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MANIBA INSTITUDE OF BUSINESS MANAGEMENT, SABARGAM (SURAT) Page

A

PROJECT REPORT ON

“A STUDY OF GEMS AND JEWELLERY EXPORT”

Bachelor of Business Administration

[B.B.A]

Semester – 6th

ByUpadhyay Punit R

T.Y.B.B.ARoll No: 34

Supervising Teacher[Aatish Patel]

AMBABA COMMERCE COLLEGE &MANIBA INSTITUTE OF BUSINESS

MANAGEMENTSABARGAM

[MARCH - 2010]

MANIBA INSTITUDE OF BUSINESS MANAGEMENT (SABARGAM) SURAT


This is to certify that the project entitled ‘ A STUDY OF

GEMS AND JEWELLARY EXPORT’ submitted for the partial

fulfillment of the requirement of VEER NARMAD SOUTH

GUJARAT UNIVERSITY, SURAT in record of bonofide general

study work carried out by ‘PUNIT UPADHYAY’ under my

supervision. The project or any part of it has not been

previously submitted for any degree.

I/c Principal

Dr. Yogesh N Vansiya

Ambaba Commerce College & MIBM,

Sabargam

Date:

Place:



I declare that the project entitled ‘A STUDY OF GEMS

AND JEWELLARY EXPORT’ submitted for the partial

fulfillment of the requirement of VEER NARMAD SOUTH

GUJARAT UNIVERSITY, SURAT in record of bonofide general

study work carried out at Ambaba Commerce College &

Maniba institute of Business Management, Sabargam.

The project or any part of it has not been previously

submitted for any degree.

Signature of the Student

Punit Upadhyay

Date:

Place



Being the student of management programme,

only theoretical knowledge is not necessary but practical

knowledge also required and because of that reason we

have to visit an industry and have to take practical

knowledge and prepare report about the visit in the

industry.

I would like to thank the Dy.CEO of the unit

Mr. AJAY SHARMA and VIPUL PARMAR (Executive HR),

Premshankar ojha (P.R.O) other members of the unit who

co-operate with me not as a student but as a friend and

provide me all required information about their company as

well as their department. I am also thankful to the

Professors of Maniba Institute of Business Management

who gave valuable support during the training and

contributed in my progress. I am also thankful to my

parents for their best support. I continue to acknowledge

with gratitude the constant support and assistance received

from staff persons.

Last but not the least; I thank all my friends

for helping me directly or indirectly in getting exposure of

real time work environment, without which this project

would not have been accomplished successfully.

TABLE CONTENTMANIBA INSTITUDE OF BUSINESS MANAGEMENT (SABARGAM) SURAT

MANIBA INSTITUDE OF BUSINESS MANAGEMENT, SABARGAM (SURAT) Page MANIBA INSTITUDE OF BUSINESS MANAGEMENT (SABARGAM) SURAT


EXECUTIVE SUMMARY

Diamonds, gems and Jewellery have been a part of the

Indian civilization since its recorded history, the significance

of the gems and Jewellery industry in the Indian economic

scenario is a development of the last three or four decades.

In 1966-67, the export turnover of the Gems & Jewellery

industry was just Rs 220 m representing a 3 per cent of total

merchandise exports. However, it has now grown to become

one of the leading export oriented industries in India

recording an export turnover of around Rs 91617.53 Crore

during 2008-09, making it a significant foreign exchange

earner for the country.

The gems and jewellery sector, which has seen a substantial

fall in exports since 2007 due to the withdrawal of a 6 per

cent duty concession under the Generalized System 7 of

Preferences on jewellery exports to the US, has been

severely affected by the economic meltdown.



As a result, India’s share of gems and jewellery exports to

the US has come down from 36 per cent in 2006 to 20 per

cent in 2009.

The UAE was the largest importer of gems and jewellery

from India in 2008-09, with a share of 31 per cent.

This was followed by Hong Kong with a 25 per cent and the

US with 20 per cent. The gems and jewellery sector

accounted for 13 per cent of India’s total merchandise

exports.

During April 2009, the total gems and jewellery exports of

the country was $1,144 million, as against $1,740 million

during the same period last fiscal, a fall of about 34 per cent.



INTRODUCTION

Gems & Jewellery Sector

Diamonds, gems and Jewellery have been a part of the

Indian civilisation sinceits recorded history, the significance

of the gems and Jewellery industry in the Indian economic

scenario is a development of the last three or four decades.

In 1966-67, the export turnover of the Gems & Jewellery

industry was just Rs 220 m representing a 38 per cent of

total merchandise exports. However, it has now grown to

become one of the leading export oriented industries in India

recording an export turnover of around Rs 875 bn during

2006-07 and contributing 16 per cent of total exports,

making it a significant foreign exchange earner for the

country.



Classification:Gems & Jewellery Sector

1. Polished Diamonds: India is one of the best markets in

the world in the polished diamonds for its world-class

quality of diamonds as well as exquisite cutting skills. Over

83 per cent of India's Gems & Jewellery cut and polished

diamonds account for exports. Jaipur and Surat are famous

as world class polishing and designing centers.

2. Gem Stones: This category refers to the stones other than

diamonds, these stones comes under two basic categories

that are precious stones and Semi precious stones. There is a

huge demand for these gemstones especially of Sapphire,

Emerald and Ruby. India's exports of gems have crossed

5000000 carats this year.



3. Gold and Jewellery: This category represents the gold

and Jewellery, which is used in the manufacturing of various

ornaments. Indian is the country that is the 9 largest

consumer of gold in the world, In the year 2007 gold

consumption in India was 850 tons 33% up from the last

year.

4. Synthetic Stones: Synthetic diamond is diamond

produced through chemical or physical processes in a

laboratory. Like naturally occurring diamond it is composed

of a three-dimensional carbon crystal. Synthetic diamonds

are also called cultured diamonds. Synthetic diamond is not

the same as diamond imitation, which can be made of other

material. This is an upcoming market in India.



STATEMENT ABOUT THE PROBLEM

India has been one of the most important countries for the

production of Gems And Jewellery. One of the highlights is

the production of Studded Jewllery. Studded Jewellery

trading in India is age old as it is established by the fact that

in 1650 A.D., sources report the employment of more than

60,000 workers in the Eluru mines, where they dug and

washed the precious stones. Today though India has almost

no raw Studded Jewllery left within her own soil still we

produce 70% of the World gems in terms of quantity and

45% in terms of value. India is the original country which

discovered gems and initiated gem craft. The gems produced

here gave birth to a fabulous industry and global trade.

Indian Gems and Jewellery Industry have achieved a premier

position in the International market. Today India has been

recognized as a significant manufacturing exporting center

apart from its traditional strengths in handmade jewellery,

the country has niche for itself in machine made commercial

jewellery arena.



The export industry has come of age and is now entering a

new phase of development. Gearing up to achieve further

growth, the industry has already captured a 55% share of

world market by the turn of this century.

India is a primary source of imports for the developed

countries, mainly because of abundant availability of skilled

and cheap labor, but now this no longer remains the

competitive edge for India as heavy competition is faced by

various countries like China, Thailand and Sri Lanka. But at

the same time, India has managed to keep its position

healthy and have brighter prospects ahead.



LITERATURE REVIEWGEMS & JEWELLERY SECTOR IN INDIA

Gems and jewellery play a significant role in Indian customs

and traditions, making this sector integral to the economy

and one of the fastest growing industries in the country.

Worldwide, the gems and jewellery industry has been

growing at a good pace and is currently estimated at over

US$ 130 billion. In India, it accounts for nearly 20 per cent

of total Indian exports. It provides employment to 1.3

million people directly and indirectly.

Apart form being the world’s largest diamond processing

(cutting and polishing) country with an 80 per cent share in

world market India’s favorable trade policies have made

India the hub for gems and jewellery.

Leading Branded jewellery is the new mantra in the market,

having rapidly acquired a niche over the past few years.

Increasing purchasing power and disposable incomes of

India’s middle class has resulted in consumption growth of

this industry by about 11 per cent in the five-year period

preceding 2006-07. Add to that the insatiable Indian craving

for gems and jewellery, and the demand will skyrocket to

US$ 20 billion by 2010 and US$ 30 billion in 2015,

according to industry experts.



India’s gems and jewellery industry has been allowed 51 per

cent foreign direct investments by the government in single

brand retail stores attracting both global and domestic

players to this sector. The burgeoning retail industry in India

is instrumental in innovatively marketing and branding

diamonds and traditional jewellery, making inroads in this

sector and contributing to the nation’s economy. According

to a report released by Technopak Advisors on Changing

Retail Landscape in India, the jewellery and watches market

is pegged at about US$ 13.52 billion. It is expected to

register a 12 per cent growth by 2012, touching US$ 23.54

billion. India’s economic boom in the country has translated

into a large consumer market for jewellery and other luxury

products, offering a lucrative opportunity for major brands to

make their foray into the Indian market and establish their

presence. Experts believe that by 2013, India will become

the biggest consumer of jewellery.



The history of the Indian gem and jewellery, a $30-billion

industry, began and flourished in the two leading States of

Maharashtra and Gujarat. Exports from the industry fetched

$17.1 billion in 2006-07 against $16.64 billion in 2005-06,

showing a growth of 26 per cent. But in past 1 year we have

seen some decline due to recession. The journey of a

diamond is said to begin with mining of roughs followed by

sourcing them by trading firms after which they trade it with

the processors who then process the rough diamonds to

manufacture cut and polished diamonds which then end with

the trade of the polished diamonds.



Diamond processing

Today, India houses the worlds’ largest diamond processing

(cutting and polishing) industry with an estimated 1,000,000

processors. India processes over 57 per cent of the world’s

rough diamonds by value. It is said that 11 out of 12 stones

(diamonds) set in jewellery are cut and polished in India.

Surat in Gujarat is home to a majority of these diamond

processors. India’s exports of cut and polished diamonds in

calendar year 2008 stood at Rs 48,905.57 crore or 349.389

lakh carats down 9.25 per cent from Rs 53,892.02 crore or

419.9 lakh carats during same period in 2007.

Processing is done on rough diamonds in full range of sizes

and qualities, including stones larger than 10 carats.

Diamond trading hub

After making its mark in the world diamond processing

industry, the industryfraternity has taken up the motto to

make ‘India the diamond trading hub’. Thus Mumbai, the

financial capital of the country, is said to be Indian Antwerp

in the making.



The current format of diamond trade has four different types

of channels involved in the sourcing and trading of

diamonds namely, centralised distribution, direct selling,

rough trade and brokerage.

Bharat Diamond Bourse, a service oriented non-profit

guarantee company, is an 18 lakh sq. ft. complex in Mumbai.

It was set up with the primary objective of establishing

necessary infrastructural facilities for promotion of export of

diamonds, including jewellery from India and to make India

an international trading centre. Instituted to cater to all the

needs of the diamond trade, the bourse is anticipated to deal

with over 30,000 people a day. The facilities here will

include offices of diamond traders, strong rooms, lockers,

customs clearance facilities with all the modern facilities

required to carry day-to-day business.

High-end jewellery

As the gem and jewellery companies are based out of

Mumbai, the city is home to various types of jewellery from

the traditional to the high-end designer fashion jewellery. It

is one of the largest producers and exporters of jewellery,

which is estimated to be over $13 billion. Prominently, it

accounts for over 15 per cent of the world jewellery

fabrication pie.



Not only this, India is one of the fastest growing markets for

jewellery, growing at the rate of 10.20 per cent per annum

over the last five years. Today, the Indian consumer market

for jewellery is said to be $13.1 billion, an increase of close

to 8 per cent over the previous year.

A study by KPMG says that India is set to realise total

jewellery sales of $21 billion by 2010 and $37 billion by

2015. Currently, out of the eight key world retail markets,

the US is number one accounting for 31 per cent of the

jewellery sales. India and China follow with 8.3 and 8.9 per

cent respectively. According to the KPMG study, India’s

growing importance in the global jewellery market is only

expected to increase in the future. The total demand is

expected to reach $18.25 billion in 2010 and to $ 28.28

billion in 2015. Diamond jewellery consumption in India is

estimated to jump by 78 per cent in 2010.



Forecast

India and China together are predicted to emerge as a market

equivalent to that of the US by 2015, according to the

KPMG report on the global gems and jewellery industry

– Vision 2015: Transformation for Growth. The industry can

see capital infusion of around $ 10 billion, according to

experts.

As per forecasts, by the year 2015, the industry will witness

a good fragmentation in the jewellery retail business while

keeping the area of diamond mining, sourcing, processing

within the confines of either niche or mass players. Mining

is at the heart of the gem and jewellery industry as the

activity is the only natural source of raw material for the

industry. The Geological Survey of India has stated that

India has a great potential for diamond deposits.

Based on this and independent analyses, some of the

diamond exploration companies are making efforts to make

India another target destination for diamond exploration.

Maharashtra features on the list of potential states for

diamond exploration.



The Gem and Jewellery Export Promotion Council (GJEPC)

is primarily involved in introducing the Indian gem &

jewellery products to the international market and promoting

exports. To achieve this, the Council provides market

information to its members regarding foreign trade inquiries,

trade and tariff regulations, import duties, and information

about jewellery fairs and exhibitions. It also takes up

relevant issueswith government and agencies connected with

exports and submit documents for

consideration and inclusion in the EXIM Policy. There are a

lot of opportunities from setting up factories to retailing

through showrooms for a prospective investor



Gems and Jewellery/ Background

The two major segments of the gems & jewellery (GJ)

business in India are gold and diamond jewellery. The GJ

industry has an important role in the Indian economy. While

a predominant portion of gold jewellery manufactured in

India is for domestic consumption, a large portion of rough,

uncut diamonds processed in the form of either polished

diamonds or finished diamond jewellery is exported. With

an estimated consumption of around 800 tonnes during 2007

(including jewellery consumption),



India is the largest consumer of gold in the world. India is

also estimated to hold nearly 14,000 tonnes of gold,

accounting for nearly 9% of the world’s cumulative mine

production. Apart from its historical religious significance,

gold is valued as an important savings and investment

vehicle.

Gold in Indian families remains the Indian bride’s

`Streedhan’, the wealth she takes with her when she marries

and which remains hers. Gold jewellery is the preferred

jewellery worn by women in India irrespective of their

religious beliefs. Gold jewellery is very popular among

farmers, with an upsurge in gold sales after a good

agricultural season. Buying of gold is also an important part

of every stage of an Indian citizen’s life—at birth, marriage,

construction of home, festivals, religious ceremonies, setting

up of new business, and death.



SIZE

Large market for Gems & Jewellery with domestic sales of

over $10 billion

4% of the global Gems and Jewellery market

Exports of over US $15.5 billion; over 18% of India’s

exports. According to recent statistics of the Gems &

Jewellery Export Promotion Council (GJEPC), India's

exports of gems & jewellery (GJ) aggregated

Rs. 18787.09Crores

(US$4558.64million) during the month April-May-

09.

India is the largest consumer of gold jewellery in the world

Accounts for about 20% of world consumption

India is the largest diamond cutting and polishing centre in

the world, i.e., 60% value share, 85% volume share and 92%

share of the world market by number of pieces

The Indian domestic diamond jewellery market was

estimated at around Rs. 76 billion during 2005.

China ranks sixth in the world in terms of diamond

jewellery retail value, ahead of India which is in seventh

place. India ranks third in terms of diamond value, while

China holds the seventh position.

Indian diamond jewellery industry is the third largest

consumer of polished diamonds after USA and Japan



Structural Characteristics The Indian Gems & Jewellery industry is highly fragmented

with a large.

number of domestic private sector companies. The bulk of

the GJ industry in India is concentrated in the unorganised

sector.

The majority of India’s diamond workforce is employed by

small units thatprocess diamonds on a job-lot basis. The

number of gold jewellery manufacturing units is put at 0.1

million.

India is the largest diamond cutting & polishing centre in the

world, followed by Israel and employs an estimated 2

million workers serving over 0.45 million goldsmiths, and

around 0.1 million diamond processing units.

India has several well recognised strengths which have made

it a significant force in the global Gems and Jewellery

business, like i) highly skilled, yet lowcost labour, and ii)

established manufacturing excellence in jewellery and

diamond polishing.



POLICY

In 1990, the Gold (Control) Act was abolished, which had

forbidden the

holding of gold in bar form.

In 1993, the GOI also permitted non-resident Indians (NRIs)

to bring 5 kg of gold into the country twice yearly on the

payment of import tax of Rs. 250 per 10 grams; this

allowance was raised to 10 kg per trip in January 1997. In

1997, the GOI also permitted import and export of gold

under Open General Licence.

In the trade policy (2004-09) issued in April 2006, the GOI

has allowed

import of precious metal scrap and used jewellery for

melting, refining and reexport of jewellery for higher

utilisation of melting, refining and jewellerymaking

production capacity.

Jewellery is permitted to be exported on a consignment

basis, allowing.



exporters who have had to deal with the problem of unsold

jewellery in foreign markets to now re-import the unsold

pieces. steps taken include allowing exporters to re-import

the rejected precious metal jewellery subject to refund of

duty exemption benefits on the inputs only and not the duty

on jewellery as was being done earlier; reduction in value

addition norms for export of gold & silver jewellery from

7% to 4.5%.

100% FDI is permitted in the Gems & Jewellery sector

through the automaticroute

SEZs and Gems and Jewellery Parks have been set up to

promote investments in the sector

Cutting and polishing of gems and jewellery treated as

manufacturing for the purposes of exemption under Section

10A of the Income Tax Act



Outlook India is the fastest-growing jewellery market in the world

Branded jewellery likely to be the fastest-growing segment

in domestic sales

The sector is expected to grow at 40% p.a. to $2.2 billion by

2010

Exports expected to grow from $15.5 billion in 2005 to over

$25 billion by 2010

India is the most technologically advanced diamond cutting

centre in the

world and has the opportunity to address one of the world’s

largest and fastestgrowing Gems and Jewellery markets

Indian industry has been gaining prominence as an

international sourcing

destination for high quality designer jewellery

Wal-Mart, JC Penney etc. are increasingly procuring

jewellery from India.



About Surat special Economic Zone

(SurSez):-

Surat Special Economic Zone was established in 1st

November 2000 and is the first and so far only SEZ in non-

Govt.sector in operating form in the country. Chances have

placed it to remain so for the next 4 years. SURSEZ is

located in Surat city with respect to communication and

logistics is highly favorable. It is next to Sachin railway

station and is within 25 minutes by road to the National

Highway, Magdella seaport and Surat airport. Mumbai is

just 3½ hours journey by train. Telecommunication system is

good.



The Key Plan Location Map SuRseZ

The Zone and the unit-owners therein, enjoy effective and

efficient patronage and support of the Developers who being

in private sector have the ability to take on the spot decisions

and for whom this Zone is the most prestigious project. The

success of the Zone is their success and vice-versa and

hence, their full commitment is guaranteed.



For the effective management of the Zone there is a team of

professional managers headed by the Chief Executive

Officer in the Zone. SURSEZ has got full-fledged office to

render all possible help to the prospective unit holder.

SURSEZ is an operational Zone with infrastructure like

roads, water supply, drainage, power supply etc. already in

position over a major part of the Zone. For the remaining,

process is on for completion. Around 50 units are in

operation, 161 more units got approval (as on 31.3.2004)

Exports in first 4 years is more than Rs 1600 Crores.



SURSEZ has open developed plots for entrepreneurs to set

up their units. It has also ready buildings to be given on

long-term lease or rental Already, a large number of units are

operating. They are in various types of activities - diamond

cutting and polishing, jewellery manufacturing, textile

machinery, etc. Then, there are large numbers of units in the

process of being set up. Trading units in big numbers are

also operating and many more are in the process to

commence their business. The export performance from the

Zone has been already rate excellent. Rs.862 crores exports

have been recorded during the last financial year (2003-04).

SURSEZ is the main strategic business unit of Diamond and

Gem Development Corporation Limited (DGDC).



The organization is endowed with multi-faceted

characteristics. Mr.S.N.Sharma, Chairman and Managing

Director of the group is strongly supported by experienced

pillars in their respective fields. The organization practices

customer orientation at every stage and at all times. The

organization structure defines the functional responsibilities

of Managerial, Technical and non-technical resources.

Surat Special Economic Zone is a multi product zone. All

types of non polluting industries are welcome to set up units

in Zone. A Manufacturing, Trading and Service unit can be

set up in the zone. At present more than 100 units are

operating and exporting to various countries all across the

globe. Major categories of units in operation are from

Textiles, Garments, Made ups (pillows, quilts, bed sheets,

etc), IT Hardware, Engineering Goods, Pharmaceuticals,

Chemicals, Gems & Jewellery, Diamond, Tobacco, etc.

Various industries are flourishing because of the location

advantages, Cost effective peaceful industrial friendly labor

available in abundance for all industrial sectors and excellent

infrastructure provided in the Zone.



Since the Special Economic Zone is still at an infant stage,

every one is to be trained. Realizing the importance, the

organization recruits professionals and intensive training

facilities are extended to every one in the areas of policies,

incentives, customer relations and time management. In

short, the whole team is constantly forging ahead in order to

reach excellence in its mission.

Supporting facilities are given special attention. For

example: Off-shore Banking Units are in the process of

being set up .For Gold Supply to jewellery manufacturers,

MMTC has an operating unit. A Jewellery Training Centre is

set up, is to provide trained artisans to jewellery units.

SURSEZ also is conscious of the social life of the people.

For that, there is an English-medium School. Shopping

Complex and residential houses are already in position. Club

and other social amenities are in the process of being set up.



Board of Director


Board of Director

Mr. N.K Maheswari (Executive Director)

Mr. S.N Sharma ( CHAIRMAN)

Mr. Praveen Sharma

(Director)

Mr. G.L Mathur (Director)

Mr.C.S Acharya (Director)


Facilities Of SurSez

Facilities of Surat SEZ has been a real patronage to

those who aspired to set up their units in the sectors in Surat

special economic zone. By providing the maximum

beneficiary programs, Surat SEZ has acquired few most

effective and efficient large-scale units funded by various

industries.

Surat SEZ is an ISO 9001:2000 certified zone. One of the

biggest facilities of the Surat special economic zone is that,

it renders duty-free enclave to the proposed units in the zone

as thereby is claimed to be known as foreign territory in

terms of trading operations as well as other duties and tariffs.



All the units in Surat special economic zone is absolutely

exempted from central sales tax and service tax and sales in

the Surat SEZ are eligible for draw back and the benefits

offered by DEPB. The units in the special economic zone of

Surat are also privileged to estimate the cost of capital

goods. Another very important incentive offered by Surat

SEZ to the investors is that, the units are allowed to

undertake any job work or activities related to export

production on behalf of the domestic exporters and export

them directly to the deserved places from the special

economic zone on behalf of domestic exporters itself.

The units in Surat SEZ are enjoys total exemption from

duties, levies, industrial license requirement, and also input

or output rules and regulations. SEZ unit in Surat permits the

work from DTA units as well. The capital goods that are

being imported by Surat special economic zone units enjoy

capitalization after every 10 years.



Some of the benefits offered by section 10 AA of IT

Act include Corporate Tax holiday on export profits for 15

years which can be classified as, 100 percent for first 5

years, 50 percent for the next 5 years and up to 50 percent

for the remaining 5 years which equals the profits for

investment.

The import of capital goods, raw materials, consumables

supplies, and many more enjoys the maximum benefits

among all other activities as they are absolutely excluded

from paying any customs duty and central excise duty at the

procurement of the same from local market. Setting up of

units and maintenance of the same also enjoys the benefits of

these tax exemptions on the sector. The import and export

transactions are permitted for the self-certification benefit.

The state government has also designed a number of

beneficiary acts as one of the Facilities of Surat SEZ.

A special SEZ Act is enacted by the state government

that determines exemption from payment of stamp duty and

registration fees on all its activities as well as on the

agreements concerning Surat SEZ. The unit does not have to

pay any electricity duty as well and is subjected to public

utility services.



One of the best facilities of Surat SEZ is its infrastructural

balance. The zone is located in an eco-friendly area that has

helped the zone to remain connected with the major

commercial corners of the state. It renders all kinds of

infrastructural facilities possible such as sufficient water and

power supply, electricity and street lights, clear water

drainage system and so on. 100 percent foreign direct

investment is entitled to the manufacturing sector in the

Surat SEZ and this has been a major benefit for the

upcoming units in the Surat special economic zone.



Surat SEZ Units



SuRSEZ is a multi product SEZ .It houses industrial units from a wide range of

industries - both Manufacturing and Service Providing companies.

Some of our esteemed clients are:

I) Diamond & Jewellery:

i) Adorn Gioielli

ii) Adani Exports

iii)Allianza Jewels

iv) Gitanjali Gems

v) Gem Star Co Pvt Ltd

vi) Kiran Jewellry

vii) Sheetal Jewellry

viii) Zaveri Exports

i) Flexit Laboratories Pvt Ltd. (High Performance SPE Product)

ii) Himson International (Textile Machinery)

iii) PEASS Exports Ltd (Textile Machinery)

vi) Schurter Electronics(Glass Fuses)

III) Textiles :



i) Ginza Industries (knitted Fabrics)

ii) Priyank Cord & Tassels Ind.Ltd (Cords & Tassels)

iii) Sky Industries Ltd (Woven / knitted Elastic) iv) Tabrez Impex

v) Textrade Intl. Pvt.Ltd. (Bed sheets & Towels)

IV) Others :

i) Flair Impex Corporation (Writing Instruments, Pencils etc) ii) Mc Coy Drugs Pvt Ltd.(Quinine Sulphate,Quinine Bi Sulphate)

iii) Pidilite Industies (FMCG)

iii) Repro India Ltd ( Books Manufacturing)

iv) Waaree Energies Pvt Ltd (Solar photovoltaic panels)



Surat SEZ Units deals with all kinds of non-polluting

units and this has made it a multi-product zone. Surat special

economic zone is one having the most efficient and revenue

earning zones in the state. The units in Surat SEZ enjoy the

maximum benefits and no hazards at the time of its operation

A wide range of industries can be set up in the special

economic zone of Surat if it is non-pollutant. Surat special

economic zone renders duty-free enclave to the proposed

units in the zone as thereby is claimed to be known as foreign

territory in terms of trading operations as well as other duties

and tariffs. All the units in Surat special economic zone enjoy

total exemption from central sales tax and service tax and the

sales units in Surat special economic zone are eligible for

draw back and the benefits offered by DEPB. The units in

Surat SEZ can estimate the cost of capital goods and also it

can take up any job work for domestic exportation from the

special economic zone in Surat. The three kinds of units that

can be set up in Surat SEZ include manufacturing, trading,

and service unit.

The major categories of units in Surat special economic zone

that are in operation of late range from textiles, garments,



Made ups which comprise of pillows, quilts, bedsheets, etc,

Information technology components such as Hardware,

goods on technology and engineering, pharmacy and

pharmaceuticals, Chemical substances, Gems & Jewelery,

Diamond processing, Tobacco production, and etc. Currently,

the Surat special economic zone is operating around 120

units along with the export production all across the world.

The huge number of benefits that are being offered to the

Surat SEZ Units both by the SEZ as well as the state

government have made it a flourishing zone for all the units

especially in the industrial sector. The location of the Surat

SEZ is highly beneficial for the units in Surat SEZ as it is

being placed in an area, which is very near to the center of

the Surat city.

Cost-effectiveness is another very important facility enjoyed

by the units of Surat SEZ along with an eco-friendly

environment and highly skilled working class for the

execution of various industrial projects. The labor unit in the

Surat SEZ is filled with highly potential workers who are not

only hard working but also intellectually strong. Surat SEZ



Units are known to be one of the most flourishing units in the

state and this has contributed in the fame of the special

economic zone of the state. Furthermore, the huge number of

welfare programs designed for the Surat SEZ has been

playing a major role in its booming success.

Export Procedure:

Export procedure consist of several

commercial and regulatory formalities which an exporter is

required to complete during the course of trade transactions.

These formalities are very complex and time consuming and

involve considerable documentation. Hence , exporter must

have adequate knowledge of such formalities. At the same

time, it should be ensured that rules and regulations of not



only exporting country but also imported country are duly

complied with it should be ensure that all the required

documents whether commercial or regulatory are prepared

and field with appropriate authority.

An export procedure can be studied under the following

areas;

a) Registration stage

b) Pre- shipment stage

c) Shipment stage

d) Post-shipment stage

A) Registration stage :-

The exporter is require to register his organization

with number of institutions and authorities which

directly help him in the smooth operation of export

The registration stage include;

Registration of the organization

Opening bank account



Obtaining IEC number

Obtaining PAN number

Obtaining Sales Tax number

Registration with export promotion council

Registration with ECGC

Registration with other authority

B) Pre-shipment stage :

Pre-shipment stage consist of following steps;

Approaching foreign Buyers

Inquiry and offer

Confirmation of the order

Opening Letter of credit

Arrangement of Pri-shipment finance

Production of goods

Packing and marking

Pri-shipment inspection

Central excise clearance



Obtaining insurance cover

Appointment of C & F (clearance

&forwarding)

C) Shipment stage

Export cargo can be exported to the

overseas buyer by sea, air land. However ,

shipment by sea is most popular and generally use

method because it is comparatively cheaper.

Beside, the ship capacity is far greater than other

mode of transportation. Transportation by Air is

utilized for export of expensive products like..

Diamond, Gold etc.

the shipment stage includes following steps



Reservation of shipping space

Arrangement of internal transport up to port

Preparation & processing of shipping

documents

Customs clearance

Obtaining carting order from the port trust

authority

Custom’s examination & issue of “ late

export order”

D) Post-shipment stage:

Submission of documents by C & F agent to

exporter

Shipment advice to importer

Presentation of document to the bank for

Negotiation

Dispatch of documents

Letter of Indemnity

Realization of Export proceed

Processing of GR form

Realization of export Incentive



Export Documentation :

The following Document Need for export The product

Which are as follow..;

Performa invoice

Packing list

Shipping instruction bill

G.R form

Intimation of inspection

Certification of inspection quality control

Insurance certificate

Mat receipt

Certificate of origin

The some Detail about Document of Export process

Which explain as follow with detail…

1) Performa invoice:-

The starting point of the export contract is in

the form of offer made by exporter to the

foreign customer. The offer made by exporter is

in the form of performa invoice, it is a quotation

given as a reply to inquiry . it normally forms

the basis off all trade transaction.

Contant of proforma invoice:-



Name & address of exporter

Name & address of Importer

Made of transportation

Name of port of loading

Name of port of discharge & final destination

Provisional invoice no. & date

Exporter reference number

Importer reference number

Name of the county or origin of goods

Name of country of final destination

Marks & container number

Number of packing disription

The following formate…..






Same above shipping bill formate copy

triplicate…




SurSez Export Product





Date post:	30-Mar-2018
Category:	Documents
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