacity. This has affected its profitability. The mill is planning modernisation of its facilities and is examining the option of entry into blended fabric market. The case examines the influences on product line decisions. The product line decisions are influenced by Sitaram Textiles' ability to compete, the requirements of the market and company objectives.

Date: 2001
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DOI: 10.1142/S0218927501000111

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