2010

Summer Training Report On
EXPORT AND DOCUMENTATION & INDIAN TEXTILE

Submitted in Partial Fulfillment for the Award of the Diploma of Post Graduate Diploma in Management (Session 2009-11)

Submitted to: Examination controller

Submitted By: SUMIT Kr. GUPTA Student Name: SUMIT Kr. GUPTA

Internal Guide: ASHISH JHA

Roll No: PGD09151 PGDM : I yr

DEPARTMENT OF MANAGEMENT

INSTITUTE OF MANAGEMENT STUDIES, NOIDA A UGC Recognized Institute A-8B, Plot –C, Sector-62, Noida

INSTITUTE OF MANAGEMENT STUDIES

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2010

Certificate from the Company

The project report titled “EXPORT AND DOCUMENTAION & INDIAN TEXTILE.” submitted by Mr. /Ms. SUMIT KUMAR GUPTA, (Roll NoPGD09051)

Signature

(ASHUTOSH MALL) (Name of Guide)

Date-

/

/2010

INSTITUTE OF MANAGEMENT STUDIES

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2010

Certificate from Internal Guide

The project report titled “EXPORT AND DOCUMENTAION & INDIAN TEXTILE.” submitted by Mr. /Ms. SUMIT KUMAR GUPTA, (Roll NoPGD09051)

Signature (ASHISH JHA)

Signature (ITILEKHA DAS)

(Name of Co-Guide)

(Name of Guide)

Date: -

/

/2010

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TABLE OF CONTENTS
1. 2. 3. 4. 5. 6.

PAGE NO 10 11 12 12 13 13 14

OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY RESEARCH DESIGNE BACK GROUND OF THE STUDY NEED OF THE STUDY SCOPE OF THE STUDY CHAPTER-1 DCM LTD 1.1 History 15 1.2 Company profile 15 1.3 History of DCM Shriram Industries Ltd. 18 1.4 Corporate Ethos 23 1.5 Quality System 24 1.6 Product Of DCM Shriram Industries Ltd 24 1.7 Environment, Health & Safety 24 1.8 Social Commitment 25 1.9 Rural Development 26 1.10 Product Range 26 1.11 Past Performance 28 1.12 Recent Development 30

7.

8.

CHAPTER -2 INTERNATIONAL BUSINESSES 2.1International Transaction 31

31

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2 EXIM Flow 32 2.3Export Procedure 33 2.1 (a) Proprietorship\Sole trade ship41 (b)Partnership Firm 41 (c)Joint Hindu Family Firm 42 (d)Trust 42 (e)Co-operative Society 42 (f)Private Company 42 (g)Public Company43 (h)Letter Head 43 (i)Rubber Stamp 43 (j)Bank Account 43 (k)Permanent A/c No 44 (l)Importer Exporter Code No 44 (m)Business Identification No 44 (n)SSI Registration 45 (o)Sales Tax Registration 45 (p)Central Excise 45 (q)Registration with Export Promotion Councils 45 (r)Clearing & Forwarding Agent 46 (s)Sequential Steps towards Export Operations 46 INSTITUTE OF MANAGEMENT STUDIES Page 5 .5 Export Invoice 37 9.2010 2.4Export Documentation 36 2.1To start an Export Business 41 40 3. CHAPTER-3 EXPORT BUSINESS 3.

CHAPTER-5 INDIAN TEXTILE 5.1 (c) Buying Destination of Customer 82 6.1 (a) Duration of Purchasing Habits of People 80 INSTITUTE OF MANAGEMENT STUDIES Page 6 .1 (h) Market share of the Major Textile Companies 87 79 65 52 6.4Overview of Indian Textile Industries 67 5.8Financial Document 59 4.1 (e) Purpose of Purchasing of Readymade Garments 84 6.1Introduction 66 5.7Major Textile Export Promotion Council of India 72 5.9Third Party Document 62 11.5Total Production of Yarn in India 70 5.2History 66 5.6Indian Textile Export 71 5. CHAPTER-6 DATA ANALYSIS 6.4Regulatory Documents 55 4.7Insurance Document 58 4.9Swat Analysis of Indian Textile 76 12.3Literature Review 67 5.1(b) Buying Habits of People 81 6.2ADS 52 4. CHAPTER -4 EXPORTS AND DOCUMENTAION 4.3Standardized and Aligned Pre-shipment Export Document 53 4.1 (d) Purchasing limits of Customer 83 6.1Export Documentation 52 4.5Document Connected with Transportation of Good 55 4.6Commercial Document 57 4.1 (f) Reference for Purchase 85 6.1 (g) Companies with most Festival Offer 86 6.2010 10.8Indian Textile Policy 74 5.

Export Procedures Flow Chart 39 INSTITUTE OF MANAGEMENT STUDIES Page 7 . Export Procedures 33 7. EXIM FLOW Chart 32 6.1 (i) Rate Provided by the People 88 6.2FINDING. Export Documentation 36 8.3BIBLIOGRAPHY 91 13. SUGGESTION&CONCLUSION 89 6. Organizational Chart 16 2. International Transaction 31 5. QUESTIONNAIRE 92 LIST OF TABLE 1. Product & Units 23 3. Product & Quality 25 4.2010 6.

Buying Habits of People 81 3. Purchasing limits of Customer 83 5. Market shares of the Major Textile Companies 87 9. Rate Provided by the People 88 INSTITUTE OF MANAGEMENT STUDIES Page 8 . Companies with most Festival Offer 86 8. References for Purchase 85 7. Buying Destination of Customer 82 4. Purpose of Purchasing of Readymade Garments 84 6.2010 LIST OF GRAPH 1. Durations of Purchasing Habits of People 80 2.

To determining the demand of Indian textile products in international market. To know about international business and trade. ➢ ➢ ➢ ➢ ➢ ➢ INSTITUTE OF MANAGEMENT STUDIES Page 9 . To know about the areas where it is lacing. To know the opportunities of the industry in future. To know what are the documents required before and after sailing the cargo. To determine the exact position of Indian Textile Industry. To know the effect of the current competitive environment on the Indian Textile Industry.2010 OBJECTIVE OF THE STUDY The main objectives of the research were: ➢ ➢ To know about export import process.

SAMPLE REGION: . the secondary data analysis has been takes into consideration. SAMPLE DESIGN 1.As the questionnaire is self administrated one. DATA COLLECTION METHOD 1.Primary data was collected through a self administrated questionnaire. Central Delhi. internet etc. INSTITUTE OF MANAGEMENT STUDIES Page 10 .2010 RESEARCH METHODOLOGY The different primary and secondary data’s has been used in the research project report. research papers.Noida –18 Region. the survey is kept simple and user friendly. PRIMARY DATA: . males and females irrespective of their education level. SAMPLE SIZE: 200 3. Words used in questionnaire are readily understandable to all respondent. 2.All working people are included both the genders i. SECONDARY DATA: . Also technical jargons are avoided to ensure that there is no confusion for respondents.Secondary data was collected through magazines. For the aspects. SAMPLE UNIT: . 2. RESEARCH INTRUMENTS QUESTIONNAIRE DESIG: . but maximum areas and parts of the project has been covered by primary data’s.e. This questionnaire aims to gather information related to various readymade garments.

It is a map or blue print according to which the research is to be conducts. India's textile exports have shot up from US$ 19.6 billion to US$ 60 billion by 2012. Moreover. registering a growth of over 15 per cent. when. it accounting for a leading role in the GDP of the country. where. Mainer places in India accounting for its remarkable achievement in the field of textiles.14 billion in 2006-07 to US$ 22. The Indian textile industry is estimated to be around US$ 52 billion and is likely to reach US$ 115 billion by 2012. It is a major industry in employment generation of the country.2010 RESEARCH DESIGN Research design is the based framework. which provides guidelines for the research process. how and why aspects of the investigation further the researcher used the statistical method to serve the purpose of project. it provides employment to over 35 million people. It is a major source of the earning of the revenue generation for the country. The research design specifies the methods for data collection & data analysis determine the source of data. It is expected that India's share of exports to the world would also increase from the current 4 per cent to around 7 per cent during this period. it permitted the research to derive more accurate generalization whose reliability could be measured. Most specifically it was a kind of “Descriptive conclusive research” who takes care of who. what. From the last 50 years after the independence. The domestic market is likely to increase from US$ 34. CENTRE RESEARCH : ALL OVER INDIA : EXPLORATORY : QUALITATIVE & QUANNTATIVE RESEARCH TECHNIQUE TOOL USED DATA SOURCE : TELEPHONIC & E-MAIL : PRIMARY & SECONDARY BACKGROUND OF THE STUDY Textile is the oldest business of Indians. 14 per cent of industrial production and over 13 per cent of the country's total export earnings.13 billion in 2007-08. It accounts for around 4 per cent of the gross domestic product (GDP). INSTITUTE OF MANAGEMENT STUDIES Page 11 . From the last couple of years. this sector continuously is a part of the revenue generation of the countries.

         Types of consumers that compromise present and potential markets. SCOPE OF THE STUDY The scope of marketing research in international business could cover the business problems relating to the followings. not only in India but also overseas. Buying habits and pattern of consumption Size and location of different markets. The study will give the perfect overview and actual analysis of the relevant data’s for the clear picture of the industry. Chances of improvement of current channels. •Implementation of different promotion policies of govt. •Providing fruitful information to the major companies of India’s textile sector. •Increase in the international demand of the apparels and clothes. The current and prospective competitive position.2010 NEED OF THE STUDY The study will provide a clear and brief view about the current situation and future prospect of the Indian Textile sector. As it is said that the Indian Textile sector is the one of the old and more profit earning sector from many years. INSTITUTE OF MANAGEMENT STUDIES Page 12 . Most suitable entry timing. There are following need for the study of the report. The prospects for growth or construction for the current markets being served. Marketing and manufacturing capabilities of competitors. New mantras of emerging segments. •Entry of multinational companies in the India.

2010 CHAPTER N0-1 Company Profile INSTITUTE OF MANAGEMENT STUDIES Page 13 .

The Company has operations in sugar. (DSIL) has become a subsidiary of another Subsidiary.DCM Shriram Infrastructure Ltd. Potable Liquor and Aromatic Chemicals are manufactured. distillery and an aromatic chemical unit. Liquor Operations at Daurala and Aromatic Chemicals Plant at Daurala. (DSCIL). Daurala Sugar Complex comprises a cane sugar plant. alcohol. Consequently DSIL has become a Subsidiary of DCM Shriram Consolidated Ltd.2 COMPANY PROFILE DCM Shriram Industries Limited (DSIL) is an India-based company. Daurala Organics Ltd.DCM Ltd 2004 . rayon tyrecord.1 Histosry . DCM Hyundai Ltd. Shriram Rayons manufactures rayon tyre cord with nylon and rayon conversion facilities catering to the needs of both domestic and overseas markets. The six manufacturing sites of the Company are Daurala Sugar Complex. Alcohol. Indital Tintoria Ltd. Shriram Rayons. Products like Industrial Rayon. -DCM Shriram Chairman elected as Deputy Chairman for CII (North) 2005 -Fenesta rolls out new range of window. Chemicals and Rayons. The company has five manufacturing units in India. Distillery at Daural. Daurala Sugar works is located at Daurala... DSCIL and DSIL are closely held and unlisted companies. also. Pharma Grade Sugar. DCM Shriram Credit and Investments Ltd. Refined sugar. Alcohol. Nylon and Chemicals are manufactred at Shriram INSTITUTE OF MANAGEMENT STUDIES Page 14 . UP where Sugar. Daurala Organics is engaged in manufacturing of drug intermediates. A series of ISO 9000 certified DCM Shriram Industries Ltd was formed in 1990 after the restructuring of DCM group by combining five units of DCM group namely Sugar factory at Daurala. The company is essentially a manufacturer of Sugar. DCM Remy is engaged in the production of liquors and DCM Hyundai is engaged in the production of shipping containers. door systems 1. fine chemicals. and DCM Remy Ltd.2010 1. Rayon tyre cord plant at Kota. and textiles. Indital Tintoria is focused on processing 100% cotton yarn.

Kota. Bakre B.2010 Rayons. Shriram Deputy Managing Director. Jain Anil Gujral P.e. K. Freight Containers for Trucks and Sheet and metal fabrications and Daurala F and B (P) Ltd is manufacturer of Scotch and Blended Whickies and Liqueurs. Shriram INSTITUTE OF MANAGEMENT STUDIES . Daurala Organics manufactures Drug Intermediates and Fine Chemicals.Chemicals & Alcohol Senior Vice President Senior Executive Director. Compliance Officer Whole-Time Director Age: 43 Alok B. Managing Director Age: 52 President Age: 81 Chief Financial Officer Chief Executive Officer . DCM Hyundai Ltd and Daurala Food and Beverages (P) Ltd are Shriram's promoted companies. Tamil Nadu manufactures Dry Cargo Marine Freight Containers. Company Secretary. V.f. 1-4-90 as follows: i) DCM Limited ii) DCM Shriram Industires Ltd iii) DCM Shriram Consolidated Ltd iv) Shriram Industrial Enterprises Ltd 1. The company had promoted ISO 9002 certified Daurala Organics Ltd in 1994 to manufacture high technology.2(a) BOARD OF DIRECTORS Tilak Dhar D. DCM Hyundai Ltd located at Pollivakkam. Khandelwal Chairman of the Board. C. P. high value drug intermediates. Mittal N. Under a Scheme of Arrangement approved by the shareholders and creditors of the Company and also by the Hon'ble Delhi High Court vide their Order dated 164-90 the Company (DCM Ltd) now stands divided into four companies’ w. Director Page 15 Madhav B. Rajasthan.

N. Director Chief Operating Officer . Kumar K.2(b) ORGANIZATION CHART SIR SHRIRAM (FOUNDER) MURLI DHAR SHRI DHAR Dcm shriram consolidate d ltd SBGI/blosee ds ltd DSCL esco(100% subsidiary) BANSI DHAR DCM shriram indust ltd Daurala organics DCM hyundai BHARAT RAM VINAY/VIV EK DCM ltd DCM financial services DCM benetton ARUN SRF CHARAT RAM SIDDHART/DEEP AK SIEL Jay engg Usha international Shriram pistons INSTITUTE OF MANAGEMENT STUDIES Page 16 . Rao Director .2010 Age: 47 G.Rayons 1.Sugar Operations.

Its Textiles division is a Spinning Mill located in Hisar (Haryana) engaged in the manufacturing of 100% grey cotton yarn and Melange yarn in the count range of 14`s to 40's.DCM Shriram Industries Ltd has informed that the Board of Directors of Comp.2010 1.The communication issued to the BSE. precision engineering. Mumbai. will be allotted shares in DCM Shriram Industries limited & Shriram Industrial Enterprises limited in the ratio of one share in each of above Companies for every four shares held by then in DCM Ltd. DCM Shriram Industries Ltd has informed that Shri D. Crosrol (UK). DCM is a part of DCM group which was incorporated in the year of 1889 and is engaged in manufacturing of engineering products and textiles. Hiving off of its Polymer Processing Business on a going concern basis to its 91% subsidiary DCM Shriram Exports Ltd. Hissar (Haryana) and New Delhi.e. 1-4-90 as follows : [1] DCM Limited [2] DCM Shriram Industires Ltd [3] DCM Shriram Consolidated Ltd [4] Shriram Industrial Enterprises Ltd As per the scheme. Its INSTITUTE OF MANAGEMENT STUDIES Page 17 . S B Mathur on the Board as an Additional Director. Information Technology and Real Estate. & also by Honourable Delhi High Court vide their Order dated 16-4-90 the Comp. The company's IT division was established in 1972 with its head office in Gurgaon and a branch in CA.f. schlafhorst A. Pursuant to the scheme three units namely. has approved as under : 1. Kolkata.C. Managing Director for further period of 5 years w. 2001 . The different divisions of DCM group are engineering products. Shriram Rayons & Hindon River Mills have been vested with the Company. Under a 'Scheme of Arrangement' approved by shareholders & creditors of Comp. for usage in knitting fabrics and weaving of terry towels. as on 21-9-1990. -DCM Shriram Industries Ltd has re-appointed Shri Alok B Shriram as Dy. The unit has a line of new generation machines from renowned manufacturers like M/s. 2008. tolls and dyes. has co-opted Shri. .The Board of Directors of Comp. DCM`s principal businesses constitute textiles. DCM basically has three different divisions Textiles.f. Chennai and Hyderabad.3 History of DCM Shriram Industries Ltd.e. information technology and real estate. textiles and real estates. Joint Managing Director has demitted office on December 11. Daurala Sugar Works. Rieter (Germany). The company has its plants at Asron (Punjab). [DCM Ltd] now stands divided into four companies w. He will be an independent director.Mittal.Credit rating agency has retained the MD rating. the shareholders of DCM Ltd.G (Germany). USA and four branches in Delhi. at its meeting held on January 14. Laxmi Machine Works (India) among others. 2000 . indicating default to the fixed deposit programme of company. 2008. October 01. 2001.

QUALITY POLICY INSTITUTE OF MANAGEMENT STUDIES Page 18 . rayon tyrecord & textiles. DCM Shriram Group has inherited the precept of giving the customer "an extra inch" from its founder. And it applies to product specifications and quality as much as to other aspects of business.2010 service range includes Enterprise System Management Services. alcohol. (DSIL) is the flagship company of the DCM Shriram Industrial Group based predominantly in Northern India with a portfolio of products comprising of sugar. DCM Shriram Industries Ltd. 1.3 (c). The group has moved away from its one-time staple. Embedded System Software for Automobiles and Embedded System Software for Wireless.3 (a) Introduction of DCM Shriram Industries Ltd. fine chemicals. 1. Customer Support Services. The group has a strong emphasis on technology and quality as also a strong commitment to environmental & social concerns. 1. textiles. but the precept remains.3 (b) Quality Policy OF DCM Shriram Industries Ltd.

Quality. effective corporate management.aspires to live up to & surpass.born in 1990 on restructuring of the erstwhile DCM Ltd .3 (d) About DCM Shriram Industries Ltd. As a business group that has inherited the rich legacy of sound governance. technological sophistication & above all the goodwill & loyalty of numerous stakeholders & associates. the name DCM Shriram has been synonymous with Excellence. we continue to INSTITUTE OF MANAGEMENT STUDIES Page 19 . For over a hundred years. Environmental consciousness and pioneering spirit. Integrity. This is the legacy that DCM Shriram Industries Group .2010 1.

comprising a cane sugar plant. 5. Drug Intermediates. DCM Shriram Industries is a diversified group with operations in Sugar. Daurala Organics. distillery and an aromatic chemicals unit. A tradition of excellence. MILESTONE INSTITUTE OF MANAGEMENT STUDIES Page 20 . manufacturing shipping containers. manufacturing new generation drug intermediates. The group comprises five main business operations.. comprising rayon tyre cord/yarn/fabric and nylon chafer/fabric plants. Organic and Inorganic Chemicals.2010 build our business on the vision & values endowed by our founder. manufacturing high-class liquors. DCM Shriram Industries group remains committed to continuous modernization. expansion. As a market-driven agglomerate. Shipping Containers and processed cotton yarn. diversification and innovation. Daurala Foods & Beverages (P) Ltd. DCM Hyundai Ltd. each with a history of consistent performance over the years. responsive to customer needs. Daurala Sugar Complex.. Rayon Tyrecord. It is a commitment that has helped us maintain leadership in every area of our operations. Shriram Rayons. Alcohol.

Heavy inorganic chemicals plant set up at Delhi .) .Urea plant set up at Kota .Yarn dyeing and processing unit established at Alwar (Indital Tintoria Ltd. .Shipping containers company established at Chennai INSTITUTE OF MANAGEMENT STUDIES Page 21 .) .Aromatic chemicals plant set up at Daurala .Computers unit set up at Delhi .Precision castings (for automobiles) foundry set up at Ropar .Rayon tyrecord plant set up at Kota .2010 Delhi Cloth Mills founded at Delhi .Textile mills set up at Dasna .Sugar factory set up at Mawana .Spinning mills at Hissar and Silk mills set up at Delhi .PVC.Sugar factory set up at Daurala .Distillery set up at Daurala .New textile mills set up at Delhi .Drug intermediates company established with works at Daurala (Daurala Organics Ltd.DCM restructured into 4 different groups 1.3 (f) Birth of DCM Shriram industries Ltd.Liquor operations started at Daurala .Chlor-alkali and Calcium Carbide plant set up at Kota .Textile Mills set up at Lyallpur (Now Faisalabad in Pakistan) .

has won the National Safety Award consecutively for 15 Yrs. One of the units.5 (b) Environment Manufacturing units of the Group are like garden factories.4 Corporate Ethos Enterprises of DCM SHRIRAM Group Endeavour to maintain leadership status by observing norms of excellence in all areas. 1.Commercial production of Anhydrous Alcohol (for admixing field) 200 . 1. Focus is on maintaining a technological edge through product development. and conservation of environment.2010 (DCM Hyundai Ltd. ISO 9000 series certification has been received from RWTUV of Germany and Det Norsk Veritas of Norway.5 (c) Safety Safety of men. Shriram Cane Research Farm. Shriram Rayons. machines & materials has a high priority. 1. optimisation of resources. control of pollution. and Shriram Test House. and conservation of environment.) .Joint Venture Liquor company established with works at Daurala (DCM Remy Ltd. This constitutes a specific target of R&D effort.5 Quality Systems Highest degree of product specifications and quality standards is maintained by adopting world-class quality systems.5 (a) Research & Development Research & Development is a continuous process. amalgamated with DCM 5 1. energy conservation. technology upgradation. INSTITUTE OF MANAGEMENT STUDIES Page 22 .) . 1.Daurala Organics Ltd. pollution control. Close connection is maintained with research institutions like the Shriram Institute for Indusatrial Research (SRIFIR). Utmost attention is paid to treatment of effluents.

This has prompted us to adopt the following measures : INSTITUTE OF MANAGEMENT STUDIES Page 23 .Chemicals Daurala. Facilities like housing. libraries & reading rooms.Sheet metal fabrications .Dry Cargo Marine Freight Containers . 1..P. Rajasthan.6 Product & Unit Manufacturing Units Place .Freight containers for Trucks .. Human resource development.Fine Chemicals .Industrial Rayon .Nylon . career planning & skill-up gradation are essential parts of the Group's mgmt.P. U. healthcare. Pollivakkam. Daurala. .2010 1. Motivating them by imparting a sense of involvement.5 (c) Human Resource Emphasis is placed on worker-management partnership. 1. caring & recognition. Daurala F & B (P) Ltd. 1. process.Scotch & Blended Whiskies ..5 (d) Quality Of Life Helping to improve the quality of life of employees is a part of the basic management philosophy of the Group.Sugar - Products Refined Sugar Pharma Grade Sugar Alcohol Potable Liquor Aromatic Chemicals Daurala Sugar Works Daurala. .Liqueurs Daurala Organics DCM Hyundai Ltd. Health & Safety DCM Shriram Industries Group has always been dedicated to meeting their responsibility towards protection of environment and conserving scarce natural resources. Achieving corporate goals through the cooperation & dedication of all personnel..Drug Intermediates . U. Tamil Nadu. family welfare. sports & cultural centers are common features at all units.P. education. Shriram Rayons Kota.7 Environment. U.

2010
Boilers modified for multi-fuel arrangement and can be run on various renewable fuels, viz., biogases, rice-husk and eco-friendly bio-gas (methane). • Effective flue gas wet scrubbing system using in-house technologies to release pollution free flue gases. • ESP's • Bio-methanation and secondary Plant set up to obtain eco-friendly bio-gas from distillery effluent, using in-house technologies. • Effluent Treatment Plants set up in all factories to not only control discharge of pollutants within prescribed limit but also generates bio gas which is used as a clean fuel in the boilers • Green Belt in and around the factory and residential complexes. • Minimizing energy and water consumption in processes. • Yearly Plantation practice • Newer technology are adopted to minimize consumption of energy and water in the complex • Bio compost plant provides eco-friendly manure to the farmers of the area It is our policy to maintain the wholesomeness of the environment and preserve the ecosystem. 1.7 (a) Health & Safety Health and safety of employees and the public is of paramount importance to us. • Shriram Rayons, has won the National Safety Award for 15 Yrs. • Organize regular training programmed covering all aspects of safety and hazardous operations. • Assessment and elimination of potential hazards/risks to Safety, Health and the environment, supported by regular safety audits and timely implementation and maintenance of safety systems supported by periodic drills and rehearsals.

1.8 SOCIAL COMMITMENT

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2010
Helping to improve the quality of life of our workers is very much a part of the basic management philosophy at DCM Shriram Industries. Facilities like housing, education, medicare, family welfare, libraries and reading rooms, play grounds and cultural centres for employees and their families are provided at all our units. Highlights Workers' clubs equipped with reading room, sports room, gymnasium etc. to encourage social interaction. In-house facilities for regular sports and cultural events at all units, to encourage participation by all employees and their families. Organizing free family planning & welfare camps in rural areas in collaboration with the local administration on a regular basis. Operating charitable hospitals for the workmen as well as people of the nearby villages. - Maintaining green belts in and around manufacturing sites.

1.9 RURAL DEVELOPMET

The company believes in sustainable development and therefore perform its role in the development of the community in and around its units. Various programs are regularly undertaken for improving the living conditions of the people in the vicinity of our units Today, the DCM Shriram name is widely associated with education, health care and welfare activities. DCM has build Building schools, hospitals, vocational and community centers. Connecting villages in the sugar factory area with metal led roads and providing other infrastructure such as street lights, solar lighting , culverts, etc.
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Organizing free family welfare and health camps. Conducting immunization drives. Popularizing and subsidizing biogas plants, smokeless chulhas and solar cookers to meet local energy requirements and protecting the environment. Adopting villages for community development. Providing subsidies to farmers for purchase of agricultural input.

1.10 Shriram Rayons has the following product range.

Rayon Products

Nylon Products

Chemical Products

RAYON PRODUCTS PRODUCT YARN 1220/1 D.TEX RAYON TYRE YARN 1840/1 D.TEX RAYON TYRE YARN 2440/1 D.TEX RAYON TYRE YARN 1840/1 D.TEX RAYON TYRE YARN (Yarn Package Specification) CORD : Made from above yarn to customer specification 1220/2 D.TEX RAYON TYRE CORD 1840/2 D.TEX RAYON TYRE CORD 2440/2 D.TEX RAYON TYRE CORD 1840/2 D.TEX RAYON TYRE CORD (Cord Package Specification) SUPER-II SUPER-II SUPER-II SUPER-II SUPER-II SUPER-II SUPER-II SUPER-II QUALITY

GREIGE FABRIC : Warp - Cord Linear Density of yarn Super-II Viscose Rayon 1220/2, 1840/2,1840/3,2440/2 and to customer specification RAYON TYRE CORD FABRIC (GREY) RAYON TYRE FABRIC
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GREY FABRIC PACKING SPECIFICATIONS(CONTAINERISED) RAYON TYRE FABRIC (GREY FABRIC PACKING SPECIFICATIONS) RAYON TYRE FABRIC DIPPED FABRIC PACKING SPECIFICATIONS (CONTAINERISED) 1840/1 D.TEX (1650/1 DENIER) DIPPED RAYON CHAFER FABRIC SUPER-II SUPER-II

SUPER-II

R.F.L. Treated Fabric : We treat Greige Fabric of above Specifications or to customer requirement

NYLON PRODUCTS Square Woven Chafer Fabric Wicking and Non-wicking : Multi Filament Nylon 6 or Nylon 66 in Deniers 840 and 1260. To customer Specification. The Yarn for the chafer can also be sourced from customers approved yarn Vendor. 940/1 D.TEX (840/1 DENIER) DIPPED NYLON CHAFER FABRIC 1400/1 D.TEX_(1260/1 DENIER) DIPPED NYLON CHAFER FABRIC Tyre Cord Fabric To customer specifications in 840/2, 1260/2 And 1680/2 Deniers. 2/1880 D.TEX NYLON TYRE CORD FABRIC (GREY) 2/940 D.TEX NYLON TYRE CORD FABRIC (GREY) 2/1400 D.TEX NYLON TYRE CORD FABRIC (GREY) R.F.L.Treated fabric : We treat Grieg Fabric of above Specifications or to customer requirement

CHEMICALS PRODUCT ANHYDROUS SODIUM SULPHATE ANHYDROUS SODIUM SULPHATE CARBON-DI-SULPHIDE QUALITY Coarse Grain Quality (CGQ) Normal Quality (NQ/NQA) As per specifications

1.11 PAST PERFORMANCE

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investment in group companies increased by Rs 23 crore. As on September 1996. Poor performance has not deterred DCM Shriram from investing in group companies. In fact. capitalization of detention charges. up 59 per cent from March 1995. The idea of giving loans is fine as long as the company has enough funds.63 crore. which resulted in huge interest outgo. etc. Advance towards preliminary and pre-operative expenses incurred for DCM Remy was Rs 1. This is mainly due to the adverse conditions in the sugar industry and rising input costs. the company has given an advance of Rs 6. ITL had an accumulated loss of Rs 8.34 crore and a net worth of Rs 4. However. This means that the company would be getting less than nine per cent annual yield on these loans. Net loss stood at Rs 47.77 crore are not directly attributable to the acquisition of fixed assets.31 crore to Rs 9.68 crore compared with Rs 41. the loan is considered good by the management. The auditors were also unable to comment on the recoverability and consequential effect of a loan of Rs 1.52 crore for the year ended March 1995. DCM has investments of Rs 3. borrowings stood at Rs 244. amounting to Rs 7.79 crore. the net loss would have been much higher. Similarly. As if this was not enough. and hence should not have been capitalized.2010 Despite a dismal performance. investments increased from Rs 22. the company recorded an operating loss of Rs 5. It should be noted that during the same period.17 crore to Rs 46. As on September 1996.88 crore to the subsidiaries. As a result. the company has invested Rs 10 crore in interest-free non-convertible debentures (face value Rs 100) of Daurala Organics.77 crore. Indital Tintoria and DCM Shriram International B V increased from Rs 4. the loss for the year has been understated by Rs 7. the gross block increased by Rs 8.04 crore.47 crore (last year Rs 0.45 crore.43 crore. DCM Shriram Industries has substantially increased its investments in group companies. These debentures are to be redeemed at a premium of Rs 26 each on April 1998 (three years from the date of allotment).81 crore) in the subsidiaryIndital Tintoria (ITL). The amount due from this subsidiary is Rs 8. DCM has also given a guarantee to financial institutions and banks for repayments amounting to Rs 8.11 crore to Rs 48.73 crore only. For the 18-month period ended September 1996.53 crore against a net profit of Rs 14. concor charges. The net interest cost rose from Rs 13. According to the auditor’s qualifications.86 crore as on March 1995. In fact. Can DCM INSTITUTE OF MANAGEMENT STUDIES Page 28 .28 crore. DCM has increased its borrowings.18 crore.79 crore. In fact. Investments in subsidiary companies DCM Shriram Leasing. have already made a hole in DCMs pocket. Higher borrowings.41 crore. For the 18-month period ended September 1996. with an option to the company to surrender the debentures for redemption prior to the due date in which case no premium would be paid. A sharp jump in interest burden has further affected profits at the gross level.

which will be run by it.12 RECENT DEVELOPMENT Mefcom Capital Markets. The company is going ahead with the plan of taking the total number to around 100 over the next 3-4 years with an investment ranging from Rs 60-lakh to Rs one crore each. The first such fuel station is expected be in operation before the end of this month. The company has also entered into a strategic alliance with Bharat Petroleum Corporation (BPCL) for setting up petrol or fuel pumps. he needs diesel also for irrigation.HB Stockholdings made an open offer to the shareholders of DCM Shriram Industries to acquire up to 3. representing 22.5 million fully paid up equity shares of Rs 10 each. the management is hopeful. revaluation reserves stands at Rs 76.2010 recover the money in the near future? According to the annual report. The aim is to have multiple stores in each district within a radius of around 25-30 Km. The management has set up a target to opening at least 50 branches/franchisees by March 2008 and scales it up to 100 branches by the end of the next year. DCM has also revalued its assets.62 crores. The company has already set up eight one-stop multi-brand showrooms or Hariyali Kissan Bazars (as the company calls these stores) spread in over 8-10.43 crore 57 per cent of the total reserves. Yet another step forward is a tie-up with ICICI Bank Limited on loans and funding for farmers INSTITUTE OF MANAGEMENT STUDIES Page 29 . The portfolio management division has targeted to collect at least Rs 1.88% of fully paid-up equity share capital at a price of Rs 70 a share payable in cash. Of the total reserves of Rs 133. on behalf of HB Stockholdings.000 sq ft area each for providing all solutions to the farmer community. issued a public announcement to the shareholders of DCM Shriram Industries. 1.000 million for management under its schemes by the end of the year 2008. Apart from a liberal attitude towards its group concerns. It is working on the philosophy that if a farmer comes for farming solutions.

2010 CHAPTER N0-2 INTERNATIONAL TRANSACTION INSTITUTE OF MANAGEMENT STUDIES Page 30 .

1 INTERNATIONAL TRANSACTION PROCESS 2.2010 2.2 EXIM FLOW CHART INSTITUTE OF MANAGEMENT STUDIES Page 31 .

2010 INSTITUTE OF MANAGEMENT STUDIES Page 32 .

2010 2.3 EXPORT PROCEDURE In India. It therefore interesting to study the export processed by ship documentation related to it. ships transport more than 90 per cent of the cargo. INSTITUTE OF MANAGEMENT STUDIES Page 33 .

iv. INSTITUTE OF MANAGEMENT STUDIES Page 34 . If satisfy then cargo allow to loaded on the board of ship. Exporter operation starts with the receipt of enquiry by the exporter from importer. After that. iii. viii. The exporter manufactures the goods according to the specification given in purchase order. After the process negotiations importer sends a purchase order follow by letter of credit (if applicable). Custom department check the export cargo on the basis of information provided on the shipping bill. the exporter prepared following documents:---- ✔ ✔ ✔ ✔ ✔ INVOICE PACKING LIST ARE1 FROM EXSICE DEPARTMENT MARINE INSURANCE POLICY COPY OF PURCHASE ORDER / L/C vi.2010 Processing of an export order---i. Bar on the enquiry exporter submits his offer giving complete details of products technical specific price delivery payment terms etc. Based on these documents CHA agent completes the octroi formalities. obtain port permit and prepare shipping bill which is a customs documents. vii. ii. Above those documentation sends to CHA by exporter. As soon as the goods are ready the exporters invites the representative of Export inspections agency (EIA) for pre shipment inspection and obtain the certificate of inspection. v.

B/L is a proof of dispatch of cargo and also a negotiable document. ✔ ✔ ✔ After that.2010 ix. The shipping line gives mate receipts to CHA agents after the payment of ocean freights and port due obtains the bill of lading (B/L) from shipping line . After that the exporter submitted above these documents for negotiation to the bank which include :---✔ ✔ ✔ ✔ ✔ ✔ ✔ Commercial invoice Packing list SDF form Original copy of purchases order Certificate of origin Bill of exchange Shipment advice INSTITUTE OF MANAGEMENT STUDIES Page 35 . x. CHA agent send various documents back to exporter which is— Customs attested invoice Copy of shipping bill Full set of non board bill of ladings Copy of purchase order or L/C Copies of ARE1 Form SDF form ✔ ✔ ✔ xi.

2010 After that. 2. bank scrutinizes these documents and if found correct make payment to exporter against documentations.4 EXPORT DOCUMENTATION INSTITUTE OF MANAGEMENT STUDIES Page 36 .

Port of loading Port of discharge Final Destination Marks and Nos.5 (a) ELEMENT OF EXPORT INVOICE:➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ Exporter Consignee Invoice No. Item code Description of goods Net weight Page 37 INSTITUTE OF MANAGEMENT STUDIES . and Date Exporter Ref.5 EXPORT INVOICE 2. Buyer order no and date Other reference Buyer (other than consignee) Country of origin of goods Country of final destination Terms of delivery and Payment Pre-carriage by Place of receipt by pre-carrier Vessel/ Flight no. / No & Kind of pkgs.2010 2.

2010 ➢ ➢ ➢ ➢ ➢ ➢ ➢ Gross weight Quantity Rate CIF EURO Amount CIF EURO Amount in words Declaration: Authorized signature INSTITUTE OF MANAGEMENT STUDIES Page 38 .

2010 INSTITUTE OF MANAGEMENT STUDIES Page 39 .

2010 CHAPTER-3 EXPORT BUSINESS INSTITUTE OF MANAGEMENT STUDIES Page 40 .

Partnership can be created orally or written.2010 3. Each one has agreed to share the profit and loss of the business in a definite proportion. It is governed under the Indian Partnership Act. Partnership. There is no legal formality or need for registration to commence the business provided it is a lawful business.1 TO START AN EXPORT BUSINESS The first and foremost thing is that one has to form a Company as per the Indian Rules and regulations.U.1 (c) JOINT HINDU FAMILY FIRMS (H.1 (b) PARTNERSHIP FIRM: Partnership has two or members/persons but not more than 20 and 10 in the case of banking business. The business is carried on by all or any one of them acting for all.F): INSTITUTE OF MANAGEMENT STUDIES Page 41 . Though the registration is not legally compulsory but registration can be affected at any time by sending a statement in the prescribed form with prescribed fee to the Registrar of Firms of the locality. A Brief description of different set-up is as under: 3. 1932. Private limited Company or Public limited Company. 3. Trust. Every partner is jointly and severally liable for all acts of the firm.1 (a) PROPRIETORSHIP/SOLE TRADERSHIP: The sole trader is a person who carries on business exclusively by and for him. He is not only the owner of capital but is usually the organizer and manager and takes all the profits. 3. Co-operative society. Partner should be a person competent to enter into a contract and business should be legal. The leading feature of this kind of concern is that the individual assumes full responsibility for all the risks connected with the conduct of the business. responsibility for losses. The Company can be Proprietorship.

The head of the family.2010 A joint Hindu family carried on a business inherited from its ancestors. 3.1 (e) CO-OPERATIVE SOCIETY: Minimum 7/10 persons competent to enter into a contract are required to form a Co-operative society. It may commence business on grant of certificate of Incorporation by the Registrar of Companies on receipt of Memorandum of Association and Article of Association (with certain prescribed restrictions) along with prescribed fee. governs it. 3.1 (f) PRIVATE COMPANY: A minimum of two and maximum of 50 persons are required to form a private company. Trust deed is written and registered with the Registrar of Trust of the State.1 (g) PUBLIC COMPANY INSTITUTE OF MANAGEMENT STUDIES Page 42 . persons of unsound mind. Company has separate entity from its members. The Companies Act. 1956. The members are liable only to the extent of their share in the family business but the head of family has unlimited liability. Co-operative Societies Act governs it. The composition changes by births. e. handicapped etc. The shares of the members are not defined. 3. has full authority. It is governed by Hindu Law. Two trustees are appointed. deaths. It does not require registration. It is advantageous from taxation point of view. It is a voluntary organization. It can be registered with the Registrar of Co-operative societies for carrying out lawful business. marriages and divorces in the family. the Karta.g. It may be limited by shares and or by guarantee. Profit is distributed amongst members in the predetermined ratio after transferring of 25% of profit to Reserves. 3.1 (d) TRUST: The business is carried on generally for the benefit of minors. It needs to have two Directors.

The selection of bank is very important.1 (h) LETTER HEAD: Once the type of set up has been decided.A. such as Memorandum of Association and Article of Association. it has to obtain Certificate of Commencement of Business for commencing business.1 (j) BANK ACCOUNT: The Company now has to open a Current Account in any Commercial Bank. The Companies Act. it needs to have a minimum of three Directors. While opening account.2010 A minimum of seven persons required forming a Public Company After obtaining Certificate of Incorporation. 1956. a Rubber Stamp of the company is to be made. 3.1 (i) RUBBERSTAMP: As soon as the name of the company is decided. It may be limited by shares and or by guarantee or with unlimited liability. particularly Foreign Exchange transaction facilities in the Bank. along with prescribed fee.1 (k) PERMANENT ACCOUNT NUMBER (P. 3. particularly keeping in view of the long-term relations to be established not only with the concerned heads of the Foreign Exchange Department but also with the staff for getting prompt services. These certificates are issued by Registrar of Companies on filling certain documents. The size of the letterhead should be “A-4” as per international practice.N) The Company now has to apply for a permanent (Income Tax) number from the local office or via designated agencies of Income tax department. Address of Registered office. 3. in the INSTITUTE OF MANAGEMENT STUDIES Page 43 . Statutory declaration. the entrepreneur may see the facilities. 3. The entrepreneur may entrust the job to commercial artist to design the letterhead and logo of the company. Approval for Name. the next step is to print letterhead. governs it.

Application for allotment of IEC should be made in triplicate in the prescribed form duly accompanied by Bank receipt/Demand draft evidencing payment of fee along with the following documents: A) B) A) Xerox of income tax PAN.1 (n) S. It will help you to forward with a smooth business without any type of taxation related problems.1 (m) BUSINESS IDENTIFICATION NUMBER (BIN) Application for allotment of BIN should be made in duplicate in the prescribed form duly to the Concerned Regional Licensing Authority. The Concerned Regional Licensing Authority. B) Certificate from the banker in the form as mentioned in the IEC application form. The customs authority will not allow any person to import or export goods into or from India unless such person holds a valid Importer-Exporter Code Number. under whose jurisdiction the applicant’s firm is located or also can made the application online directly through the website DGFT to have BIN. will allot code number.) importing or exporting goods into or from India will require a Code Number unless specifically exempted by the Chief Controller of Imports and Exports.I REGISTRATION (TINY UNIT) All exporters engaged in manufacturing process and whose investment in plant and machinery is less than five lakhs can file an application for Registration as a Small Scale Industrial unit. 3.EXPORTER CODE NUMBER (IEC) Every person (whether an individual or firm or company etc. 3.2010 prescribed format along with necessary documents and Fee.S. under whose jurisdiction the applicant’s firm is located. The SSI unit registration benefits you in INSTITUTE OF MANAGEMENT STUDIES Page 44 .1 (l) IMPORTER. 3.

1 (o) SALES TAX For producing export goods. if the export product is such that it is not covered by any EPC. An exporter may obtain Registration-Cum-Membership Certificate (RCMC) from any one-export promotion council (EPC) relating to his main line of business. the Regional Licensing Authority concerned thereof may issue RCMC in respect.H. direct an EPC or FIEO to register or de-register an exporter of otherwise issue such other direction to them consistent with and in order to implement the provisions of the Act. However.1 (q) REGISTRATION WITH EXPORT PROMOTION COUNCILS The general policy in respect of the role and functions of the Export promotion Councils is given separately. 3. 3. manufacturers exporters/traders.25 lakhs consequently are exempt from excise duty. It attracts levies and priority in bank loan interest/electricity rates etc. SSI units whose clearances don’t exceed Rs. on his own motion or otherwise. should get themselves registered with the Local Sales Tax Department of the State/Union Territory where they are located.2010 many kinds in your future business. Government of India . The Chief Controller of Imports and Exports may.1(r) CLEARING AND FORWARDING AGENT (C&F/C.1 (p) CENTRAL EXCISE (RBA) All manufacturer-exporters and merchant-exporters engaged in exporting excisable goods under “bond” are required to open and maintain a Running Bond Account (RBA) with the Maritime Collector of Central Excise. 3. 3. the rules and orders made in the Import and Export Policy of Ministry of Commerce. However. The Federation of Indian Export Organization (FIEO) shall issue the RCMC.A) INSTITUTE OF MANAGEMENT STUDIES Page 45 .

getting the documents authenticated at customs after getting the consignments checked by customs officers. by securing Pre-shipment finance from your bank on the basis of security of L/C or Confirmed Export Order or Personal bond along with ECGC policy. Procurement/Manufacture of goods. Procurement of an export order and its processing: a) Terms & conditions of Contract b) Mode of payment c) Confirmation of the order by exporter. from the premise of the exporter after physical verification: a) On payment of duty and subsequent rebate or Page 46 INSTITUTE OF MANAGEMENT STUDIES . 3.2010 Clearing and forwarding agents offer a host of services like preparation of shipping bill. Preliminary Stage: Procurement of all kinds of registration as mentioned above. h) Preparation and processing of all kinds of shipping documents i) Efficient shipment tracking systems like availing of Flight details with routes and date etc. Clearance of Excise Authorities. 3. Now the exporters have to take special attention to submit the necessary post shipment documents with his bank and concerned customs/ licensing authority for getting Licenses/drawback claims if any.1(s) THE SEQUENTIAL STEPS TOWARDS EXPORT OPERATIONS 1. its clearance & display at pavilion. 4. Some other services them are as under: a) Door to door services b) Warehousing facilities c) Regular air consolidation services in India d) Booking of shipping space e) Arrangements for insurance policies f) Arrangements for shipping on board g) Handling of exhibition goods. as per the specification of the importer. 2.

B. 6. Declaration form in triplicate. Forwarding of shipment documents to C&F /CHA agent. 7. consular invoice. Dispatch of goods to the gateway port for shipment by road or Rail and requisite application to be made to the insurance company for obtaining insurance cover for various risks. 5. export license etc. Certification of inspection. Original G. along with requisite instructions including booking of space with sea-carrier whose sailing schedule and ports of call suits the exporter’s delivery commitment.I for shipments values less than US$ 25000). Certificates of origin. INSTITUTE OF MANAGEMENT STUDIES . Original excise gate pass. canalization etc.2010 b) Clearance under bond. Railway or Lorry receipt. ECGC cover. Endorsement regarding floor price. 8. canalization. Completion of formalities relevant to MEP or floor price regulation. m) n) o) Purchase Memo on demand where necessary. Export license where necessary. Original copy of L/C.R form /SDF (It is now waived off by Original AR-4A/AR-4 form with duplicate copies. Original export order. wherever required. where R. certificate of origin. Packing and weight lists. To fulfill the requirement of quality control and pre-shipment Inspection. Page 47 Commercial invoice. The documents required by C&F agent for processing prior to shipment are: a) b) c) d) e) f) g) h) i) j) k) l) necessary. Consular invoice where necessary.

The C&F agent takes delivery of the goods from the rail or road carrier and arranges for storage in a warehouse. INSTITUTE OF MANAGEMENT STUDIES Page 48 . Shipping bill along with other documents mentioned above is submitted to the export department of the Customs House. The Mate Receipt is presented usually to the Agent of the shipping company for obtaining requisite number of originals and copies of the Bill of Lading. Thereafter Dock Challan with requisite details along with assessment of Dock charges payable is prepared. Dock Challan and the Shipping Bill are forwarded to the preventive officer for physical examination of the goods and “Let Ship/Let Export” endorsement. 12. for examination.2010 9. 13. In the meantime prepares the shipping bill with requisite details for customs clearance. It is then presented to the Customs Preventive Officer for certifying the fact of shipment on all copies of Shipping Bill. the C&F agent presents the port trust a copy of the shipping bill to Shed Superintendent of the port authorities and obtains Carting order for bringing the export consignment in the transit shed for physical examination. AR-4A/AR-4 form and other Documents requiring post-shipment endorsement from the Preventive Officer. 10. till carting order is received from port authorities. On clearance of the shipping bill by the Customs Authorities. 14. C&F agent obtains the Mate Receipt from the port authorities. 11. On payment of port charges. The Stevedore and issue of Mate Receipt by the Master or the Mate of the ship bring the cargo alongside the vessel with the help of port labour for loading on the ship.

Copies of customs invoice. On receipt of these documents. first and second exchange. The exporter secures payment for the value of the export consignment on presentation and processing of the following documents to the negotiating bank. The C&F agent then forwards to the exporter the following documents: 1. Export Promotion copy of the shipping bill. Copies of commercial invoice duly attested by customs. He also files a claim with the Maritime collector of Central excise in the port town for rebate of central excise duty or for getting credit in the bond account. Original export order. 7. Duplicate copy of GR /SDF form (where necessary). 6. Customs invoice. the exporter sends to the importer the shipment advice and forwards the following documents: 1 2 3 4 Non-negotiable copy of the Bill of Lading. 17. Packing list. 4. 16. 3. 2. Full set of Bill of lading. Bill of exchange. 1. Original L/C. 5. Commercial invoice. 2. Duplicate copy of AR-4A/AR-4 form.R/SDF form. 8.2010 15. Duplicate copy G. INSTITUTE OF MANAGEMENT STUDIES Page 49 . 18.

10. 6. 2. Two copies of packing list. Consular invoice. 4. The negotiating bank transmits/sent the following documents to the banker of the importer by first air mail/express courier followed by a second set of these documents by the second air mail/courier to ensure receipt of at least one set. (Now a day Messages through SWIFT are authorized). Two copies of customs invoice. 8. Full set of Bill of Lading (clean on board). 12. The negotiating bank transmits/send the duplicate copy of INSTITUTE OF MANAGEMENT STUDIES Page 50 . Four copies of bank certificate. 11. Two copies of commercial invoice. 5. Insurance Policy. 1. 7. 9. Commercial Invoice. 4. 20. Consular invoice. Two copies of Marine Insurance Policy. where necessary. Negotiable Bill of Lading. Bill of exchange. 19. 6.2010 3. Customs Invoice. Export certificate. Additional copies of commercial invoice to be certified by the bank and returned to the exporter. Certificate of Origin. Original copy of L/C. 5. all negotiable copies and one non-negotiable copy. 8. if necessary. Where necessary. 7. Two copies of Certificates of Origin. Packing list. 3. if the other is lost in transit or delayed.

and the duplicate copy of the bank certificate is forwarded to the Jt. DGFT.2010 GR/SDF form to the Exchange Control Department of R. along with attested copies of commercial invoice are returned to the exporter. Import & Exports of the area on repatriation/ receipt of the bill payment. INSTITUTE OF MANAGEMENT STUDIES Page 51 .I. The original copy of bank certificate.B.

include export trade control. Besides. quite few of these owe their existence to certain statutes. INSTITUTE OF MANAGEMENT STUDIES Page 52 . central excise and customs. foreign exchange regulations. which inter alias. One of the significant variations between the two arises on account of the much heavier documentation work which is characteristic of an export transaction. rules and regulations governing export trade. arising as they do on account of “custom of trade” and conventions governing international commercial practices. pre shipment inspection.1 EXPORT DOCUMENTATION An export trade transaction distinguishes itself from a domestic Trade transaction in more than one-way. Some of the documents are a must in export business.2010 CHAPTER-4 EXPORT DOCUMENTATION 4.

insurance companies. the government of India has decided to introduce the ADS with effect from 1st October-1991.B. This system involves the preparation of documents on a uniform and standard A4 size of paper.2010 The documentation and procedures are rendered complex on account of the inevitable involvement of a number of intermediary agencies and government authorities such as freight forwarders. Commercial Invoice c.2 ALLIGNED DOCUMENTATION SYSTEM (ADS) Based on UN layout key and the experience gained in many other developed countries. R. 4. In order to simplify the documentation procedure. banks. Packing list d. Performa Invoice b. about 24 commercial and regulatory documents are associated with an export transaction in India . The documents are aligned to one another in such a way that the common items of information are given the same relative slots in each of the documents included in the system. export promotion councils.I etc. Shipping instructions e. Certification of Inspection/Quality Control INSTITUTE OF MANAGEMENT STUDIES Page 53 . Inspection agencies. This makes it possible to prepare one “Master Document” embodying the information common to all the documents included in the aligned series and to run off all the aligned documents from the same Master Document with the help of suitable masking and reproduction techniques. The use of masks is intended to blank out such information as is not required in a particular document. They include 15 important commercial documents and are discussed as under: a.3 Standardized and aligned pre-shipment export documents On an average. a new Aligned Documentation has been developed. 4. carriers.

Application for certificate of origin l.4 Regulatory Documents Regulatory Pre-shipment export documents are those. Certificate of insurance h. Shipping bill/for export Customs dept. Certificate of origin m. B/L/ Combined Transport Document k. Shipping order i. The commercial documents are those which. Shipment advice o. Bill of exchange n. forex. by custom or trade are required for effecting physical transfer of goods and their “title’ from the exporter to the importer and the realization of export sale proceeds. AR4-A/AR-4 form -doc. Insurance declaration g. which have been prescribed by different agencies in compliance of the requirements of various rules. b. Mate receipt j. 4. Gate pass-1/gate pass-2 prescribed by: Central excise Dept.2010 f. Letter to the bank for collection/negotiation. On an average there are 9 regulatory documents. customs etc…. For export of goods ex bond -doFor export of duty free goods -doFor export of dutiable goods -doFor export of goods under claim for -doINSTITUTE OF MANAGEMENT STUDIES Page 54 . and regulations under relevant laws governing export trade such as export inspection. a.

It is generally issued by a shipping company. It is issued in terms and conditions of the contract of carriage of goods. 4. Freight payment certificate i. All the originals are duly signed by the master of ship or the agent of the steamship company and all the originals are equally valid for taking the Port trust INSTITUTE OF MANAGEMENT STUDIES Page 55 . Vehicle ticket-dog.I h.5 DOCUMENT CONNECTED WITH TRANSPORTATION OF GOODS.2010 Duty drawback d. It is not a document of title and it is not issued in a negotiable form. viz. GR/PP/SDF forms R. the PPR evidence merely the receipt of the goods to be exported to the buyer and is not a document of title. Insurance premium payment 4. A Bill of Lading is the most important document in Foreign Trade. It services as a receipt from the shipping company who undertakes to deliver the goods at agreed destination on payment of freight in a prearranged manner and also a document of title to the goods. Receipt for payment of Port charges -dof. B/L is generally made out in the sets of two or three originals. 4. Generally AWB is issued in three copies.5 (b) Postal Parcel Receipt (PPR). Like the AWB.B. 4. for the consignee and for the consignor.5 (c) Bill of Lading (B/L). for the carrier.5 (a) Air Way Bill (AWB) Air consignment Note. Export application/Dock Challan Port trust copy of shipping bill e. The receipt issued by an airline or its agent for the carriage of goods is called airway bill or air consignment note.

under one transport document called CTD. It contains the name of the buyer and his address. INSTITUTE OF MANAGEMENT STUDIES Page 56 .6 (a) Performa Invoice As the name denotes. date. It is the statement of account of sale rendered by the seller to the buyer and is prepared on seller’s letterhead or in the prescribed form on A-4 size paper. reference number.298) considering the international practices. quantity. total value of goods. B/L is nor a negotiable instrument in terms of Negotiable instrument Act. However. 4. from ICD to destination. 4. These dry depots have made it possible to cover the entire movement of goods. it is an invoice in established Performa. payment of which is not intended.2010 delivery of goods and once one original copy is utilized the other originals become full and void. as Performa invoice together with an offer. These invoices are used for obtaining financial assistance like Packing Credit from a banking institution. it is a practice to call the original copies as negotiable copies.6 (b) Commercial Invoice It is the most widely used invoice in commercial transactions. Rules governing combined transport document are designed by International Chamber of Commerce (Brochure No. Etc.5 (d) Combined Transport Document (CTD) With the introduction of multimode movement of goods in container on the basis of single contract from and to interior of the country. government has established Inland Container Depot (ICDs) at selected center. 4. acceptance on which will form a legal contract.6 COMMERCIAL DOCUMENTS. marks description of goods unit price. 4. terms of payment/C & B/L no.

source etc. 4. 4. Canada etc. etc…a consul for invoice is required to be prepared in a prescribed format and it should be signed/certified by the consul of the importing country located in the country of export.7 (b) Broker’s Certificate INSTITUTE OF MANAGEMENT STUDIES Page 57 .2010 4. The main purpose of a consular invoice is to enable the importer’s country to collect accurate and authenticated information about the value. This is analogous to cover note issued by the broker. It is generally made out on a special form prescribed by the custom authorities of the importing country and helps for allowing entry of goods in the importing country at preferential tariff rates.6 (e) Legalized/ Visited Invoice These are the invoices sworn for their genuineness by the seller as being correct before the appropriate consulate/chamber of commerce/embassy as the case may be and they bear the stamp and authentication of the consulate/chapter of commerce/embassy as being in order. of the import for assessing import duties and for other statistics purposes. volume. quality. 4. USA. The invoice forms are generally available at the consular office of the importing country and are required to be signed and with ensued after duly filling the same. They collect a nominal charge from the seller for doing this.6 (d) Customs Invoice Countries like USA.7 (a) Letter of insurance. 4. need custom’s invoice.7 INSURANCE DOCUMENTS 4.6 (c) Consular Invoice A consular invoice is required by some countries like Canada. It is stated that particular subject are placed under insurance and certificate/policy of insurance will be issued later on.

and the insurance policies are issued accordingly. The coverage of risks is classified into categories like A. A specific policy covers specific shipments and such policy is readily available for submitting with the export documents. It gives full details of all the risks covered. This is a basic legal document-evidencing contract of insurance between the insurer and insured. Marine or transit insurance policies can be assigned by the insured merely by endorsement and delivery.7 (d) Insurance Policy. destination. as broker acts for the insured and cannot compel insurer to accept the proposal of insurance. As per this policy the insurer undertakes to insure all the shipments for which the details are already intimated to the insurer. B.7 (c) Insurance Certificates. 4. open policy or cover. The relevant details like name of the vessel. is therefore required to be declared subsequently and endorse in the policy. 4. C etc. description of cargo etc. specific policy etc… A floating policy is a contract of insurance for covering a number of shipments. The insurance on “open cover” or “floating” policy covering all shipment on certain terms and subjects to conditions laid down. An open cover /policy is valid for a given period of time or permanently open. the details of which are not finalized when the contract of insurance is conclude.2010 This is also not acceptable as broker issues the same. Unless the insurance certificate gives details of the conditions of cover it is not so much value to third party who negotiate the shipping documents.8 FINANCIAL DOCUMENTS INSTITUTE OF MANAGEMENT STUDIES Page 58 . 4. Insurance policies are issued in different forms like floating policy.

If no such documents are attached with the bill. PPR etc… together with documents like drafts. 4. AWB.” A bill of exchange contains an order from the Creditor to the debtor to pay a specific amount to a person mentioned therein. D/P or D/A. invoices. When any of the drafts is paid on presentation it is called an “at sight/on demand draft and if accepted when it is a usance draft by the drawer. then it is called as a clean bill. Depending upon the tender of the bill i. Drafts are mainly make in two sets with all other concerned documents and mailed to the foreign correspondent through an authorized dealer for presentation to the drawer/importer.8 (c) Stamp Duty INSTITUTE OF MANAGEMENT STUDIES Page 59 .8 (a) Draft It is bill of exchange. directing a certain person to pay a certain sum of money only on or to the order of a person to the bearer of the instrument. 1881 a bill of exchange is “an instrument in writing containing an unconditional order. which may either “at sight/on demand”. The person who is entitled to receive payment is called “payee”.8 (b) Clean Bill and Documentary Bill When the drawer of a bill encloses with it a document of title to goods or any other equivalent document it is called a documentary bill. The make of the bill is called the “drawer” the person who is directed to pay is called the “drawer”. documents like full set of B/L. In an export transaction it is advisable that an exporter draws a draft. In an export transaction the exporter delivers to the banker. signed by the maker. According to section 5 of the Negotiable Instruments Act. the documents are delivered to the drawer against payment or acceptance. 4.2010 4. packing list etc… for presentment to the drawer.e. then the second draft becomes null and void.

When the drawer of a bill signified his consent to the drawer’s order in the bill of writing his name across the face of the bill with or without the word “accepted” the bill is said to be accepted.8 (e) Noting/Protesting of Foreign Bills At the time the bills are forwarded to the exporter’s bank. 4. The foreign correspondent bank usually advises the due date to the exporter through his banker in India . Unlike in most of the foreign countries. The drawer/holder for value may cause the dishonor to be noted by a Notary Public on the instrument or upon a paper attached thereto or partly upon each.8 (d) Acceptance of Bill A bill of exchange payable on demand or at sight or on a fixed date does not need acceptance and hence presentment for acceptance is unnecessary unless such presentation is specifically desired. no stamp duty is applicable to drafts drawn at sight/demand bills. Drafts drawn on usance basis require to be adequately stamped. 4. I. it is advisable to provide the bank with clear instructions/steps to be taken in case the bills are dishonored on presentation or maturity as the case may be. Acceptance of a bill. Usually the notary makes the following observations: INSTITUTE OF MANAGEMENT STUDIES Page 60 . therefore. Stamp duty is the same no matter whether the bills is drawn or negotiated in India . The notary formally makes a demand of acceptance or payment upon the acceptor or drawer and on his refusal to do so notes the same on the bill.2010 All drafts are drawn on the drawer. Means that the drawer gives his consent to pay the amount mentioned therein on the due date/maturity date.e. the Indian stamp Act does not required the sight drafts to be “stamped”. Thus “Noting” means the fact that the bill has been dishonored is recorded on it and puts the drawer/holder for value on a higher pedestal in the eyes of law. This is done within a reasonable time after dishonor. A draft payable after sight must be presented for acceptance since the maturity date of the bill can only be determined after such acceptance.

The date of dishonor. A protest is a certificate issued by the Notary Public attesting that the bill has been dishonored and will usually contain: a. There may be a preferential tariff in favour of goods from particular countries and therefore. b. c. which is not eligible for the preference. if any assigned for such dishonor. c. b. will give this certificate… Who Issue them against payment or nominal fees after being satisfied of the origin of goods. A statement that the Notary Public and the reason for dishonor demanded acceptance or payment from the acceptor or drawee. The place and time of dishonor of the bill d. for it is to be placed as documentary evidence in the court of law. 4.9 (a) Certificate of Origin Generally the importer to furnish to him a certificate stating that the goods are of his country’s origin will call upon an exporter. 4.9 THIRD PARTY DOCUMENTS 4. The name of the person for whom and against whom the instrument has been protested. the Chamber of Commerce.2010 a. In other words the observations made thereon by the notary will be taken at face value. Handicrafts Board. The foreign bills must. The reason. The signature of the Notary Public. thereafter Protested for dishonor. Independent bodies like.9 (b) Black List Certificate INSTITUTE OF MANAGEMENT STUDIES Page 61 . The Notary ’s charges. it has to be ensured that the exporter who has brought them into his own country from some other place of origin has not reshipped the goods. Export inspection Council etc.

2010 This is to certify that the ship/aircraft carrying the goods has not touched a particular country on its journey or that the goods are not of a particular country. livestock etc. It shows item-by-item the contents of the containers or parcels shipped to enable the buyer/receiver of the shipment to check the shipment. This certificate is usually called where countries have strained political relations with another. 4. and Central Silk Board etc. 4.9 (g) Health/Veterinary/Sanitary Certificate When the goods imported are foodstuffs. 4. indicating that goods have been inspected before some countries need under some contracts or shipment. 4. Certificate of shipping agent that a certain lot of goods have been shipped.9 (e) Certificate of Inspection Inspection certificate. marine products. This INSTITUTE OF MANAGEMENT STUDIES Page 62 .9 (d) Manufacturer’s/Supplier’s quality/Inspection Certificate This is a certificate to the effect that the goods.9 (c) Packing List This document showing details of goods contained in each parcel/shipment. which have been manufactured supplied are as per the requirement of the contract of sale. 4. a certificate from the health/veterinary/sanitary/authorities is called for.9 (f) Certificate of Analysis Certificate regarding the chemical analysis of the goods issued by a competent office. This certificate is generally required to be issued by one of the authorized independent Inspection Agencies like Export Inspection Agency. Textile Committee.

2010 is because the importer desires to know if the goods are fit for human consumption. INSTITUTE OF MANAGEMENT STUDIES Page 63 .

2010 INSTITUTE OF MANAGEMENT STUDIES Page 64 .

2010 CHAPTER N0-5 INDIAN TEXTILE INSTITUTE OF MANAGEMENT STUDIES Page 65 .

It is major business for our short term and cottage industries. In the year 2000. Cotton textile industry had begun functioning in Bombay (now Mumbai) in 1850s and the first cotton textile mill in the city was established in 1854 by a Parsi cotton merchant. The textile sector has been thriving in India for decades.752 crore) and they are estimated to be at $22 billion in the year to March 2009. a decade back or so. The traditional textile industry of India had virtually decayed during the colonial regime.2010 5. 5. It is 1985 that the government announced a separate policy statement with regard to development of textile sector. Pakistan and Indonesia. India has no specialized policies to promote the textile industry. India's textile exports were valued at $18.1 INTRODUCTION Textile is the core business of India from the ling time. the industry was revived with the establishment of textile mills in Calcutta (now Kolkata) in 1818. During 2006-07. in the nineteenth century. These growth expectations run contrary to the perceived vied. National Textile Policy was announced and since then the Indian textile industry has been exhibiting a distinguished performance opening up new opportunities for the small and medium scale industries (SMEs) in the country. It is the second largest producer of textile and clothing in the world with its products being exported to over 120 countries. Parallel to these developments the Indian textile industry has witnessed over the last few years.2 HISTORY OF INDIAN TEXTILE INDUSTRY India has a diverse and rich textile tradition. Recent estimates indicate that the country's textile sector will grow faster in the coming years and contribute a lot to the our overall economy. INSTITUTE OF MANAGEMENT STUDIES Page 66 . There are different time per time revolution has been taken place in the Indian textile industry. However. textile exports of the country have also grown exponentially despite stiff competition from Asian rivals like Vietnam. that textile was a sunset industry. Indian textile industry is as old as the word textile itself. China.73 billion (Rs 84. Starting from the procurement of raw materials to the final production stage of the actual textile. This industry holds a significant position in India by providing the most basic need of Indians. the Indian textile industry works on an independent basis. Till 1985.

it is necessary to leverage our cost advantage in terms of labor costs to boost overall textiles and apparel sector in the future. ASSOCHAM’ study on textile in India. Indian INSTITUTE OF MANAGEMENT STUDIES Page 67 . AC Nielsen’s surveys are the major ones which takes into implementation and there suggestions has been deeply implemented. Thus.2010 5. Indian Textile Industry contributes about 14% of the total industrial production of India. Diesel and Liz Claiborne are stepping up their sourcing from India. Further.Simultaneously. world's cutting edge fashion brands such as Hugo Boss. the Indian Textile Industry was predominantly unorganized industry. Today. the textile sector registered 50 per cent increase in investment during 2008-09 to US$ 10. Starting from the procurement of raw materials to the final production stage of the actual textile. while 37 percent of US textile and apparel imports constituted imports of manmade fiber in 2004. 5.4 OVERVIEW OF INDIAN TEXTILE INDUSTRY Indian textile industry is the country’s leading profit gainer industry. its contribution to the gross domestic product of India is around 3% and the numbers are steadily increasing. The opening up of Indian economy post 1990s led to a stupendous growth of this industry.46 billion from US$ 6. However this has been at a slower rate as compared to China (59 per cent) during the same period. It is a very old and traditional business of India. The textile industry has attracted foreign direct investment (FDI) worth US$ 677 million from April 2000 to March 2009. the Indian sourcing market is estimated to grow at an annual average rate of 12 per cent from an expected market size of US$ 22 billion-US$ 25 billion in 2008 to US$ 35 billion-US$ 37 billion by 2011. According to the report given by ASSOCHAM. Grading and Research Service. Indian economy is largely dependent on textile manufacturing and exports. Furthermore. by the Confederation of Indian Industry and Ernst & Young. India earns around 27% of the foreign exchange from exports of textiles.3 LITERATURE REVIEW The study has been take into implementation of the different research surveys of many famous national and national researchers. India’s textile and apparel exports to US during January-April 2005 have37%grown by 27 per cent as compared to the corresponding period in the previous year.57 billion in 2007-08. which accounted a meager 16 per cent of the total textiles and apparel exports in 2004. According to the Textiles and Apparel Report 2007. Until the economic liberalization of Indian economy. According to the ICRA Information. the Indian textile industry works on an independent basis. This industry holds a significant position in India by providing the most basic need of Indians. Indian needs to shift its focus to exports of textile and clothing based on manmade fibers. Indian Textile Industry is one of the largest textile industries in the world.

who had procured textile worth $ 200 million last year. quality and cost It’s not just the present that is shinning like a bright start but also the future. intends to procure $ 3 billion worth of textile this year. Flexibility of the readymade garment industry in terms of sizes. fabric variety. In order to attain this target Indian textile industry has already started improving their design skills. Availability of all kinds of fibers like silk. In fact. This will eventually make a profit by 300%. Woolen Textile b. INSTITUTE OF MANAGEMENT STUDIES Page 68 . Most of the international brands like Marks & Spencer. cotton. alluring the globe towards the ‘World of Indian textiles’. Walmart. High availability of raw materials i. Cotton Textiles c. Highly skilled economical labor. Silk Textiles d. The golden phase of the Indian textile industry has just begun where the world is chasing it from all nooks and corners. wool and even high quality synthetic fibers l. quantity. Indian textile industry concludes of various segments like: a. Gap have started procuring most of their fabrics from India. an added advantage j. Hand-Crafted Textile Like Carpets g. Man Made Textiles Indian textile industry in a very short span had made a distinct position globally.2010 Textile Industry involves around 35 million workers directly and it accounts for 21% of the total employment generated in the economy. including a combination of various fibers. Largest producer of cotton yarn contributing 25% towards worlds cotton k. Indian textile industry is all set to meet international standards and is planning to invest $5 billion in machineries very soon. as the textile export market of India is expected to reach a high of $50 billion by 2010. This has happened mainly because: h. Readymade Garments e. JC penny. Jute And Coir f.

It has capacity of more than 6 million tones per year.it is a brand name of Textiles all over the world.Arvind Mills is India’s largest Textile Mill. It has large production in denim. (Textiles) Garware Polyester (Diversified) Banswara Syntex (Composite) National Rayon Corp. Cotton & Man-made Fiber) Oswal Knit India (Woolen Wear) Niryat Sam Apparels (Apparel) Filaments India Ltd. (Home furnishing and Suit Fabrics) Bombay Dyeing Ltd. (Manmade Fiber) Nova Petrochemicals (Man-made Fiber) S. Its sales are around US$ 300millions. It is planning to double its fabric processing capacity to 50 million meters. (Threads) Indian Rayon (Man-Made Fiber) Alok Textiles (Cotton and Man-made Fiber Textiles) Sharda Textile Mills (Man-made Fiber) Birla Group Dormeuil Birla VXL Ltd. Target and Tommy Hilfiger. Stone & Wsebster. It is an approved supplier to global retailers like GaP. cotton & Man-made) Morarjee Mills (Fully integrated Composite Mill) Indo Rama (Cotton and Man-made) GTN Textiles (Cotton Yarn and Knit Fabrics) Ginni Filaments Ltd. (Man-made fiber) GSL India Ltd. It has joint venture partners like. syntax and thread) Ashima Syntex (Man-made Fiber) KG Denim (Fabrics) Sanghi Polyesters Ltd. Sinco (Italy) etc. (Fully integrated woolen textiles) Gokuldas Images (Diversified) Hanil Era Textiles (Yarn. weaving and processing segment of the industry. •Raymond’s:. It specialized in the diversified woolen garments. Vardhaman SpinningVardhman deals in spinning. It also looking to also expanding denim capacity and to become second largest denim player in India. It is expanding its products through the organized retail stores and showrooms.2010 5. (Manmade Textiles) The industry has INSTITUTE OF MANAGEMENT STUDIES Page 69 . (Yarn and Fasbric) LNJ Bhilwara Group (Diversified and vertically integrated denim producer with spinning and weaving capacity) Mafatlal Textiles (Fully integrated Composite Mill) Modern Group (Diversified. (Composite and fully integrated) Rajasthan Petro synthetics (Diversified) BSL Ltd. producer of denim.4(a) MAJOR TEXTILE COMPANIES OF INDIA The major textile companies of India are as follows :•Arvind Mills: . Its annual sales are around US$ 300 millions •Reliance Textiles:-Reliance Textiles is one of the major Textile Company that is in business of fully integrated manmade fiber. It is now adding value by manufacturing denim apparel. Its presence in retail will be big positive in future. shirting and knitted garments. Kumar Synfabs Ltd. Its sales are little over US$ 120 millions  Welspun India (Manufactures terry towels) Century Textiles (Composite mill. DuPont.

with players from both sectors often grouped together in export oriented clusters. Palli.2010 several segments such as hosiery and ready-made garments and is divided into the organised and the un-organised sector. 3800 and 4200 million kg? EXPORTS The Indian textile industry is estimated to be around US$ 52 billion and is likely to reach US$ 115 billion by 2012. 5. 3600. Sanganer. • India accounts for 12 per cent of the world's production of textile fibers and yarn. Jetpur.6 billion to US$ 60 billion by 2012. after China. 5. • The country has the highest loom capacity. The domestic market is likely to increase from US$ 34. and accounts for 23 per cent of the world's spindle capacity. Panipat. INSTITUTE OF MANAGEMENT STUDIES Page 70 . Some of the important textile clusters are based in places such as Bhilwara.25 billion in 2007–08. • In terms of spindle age. including handlooms. It is expected that India's share of exports to the world would also increase from the current 4 per cent to around 7 per cent during this period. Sambhalpur. the Indian textile industry is ranked second.6 India’s textile export (US $ MILLION) Some Facts • India is the largest exporter of yarn in the international market and has a share of 25 per cent in world cotton yarn exports. In the year 2003-04 the total production of yarn in India was 2900 million kg. Mysore and Bhiwandi. Surat. India's textile exports have shot up from US$ 18.5 THE TOTAL PRODUCTION OF YARN IN INDIA The production of yarn shows a increasing trend from last decade. 3300.71 billion in 2006–07 to US$ 20. registering a growth of over 8 per cent. Which has been continuously increasing to 3100(2004-05). Jodhpur. with a share of 61 per cent in world loom age.

7 MAJOR TEXTILE EXPORT PROMOTION COUNCILS OF INDIA The major export promotion councils of India are given as follows :-a) Apparel Export Promotion Council b) Cotton Textile Export Promotion Council c) Handloom Export Promotion Council d) Indian Silk Export Promotion Council e) Apparel Export Promotion Council :. INSTITUTE OF MANAGEMENT STUDIES Page 71 . according to the Apparel Export Promotion Council.2010 • India is the largest producer of jute in the world. Canada. Govt. Saudi Arabia. tusar.6 per cent share. China. • It is the second largest producer of silk and the only country to produce all four varieties of silk –mulberry.71 million in 2007–08. AT Kearney's 'Retail Apparel Index' ranks India as the third most attractive market destinations for apparel retailers. • India is the fifth largest producer of synthetic fibers/yarn. the US is the single largest buyer of Indian textiles and apparel with 19 per cent and 32. Bangladesh. accounting for almost 45 per cent of total textile exports and 8. Another segment in which India has excelled in the export market is carpets. Indian textiles. In fact. Turkey and Japan. respectively. Exports of carpets have increased from US$ 654.eri and muga. They are expected to touch US$ 14. of India. This segment has benefitted significantly with the termination of the Multi-Fibre Arrangement (MFA) in January 2005. •Leads trade delegations to potential markets globally.APEC is a nodal agency sponsored by the ministry of Textile. reflecting the huge opportunity in this segment. and with the continuing boom in consumer demand is estimated to grow at the rate of 12–15 per cent annually. It performs the following functions:•Monitors garment exports quotas and promotions of exports of readymade garments of India. Significantly. •Continuously involves in the task of promoting exports by organizing buyer-seller meets. RMG exports from India were worth US$ 8. •Participates in specialized international fairs.51 billion in FY 2008. 5. Readymade garments (RMG) are the largest export segment. It accounts for about 10 per cent of the US$ 37 billion Indian retail market. Europe continues to be India's major export market with 22 per cent share in textiles and 43 per cent in apparel.32 million in 2004–05 to US$ 806. apparel is the second largest retail category in India.2 per cent of India's total exports.5 billion by 2009–10 with a cumulative annual growth of 18 to 20 per cent. Other significant countries in the export list include the UAE. handlooms and handicrafts are exported to more than a 100 countries.

enhancement of productivity and quality. Its activities includes •Acting as an international face of Indian Textile Exports. Of this. carpets and floor covering etc. In furtherance of these objectives. Cotton Textile Export Promotion Council: . The primary aim of the policy for this segment will be to improve production. Though cotton is expected to continue to be the dominant fiber. integrated textile complexes and textile processing units in different parts of the country and would review and revitalize the working of the TRAs (Textile Research Associations) to focus research on industry needs. farmers and industry associations will be actively involved in the implementation of this Mission. Handloom Export Promotion Council :-It is a statutory body. home furnishings.2010 •Organized the Indian International Garment Fair biannually. Cotton growing States. It’s function is to promote the exports of all handloom products like fabrics. the share of garments would be U.S.It is the nodal agency for promotion of silk exports from India. $11 billion to U. Sect oral Initiatives Within the framework of the new Policy.8 INDIAN TEXTILE POLICY 2000 Highlights of the National Textile Policy 2000.Cotton Textile Export Promotion council is an autonomous. Consist of more than 1200 silk exporters as members 5. Ministry of Textiles. Ministry of Agriculture.S. the strategic thrust is to be placed on technological up gradation. INSTITUTE OF MANAGEMENT STUDIES Page 72 . with the objective of facilitating the industry to attain and sustain a pre-eminent global standing in the manufacture and export of clothing. non-profit export promotion body. $25 billion’s The policy provides for setting up a venture capital fund for tapping knowledgebased entrepreneurs and assisting the private sector to set up specialized financial arrangements to fund the diverse needs of the textile industry. The new policy would also encourage the private sector to set up world class. product diversification. environment-friendly. $50 billion by 2010. The Technology Mission on Cotton will be the instrument for achieving these parameters. productivity and quality of raw materials at reasonable prices for the industry.Indian Silk Export Promotion Council :. the Government would endeavor to achieve the target of textile and apparel exports from the present level of U.S. •Collection and dissemination of information. the following sector specific initiatives will be taken: RAW MATERIALS The thrust will be on improving the availability. Cotton. Through NTP 2000. and strengthening the raw material base in the country. special attention will be given to bring the balance between cotton and non-cotton fibers closer to international levels. and stabilize prices. productivity and quality. The Government of India recently announced the new National Textile Policy (NTP) 2000.

2010 Silk Focus will be on achieving international standards in all varieties of silk. attempts would be made to revive the jute economy through supportive measures covering research and development. Clothing the role of this sector is poised for radical change in view of the transformation in the international trading environment brought about by the rules and regulations of the WTO. Spinning Sector the NTP seeks to continue efforts to modernize and INSTITUTE OF MANAGEMENT STUDIES Page 73 . • Take up an integrated development program for angora wool. Steps will include: • Improving Research & Development and effective transfer of technology at all stages. Jute Industry In the jute sector. • Reviewing the import policy periodically for raw silk.• Improve retting practices to get better quality fiber. The industry will be restructured as follows: • Garment industry will be taken out of the SSI reservation list. the following measures will be initiated: • Take up collaborative research projects with the leading wool producing countries of the world. • Joint ventures and strategic alliances with leading world manufacturers will be promoted. taking into account the balanced interests of the Seri culturists as well as the export manufacturer’s. creation of infrastructure for storage and marketing of raw jute. • Transfer cost effective technologies to the farmers and create strong market linkages. • Schemes with necessary infrastructural facilities for the establishment of textile/apparel parks will be designed with the active involvement of state governments. • Increasing the production of non-mulberry varieties of silk. technology up gradation. • Promote private sector linkages for marketing of wool. • Encouraging clustering of activities of reeling and weaving and strengthening linkages between producers and industry. Jute A Technology Mission on Jute will be launched to achieve the following objectives: • Develop high yielding seeds to improve productivity and acceptability in markets. Ê Wool In order to augment availability of quality wool. • Encourage private breeding farms to increase productivity. financial institutions and the private sector. and product and market development activities for jute and diversified jute products.

enhancement of efficiency. for better working environment and social security of weavers • Effective support systems in R&D. openness to innovation. For this purpose. design inputs. However. with focus on new products and retailing strategies • Creation of awareness and supportive measures for application of IT for up gradation of technology. • Liberalize and encourage export of cotton yarn. fragmented structure. Non-viable mills will be closed down with provision for an adequate safety-net for workers and employees. low level of capital investment and immense possibilities for fabric design. its growth has been stunted by technological obsolescence. Organized Mill Industry Efforts will be made to restore the organized mill industry to its position of pre-eminence to meet international demand for high value and large volume products. The Government will continue to accord priority to this sector. It provides livelihood to India’s millions of weavers and crafts-persons. various options for strategic partnerships or privatization will be explored. The focus will therefore be on modernization of power loom service centre and testing facilities. better working environment and HRD. productivity and quality. and clustering of facilities to achieve optimum levels of production. Power loom Industry The power loom sector occupies a pivotal position in the Indian textile industry. The industry has not only survived but also grown over the decades due to its inherent strengths like flexibility of production in small quantities. and proposes to take the following steps. Measures will include the following:• Training modules for weavers engaged in the production of low value added items with the objective of upgrading their skills to enable them to find alternate employment in the textile or other allied sector • Comprehensive welfare measures in close cooperation with the State Governments. low productivity and low-end quality products. Handloom Industry The handloom sector is known for its heritage and the tradition of excellent craftsmanship. skill up gradation INSTITUTE OF MANAGEMENT STUDIES Page 74 . Steps would be taken to promote and develop its exclusiveness for the global market. As regards the unviable Public Sector Undertakings (PSUs). in cotton spinning as well as in the worsted woolen sectors: • Encourage the spinning sector to continue to modernize. The earlier policy of not nationalizing sick units will be continued.2010 upgrade technology to international levels. the following measures will be initiated • Integration of production efforts on technology driven lines • Encouragement for setting up large integrated textile complexes • Strategic alliances with international textile majors.

with insistence on compliance with the provisions of the Child Labor (Prohibition and Regulation) Act. the present package of schemes for production of value added fabrics will be streamlined. In this segment. the growth of which has accelerated during the last decade primarily because of expansion of hosiery into global fashion knitwear. the following measures will be taken: • Review of the Policy of SSI Reservation for this sector • Encouraging technology up gradation and expansion of capacity • Introduction of support systems for commercial intelligence. The SWOT analysis of the industry is given as follows:- a. STRENGTH • A large organized sector. and joint ventures will be encouraged both at the domestic and international levels. Adaptation of traditional motifs and promotion of brand image would also constitute thrust areas. innovative market oriented schemes will be introduced. • Govt. • A big production of yarn and silk. Brand equity of handlooms will also be commercially exploited to the extent possible. 1986. Encouragement will be given to the manufacture of products that conform to and bear the ‘KALEEN’ mark of standards. including indigenization of machines. INSTITUTE OF MANAGEMENT STUDIES Page 75 . and use of natural dyes. development of testing facilities. keeping in mind the needs of handloom weavers Merchandising and marketing will be central to the success of the handloom sector. design and fashion inputs Carpets While machine-made carpet manufacturing in the mill sector will be guided by the policy framework for the organized industry.2010 • Review of the Hank Yarn Obligation Order and the Reservation Orders issued under the Handloom (Reservation of Articles for Production) Act 1985.9 SWOT ANALYSIS OF INDIAN TEXTILE INDUSTRY Indian Textile Industry has done a remarkable achievement in terms of growth and earning foreign exchange. 5. Knitting Hosiery knitting. Government intervention will be in technology up gradation. is expected to expand into the apparel and home furnishing sectors. the policy for the hand knotted carpet sector will focus on sustained growth of exports and welfare of weavers and their children. • A healthy foreign market share of 25%. initiatives.

•The quality of wider-width fabrics for meeting the export demand is lacking in many respects.82 million) annually.2010 • There are well-established production bases for made-ups export as well as for domestics market. there is over-dependence on hand processors and traditional items. Availability of well engineering industries. • There are a large number of power loom owners and looms that are expanding in size over the recent period. which is acting as a disadvantage to the growth of the industry. •Upcoming commonwealth games in the country.115 crore (US$ 7. •Nearly 40 textiles parks are being set up throughout the country under the Scheme for Integrated Textile Parks (SITP). INSTITUTE OF MANAGEMENT STUDIES Page 76 . both direct and indirect for 9. b. c.502 crore (US$ 4.42 million) and create employment. •Grey fabric export is continuing to grow and will show increasing trends. • Unavailability of skilled labors.08 lakh workers and produce goods worth Rs 38. WEAKNESS • Poor supply chain management. OPPORTUNITIES •A vast rural market in the country and European market. • Poor Transport facility. • There is adequate processing facility for yarn dyeing and production of yarn dyed Fabrics. • The most serious problem of the industry is the lack of adequate processing facilities. which is stated to attract an investment of Rs 21. •The majority of the SMEs are tiny and cottage type units without sufficient capital back-up.

•Entry of global competitors INSTITUTE OF MANAGEMENT STUDIES Page 77 .2010 d. THREATS •Abolition of quota system will lead to fluctuations in the export demand •Increasing competition from other states/centers (like Surat) will be a major problem where the industries have come up afresh and are well developed and technologically more advanced.

2010 CHAPTER-6 DATA ANALYSIS INSTITUTE OF MANAGEMENT STUDIES Page 78 .

INSTITUTE OF MANAGEMENT STUDIES Page 79 .1(a) Data of the duration of purchasing habits of peoples \ Interpretation The above data shows the purchasing durations of the customer for readymade garments. 6. 15% goes twice a month and at last 8% peoples purchases once a year. during going for important parties. According to that data. 17% people goes at an interval of every two months gap.2010 6. 21% peoples goes occasionally like.during festive season. more than 40% people are looking for a fashionable verity of products. during going to tour etc. more than 35% (39 %) peoples goes once a month for purchasing readymade garments. ex. 18% customers goes for verity of colors’. 35% looking for a good brand they are the working class and higher class peoples.1 (b) Buying Habits of peoples Interpretation Day per day the buying habits’ of customers are changing.1 DATA ANALYSIS 6. At the present time.different color verity of formal shirts for offices or occasions. at last 6% customers looking for cheaper products.

2010 6. TNG. Big Bazaar. Cotton County etc. Vishal Mega Mart. INSTITUTE OF MANAGEMENT STUDIES Page 80 . 10% customers are looking foe the authorized showrooms of the company and 12% customers are looking for malls.1 (c) Buying Destinations of customers Interpretation The present customers have change their favorable place for buying products from traditional retails to modern malls. Approx 50 % customers go local stores for purchasing of readymade garments. 30% goes to organized retail stores like.

28% customers are those whose purchasing limit is between 1000to 1500. 6. it is only due to the corporate dress code.51 (e) Purpose of purchasing of readymade garments Interpretation Basically. and 15% for party wear. 20% for daily use. 30% garments are sell for general purpose.1(d) Purchasing Limit of Customers Interpretation At the present time. the main purpose of purchasing of readymade garments are for occasions or general purpose but from the last decade. The 19% peoples have a purchasing limit of below 1000 they are the people of semi urban areas. INSTITUTE OF MANAGEMENT STUDIES Page 81 . 1500 to 3000 for a readymade garment. the average customer wishes to pay Rs. it is found that more than 35% customers are purchasing garments for office use.2010 6.

•35% customers influenced by advertisements. •20% customers influenced by other source of reference.1 (f) References for purchase Interpretation •41% customers influenced by their friends and other relatives. •4% customers influenced by their family members.2010 6. INSTITUTE OF MANAGEMENT STUDIES Page 82 .

Raymond’s with 15% and Birla Groups occupies 11% market share in offering attractive schemes. Other INSTITUTE OF MANAGEMENT STUDIES Page 83 . Raymond’s occupied third place with a market share of 18% of shares. etc.1 (g) Companies with most Festival offer Interpretation At the modern time the main promotion strategy of maximum companies are offering attractive schemes and free offers like.2010 6. in this field Arvind Mills leads with 32% of market share. Birla Groups has also occupies a healthy market share of 16% with the entry of some international brands like Van Husain. buy one get two free. The other MNCs and some local companies maintain a healthy share of 20% in issuing attractive schemes. 6. Reliance textiles follow with 18%.1 (h) Market share of major textile company Interpretation Arvind mills leads the market with a capitalization of 39%. it followed by Reliance Textiles with 20%.

2010 players like Bombay Dyeing. On the basis of their choices we have got the following data: Bar Chart for analysis Conclusion In this analysis. we found that majority of people want quality product as the people has given highest rating to quality where as looks and price are somehow rated equally by the people INSTITUTE OF MANAGEMENT STUDIES Page 84 . Mafatlal Shutting etc occupied the rest of 7% of market. 6.2 DATA ANALYSIS OF RATE PROVIDED BY THE PEOPLE ON THE BASIS OF FOLLOWING FACTORS We have asked the people to give rates to the product on the basis of following factors  PRICE  QUALITY  LOOKS.

3. quantity. SUGGESTIONS After the basis of above facts and findings I come to the following suggestions:1. KEY FINDINGS After going through the whole study I found the following key findings:1. 3. The increasing income level of people supports the growth of the industry. INSTITUTE OF MANAGEMENT STUDIES Page 85 . 2. has to do a hard work on it. There is a high availability of raw materials 8. Largest producer of cotton yarn contributing 25% towards world’s cotton 10. SUGGESTIONS AND CONCLUSION a. 5. Need of import and implement of high quality technology. 7.2010 6. The growth rate of this sector is increasing much higher with a healthy rate of 20%. There is a need to some more liberalization of export tariffs. The organized textile sector is more develop than the unorganized sector. 4. quality and cost b.3 FINDINGS. Low level of technology and poor supply chain management are major resistance in the development of the industry. 6. cotton. 2. fabric variety. It contains a major part in industrial production and export of country. Highly skilled economical labor. 4. There is a need to improve our supply chain or logistic management. Govt. has to provide some more financial assistance to the domestic textile companies. The Indian Textile Sector is an emerging sector of India. Availability of all kinds of fibers like silk. So the major companies and the govt. Flexibility of the readymade garment industry in terms of sizes. an added advantage 9. wool and even high quality synthetic fibers 11.

Build up world class state of the art manufacturing capacities to attain and sustain predominant global standing in manufacture and export of textiles and clothing. c. yarn. The all promotion councils have to provide technical and management assistance to the domestic industries.2010 5. synthetic etc. people firstly prefer for good quality and comparatively low prices Textile garments then they emphasized on qualities and durability BIBILOGRAPHY INSTITUTE OF MANAGEMENT STUDIES Page 86 . Except it. 7. Proper implementation of eleventh five year plan. Because of applying innovative ideas such as providing various facilities. launching new schemes & offers Arvind Mill’s garments are more used by people as compared to other one. CONCLUSION As we analyzed the various data based on questionnaire. a fact has came into light that Arvind Mills is the most known and popular Brand in context of major Textile giant followed by Reliance and Birla Group. Need to improve the quality of raw materials like cotton. 8. 6.

C R KOTHAR WEBSITE ADDRESS: -www.com www.com -www.com .hepcindia.aepcindia.com . INSTITUTE OF MANAGEMENT STUDIES Page 87 .moneycontrol. These reference books are: RESEARCH METHODLOGY .wikipedia.2010 Some books helped us to have an idea about research methodology and preparing questionnaire.com .NARESH K MALHOTRA RESEARCH METHODLOGY .www.www.indiancarpet..com  MAGAZINE -Textile policy 2000 QUESTIONNAIRE Name:-…………………………………….www.google.

Address:-…………………………………… Occupation:-……………….. Which factor mostly affects your decision while purchasing any readymade garments? A) FRIENDS C) PARENTS B) ADVERTISEMENT D) OTHERS Page 88 INSTITUTE OF MANAGEMENT STUDIES ... 3000 B) Between 1000 to 1500 D) Above 3000 6. What is the purpose of your purchasing of garments? A) For Party wear C) For daily use B) For office purpose D) General purpose 7... Which kind of garments you like to prefer? A) Branded______. Where you go for shopping of garments? A) Malls _______ C) Company Showrooms_______ B) Retail stores ______ C) Local stores ______.. 1500 to Rs. C) Color Varity ______ 4.. B) Twice a month_____ D) Once a year _______ 5.. 3... How many times you go to store for purchase readymade garments? A) Once a month______ C) Every two months gap______ E) Occasionally _______...2010 Age:-……………………………………….... Contract No. B) Cheaper _______ D) Fashionable ______.... 1. 1000 C) Rs...... What is your total monthly income? A) Below 5000 _______ B) 5000 to 10000_______ C) 10000 to 20000 _______ D) Above 25000 _______ 2... What is your minimum purchasing limit of a readymade garment? A) Below Rs.:-……………………………….

...............Which company provides you most festival offers? A) Arvind Mills C) Raymond’s 9...................................... B) Reliance Textiles D) Birla Group B) Reliance D) Pape Jeans INSTITUTE OF MANAGEMENT STUDIES Page 89 ....2010 8................................ ..Which brand you prefer much more? A) Arvind mills C) Raymond’s E) Others 10............Suggestion………………………………………………………………………….............

a fact has came into light that Arvind Mills is the most known and popular Brand in context of major Textile giant followed by Reliance and Birla Group. launching new schemes & offers Arvind Mill¶s garments are more used by people as compared to other one. 6. Govt. Need to improve the quality of raw materials like cotton. c. synthetic etc. CONCLUSION As we analyzed the various data based on questionnaire. The all promotion councils have to provide technical and management assistance to the domestic industries. people firstly prefer for good quality and comparatively low prices Textile garments then they emphasized on qualities and durability INSTITUTE OF MANAGEMENT STUDIES Page 90 . 7. 8. has to provide some more financial assistance to the domestic textile companies. Proper implementation of eleventh five year plan. 5.2010 4. Build up world class state of the art manufacturing capacities to attain and sustain predominant global standing in manufacture and export of textiles and clothing. Because of applying innovative ideas such as providing various facilities. yarn. Except it.

NARESH K MALHOTRA RESEARCH METHODLOGY .com .wikipedia.com -www.aepcindia.2010 BIBILOGRAPHY Some books helped us to have an idea about research methodology and preparing questionnaire.com .google.C R KOTHAR WEBSITE ADDRESS: -www.com www.www.indiancarpet.com .moneycontrol.www.www.hepcindia.com MAGAZINE -Textile policy 2000 INSTITUTE OF MANAGEMENT STUDIES Page 91 . These reference books are: RESEARCH METHODLOGY .

.. Contract No. Where you go for shopping of garments? A) Malls _______ C) Company Showrooms_______ B) Retail stores ______ C) Local stores ______.. How many times you go to store for purchase readymade garments? A) Once a month______ C) Every two months gap______ E) Occasionally _______..2010 QUESTIONNAIRE Name:-««««««««««««««....:-««««««««««««.. What is your total monthly income? A) Below 5000 _______ B) 5000 to 10000_______ C) 10000 to 20000 _______ D) Above 25000 _______ 2.. B) Cheaper _______ D) Fashionable ______... 1... 1000 C) Rs. What is your minimum purchasing limit of a readymade garment? A) Below Rs... Which kind of garments you like to prefer? A) Branded______. B) Twice a month_____ D) Once a year _______ 5. What is the purpose of your purchasing of garments? A) For Party wear C) For daily use INSTITUTE OF MANAGEMENT STUDIES B) For office purpose D) General purpose Page 92 . 3.... 3000 B) Between 1000 to 1500 D) Above 3000 6.... C) Color Varity ______ 4...... 1500 to Rs. Age:-«««««««««««««««. Address:-«««««««««««««« Occupation:-««««««.

.....................Which brand you prefer much more? A) Arvind mills C) Raymond¶s E) Others 10............. B) Reliance Textiles D) Birla Group B) Reliance D) Pape Jeans INSTITUTE OF MANAGEMENT STUDIES Page 93 .................................... .......................Suggestion««««««««««««««««««««««««««««..Which company provides you most festival offers? A) Arvind Mills C) Raymond¶s 9............. Which factor mostly affects your decision while purchasing any readymade garments? A) FRIENDS C) PARENTS B) ADVERTISEMENT D) OTHERS 8........2010 7.

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