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SUMMER

INTERNSHIP
International Business

Nitesh Gowania
FLEXITUFF INTERNATIONAL LIMITED

CONTENT

 Company Certificate
 Declaration
 Acknowledgement
 Executive Summary
 Introduction
Industry Profile
Company Profile
Structure of Organisation
 Major Learning
 SWOT Analysis of Company
 Recommendations
 Reference

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Table of Content

1. Introduction
1.1 Industry Introduction 8
1.2 Company Profile 10
1.3 Product Range 11
1.4 Process Flow Diagram 13

2. Major Learning
2.2 International Marketing Process 14
2.3 Documentation Process 16
2.4 Logistics 20
2.4 The Delivery Schedule Concern 21
3. SWOT Analysis 22
4. Recommendation 24
5. References 25

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CERTIFICATE

This is to certify that the Summer Training Report entitled “EXPORT


PROCEDURE & DOCUMENTATION”, in partial fulfilment of the
requirements for the awardof the Degree of Master Of Business Administration
(International Business)is a record of original trainingundergone by Nitesh
Gowaniaduring the month of June 2015of his study in the Department Of
Export, Flexituff International Ltd, Pithampur (S.E.Z.), Dist. Dhar (M.P.)
India under my supervision.

Place: Indore Mr.Sushil Gupta Sir


Date: 12/08/2015 (DGM) ExportMarketing

Countersigned

Mr.Akhilesh Agnihotri Sir


Manager (System & Training)

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DECLARATION

I hereby declare that the following summer training related “International


Marketing” is an authentic work done by me as a part of my study in “Flexituff
International Limited, Pithampur Indore”.
I under took the training as a part of my course curriculum of MBA (IB)
program at SOE INDORE.

Nitesh Gowania
MBA (IB)

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EXECUTIVE SUMMARY

This is an attempt to know how the theories can be applied to practical situation.
As a student of MBA(IB), it is a part of study for everyone to undergo summer
project at some good institute or organization. So for this purpose, I got the
opportunity of summer training at Flexituff International Ltd.

In the first part of the project report, the general information of the company
and industry has been collected. Information is gathered through the primary
and secondary source as well.

In the second part of the report, it contains the major leaning aspect of the
internship. Which are mainly International Marketing Process, Documentation
and Logistics.

In the next part of the report analysis has been done through Strategic Analysis
Tool (SWOT Analysis). That is primarily focusing on its Strength, Weakness,
Opportunity and Threat.

Last part is about the Recommendation which are given on the basis of the
analysis and the experience gained from the internship.

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ACKNOWLEDGEMENT

The journey started as a student stepping towards the professional life with the
aim in mind to learn the practical aspect of life ended as a memorable
experience, also help me to come off with flying colour.
My sincere thanks to Mr. Rahul Vyas for providing me this opportunity to
associate myself with Flexituff international limited, summer training.
I wish to extent my sincere regards to Mr. Atul k Londhe, Mr.Akhilesh
Agnihotri and Mr. Sushil Gupta who has been very kind me in providing
guidance and support throughout my training.
This acknowledgement would be incomplete without my sincere gratitude to all
those people who knowing or unknowing supported me for the completion of
this training.

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1. INTRODUCTION

1.1 Industry Introduction


A flexible intermediate bulk container (FIBC) or bulk bag, or big bag, is an
industrialcontainer made of flexible fabric that is designed for storing and
transporting dry, flowable products, such as sand, fertilizer, and granules of
plastic.

FIBCs are most often made of thick wovenpolyethylene or polypropylene,


either coated or uncoated, and normally measure around 110 cm or 45-48 inches
in diameter and varies in height from 100 cm up to 200 cm or 35 to 80 inches.
Its capacity is normally around 1000 kg or 2000 lbs, but the larger units can
store even more. A bulk bag designed to transport one metric ton of material,
will itself only weigh 5-7 lbs.

Transporting and loading is done on either pallets or by lifting it from the loops.
Bags are made with either one, two or four lifting loops. The single loop bag is
suitable for one man operation as there is no need for a second man to put the
loops on the loader hook. Emptying is made easy by a special opening in the
bottom such as a discharge spout, of which there are several options, or by
simply cutting it open.

The modern FIBC transports a growing figure of over ¼ billion


tonnes of product each year and is used to handle, store and move
products as varied as cereals to powdered chemicals and flour to
animal feeds. With a capacity of up to 3m³ and load capability
ranging from ½ a tonne to two tonnes FIBCs are highly cost effective,
easily recyclable and ideal for virtually any free-flowing granule,
powder, pellet or flake. FIBCs are also being developed to hold and
filter fluid products.

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The Flexible Intermediate Bulk Container popularly nomenclature as


FIBCs is said to have been first manufactured in the late 1950s / early
1960s in the United States, Europe and Japan more or less in tandem.
However FIBCs manufactured with polyolefin fabrics were
experimented in UK, Canada and the US not till the early 1970s just
about the time that the Raffia Tape and weaving technology surfaced
Globally. The growth of the flexible intermediate bulk bags that are
universally used today is however got a boost with the development
of the high strength lightweight fabric (polypropylene). India
witnessed the introduction of FIBCs during early 1990s and has since
grown to be a frontline manufacturer in the world. Although the
domestic market growth is still at a slow pace, the converting industry
has found export acceptance and nearly ninety percent of production
is exported providing the exchequer an excellent Foreign Exchange
earnings. Both the domestic demand and exports are envisaged to
record huge growth potential.

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1.2 Company Profile

FLEXITUFF INTERNATIONAL LTD.


Flexituff International is one of the leading Manufacturer & Exporters in India,
having ISO 9001-2000 Certification. Flexituff International is the Second
Largest Manufacturer of Poly-woven packing material in the world and we
process over 15000mt polymers per annum and export more than 80% of our
production, to every continent of the world.
Flexituff manufactures one of the widest ranges of FIBCs in the world.
Whatever be your packaging and bulk transportation requirement, you will find
a suitable product in our comprehensive range. Moreover, with our in house
Design & Development Centre, any packaging requirement can be aptly
developed, tested and offered as sample very quickly.
Flexituff International Limited is one of the very few fully integrated plants is
the world. Its 100% integration permits us to deliver our products in multiple
options while retaining 100% control over the manufacturing process. Needless
to say, Flexituff is fully independent from the vagaries of outsourced material or
workmanship.

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1.3 PRODUCTRANGE

• High-end Bags for food and pharma industry.


These bags are made with a high degree of precision. Precautions have to be
taken so as to avoid contamination of any kind from entering the bag. These
are normally laminated or lined bags made in a clean environment. Their
main application is in packaging of food products, pharmaceutical products.

•Sift -proof Bags.


These bags are needed for products which are powdery in nature and are
stitched in a special manner so as to block needle holes thereby preventing
sifting of powder from bags

• Baffle Bags.
These bags have baffle restraints stitched onto all corners of the bag which
prevent the bags from expanding beyond a point. Mainly these bags are used
where cargo has to be containerised or space has to be saved.

• Form-fitted Liner Bags.


These are special FIBCs where the liner of the bag is also shaped in the shape
of a bag itself. These liners can be attached to bag by various methods i.e.
gluing, tabbing or sewing. The main purpose of doing this is to avoid extra
liners inside the bag and liner easily forms the shape of the, bag rather than
creating bulges in the bag.

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• Builder Bag / Tunnel-lift.


These are used specifically in construction and aggregate industry and are
used for filling sand, construction waste or aggregates. They are simple
FIBCs and are high volume usage bags owing to nature of the industries that
they are used in. A relatively recent development in this industry has created
a tunnel-lift bag which effectively can be used without a pallet and uses body
fabric as a lifting mechanism apart from 4-loops. By avoiding the use of
pallets, it saves cost to end-users as a package.

• Single-loop Bags.
These bags are normally made for fertilizer or cement packaging. These bags
are different in construction where body-fabric of bag itself is formed into a
lifting loop
• Sling Bags.
These are mainly used to carry 20 to 40 bags of 25 to 50 kg each. Thus, it is
an outer bag which enables easy carrying or mechanical handling of small
bags without using pallets

MARKETFOOTPRINTS
GERMANY, FRANCE, IRELAND, NETHERLAND, SPAIN, MEXICO,
UNITED KINGDOM, BELGIUM, ITALY, PORTUGAL, GREECE, BRAZIL,
USA, UAE, RUSSIA, KENYA, RWANDA, CHILE, ERETRIA, CANADA,
SWITZERLAND, AUSTRALIA, ALGERIA, JAPAN, NEWZEALAND,
CHINA, EGYPT, SINGAPORE, SWEDEN, ISRAEL, AUSTRIA.

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1.4 Process Flow Diagram

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2. MAJOR LEARNING

2.1 International Marketing Process


Starting with international marketing process, firstly Customer Database is
collected through various sources like internet, national embassy, friend and
relative, telephonic conversation, advertisement, websites, etc. A data is
prepared of those customers. From this, ultimate customer is identified with
whom relations are maintained in future. Now it is the time to be introduced to
the customers may be through company’s ppt presentation through mail,
telephonic conversation, personal visit, or advertisement. Now after complete
introduction of the company to the customers, their requirement is known with
the help of inquiry. We get to know about their perception about the product,
may be in terms of size, quantity, cost, transportation, and many more.
After inquiry of the product, exact specification is asked from the client so that
further processing’s done. Specification describes about size of the product as
per the need of the client. According to these specifications prices are quoted to
them. If that client is dealing for the first time with the company, he may ask for
sample of the product, otherwise directly order can be placed.
Now internally, the process is that we get purchase order from the client based
on which work order is framed. Now as we frame work order, this is forwarded
to the production department for the production.
Now as soon the production is completed packing list is made which is the most
important document for the clearance and inspection.
After that the order is being containerized for the export and other formalities
are completed.
On other hand, at the time when the order was received we could check whether
we have that stock of that quantity and specification, so that we containerize as
soon as possible

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2.2 Documentation Process

Documents required completing an export shipment


In Indian context the total export document can be categorized as:-
 Pre-Shipment Documents
 Post-shipment Documents

Pre-Shipment Documents
The documents required up to the stage of custom clearance are known as
Pre-Shipment Documents. These documents help in getting custom
clearance as well as exemption from the payment of excise duty and octroi.
These documents should accompany the goods when they leave the factory.
In the Flexituff International limited, as the company is under SEZ also,
documents differ in that case according to situation;
Documents required under SEZ
 Invoice
 Packing list
 GR form(Guarantee Remittance Form)
 Shipping bill
Documents required under DTA
 Invoice
 Packing list
 ARE1 form(Application for removal of excisable goods)
 Shipping bill in EDI format
 GR form is known as SDF(statutory declaration form)

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Post-shipment documents
The documents required to be sent to the importer after shipment is known
as Post-Shipment documents. Dispatch can be through L/C or Non L/C. If it
is through L/C that means it is not adjustable and vice-versa.

Documents required under non L/C


 Invoice – 5 copy
 Packing list – 5 copy
 Insurance Certificate (if CIF)
 GSP (generalize system of preferences)
 Bill of lading
 Bill of exchange
 Negotiation Letter
 GR form’s copy

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Procedures for custom clearance Export

 Collecting Documents Required


All the documents which are required for custom clearance, like invoice,
packaging list, SDF form, purchase order, IEC no. etc. are collected for
further process.
 Preparing Check List for Shipping Bills; Then the CHA prepares the most
important documents, which is checklist for shipping bills.
 Noting is doneafter checking list; CHA generates the shipping bill
number from custom system.
 Documents Checked by Customs Appraiser
Custom appraiser checks all the documents whether they are as per the
custom requirement or not.
 Arrival of Goods in Godown & Registration.
After the documents checks by custom appraiser then the goods can
arrive in the export godown, they are registered here.
 Examination of Goods
Now goods are presented in front of the examining officer for
examination. He examine that the goods are as per specification declared
in the invoice and packaging list or not.
 Signature of Examining Officer and Superintendent
After examining the goods if the as per specification the examining office
signs on the documents and then finally the superintendent of custom
signs the documents.
 Let ExportsNow goods are transferred for godown for final stuffing.
 Stuffing/Lifting
Finally the goods are lifted by concor godowns and are stuffed in the
 Concerned container. Then custom line and shipping line seal are taken
from the custom department and finally the container is sealed and move
to ports or the goods are lifted by airlines and put into the concern flight.

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Bill of Lading
A bill of lading (sometimes abbreviated as B/L or BoL) is a document issued by
a carrier which details a shipment of merchandise and gives title of that
shipment to a specified party Bills of lading are one of three important
documents used in international trade to help guarantee that exporters receive
payment and importers receive merchandise.

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Commercial Invoice
A commercial invoice is a document used in foreign trade. It is used as a
customs declaration provided by the person or corporation that is exporting an
item across international borders.Although there is no standard format, the
document must include a few specific pieces of information such as the parties
involved in the shipping transaction, the goods being transported, the country of
manufacture, and the Harmonized System codes for those goods.

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Packing List
A Packing List or Shipping list is a shipping document that accompanies
delivery packages, usually inside as attached shipping pouch or inside the
package itself. It commonly includes an itemized detail of the package contents
and does not include customer pricing. It serves to inform all parties, including
transport agencies, government authorities, and customers abut the content of th
package. It helps them deal with the package accordingly.

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Certificate of Origin
A Certificate of Origin is an important international trade document attesting
that goods in a particular export shipment are wholly obtained, produced,
manufactured or processed in a particular country. Certificate of Origins also
constitute a declaration by the exporter.

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2.3 Logistics

Logistics is an art and science of managing and controlling the flow of goods,
energy, information, and other resources like products, services, and people
from the sources of production to the market place. It is difficult or nearly
impossible to accomplish any international trading, global export/import and
manufacturing without a professional logistical support. It involves the
integration of information, transportation, inventory, warehousing, material
handling and packaging. The operating responsibility of logistics is the
geographical repositioning of raw material, work in process and finished
inventories where required at the lowest cost possible.
As a responsible organisation we have been able to cater to diverse and
demanding needs of our buyer. Consistently exerting to put more on the platter.
In an effort to extent one stop FIBC solutions of our customers, we have earned
the trust and confidence of some of the most demanding corporation in the
world.
Our end to end clean room condition total adherence to good manufacturing
practices, AIB and BRC – IOP norms translate into products into product which
find welcome acceptance from most industries. Our investment in the training
and orientation of our human capital towards these norms have paid reach
dividend at aptly demonstrated in terms of customer satisfaction.

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2.4 The Delivery Schedule Concern

Flexituff has enjoyed the patronage of some of the most demanding corporation.
Over 90% of our revenues are generated from global sales, where timely
deliveries are a pre-requisite to a robust business relationship. We are now
testing a web based order tracking system to help our buyer be independently
updated of the status of their orders.
Logistics – The science of planning and carrying out the movement and
maintenance of forces. Those aspect of military operations that deal with
design, development, acquisition, storage, movement, distribution, maintenance,
evacuation and disposition of material; movement, evacuation and
hospitalisation or personnel; acquisition of construction, maintenance, operation
and disposition of facilities; and acquisition of furnishing of services.
The given data is for information only. There might be difference depending on
carrier.

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3. SWOT ANALYSIS

This comprehensive SWOT analysis of Flexituff International Ltd provides a


strategic SWOT analysis of the company's businesses and operations. The
profile shows a comprehensive view of the company's key strengths and
weaknesses and the potential opportunities and threats. This SWOT analysis of
Flexituff International Ltd can provide a competitive advantage.

Description: The market shows growth potential. Companies in this market face
an increasing demand for their products and services.

Strengths (Internal Part)

Strength is an internal part of the organisation, and in case of Flexituff it lies in


the production ability of the firm. It’s one of the largest integrated plant (100%
integration under one roof) which can deliver constantly at a very high level.

A decade of being in the industry, experience a key strength to survive and have
a competitive edge over the rivals.

Other strengths are Economies of scale, the edge of attitude, global footprint,
and the cost advantages.

Weakness (Internal Part)

Company’s weakness is not primarily affecting the operation of the firm in this
case because they are getting business but still there may be a lot more scope for
the marketing team, as they are mainly focusing on the US and Europe market,
and even that to other vendors over there. They are unable to market and sell
their product directly to the consumers with their brand name. With the
company’s ability to deliver they can surely go ahead in terms of market
expansion.

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Opportunity (External Part)


The industry growth rate is quiet high which is a great opportunity for the firm
to expand. They have the internal strength to deliver and with this they can
capture a huge share in the market. There a lot of new market to be explored
globally, they can even establish their monopoly in many of them. The domestic
economic growth rate is also good which helps in organisation operational
growth.

Threat (External Part)


As the industry is on growth, it is attracting many investors to invest in and this
creating competition for the firm, which reduces the profitability of the firm.
There are many other factors also which affect the profitability of the firm like
technological advancement, increase in the cost of raw material and labour etc.

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4. Recommendation

While keeping an understanding with all the aspect of the Industry as well as the
company, we have already understood the Strength and Weakness of the
organisation. On the basis of this we only can suggest as the organisation having
that much capability to produce and deliver they should produce and sell with
their Brand Name in foreign market, where they are already delivering to other
vendors. This will create a lot more Brand Value, which the company actually
deserve. And company have that resource that they can deliver. Even the
company can expand at a very large level, the industry as well as the
organisation has a huge scope. Domestically the company can do a little more
with some research and marketing, as the industry is at the introduction level
and can grow further. Organisation can be Pioneers in the industry in domestic
market. Currently there is not much scope in FIBC industry in domestic market
as the country is Labour-Intensive, but still if company might try hard they can
get a lot of business through multinational companies established in the country.
FIBC increases the speed of the production with the help of machinery; this
might encourage the domestic companies to opt for FIBC, and can open the
doors for the company.
Rest the company is already operating at a very high level. Their one of the
strength is they have One of the Largest Integrated Plant, of which they can take
the advantage and have the edge over their competitors.

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5. REFERENCES

 www.flexituff.com
 www.investopedia.com
 www.wikipedia.com
 Import Export Portfolio – By A.K. Singh
 Mr. Sushil Gupta

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