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Global Country Study Report

On

Leather Industry of Ukraine
Business Opportunities for Gujarat and Uttar Pradesh
Submitted to
Institute Code: 755
Sardar Patel College of Administration & Management

Under the Guidance of
Dr. K.C.DWIVEDI
Assistant Professor
In partial Fulfillment of the Requirement of the award of the
degree of
Master of Business Administration (MBA)
Offered By
Gujarat Technological University
Ahmedabad
Prepared by:
Students of
MBA (Semester - III / IV)
Group No. 2
April, 2016

STUDENT’S DECLARATION

We, following students, hereby declare that the Global/ Country Study Report titled
“Leather Industry in Ukraine & Uttar Pradesh” is a result of our own work and our
indebtedness to other work publications, references, if any, have been duly
acknowledged. If we are found guilty of copying any other report or published
information and showing as our original work, or extending plagiarism limit I
understand that we shall be liable and punishable by GTU, which may include ‘Fail’
in examination, ‘Repeat study & re-submission of the report’ or any other punishment
that GTU may decide.

Enrollment No.

Name

147550592007

DHRUTIKA PARMAR

147550592009

ANKIT JAIN

147550592010

JAYKUMAR PATEL

147550592012

SARFRAJ MALEK

147550592014

NRIJAL PANCHAL

147550592015

ARPAN PARMAR

Place :SPCAM, Bakrol.

Signature

Date : ___/___/20__

Institute Certificate

It is certified that this Global Country Study Report Titled “Leather Industry in
Ukraine & Uttar Pradesh” is the bona fide work of attached student list with
enrollment numbers, who have carried out their research under our supervision. We
also certify further, that to the best of my knowledge the work reported herein does
not form part of any other project report or dissertation on the basis of which a
degree or award was conferred on an earlier occasion on this or any other
candidate. I/we have also checked the plagiarism extent of this report which is -----and the separate plagiarism report in the form of pdf file is enclosed with this.

Enrollment No.

Name

147550592007

DHRUTIKA PARMAR

147550592009

ANKIT JAIN

147550592010

JAYKUMAR PATEL

147550592012

SARFRAJ MALEK

147550592014

NRIJAL PANCHAL

147550592015

ARPAN PARMAR

Signature of the Faculty Guide

Signature of Director

Mr. dr. k.c.dwivedi
Dr. V.J.Dwivedi
Asst. Prof. – SPCAM, ANAND.

Director – SPCAM, ANAND.

Sincere efforts are made to ensure the accuracy and authenticity of the secondary data taken for preparing this global country report. researchers and scholars and their publications. The present study covers the research work done by group of six students of MBA Semester III of “Sardar Patel College of Administration & Management” under the guidance of Assistant Professor Mr. We here by acknowledge the valuable support and guidance from our very respectful Director and our respective guides for their valuable inputs and guidance for making this report more specific. The study is based on secondary data from authentic sources and the findings of the present study show the possibilities of opportunities to improve bilateral trade between Ukraine and Uttarpradesh. Umesh Singh for studying various aspects of different sectors as compare to India (Uttarpradesh and Gujarat).PREFACE The Global Country Study Report reveals in-depth analysis of various sectors of Ukraine. We are deeply indebted to all authors. This report is prepared as per the curriculum and guidelines of Gujarat Technological University (GTU). government.” . There is a famous saying “The theory without practical is lame and practical without theory is blind. Ahmadabad to get the exposure of International market scope and opportunities. non-governmental organizations’ and other publications from which the data and information have been taken and therefore we as a group are not claiming any originality so far.

k. Director of Sardar Patel Education campus. In last. for his valuable guidance and support. Keyur Darji for his all time support. we would like to acknowledge and extend my heartly gratitude to our respective faculty dr. . we are very thankful to all those who directly or indirectly contributed to this GCSR report. We would also like to thank Dr. Vashishthdhar Dwivedi.ACKNOWLEDGEMENT I would like to acknowledge Vice chancellor of Gujarat Technological University Mr. We are also heartily thankful to GCR Co-coordinator Mr.dwivedi for providing his valuable input and giving us the specific direction for our study and he has stand like pillars for concrete global country study report. Akshay Agrawal for giving us an opportunity to get exposure and knowledge of International market and global business through this Global Country Study Report.c.

INDEX Sr. Swot analysis of Superhouse Group.No 1-17 1 Summary of part-I 18-26 2 Description of Superhouse Group. 3 Description of Foot ware 4 Products/Services 27-28 28-32 32-39 5 Market segmentation 40-43 6 4p’s analysis 44-47 7 Porter’s five forces for footware industry of 48-78 8 Import/export policies & procedures 79-82 9 Projected financial statements 83 10 Break Even Analysis 84-86 11 Finding & suggestions 12 Conclusions 13 87-88 89 Bibliography 90-97 14 Annexure .No Contents Pg.

 National flag of Ukraine :  National anthem : “Shche ne vmerla Ukraina "(Ukraine has Not Yet Died)  Economic scenario : - Reforming institutions.  Religions : 62% people are irreligious. 3% are of other religions. 1% are Muslim. Introduction of Ukraine Ukraine ( Україна) transliterated Ukrayina.062 sq mi) and with a coastline of 2. 27% are eastern orthodoxy.628 square kilometres (233.  Languages : Ukrainian (official language) : 18 Recognized regional languages  Currency of is Ukrainian hryvnia (UAH). after that of Russian Federation. Since the dissolution of the Soviet Union.782 kilometres (1. executive. Its capital and largest city is Kiev. Ukraine continues to maintain the second-largest military in Europe.SUMMARY OF 3RD SEM 1.471 (32nd)  Geographical location : At 603. The estimated population in 2015 estimate 44.729 mi). 1% are protestant. when reserves and paramilitary personnel are taken into account. and judicial branches. strengthening the economy after the crisis 1 . Ukraine is a unitary republic under a semi-presidential system with separate : legislative. 6% are catholic.429. is a country in Eastern Europe. Prime Minister of Ukraine is Arseniy Yatsenyuk.

- Adapting to Shifting Geographies of Demand in the Global Economy - Fostering Higher Levels of Value Creation in the Ukrainian Economy  Political Stability : - Institute for presidency became the core of development. being an important industrial and agricultural component of the country's planned economy. the economy of Ukraine was the second largest in the Soviet Union. - The traditional practice of using pre-election populist proposals will adversely affect relations with the IMF which in turn will shorten the field of opportunities to attract large amounts of foreign investment. Yanukovych’s personal political influence against the background of some groups strengthening positions within the redistribution of property. political decision-making and political control over their implementation.- In Soviet times. 2012 will be a time of V. - On 21 February 2014 an agreement between President Viktor Yanukovych and opposition leaders saw the country return to the 2004 Constitution. 2 .

Construction. Automobiles and motorcycle.5% 3 & processing . infrastructure. Exports in Ukraine decreased to 3087.) $2.80 USD Million in July of 2008 and a record low of 1215.138 billion (2015 est. home garden. Chemicals. tourism.20 USD Million in January of 2002. More than 60% of the exports goes to other former Soviet Republics countries with Russia. light.20 USD Million from 2001 until 2015. ferrous and non-ferrous metallurgy.  List of 23 Industries Agriculture. Trade and Commerce in Ukraine The economy of Ukraine is an emerging free market.10 USD Million in August from 3149.17 USD Million in July of 2015. information technology.9% 29. food and others. banking.) $7. wood-working and wood pulp and paper. reaching an all time high of 7616.) Agriculture Industry Services 9. minerals metallurgy. health medical. fuel.) $90. Overview of Industries.6% 60.989 (2015 est. Kazkhstan and Belarus being the most important. home appliances.199 (2015 est. financing.489 billion (2015 est. aircraft. Others include Turkey and China.  Contribution of industries/sectors in national GDP GDP (PPP) GDP per capita GDP (NOMINAL) GDP per capita $341. Ukraine covers about 2 major industries. Exports in Ukraine averaged 3758. Apparel. packaging paper. furniture furnishing general industrial equipment. fuel. construction materials. real estate. with a gross domestic products. chemical and petrochemical and gas. machine-building and metal-working. namely power generating. forest. Food beverage.2. Electrical equipment supplies. steel. manufacturing machinery.

4% Imports : Import partners : Russia 25.21 billion EU 39.3% Germany 8.4% China 9.70 8822.6% Egypt 4.90 Aug/15 3149.2% 4 . Export – Import statistics  IMPORT-EXPORT Imports Last Reference Previous Highest 3879.0% Belarus 6.80 USD Million Exports 3087.0% Poland 4.2% $87.50 Aug/15 2983.17 7616.7% Turkey 5.14 billion : EU 28.1% Russia 32.10 USD Million External Exports Export partners : $71.

3. Overview of leather industry in Ukraine
There are nearly thirty tanneries in Ukraine now. Also there are a lot of small and medium-size
enterprises consuming locally produced finished leather 50-70% of their production being
exported abroad. Almost a quarter of total soviet footwear output was produced in Ukraine –
about 180-200 million pairs per year.
In 2013 Ukraine export Leather Footware to Russia 29%, Italy 26%, Romania 9.3%, Poland
4.6%, Belarus 3.9%, Austria 5.3%, Slovakia 1.9%, Denmark 5% and in Kazakhstan 5.4%.
These business operates in two direction : one is the production of its own models of shoes (the
firm purchases raw materials, manufactures and sells its products through intermediaries), the
second are “give and take” orders ( customer provides raw materials). Mainly medium and
upper-medium price niches are occupied by local footwear manufacturers.
The volume of the Ukrainian shoe market does not exceed $2 billion, according to the Ukrainian
League of Shoe Manufacturers, Leather Goods and Furs, with a 70 percent share taken up by
foreign suppliers.1,500 shoe factories across Ukraine.

Justification for leather industries
India/Gujarat

in terms of bilateral trade opportunities with

The leather industry occupies a place of prominence in the Indian economy in view of its
massive potential for employment, growth and exports. There has been an increasing emphasis
on its planned development, aimed at optimum utilisation of available raw materials for
maximizing the returns, particularly from exports. The exports of leather and leather products
gained momentum during the past two decades.

Details of leather industries w.r.t. Gujarat
The leather industry has very good potential because Gujarat has the second highest population
of cattle. We have not been able to exploit this potential due to lack of intermediary processing
facilities. To streamline the leather activities, various programs like upgradation of tanneries,
5

providing training to unemployed youth for skill development and upgradation, and marketing
facilities have been chalked out.

Sub segments of the leather industry
The leather industry is spread in different segments. Namely, tanning & finishing,
footwear & footwear components, leather garments, leather goods including saddler and
harness etc.

Major players of leather industry and sub segments
1. ANUJ ENTERPRISES , BARODA
2. WELTERMAN INTERNATIONAL LTD , MANJUSAR
3. ROTO SCREENTECH PVT LTD , RAJKOT
4. CONDOR FOOTWARE INDIA LTD , SURAT
5. HETAL IACE TRADING COMPANY , SURAT
6. HIGH TECH SHOES PVT LTD , VADODARA
7. KHUSHI ENTERPRISE , AHEMDABAD

Local taxes and duties applicable in leather industry
1. Customs Duty – 10%
2. Central Excise Duty – 10-12%

Social benefits given by state govt. to the leather industry
The scheme is aimed at enabling existing tanneries, footwear, footwear components and leather
products units to upgrade leading to productivity gains, right-sizing of capacity, cost cutting,

6

design and development simultaneously encouraging entrepreneurs to diversify and set up new
units.

STEEPLED Analysis of Leather Industry in Ukraine & Gujarat

SOCIAL

Technology

UKRAINE

GUJARAT

As a Volunteer in Ukraine, you will
receive three types of allowances.
The first, a monthly living
allowance, is intended to cover
your basic living expenses; that is,
food, household supplies, clothing,
official travel, recreation and
entertainment,
transportation,
reading material, and other
incidentals

Create
a
leather-shoe
producing social business
to train and Employ people
with disabilities.

Utilizing
the
most
modern
technology and latest machinery,
we have emerged as the foremost
Leather Cloth Manufacturers and
Suppliers of a wide assortment.
We are blessed with a team of
trained
researchers
who
researches on latest technologies
to make the quality products.

Development of a practical
database
of
clean
technologies for the leather
industry. Development of
networks of experts on
clean technology for the
leather industry.

G D P real growth rate:0.4%.
GDP - per capital (PPP)- Per capita $7,989

Gujarat leather industry has
witnessed robust growth,
transforming from a mere
raw material supplier to a
value-added
product
exporter. In fact, today,
almost 50 per cent of
India's leather business
comes from international
trade.

ECONOMICAL

7

H&M does not accept rabbit hair. Although judicial independence exist in principle. This organic waste accumulates in the wastewater sent to the local purification plant. business ethics can be normative or descriptive. one of the first steps is the removal of hair from the hides using a disintegration agent such as sulfide. buffalo. camel. In leather manufacturing. LEGALITY 8 . Must get Environment Clearance Certificate as per notification dt. cow. Inherited most of its principles from the court system of the Soviet Union and the Ukrainian SSR. In broader description.ETHICAL POLITICAL This has been pressurelized by enactment of some laws aimed at ensuring that businesses operate within some ethical principle which defines the limits of their operation. Ukraine is a republic under a mixed semi-parliamentary semipresidential system with separate legislative. in good faith. judicial review of legislative act. when we. yak. andjudicial branches. Having own land for construction of tannery & flaying centers.14-9-2006 from Ministry of Forest & Environment Department. believe that the law requires it or for the protection of our legal rights. horse and pig. Leather may disclose information when legally compelled to do so. Leather Industrial Cooperative societies are eligible. ENVIRONMENTAL Science has developed a new process that reduces the residue from unhearing by 50%. Legal system: civil law system. New Delhi & No Objection Certificate from Pollution Control Board. executive. This paper analyses the far reaching impact of these environmental regulations on export sector of Indian Leather Industry. llama. H&M only accept hair from living and domesticated animals including but not limited to goat. in other words. the court system of Ukraine is slowly being restructured. including angora rabbit hair. in practice there is little separation of juridical and political powers. alpaca.

leather) -development of tolling manufacture Threats -lack of investments into the sector -strengthening of the expansion of smuggling and counterfeit goods -high competition with the world leaders 9 Shift in global manufacturing base. Population of Gujarat is As per 2015 census 65.105.282 and female population is 28.237 and the male population is 31. from developed to developing countries -Capability to move up the value chain Potential threat of companies from competing nations such as China.901.Population of Ukraine is decreasing continuously from (2004 to 2014).8 million in 1960 and sex ratio is 101 males to 100 females. SWOT Analysis of Ukraine & Gujarat Ukraine Strengths Weaknesses Gujarat Established manufacturing base Extensive industry experience Low maturity of -poor quality of wool and manufacturing hides -low level of Slow adaption to global competitiveness -lack of fashion trends investments into industry availability of transport and energy infrastructure Opportunities -development of industries of raw materials processing (cotton. setting up manufacturing facilities in India. negating the value-proposition of Indian players .482.The total population in Ukraine was last recorded at DEMOGRAPHICAL 42545059 (42.346 and sex ratio is 100 males to 92 females. wool.5 million) people in 2013 from 42.

290 km2). With over 200 million inhabitants in 2011. It covers 93. The service sector comprises travel and tourism. equal to 6. Jharkhand to the southeast. as of Jan 1. released by Planning Commission of India. Agriculture and service industries are the largest parts of the state's economy. in local currency. it is the most populous state in the country as well as the most populous country subdivision in the world. agro processing. textiles. Economy of Uttar Pradesh Contribution in GDP In below table of states and union territories of India by their nominal GDP for the financial years 2005-06 to 2013-14. Haryana and Delhi to the northwest. handloom and handicrafts.933 square miles (243. 2014 it has temporarily stabilized at roughly 62 Indian rupees per USD. Chhattisgarh to the south and Madhya Pradesh to the southwest. Hindi is the official and most widely spoken language in its 75 districts. hotel industry. GDSP has grown in local currency terms but often roughly flat in USD terms. Uttarakhand and the country of Nepal to the north. and is the fourth largest Indian state by area.OVERVIEW OF UTTAR PRADESH The state is bordered by Rajasthan to the west. Uttar Pradesh is the fourth largest Indian state by economy. insurance and financial consultancies. Bihar to the east. Revised data for the past years differ from the tables below. food processing and sports goods. tourism.88% of the total area of India. 10 . mineral-based industries. with a GDP of 7080 billion (US$110 billion). Due to the slide in INR/US Exchange from 2011-2013. real estate. airports in Uttar Pradesh and Uttar Pradesh State Road Transport Corporation. INR rates have varied over the years. railway transportation Industries : Information technology. Transportation : Highways in Uttar Pradesh.

- Excise duty is 10-12%.01 14.66 20. 11 .34 65.O.22 crores) (For state) Major Players of Leather Industry: - Khadims - Bhartiya Group - Crew B.62 Contribution of Industry to GDP(%) 14.Particulars UP India Net domestic Product (at factor cost) (Rs 316905 4493743 Contribution of Agriculture to GDP(%) 25. Products Limited - Kings International Ltd - Acknit Industries Limited - Aliza Exports Private Ltd - Calico Trends - Drish Shoes Ltd - Hidesign - Super Tannery Ltd Taxes and duties- Customs Duty will remain at 10%.S.16 Contribution of services to GDP(%) 60.

and Infrastructure. handicrafts and Sports Biotechnology & Population GDP (Nominal) rate Major Industries Goods. Port Tourism.02 USD Coal.383. Strengths    Availability of Elevated  Established raw materials growth readily manufacturing Proximity to available. and cheap industry India) labor force experience Increasing  Significant   Extensive Availability of demand on raw material labor at domestic and availability competitive rates.628 177.477 60. Tourism. Mining’s. Agro processing. Gas &Petroleum. Agriculture. (Russia. Machinery. Pharmaceuticals.557 199. based Textiles. IT. base.581. IT Handloom & Infrastructure.813.85 USD Currency Ukrainian Hryvnya Rupees Rupees Exchange 0. Electric Power. Chemicals. major markets highly skilled. international    The initiatives  Government’s markets taken by the initiatives to Availability of Government facilitate growth transport and for the change 12 .Findings in terms of comparative analysis of Leather industry in Gujarat. Ukraine and Uttar Pradesh Parameter Ukraine Uttar Pradesh Gujarat 42.02 USD 0.746 USD 11832. China. Textiles and IT.62. Minerals Tourism.047 USD 0.4 billion USD 8. Minerals & Pharmaceuticals.

 Lacking wool and hides. industry. government in processes. value. scale due to The large size fragmented Lack of domestic of work force structure. brands.    Slow adaption to High share of fluctuation in exports of goods International economies of with low added pricing.   significant   13 Lacking Lack of . global fashion The trends. is resulting in Lack of qualified increased personnel wages. Lack of terms of investments into warehousing.energy infrastructure  in the Policies  Capability to Availability of incorporate production new capabilities technologies relatively cheap required and labour force to handle large (south) projects  Emphasis is given to continuous design up gradation & product development Weaknesses    Poor quality of   Low maturity of support from manufacturing Low level of the and business competitiveness.

tolling  Potential to market due to (cotton. developed to Cultivating developing industries of raw fashion countries. cycle required for different products.  Unaware of International standards. Asset Transfer of Management anti-dumping technologies (SAM) & duty on through the information competing organization of technology nations. 14 Imposition of .     Considered as a manufacture. manufacturing would help in using the eradicate the experience of the length of the technological production leaders. support Development of software(DSS) viable alternative Software to China. Opportunities   Expansion of the  Shift in global accelerate in manufacturing entry into the the domestic base. move up the Using decision value chain. market. presence in the global fashion market. Development of     Capability to leather). materials awareness processing globally.depreciation of strong fixed assets. wool. from EurAsEC.

investments into placements the sector. (many of the companies from Strengthening of businesses are competing the expansion of owned by nations such as smuggling and family). setting up The difficulty manufacturing goods. South East Asian The scope is countries in the below the limited for low-mid threshold level of mobilizing segment. major parts.Threats     The level of Industry is  Mounting manufacturing unorganized in competition from domestic. costly private of Indian players. Products are counterfeit     borrowing. 15  Potential threat of . China. public issues high end Lack of & private segments. and economic funds through from Europe in security. High competition bank loans is negating the with the world resulting in value-proposition leaders. of retrieving facilities in India.

Uttar Pradesh. Bata.i. manufacturer. BADER name stands for There is opportunity to The requirement of raw premium quality of leather export better quality of leather can be fulfilled by in the Automobile industry. to produce has second largest the population of cattle. Development of networks of experts on clean technology for the leather industry. industry. so it leather products. and Gujarat Ukraine Uttar Pradesh Gujarat The leather tanneries can do There is big demand for raw It export their finished leather leather to Ukraine buyers. Gujarat and can import the They have requirement of premium Kollamat leather premium quality of raw for leather.Comparative Analysis of Bilateral Trade Opportunities in Leather Industry in Ukraine. Khadims. Ukraine requires advanced Machineries can Automobile be Development of a practical technology and machineries produced in UP and export database of clean for cleaning. can tanneries made in capture the Gujarat like Bharwadi and Ukraine market. are The raw leather can be Gujarat is capable to fulfill 16 . There is a big demand for The major shoes brands of Leather branded leather shoes and India accessories. Ukraine. lakhani Ukraine shoes Liberty.e. vegetable leather can be exported to Ukraine. Red Desijoda which is made by Tape. has wider scope to export to Ukraine. leather to Ukraine buyers. processing and it to the leather tanneries of technologies for the leather waste water control.

requirement tanneries and then sell it to leather. 17 of raw .suffering from shortage of processed and cleaned in the raw leather. the buyers.

five group companies . Unnao.P.Super House Limited. Mr. The name of the company was changed to Superhouse Leathers Limited on March 4. the U..000 million. Superhouse Group has emerged as one of the largest players in the industry. Super Garments Limited.)..1996 and finally Superhouse Limited on November10. leather products and textile garments. Sharp Leathers Limited. 4. 1980. Towards this end. From a single tannery in the 1980’s producing finished leather. Agra and Noida The turnover of Superhouse Group is more than USD 200 million for the financial year ending as on 31stMarch 2015. 2003 to 2005 and Chairman of the Council from 2007 to 2009. optimize and control every phase of the manufacturing process from raw material to finished products to ensure that end products are of the highest quality and also the best value for money for our clients. under the efficient leadership of Mr. The parent company.A.S. and Romania primarily engaged in marketing and distribution of leather.1989. Aminsons Leather Finishers Pvt. Allahabad. was incorporated as private limited company on January 14.A. The Group has 15 manufacturing units located in Kanpur.were merged with Aminsons Limited in 1994. Council for Leather Exports is an 18 . 1984 and its name changed to Aminsons Limited on February 21.Mukhtarul Amin. The Group have four overseas companies in the UK. achieve and deliver the very best. we engineer. 2006 with the approval of the Registrar of Companies. It was converted into a public limited company on December 22.Mukhtarul Amin was the Vice Chairman of Council for Leather Exports for 2 years i.E. Super Footwear Limited and Allen Shoes Limited . leather products and textile garments.e. The group has crossed an annual turnover of Rs. In addition. Kanpur (U. We started with a commitment to excel. the U. 1995 and 1996 as per the orders of the Hon’ble High Court of Judicature.Super House group Superhouse Group is a conglomeration of several companies engaged in manufacturing and export of finished leather.

This company has taken up establishment of world class Testing Laboratory and Multi Skill Development Centre in Kanpur under ASIDE Scheme. Noida in the year 2003 for a period of three years. which is known as Kanpur Unnao Leather Cluster Development Company Limited.54 million during his tenure. 19 . Exports went on increasing to USD 3. During the tenure as Chairman of Council for Leather Exports. recording a growth of 11. Mr. It was during his tenure that the FDDI Jodhpur centre was established. Amin’s aim to help the leather industry in Unnao and Kanpur took him to establish a world class Testing Laboratory and Training Centre. During the same period he took approvals for centres in Patna and Hyderabad and got the construction work initiated. Mr. Amin had an ambition to see the growth of leather industry of India.05 billion. Mr. FDDI is the largest footwear-training institute in the world having 7 campuses located in Kolkata / Fursatganj / Chennai / Chindwara / Rohtak / Noida and Jodhpur. Exports had touched a level of USD 3. To achieve this. he established a company backed by leather industry of Kanpur and Unnao.Mukhtarul Amin was appointed as the Chairman of Footwear Design & Development Institute (FDDI). Government of India.export promotional body under the Ministry of Commerce and Industry.15 percent over the previous year 2005-06.

Allahabad. Sharp Leathers Limited. was incorporated as private limited company on January 14. USA and Superhouse Middle East F. 2006 with the approval of the Registrar of Companies.) Ltd. five group companies – Super House Limited. It was converted into a public limited company on December 22. The parent company. 20 . One more company named Linea de seguridadsl in Spain was acquired in Aug 2012. optimize and control every phase of the manufacturing process from raw material to finished products to ensure that end products are of the highest quality and also the best value for money for our clients.C. Both these companies are engaged in the marketing/production of safety footwear. 1995 and 1996 as per the orders of the Hon’ble High Court of Judicature.P). in March’98 having its registered office in London. Towards this end. a U. we engineer. in U. 1996 and finally Superhouse Limited on November 10. achieve and deliver the very best. The name of the company was changed to Superhouse Leathers Limited on March 4.. namely Superhouse (USA) International Inc. The company has incorporated a wholly owned subsidiary in United Kingdom in the name of Superhouse (U.E. the group acquired Briggs Industrial Footwear Limited. In addition. Super Garments Limited. 1980. Super Footwear Limited and Allen Shoes Limited – were merged with Aminsons Limited in 1994. leather products and textile garments. The thirst for ambition to see Superhouse Group to acquire the multinational entity continued and he established subsidiary companies and depots in overseas countries. From a single tannery in the 1980’s producing finished leather.INTRODUCTION ABOUT SUPER HOUSE Superhouse Group is a conglomeration of several companies engaged in manufacturing and export of finished leather. Superhouse Group has emerged as one of the largest players in the industry. The group also has two more foreign subsidiaries. involved in trading of leather products primarily of parent company. which is primarily engaged in the marketing and distribution of leather and leather products.Z.. 1984 and its name changed to Aminsons Limited on February 21.K.. Aminsons Leather Finishers Pvt. Kanpur (U. 1989. In May 2011. based company incorporated in 1944.A. We started with a commitment to excel.K.

Superhouse Group has 18 units. leather goods and textile garments that are appreciated all over the world. Germany and Romania. Spain. Real Estate and Retail. Hudson Bay. ANZ & and SABS standards. Andre. Four modern tanneries provide us with the finest quality leather for our footwear production. To meet the exacting demand of clients we also import leather from Brazil. Italy and Columbia. A US $200 million group. Filanto. Stringent EN 345-norms make us one of the most respected manufacturers amongst importers from European countries. Secura and many more. The Group has two leather goods manufacturing units for Leather Accessories and Garments The Group is also engaged in the manufacturing and export of Readymade Garments. Being equipped with requisite infrastructure and strict adherence to high standards of quality. with a workforce of over 5000 and a presence in more than 35 countries. Our commitment to quality is reaffirmed by our ISO 9002 certification. Our existence in the trade for over three decades has given us a wealth of knowledge. skilled and semi-skilled workforce and competent managers has helped us in carving out an enviable position for ourselves in the global market. Auchan. HeckelSecurite. Shoe Fayre. In the last decade the group spread its wings in the field of Education. we are approved vendors for global brands such as Wal-Mart. The Group is well equipped with the most modern machineries and a specialized workforce and produces all types of quality leather. value and quality. Riding Products and Pet Products All of our manufacturing units are ably backed by our marketing offices strategically located in the USA. we are able meet CSA. the UAE. A perfect blend of highly technical. In addition. is a multi-unit and multi-product conglomerate with brand leadership in the field of footwear manufacturing and exports. the UK. Nine state-of-the-art units involved in manufacturing footwear and Shoe accessories. which allows us to offer our customers the maximum in choice. 21 .OVERVIEW SuperhouseGroup.

from solid relationships with employees to market acceptance.a name to reckon with. this commitment continues to be our credo.VISION & MISSION TO BE A LEADER THROUGH EXEMPLARY COMMITMENT Superhouse stands firm in its resolve to be a leader. Retaining our leadership through growth as a consequence of customer satisfaction is of paramount important to us. We also stand committed to meet our customer’s expectations in terms cost and quality. The last four decades have been dedicated to building strong foundations for Superhouse brick by brick: from infrastructure to technology. and is constantly monitored and upgraded. true to the saying. 22 . We are now poised to take the next giant leap – to establish ourselves as the undisputed leader in leather products be it footwear or finished leather or leather accessories. Again. Superhouse Group aims to constantly improve the quality of its products by fulfilling its Customer’s Expectations. in the international arena. processes is in place. the framework for quality inputs and . but we still have a long way to go. To achieve our vision.

Continuous efforts are made to create awareness about environmental conservation among inhabiants of towns/cities where our units are located. Kanpur • DPS Indiranagar.SOCIAL RESPONSIBILITY Besides business development which is an ongoing process. The tanneries and shoe units have been awarded with the certificate of OHSAS 18001:1999 for Occupational Health and Safety Management System Standard. Lucknow 23 . The Group is implementing the Social Audit in every manufacturing unit and the leather garments unit of the Group has already received the SA8000 Certification. The Group promoted a Common Effluent Treatment Plant in the state of Uttar Pradesh in 1993 for the treatment of effluent generated by leather industries at the secondary stage with the assistance of the World Bank and the government of Uttar Pradesh. An Environmental Management System has been implemented at the tanneries and shoe units. All four Group tanneries have primary Effluent Treatment Plants. the group promoted the first COMMON EFFLUENT TREATMENT PLANT in the state of Uttar Pradesh in the year 1993 with the assistance of the World Bank and the Government of Uttar Pradesh. RaiBareily Rd. The Group has also entered the field of education in collaboration with a leading Educational Society – Delhi Public School (DPS) – and has opened several branches: • DPS Kalyanpur. Also. Lucknow • DPS Eldeco. The units has been certified as ISO 14001:2004. Superhouse is also way ahead in fulfilling its social obligations towards nation building. This initiative was a major step towards maintaining the ecological balance. as a step towards creating a better tomorrow. The Group is committed to the Health and Safety of its workforce.

Lucknow • DPS. Saharanpur The Group has taken several steps forward in this direction and established Allenhouse Public School. Kanpur • Allenhouse Institute of Technology. Panki. Rooma. Bareilly • DPS. B-Block. Rooma. Vasundhra. Kanpur • Allenhouse Public School. Kakdeo Kanpur • Allenhouse Public School. Ghaziabad. Vishwa Karma Day are celebrated at the units. Lucknow • AllenKids. VrindavanYojna.• DPS Jankipuram. Allenhouse Group of Colleges and Allen Kids pre-school at different locations across the region: • Allenhouse Public School. SWOT ANALYSIS Strengths • High Growth • Ready availability of highly skilled and cheap manpower • Large raw material base • Policy initiatives taken by the Government 24 . Civil Lines. Kanpur All national events such as Republic Day and Independence Day and other days such as May Day and. Kanpur • Allenhouse Public School. • Allenhouse Public School.

25 .• Capability to assimilate new technologies and handle large projects • Continuous emphasis on product development and design up gradation Weaknesses • International price fluctuation • Huge labour force resulting in high labour charges • Lack of strong presence in the global fashion market • Unawareness of international standards by many players Opportunities • Rising potential in the domestic market • Growing fashion consciousness globally • Use of information technology and decision support software to help eliminate the length of the production cycle for different products • Use of e-commerce in direct marketing Threats • Major part of the industry is unorganized • Limited scope for mobilizing funds through private placements and public issues (many businesses are family-owned) • Difficulty in obtaining bank loans resulting in high cost of private borrowing • Stricter international standards • High competition from East European countries and other Asian countries • Lack of communication facilities and skills • Lack of warehousing support from the government.

26 . • CAD-CAM facilities at fashion garment units. • State-of-the-art laboratories at the tanneries. • Separate Design Centers for Shoes. we have exclusive design centres in China and England too. • CAD-CAM facilities at shoe factories. Innovations and upgrading technologies are a regular feature of our R & D programme. and Garments.RESEARCH & DEVELOPMENT POWER OF KNOWLEDGE The Research and Development facilities of the Group: • Separate Research and Development Departments for every factory. Each business unit has its own dedicated lab/design centre. • Renowned designers from various countries. • Specialized design center in China. • R & D and design centers. This has played a key role in competing with major players in the leather and textile industry. Apart from this. Our design and product development personnel frequently visit international events and fairs to have firsthand knowledge and feel of the latest in the overseas markets. Bags. both in Indian and overseas markets.

PART 2 Products of Super House  Safety Footwear  Finished Leather  Footwear  Military Boot  Textile / Garments  Leather Accessories 27 .

AS/NZS With more than a decade’s experience in the area under its belt. non metallic footwear and forest footwear. currently we are producing Injection Moulded safety shoes with four DESMA plants installed in Kanpur and Unnao. These brands have carved a niche for themselves in international markets. Direct Rubber Vulcanized soles and Genuine Goodyear Welted soles. A special product range of safety footwear for executives and ladies is also produced. extreme cold. snow and slush. Capacity: 4. and are subjected to rigoros testing specifications through accredited laboratories. Superhouse produces safety footwear on different constructions such as Direct Injection pu/pu. Jungle boots and Officers’ shoes. Our “Double Duty” and “Allen Cooper” brands are in existence for the last ten years. Our premium range consists of water proof footwear. EN20345. Double Density PU/TPU soles. Desert boots . pu/tpu. 28 . We offer safety shoes with Double Density PU/PU soles. Combat Boots Superhouse combat boots – the ultimate in toughness — are made to withstand the vagaries of weather. desert. Mono Density PU soles.SAFETY FOOTWEAR Having entered safety footwear segment in 1998. conforming to appropriate military standards of Europe and other continents.000 pairs per day QualityStandard: CSA/ANSI. pu/rubber (made on most sophisticated machines from Desma Germany andCIC Ralph vulcanized machines from the UK) and Goodyear welted footwear with a traditional construction on rubber and leather soles. These products are classified as Combat boots. rocky mountains. Double Density PU/Rubber soles.

PU/TPU and PU /Rubber  Direct Vulcanized Rubber  Genuine Goodyear Welted. 29 . Manpower We have 2.Products  Direct Injection PU/PU .000 experience workers who are supervised and managed by highly skilled and qualified and professional managers.  Cement Construction.

Nappa. the Far East. Foil.FINISHED LEATHER Our tanneries.  Cow softy. Shrunken. etc 30 . Mexico. we are well prepared to deliver a vast variety of colours and finishes to our valued clients in the shortest possible time. Milled Glazed.. Garment nappa. Linings.G.. are equipped with state-of-the-art-technology and produce high quality leather. Serving to the ever changing and highly fashion oriented needs of our clients. South Africa. etc.  Goat leather such as Shoe Nappa. China. South Korea.  Sheep Leathers such as Cabretta. suede and other premium ranges. Milled Nappa. Oil pull up. Print leather and linings. leather goods and furniture industries. Eastern Europe. Glazed.  Upholstery leather of all finishes. catering to the requirements of the footwear. Pearlized and linings. C. We produce a full range of quality leather including:  All kind of Buffalo leather including Full Grain. spread all over Western Europe.

 Harness. Non-Din and EN345 specification. Belting Leather. rocky mountains. deserts. These products are classified as Combat boots. leather for Eshestarian products. QualityStandards Manufacturing Units are having ISO 9000-2000. conforming to appropriate military standards of Europe and other continents. OHSAS 18001-2008 certification and products are compliant Din. Jungle boots and Officers’ shoes. snow and slush. MILITARY BOOT Super house Military & Combat boots the ultimate in toughness are made to withstand the vagaries of weather. and are subjected to rigoros testing specifications through accredited laboratories 31 . extreme cold. Desert boots. ISO 14001–2004.

32 .

as footwear is a key component of the fashion industry. In this sense. Along with differences in consumption between countries. Women’s footwear is consistently the largest sector of the market.ourtshoes.MARKET SEGMENTATION Segmentation can be very useful in the EU market as there is a wide range of shoe-types. Meanwhile.wedges. there is strong demand for footwear from luxury. colours that can be linked to different types of consumers. styles. there are also differences in consumption by market segments. MARKET SEGMENTATION Segmentation can be useful in the European market as there is a wide range of shoe-types. designer fashion brands. Meanwhile.ballet. including heels.with women typically more fashion-conscious than men in the UK. by lifestyle or by price/quality. this sector is largely made up of fastfashion footwear.and. Women: Women’s footwear is consistently the largest sector of the market. this sector is largely made up of fast-fashion footwear. styles. as footwear is a key component of the fashion industry. by lifestyle or by price and quality. 57% of footwear value sales in EU markets in 2008. there is strong demand for footwear from luxury.. colors that can be linked to differ rent types of consumers. The fashion industry provides a broader 33 . In this sense. The most common segmentation methods for all European countries is by user. there are also differences in consumption by market segments. so that fashionconscious consumers can purchase high volumes of low-cost trend-led footwear and update their image at low costs. The most common segmentation methods for all EU countries is by user. designer fashion brands. so that fashion-conscious consumers can purchase high volumes of low-cost trend-led footwear and update their image at low costs. Along with differences in consumption between countries.pumps. The fashion industry provides a broader range of women’s footwear styles than is available to the men’s footwear market. with women typically more fashion-conscious than men in the other country.

Housewives buy a wide range of foot ware. Younger housewives tend to follow trends and in some countries do not object to buying copies of branded or designer footwear. The share of men’s footwear averages around 26% in the major EU markets with higher shares in the UK. with the UK footwear manufacturing industry having a heritage for quality leather men’s shoes. Many men regard comfort. who are more fashion and brand conscious and older men. In terms of smart footwear. with a stronger affinity for functional designs. Platform Sandals or boots reveal either the heel or toes. as well as a pair of sports footwear. Other key styling elements in Sandals are T-straps and crisscross ties across the instep. They tend to look for practical footwear that they can use for a long time. Men : Mens are typically less driven by fashion trends. flip-flops. boots. or as leather sandals with a wooden/cork sole and a high heel. Working women in most of the countries tend to spend much on their outfit and related fashionable footware. style and quality more important than fashion. Men’s footwear tends to be more expensive than women’s footwear. court shoes. Older men usually have footwear to wear at the office. Women generally spend more on footwear and usually have various pairs of shoes for different occasions. These sandals come either as ultra-flat gladiator and/or Roman sandals with straps and beaded decorations. and they buy less pairs than women. one formal and one casual pair. sneakers. wedges and ballet pumps. ballerinas. This segment can be sub-divided into younger men. healthy sandals and increasingly more high upper styles are popular. from cheap to expensive shoes. Recent designs in men’s shoes varies from round to elegant. For women’s shoes. Spain and France. Italy. men are often willing to invest substantial amounts in luxury shoes. including heels. tapered or pointed 34 . loafers. and are therefore the main consumers of sports footwear.range of women’s footwear styles than is available to the men’s footwear market.

as well as for infants up to the age of 5. there is strong demand for low-cost. It is worth noting that the primary consumers of children’s footwear are adult parents and. particularly in ankle-loafers and classic oxford shoes. In some men’s footwear. classic models are expected to make a comeback in 2010 including Oxford shoes. disposable footwear for this demographic. Chelsea boots. with children growing rapidly and having quick growth spurts. There is also ongoing demand for school footwear range. As a result. there is a strong need to replace children’s footwear on a regular basis. there is strong demand for low-cost.footwear. rounded Chelsea and robust biker boots were hot items. Children’sFootwear This sector includes footwear for children aged between 5 and 15 years old. For men’ shoes ankle-high boots with slim lasts. vintage colours (brownish mixed with bright colors) and white soles. thus. Children’s footwear often replicates that of adults. For summer 2010. the expense. flexible soles not well-finished which contrasts to the sporty modern flair in new sneakers. With children’s footwear often having lower price tags than adult footwear. There is also ongoing demand for school footwear ranges. brands and styles favoured are largely the choice of adults and not the child wearers. this is especially true in recent years as the ‘mini-me’ craze is seeing parents dressing their children in a similar style to themselves.  Children and teens This sector includes footwear for children aged between 5 and 15 years old. this is the smallest sector of the market. the welts are emphasized and some shoes feature contrasting stitching and treaded soles that provide a rustic look. as well as for infants up to the age of 5. With children’s footwear often having lower price tags than adult footwear. Children’s footwear often replicates that of adults. slip-ons and flip-flops remain popular. In addition. sneakers (in bright colors). As a result. the suede Desert Boot and top-sliders. with children growing rapidly & having quick growth spurts. sturdy lace-up boots. while. disposable footwear for this demographic. Rustic shoes have pale. this is especially true in recent years as the ‘mini-me’ craze is seeing parents dressing their children in a similar style to themselves. It is worth noting that the primary consumers of 35 . while. In sneakers. there is a sustained attention to retro models. there is a strong need to put back children’s footwear on a regular basis. this is the least sector of the market.

flexibility and soles as important. Particularly clothing retailers come with complete outfits. Special footwear collections for children sometimes relate to films (Disney or Muppet characters) or video games heroes. In this segment. This is recognized by the chain stores (clothing and footwear) as the ‘kids getting older younger’ (KGOY) trend. thus. including shoes. there are differences in who buys footwear and the criteria used when buying footwear: • Children aged between 0 and 3 years old Parents buy the shoes and regard shape. • Children aged between 3 and 7 years old These children are similar to the above group. Looking more closely at children’s footwear. brands and styles favoured are largely the choice of adults & not the child wearers. Decorations (beads) and bright colors are dominant themes for children’s footwear. • Children aged between 7 and 15 years old Although parents still buy the shoes they are increasingly influenced by what the child wants. These children referred to as ‘pre-teens’ spend around 2-3 hours hours per day with the media (TV. the expense. their share averages around 17% in the major markets with lower shares in Germany & Belgium and higher shares in the UK and France. but family income and child’s preference starts to play a role. These children are heavily influenced by the media (music video clips) and the Internet (blogs) Differences in tastes between boys and girls become important in footwear choice. Girls now wear more fashionable footwear at a younger age than previously. Children nowadays have more spending power as families are smaller. 36 . video games and Internet).children’s footwear are adult parents and. They are willing to pay for good quality to prevent problems with their child’s feet.

especially sneakers (with Velcro fasteners).• Teens aged between 15 and 19 years old They are influenced by TV and magazines and are aware of the latest fashion trends and brands. Mary Jane’s. basketball shoes. as pocket money is high. They are attracted to adult footwear and international fashion styles. They also are well-informed by the Internet (blogs). (lambskin) boots. (wedged) pumps. Depending on the EU country. sandals. espadrilles. teens have quite a lot of money to spend. online sellers and retailers’ sites advising them what sort of footwear matches well with different outfits. 37 . crogs or flip-flops. ballerinas.

Among affluent consumers. and fashion boutiques otherwise by the high-end department stores. Segmentation by price/quality The footwear market can be also segmented by price level being related to the footwear quality. In addition. design and brands. in Poland the ratio varies between 10-15% of the population. trendiness.  Luxury segment This segment comprises designer footwear being close to perfection. there is a growing interest in excellence (material. Luxury footwear is sold by a few exclusive footwear specialists. comfort. Its design is often refined and elegant and is mainly worn on special occasions or when going out. few people can afford luxury footwear. This market 38 . the EU luxury footwear segment was estimated at 18% of total EU footwear sales in 2008 (in value) and has not been affected by the recession as the other segments. comfort. particularly in Eastern EU countries. designer shops. For example. durability) and craftsmanship. Because more affluent EU consumers have become careful in their expenditure. They tend to move away from conspicuous consumption in more constrained economic times. they tend to be more critical about social and environmental issues. Based on figures from the survey Bain & Company.  Fine segment In many EU countries. fashion houses and luxury footwear importers increasingly depend heavily on the ‘near-luxury’ market.

single brand stores. exclusive clothing stores or by department stores. especially in Eastern EU countries. fashion boutiques. Figure 1.4 to 9. The fine segment suffers currently from consumers moving away to the medium segment as prices are lower. In the fine segment. It comprises well-designed branded footwear that is accessible to a wider consumer group at affordable prices (between € 100 and 300).is referred here as the fine segment. 2008 % value and positioning by major brands 39 . Brands are important. Consumers in this segment are prepared to pay for quality footwear.1 billion (19% share). sales fell from € 9. footwear remains exclusive but is made in larger quantities and varieties than the collections in the luxury segment.1 Segmentation of EU footwear market by price and quality. Between 2007 and 2008. Another problem is the rising sales of cheap imitations (counterfeit shoes). but buy less frequent than consumers in the other segments. and this footwear is sold by independent footwear specialists.

values and benefits of tangible products. sold to the same customers groups and are marketed through the same type of outlets or fall within given price ranges. it's only a beginning. brand. Developing a product and service or idea is not an end of product management. characteristics. brand images are all important. It is also a key variable in microeconomic price allocation theory. which has seen wide use. PRICE:Pricing is one of the four Ps of the mix. The four Ps concepts are explained in most of the marketing textbook & classes. the other things to be considered are branding. A famous marketer. Pricing is the manual or automatic process of applying prices to purchase and sales orders. A product line is a group of products that are closely related because they function in a similar manner. The marketing mix is generally conventional as the use and specification of the 'four Ps' describing the strategy place of a product in the marketplace. design. quantity break. Retail outlets to provide quality footwear products need tointroduce the product by identifying the needs of present & future customers and alsonecessary infrastructure should be acquired before offering a product to the customers. One version of the marketing mix originated in 1948 when James a marketing decision should be a result of something similar to a recipe. in his American Marketing Association presidential address. promotion or sales campaign. This version was used in 1953 when Neil Borden. Jerome McCarthy. proposed a 4 P classification in 1960. style. the rest being cost centres. based on factors such as: a fixed amount. tactical marketing tools that work together to attain company's objectives. 40 . Brands are intended to carry the beliefs. In retail advertising branding. building brand image & promoting. took the recipe idea one step further & coined the term "marketing-mix". package and utility. brand name. E. PRODUCT:Marketing decision related to product is concerned with shape. Price is the only revenue generating element amongst the 4ps.4Ps ANALYSIS MARKETING MIX OF FOOTWEAR RETAIL UNITS:The 'marketing mix' is a set of controllable.

the type of promotions used. support a product's positioning and be consistent with the other variables in the marketing mix. qualified professional and a modern infra structural facilities to improve quality of retailing. distribution. Automated systems require more setup and maintenance but may prevent pricing errors. which in turn affects total revenue and profit. profitability). who sells to retailers Retailer (also called dealer or reseller). price prevailing on entry. A number of alternate 'channels' of distribution may be available: Distributor. each passing the product down the chain to the next organisation. A well chosen price should achieve the financial goals of the company (e.specific vendor quote. and many others. This involves adding a markup amount to the retailers cost. The pricing technique used by most retailers is cost plus pricing.. Each of the elements in these chains will have their own specific needs. or intermediary. This process is known as the 'distribution chain' or the 'channel. along with those of the all-important end-user 28. A major step towards making a profit in retailing is selling merchandise for more than it costs to you. PLACE:Place is also known as channel. This difference between cost of merchandise & retail price is called mark up. shipment or invoice date. Chain of intermediaries.g. A retailer's prices influences the quantities of various items that consumers will buy. and the quality of the product. fit the realities of the marketplace (Will customers buy at that price?). Price is influenced by the type of distribution channel used. Hence. who sells to end 41 . This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer. which the producer must take into account. correct pricing decisions are a key to successful retail management. before it finally reaches the consumer or end-user. Retail outlets should focus on place where products are made available to customers to achieve customer satisfaction. Increasing cost on inputs is fixation which makes possible a fair synchronization of users & retail outlets interest. combination of multiple orders or lines. Another common technique suggested is retail pricing. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. Retail outlets need to invest crores of rupees on the variety of brands.

g. camps. It is one of the four key aspects of the marketing mix. communication can be used to influence. Below the line promotion: All other promotion. a wholesaler for example. The purpose of likely communication or promotion budget and their distribution over target markets will influence the selection of communication mix. or company. with the possible exception of the pricing mechanism itself. publication. There have also been some innovations in the distribution of services. are the appropriate devices for promoting products promotional or informational activities at the point of delivery of products can also have an important role in communication. as goods are transferred among separate parts of the organisation at a transfer price'. this process can and should be viewed as a normal buyer-seller relationship. The fact that these are a captive market. To all intents & purposes. The various promotional tools which public relations can use for promoting retail outlets are leather fairs.g. Sponsorship. radio.customers. should not discourage the participants from employing marketing techniques. Internet and Mobile Phones) in which the advertiser pays an advertising agency to place the Ad. Promotion is an act of communicating product and its qualities to customers and persuading or influencing them to purchase. Promotion is generally sub divided into two parts: Above the line promotion: Promotion in the media (e. seminars & news release etc. PROMOTION:It involves disseminating information about a product. newspapers. is now mainly used to extend distribution to the large number of small. exhibitions. Communication is an important tool in promoting the company products before services. endorsement of option leaders etc. or each departments.. neighbourhood retailers or dealers. In large markets (such as larger countries) a second level. advertising. resulting in a monopoly price'. E. Many of the marketing principles & techniques which are applied to the external customers of an organisation can be just as effectively applied to each subsidiary's. product line. 'internal' customers. TV. brand. 42 . advertisement typically used for consumption goods. educational programmes. In some parts of certain organisations these may in fact be formalised. Marketers need to select appropriate ingredients for communications programme. Public relations. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place.

Endorsements. Sales promotion. 43 . A promotional plan can has a wide range of objectives. and trade shows. public relations. including: sales increases. The specification of these four variables create a promotional mix or promotional plan. innovative product acceptance. A promotional mix specifies how much attention to pay to each of the four subcategories. & how much money to budget for each. merchandising. personal selling.Product placement. direct mail.

leather suppliers are generally not organized to reach final consumers in terms of final product. the five forces model looks at five specific factors that help determine whether or not a business can be profitable.PART 3&4 COMPETITIVE ENVIRONMENT Porter’s five forces analysis for Leather industry Whether you are starting a new business otherwise looking for more insight into your existing company's prospects. you probably have questions about the competition. Given this. Additionally. they depend on brands buying their leather hides. Selfridges. etc. the quality of raw material is of the utmost importance as it has an impact in the feel of the final product. and certainly leather goods. Originally developed by Harvard Business School's Michael E. Porter in 1979. Net-A-Porter. are quite known on their own they are 44 . specially in the case of exotic leathers which are scarce. overall there is a low supplier power in the leather goods market. Although scarcity has perhaps increased suppliers bargaining power. based on other businesses in the industry. Since most up scale department stores and e-stores. BARGAINING POWER OF BUYERS When considering the bar gaining power of buyers. 1. such as Saks Fifth Avenue. luxury brands has always recognized the importance of establishing long-term relationships with reliable suppliers offering the highest quality materials. thus. 2. These relationships are managed in such a way that suppliers are generally locked-in to the relationships by having high switching costs & setting up their own farms for leather production. Neiman Marcus. BARGAINING POWER OF SUPPLIER In the case of products. the brand loyalty individual consumers have towards the specific brands is key to determine which party have the most influence. Barneys Harrods. branding and distribution. One way to answer those questions is by using Porter's Five Forces model.

but substitutes may also come from categories such as jewellery & watches. However. designs and brand positioning are differentiate enough that customers may find it difficult to switch brands. On the other hand. some potential customers remain price-sensitive and therefore may opt to replacement leather goods for their more affordable counterparts. However. bargaining power is also reasonable as most clients have emotional attachments to their preferred brands. perfumes & apparel amongst other categories. not carring certain brands customers expect weakens the stores’ image Additionally. loyalty tends to be towards the brand and not the store. as opposed to their inexpensive counter parts which are considered non-durable goods. such as the ones mentioned in the key players section. as a whole customers always hold some bargaining power since they drive demand. brands have become for the most part expert retailers themselves with flagship stores and directly-operated boutiques worldwide meaning they do not rely solely on wholesalers to distribute and sell their products. In this case. 3. there are also customers who are unwilling to give-up brands but opt to 45 . Specially after the crisis. THREAT OF SUBSTITUTE GOODS Leather goods expenditure is driven by self-indulgence. when talking about directly-operated stores we must talk about individual consumers as the buyers. in the case of established brands. also have a functionality element & therefore may be substituted by products which meet this requirement. Additionally. However. allocating the bargaining power with the brands.powerful channels for up-and-coming designers to display their products supported by stores customers recognize as luxurious and fashionable. department stores in emerging markets where brands be still to set their own operations may hold a higher bargaining power. but as no individual customer represents a considerable wallet-share the bargaining power on individual customers is moderate. Therefore. although mainly purchased for their brand & aesthetics. it is important to mention that generally leather goods are considered durable goods. some of the most obvious substitutes are other products from the accessories category. Therefore. Finally. leather goods. Moreover. Furthermore. although customers do not incur in switch costs from buying different brands. meaning that potentially any good and service may pose as a substitute as long as it covers this need for self-gratification & pampering. but overall buyers bargaining power is moderate.

Vintage and second-hand products. Overall. Consolidation has also lead to the formation of additional entry barriers derived from scale and bargaining power such as economies of scale as some of the cost can be shared amongst firms and a fortunate position in terms of supply of raw materials and in distribution channels. Overall. Moreover. Additionally. Finally. which allows consumers to access the dream and prestige of wearing a handbag without having to purchase it. Additionally. In products scarcity and quality are indispensable to achieve the desired brand image and counterfeit products. Another threat is the rental of handbags. typically sold by specialty stores or by individual owners through sites such as eBay pose a threat due to their lower cost. since the beforehand mentioned substitutes only pose a restrained threat. as well as time for accept the brand and form emotional attachments to it. heritage and brand positioning serve as entry barriers since achieving a brand image comparable to that of established brands require extensive investments on communication and media planning. it is possible for new designers to enter the industry on a small scale with are latively small capital speculation. the threat of substitutes is high due to counterfeit. the element of clientele to heritage is impossible to duplicate in the short-term.consume or purchase them in an different way. 4. the threat of new entrant is considered low since it takes a noticeably long period of time for brands to position themselves as brands and truly struggle at the level of the key players in the industry. deteriorate brand name image since customers might confuse them with the real products. the industries’ consolidation trend leads groups to buy independent brands which they consider to have potential and therefore pose a future threat. counterfeit represents the biggest threat for all of the sector. THREAT OF NEW ENTRANTS In the luxury leather goods industry. although it is easy for new entrants to enter the market. specially the higher-end copies. of which leather goods is the most affected since handbags and wallets are amongst the most reproduced products. On the other hand. 46 . new designer are all the time entering the scene since all it takes is a popular design paired with a celebrity endorsement for customers to desire the product.

Brands are typically managed as self-determining companies to maintain their creative control and brand DNA. brands tend to target explicit clients. there is many brands in the luxury leather goods market yet the level of rivalry is sensible since brands are. in a way. 47 .5. heritage brand and positioning.RIVALRY AMONG EXISTITNG COMPETITIORS The leather goods market is highly consolidate at company level. at level it is disjointed as there exists a wide array of brands ranging in size. which is why luxury groups tend to focus on having an extensive brand portfolio covering different client segments. therefore. measured niche and therefore compete for different client. Furthermore brand loyalty tends to be strong despite the low switching costs for clients. however. Overall. design.

National Manufacturing Policy has further identified leather & footwear as special focus sector. The Government of India have identified the Leather Sector as a Focus Sector in the Foreign Trade Policy in view of its immense potential for export growth prospects & employment generation.000 crore. This sector is known for its reliability in high export earnings and it is among the top ten foreign exchange earners for the country.25. Domestic market for leather. India holds a share of 3. the Government are providing various incentives to the Leather Industry in Foreign Trade Policy and allowing concessional Duty for import of Machinery.2 billion to US $ 5 billion in 2013-14.77 % (5 years). Mega Leather Cluster.05% in global leather trade of US$ 159.8 pairs per annum in 2011 & about 2 pairs at present. the export of leather & leather products increased multiple over the past decades and touched US$ 5. Financial assistance is being provided to organize overseas marketing activities to promote exports from the country under Marketing Development Assistance (MDA) scheme & for enhancement of export through accessing new markets and through increasing the share in existing markets under Market Access initiative Scheme (MAIS). Support to Artisan.89 billion as per information available for the year 2011. (Human Resource Development.IMPORT/EXPORT NORMS (INDIA) The Leather Industry holds a high up place in the Indian economy. Leather Technology-Innovation & Environmental Issues and Establishment of Institutional Facilities) for the overall development of leather sector. The overall size of India’s leather sector is estimated to be Rs. With an annual turnover of over US$ 10 billion. Planning Commission have also identified the Leather Sector as Employment incentive sector for 12th Plan period. 48 . Accordingly. has increased to 1. leather products & footwear has also increased from US $ 2. Department of Industrial Policy and Promotion (DIPP) is implementing ‘Indian Leather Development Programme (ILDP)’ consisting of six sub-schemes viz.91 billion in 2013-14. recording a cumulative annual growth rate of about 14. The per capita consumption of footwear which was less than 1 pair a decade ago. Integrated Development of Leather Sector.

Also. 2% duty credit scrip is being provided for finished leather under Focus Product Scheme. the exporters are currently given a duty credit scrip of 3% for exports to notified countries (notified in Appendix 37 C of Handbook of Procedures – Vol. d) Zero Duty Export endorsement Capital Goods Scheme (EPCG) has been notify for positive sectors including leather and leather products. 1 being provided. Eastern Europe and Asia-Oceania regions. which enables import of Capital Goods without any duty.Vol. Incentives and facilities to leather based industries (i) a) Foreign Trade Policy (FTP) 2009-14 Under the Focus Product scheme.4. African and CIS regions. These scrips are transferable. This scheme is being implemented from 1. Duty Credit Scrip @ 4% on FOB value of exports for notify leather products & footwear under Appendix 37 D of Handbook of Procedures. c) The Special Focus Market Scheme provides 4% duty credit scrips on FOB value for exports made to Latin American. For up gradation of export sector infrastructure. 49 .The incentives and facilities to leather based industries are made available as per details in enclosed Annexure. These scrips are transferable. b) Under the Focus Market Scheme. These scrips are transferable. ‘Towns of Export Excellence’ and units located therein would be granted added focused support and incentives. Agra and Ambur recognized as “Towns of Export Excellence” (TOEE) for leather products in FTP. e) Kanpur. African and Commonwealth of Independent States (CIS). The aforesaid duty credit scrips can be used for payment of import duties or for payment of Excise Duty on domestic procurement of such items as permitted to be imported under individual scheme.2011 onwards. subject to fulfilment of Export responsibility. 1) in Latin American.

12/2012 dated 17. This measure was announced in the Annual Supplement 2010-11. j) Under the Incremental Exports Incentivisation Scheme. h) Machinery & equipment for Effluent Treatment Plants are exempted from basic customs duty. This scheme were subsequently extended for the year 2013-14 on annual basis. 84. as amended from time to time. with no payment export duty. This scrip is transferable and can be used for domestic sourcing and for payment of Service Tax. are allowed for import with a concessional 5% Basic Customs Duty (BCD) as against the normal BCD of 10%. 50 . 85 or 90.2013 to 31.2013 compared to the period from 01.01. Europe & Asia (excluding Singapore. the exporters are eligible for 2% duty credit scrip on the FOB value of exports to USA. tanned & dressed fur skins falling under Chapter 43 of ITC (HS). g) Duty free import of notified inputs @ 3% of FOB value of export comprehension during previous year for manufacturer-exporters & merchant exporters tied-up with supporting manufacturers in respect of leather garments and for manufacturer-exporters in respect of other leather products.01. UAE and Hong Kong) on the incremental growth during the period 01. This scheme is being implemented by Council for Leather Exports (CLE). (ii) Concessional Duty for import of Machinery (a) As per Serial No. i) CVD exempted on raw. The 2% incremental scrip will be only for incremental exports achieved during 2013-14 as compared to the year 2012-13 for notified countries. Certain Latin American and African countries have been included under Incremental Exports Incentivization Scheme.3. machinery notified under list 29 of the said Customs Notification falling under Chapter Nos.3.3.2012. 300 of Customs Notification No. exports to 53 notified countries Latin America & Africa have also been added under this scheme during 2013-14. Also.2012.f) Leather sector have been allowed re-export of unsold imported raw hides and skins and semi finished leather from public bonded ware houses.2012 to 31.

right-sizing of capacity. footwear. 51 . b) Support to Artisan (STA): There are various clusters in the India making traditional footwear and other leather goods. harness &saddlery manufacturing units to improve themselves leading to industrious gains. promotion linkages and capacity building etc. supervisors and technicalities.36 crore comprising of the following components: a) Integrated Development of Leather Sector (IDLS) : This sub-scheme is aimed at enabling tanneries. d) Establishment of Institutional Facilities: The objective of this sub-scheme is to provide transportation by way of establish two new branches of FDDI to meet the mounting demand of the Leather Industry for footwear technologists. footwear components. product development. design and development including simultaneously encouraging entrepreneurs to diversify and set up new units. leather goods and accessories. Assistance is provided for placement linked skill advance training to unemployed persons. The aim of the component is to promote the clusters at various forums as they are an integral part of Indian economy and have potential for generating local employment and export. The placement of 75% of trained persons is mandatory for availing assistance related to skill development training component. Ministry of Commerce & Industry is implementing ‘Indian Leather Development Programme (ILDP)’ for the 12 th Plan period with total outlay of Rs.990. designer. The artisan clusters are supported for providing Common Facility Centers. leather garments. for skill up gradation training to employed workers and training of trainers. cost cutting.(iii) Implementation of Indian Leather Development Programme (ILDP): Department of Industrial Policy and Promotion. c) Human Resource Development (HRD): This sub-scheme targets potential work force all over India.

(iv) Assistance is also provided by Department of Commerce. Projects for installation/upgrading Common Effluent Treatment Plants are assisted under this component. both in traditional markets as well as potential markets. Market studies/survey for evolving proper marketing strategies etc.e) Leather Technology. financial assistance is provided for marketing projects abroad. for organizing Environment Related Workshops and for Pilot projects for Solid Waste Management. financial assistance is provided to the Export Promotion Councils (EPCs) to organize overseas marketing activities to promote exports from the country. Under MAI Scheme. 52 . (b) The Government of India is also implement the Market Access Initiative Scheme (MAIS) for enhancement of export through accessing new markets or through increasing the share in the existing markets. capacity building. Ministry of Commerce & Industry for establishment of two new branches of FDDIs at Bihar and Andhra Pradesh during 12 th Plan. financial support is also provided to individual units through EPCs for their participation in overseas business events organized by the EPCs. Innovation and Environmental Issues: Leather industry and tanning activity in particular is linked to environmental concerns and this sub-scheme envisage measures which are required to be put in place for industries to cope with the inflexible norms. Assistance is also provided for Pilot Projects under Technology Benchmarking and environmental management for leather units. Similarly. (v) (a) MDA and MAI Schemes: Under MDA scheme. f) Mega Leather Cluster (MLC): This sub-scheme aims at providing infrastructure support to the Leather Industry by establishment of Mega Leather Clusters (MLC) which would assist the entrepreneurs to set up units with modern transportation. latest technology and passable training and HRD inputs.

b. total f.i. L/ C.  Contract.  Examination/ Examination Certificate. Purchase Order of the overseas buyer.  4 copies of invoices which contains all relevant particulars like number of packages. 53 .  4 copies of the packing list mentioning the contents./ c.  AR4 (both original and duplicate) and invoice.. correct & full explanation of goods etc. Certain export products may require a quality control inspection certificate from the Export Inspection Agency. value.o. quantity. Usually the Shipping Bill is of four types and the major distinction lies with regard to the goods being subject to certain surroundings which are mentioned below:  Export duty/ cess  Free of duty/ cess  Entitlement of duty drawback  Entitlement of credit of duty under DEPB Scheme  Re-export of imported goods The following are the export documents required for the processing of the Shipping Bill:  GR forms (in duplicate) for consignment to all the countries.  Green Shipping Bill in quadruplicate for the export of goods which are under claim for duty drawback. The formats presented for the Shipping Bill are as given below  White Shipping Bill in triplicate for export of duty free of goods. unit rate.f. quantity. gross and net weight of each package. Special documents may be required depending on the type of product or destination. Shipping Bill/ Bill of Export is the main document requisite by the Customs Authority for allowing shipment.Documents Required Export procedure describes the documents required for exporting from India.

9 m. It is prepared on a special form being presented by the Customs authorities of the importing country. Iraq. Maximum weight: 10 kg usually. It is known by the code number CP2/ CP3 and to be prepared in quadruplicate. The relevant documents are mentioned below:  Customs Declaration Form .  Customs Invoice . no Shipping Bill is required.  Prescriptions regarding the minimum and maximum sizes of the parcel with its maximum weight : Minimum size: Total surface area not less than 140 mm X 90 mm. Fiji.  Legalised/Visaed Invoice .Mainly needed for the countries like USA. Ausatralia.  Blue Shipping Bill in 7 copies for exports under the DEPB scheme Documents Required for Post Parcel Customs Clearance In case of Post Parcel. Burma.It is prescribed by the Universal Postal Union (UPU) and international apex body coordinating activities of national postal administration. Ghana. 20 kg for some destinations.Mainly needed for the countries like Kenya.00 m. etc.  Despatch Note. 54 .  Consular Invoice .This shows the seller's genuineness before the appropriate consulate/ chamber of commerce/ embassy. Mauritius. Canada./ 2. Yellow Shipping Bill in triplicate for the export of dutiable goods. Tanzania. also known as CP2. Maximum size: Lengthwise not over 1.  Commercial invoice . It is filled by the sender to specify the action to be taken by the postal department at the destination in case the address is non-traceable or the parcel is refused to be accepted. It do not have any prescribed form. Zanzibar etc. Measurement of any other side of circumference 0.Issued by the seller for the full realisable amount of goods as per trade term. Uganda. Cyprus. signed by the sender. It facilitates entry of goods in the importing country at preferential tariff rate. It is prepared in the prescribed format and is signed/ certified by the counsel of the importing country located in the country of export. New Zealand. Nigeria.05 m.

 Transhipment Bill .  Packing List . etc.Issued by the Shipping (Conference) Line which intimates the exporter about the reservation of space of shipment of cargo through the specific vessel from a specified port and on a specified date.  Certificate of Chemical Analysis .Required for export of foodstuffs. pigments. Sight Draft is required when the exporter expects immediate payment and Usance Draft is required for credit delivery.  Manufacturer's/ Supplier's Quality/ Inspection Certificate. etc.  Manufacturer's Certificate .It shows that goods have been inspected before shipment.  Shipping Order .  Weight Note .  Certificate of Shipment . hides. Certified Invoice . marine products.  Antiquity Measurement . livestock etc.Issued by Archaeological Survey of India in case of antiques.It is required when the exporter needs to certify on the invoice that the goods are of a particular origin or manufactured/ packed at a particular place and in accordance with specific contract. Sight Draft and Usance Draft are available for this.It is used for goods imported into a customs port/ airport intended for transhipment.It signifies that a certain lot of goods have been shipped. 55 .  Black List Certificate .  Certificate of Conditioning .It shows the details of goods contained in each parcel/ shipment.Required to confirm the packets or bales or other form are of a stipulated weight. dry weight. It certifies that the ship or the aircraft carrying the goods has not touched those country(s).It is required for countries which have strained political relation.  Certificate of Inspection .  Health/ Veterinary/ Sanitary Certification .It is required to ensure the quality and grade of certain items such as metallic ores.It is issued by the competent office to certify compliance of humidity factor.It is required in addition to the Certificate of Origin for few countries to show that the goods shipped have actually been manufactured and are available.

No 168 of Customs Notification No 21/2002 dated 01.  Shut Out Advice .It is prepared in aligned document to be used to inform the overseas customer about the shipment of goods. small cartons made of wood. Such entitlement shall also cover packing material.  Short Shipment Form . f. Cart/ Lorry Ticket . 56 . Re-export of unsuitable imported materials such as raw hides & skins and wet blue leathers is permitted. b. Machinery and equipment for Effluent Treatment Plants shall be exempt from basic customs duty. CVD is exempted on raw. c. Leather and Footwear a.03..It is prepared for admittance of the cargo through the port gate and includes the shipper's name. marks on packages. Duty free entitlement for import of trimmings.2002. e.  Shipping Advice .It is a statement of packages which are shut out by a ship and is prepared by the concerned shed and is sent to the exporter. Duty free import entitlement of specified items shall be 5% of FOB value of exports during preceding financial year. travel bags and handbags shall be 3% of FOB value of exports of previous financial year. cart/ lorry No. d. tin or plastic materials for packing footwear. etc. gloves.It is an application to the customs authorities at port which advises short shipment of goods and required for claiming the return. embellishments and footwear components for footwear (leather as well as synthetic). CVD is exempted on lining and interlining material notified at S. tanned and dressed fur skins falling under Chapter 43 of ITC (HS). quantity. such as printed and non printed shoeboxes.

57 Amount 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0. Container No. Port of Loading Port of Discharge Final Destination Marks & Numbers. & Date Other reference(s) ctc person Tel. Signature / Date / Co stamp. No.s Consignee Buyer ( if other than consignee ctc person Country of origin of goods Tel No.Documentation in India  Invoice Shipper Invoice No. & kind of Packages Country of final destination Terms of Delivery & payment C I F / C&F / FOB Payment Terms: D P / DA / AP / Description of Goods Quantity Amount chargeable : ( in words / currency ) Rate Total Declaration: We declaration that invoice shows the actual price of goods described and that all particularss are true & correct.s Pre-Carriage by Place of Receipt by pre-carrier Vessel / Flight No.No. Buyer's Order No. & Date Exporter Ref.00 .

** L ( cms ) X B ( cm X L X B X H cms3 / 6000 = H ( cms ) 1) 2) Volumetric weight: Kgs Actual weight: Kgs Total Net weight Kgs Total Gross weight Kgs 3) 4) 5) 6) 7) 8) 9) 10) Signature / Date / Co stamp. Buyer's Order No. & Date Other reference(s) Buyer ( if other than consignee ) Consignee Country of origin of goods Country of final destination Handling information if any: Pre-Carriage by Place of Receipt by pre-carrier Vessel / Flight No.Shipping Exporter Invoice No. 58 . No. Packages Net weight: Gross weight : Description of Goods Quantity Remarks Carton No. Box No. & kind of Container No. Port of Loading Port of Discharge Final Destination Marks & Numbers. & Date Exporter Ref.

: DIMENSION (IN CMS) of each pkg. GSP CERTIFICATE i) ADVANCE LICENCE SHIPPING BILL j) REPAIR & RETURN 13 ___________________________ 14 ___________________________ 15 ___________________________ 1 6 ___________________________ 17 ___________________________ 18 ___________________________ Please indicate API (As per Invoice) if any detail is mentioned in the Invoice. MSDS 11. PHYTOSANITARY CERT 12. We hereby confirm that the above details declared are true and correct. & ORGI YES / NO NAL ORIGI YES / NO NAL 1. : VOLUME WT. : GROSS WT. PACKING LIST (4 COPIES) 3. VISA/AEPC ENDORSEMENT 9. GR FORM/GR WAIVER 10. : NET WT. We confirm that our company's IEC & Bank AD Code Details are registered with EDI System of Air Cargo .Delhi SIGNATURE OF EXPORTER/STAMP 59 . INVOICE (4 COPIES) 2. Description of Goods to be declared on AWB Special Instructon. ARE-1 FORM IN DUPLICATE 8. LAB ANALYSIS REPORT 4. PURCHASE ORDER COPY 6. If any TYPE OF SHIPPING BILL ( CIRCLE YES or NO a) FREE TRADE SAMPLE (NON-COMM) YES / NO b) DUTY FREE COMMERCIAL YES / NO c) EOU SHIPPING BILL YES / NO d) DUTY DRAWBACK YES / NO e) DUTIABLE SHIPPING BILL YES / NO f) DEPB SHIPPING BILL YES / NO g) DFIA YES / NO h) EPCG SHIPPING BILL YES / NO k) DUTY DRAWBACK (SECTION 74) BELOW DOCUMENTS REQUIRED WITH SHIPMENT FREE NOTH ANNE DBK RATE DEPB DFIA REGN REGN YES / NO NO. SDF FORM IN DUPLICATE 7.SHIPPERS LETTER SHIPPER' S LETTER OF INSTRUCTIONS Shipper Name: Consignee Name: Date: Invoice No. IE CODE NO (10 DIGIT) : BANK AD CODE # (PART I & II) : CURRENCY OF INVOICE INCOTERMS : F O B / C & F / C & I / C I F : NATURE OF PAYMENT * : D P / D A / A P / OTHERS Details to be declared for preparation of Shipping Bill FOB VALUE : FREIGHT (IF ANY) : INSURANCE (IF ANY) : COMMISSION (IF ANY) : DISCOUNT (IF ANY) : Description of Goods to be declared on Shipping Bill NO. OF PKGS. NON-DG DECLARATIONS 5.

that which I/We. Date : (Signature of Exporter) Name: 60 . having regard to the prevailing market conditions./We am/are Or am/are not in Caution list of the Reserve Bank of India. I/We further declares that I/We am/are resident in India and I/We have place of Business in C. accept to receive on the sale of goods in the overseas market.Shipping Bill APPENDIX I FORM SDF Shipping Bill No. I/We undertake that I/We will deliver to the bank named herein _______________ the foreign exchange representing the full export value of the goods on or before @ ___________________ in the manner prescribed in Rule 9 of the Foreign Exchange Regulation B. 1973 : *SELLER/CONSIGNOR of the goods in respect of which this declaration is made and that the particulars given in the Shipping Bill no ______________ dated ________________are true and that. ___________________ Date :____________ Declaration under Foreign Exchange Regulation Act. A. I. A)*The value as contracted with the buyer is same as the full export value in the above shipping bills.

or merchants who sell the products of the company in international markets (after taking title to the goods). documentation. 61 . Direct Exporting: A company may decide to export its products itself. An agent may agree to handle the company’s product completely. undertakes marketing research. It may be evaluating the pleasant appearance of the foreign market before increasing its stake.. The firm’s involvement level with the foreign markets is lowest in this case. Small firms that find it difficult to use any of the above means can sell their products via other organizations that export products on behalf of several small firms collectively. for the smaller exporters. Moreover. Such companies can take up several activities such as market assessment. the larger companies have better access to information about international markets. channel selection financing arrangements. handles documentation and transportation and decides the marketing mix Companies can use foreign-based agents or distributors. or may handle products of other companies too. The investment involved in this effort is the least among all the other alternative for expansion. The scale of operations of the smaller exporters does not consent these firms to be able to direct such activities. etc. These are generally large trading concerns and export management companies that negotiate contracts on behalf of smaller exporters. while going international. 2. The company develops overseas contacts. An agent does not take title to the products & works on commission.MODE OF ENTRY TO FOREIGN MARKETS 1. They can also use the distribution facilities of other firms in the international markets. Indirect Exporting: Companies can. use domestically based agents who operate on a commission basis without taking title to goods.

The idea is to take charge of the marketing operations of the company. The company may establish a sales & marketing office in the foreign market. The advantage of licensing lies in the fact that the company (licensor) can enter a new market without making significant investments. Further the standing of the licensor is dependent on the presentation of the licensee. patents. if it lacks the necessary resources to set up manufacturing facilities and sell the products.The salesperson will pay attention to the development of the market. know-how and brand/company name in exchange for financial or some other form of reward. They may use agents and distributors and may decide to develop their own distribution infrastructure with appoint their own salespersons. But the company loses control over production and marketing of the product. a foreign licensor provides a local licensee with access to technologies. who may become competitors once the conformity is over. 3. trademarks. Licensing: Under licensing. The possibilities for feedback and other information from the market are better. so the order size has to be large. 62 . Licensing is popular in R&D comprehensive industries where companies often license technology which does not fit with their overall strategy. This office monitors the marketing efforts of the company. The licensor usually gets royalty or certify fees on the sale of the product. clients will be looked after better & the company’s interest would be better served. Thus. One danger of licensing is the loss of product and process know-how to third parties (licensee). This involves better commitment of the association than indirect exports. A company can use licensing to exploit new technology simultaneously in many markets. The licensee has exclusive rights to produce and market the product in the specified area for a limited period. This is an expensive method.

The corporation can be formed for completing a project. Business format franchising is used in service industries such as restaurants. In business format franchising. Two types of joint venture are Contractual & Equity joint ventures. the risks & the long-term profits. Franchising: Franchising is a type of licensing conformity where packages of services are obtainable by the franchiser to the franchisee in return for a payment. as well as the product and trade name. like McDonald’s. A joint venture may be necessary due to legal limitations on foreign investment. or for a long term co-operative effort. 4. In an equity joint venture. The two types of franchising are product & trade name franchising. Forming a joint venture with a local partner may be the only 63 . hotels & retailing where the franchiser exert a high quantity of control on the franchisees based in the overseas market. lends operating procedures. besides reducing risk. Joint Ventures: The international corporation enters into a joint-venture agreement with a company from the objective country market. a new company is formed in which the foreign & local companies share ownership & control. no joint project with a separate identity is formed. The danger of expropriation is less when a company has a national partner than when the foreign firm is the sole owner. & business format franchising. quality control. An example of product & trade name franchising is Pepsi Cola selling its syrup together with the right to use its trademark and name. the franchiser. Replace of new developments by the licensee with the licensor can also be made unavoidable in the licensing agreement. A joint venture also reduces the investment required by a foreign firm. In contractual joint ventures.Licensing agreements must ensure sustaining competitive advantage to the licensor. Two or more firms enter into a partnership to share the cost of an investment. to independent bottlers. 5. A licensing agreement that goes bad can injure the brand equity of the licensor forever. Adequate supervision of licensees is important.

Acquisition of companies in foreign countries is a fast way to enter a new market. 6. It provides the company prepared access to a product portfolio. acquisition may be the only possible way of establishing a manufacturing capability in a foreign market. or build a new facility. Both the partners can specialize in their particular areas of technological expertise. local management. qualified employees. The foreign partner stands to gain from local expertise. customers. knowledge about local conditions and contact with local authorities. In many countries. In saturated markets. 64 . Both partners bring in their expertise in different areas that helps in realizing the success of the venture. The complete form of participation in foreign countries is 100 per cent ownership. which can be established as a start-up. The foreign investor benefits from the local management talent & knowledge of local markets and regulations. manufacturing facilities. or can be achieved by acquiring local companies. Direct investment means that the companies have control & significant stake in its operations in other countries. 100 per cent ownership by foreign company may not be permitted due to government restrictions.way of entering markets which are very competitive & saturated. But differing styles of organization between foreign investors and local management teams may cause problems. The Japanese set up joint ventures in the US primarily for this reason. The company commits maximum amount of capital and managerial efforts in this mode of entry. The company can acquire a foreign manufacturer or facility. Direct Investment: The company entering the foreign market invests in foreign-based manufacturing facilities.

the foreign depositor has greater degree of control than licensing or joint ventures.In direct investment. 65 . It is able to prevent leakage of proprietary in sequence. The distribution cost is lowered. The company is able to avoid tariff and non-tariff barriers. Being based in the local market. the company is more disposed to local tastes and preferences.

These programmes seek to increase awareness amongst SMEs. Exim Bank of India also organizes focused seminars. above all in the SME sector. and creating the potential for larger exports to USA and other developed country markets. leveraging effectively upon Exim Bank’s widespread institutional and trade promotion linkages.Supporting Institutes to Facilities Export/Import Exim Bank of India seeks to help Indian companies. workshops & training programmes covering various aspects related to worldwide trade and investment with the help of experts including international faculty. and to make them internationally competitive. Exim Bank of India initiated a ‘Clusters of Excellence’ programme. through adherence to international quality systems and standards. The programme is aimed at assisting SME software companies to achieve the SEI-CMM certification. GRID aims to create an enabling environment for rural proletarian enterprises to explore newer geographies. to establish their products overseas & enter new markets by helping them in their export efforts by proactively assisting in locating overseas buyers/partners for their products/services. enhancing their capability and acceptance. primarily SMEs. assist them in various facets related to up gradation and moving up the value chain. jointly with NASSCOM in the past. Exim Bank of India has also brought out a publication on ‘Business Practices of Successful 66 . & thereby enhancing purchase power of the ‘bottom of the pyramid’. The Bank’s programme for supporting product/ process certification aims to enhance international competitiveness of Indian companies. Exim Bank of India has also launch the Grassroots Initiatives & Development (GRID) to create export capabilities in rural and grass-root enterprises. to assist small and medium sized Indian software exporting companies in achieve worldwide quality standards.

trade and savings for the SMEs. outlining the internationalization strategies adopted by Indian firms including SMEs. and operates a wide range of lending. The credit services are available for finance at all the stages of an export cycle of Indian firms. 67 . Exim Bank of India seeks to create an enable environment to promote two-way transfer of technology.Indian Exporters’. service and support programmes for this purpose. The Bank has a variety of loan products to cater to the financing requirements of enterprises including the SMEs. facilitate transfer of successful experiences.

1315-IV. Later.IMPORT/ EXPORT POLICIES AND PROCEDURES OF UKRAINE Import /Export Norms Import-Export Contracts According to the Law "On Foreign Economic Activities.dated November 20. taking into deliberation the relevant provisions of worldwide agreements to which Ukraine is a party. 75 was rendered ineffective by Order No. provided a variety of standard clauses to be incorporated into foreign economic agreements executed in Ukraine. 75 of the Ministry of Foreign Economic Relations and Trade of Ukraine on October 5.introduced amendment to Article 16 of the Law "On Foreign Economic Activity" regarding the licensing of certain foreign economic operations. 201 "On Approval of the Regulation on the Form of Foreign Economic Agreements (Contracts)" issued by the Ministry of Economy & European Integration on September 6. Order No. which provides the guidelines regarding the material terms and conditions of foreign economic contracts. the Regulations "On the Form of Foreign Economic Agreements (Contracts). 1995. Such amendments deal with the licensing of the export/import of goods into Ukraine under either an "automatic" licensing procedure or a "non-automatic" licensing 68 ." approved by Order No. 2003. Subsequently." the single most important rule is that a foreign economic (or cross-border) contract must be concluded in written form. New Licensing Requirements The Law of Ukraine No. 2001.

However.  Exemption Letter (negative statement)  Hygiene certificate. Necessary are a  product registration. The Ukrainian certification processes are similar to the Russian in the below-mentioned parts. but there are still some differences in details. The total application costs should also expected to be higher 69 than in Russia. The UkrSEPRO certificate is the pendant of Ukraine to the GOSTR certificate. the process in Ukraine more complicated and to complete the process successfully it requires an additional expertise concerning the national law and legislation. which are subject to quotas (quantitative or otherwise limited). non-automatic licensing grants permission to subjects of foreign economic activity within a particular period for the export or import of goods.  UkrSEPRO certificate.procedure in certain cases. Automatic licensing grants permission to subjects of foreign economic activity for the export or import of goods within a particular period provide that such goods are not subject to a quota. on the other hand.  GosGorPromNadzor certification (operation license). Required Documents DOCUMENTATION IMPORT AND EXPORT Certification for Ukraine The import regulation rules of Ukraine are principally the same as the standards of Russian Federation. .

This doesn’t imply the trade with Ukraine is without avail. an alternate broker or UPS on behalf of the consignee. It states the activities of a company in overseas trade. For every formal entry the consignee has to provide original documents to the customs house: Customs accreditation card . A copy of this document with an original company stamp must be provided for each customs declaration.The companies official recognition card is issued by the customs authorities. We can negotiate the organizational obstacles for you. The expert of the facilities are conducting there operations locally in the company. Import Documentation Import Declaration Shipments addressed to companies which have to be cleared as formal entries will require an Import Customs announcement to be prepared by the consignee. usually they must travel to the enterprise. the values of the products and terms of delivery.The formal contract covers the most important issues of the agreement between shipper and consignee like a description of the commodities. Tax Committee currency control document .The Tax Committee currency control document is issued by the tax authorities each quarter.Another important difference is the practical method of the testing facilities. This means. A copy of the accreditation card with an original company stamp must be provided for each customs declaration. Contract between the shipper and consignee . so you can make lucrative dealings with your Ukrainian counterparts. 70 . A copy of this essay with an original company stamp must be provided for each customs assertion. which make it more cost-intensive.

Invoice translation - If no invoice in Ukrainian or Russian language is
accompany with the shipment, the company must provide a translated
invoice confirmed with an original company stamp.
Original payment order confirm duties and taxes have been transferred to
Customs account - The original payment order is an electronic receipt of
the customs office after reception duties and taxes. The money transfer
takes at least one day.
For special commodities additional permissions, certificates or approvals
may required by the customs authorities. This may delay the customs
authorization shipment for several days.
Export Documentation

Diplomatic Mail :
A letter headed discreet documentation stating the source of the
consignment, details of the intended recipient and a description of the
contents including the tracking number is required. The document must be
signed by a person working for the embassy.
Passports :
Valid passports can be shipped as documents. The description must
clearly state 'passport'. Shipping passports require the endorsement of the
UK customs authorities. A delay of smallest amount one day has to be
calculated.
Please check the import related information if passports are allowed for
importation.

71

National,

Requirements

Shipments up to a value of 799.99 GBP can be declared informally on the
basis of the invoice.
Shipments in the value range 800 GBP - 2000 GBP have full and formal
individual electronic export declarations which are finished within 14 days
of export.
Shipments exceeding 2000 GBP and those that need organize on export
(for example, temporary exports, return after repair, export licenses)
require formal and full electronic export declaration and positive Customs
clearance prior to export.
UPSservice
UPS offers the service to prepare export declaration on behalf of the
exporter without additional fees.

72

EXPORT
Air Waybill

Description: This document can be used if no country-specific requirements already
exist. A waybill is a document providing for the automatic release of cargo to a
named consignee. It is a receipt of goods but not a negotiable instrument & is an
evidence of contract of carriage. The use of waybill does not affect the terms of the
carriage and the terms of carriage may be different as per the carriers’ policies
Commercial Invoice
Description: This document can be used if no country-specific requirements already
exist. A commercial invoice is a formal demand note for payment, issued by the
exporter to the importer for goods sold under a sales contract. The document gives
details of the goods sold, payment terms and trade terms. In addition, it is used for
the customs clearance of goods and serves as a base for calculating customs duties.

73

It informs the buyer of the kind and quantity of goods.Packing List Description: This document can be used if no country-specific desires already exist. volume and description of the merchandise. A packing list provides details about the shipment such as number of packages. and other important information such as weight and payment terms. A Performa invoice is a price quote or estimated invoice sent by a seller to a buyer in advance of a delivery of goods. their value. One objective of the packing list is to facilitate the inspection & survey of the consignment that comprises the shipment and is included in the invoice. This helps the buyer to make a transaction decision & to confirm the order. Custom officials & carriers use the packing list as a check-list to verify the outgoing and incoming cargo. weight. Performa Invoice Description: This document can be used if no country-specific wants already exist. 74 .

The terms and conditions covered are as per the insurance documents.Confirmation of Insurance Description: This document can be used if no country-specific requirements already exist. It confirms that an insurance policy has been purchased. or held between the points of origin and final destination. and any transport or cargo by which property is transferred. acquired. cargo. 75 . terminals. A confirmation of insurance is a document issued by an insurance company. It covers the loss or damage of ships.

 Working Capital Loans to JVs/WOSs  Guarantees to JVs/WOSs  Asset Creation o Equipment Finance o Project Finance  Working Capital o Medium Term (LTWC. 76 .Supporting Institutes to Facilities Export/Import 1. Overseas Investment 2.  Equity Investment – Participation in equity of overseas ventures of Indian companies. WCTL) o Short Term Finance  Special Products o Export Marketing Finance o Export Product Development Finance o Export Vendor Development Finance o Research & Development (R&D) Finance o Finance for Indian Educational Institutions and setting up institutions abroad o Finance for Software Technology Parks o Finance for Development of Minor Ports / Jetties o Creative Industry Financing o Project-related non-fund based guarantees o Guarantees and stand-by LCs (SBLCs) o Letters of Credit (LCs)  Refinance to Commercial Banks  Export Bills Rediscounting for commercial banks. Financial Intermediaries (banks)  Term Financing – to overseas Joint Ventures/ Wholly Owned Subsidiaries as well as to Indian companies towards part financing their equity investment in overseas JV/ WOS. ExportUnits Oriented 3.

composed of the Yangtze River & its tributaries. Export Clearance : All export products have to be checked first.Shipping & Packaging Restrictions : It is forbidden to export precious metals and their derivative. Through its numerous interline agreements. In China. Necessary Declaration : The following have to be declared: medicines (if more than 5 boxes of the same brand). furs and animal feathers. Middle East. bays. Asia. By Air Our airline connects Ukraine to capital cities & key hubs in Europe. The regulation and legislation are based on the Customs Code of Ukraine and the Kyoto convention. Organize a transportation of goods to and from Ukraine By Sea Waterway systems can be grouped into two main category – collections of rivers and canals that allow ocean ship traffic to reach a region's interior – and geographic regions that might include a mix of seas. rare metals. Export Taxes : No taxes except on ferrous metals. straights and sounds. Ukrainian goods with a value exceeding EUR 200 and pets. livestock & leather. objects of cultural value with an aim of selling them. UIA operates flights to over 3 000 destinations across the globe. internal trade began thousands of years ago on the Yangtze River System. towns and cities grew up along the Rhine River System and the Danube River System. 77 . In Europe. natural gas. Africa and USA. the CIS. then authenticated & possibly levied customs taxes.

9 km of track by June 1 to ensure safety & to increase the capacity of the railways before the summer transportation season.By Rail State Railways Administration of Ukraine Ukrzaliznytsia for passenger transportation during Easter holidays has put on additional train No. 78 . 269/219 Kyiv-Chernivtsi. The State Railways Administration of Ukraine plans to repair 404.

35 102.67 569.74 0.50 197.52 135.06 0.26 211.52 33.35 38.66 162.42 11.58 14.00 262.35 11.52 190.40 202.92 18.85 10.28 641.07 48.72 57.40 17.41 0.00 224.71 0.77 11.20 11.73 59.16 28.51 177.19 27.08 323.13 37.10 0.35 0. ------------------Mar 18 12 mths EQUITIES AND LIABILITIES SHAREHOLDER'S FUNDS Equity Share Capital Total Share Capital Revaluation Reserves Reserves and Surplus Total Reserves and Surplus Money Received Against Share Warrants Total Shareholders Funds NON-CURRENT LIABILITIES Long Term Borrowings Deferred Tax Liabilities [Net] Total Non-Current Liabilities CURRENT LIABILITIES Short Term Borrowings Trade Payables Other Current Liabilities Short Term Provisions Total Current Liabilities Total Capital And Liabilities ASSETS NON-CURRENT ASSETS Tangible Assets Intangible Assets Capital Work-In-Progress Fixed Assets Non-Current Investments Long Term Loans And Advances Other Non-Current Assets Total Non-Current Assets CURRENT ASSETS Inventories Trade Receivables Cash And Cash Equivalents Short Term Loans And Advances 79 Mar 17 Mar 16 Mar 15 12 mths 12 mths 12 mths 11.73 0.12 123.16 77.08 56.97 10.73 129.28 0.90 241.87 7.63 163.93 0.72 53.06 361.00 103.98 59.42 11.95 179.42 1.05 346.79 191.PART 5 FINANCIAL DATA Balance Sheet of Superhouse ------------------.69 39.98 28.43 9.23 16.40 253.00 66.30 239.28 244.29 13.57 33.41 660.80 8.20 51.99 19.52 27.12 34.95 251.47 15.00 6.64 153.65 250.68 58.87 297.00 223.42 2.42 2.91 672.00 264.60 47.41 .66 152.42 16.56 13.42 11.57 2.18 179.in Rs.42 11.00 253.22 49.08 4.42 167.94 0.45 209.87 173.56 71.92 88.15 34.22 173.42 6.45 162.97 2.36 11. Cr.18 11.00 34.30 105.04 99.04 239.

47 5.63 34.95 32.50 28.95 8.44 354.22 53.56 114.52 21.52 1.56 34.50 107.06 569.84 63.30 89.02 627.57 660.66 1.78 - - - - 37.45 1.23 - - - - 595.43 0.45 30.45 104.23 30.69 641.11 1.07 44.OtherCurrentAssets Total Current Assets Total Assets OTHER ADDITIONAL INFORMATION CONTINGENT LIABILITIES.20 48.87 31.02 414.14 672.18 61.77 2.30 3.76 345.12 750.24 33.85 431.39 53.16 76.97 - - - - .03 1.85 38. COMMITMENTS Contingent Liabilities CIF VALUE OF IMPORTS Raw Materials Stores.47 12.76 571. Spares And Loose Tools Trade/Other Goods Capital Goods EXPENDITURE IN FOREIGN EXCHANGE Expenditure In Foreign Currency REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS Dividend Remittance In Foreign Currency EARNINGS IN FOREIGN EXCHANGE FOB Value Of Goods Other Earnings BONUS DETAILS Bonus Equity Share Capital NON-CURRENT INVESTMENTS Non-Current Investments Unquoted Book Value CURRENT INVESTMENTS Current Investments Quoted Market Value Current Investments Unquoted Book Value 80 22.00 2.58 33.

10 832.98 17.64 745.59 658.58 13.58 17.93 18.31 595.11 789.84 48.67 706.41 32.08 52.48 -15.45 67.Profit & Loss account of Superhouse ------------------.01 -3.93 58.21 105.46 OTHER ADDITIONAL INFORMATION EARNINGS PER SHARE Basic EPS (Rs.31 77.in Rs.00 19.02 47.93 0.05 660.53 914.65 65.49 5.38 3.89 15.52 77.74 478.04 10.91 655.61 50.20 908.84 32.78 3.) 48.07 0.78 89.) 48.26 95.00 38.40 712. Cr.40 49.43 850.50 55.73 19.95 51.02 33.02 424.93 52.29 61.29 29. ------------------Mar 18 Mar 17 Mar 16 Mar 15 12 mths 12 mths 12 mths 12 mths 598.73 20.16 2.WIP And Stock-In Trade Employee Benefit Expenses Finance Costs Depreciation And Amortisation Expenses Other Expenses Total Expenses Profit/Loss Before Exceptional.42 96.43 0.51 15.62 -0.02 47.47 33.07 13.13 38.86 0.55 799.78 422.38 5.00 32.00 18.36 661.68 41.69 389.13 47.46 33.50 55.52 730.40 1.00 29.36 53.47 59.46 32.13 38.98 50. ExtraOrdinary Items And Tax Profit/Loss Before Tax Tax Expenses-Continued Operations Current Tax Deferred Tax Tax For Earlier Years Total Tax Expenses Profit/Loss After Tax And Before ExtraOrdinary Items Profit/Loss From Continuing Operations Profit/Loss For The Period 81 .00 32.31 77.62 5.45 6.00 INCOME Revenue From Operations [Gross] Less: Excise/Sevice Tax/Other Levies Revenue From Operations [Net] Other Operating Revenues Total Operating Revenues Other Income Total Revenue EXPENSES Cost Of Materials Consumed Purchase Of Stock-In Trade Operating And Direct Expenses Changes In Inventories Of FG.43 654.94 2.01 30.43 0.60 -43.87 847.93 -36.00 15.02 737.98 50.85 106.84 48.12 104.67 48.56 56.53 25.82 694.84 Diluted EPS (Rs.41 29.25 69.37 15.

33 62.65 Tax On Dividend 0.64 228.80 STORES.03 DIVIDEND AND DIVIDEND PERCENTAGE Equity Share Dividend 1.65 0.91 1.65 0.03 90.18 Indigenous Stores And Spares 98.00 82 67. SPARES AND LOOSE TOOLS Imported Stores And Spares 41.64 36.35 15.00 1.34 15.VALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS Imported Raw Materials 66.35 35.00 1.65 Indigenous Raw Materials 219.65 0.22 208.00 .20 50.17 55.26 254.42 Equity Dividend Rate (%) 15.35 15.84 107.82 95.

38 908.89 312.76 188.28 517.67 CONTRIBUTION 106.82 647.05 BREAK EVEN POINT 479.03 89.92 PROFIT VOLUME RATIO = CONTRIBUTION * 100 = FIXED COST RATIO SALES BREAK EVEN POINT PROFIT VOLUME RATIO 83 .26% 28.33% 26.74% FIXED COST 78.76 74.69% 26.95 PROFIT VOLUME 16.56 260.83 581.58 329.66 207.49 789.BREAK EVEN POINT PARTICULAR 2018 2017 2016 2015 SALES 655.51 276.68 86.04 706.62 VARIABLE COST 548.

United Arab Emirates. the majority still leaves much to be desired.Findings & Suggestions Findings  Turnover of Superhouse Group is more than USD 200 million for the financial year ending as on 31stMarch 2015  In May 2011. particularly in the SME sector. United Kingdom and Sharjah. and 95 million goats. based company  One more company named Linea de seguridadsl in Spain was acquired in Aug 2012. According to the latest census. the group acquired Briggs Industrial Footwear Limited. against payments in free foreign exchange  Superhouse seeks to help foreign companies. 84 . 70 million buffaloes.  To usher in the next phase of export growth.  Superhouse’sprogramme for supporting product/ process certification aims to enhance international competitiveness primarily SMEs. to establish their products overseas and enter new markets by helping them in their export efforts by proactively assisting in locating overseas buyers/partners for their products/services.K. a U.  Superhouse also has an office / Warehouse in the Luton. whether to outgoing or incoming customers. through adherence to international quality systems and standards.  Imported and bonded on arrival for sale at approved duty-free shops.  Superhouse Group entered safety footwear segment in 1998  Around 57% of footwear value sales in the major EU markets  This is on account of population of 194 million cattle. India needs to move up in the value chain of export goods. India  1192 million pieces of hides and skins per annum spread over different parts of the country  Some of the tanneries in the Kanpur area are complying with the environmental regulations.

by targeting foreign consumers on the Internet.  Many companies.  Ukraine.  Superhouse owns and operates 5 independent manufacturing facilities. will simply purchase or invest in a foreign company.  Superhouse also design customer specific shoes requiring certain additional properties besides EN 20345:2004 norms. 85 . such as Fire retardant. to assist small and medium sized Indian leather exporting companies in achieving international quality standards. every day. rather than launching an entirely new venture in a foreign market. and produces 6. often require foreign companies to partner with a local company  Rather than attempt to partner with or provide a license to foreign companies  Many companies will attempt to enter foreign markets indirectly.500 pairs of shoes. jointly with NASSCOM in the past. etc. There are also initiated a ‘Clusters of Excellence’ programme. Cold insulation and Calcium Chloride resistant.

Punihani International.. United Arab Emirates. Superhouse should establish an / Warehouse in European country like Ukraine  Around 57% of footwear value sales in the major EU markets so after having Warehouse in Ukraine it will save the cost of transportation for targeting markets of European countries  LUX-ELITE is a Ukrainian shoes manufacturing company having high demand for shoes and requires more finished leather so Superhouse should tie up with LUX-ELITE to expand the business  SUMKIODUA is Ukrainian manufacturing company leather bags which requires high amount of finished leather so Superhouse should export their finished leather to them  As Superhouse has also targeted the market segment of womens so Superhouse should collaborate with VIKONT is a company in ukraine manufacturing ladies' leather footwear  Fish leather products is more preferred in Ukraine but in not in India so Superhouse should develop a new products of Fish leather products in India  As india is the country having highest population of cattle it is suggested that Superhouse should focus on exporting raw leather  Florind Shoes Ltd.Suggestions  As Superhouse have an office / Warehouse in the Luton. United Kingdom and Sharjah. Farida Shoes Ltd. Are the major Indian leather exporters so it is suggested that Superhouse tie up with these companies 86 .

Krivorizhstal. Industrial Union of Donbas. Markets of Ukraine and other European countries has been mainly served by China so far. compliance with environmental standards and growth shown by the associated industries has helped the sector to grow. Indian footwear sector has a significant position in the leather industry The Indian leather industry is eyeing an opportunity to increase exports to the European and other countries.Conclusion in terms of Export – Import opportunities w. Abundant raw material. said senior officials from the Council of Leather Exports (CLE).t. Indian exports were focusing in us and other countries.5 million people and is one of the top foreign currency earners in India. The Council is the nodal agency for the international promotion and overall development of the Indian leather and leather products industry. Ukrnafta. skilled work force. Leather Foot Wear between India and Ukraine The Indian leather industry today has established itself as a prominent industry both in international as well as in the domestic market. at time when Chinese shipments to these markets are becoming more expensive. there is an opportunity in the Ukraine and other countries that are opening up to Indian exports. Galnaftogaz are the major companies in Ukraine which requires safety shoes for their workers 87 . but with the cost of production going up in China.r. The leather and leather products export of India. Apart from being the ninth largest exporter of leather and leather products it is also the second largest producer of footwear and leather garments. The industry has already started training programs to create adequate skilled manpower to meet the target and expects more overseas companies to come to India and set up operations in future The major product of Superhouse is safety shoes so there is an opportunity for Superhouse to target various companies in Ukraine NaftogazUkrainy. the products from that country are getting expensive and India has spotted an opportunity to export to these countries. The sector itself employs more than 2.

88 .and employees so Superhouse can export their safety shoes to these companies which increase the sales of Superhouse and give maximum profit margin.

eu/trade/import-and-export-rules/ http://www.gov.10&ad.com/yellow-pages/leather-industry-suppliers/gujarat/ http://atlas.eu/trade/import-and-export-rules/export-from-eu/ http://ec.segment=info.webcrawler.mit.wikipedia.euromonitor.exim-policy.tradingeconomics.org/wiki/Ukraine http://www.uk/guidance/clothing-footwear-and-fashion https://en.europa.wikipedia.com/ukraine/imports http://atlas.device=c&aid=910d9b6f-ec874084-82bd4fce26cd81e4&ridx=2&q=export+IMPORT%2F+EXPORT+POLICIES+AND++PROCED URES++OF+EUROPE&ql=&ss=t https://www.php?ss=footware%20industry%20export%20poli cy%20of%20india http://www.edu/en/profile/country/ukr/#Exports 89 .indianindustry.com/cgi/search.tradingeconomics.nic.com/trade-information/documents-required.com/ukraine/imports http://gcpcenvis.wbcrwl.indianindustry.europa.com/ukraine http://ec.BIBLIOGRAPHY http://www.305.com/footwear http://www.media.305.com/info.media.mit.t89/search/web?fcoid=417&fcop=topnav&fpid =2&cid=157056204&ad.indiacom.wbcrwl.pdf http://www.edu/en/visualize/tree_map/hs92/export/ukr/show/6403/2013/ http://atlas.edu/en/profile/country/ukr/#Exports https://en.tradingeconomics.in/Experts/Leather%20Industries.media.com/ http://www.html http://search.org/wiki/Foreign_market_entry_modes http://www.mit.

04 99.35 102.94 0.36 11.47 15.90 241.67 569.91 672.41 660.85 10.06 0.68 58.51 177.45 209.42 1.87 297.00 34.35 38.80 8.50 34.42 11.98 59.30 239.52 135.00 224.64 153.35 11.45 162.73 59. Cr.42 11.00 6.26 211.40 17.41 0.52 33.79 191.42 167.73 129.52 22.08 56.16 28.56 71.74 0.42 6.40 253.19 27.97 10.08 4.22 49.95 251.00 262.76 .12 123.20 11.06 361.65 250.18 179.44 190.72 53.56 13.92 88.00 223.in Rs.00 264.87 173.13 37.66 152.00 66.92 18.42 11.97 2.05 346.57 2.99 19.22 31.71 0.60 47.07 48.08 323.00 253.43 9.28 0.85 197.02 173.41 21.42 2.42 16.42 2.73 0.23 16. ------------------Mar 18 12 mths EQUITIES AND LIABILITIES SHAREHOLDER'S FUNDS Equity Share Capital Total Share Capital Revaluation Reserves Reserves and Surplus Total Reserves and Surplus Money Received Against Share Warrants Total Shareholders Funds NON-CURRENT LIABILITIES Long Term Borrowings Deferred Tax Liabilities [Net] Total Non-Current Liabilities CURRENT LIABILITIES Short Term Borrowings Trade Payables Other Current Liabilities Short Term Provisions Total Current Liabilities Total Capital And Liabilities ASSETS NON-CURRENT ASSETS Tangible Assets Intangible Assets Capital Work-In-Progress Fixed Assets Non-Current Investments Long Term Loans And Advances Other Non-Current Assets Total Non-Current Assets CURRENT ASSETS Inventories Trade Receivables Cash And Cash Equivalents Short Term Loans And Advances OtherCurrentAssets 90 Mar 17 Mar 16 Mar 15 12 mths 12 mths 12 mths 11.20 51.ANNEXURE Balance Sheet of Superhouse ------------------.18 11.30 105.42 11.10 0.66 162.15 34.52 27.29 13.77 11.57 33.28 641.87 7.63 163.69 39.40 202.04 239.95 179.16 77.93 0.12 34.98 28.35 0.28 244.00 103.72 57.58 14.

95 8.69 641.12 750.45 30.43 0.07 44.22 53.47 5. COMMITMENTS Contingent Liabilities CIF VALUE OF IMPORTS Raw Materials Stores.23 30.06 569.87 414.78 - - - - 37.18 61.97 - - - - .11 1.03 1.84 63.58 33.30 89.45 104.56 34.52 345.50 28.85 38.50 107.76 571.14 672.77 2.23 - - - - 595.45 1. Spares And Loose Tools Trade/Other Goods Capital Goods EXPENDITURE IN FOREIGN EXCHANGE Expenditure In Foreign Currency REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS Dividend Remittance In Foreign Currency EARNINGS IN FOREIGN EXCHANGE FOB Value Of Goods Other Earnings BONUS DETAILS Bonus Equity Share Capital NON-CURRENT INVESTMENTS Non-Current Investments Unquoted Book Value CURRENT INVESTMENTS Current Investments Quoted Market Value Current Investments Unquoted Book Value 91 354.Total Current Assets Total Assets OTHER ADDITIONAL INFORMATION CONTINGENT LIABILITIES.66 1.20 48.95 32.56 114.02 627.16 76.30 3.39 53.52 1.00 2.24 33.47 12.57 660.63 431.

60 47.95 179.20 11.35 11.23 16.28 641.79 191.16 77.99 19.08 4.73 0.67 569.71 0.77 11.00 34.98 28.00 223.12 123.41 .28 0.69 39.64 153.00 253.30 105.68 58.22 173.95 251.42 11.08 323.10 0.93 0.74 0.42 2.66 152.26 211.72 53.35 38.65 250.12 34.97 10.00 66.52 190.00 224.13 37.04 99.35 102.56 13.51 177.80 8.36 11.98 59.08 56.06 0.18 11.92 18.91 672.07 48.35 0.22 49.42 167.00 103.40 17.42 16.94 0.45 162.in Rs.58 14.19 27.42 6. Cr.85 10.72 57.57 33.90 241. ------------------Mar 18 12 mths EQUITIES AND LIABILITIES SHAREHOLDER'S FUNDS Equity Share Capital Total Share Capital Revaluation Reserves Reserves and Surplus Total Reserves and Surplus Money Received Against Share Warrants Total Shareholders Funds NON-CURRENT LIABILITIES Long Term Borrowings Deferred Tax Liabilities [Net] Total Non-Current Liabilities CURRENT LIABILITIES Short Term Borrowings Trade Payables Other Current Liabilities Short Term Provisions Total Current Liabilities Total Capital And Liabilities ASSETS NON-CURRENT ASSETS Tangible Assets Intangible Assets Capital Work-In-Progress Fixed Assets Non-Current Investments Long Term Loans And Advances Other Non-Current Assets Total Non-Current Assets CURRENT ASSETS Inventories Trade Receivables Cash And Cash Equivalents Short Term Loans And Advances 92 Mar 17 Mar 16 Mar 15 12 mths 12 mths 12 mths 11.97 2.52 135.29 13.00 262.42 11.28 244.50 197.30 239.06 361.45 209.20 51.04 239.42 11.87 173.63 163.42 11.47 15.00 6.16 28.87 297.43 9.92 88.52 33.18 179.40 202.42 1.40 253.41 0.41 660.73 129.73 59.57 2.15 34.66 162.PART 5 FINANCIAL DATA Balance Sheet of Superhouse ------------------.42 2.05 346.52 27.00 264.56 71.87 7.

18 61.52 21.50 28.58 33.06 569.95 32.22 53.85 38.87 31.56 114.57 660.23 30.12 750.56 34.45 104.85 431. COMMITMENTS Contingent Liabilities CIF VALUE OF IMPORTS Raw Materials Stores.45 1.97 - - - - .69 641.50 107.39 53.30 89.14 672.30 3.77 2.66 1.43 0.03 1.47 5.63 34.20 48.OtherCurrentAssets Total Current Assets Total Assets OTHER ADDITIONAL INFORMATION CONTINGENT LIABILITIES.02 627.45 30. Spares And Loose Tools Trade/Other Goods Capital Goods EXPENDITURE IN FOREIGN EXCHANGE Expenditure In Foreign Currency REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS Dividend Remittance In Foreign Currency EARNINGS IN FOREIGN EXCHANGE FOB Value Of Goods Other Earnings BONUS DETAILS Bonus Equity Share Capital NON-CURRENT INVESTMENTS Non-Current Investments Unquoted Book Value CURRENT INVESTMENTS Current Investments Quoted Market Value Current Investments Unquoted Book Value 93 22.16 76.00 2.78 - - - - 37.76 571.02 414.23 - - - - 595.52 1.24 33.11 1.76 345.95 8.07 44.47 12.84 63.44 354.

65 65.in Rs.40 1.93 0.46 33.10 832.50 55.07 0.55 799.00 15.) 48.29 29.42 96.16 2.38 5.85 106.01 -3.62 -0.00 32.47 33.74 478.69 389.95 51.31 77.64 745.48 -15.40 49.02 33.37 15.41 32.84 Diluted EPS (Rs.78 422.47 59.20 908.94 2.00 32.87 847.89 15.58 17.56 56.WIP And Stock-In Trade Employee Benefit Expenses Finance Costs Depreciation And Amortisation Expenses Other Expenses Total Expenses Profit/Loss Before Exceptional.52 730.00 29.02 47.45 6.) 48.21 105.01 30. Cr.84 48.59 658. ExtraOrdinary Items And Tax Profit/Loss Before Tax Tax Expenses-Continued Operations Current Tax Deferred Tax Tax For Earlier Years Total Tax Expenses Profit/Loss After Tax And Before ExtraOrdinary Items Profit/Loss From Continuing Operations Profit/Loss For The Period 94 .13 47.50 55.45 67.53 25.38 3.Profit & Loss account of Superhouse ------------------.67 706.02 737.02 424.58 13.43 850.98 50.53 914.31 77.46 32.00 INCOME Revenue From Operations [Gross] Less: Excise/Sevice Tax/Other Levies Revenue From Operations [Net] Other Operating Revenues Total Operating Revenues Other Income Total Revenue EXPENSES Cost Of Materials Consumed Purchase Of Stock-In Trade Operating And Direct Expenses Changes In Inventories Of FG.61 50.41 29.52 77.67 48.93 18.93 52.84 32.07 13. ------------------Mar 18 Mar 17 Mar 16 Mar 15 12 mths 12 mths 12 mths 12 mths 598.84 48.68 41.40 712.43 0.08 52.25 69.29 61.51 15.13 38.82 694.00 38.46 OTHER ADDITIONAL INFORMATION EARNINGS PER SHARE Basic EPS (Rs.26 95.12 104.36 661.93 -36.49 5.78 89.02 47.73 20.98 50.11 789.36 53.62 5.00 18.73 19.04 10.86 0.98 17.13 38.93 58.00 19.91 655.78 3.60 -43.43 654.31 595.43 0.05 660.

03 90.VALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS Imported Raw Materials 66.17 55.65 Tax On Dividend 0.91 1.34 15.00 1.84 107.82 95.26 254.64 36.20 50.65 0.00 1. SPARES AND LOOSE TOOLS Imported Stores And Spares 41.80 STORES.64 228.65 0.00 95 67.22 208.35 35.65 Indigenous Raw Materials 219.33 62.35 15.00 .03 DIVIDEND AND DIVIDEND PERCENTAGE Equity Share Dividend 1.18 Indigenous Stores And Spares 98.65 0.42 Equity Dividend Rate (%) 15.35 15.

78 422.94 2.02 424.93 0. ExtraOrdinary Items And Tax Profit/Loss Before Tax Tax Expenses-Continued Operations Current Tax Deferred Tax Tax For Earlier Years Total Tax Expenses Profit/Loss After Tax And Before ExtraOrdinary Items Profit/Loss From Continuing Operations Profit/Loss For The Period ------------------.36 53.00 38.46 OTHER ADDITIONAL INFORMATION 96 .13 38.87 847.51 15.00 19.40 712.62 -0.02 47.58 17.47 59.05 660.98 17.21 105.37 15.40 49.78 89.16 2.60 -43.46 32.52 77.40 1.67 706.01 -3.56 56.20 908.00 32.53 25.78 3.69 389.38 3.12 104.36 661.93 -36.01 30.43 0.00 32.29 61.25 69.52 730.02 47.95 51.67 48.73 20.46 33.61 50.93 58.59 658.13 38.62 5.85 106.93 18.98 50.02 33.WIP And Stock-In Trade Employee Benefit Expenses Finance Costs Depreciation And Amortisation Expenses Other Expenses Total Expenses Profit/Loss Before Exceptional.29 29.00 15.02 737.48 -15.68 41.91 655.93 52.38 5.58 13.65 65.45 67.89 15.00 18.07 0.82 694.31 77. Cr.50 55.31 77.86 0.64 745.47 33.49 5. ------------------Mar 18 Mar 17 Mar 16 Mar 15 12 mths 12 mths 12 mths 12 mths 598.13 47.42 96.04 10.43 0.26 95.53 914.in Rs.55 799.10 832.43 654.08 52.31 595.73 19.43 850.98 50.11 789.74 478.07 13.50 55.45 6.Profit & Loss account of Superhouse INCOME Revenue From Operations [Gross] Less: Excise/Sevice Tax/Other Levies Revenue From Operations [Net] Other Operating Revenues Total Operating Revenues Other Income Total Revenue EXPENSES Cost Of Materials Consumed Purchase Of Stock-In Trade Operating And Direct Expenses Changes In Inventories Of FG.

64 228.84 107.00 29.84 48.80 STORES.65 0. SPARES AND LOOSE TOOLS Imported Stores And Spares 41.03 DIVIDEND AND DIVIDEND PERCENTAGE Equity Share Dividend 1.00 1.64 36.33 62.65 Tax On Dividend 0.65 Indigenous Raw Materials 219.00 67.35 15.) 48.18 Indigenous Stores And Spares 98.84 Diluted EPS (Rs.84 32.35 15.) 48.82 95.00 97 48.20 50.26 254.65 0.34 15.84 VALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS Imported Raw Materials 66.35 35.00 1.42 Equity Dividend Rate (%) 15.41 32.22 208.03 90.EARNINGS PER SHARE Basic EPS (Rs.65 0.17 55.41 29.91 1.00 .