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A Project study Report On Training undertaken at KEJRIWAL INDUSTRIAL CORPORATION Titled A Study of Peoples Perception about Export Business

Submitted in partial fulfillment for the Award of degree of Master of Business Administration

Submitted by: Himanshu Bohra M.B.A 3rd SEM (2011-2013)

Submitted to:FMS,MAIET,JAIPUR (DIRECTOR)

Lachoo Memorial College OF Science & Technology, Jodhpur


Management wing

CERTIFICATE FROM THE COMPANY

Preface /Prelude:

Previously, the handicraft export was not very complicated and people did not face many problems. There was around 35% to 40% profit margin in business but now it has come down to just 20% to 25%. Due to change in environment the entire Handicraft export structure has undergone a major change. As part of the economic reforms, export industry has been deregulated and made competitive. Due to exposure to global trends after Information explosion led by Internet, customers- both Individuals and Corporate - are now demanding better services with more products from their sellers. And after good services the main problems of handicraft exports are Recession, slow down, lack of capital & competition. The problems like recession which came in 2010 and 2012 have changed the total mood of the handicraft export. In the global market there is no order for the exporters and that has become a big problem in front of handicraft export. Without any order, no export and no sale this is just like hell for the exporters and the handicraft export business. Another problem is a cut-through competition in the handicraft export. There are lot of export firms in Jaipur and Jodhpur and the Shekhawati area of Rajasthan. There is a big competition between the export firms and they are ready to do the export at lowest competitive price. The philosophy of a customer being king is driving the financial markets as well. Accordingly, it is no more customers chasing the products; it is the appropriateness of options chasing the customers. This study is an attempt to view the problems faced by handicrafts exporters in quantitative form.

Acknowledgement:

I express my sincere thanks to my project guide, Mr.Amit Shrivastava Mahrishi Arvind institute of Engineering & technology , for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project. I would also like to thank Mr. Om Prakash Kejriwal, (Owner of Kejriwal industry) for their help and cooperation throughout my project.

( Himanshu Bohra

Index

S.No. 1 2 3 4 Chapter-I Chapter-II Chapter-Ill Chapter-IV

Content

Page No.

Certificate from the Company/Organization Preface/Prelude Acknowledgement Executive Summary Introduction to the Industry Introduction to the Organization Export industry and Indian exports Research Methodology 3.1 Objective of Study 3.2 Type of Research 3.3 Sample Design 3.4 Data Collection 3.5 Limitation of Study

Chapter-V 4. Facts and Findings Chapter-VI 4. Analysis & Interpretation Chapter-VII 7. SWOT Chapter-VIII8. Conclusion Chapter-IX 9. Recommendation and Suggestions Chapter-X Chapter-XI

Appendix Bibliography

Executive Summary:

This project has been made to study the basic problems and analyze factors which affect the exports of handicraft in Jaipur. This project is totally depending on exporters opinion about the determinants of export problem in this recession time. For defining the research problem clearly, firstly it was decided to conduct the research in the area of export. As today many export firms and export houses are opening in the city, so it was thought of determining the factors influencing the problems and chances of handicraft export through exporters and buyers opinion. In this research it was needed to find out the characteristics of variables effecting handicraft export, so this is descriptive and quantitative research. Sampling technique for selecting the sample in which convenience sampling method has been applied because I didnt have sufficient time, money and could not have put lot of efforts. Sample consists of all those people who are working in export firm, exporters and managers of the company. Interrogation through schedule interview has been used as a data collection technique and questionnaire is a data collection instrument which is openended. Tabulation was done after getting these questionnaire filled from respondents. Then tables were analyzed to reach the conclusion that environment in the export firm is the most attractive feature in it, buyers generally prefer to do the business of handicrafts in the export sector and their most preferred location of export firms is in jaipur and Jodhpur.

INTRODUCTION TO THE INDUSTRY

Introduction to the Industry:

India is famous for its wooden handicrafts, traditional crafts, antique items and textiles. People all round the globe but textiles online as silk fabrics, textiles, yarns, bedspreads, bed sheets, bed linen from Indian handicraft manufacturers and suppliers. These traditional handicrafts have a huge demand and so are supplied and shipped all over the world. People from across the world, buy textiles and handicrafts from Indian handicraft and Textile exporters and suppliers. Indias rich cultural diversity and heritage provides a unique and huge resource for developing Handicraft products. The Indian Handicraft Industry is showing continuous growth rate of 20% every year. The Handicrafts industry is one of the important segments of business sector in India. The Indian Handicraft Industry is a $100 billion industry worldwide. Handicrafts suppliers industry comprises of varied products and there is large variety available in market. We Supply Handicrafts products as Glass products, Metal ware, Wooden handicrafts , Hand printed textiles, Embroidered and crocheted goods, Shawls, Carpets, Bamboo products, Giftwares, Jewellery, Paintings, Earthenware, Jute products, Marble Sculpture, Bronze Sculpture, Leather Products and other miscellaneous handicrafts. All useful Information regarding list of Indian handicrafts manufacturers and exporters can be easily found at Deal4trade.com The export business has its foundation in history. The sending of goods from one country to another country is called exporting. Today the world has become totally interdependent on the export business. There are several reasons for this growth in the export business. Countries need goods from other companies to meet their domestic needs so they import them. Countries have a surplus of goods so they export them. This is the crux of exporting.

Today all the countries of the world are intertwined in the export business. Each is dependent in some ways on the exports of another country. This intern connectivity of exports is what forms the backbone of global finance. The inter-dependence of trade between countries has increased so much that no country can survive without its export industry. Deal4trade.com: offers online business directory and yellow pages of Indian & foreign manufacturers, exporters, suppliers, importers & service providers and find quality products, trade leads, manufacturers, suppliers, buyers and wholesalers.

The Middle East countries have oil, and the biggest consumers of oil are western countries. So the Middle East exports oil to the western countries. Similarly America and Europe are the biggest consumers of coffee. But coffee grows in Africa, Latin America, West Indies and Hawaii.

These countries export coffee to the countries where there are coffee consumers. Cars, buses, and trucks are manufactured by Japan, European countries and America. These are exported to countries around the world. So from these examples you see that countries are dependent on other countries to export their goods too. So governments of countries see what their export products are and who to export them to. This forms the export industry for that country. Countries export those products that they have in surplus supply with them. They find which countries need these products and export it to them. Today China has become one of the biggest exporters of goods that range from garments to defense systems. The reason is that labor is cheap in China so they are capable of making goods at a low price and exporting them. Their economy has grown tremendously since they have entered the export business. Japans entire economy has developed on the export business. Although Japan is not rich in raw materials, they purchase raw material from other countries, turn them into finished products and export them. Industries in countries that only produce goods for export are known as an export industry. Previously only goods used to be exported, but in todays world services are also exported. Countries export their manpower to other countries that have a shortage of workers. Hence the export of manpower has also become big business, especially for third world countries.

INTRODUCTION TO THE COMPANY

Introduction to the company:

This is Kejriwal Industrial Corporation. It is an export unit under the group of Kejriwal Industries. The owner of group of Kejriwal industries is Mr. Om Prakash Kejriwal. The Kejriwal industrial corporation was established in the year 2004. The group of Kejriwal industries has different branches which deal in timber and hardware, paints, plywood etc. This company has their branches mainly in Jaipur and Jhunjhnu. The Kejriwal industrial corporation is located in Sitapura in Jaipur. The core work of this firm is to produce the furniture and handicraft and to export them to the global market. The annual turnover of this company is around 30 millions. This company was established in determine to provide the best quality of items and better services and very competitive prices to the overseas buyers. The company never compromises with quality and the main Moto of the firm is to provide the best quality at reasonable prices. It is an export oriented firm. The company provides airport to airport services to foreign buyers who come for visit to the company. This company takes care to buyer of every aspect during his visit. This company deals in timber business, wooden, iron, marvel, furniture and handicraft. To manufacture the items company needs different types of materials like raw wood,

adhesives (fevicol), glue , different type of nails , sending materials , hardware & fittings , different decorative parts and items and different type of machines used in this. In machinery there are two type of machinery first is big and fixed machinery and second is handy tool. Big and fixed machinery are available from Gujarat and Punjab state. There are many companies they make hand tool like Boss, K.P.T, Wolf etc. and these are available all over India.

Raw and other materials, raw wood are the main material. Company purchases their most of good mainly from Bihar, U.P, Nepal and all other materials are easily available in local market. After arranging all the other materials and the raw materials the company makes the production of the items as per instructions and specifications received from buyer. As soon as the unit is complete, it goes to the polish and finishing department for the coloring and finishing. Then it goes for finial quality control and for packing. Consignments are sent to U.S.A, U.K and over the Europe. Company sent most of the consignments on latter on credit or advance and document against payment basis. So this is about the company that is an export firm which deals in different foreign countries.

COMPANYS VISION:
To provide better services & better products to customer all over the world with traditional look, team spirit and dignity of labour to face the global competitive challenges.

COMPANYS MISSION:
To evolve and develop skills for effective delivery of services and products Management should groom and train their staff properly and according to the global Market so that company could stand, achieves the goal and can make a brand name Highlighted in global market.

COMPANY INFORMATION:

Director: General Manager: Production Manager: Export Manager: Quality Controller: -

Mr. Om Prakash Kejriwal Mr. Abhay Banerjee Mr. Naveen Sharma Mr. Suresh Mehta Mr. Parvej Khan

MAJOR COMPETITORS:

INDIAN ART CORPORATION HARITAGE EXPORTS ANITQUES J.C ART EXPORTS DARSHAN ART EXPORTS

EXPORT INDUSTRY & INDIAN EXPORTS

EXPORT INDUSTRY & INDIAN EXPORTS:

What is export?
In economics, an export is any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade. Export goods or services are provided to foreign consumers by domestic producers. Export is an important part of international trade. Export of commercial quantities of goods normally requires involvement of the customs authorities in both the country of export and the country of import. The advents of small trades over the internet such as through Amazon and e-Bay have largely bypassed the involvement of Customs in many countries because of the low individual values of these trades. Nonetheless, these small exports are still subject to legal restrictions applied by the country of export. An export's counterpart is an import.

History of export:
The theory of international trade and commercial policy is one of the oldest branches of economic thought. Exporting is a major component of international trade, and the macroeconomic risks and benefits of exporting are regularly discussed and disputed by economists and others. Two views concerning international trade present different perspectives. The first recognizes the benefits of international trade. The second concerns itself with the possibly that certain domestic industries (or laborers, or culture) could be harmed by foreign competition.

Process:
Methods of export include a product or good or information being mailed, hand-delivered, shipped by air, shipped by boat, uploaded to an internet site, or downloaded from an internet site. Exports also include the distribution of information that can be sent in the form of an email, an email attachment, a fax or can be shared during a telephone conversation.

National regulations:

United States:
The Bureau of Industry and Security (BIS) is responsible for implementing and enforcing the Code of Federal Regulations Title 15 chapter VII, subchapter C, also known as Export Administration Regulations (EAR), in the United States. The BIS regulates the export and export of most commercial items. Some commodities require a license in order to export. There are different requirements to export lawfully depending on the product or service being exported. Depending on the category the 'item' falls under, the company may need to obtain a license prior to exporting. EAR restrictions can vary from country to country. The most restricted destinations are the embargoed countries and those countries designated as supporting terrorist activities including Cuba, North Korea, Sudan, Syria and Iran. Some products have received worldwide restrictions prohibiting exports. An item is considered an export whether or not it is leaving the United States temporarily, if it is leaving the United State but is not for sale (a gift), or if it is going to a wholly owned U.S. subsidiary in a foreign country. A foreign-origin item exported from the United States, transmitted or transshipped through the United States, or being returned from the United States to its foreign country of origin is.] How an item is transported outside of the United States does not matter in determining export license requirements. Refer to U.S. Census Data for data on exports by industry for 2006.

Canada:
Canadian Export and Import Controls Bureau (EICB)

Australia:
Australian Defense Trade Control and Compliance (DTCC)

Barriers:
Export barriers are generally defined as government laws, regulations, policy, or practices that either protect domestic products from foreign competition or artificially stimulate exports of particular domestic products. While restrictive business practices sometimes have a similar effect, they are not usually regarded as trade barriers. The most common foreign trade barriers are government-imposed measures and policies that restrict, prevent, or impede the international exchange of goods and services.

Strategic:
International agreements limit trade in, and the transfer of, certain types of goods and information e.g. goods associated with weapons of mass destruction, arms and torture. Examples include Nuclear Suppliers Group - limiting trade in nuclear weapons and associated goods (currently only 45 countries participate), The Australia Group - limiting trade in chemical & biological weapons and associated goods (currently only 39 countries), Missile Technology Control Regime - limiting trade in the means of delivering weapons of mass destruction (currently only 34 countries) and The wassenaar Arrangement - limiting trade in conventional arms and technological developments (currently only 40 countries).

Tariffs:
A tariff is a tax placed on a specific good or set of goods exported from or imported to a country, creating an economic barrier to trade. Usually the tactic is used when a country's domestic output of the good is falling and imports from foreign competitors are rising, particularly if there exist strategic reasons for retaining a domestic production capability. Some failing industries receive a protection with an effect similar to a subsidies in that by placing the tariff on the industry, the industry is less enticed to produce goods in a quicker, cheaper, and more productive fashion. The third reason for a tariff involves addressing the issue of dumping. Dumping involves a country producing highly excessive amounts of goods and dumping the goods on another foreign country, producing the effect of prices that are "too low". Too low can refer to either pricing the good from the foreign market at a price lower than charged in the domestic market of the country of origin. The other reference to dumping relates or refers to the producer selling the product at a price in which there is no profit or a loss. The purpose (and expected outcome) of the tariff is to encourage spending on domestic goods and services. Protective tariffs sometimes protect what are known as infant industries that are in the phase of expansive growth. A tariff is used temporarily to allow the industry to succeed in spite of strong competition. Protective tariffs are considered valid if the resources are more productive in their new use than they would be if the industry had not been started. The infant industry eventually must incorporate itself into a market without the protection of government subsidies. Tariffs can create tension between countries. Examples include the United States steel tariff of 2002 and when China placed a 14% tariff on imported auto parts. Such tariffs usually lead to filing a complaint with the World Trade Organization (WTO) and, if that fails, could eventually head toward the country placing a tariff against the other nation in spite, to impress pressure to remove the tariff.

Subsidies:
To subsidize an industry or company refers to, in this instance, a governmental providing supplemental financial support to manipulate the price below market value. Subsidies are generally used for failing industries that need a boost in domestic spending. Subsidizing encourages greater demand for a good or service because of the slashed price. The effect of subsidies deters other countries that are able to produce a specific product or service at a faster, cheaper, and more productive rate. With the lowered price, these efficient producers cannot compete. The life of a subsidy is generally short-lived, but sometimes can be implemented on a more permanent basis. The agricultural industry is commonly subsidized, both in the United States, and in other countries including Japan and nations located in the European Union (EU). Critics argue such subsidies cost developing nations $24 billion annually in lost income according to a study by the International Food Policy Research Institute, a D.C. group funded partly by the World Bank. However, other nations are not the only economic 'losers'. Subsidies in the U.S. heavily depend upon taxpayer dollars. In 2000, the U.S. spent an alltime record $32.3 billion for the agricultural industry. The EU spends about $50 billion annually, nearly half its annual budget on its common agricultural policy and rural development.

Exports and free trade:


The theory of comparative advantage materialized during the first quarter of the 19th century in the writings of 'classical economists'. While David Ricardo is most credited with the development of the theory (in Chapter 7 of his Principles of Political Economy, 1817) James Mills and Robert Torrens produced similar ideas. The theory states that all parties

maximize benefit in an environment of unrestricted trade, even if absolute advantages in production exist between the parties.

In contrast to Mercantilism, the first systematic body of thought devoted to international trade, emerged during the 17th and 18th centuries in Europe. While most views surfacing from this school of thought differed, a commonly argued key objective of trade was to promote a "favorable" balance of trade, referring to a time when the value of domestic goods exported exceeds the value of foreign goods imported. The "favorable" balance in turn created a balance of trade surplus. Mercantilists advocated that government policy directly arrange the flow of commerce to conform to their beliefs. They sought a highly interventionist agenda, using taxes on trade to manipulate the balance of trade or commodity composition of trade in favor of the home country.

Export strategy:
Export strategy is to ship commodities to other places or countries for sale or exchange. In economics, an export is any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade.

Vessel at Container Terminal Altenwerder (Hamburg)

Overview:
Advantages of exporting:
Ownership advantages are the firm's specific assets, international experience, and the ability to develop either low-cost or differentiated products within the contacts of its value chain. The location advantages of a particular market are a combination of market potential and investment risk. Internationalization advantages are the benefits of retaining a core competence within the company and threading it though the value chain rather than obtain to license, outsource, or sell it. In relation to the Eclectic paradigm, companies that have low levels of ownership advantages either do not enter foreign markets. If they company and its products are equipped with ownership advantage and internalization advantage, they enter through low-risk modes such as exporting. Exporting requires significantly lower level of investment than other modes of international expansion, such as FDI. As you might expect, the lower risk of export typically results in a lower rate of return on sales than possible though other modes of international business. In other words, they usual return on export sales may not be tremendous, but neither is the risk. Exporting allows managers to exercise operation control but does not provide them the option to exercise as much marketing control. An exported usually resides far from the end consumer and often in list various intermediaries to manage marketing activities.

Disadvantages of exporting:
For Small-and-Medium Enterprises (SME) with less than 250 employees, selling goods and services to foreign markets seems to be more difficult than serving the domestic market. The lack of knowledge for trade regulations, cultural differences, different languages and foreign-exchange situations as well as the strain of resources and staff interact like a block for exporting. Indeed there are some SME's which are exporting, but nearly two-third of them sells in only to one foreign market. The following assumption shows the main disadvantages:

Financial management effort: To minimize the risk of exchange-rate fluctuation and transactions processes of export activity the financial management needs more capacity to cope the major effort Customer demand: International customers are demanding for more services form their vendor like installation and startup of equipment, maintenance or more delivery services. Communication technologies improvement: The improvement of communication technologies in recent years enable the customer to interact with more suppliers while receiving more information and cheaper communications cost at the same time like 20 years ago. This leads to more transparency. The vendor is in duty to follow the real-time demand and to submit all transaction details. Management mistakes: The management might tap in some of the organizational pitfalls, like poor selection of oversea agents or distributors or chaotic global organization.

Ways of exporting:
The company can decide to export directly or indirectly to a foreign country.

Direct selling in export strategy:


Direct selling involves sales representatives, distributors, or retailers who are located outside the exporter's home country. Direct exports are goods and services that are sold to an independent party outside of the exporters home country. Mainly the companies are pushed by core competencies and improving their performance of value chain.

Direct selling through distributors:


It is considered to be the most popular option to companies, to develop their own international marketing capability. This is achieved by charging personnel from the company to give them greater control over their operations. Direct selling also give the company greater control over the marketing function and the opportunity to earn more profits. In other cases where network of sales representative, they company can transfer them exclusive rights to sell in a particular geographic region.

A distributor in a foreign country is a merchant who purchases the product from the manufacturer and sells them at profit. Distributors usually carry stock inventory and service the product, and in most cases distribute deals with retailers rather than end users.

Evaluating Distributors:
The size and capabilities of its sales force. Its sales record. An analysis of its territory. Its current product mix. Its facilities and equipment. Its marketing polices. Its customer profit. Its promotional strategy.

Direct selling through foreign retailers and end users:


Exporters can also sell directly to foreign retailers. Usually, products are limited to consumer lines; it can also sell to direct end users. A good way to generate such sales is by printing catalogs or attending trade shows.

Direct selling over the Internet:


Electronic commerce is an important mean to small and big companies all over the world, to trade internationally. We already can see how important E-commerce is for marketing growth among exporters companies in emerging economies, in order to overcome capital and infrastructure barriers. E-commerce eased engagements, provided faster and cheaper delivery of information, generates quick feedback on new products, improves customer service, accesses a global audience, levels the field of companies, and support electronic data interchange with suppliers and customers.

Indirect selling:
Indirect exports, is simply selling goods to or through an independent domestic intermediary in their own home county. Then intermediaries export the products to customers foreign markets.

Making the export decision:


Once a company determines it has exportable products, it must still consider other factors, such as the following: What does the company want to gain from exporting? Is exporting consistent with other company goals? What demands will export place on the company's key resources - management and personnel, production capacity, and finance - and how will these demands be met? Are the expected benefits worth the costs, or would company resources be better used for developing new domestic business?

Export promotion:
In the U.S.
The U.S. Department of Commerce provides U.S. companies the opportunity to promote their products and services free of charge. To do so, the Export Yellow Pages is published online and in print and is delivered to embassies, trade centers, consulates, and associations worldwide.

Internationally:
There are several global B2B directories and also country-specific directories, such as Kelly's Directory in the U.S., Trade get in India, and Alibaba in China. Fat...

Challenges:
Exporting to foreign countries poses challenges not found in domestic sales. With domestic sales, manufacturers typically sell to wholesalers or direct to retailer or even direct to consumers. When exporting, manufacturers may have to sell to importers who then in turn sell to wholesalers. Extra layer(s) in the chain of distribution squeezes margins and manufacturers may need to offer lower prices to importers than to domestic wholesalers.

Important points:
Commodity currency Export-oriented industrialization Export performance Export-led growth List of countries by exports International trade Import .

Indian export market:


The Indian market, with more than one billion people, presents lucrative and diverse opportunities for U.S. exporters with the products, services, and commitment that can meet the countrys needs. Indias requirements for equipment and services for major sectors such as energy, environmental, healthcare, high-tech, infrastructure,

transportation, and defense will exceed tens of billions of dollars in the medium-term as the Indian economy further globalizes and expands. To meet growing domestic and export demands, Indian companies are increasingly manufacturing finished products and sourcing sophisticated, efficient products and equipment from the United States. There is also a growing trend in utilizing U.S. expertise in the fields of education, energy, environmental, engineering consulting, management consulting, retail and telecommunication.

Map of India

Indias sustained and forecasted GDP growth makes it one of the fastest growing economies in the world, and the second fastest in Asia. While its size and growth make it attractive as a market, the most compelling reason for investors to be in India is the high return on investment. India is a free-market democracy with a legal and regulatory framework that rewards free enterprise, entrepreneurship and risk taking. Now is the time for U.S. companies to enter the rising Indian market.

Indias Economic Outlook:


India is a fast-growing economy with a dynamic and robust financial system. The highly diversified Indian economy has shown rapid growth and remarkable resilience since 1991, when economic reforms were initiated with the progressive opening of the economy to international trade and investment.

Best Prospects in India:


Civil Nuclear Energy is perhaps the biggest market opportunity in terms of potential export value to U.S. companies, valued at more than $150 billion over the next 30 years. The recent opening of the civil nuclear sector provides a huge market opportunity (reactors, raw materials, supplies) for U.S. companies. Renewable Energy (RE) market is estimated at $500 million and growing at an annual rate of 15%. Solar energy, wind energy, small hydro projects, waste-to-energy, biomass and alternative fuel are the major investment areas. Only about 3500 of the estimated potential of 100,000 RE megawatts (MW) are currently used. In addition, the governments new RE policy of generating 10,000 MW through renewable and a nonconventional source by 2012 is expected to further boost the participation of U.S. energy companies. Aerospace and Defense sector ranks among the worlds most dynamic, with airlines in India in the process of buying over 300 aircraft between 2007 and 2012. India is also a large and growing market for air defense equipment, especially for U.S. suppliers seeking joint-venture opportunities. Mining and Coal sector has shown healthy growth over the past few years and will likely continue, given the emphasis on coal production to overcome a projected

shortfall. An estimated $21 billion investment in opencast mining and $5 billion in underground mining will be required to attain the target production level by 2025. Although Indian firms manufacture mining equipment, U.S. firms are competitive for providing high-end, higher-size equipment and advanced technologies. India will also require a coal washing capacity of 810 million tons by 2025, an eight-fold increase from the current installed capacity, indicating a $3 billion investment. Safety and Security industry has been growing at 20-25% during the last 5-7 years. Following the recent terror attacks in Mumbai, users are looking to procure hi-tech surveillance, detection, access control, perimeter security, fire fighting and specialized security equipment and services for rail, air, urban infrastructure, industry, schools, malls, hotels, and other strategic establishments to counter terrorism and other security threats. According to industry contacts, the security industry is estimated to grow from the current $2 billion to over $5 billion in the next 3-5 years. Healthcare - the growing demand for quality healthcare and the absence of delivery mechanisms pose a great opportunity, and challenge, for U.S. industry. Currently valued at $35 billion, the Indian healthcare industry is expected to reach over $75 billion by 2012. With 14.5% growth in the medical infrastructure market, the demand for medical equipment could nearly double to $5 billion by 2012. Imports account for over 65 % of the entire medical equipment market, most of which come from the U.S., Germany and Japan. Retail: Beauty and Personal Care market is currently estimated at $1.5 billion and growing rapidly. Increasingly, Indian shops and boutiques are stocking cosmetics from around the world. Many U.S. companies have immense export potential since U.S. products are considered to be of very high quality and are in high demand.

Franchising is the second fastest-growing industry, with the nascent $2.7 billion sector booming at an impressive 25%. Ten percent of the 700 franchise systems are run by international companies. Franchising is expected to grow to half of the overall

organized retail trade. Though the current economic downturn could slow the growth temporarily, the avid interest in franchises in India will continue to increase, especially in smaller and medium-sized cities. The best prospects for U.S. firms include education and training, food and beverage, health and fitness, beauty salons and supplies, real estate and professional services, and clothing. India is emerging as the worlds fastest growing passenger car market, with the second largest two-wheeler and fifth largest commercial vehicle manufacturing centers in the world. The auto parts sector holds enormous potential for U.S. auto parts suppliers as it is expected to grow from $18 to $45 billion by the year 2015. Currently, imports account for nearly $5 billion of that amount.

Doing Business in India:


Finding partners and agents: New businesses must address issues of sales channels, distribution and marketing practices, pricing and labeling, and protection of intellectual property. Relationships and personal meetings with potential agents are extremely important. Due diligence is strongly recommended. Geographic diversity: U.S. companies, particularly small and medium-sized enterprises, should consider approaching Indias market on a local level. Good localized information is a key to success in such a large and diverse country. U.S. Commercial Service posts in India provide indispensable local information and advice and are well plugged in with local business and economic leaders. Often multiple agents are required to serve each geographic market in the country. Market entry options: include a subsidiary relationship, a joint venture with an Indian partner, or using a liaison, project, or branch office.

Customs duty: The levy and rate of customs duty in India are governed by the Customs Act 1962 and the Customs Tariff Act 1975. Imported goods receive a basic customs duty, additional customs duty and education cess. The rates of the basic customs duty are specified under the Tariff Act, with the peak rate

reduced to 12.5% for industrial goods. The additional customs duty is equivalent to the excise duty payable on similar goods manufactured in India. Education cess at 2% is leviable on the aggregate of customs duty on imported goods. Customs duty is calculated on the transaction value of the goods. Customs duties in India are administrated by Central Board of Excise and Customs under Ministry of Finance.

Success for a U.S. Company:


L&H is a leading after-market supplier in the mining industry. It is an established rebuilder of heavy mining equipment and engineer, design and manufacture alternative replacement parts for the surface mining industry. Voltas is a leading engineering solutions company in India, a part of the TATA Group of industries, involved in design/manufacture/marketing of industrial equipments. In September 2007, CS India contacted L&H regarding participation in IME 2008, a mining trade show in Calcutta. After L&H showed preliminary interest, CS India provided event details and explained the opportunities that could open up for the company in India. CS India provided additional research to address L&Hs queries, which resulted in their participation in the January 2008 trade show. Based on interactions with exhibitors and potential agents identified by CS India, L&H initially shortlisted seven Indian companies. CS India then provided information which helped L&H shorten the list to three best prospects. At this stage, L&H requested that CS India prepare detailed company reports on two of the shortlisted companies. Based on all the information and assessment provided by CS India, L&H finally decided to enter into an agreement with Voltas India to represent its product line in India. The team effort from CS India helped L&H finalize its market entry in India within a short cycle of eight months. L&H thanked CS India for their continued help and support in a follow-up email.

India at a Glance:
Population: 121.02 CRORE (May 2011) Languages: Hindi (national language and primary tongue of 30% of population); English enjoys associate status, but is the most important language for national, political, and commercial communications Currency: Indian Rupee (Rs) Capital City: New Delhi Financial Center: Mumbai (formerly known as Bombay)

Market Research:
CS India produces market research reports to help U.S. companies determine market potential, market size and potential competitors. our site to access our reports, including these recent market research reports: Mining Sector Opportunity Mine Safety Equipment Coal Beneficiation Auto Components Aviation

RESEARCH METHODOLOGY

RESEARCH METHDOLOGY:

Research in Common parlance refers to search for Knowledge. Its a scientific and systematic search for pertinent information on specific topic. Research is an art of Scientific investigation its mean Systematized effort to gain new Knowledge. It can also be defined as scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. Research is a voyage of discovery. It is also said to be the pursuit of truth with the help of study, observation, comparison and experiment. The role of research in several fields of applied economics whether related to business or to economy as a whole, has greatly influenced in modern times. The increasing complex nature of business and government has focused on the use of research in solving problems. According to Kerlinger, Research is a systematic, controlled, empirical and critical investigation of hypothetical propositions about the presumed relation among natural phenomenon. According to Clifford woody Research Comprises defining and redefining problem formulating hypothesis or suggested solution Collecting, Organizing and evaluating data making deductions and reaching Conclusion at Carefully testing the Conclusion to determine whether they fit the formulating hypothesis. In Short the Search for Knowledge through Objective and systematic method of finding solution to a problem is research its refer to the systematic method Consisting enunciating the problem, formulating a hypothesis, Collecting the fact or data analysis the fact and reaching Certain Conclusion in the form of Solution.

Characteristics of Research:
Research is a systematic and critical investigation into a phenomenon. Research is not a mere compilation, but a purposive investigation. It aims at describing, interpreting and explaining a phenomenon. It adopts scientific method. It is objective and logical. It is based upon the observable experience and empirical evidence. It is directed towards finding answers to pertinent question and solution.

RESEARCH PROCESS:
Research Process consists of a series of action or steps necessary to effectively carry out the research and the desired sequencing of these steps. The various steps, which provided guidelines to the research process pertaining to the project, are as follows:

Formulating the research problem Formulation of research problem involves understanding the problem
thoroughly and rephrasing the same into meaningful terms from an analytical point of view.

Extensive literature survey It is necessary for the researcher to conduct an extensive survey connected
with the problem. For the purpose manual, company records, journals, published data can be used.

Development of working hypotheses Working hypotheses is a tentative assumption made in order to draw out and
rest its logical or empirical consequences.

Preparing the research design The researcher will be required to prepare a research i.e. he will have to state
the conceptual structure within which research would be conducted. The function of research design is to provide the collection of relevant evidence with minimum expenditure of efforts, time and money.

Determining the sample design The researcher must decide a way of selecting a sample or what is popularly
known as sample design. The types of sample design are: Simple Sampling Random sampling Systematic Random Sampling Stratified Sampling Quota Sampling Cluster and Area sampling Multistage Sampling Sequential Sampling Convenient Sampling Purposive Sampling Census Survey For this project, convenient purposive Sampling was used among the above mentioned types.

Title of the project:

Peoples perception about export business in Jaipur.

Duration of the project: 45 days

OBJECTIVE OF THE STUDY:

The Purpose of research is to discover answer to question through the Application of scientific procedure. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet and for finding the various problems in the handicraft export business and determining why the people are not having interest in export like in the other sectors.

To know and apply different market research techniques in my study as follows:

Sampling Design Research Methodology Questionnaire Design

To highlight the satisfaction level regarding products.

To gain familiarity with a phenomenon or to achieve new insights into it (Studies with this object in view are termed as exploratory or formulate research studies)

To portray accurately the characteristics of a particular individual Situation or a group (Studies with this object in view are known as descriptive research studies).

TYPE OF RESEARCH:
There are two type of research design are following:-

DESCRIPTIVE RESEARCH DESIGN QUANTITATIVE RESEARCH DESIGN

DESCRIPTIVE RESEARCH DESIGN:


Descriptive research includes survey and fact finding enquiries of different Kinds. The major Purpose of descriptive research is description of State affairs as it exists in present. In social and business research we quite often use. I have done Survey found fact by personal interviews and I have collected the data from the export firms and went into export houses for facts so it is descriptive.

QUANTITATIVE RESEARCH DESIGN:


Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in term of quantity. We have also found requirement in quantity so its the quantitative research because the data which is found and observed it is in numbers.

SAMPLE DESIGN:
Sample design refers to the technique or the procedure the researcher would adopt in selecting item for the Sample. Sample design may be well lay down the number of items to be included in the sample that is the size of the sample design is determined before data are collected. There are many Sample designs from which a researcher can choose some designs are relatively more precise and easier to apply than other researcher must select a sample design which should be reliable and appropriate for his research study. Here we have used random sampling. We have made a questionnaire through personal interview filled the questionnaire.

DATA COLLECTION:
Basically there are two main method of data Collection primary data and Secondary data. Primary data are those which are collected freshly and the first time and thus happen to be original in character. Other hand Secondary data are those which have already been collected by someone else and which have already been passed through the Statistical granting. We just collected the both data (primary and secondary) out of the area of export and the production and manufacturing area. There are two types of data are following: PRIMARY DATA SECONDARY DATA

PRIMARY DATA:
QUESTIONNAIRE METHOD: This method of data collection is quite popular, particularly in case of big enquiries. It is being adopted for private individuals, research workers private and public organization and even by governments in this method a questionnaire Consists of a number of question printed or typed in definite order on a form or set of form I have made a Questionnaire for Survey. The inquiry was done of the respondents through questionnaire in which the same set of questions were asked to the very respondents falling within out sample. The advantage is that it is simple to administer easy to tabulate and analyse.

PERSONAL INTERVIEWS: The interview method of collecting data involves presentation of oral verbal stimuli and reply in term of oral verbal responses. I have used this method through personal interview. I took some interviews of the owner of the firm, manager of the firm, supervisors and workers.

SECONDARY DATA:
Secondary data means data that are already available they refer to the data which have already been collected and analyzed by someone else. I have used for it following method Internet and journals of company. The search was done on internet and related magazines, companys websites to extract relevant information. The other necessary information regarding Kejriwal industries products and other offerings were obtained through printed sources such as Handouts, Pamphlets, Advertisements and circulars etc.

LIMITATIONS OF STUDY:
Due to the financial & time constraints the study was limited to my place thus the conclusion arrived in the end rely in short term experience. Being an opinion survey the personal bases of the respondents might have entered into their responses. Time constraints resource constraints were some of the limitations. The sample might have affected the results of the study therefore the findings & conclusions of the study are only suggestive & not conclusive. Sample was chosen according to convenience & judgment sampling & not according to random sampling. The sampling error that appeared due to the kind of sampling technique adopted. Indifference and lack of interest disposed by a few respondents leading to unauthentic responses. Time proved to be a major constraint as far as collection and analysis of data was concerned.

To overcome the above limitations and to minimize their impact on the findings of my report I had to meet more respondents than my actual sample size.

FACTS & FINDINGS

FACTS & FINDING:


Export in different countries

Countries

export % 44 28 20 8

England U.S.A gulf countries Asian countries

export %
45 40 35 30 25 20 15 10 5 0 England U.S.A gulf countries Asian countries

export %

Order level by different buyers (in lacks)

order level 50 to 80 lacks 30 to 50 lacks 20 to 30 lacks below 20 lacks

percentage order 44 28 20 8

percentage order
45 40 35 30 25 20 15 10 5 0 50 to 80 lacks 30 to 50 lacks 20 to 30 lacks below 20 lacks

percentage order

Income on local order & exports

sale: Local Exports

profit percentage 40 25

profit percentage
40 35 30 25 20 15 10 5 0 local exports profit percentage

Is the export business is affected by recession?

Yes No

80 20

80 70 60 50 40 30 20 10 0 yes no Series1

How many people want to do export business?

Yes No

45 55

60 50 40 30 20 10 0 yes no Series1

What is the main problem in export?

Recession exchange rates Competitions

45 22 33

45 40 35 30 25 20 15 10 5 0 recession exchange rates competitions Series1

What type of export business you prefer?

handicrafts Textiles raw paper Marvel Other

34 14 7 26 19

35 30 25 20 15 10 5 0 Series1

How much amount of loan people would like to take for export house?

amount 500000 500000-1000000 1000000-1500000 1500000-2000000 above 2000000

Percentage 25 13 17 19 26

percentage
30 25 20 15 10 5 0

percentage

How many people know about export credit?

yes No

Percentage 24 76

percentage
80 70 60 50 40 30 20 10 0 yes no

percentage

How many orders an exporter get in a year?

Order 10 to 15 15 to 20 20 to 25 25 to 30 above 30

Percentage 8 17 39 16 20

percentage
40 35 30 25 20 15 10 5 0 10 to 15 15 to 20 20 to 25 25 to 30 above 30 percentage

ANALYSIS & INTERPRETATION

ANNLYSIS:
As part of the project we had make a survey with the help of questionnaire that has to taken to different people to get perception towards export product and plans and problems the questionnaire is passed on the general public & managers of the export field and the workers of the export firms and requested to give their opinion toward export the questionnaire Consists of both open and close ended question the main motto behind the Study is to find out how people react against the exports. In research methodology we have used random sampling and sample size was 100. Simple random sampling method is followed where every member of population have equal chance of been selected. The questionnaire is administrated on sample to find out their perception towards export products and benefits of the product and problems in that particular field. After analysis of questionnaire Conclusions were made based on finding from bar charts.

Important points of international exports:

Trade in exports and manufactured goods. Trade between partners of regional exports agreements. Developing countries exports. South-south exports. Containerized cargo. Global production network.
Intra firm trade. E-commerce

Problems in export field:


Recession Slowdown Exchange rates Competitions Raw material supply Sizzler houses High export taxes High cost of packaging Transport

INTERPATATION OF BAR CHARTS:


Interpretation 1:This bar diagram clearly reveals that the major part of export 44% is exported by the company in England. And the other big part of export 28% is in U.S.A and the third big part of 20% of export is in gulf countries and the last 8% part of export is in Asian countries. That means the major area of export is in Eropein countries and it is the biggest area of exporters. Interpretation 2:After looking this bar, it can be said the highest number of people (buyers) gives the order of Rs 50 lakhs to 80 lakhs who are 44%. Some other buyers give the order between 30 to 50 lacks in a year they are 28% and other buyers who gives 20 to 30 lacks order they are only 20% and who gives below 20 lacks they are 8 %. Interpretation 3:Here we can see by this graph that income level of the exporters are 40% when they do local sale and when they do exports the profit margin is 25%. That means there is maximum profit in local sale rather than the exports because there are lots of expenses in the exports thats why it is not so much profitable like local sales.

Interpretation 4:In this survey I found that 80% exporters said that their businesses have affected by the recession and 20% exporters said that the business is never affected by the recession. Interpretation 5:In survey I found that most of the people dont want to do the export business and 45% people want to do the export business. Interpretation 6:In the survey I found that most of the people and exporters believe that recession is the most important factor thats why the export business is affected and 22% people believes that exchange rates are the main problems in exports and other 33% people believes that competitions are the main problem in exports. Interpretation 7:In this survey I found that 34% people prefer the handicraft export business and 14% people prefer the textiles export and 7% people have the interest in raw paper exports and 26% people want to do the marvel exports and 19% people have interest in other exports. Interpretation 8:This graph represents that 25% person would like to take loan of 500000rs for export house and 13% person can take the loan of 500000 to 1000000rs and 17% people can take loan of 1000000 to 1500000rs and 19% person can take loan of 1500000 to 2000000rs and rest of 26% people would like to loan of 2000000 and above for the export house. Interpretation 9:This graph represents that 24% person knows about export credit and 76% person doesnt knows about export credit. Interpretation 10:This bar is vividly showing that the 8% of the exporters get 10 to 15 export order in a year and 17% exporters get 15 to 20 export order and 39% get 20 to 25 export order and 16% get 25 to 30 export order in a year. And 20% exporters get above 30 orders in a year they are very big exporters in the field of handicraft exports.

S.W.O.T

SWOT ANALYSIS:

STRENGTHS:

All the branches of Kejriwal industries are interconnected which give the unique facility of export business. All operations of the business are carried on with the help of computers thus works are carried with greater efficiency. Kejriwal group provide after services for the buyers. Employees have a good relationship with the managers and the owner of the company. Documentations, production & export process is easily done by managers. High number of workers who makes the work of production and manufacturing very convenient. Maximum unit based in Jaipur & Jhunjhunu; as compared to any export firm. Provide better quality than any other export units. There are 5 branches existing as per now including Jaipur and more than 600 workers in the units. Kejriwal industries provide various types of product (traditional, modern) in wood and iron.

WEAKNESS:

Less awareness among general masses about the different and new products provided by other big export houses. Buyers faith in this particular firm is still not very high. Dissatisfaction among buyers due to improper and lack of after sales services. Exchange rates are very much affected. A weak financial position. Production unit is weak. There is no separate marketing cell in jaipur branches for local sales. No other facility is provided.

OPPORTUNITIES:

Peoples dissatisfaction towards other business in the time of recession has turned to be blessing for export business. Government is now providing some benefits to the exporters. Special services can be provided to buyers as the buyers role is becoming prominent. The trust of people is increasing in exports rather than going for other business. There is vast untapped opportunity which lies for export firm in the international market. Easy entry in export business due to globalisation and liberalisation. Local market is now on boom so the export firms can get the maximum profit by sale in local area. Now the competitions are going low so this is the chance to get the maximum share of the market and become the leader. Due to recession the tax on export is very low and there is export benefit is provided by the government of India.

THREATS:

Some new export firms have been permitted to increase their number branches and its entry has taken away some business of the existing export firms. Cut-through competition. Growth of Chinese export players has led to shifting emphasis from Indian exporters. Increase in the number of exporters resulted in taking away business. Due to recession the market goes very low. The buyers are now interested in some other items of exports not in traditional. There was around 35% to 40% profit margin in business but now it has come down to just 20% to 25%. Some other countries are increasing the export number. The export item of China, Japan, & some other countries are very cheap.

CONCLUSION

CONCLUSION:
Finally the conclusion which is generalized after the data analysis is that the export industry is having lots of problems. It is not very complicated but people face many problems in export industry. There was around 35% to 40% profit margin in business but now it has come down to just 20% to 25%. Due to change in environment the entire export structure has undergone a major change. As part of the economic reforms, export industry has been deregulated and made competitive. Due to exposure to global trends after Information explosion led by Internet, customers- both Individuals and Corporate - are now demanding better services with more products from their sellers. And after good services the main problems of export industry are Recession, slow down, lack of capital & competition. If any export firm wants to increase the sales, here is important to constraint on the behavior of buyer. According to the findings, the money required to manage daily operations at these firms is extremely high. Higher working capital signals inefficiency, increases cost of capital, adds to debt and eats into profit. The export firms are small business and Part of the reason why small firms are in troubles is high working capital costs. Small business firms, like others big businesses, have been hit by a lack of credit, falling sales and shrinking profits. The major problems small businesses are facing can be categorized in three main areas namely problems in terms of working capital are: Managing Inventory. Receivables Management. Management of Cash. Funding of Shorter working capital needs. Major part of day to day decision making for business success and growth. Problems of over investment and under investment. Seasonal business fluctuations necessitate constant planning.

Future lies on the successful management of working capital and that needs much attention of the business mangers. Pressures to supply goods on credit terms on negotiated pricing. Fierce competition between sellers put pressures on margins. Increased cost of production and other expenses makes liquidity problems looming dangerously all the time. Despite these pitfalls small businesses are in win situations as compared to their big counterparts as small setup and shorter productions cycles and flexibity in operations gives them added advantage over others. The final conclusion is the problems like recession have changed the total mood of the export. In the global market there is no order for the exporters and that has become a big problem in front of exports. Without any order, no export and no sale this is a hard time for the exporters and the export business. But the government is doing lots of efforts for the exporters and increasing the export business. And now the recession has gone and the world is doing best for increasing the exports so the export future is bright.

RECOMMENDATIONS & SUGGESTIONS

RECOMMENDATIONS & SUGGESTION:

To the people:
I would like to suggest that the export business is the most hansom work out there so we should not ignore the exports and in this business there are lots of changes. Recession or slowdowns are temporary so the profit will be high in future in exports so this is the right decision to invest in export business. Get all the benefits of government policies which are only for exporters. Always go to the export houses for better and cheap product because they produce the items in a lot. Be a part of export fairs there are lot of export fair organized by Forex and export authority and Indian government. Encourage the exporters and export business.

To the Government:
Government should make some relief policies for exporters. Government should reduce taxes on exports. The FOREX and ECGC type of programs should be adopted on the higher level thats why the exporters can be benefited.

To Kejriwal industries:
I would like to suggest that it should try to bring down its prices so as to compete with its nearest competitor. Use the internet marketing it will help for getting the orders. For getting the export orders try to go gulf countries and take the participation in international fairs. Open your own export showroom in the city and start the local sale. Take the participation in all the export fairs. Get the all benefits provided by the government and ECGC. Make your own sizzling houses because the company invest lot of money in sizzle the woods. Evaluate all the business policies and competitive strategy.

APPENDIX

Questionnaire

Dear Sir/Madam, I am the student of Lachoo Memorial College OF Science & Technology, Jodhpur. As part of the requirements for my project study I am required to do a research based project on A study of people perception about export business Kindly spend a few minutes of your valuable time and fill in this questionnaire. Every information given by you will be only for Academic purpose. NAME OF RESPONDENT___________________________________________ ADDRESS________________________________________________________________ ______________________________________________________________

Q.1 a) c)

what is your occupation? Student Business b) d) service Others

Q.2 a) c) e)

What is your Age Group? <20 30-35 Above 45 years b) d) 20-25 35-45

Q.3 a) c)

What is your income level? 5000 10000 40000-100000 b) d) 10000-40000 above 100000

Q.4 a)

Do you want to do export business? Yes b) No

Q.5 a) c)

What is the main problem in exports? Recession Any other b) exchange rates d) competitions

Q.6 a) c) e)

What type of export business you prefer? Handicrafts Raw paper b) d) textiles marvel

Any other, please specify_________________________________

Q.7 a) c)

have you ever been in any export house? Yes b) no

If yes, which one_________________________________

Q.8 a) c) e)

How much Amount of loan you would like to take for export house? 5, 00,000 10, 00,000-15, 00,000 Above 20, 00,000 b) d) 10, 00,000 15, 00,000-20, 00,000

Q.9 a) c) e)

how many orders you get in a year? 10 to 15 20 to 25 Above 30 b) d) 15 to 20 25 to 30

Q.10 Do you think about export sector is better than other sectors? If Yes: Why, If No Why?

Q.11 Do you know about export credit? a) Yes b) No

Q.12 should government give some relief to exporters? a) c) Yes b) no

if yes what kind of (please specify) __________________________________

Q.13 what suggestions you want to give for improvement in export sector? ________________________________________________________________________ ________________________________________________________________________ __________________________________________

Thank You

BIBLIOGRAPHY

BIBLIOGRAPHY

Internet:

www.deal4trade.com www.google.com www.kitindia.com "http://en.wikipedia.org/wiki/Export"

Magazines:

Business Today (Various Issues)

News Papers:

Economic times Business standard

Text books:

Research Methodology By C.R.Kothari. Investment Management By Avadhani Investment By William Sharpe