Export Documentation

CHAPTER1. INTRODUCTION TO THE INDUSTRY & COMPANY

1.1 INDUSTRY PROFILE

ORIGINATION OF THE WORD “TEXTILE”

The term "Textile" is a Latin word originating from the word "texere" which means "to

weave". Textile refers to a flexible material comprising of a network of natural or artificial

fibres, known as yarn. Textiles are formed by weaving, knitting, crocheting, knotting and

pressing fibers together.

HISTORY OF TEXTILE

The history of textile is almost as old as that of human civilization and as time moves on the

history of textile has further enriched itself. In the 6th and 7th century BC, the oldest recorded

indication of using fiber comes with the invention of flax and wool fabric at the excavation of

Swiss lake inhabitants. In India the culture of silk was introduced in 400AD, while spinning

of cotton traces back to 3000BC. In China, the discovery and consequent development of

sericulture and spin silk methods got initiated at 2640 BC while in Egypt the art of spinning

linen and weaving developed in 3400 BC. The discovery of machines and their widespread

application in processing natural fibers was a direct outcome of the industrial revolution of

the 18th and 19th centuries. The discoveries of various synthetic fibers like nylon created a

wider market for textile products and gradually led to the invention of new and improved

sources of natural fiber. The development of transportation and communication facilities

facilitated the path of transaction of localized skills and textile art among various countries.

GLOBAL TEXTILE INDUSTRY

The textile industry is a group of related industries which uses a variety of natural fibers such

as cotton, kapok, fique, sisal, banana, agave, flax, jute, kenaf, hemp, ramie, rattan, vine, wool,

coir, asbestos, sheep's wool, cashmere goat hair, mohair goat hair, alpaca hair, horse hair, silk

etc. and/or synthetic fibres such as polyamide nylon, PET or PBT polyester, phenol-

formaldehyde (PF), polyvinyl alcohol fiber (PVA), polyvinyl chloride fiber (PVC),

polyolefins (PP and PE), acrylic polyesters, aramids, polyethylene (PE), Elastomers, spandex,

polyurethane etc.

1

Subdivision of the textile industry into its various components can be approached from

several angles. According to reference, the classical method of categorizing the industry

involves grouping the manufacturing plants according to the fibre being processed, that is,

cotton, wool, or synthetics. The modern approach to textile industry categorization, however,

involves grouping the manufacturing plants according to their particular operation such as

crocheting and pressing the fibers, spinning, weaving, knitting, knotting, apparel making, etc.

New innovations in clothing production, manufacture and design came during the Industrial

Revolution - these new wheels, looms, and spinning processes changed clothing manufacture

forever.

The ‘rag trade’, as it is referred to in the UK and Australia is the manufacture, trade and

distribution of textiles.

There were various stages - from a historical perspective - where the textile industry evolved

from being a domestic small-scale industry, to the status of supremacy it currently holds. The

‘cottage stage’ was the first stage in its history where textiles were produced on a domestic

basis.

During this period cloth was made from materials including wool, flax and cotton. The

material depended on the area where the cloth was being produced, and the time they were

being made.

In the later half of the medieval period in the northern parts of Europe, cotton came to be

regarded as an imported fiber. During the later phases of the 16th century cotton was grown

in the warmer climes of America and Asia. When the Romans ruled, wool, leather and linen

were the materials used for making clothing in Europe, while flax was the primary material

used in the northern parts of Europe.

During this era, excess cloth was bought by the merchants who visited various areas to

procure these left-over pieces. A variety of processes and innovations were implemented for

the purpose of making clothing during this time. These processes were dependent on the

material being used, but there were three basic steps commonly employed in making

clothing. These steps included preparing material fibers for the purpose of spinning, knitting

and weaving.

2

During the Industrial Revolution, new machines such as spinning wheels and handlooms

came into the picture. Making clothing material quickly became an organized industry - as

compared to the domesticated activity it had been associated with before. A number of new

innovations led to the industrialization of the textile industry in Great Britain. Clothing

manufactured during the Industrial Revolution formed a big part of the exports made by

Great Britain. They accounted for almost 25% of the total exports made at that time, doubling

in the period between 1701 and 1770.

The center of the cotton industry in Great Britain was Lancashire - and the amount exported

from 1701 to 1770 had grown ten times. However, wool was the major export item at this

point of time.

In the Industrial Revolution era, a lot of effort was made to increase the speed of the

production through inventions such as the flying shuttle in 1733, the flyer-and-bobbin system,

and the Roller Spinning machine by John Wyatt and Lewis Paul in 1738.

Lewis Paul later came up with the carding machine in 1748 and in 1764 the spinning jenny

was also developed. The water frame was invented in 1771 by Richard Arkwright. The power

loom was invented in 1784 by Edmund Cartwright.

In the initial phases, textile mills were located in and around the rivers since they were

powered by water wheels. After the steam engine was invented, the dependence on the rivers

ceased to a great extent. In the later phases of the 20th century, shuttles that were used in the

textile industry were developed and became faster and thus more efficient. This led to the

replacement of the older shuttles with the new ones.

Today, modern techniques, electronics and innovation have led to a competitive, low-priced

textile industry offering almost any type of cloth or design a person could desire. With its low

cost labour base, China has come to dominate the global textile industry.

REGULATORY STANDARDS

For textiles, like for many other products, there are certain national and international

standards and regulations that need to be complied with to ensure quality, safety and

sustainability.

3

The following standards amongst others apply to textiles:

CPSIA, e.g. Standard for the Flammability of Clothing Textiles

ASTM Textile Standards

REACH Regulations for Textiles

China Product Standard for Textiles

OPTIMISTIC GROWTH PROSPECTS

Overall future growth expectations for the textile industry remain optimistic. As per the

survey, a significant proportion (40%) of the respondents expect the industry to witness

growth of 11-20% during FY14 and FY15. However, around 20% of the respondents expect

the industry’s growth to record a decline during this period.

Figure no. 1.1Textile Industry growth prospects* (%)

*For FY14 and FY15

Source: D&B Study

4

FLUCTUATING RAW MATERIAL PRICES: A MAJOR BUSINESS CONCERN

Among the sample of companies surveyed, around 42% anticipate fluctuating raw material

prices and increasing market competition to be the major hindrances that could affect their

business during FY14 and FY15.

Figure no. 1.2 Major business concerns (%)

Source: D&B Study

FAVOURABLE EXPORT MARKETS: KEY GROWTH DRIVER

According to the companies surveyed, favourable export markets would be a major growth

driver for the industry’s growth during FY14 and FY15; around 45% of the respondents

confirm this.

5

Figure no. 1.3 Major growth drivers in the textile industry (%)

Source: D&B Study

INDIAN TEXTILE INDUSTRY

The textile industry in India traditionally, after agriculture, is the only industry that has

generated huge employment for both skilled and unskilled labor in textiles. The textile

industry continues to be the second largest employment generating sector in India. It offers

direct employment to over 35 million in the country.

According to the Ministry of Textiles, the sector contributes about 14% to industrial

production, 4% to the country's gross domestic product (GDP) and 17% to the country's

export earnings. The share of textiles in total exports was 11.04% during April-July 2014, as

per the Ministry of Textiles. It is estimated that India would increase its textile and apparel

share in the world trade to 8% from the current level of 4.5% and reach US$80 billion by

2020. During 2009-2010, Indian textiles industry was pegged at US$55 billion, 64% of which

services domestic demand.

6

SEGMENTS OF INDIAN TEXTILE INDUSTRY

1. Cotton Textiles

2. Silk Textiles

3. Woollen Textiles

4. Readymade Garments

5. Hand-crafted Textiles

6. Jute and Coir

PRODUCTION

India is the second largest producer of fiber in the world and the major fiber produced is

cotton. Other fibers produced in India include silk, jute, wool, and man-made fibers. 60% of

the Indian textile Industry is cotton based.

The strong domestic demand and the revival of the Economic markets by 2014 have led to

huge growth of the Indian textile industry. In December 2014, the domestic cotton price was

up by 50% as compared to the December 2014 prices. The causes behind high cotton price

are due to the floods in Pakistan and China. India projected a high production of textile (325

lakhs bales for 2013 -14) .There has been increase in India's share of global textile trading to

seven percent in five years. The rising prices are the major concern of the domestic producers

of the country.

Man Made Fibers: These include manufacturing of clothes using fiber or filament synthetic

yarns. It is produced in the large power loom factories. They account for the largest sector of

the textile production in India. This sector has a share of 62% of the India's total production

and provides employment to about 4.8 million people.

The Cotton Sector: It is the second most developed sector in the Indian Textile industries. It

provides employment to huge amount of people but its productions and employment is

seasonal depending upon the seasonal nature of the production.

The Handloom Sector: It is well developed and is mainly dependent on the SHGs for their

funds. It market share is 13 % .of the total cloth produced in India.

The Woollen Sector: India is the 7th largest producer. Of the wool in the world. India also

produces 1.8% of the world's total wool.

7

The Jute Sector: The jute or the golden fiber in India is mainly produced in the Eastern

states of our country like Assam, West Bengal. Indian is 3rd largest producer of jute in the

world.

The Sericulture and Silk Sector: India is the 2nd largest producer of silk in the world. India

produces world's 18% total silk. Mulberry, Eri, Tasar, and Muga are the 3 main types of the

silk produced in the country. It is a labor-intensive sector.

GOVERNMENT INITIATIVES

The Government of India has promoted a number of export promotion policies for the Textile

sector in the Union Budget 2013-14 and the Foreign Trade Policy 2009-14. This also includes

the various incentives under Focus Market Scheme and Focus Product Scheme, broad basing

the coverage of Market Linked Focus Product Scheme for textile products and extension of

Market Linked Focus Product Scheme etc. to increase the Indian shares in the global trade of

textiles and clothing. The various schemes and promotions by the Government of India are as

follows -

E-Marketing:

The e-marketing platforms have been developed by the Central Cottage Industries

Corporation of India (CCIC), and the Handicrafts and Handlooms Export Corporation of

India (HHEC).

Skill Development:

Scheme on Integrated Skill Development Scheme targets to train approximately 26.75 lakh

people over a period of 5 years (2.70 lakh people in the first two years); cover all segments

under the ambit of the Ministry including: textiles and apparel; handicrafts; handlooms; jute;

and sericulture. A scheme has been proposed for implementation under the12th FYP with an

allocation of RS3500crore. A target of 1.5 lakh workers would be achieved by March 2014.

Credit Linkages: 25,000 Artisan Credit Cards have been issued to artisans under the Credit

Guarantee Scheme, and over 1.65 lakh additional applications have been forwarded to banks

for consideration.

8

Textiles Parks:

The Indian Government has given approval to 21 new Textiles Parks to be set up and this

would be executed over a period of 36 months. The new Textiles Parks would leverage

employment to 400,000 textiles workers. The product mix in these parks would include

apparels and garments parks, hosiery parks, silk parks, processing parks, technical textiles

including medical textiles, carpet and power loom parks.

9

STRENGTHS AND WEAKNESSES OF INDIAN TEXTILE INDUSTRY

STRENGTHS WEAKNESS

Second largest textile producer in the

world. Long and deep rooted textile

tradition and highest net forex earner

for the country

Integrated industry across the entire

chain from fiber to garments/home

textiles i.e. concept to consumer

Abundant skilled and technical labor

force, which are especially suited for

apparels/ Made Ups manufacturing.

Large and growing domestic market to

impart stability to export thrust

Strong entrepreneurial class

Flexibility in production of small order

lots

Small size and technological outdated

plants result in lack of economics of

scale, low productivity and weak

quality control

Poor work practices resulting in higher

labor cost component in many staple

garment, in spite of low labor costs

With the exception of spinning, other

sectors are fragmented

Poor quality in weaving and processing

mainly due to domination of

unorganized sector

Rigid government labor laws and

policies lack reforms

High transaction & power cost

10

TEXTILE INDUSTRY AT PANIPAT

Panipat is today world-famous for its beautiful and jubilant handloom made-ups, blankets and

other upholstery. This new fame seems to have superceded the nostalgia of the three

historical battles of Panipat. Some important features of the textile industry of Panipat are:

1. There is hardly any city of this small size in India that has such a big textile

manufacturing base.

2. This Industry comprises of seven segments that is handloom, woollen carpets, shoddy

yarn spinning, open end cotton yarn spinning, power-loom industry, wet processing

and hosiery woollen yarn industry. All of these together makes a business of around

Rs 4000 crores and provide employment to 2 lacs people.

3. It contributes 50% of the total exports of the Handloom products from the country.

4. Panipat town has got a global distinction of having the maximum number of shoddy

spinning units at one particular place.

5. Panipat has been awarded Gold Trophy by the Export Promotion Council for the

highest quantity of exports in woollen hand tufted carpets.

6. The industry of Panipat is meeting out 75% demand of Barrack Blankets for the

Indian Military.

In the nutshell, Panipat is an industry with a wide range of handloom textiles, whether

requiredfor a five star hotel or for a poor man's cottage. However, Panipat is not an exception

caseduring these days of overall industry recession. The industries of Panipat are seriously

suffering from low capacity utilization, credit problems, less margins, labour problems,

overseas competition and changing preferences of consumers, which is resulting in shut down

of most of the small scale manufacturing units. In view of above there is an urgent need for a

need based, flexible, focused and action oriented policies targeted at sustained development

of the industry and economy.

11

LEADING TEXTILE COMPANIES IN PANIPAT

Sheena Exports

Om Overseas

Gaba Overseas

Paliwal Exports

Shivam Exports

Ess Kay Enterprise

Shri Krishna Furnishing

Shiv Shakti Exports

12

1.2 INTRODUCTION TO THE COMPANY

Shivam Exports is undoubtly one of the leading manufacture exporters of home furnishing

textiles based in well known industrial city in Panipat in Northern India. The Company

operates as rugs Export Company of Shivam Exports group and perhaps the only

organization that has implemented and maintained the modern day practices of

professionalism in term of management while keeping the hiccups of unorganized

manufacturing industry apart from our clients. As an outcome, our clients are enjoying the

artistic and traditional Indian flavours of home furnishing trends with finest quality and

efficient services like timely deliveries, quality assurance and lot more. With an experience of

around 40 years in the textile industry and our expertise in extensive textile products, we are

set to offer our clients unmatchable quality and exclusive designs.

The Company manufactures a wide range of home furnishing textile products like face to

face machine woven cotton bath mats and carpets, table linen, bed linen (Tapestry, Damask,

Velvet, Prints), bags throws, rugs, kitchen linen, curtains (cotton, polyester, voile, organza

and velvet).

The Company currently exports wide range of home Furnishing Textiles to various countries

such as France, Germany, South Africa, USA, and Dubai etc. It continues to broaden the

reach to include additional designs and range in the portfolio, while expanding to new

markets overseas.

Quality has always been the key factor for us since our establishment. The company meets

various quality standards and complies with the norms of ILO (Indian Labor Organization).

Shivam Exports is one of the largest manufacturers & exporters of home furnishings, carpets

and floor coverings in India. The Company counts among their clientele some of the most

reputed stores and catalog companies of the world.

The Company’s in-house design studio is reputed for its superior quality of designs and

innovative products. The Company is renowned for its exclusive theme-based collections that

reflect the moods of various seasons.

13

The Company is also renowned for creating custom-made products to suit the taste of

aesthetics from across countries. Shivam Exports is run by highly experienced professionals

who have in-depth knowledge in carpet designing, manufacturing and raw materials.

Shivam Exports has built up an international reputation in Home Furnishings on the basis of

our superior quality products and timely delivery.

The company is a recognized export houses since 1973 and also an ISO 9001:2008 and

14001 certified. The company is mainly manufacturing and exporting textile products

worldwide.

They are mainly producing:

• Decorative Cushions and Throws

• Bath Rugs and Shower Curtains

• Braid and Woven Rugs

• Tufted Bedding and Curtains

• Duvet

• Quilts and Comforters

• Table Linen

• Kitchen Linen

• Bed Linen

• Pouf

• Bags and Recycled Products.

The main clients of the company are KOHL’S, K-MART, TARGET, HOMESTEAD, WAL-

MART etc. For the export performance, the company was awarded by the President of India

and the export promotion council.

The main motto of the company is to attain 100% in time shipments of its products. Well

trained managerial professionals and designers are involved in the managerial and product

specialization.

14

The compliance activities of the company are well integrated as per domestic and abroad

norms. Workers welfare is the prime attention towards workers of the company by serving

medical aid and the other educational facilities.

In house manufacturing facilities are the most important peculiarity such as weaving,

stitching, embroidery, braiding, tufting, dye, made ups, cotton blankets and bags- these

activities are being organized in one hut. The Company has approximately 250 full time

employees and some other employees who are working in the Company on contractual basis.

Production Strength and Sophisticated Machineries

• Vertically Integrated Facilities and Infrastructure

• Qualified Design and Development Team

• Gretagmacbeth Spectra light lll Color Viewing Booth

• Gretagmacbeth Spectrophotometer for Recipe and Delta

• Large Base of LOOMS FOR RUGS, Tufting and Fabrication

• Own Container Transportation for Critical Shipments.

• 125 Braiding Machines for Braid Rugs and Place Mats.

• 100 Candle Wick Tufting machines for bedding and rugs.

• 250 Multi Needle tufting machines for bath rugs.

• 20 Power Looms for Ribbed Place Mats with Dobby.

• 100 Power Looms with Dobby and Jacquards.

• 10 wide-widths (340cm) computerize shuttle less looms.

• 200 Juki Sewing machines.

• 50 Pit Looms for Woven Rugs.

• 100 Embroidery Machines.

• Blow fills for Pillows and Cushions.

15

• State of Art Dyeing in- house for overall dyeing.

SET-UP INCLUDES:

• 500 loom of various types.

• Cutting, sewing and tufting equipment for State-of-the-art fabrication.

• Captive transportation to counter occasional bottlenecks on timely delivery.

• Permanent workforce of 1500 loyal and skilled craftsmen – only adult workers.

• P plant with O discharge option.

Apart from the above facilities, the Company is depending on outsourced facilities like

Printing, Computerized Embroidery, Quilting of some type of specialized products etc.

INFRASTRUCTURE

The Company’s main unit is located in the reputed industrial sector of Panipat city, also

called as city of Handlooms in Northern India. The city is just 90 kms. from the capital city

and well connected to national highway. The industrial background of Panipat city provides

us with all the nut and bolts of textile business to flourish. Being recognized textile hub the

city has a flow of skilled labors from all parts of country.

The manufacturing unit is spread over a large area of land that provides enough space for the

workers to work in healthy and well ventilated environment. The campus is divided into

different work areas sheds, storage rooms or god owns, labor rooms, finishing departments,

packaging department and finally a well organized managerial department.

Technically qualified and committed professionals meticulously plan in advance to honour

global commitments of quality. The Company’s in-house production units ensure timely

deliveries under strict quality norms. It is having a well developed and systematic production

unit. It is divided into different sections and supervised by well trained staff.

VISION OF THE COMPANY

• To establish itself as a valuable brand into domestic market.

• A credible presences in organize detail segment through setting up retail change store.

16

• Relationship with at least 10 retailers out of top 20 in the world.

MISSION & PHILOSOPHY OF THE COMPANY

SHIVAM EXPORTS is an export house company, with a focus on delivering the highest

quality services. The team pushes the limits so their clients benefit. Always looking forward,

the company is committed to fostering and developing successful business relationships.

With a commitment to excellence and paying sharp attention to the quality of work and

services, perfectionism is their only acceptable standard. The company forms partnerships

with the best companies-those who are equally passionate about supporting businesses in

their rapidly expanding technological world.

Quality Policy

Shivam Exports is committed to the manufacture and supply of the highest quality products.

Our objective is to meet or exceed customer requirements on time every time, and strive

towards a continuous improvement in the effectiveness of the established Quality

Management System.

17

PROCESS ADOPTED BY THE COMPANY

Figure No. 1.4 Manufacturing Process

18

Canvas Cloath

Edge Stiched

Thfting

Dyeing

Clipping Finishing

Packing

OPTIMISING MANUFACTURING PROCESS

The Company’s processes are designed to maximize product appeal, ensure quality, minimize

cost and eliminate duplication of packaging cost and effort.

1. Product Appeal is maximized by optimal exploitation of Shivam Exports’s design and

sampling skills to develop buyers programs. In addition, our own innovative trendy

designs are always available on tap.

2. Quality is assured- starting with yarn purchase and each processing stage thereafter.

Correct attitude, appropriate training and vigilance delivers promised quality –

Always.

3. Buyer pre-shipment inspection welcomed.

4. Cost is lowest at Shivam Exports because of procedures resulting in quality

production without wastage, strong yarn buying power, captive manufacturing and

long term perspective.

5. Packaging is done to buyer specifications, with Bar Coding, instruction inserts etc.,

ready for retail shelf.

CONCLUSION :- In the above point of view, I liked overall company atmosphere by way of

functioning, working atmosphere of men and women and their welfare facilities and other

compliance activities are excellent.

19

PRODUCT PORTFOLIO

Cotton Furnishings created at Shivam Exports are renowned for their quality and style all

over the world. Shivam Exports translates seasonal trends and designs, as conceived by the

buyers, into their coordinated programs for home furnishings that offer unique lifestyles. Also

designs are created and offered by Shivam Exports’s design team.

Through the Company’s own manufacturing facilities, Shivam Exports produces a wide

range of Home Furnishings like rugs, table linen, cushion covers, bed linen, kitchen linen,

bathroom linen, curtains, cotton blankets, knits and throws.

Cotton Home Furnishings made at Shivam Exports brighten the modern lifestyles and add

beauty to homes across the nations. They are preferred by leading stores, around the globe.

Figure No. 1.5 Product Portfolio

20

1. Bed linen

In terms of value, this is certainly the most important market for household

textiles.Functions of bed linen are to protect the bedding, to enhance “sleeping pleasure”

and an aesthetic appeal. The most important development concerning bedroom linen in

recent decades has been the introduction of the eiderdown also referred to as duvet, or

quilt (together with the quilt cover).The quilt cover has much more potential for fashion

expression than sheets. Types of bed linen:

• Flat (non-raised) bed line.

• Terry bed line

• Jersey bed line

• Flannelette (flannel)

2. Bathroom linen

The major bathroom textile product is a terry towel: traditional towels, bath and beach

towels and guest towels. The most important differences are based on end-use which

dictates the different sizes. Other bath products are washing gloves, bath rugs and bath

mats besides shower curtains.

3. Kitchen linen

A decrease in the use of tea towels has been greatly influenced by the fact that

increasingly more households are using automatic dishwashers, so that hand – drying is

no longer necessary. In the kitchen, two types of towels are used:

• Kitchen towels, made of terry or flat woven;

• Dish towels or tea towels, only flat woven;

• Aprons and other accessories only flat woven.

21

4. Table linen

Table linen includes:-tablecloths, table covers, table centers, table runners and napkins.

The tablecloth has two functions: protection of the table and decoration (aesthetic

appeal).This market is not at all large. It is difficult to get hold of accurate figures on table

napkins separately, as they are almost always sold in a set matching the tablecloth,

particularly in the case of expensive quality. There is an enormous offer as to types,

forms, materials, colors and designs. Materials can be flat, structured, printed dobby,

jacquard, embroidered, damask with all kind of adornments and decorations. Table linen

is mostly made of cotton, material other than cotton, are 100% polyester (easy to launder)

and 50% polyester/505 cotton or viscose and the more luxurious textile fibers such as

silk.

5. Curtains

Curtains are used to provide privacy, eliminate (sun) light, insulation purposes (thermal,

acoustic), aesthetic effects etc.

Textiles for indoor window covering can be divided into the following categories:

Draperies are generally made of heavy fabrics, such as velvet, satin, opaque and jacquard.

They usually have a lining and are hung from hooks.

• Curtains are relatively sheer and lightweight and are in most cases hung without

linings.

• Lace or net curtains adorn the window frames in houses. The major fiber used for net

curtains is polyester filament. Other fibers are polyester staple and acrylic staple.

• Shades are soft coverings, take less space than curtain and draperies and come in

fabric and a variety of other materials.

Curtains are largely sold ready-made in lengths which fit the standard window sizes and

several heights. Curtains and draperies are made from all types of fibers and fabric

construction; however, most curtains are made with synthetic fibers.

22

6. CUSHIONS

Cushion covers can be developed on individual designs or could be supportive to a

coordinating story, adding the accent to any living place. It is one of the most versatile

engineered products providing immense scope to working on designs in creative and

innovative ways and enabling us to offer a large range of prices.

7. THROWS/ LAP SHAWLS

Throws has been one of the strongest areas of Shivam Exports. Various qualities and

counts of yarn are used with interesting weaving techniques on in-house Dobby and

Jacquard facilities. Shivam Exports actively pursues to develop throws of latest and

trendy designs in various price ranges, from very economical to highly sophisticated

masterpieces in quantity.

MAJOR CUSTOMERS OF THE COMPANY

Home Furnishings created directly by Shivam Exports or coordinated by wholesalers /

importers like Banana Republic (GAP), occupy prominent shelf space of major retail chains

like:

• Calvin Klein Home

• Carnif

• Crate & Barrel

• Homestead

• J.C. Penny

• Kaleidoscope

• Martha Stewart

• New Port News Inc.

• Pier-I

• Pottery Barn

• Selkon

• Spiegel

• Tommy Hilfiger

• Walmart

23

CHAPTER 2. INTRODUCTION TO THE TOPIC

EXPORT PROCEDURE AND DOCUMENTATION

Export is one of the lucrative business activities in India. The government also provides

various promotional schemes to the exporters for earning valuable foreign exchange for the

country and for meeting their requirements for importing modern technology and essential

inputs. Besides, the income from export business is also exempted to the specified extent

under the Income Tax Act, 1961, Refund of Central Excise and Custom Duty on export is

also made under the Duty Drawback Scheme of the Government. There is no Sales Tax on

products meant for exports.

Exports can be of goods which can be moved physically from one country to another or can

be of service rendered. Detailed list of services are given in the Foreign Trade Policy

covering more than 160 items e.g. Insurance, Hospital, Postal and Telecommunication etc.

TYPES OF EXPORTS

• Physical Exports:

If the goods physically go out of the country or services are rendered outside the country then

it is called as physical export.

• Deemed Exports:

Where the goods do not go out of the country physically they can be termed as deemed

exports. This will be subject to certain conditions as prescribed by the DGFT. Under Deemed

Exports, the goods may be supplied to the manufacturer exporter who ultimately export a

finished product of which this supply forms a part and ultimately go out of the country. E.g.

Supply of fabrics to the garment exporter who exports the garments made out of the said

fabric.

The government may announce from time to time the types of supplies that may be

considered as deemed export. The Foreign Trade Policy gives the list of supplies considered

under the deemed export category. The policies and procedures are different for physical

exports and deemed exports.

24

TYPES OF EXPORTERS

Exporters can be basically classified into two groups

• Manufacturer Exporter: As the exporter has the facility to manufacture the product

he intends to export and hence he exports the products manufactured by him.

• Merchant Exporter: An exporter who does not have the facility to manufacture an

item. But, he procures the same from other manufacturers or from the market and exports the

same.

An exporter can be both a manufacturer exporter as well as a merchant exporter, he can

export product manufactured by him or he can export items bought from the market.

Once it is decided to export, it is mandatory for company to follow certain procedures, rules

and regulations as prescribed by various regulatory authorities such as DGFT, RBI, and

Customs. These procedures, rules and regulations are laid down in the Exim Policy 2006-11,

Exchange Control Manual, and Customs Act etc. Accordingly Export documents are required

to be prepared keeping in view of the requirement of the foreign buyers and our regulatory

authorities.

Shivam Exports is a manufacturer exporter.

CHOOSING APPROPRIATE MODE OF OPERATIONS

You can choose any of the following modes of operations

• Merchant Exporter i.e. buying the goods from the market or from the manufacturer

and then selling it to foreign buyers.

• Manufacturer Exporter i.e. manufacturing the goods yourself for export.

• Sales Agent / Commission Agent / Indenting Agent i.e. acting on behalf of the seller

and charging the Commission.

• Buying Agent i.e. acting on behalf of the buyer and charging commission.

• Service Provider i.e. providing service from India to another country.

25

STRUCTURE OF AN EXPORT ORGANISATION

• Marketing manager for generating sales

• Commercial manager for looking activities of the execution of the orders.

• Staff personnel for carrying out the day-to-day activities namely:

• Preparation of pre-shipment documents.

• Coordinating with clearing agents on the progress of the shipment to be made.

• Coordinating with the ware house and excise department regarding packing and

clearance of the goods for export.

• Preparation of post shipment documents for banks.

• Follow-up with the bank on dispatch of documents, receipt of payment, availment of

bank loans etc.

• To look into the requirement of licenses, claiming of export benefits filing of

documents with the Government Authorities in Discharge of Export Obligations, if any, filing

of returns to the various Government Agencies which are mandatory, prepare and keep an

information bank of various transaction of the company, their domestic as well as

international competitors.

• An office boy for doing leg work.

• A clearing and forwarding agent to handle the documents and the goods in the

customs premises in the ports of lading.

Depending upon the size of the business the numbers of personnel under each category may

increase. For example if a company is transacting substantial volume of business in more

than one product. Then it is necessary to have marketing manager for each product so that the

person can concentrate on a particular trade to enhance the business.

26

REGISTRATION WITH REGIONAL LICENCING AUTHORITIES OBTAINING

IMPORTER EXPORTER CODE (IEC) NUMBER

The Customs Authorities will now allow the exporter to export or import goods into or from

India unless he holds a valid IEC number. Before applying for IEC number it is necessary to

open a bank account in the name of the company with any commercial bank authorized to

deal in foreign exchange. The duly signed application form should be supported by the

following documents.

• Bank receipt (in duplicate) / Demand Draft for payment of the fees of Rs. 1000/-

• Certificate from the banker of the applicant firm as per Annexure 1 to the form given.

• One copy of PAN number issued by Income Tax Authorities duty attested by the

applicant.

• One copy of Passport Size photographs of the applicant duly attested by the banker to

the applicant.

• Declaration by the applicant that the proprietor/partners/directors as the case may be

of the applicant company, are not associated as proprietor/partners/directors in any other firm,

which has been caution, listed by the RBI. Where the applicant declares that they are

associated as proprietor/partners/directors in any other firm, which has been caution, listed by

the RBI, they will be allotted IEC No. but with an additional condition that they can export

only with RBI’s prior approval and they should approach RBI for the purpose.

• Each importer/exporter shall be required to file importer/exporter profile once with

the licensing authority shall enter the information furnished in their database so as to dispense

with changes in the information given, importer/exporter shall intimate the same to the

licensing authority.

REGISTRATION WITH SALES TAX AUTHORITIES

Goods that are to be shipped out of the country for export are eligible for exemptions from

both Sales Tax and Central Sales Tax. For this purpose, exporter should get himself

registered with the Sale Tax Authority of is state after following the procedures prescribed

under the Sales Tax Act applicable to his state.

27

PRE-REQUISITES TO ENTER INTO EXPORT BUSINESS

Before entering into the venture of exports, one must look for the product to be exported and

the market where he intends to export.

In case of a manufacturer, obviously he would like to export the product he manufactures as

is or with possible modification as may be required by the market. However, in case of a

merchant exporter or a trader, one has to identity the product to export. If the exporter is

already in the trade in the domestic market and is familiar with the product it would be an

advantage to export the said product of which he has reasonable knowledge.

Before selecting a product, one must simultaneously made a study and find out the

prospective market. For finding out the market for the selected product, the following

methods will help.

• Get statistical information as to imports of the product by various countries and their

growth prospects in the respective countries

• Approach the chamber of commerce for their guidance to find out the market.

• Approach the Export Promotion Council dealing in the product of selection to get

more information.

NEED FOR EXPORT DOCUMENTS

Documentation is used:

• To keep shipment and delivery on schedule,

• To describe cargo,

• For customs clearance,

• To indicate the ownership of goods for collection purposes or in the event of dispute

• To obtain Payment.

The Preliminary

1. Importer Exporter Code (IE Code)

2. Obtain Registration-Cum-Membership Certificate (RCMC).

28

3. Manufacture – Raw Materials Duty Free.

4. Get familiar with the excise formalities.

5. Understand the local government regulations

6. Get information of the government’s regulations

7. Availability of Airlines, the transport charges, frequency of operation etc.

8. Look for a Custom House Agent (CHA)

EXPORT DOCUMENTATION

Figure no. 2.1 Documentation

29

INVOICE

CERTIFICATE

CUSTOMS DOCUMENT

TRANSPORT DOCUMENT

EXCHANGE CONTROL DOCUMENT

PAYMENT DOCUMENT

MISCELLANEOUS DOCUMENT

INVOICES

INVOICES

PERFORMA INVOICE COMMERCIAL INVOICE CONSULAR INVOIC

PERFORMA INVOICE

Quotation in form of regular invoice sent as a reply to an inquiry.

Importance of Performa Invoice

• It forms the basis of all trade transactions.

• It may be useful for the importer in obtaining import license or foreign exchange.

COMMERCIAL INVOICE

• Also known as a ‘Document of Contents’.

• Actually a seller’s bill of merchandise.

• Prepared by the exporter after the execution of export order giving details about the

goods shipped.

• It is a Prima facie evidence of the contract of sale or purchase.

Contents of Commercial Invoice

1. Name and address of the exporter.

2. Name and address of the consignee.

3. Name and the number of Flight or Vessel.

30

4. Name of the port of loading.

5. Name of the port of discharge and final destination.

6. Invoice number and date.

7. Exporter’s reference number.

8. Buyer’s reference number and date.

9. Name of the country of origin of goods.

10. Name of the country of final destination.

11. Terms of delivery and payment.

12. Marks and container number.

13. Number and packing description.

14. Description of goods giving details of quantity, rate and total amount in terms of

internationally accepted price quotation.

15. Signature of the exporter with date.

Significance of Commercial Invoice

• Useful in preparation of various other shipping documents.

• Used in various export formalities.

• Useful in negotiation of documents for collection and claim of incentives.

• Useful for accounting purposes to both exporters as well as importers.

Consular Invoice

• Consular invoice is a document required mainly by the Latin American countries like

Kenya, Mauritius, etc.

• Collection of accurate information by the authorities of the importing country for

assessing import duties and also for statistical purposes.

31

• For obtaining consular invoice the exporter require to submit three copies of invoice

to the Consulate of the importing country concerned.

CONSULAR INVOICE

• Consular invoice is a document required mainly by the Latin American countries like

Kenya, Mauritius, etc.

• Collection of accurate information by the authorities of the importing country for

assessing import duties and also for statistical purposes.

• For obtaining consular invoice the exporter require to submit three copies of invoice

to the Consulate of the importing country concerned.

Significance of Consular Invoice for the Exporter

• It facilitates quick clearance of goods from the customs in exporter's as well as

importer's country.

• Certification' of goods by the Consulate of the importing country indicated that the

importer has fulfilled all procedural and licensing formalities for import of goods.

• It also assures the exporter of the payment from the importing country.

Significance of Consular Invoice for the Importer

• It facilitates quick clearance of goods from the customs at the port destination and

therefore, the importer gets quick delivery of goods.

• The importer is assured that the goods imported are not banned for imported in his

country.

Significance of Consular Invoice for the Customs Office

• It makes the task of the customs authorities easy.

• It facilitates quick calculation of duties as the value of goods as determine by the

Consulate is considered for the purpose.

32

CERTIFICATES

Certificate of Origin

•It certifies the place of origin of the merchandise.

•Federation of Indian Chambers Of Commerce and Industry, the export promotion councils

and various other trade associations have been authorized by the government of India to issue

certificate of origin.

•Important in the case of countries, having preferential rates of tariff for Indian Commodities.

Types of the Certificate of Origin

(a) Non-Preferential Certificate, Of Origin: - Non-preferential certificate of origin is

required in general by all countries for clearance of goods by the importer, on which no

preferential tariff is given. It is issued by: ¬

• The authorized Chamber of Commerce of the exporting country.

• Trade Association of the exporting country.

(b) Certificate of Origin for availing Concessions under GSP :- Certificate of origin

required for availing of concessions under Generalized System of Preferences (GSP)

extended by certain, countries such as France, Germany, Italy, BENELUX countries, UK,

Australia; Japan, USA, etc. This certificate can be obtained from specialized agencies,

namely;

• Export Inspection Agencies.

• Jt. Director General of Foreign Trade.

• Commodity Boards and their regional offices.

• Development Commissioner, Handicrafts.

• Textile Committees for textile products.

• Marine Products Export Development Authority for marine products.

• Development Commissioners of EPZs

33

(c) Certificate for availing Concessions under Commonwealth Preferences (CWP):

Certificate of origin for the purpose of Commonwealth Preference is also known as

'Combined Certificate of Origin and Value'. It is required by two member countries, i.e.

Canada and New Zealand of the Commonwealth. For concession under Commonwealth

preferences, the certificates or origin have to be submitted in special forms obtainable, from

the High Commission of the country concerned.

Contents of Certificate of Origin

• Name and logo of chamber of commerce.

• Name and address of the exporter.

• Name and address of the consignee.

• Name and the number of Vessel of Flight

• Name of the port of loading.

• Name of the port of discharge and place of delivery.

• Marks and container number.

• Packing and container description.

• Total number of containers and packages.

• Description of goods in terms of quantity.

• Signature and initials of the concerned officer of the issuing authority.

• Seal of the issuing authority.

Significance of the Certificate of Origin

• Certificate of origin is required for availing of concessions under Generalized System of

Preferences (GSP) as well as under Commonwealth Preferences (CWP).

• It is to be submitted to the customs for the assessment of duty clearance of goods with

concessional duty.

34

• It is required when the goods produced in a particular country are banned for import in the

foreign market.

• It helps the buyer in adhering to the import regulations of the country.

Sometimes, in order to ensure that goods bought from some other country have not been

reshipped by a seller, a certificate of origin IS required.

CUSTOMS DOCUMENT

Shipping Bill

Shipping bill is the main customs document, required by the customs authorities for granting

permission for the shipment of goods. The cargo is moved inside the dock area only after the

shipping bill is duly stamped, i.e. certified by the customs. Shipping bill is normally prepared

in five copies:-

• Customs copy.

• Drawback copy.

• Export promotion copy.

• Port trust copy.

• Exporter's copy

Types of Shipping Bill

Based on the incentives offered by the government, customs authorities have introduced three

types of shipping bills:-

• Drawback Shipping Bill: - Drawback shipping bill is useful for claiming the

customs drawback against goods exported.

• Dutiable Shipping Bill: - Dutiable shipping bill is required for goods which are

subject to export duty.

• Duty-free Shipping Bill: - Duty-free shipping bill is useful for exporting goods on

which there is no export duty.

35

In order to facilitate easy recognition and quick processing, following colors have been

provided to different kinds of shipping bills:

Table no. 2.1

Types of goods By Sea By Air

Drawback shipping bill Green Green

Dutiable shipping bill YellowPink

Duty-Free shipping bill White Pink

Contents of Shipping Bill

• Name and address of the exporter.

• Name and address of the importer.

• Name of the vessel, master or agents and flag.

• Name of the port at which goods are to be discharged.

• Country of final destination.

• Details about packages, description of goods, marks and numbers, quantity and details

Of each case.

• FOB price and real value of goods as defined in the Sea Customs Act.

• Whether Indian or foreign merchandise to be re-exported

Total number of packages with total weight.

Significance of Shipping Bill

a) Shipping bill is the main customs document, required by the customs authorities for

granting permission for the shipment of goods.

b) The cargo is moved inside the dock area only after the shipping bill is duly stamped,

i.e. certified by the customs.

36

c) Duly endorsed shipping bill is also necessary for the collection of export incentives

offered by the government.

• It is useful to the Customs Appraiser while determining the actual value of goods

exported and value.

TRANSPORT DOCUMENT

Mate’s receipt

Mate's receipt is a receipt issued by the Commanding Officer of the ship when the cargo is

loaded on the ship. The mate's receipt is a prima facie evidence that goods are loaded in the

vessel. The mate's receipt is first handed over to the Port Trust Authorities. After making

payment of all port dues, the exporter or his agent collects the mate's receipt from the Port

Trust Authorities. The mate's receipt is freely transferable. It must be handed over to the

shipping company in order to get the bill of lading. Bill of lading is prepared on the basis of

the mate's receipt.

Types of Mate's Receipts

• Clean Mate's Receipt: - The Commanding Officer of the ship issues a clean mate's

receipt, if he is satisfied that the goods are packed properly and there is no defect in the

packing of the cargo or package.

• Qualified Mate's Receipt: - The Commanding Officer of the ship issues qualified

mate's receipt, when the goods are not packed properly and the shipping company does not

take any responsibility of damage to the goods during transit.

Contents of Mate's Receipt

• Name and logo of the shipping line.

• Name and address of the shipper.

• Name and the number of vessel.




37


• Total number of containers and packages.


• Container status and seal number.

• Gross weight in kg. And volume in terms of cubic meters.

• Shipping bill number and date.

• Signature and initials of the Chief Officer.

Significance of Mate's Receipt

• It is an acknowledgement of goods received for export on board the ship.

• It is a transferable document. It must be handed over to the shipping company in order

to get the bill of lading.

• Bill of lading, which is the title of goods, is prepared on the basis of the mate's

receipt.

• It enables the exporter to clear port trust dues to the Port Trust Authorities.

BILL OF LADING

The bill of lading is a document issued by the shipping company or its agent acknowledging

the receipt of goods on board the vessel, and undertaking to deliver the goods in the like order

and condition as received, to the consignee or his order, provided the freight and other

charges as specified in the bill have been duly paid.

Three main purposes:

• As a document of title to the goods

• As a receipt from shipping company

• As a contract for the transportation of goods.

38

Types of Bill of Lading

• Clean Bill of Lading: - A bill of lading acknowledging receipt of the goods

apparently in good order and condition and without any qualification is termed as a clean bill

of lading.

• Claused Bill of Lading: - A bill of lading qualified with certain adversary marks such

as, "goods insufficiently packed in accordance with the Carriage of Goods by Sea Act," is

termed as a clause bill of lading.

• Transshipment or Through Bill of Lading: - When the carrier uses other transport

facilities, such as rail, road, or another steamship company in addition to his own, the carrier

issues a through or transshipment bill of lading.

• Stale Bill of Lading: - A bill of lading that has been held too long before it is passed

on to a bank for negotiation or to the consignee is called a stale bill of lading.

• Freight Paid Bill of Lading: - When freight is paid at the time of shipment or in

advance, the bill of landing is marked, freight paid. Such bill of lading is known as freight bill

of lading.

• Freight Collect Bill of lading: - When the freight is not paid and is to be collected

from the consignee on the arrival of the goods, the bill of lading is marked, freight collect and

is known as freight collect bill of lading

Contents of Bill of Lading

• Name and logo of the shipping line.

• Name and address of the shipper.

• Name and the number of vessel.





39

• Total number of containers and packages,


• Container status and seal number.

• Gross weight in kg. And volume in terms of cubic meters.

• Amount of freight paid or payable.

• Shipping bill number and date.

Significance of Bill of Lading for Exporters

• It is a contract between the shipper and the shipping company for carriage of the

goods to the port of destination.

• It is an acknowledgement indicating that the goods mentioned in the document have

been received on board for the Purpose of shipment.

• A clean bill of lading certifies that the goods received on board the ship are in order

and good condition.

• It is useful for claiming incentives offered by the government to exporters

• The exporter can claim damages from the shipping company if the goods are lost or

damaged after the issue of a clean bill of lading.

Significance of Bill of Lading for Importers

• It acts as a document of title to goods, which is transferable endorsement and delivery.

• The exporter sends the bill of lading to the bank of the importer so as to enable him to

take the delivery of goods.

• The exporter can give advance intimation to the foreign buyer about the shipment of

goods by sending him a non-negotiable copy of bill of lading

Significance of Bill of Lading for Shipping Company

• It is useful to the shipping company for collection of transport charges from the

importer, if not collected from the exporter.

40

The custom procedure can be briefly explained as follows:

• Submission of Documents: The exporter or his agent submits the necessary

documents along with the shipping bill to the Custom House. The documents include:

O ARE-1 (Original and duplicate)

O Excise gate pass (Original and duplicate transporters’ copy

O Performa Invoice

O Packing List

O GRI form (Original and duplicate)

O Customs Invoice (where required in the importing country)

O Original letter of credit/contract

O Declaration form in triplicate

O Quality Certificate

O Purchase memo

O Labels

O License (if any required) including advance license copy

O Railway receipt/lorry way bill

O Inspection Certificate by Export Inspection Agencies

EXCHANGE CONTROL DOCUMENT

GR Form

• Exchange control document

• RBI has introduced the GR procedure

• The duplicate copy of GR form together with a copy of invoice will be retained by the

authorized dealer till full export proceeds have been realized and thereafter submitted to the

RBI.

41

PP Form

• PP form is another exchange control document. An exporter has to make a declaration

of PP form in case of exports to all countries by Parcel post, ‘except when made on “value

payable” or “cash on delivery” basis.

• It is used in place of Form GR.

PAYMENT DOCUMENT

Bill of Exchange

An instrument in writing containing an unconditional order signed by the drawer directing a

certain person to pay a certain sum of money only to or the order of a person or the bearer the

instrument.

Features:

• A bill of exchange is an instrument in writing.

• It must be signed by the maker or drawer. Unsigned document will not be legally

valid.

• It contains an unconditional order. There is no condition attached to it.

• The order must be to pay money only.

• The sum payable must be specific.

• The money must be payable to a definite person or to his order or to the bearer.

Parties to bill of exchange

1. The drawer: The exporter / person who draws the bill.

2. The drawee: The importer / person on whom the bill is drawn for payment.

3. The payee: The person to whom payment is made, generally, the exporter / supplier

of the goods.

42

Contents

1. Name and signature of the drawer

2. Name of the drawee

3. Name of the payee

4. Specified sum

5. Fixed date or determinable future date of payment

MISCELLANEOUS DOCUMENTS

Marine Insurance Policy

The following are different types of marine insurance policies:

• Specific Policy: This policy is taken to cover different risks for a single shipment. For

a regular exporter, this policy is not advisable as he will have to take a separate policy every

time a shipment is made, so this policy is taken when exports are in frequent.

• Floating Policy: This is taken to cover all shipments for some months. There is no

time limit, but there is a limit on the value of goods and once this value is crossed by several

shipments, then it has to be renewed.

• Open Policy: This policy remains in force until cancelled by either party i.e.

insurance company or the exporter.

• Open Cover Policy: This policy is generally issued for 12 months period, for all

shipments to one or more destinations. The open cover may specify the maximum value of

consignment that may be sent per ship and if the value exceeded, the insurance company

must be informed by the exporter.

• Insurance Premium: Differs upon product to product and a number of such other factors,

such as, distance of voyage, type and condition of packing, etc. Premium for air

consignments are lowered as compared to consignments by sea.

43

Bill of Entry

• The bill of entry is a document, prepared by the importer or his clearing agent in the

prescribed form under Bill of Entry Regulations, 1971, on the strength of which clearance

goods can be made.

• Bill of entry is a document.

• The bill of entry is drawn in triplicate.

44

CHAPTER 3. RESEARCH METHODOLOGY

Research in general refers to the search of knowledge. One can also define research as a

scientific & systematic collection of information.

In simple words research is the careful investigation or enquiry of markets especially through

search for new facts in any branch of knowledge.

The methodology adopted for the project was as follows:

Direct Consultation: This includes direct interaction with staff of the organization regarding

the problems that I encountered during the research.

Data Collection: Data was mainly collected from the internal reports of the company and

gathering further information. I have also referred to the various secondary sources.

RESEARCH DESIGN

Research design is the conceptual blueprint for collection, measurement and analysis of data.

Research design stands for advance planning of the methods to the adopted for collecting the

relevant data and the techniques to be used in their analysis keeping in view the objectives of

the research and the availability of staff, time and money. Two broad classes of research

design are identified as:

In case of exploratory research studies.

In case of descriptive in case of research studies.

The research design used in the project report is descriptive research design. A Descriptive

research design is a scientific method which involves observing and describing the behaviour

of a subject without influencing it in any way.

Research: Descriptive

Research Technique: Qualitative & Quantitative

Tools Used: E-mail & Telephonic

45

Data Source: Primary & Secondary

DATA COLLECTION METHOD

Data collection is the basic step and of importance on which authenticity of study depends.

Before going for the study the researcher have to collect the appropriate data required for the

study. Source of allocation of data are two types.

1. Primary Data

Handouts given by the company guide

E-Mail

Telephone

Questionnaire

2. Secondary Data

Packaging List

Shipping Bill

Website of Shivam Exports

Files maintained by the departments

Books and Journals

SAMPLE SIZE:

The sample size for the study was 100.

OBJECTIVE OF THE STUDY

The main objective of the study of the export procedure and documentation was to know how

goods are being exported from India to different countries of the world. What procedure do

they follow and which documents are required by the exporters to become legal and

authorized exporters of India.

Sub –Objectives:

To know about export import process.

46

To get the first hand experience in the field of manufacturing unit.

To study the transportation cost associated with different modes.

To know the requirement of the customer.

Toanalyse the current situation of export products.

To determine the total cost expensed on a single product.

JUSTIFICATION OF THE STUDY

This project is all about to know about export procedure and documentation required for

shipment. This project puts more focus on to know custom clearness, to make export invoice,

to get shipping bill number from custom department etc. This project also give due

importance to how a product is packaged properly to protect it from damage and for safe

shipment of it. The procedure involved in staring an export house with desired documents

and memorandum is also being studied in this project.

SCOPE OF THE STUDY

The scope of study pertains to the following:

The study comprises the understanding of Export Procedure and Documentation at Shivam

Exports

The survey consists of 100 respondents who are asked general questions relating to

export activities

The study helped to get an insight about the awareness of export activities among the

employees

LIMITATIONS OF THE STUDY

• Lack of Experience:I was new on the topic which was assigned to me. So lack of

experience in getting information from respondents came in to the way of

collecting the relevant data.

47

• Time: Time was a bit short to fathom into the depth of the study. But still all

efforts to the best possible extent have been made to collect the data.

• Data Collection Constraints:Since most of the data used is secondary in nature,

this poses the constraints on the validity and reliability of the data.

• Busy Employees:Employees are not available as are busy in their work

• Appointments:There was a problem in taking appointments from the managers.

• Sources: Sources were confounded some time to give proper information.

• Area: The office area was very congested.

48

CHAPTER 4. ANALYSIS AND INTERPRETATION

Q1: Nature of your company

Table no. 4.1

S.No. Options No. of Respondents

1. Manufacturing 30

2. Trading Company 20

3. Multinational Company 25

Figure no. 4.1

40%

30%

20%

Nature of Business

Manufacturing Trading CompanyMultinational Company

Interpretation:

Of the total, 40% employees believe the primary business of the Company is Manufacturing.

However, 30% and 20% believe it as trading and multinational company, respectively.

49

Q2: Extent of foreign ownership of your company

Table no. 4.2


1. No foreign ownership 90

2. Foreign partner(s) have less than or equal to 50% ownership

6

3. Foreign partner(s) have more than 50% ownership

4

Figure no. 4.2

0% Less than or equal to 50%

More than 50%0

102030405060708090

100

Foreign Ownership

No. of Respondents

Interpretation: Majority of the respondents agreed that there is no foreign ownership in the

Company.

50

Q3: Number of year of operation

Table no. 4.3


1. More than 40 years 80

2. Less than 40 years 16

3. Can’t specify exactly 4

Figure no. 4.3

Year of Operation

More than 40 yearsLess than 40 yearsCan’t specify exactly

Interpretation: Majority of the respondents know that the Company is operating since

1970’s.

51

Q4: Presence of the Company in major international retail chain stores

Table no. 4.4


1. Yes 75

2. No 25

Figure no. 4.4

Yes No0

10

20

30

40

50

60

70

80

Presence in Retail Chains

No. of Respondents

Interpretation: The survey proves that the Company occupies prominent shelf space of

major retail chains.

52

Q5: Awareness about international norms that are applicable for the Company’s products

Table no. 4.5


1. Yes 85

2. No 15

Figure no. 4.5

Yes No0

10

20

30

40

50

60

70

80

90

Application of International Norms

No. of Respondents

Interpretation: 85% of the respondents are aware of the fact that international norms are

applicable on the Company’s products.

53

Q6: Information about the changed or new regulation schemes for exports

Table no. 4.6


1. By domestic information sources 80

2. By foreign/international information sources 20

Figure no. 4.6

By Domesti

c Inform

ation So

urces

By Forei

gn In

formati

on Source

s0

20406080

Information About Changing Norms

No. of Respondents

Interpretation: Majority of respondents believe that domestic sources of information

provide all information related to changed or new schemes.

54

Q7: Mode of transport the Company uses the most

Table no. 4.7


1. Road 60

2. Ocean 30

3. Rail 10

Figure no. 4.7

Road; 60Ocean; 30

Rail; 10

Mode of Transport

RoadOceanRail

Interpretation: Most of the respondents observed that the Company uses road to transport

majority of its products.

55

Q8:Interest of employees in attending seminars on export?

Table no. 4.8


1. Yes 65

2. No 35

Figure no. 4.8

Interested in Seminars

YesNo

Interpretation: Only 65% of the respondents have shown interest in attending seminars

related to exports.

56

Q9: The level of exporting activity for the Company

Table no. 4.9


1. 50% or more of products are exported 55

2. Some of the product(s) are exported, but the Company is interested in exporting a higher share

35

3. Company is currently not exporting, but has interest in doing so in future

10

Figure no. 4.9

Exports 50% of products

Exports some of the products

Does't export at all

0

10

20

30

40

50

60

Level of Export Activity

No. of Respondents

Interpretation: Majority of the respondents believe that the Company exports about 50% of

its products.

57

CHAPTER 5. CONCLUSION & FINDINGS

5.1 FINDINGS

Most of the material used is imported which increases the cost, rather than exploiting

the local resources of Panipat.

More emphasis is on floor coverings while other products like curtains, bed coverings,

also seems attractive.

Demand of carpet is so high that capacityenhancement proves to be glamour.

Availability of all kinds of fibres like silk, cotton, wool and even high quality

synthetic fibres.

The organised sector is more developed than unorganised sector. The people who are

involved in weaving section or are related to home furnishing items are still using

traditional mode of producing carpets, rugs like pit loom. Due to this reason, these

unskilled labors lack behind in the development of not their professions but also in

their personal development.

58

5.2 CONCLUSION

Shivam Exports have a good location area in the vicinity of Panipat but it’s not able to

explore the city’s resources in an efficient manner. So it’s concluded that the

management has the finance available but it’s not able to invest in a right direction.

Therefore it should take in concentration the financial analysis of concern statement to

take appropriate decisions.

Textile industry in India has vast scope to grow as Panipat is the hub of textile

industries and there are many options available to manufacture textile products. Such

as weaving and designing. Shivam Exports is basically in weaving section. It’s

recommended to more into designing also which will increase the financial health.

Last but not the least this research work aims to gather the knowledge of financials

loo-pools of the company and in this research work I have contributed best of my

experience in Shivam Exports.

59

5.3 SUGGESTIONS

Shivam Exports should utilize Panipat vicinity resources so as to increase

employment opportunities as it has maximum export from Panipat.

Shivam Exports should concentrate on others products like curtains, bed coverings etc

to increase market share.

As according to its carpet demand it should increase its capacity so as to meet the

required demand in the market.

It should diversify itself to other than Panipat area also and should not mainly

concentrate on export & import.

Short term liability such as salary, wages should not be immediately paid. Time

duration of 10-15 days should be kept for the payment of these liabilities this will

increase the cast balance within the organization.

60

FUTURE DIRECTION OF THE RESEARCH

This study considers only studying the export procedures and documentation, which was

more descriptive rather than exploratory. I would suggest that further efforts can be made on

studying various export policies, incentives, subsidies offered by the Government.

The sample consists of only the executives of the textile mills while other employees can be

part of the study. It is important to have motivated employees to achieve the milestone set

by ,ithe organization by performing their duties and responsibilities so in future impact

should be seen on the motivation level of the employees.

Revise our policies and educate our big and small entrepreneurs regarding different

compliance requirements to the Textile industry. It would help the industry to upgrade their

production facilities and management systems in the changing world scenario, which

ultimately would enhance the image of the industry in international markets and would help

to boost of exports of Indian in Textile industry.

61

Date post:	10-Dec-2015
Category:	Documents
Upload:	deep-lath
View:	227 times
Download:	1 times