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EUROPEAN CARPET COMPANY
A Project Report submitted in partial fulfillment of the requirements For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO
MADURAI KAMARAJ UNIVERSITY, MADURAI BY
ABHISHEK RANJAN SINGH
Enrollment No: A8754903 (2008 – 2010) Under the guidance of
PROF. Dr. VENU GOPAL
An Analytical study on Carpet Exports in European Carpet Co.
This is to certify that the project report AT EUROPEAN CARPET COMPANY
A Project Report submitted in partial fulfillment of the requirements For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO
MADURAI KAMARAJ UNIVERSITY, MADURAI Is a record of Training carried out by
ABHISHEK RANJAN SINGH
Under my supervision and guidance and that no part of this report has been submitted for the award of any other degree /diploma/fellowship or similar titles or prizes.
FACULTY GUIDE PROF. Dr. VENU GOPAL
An Analytical study on Carpet Exports in European Carpet Co.
STUDENT’S DECLARATION I hereby declare that the Project report conducted at EUROPEAN CARPET COMPANY
Under the guidance of Prof. Venu Gopal Submitted in partial fulfillment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO
MADURAI KAMARAJ UNIVERSITY, MADURAI Is my original work and the same has not been submitted for the award of any other degree/diploma/fellowship or other similar titles or prizes
Place: Bangalore RANJAN SINGH
c.2 Students work profile (role and responsibilities) Description on live experience 43 44 5 6 6-11 12 13 14-41 42 1 2-4 2 2-3 3-4 PAGE NO.3 2.2 4. Growth and present status of the industry.6 2.1 1. a. Future of the industry.1 3.An Analytical study on Carpet Exports in European Carpet Co. Market profile of the organization CHAPTER 3: DISCUSSION TRAINING 3.2 General introduction.1 4.5 2.7 Origin of the Organization Growth and development of the organization Present status of the organization Functional departments of the organization Organization structure and organization chart Product and service profile of the organization competitors. CHAPTER 4: STUDY OF SELECTED RESEARCH PROBLEM 4.1 2.3 Statement of research problem Statement of research objectives Research design and methodology 45 45-46 46-49 4 . Date: Enrollment No: A87540903 CONTENTS SL. Origin and Development of the industry.4 2. CHAPTER 2: PROFILE OF THE ORGANIZATION 2.NO TOPIC CHAPTER 1: INTRODUCTION 1.2 2. Industry profile. b.
4 4.1 5.5 Analysis of data Summary of findings CHAPTER 5: SUMMARY AND CONCLUSION 49-59 59-60 5. 4.An Analytical study on Carpet Exports in European Carpet Co.2 Summary of learning experience Conclusion and recommendations Appendix Bibliography 61-62 62-63 64-67 68 CHAPTER 1 INTRODUCTION 5 .
References to woven mats and floor coverings can be found in ancient and medieval Indian literature. Rugs from Akbar's reign (1556-1605) used cotton warp and wool pile and color 6 . animal and bird figures and geometric and calligraphic patterns. 1.C. From the beginning. The patterns varied from vines and floral patterns. The wool may have a variety of origins as per the type of carpet being made. brought certain Persian carpet weavers to India and established them here. The Persian carpets were thus indianized.1 General Introduction About The sector History of the carpet industry in India Woolen carpets were known in India as early as 500 B.D. pile carpets came to India in the reign of Akbar in 16th century. It was modified as per the royal tastes and mixed with the Indian arts. The art grew and flourished here. wool or silks have been the basic material of the knotted carpets.An Analytical study on Carpet Exports in European Carpet Co. Silk knots are also used in Kashmir region. It spread to the whole subcontinent with each area having its own specialties. But the most famous type of Indian carpets. He in 1580A.
With their mythical characters finding way in the carpets. flowering plants. attractive colors and workmanship. Though during the reign of Auranzeb (1658 onwards). The carpet weavers over the time have grown artistically. Calligraphy influenced the carpet craft as it did the other crafts. carpet making also saw a downfall for sometime. and shadings with yarns were themselves artistic. Flowers were now the primary elements of design. it can be clearly seen. Reason may be that they were required for all religious purposes. Materials like silk and pashmina were used that allowed greater number of knots to be incorporated. Yarn shading was as sophisticated as in Jahangir's reign. and more naturalistic animals in pictorial or overall pattern. greens. The patterns were a reflection of manuscript paintings. Though like all other crafts. the craft sustained in the traditional families. The Indian carpets are considered most technically accomplished classical carpets.An Analytical study on Carpet Exports in European Carpet Co. carpet craft sustained. and other colors on a red base. Carpets of Jahangir's reign (1605-27) were more refined. The patterns were an adaptation of Persian style but latter modified to Indian tastes. all crafts saw a downfall of almost all crafts. Subtle gradations. The patterns were primarily floral all over with at times geometric or calligraphic trims. They were technically refined in both design and construction. Chinese and European patterns also influenced the art in their own way. During Shahjahan's reign (1628-58) art of carpets had reached new heights Warps and wefts of fine silk yarns allowed as many as 2. The carpets had scrolling vines. scheme had multiple shades of blues.000 knots per square inch. Silk or Pashmina piles gave the carpets a velvet like texture. elegance. Patterns resembled miniature paintings. Indian Carpets are renowned for their exquisite designs. 7 .
Iranian weavers were the originators of carpet weaving. Agra – the city of Taj. while Pre-manufactured woven or bonded cloth in case of 'Tufted Carpets' or 'bonded Carpets' etc. is also a rural and domestic handicrafts. Since it was the base of Akbar's empire. is not only a tourist destiny but has its equal importance in the global trade and industrial production. Carpet manufacturing cities of India India's silk Carpets are World fame as well as price factor of Indian Carpet is most competitive beside its durability and long life. the artists were first established here. which is mostly done for export purpose. America etc. Products-Types of Carpets:_ Carpet means one type of thick fabric equipped with extra yarn on its surface-fabric which is termed as 'Pile'. Dimensions of hand.made carpets depend on order. Carpet Industries of Agra is having its impact over domestic as well as foreign buyers. Turkmen and Abussan varieties are also famous.. Carpet word may be classified as under in three categories: 8 . These designs besides the high quality of Cashmere wool resulted the flourish of Indian carpet. They are known for realistic bold patterns. and 'Wilton Carpets. People feel to visit Agra for its warm hospitality and also for widen one’s own scope of business and trade. In the radius of 40 km. The main importing countries / areas are middle East Europe. Carpet industries are skilled based industries. Of Agra city there are any small weaver are engaged in city as well as rural areas. Carpet weaving in India. Agra designs emphasize elegance and simplicity surrounded by bold floral borders. with Iranian designs. This pile is produced by the support of warp yarn or support of weft yarn. Woven carpets are known 'Ax-minster Carpet'.An Analytical study on Carpet Exports in European Carpet Co. The place is known for Persian style carpets. AGRA CARPET CLUSTER INTRODUCTION Agra is known for natural vegetable dyes. Basically. in this country.
Bhadohi(Varanasi). 47. Uttar Pradesh . MAJOR CARPET PRODUCING CENTRES IN INDIA Uttar Pradesh : 9 ..Agra. wool was consumed by rest woolen carpets sector by eight main carpet oriented wool consuming country. 65 million kg. wool was consumed in Tufted Carpet sector while approximately. a. To secure the pile in straight position with the help of latex chemical and fabric termed "secondary backing" to provide long life and stability to Pile life.An Analytical study on Carpet Exports in European Carpet Co. Silk Carpets. b. Therefore in 1979 approximately. During continuous weaving. Synthetic Carpets. Shahjahanpur. Mirzapur and Dehradun are most renown city but alone MIRZAPUR and BHADOHI are well prominent centre in world market. yarn form the pile like Towel cloth Weaving. Jute Carpets and Blended Carpets etc. Woolen Carpets has monopoly in world market for their outstanding performance and quality than that of Cotton Carpets.. c.00 million kg. One cloth which support the pile with inserting process. Acrylic Carpets. It may be woven or bonded anyone.
Mirzapur. Jammu. Ghosia. Rajasthan : Jaipur. Danapur. Madhubani Himachal Pradesh: Dharmshala. Agra.An Analytical study on Carpet Exports in European Carpet Co. Madhosingh. West Bengal : 10 . Madhya Pradesh: Gwalior. Bikaner. Shahjahanpur. Tonk. Haryana: Panipat. Anantnag. Bhadohi. Punjab: Amritsar. Varanasi. Gopiganj. Khamaria. Leh. Jammu & Kashmir : Srinagar. Baramulla. Bihar : Obra.
11 . Indian fabric is in demand with its ethnic. Pondicherry: Pondicherry Current Status The textile industry holds significant status in the India. The textile sector accounts about 30% in the total export. Andhra Pradesh: Elluru and Warangal Karnataka: Bangalore. from the basic requirement of raw materials to the final products. Employment opportunities are created when cotton is cultivated. Today textile sector accounts for nearly 14% of the total industrial output. The textile industry is the largest industry in terms of employment economy. This conveys that it holds potential if one is ready to innovate. It does not need any exclusive Government support even at present to go further. with huge value-addition at every stage of processing. earthly colored and many textures. It generates massive potential for employment in the sectors from agricultural to industrial. expected to generate 12 million new jobs by 2010.An Analytical study on Carpet Exports in European Carpet Co. Only thing needed is to give some directions to organize people to get enough share of the profit to spearhead development. Textile industry provides one of the most fundamental necessities of the people. It is an independent industry. Dargeeling.
The earliest evidence of and knotted carpet was found by the Soviet archaeologist . The art of weaving has been known to 12 . some of the splendid products of which are still preserved in museums.An Analytical study on Carpet Exports in European Carpet Co.Rudenko . The art of carpet weaving was brought into the Indian subcontinent by the great Moghul Emperor .Akbar in the middle of 16th century and carpet weaving was confined to some important cities of Punjab and later on in Kashmir and UP.000 knots per square meter (232 knots to a square inch). 1.2 Industry Profile . having 360. Hand knotted carpets a result of research and practice of hundreds of years and it is basically this fact which makes it a prized item in the international trade. the nomads handed it over to the civilization of settled population. Before something is said about the industry it would be interesting to know as to how the industry was introduced in India. Agra and Delhi. a) Origin and development of the industry The Carpet industry in India has made substantial progress in the recent past. The Mogul kings had set up royal looms for carpet weaving in Lahore. The rug discovered belongs to the 5th century BC. Today oriental carpets are manufactured all over from Balkan to China and from Caucasus to Indo-Pakistan sub-continent. Having its origin in the nomadic life.in 1949 in the Altai Mountains in Central Asia. it is as old as civilization itself. During the reign of Moguls. The Mogul hunting carpets are famous throughout the world. some immigration of carpet weavers took place from Persia to India and thus the Persian designs were mixed with the local styles to produce some of the greatest carpets in history. Nevertheless the main concentration of carpet weaving artisans was in city of Amritsar.
Carpets freed design from the limitations of space. vegetables. Carpets frequently found a place in European paintings. In the carpet. flowers. Carpets were made only in wool. No two pieces were ever alike. Europeans had been enchanted by these pieces since they were first taken across by traders. he had discovered the means for transmitting animal warmth to himself without having to hunt a wild beast or kill one of his own flock. Carpets began to be treated as if they were canvas for painting. one of the most sought after of Oriental luxuries. The large scale production of carpets in India was begun in the reign of Akbar ( 1556. He could also hang a carpet to decorate the walls of his tent or use it as a saddle-bag. the carpet had many uses. And this infiniteness could be ordered into finite and intricate symmetry. And as in every other art form that they patronised. Exquisite pieces were produced under the patronage of the Mogul emperors. Their design and color schemes had their own independent logic and their own unique magic. Endless experimentation led to the perfection of natural dyes. The uses of colour were a part of individual skills. For the nomad. This fascination for the carpet was natural.A new style of carpets appearing around this time was the pictorial ones.An Analytical study on Carpet Exports in European Carpet Co. the nature of various dyes often being a jealousy guarded secret. Plants.Carpets appeared as if they were 13 . the Indian craftsmen matched their Persian contemporaries. It was the orient which specialized in the handknotted rug For the nomad this was an essential convenience. eat and sleep on it and also use it and also use it to perform his worship on. fruits and even insects were a source of colour. knot for knot. The Moguls were very impressed by and strongly influenced by Persian aesthetic traditions. in carpet weaving too. Abstract symbols could be woven into dense ornamentation. The geometric could be combined with the figurative and the floral with the arabesque.1605). man since way back in iniquity and the earliest carpet can be traced back to five centuries before the birth of Christ. He could sit. and often differing meanings. Sour cream was used to tone down colours. It is therefore not surprising that so much effort and energy was spent in beautifying these rugs. The Safavi rulers of Iran are given the credit for making carpets. The use of cotton and silk were symbols of the later refinement of this art and its adoption by a settled population. Motifs acquired their own. This idea obviously appealed to the Moghuls with their obsessive love for painting. Intricate patterns could be repeated infinitely. It was the ideal furnishing for a tent.
knot by knot. Designs. With these simple tools and a skill that he has inherited over many generations. the carpet industry of India is one of the largest and most consistent supplier of carpets to the world. the Indian craftsmen have created the most splendorous of specimens. But we must remember that even a moderate size carpet contains over a million knots. the common method of design translation (talim) is recitation. The nature of the art precludes the use of machines. Children begin early to learn this craft. He uses a knife to cut the yarn after it has been knotted and a comb to beat in the weft and pile tufts. Knots of coloured wool or silk easily replaced the strokes of brushes to produce monumental enlargements of miniature paintings. is like. Each knot is an entity and has to be co-ordinated with hundreds of thousands of other knots to create a masterful design. when committed to paper are worked down to the minutest of details . He remembers the colour shades of each knot and while he recalls them. The design too can be similar. as one admirer of the art has put it.the colour of each knot in every line of weave is predetermined. In Kashmir. The colour schemes can be the same.as individual as if it were his finger prints or his signature. Designs are preserved in hieroglyphics to prevent theft or plagiarisation. of various colours.blown up but losing none of their details or their impact. The tools that the weaver uses are simple and these have basically remained unchanged with time. Today. 14 . Designs for carpets are conceived in the mind of the designer and then put on paper so that they can be translated into wool or silk. "striking a million knots in such succession and accord as to produce a sonata". Yet no two pieces can be ever alike. There is no machine that can tie knots the way human fingers can. Carpets continue to be hand made. Skill in carpet weaving lies in the tying of individual knots. He then uses a pair of scissors to smoothen out the pile level. Each weaver leaves his own indelible imprint . whether the theme be a royal hunt or just a landscape. The master (Ustad) recites a pattern that he has committed to memory. And the skill takes a generation to acquire. A skilled craftsman can easily tie about ten thousand knots in a day. The carpet weaver successfully mimicked the art of the painter. The Mirzapur Bhadohi belt in Uttar Pradesh supports the largest hand-loomed carpet industry of the world.An Analytical study on Carpet Exports in European Carpet Co. The fineness of the weave is reflected in the refinement of the curvilinear designs. Hand knotting gives the carpet its essential quality – its uniqueness. pages of miniature paintings .
commercial support and government support. All these were extracted and then used as colours for rugs and carpets. Madder. Like colorings. this industry has tremendous chances of growth. patterns crafting is also an integral part in carpet weaving. with the advent of synthetic colours. reduce or blow up at will. b) Growth and present status of the industry. Its colours are lustrous and its motifs are delicate and detailed. many developments have taken place in this sector. At the beginning. marketing. was the most important colorant of vegetable origin. Indian carpets are all of these and more. The usual procedure followed by the weaver is to draw his designs and transfer them to a graph paper on which each square symbolizes a single knot. the weavers automatically translates his instructions into notes. a plant which is available almost everywhere. and delivery time. A good carpet is supple. competitiveness. In recent years. green was taken from the grass and brown from the kicker tree. Gradually. To make the process of weaving easier. Then the paper is divided into several parts depending on 15 . The roots of the plant provided shades of red and pink.An Analytical study on Carpet Exports in European Carpet Co. With proper infrastructural facilities. springy and soft to the touch. The continuity of superb artistic traditions have made the Indian carpets the product of a living. chemical dyes were used in place of natural dyes. only natural dyes were used to obtain subtle and attractive colours. RECENT TRENDS Hand-made carpets hold a significant position in the industry worldwide. thriving art. Legends speak of masters who had committed more than fifty such patterns to memory which they could recall. India. with a population that is supported by skills or inclination towards such art and craft has a strong potential for growth. the hand-made carpet sector in India has shown a great progress in areas like capacities. These also offered a wide range of colours that the weavers deftly incorporated in coloring of carpets.
designing has become an easier task with the availability of CAD/CAM software's. today with advances in production technology. they can visualize the carpet even before it is made. health care and most important of all prevention of child labor. Earlier. These sheets of paper are then passed on to the knotting workshop. including carpet manufacturers also have come up with many facilities for the overall growth of the weavers like regular work. Skill development of the weavers has been a highlight. Weavers have switched to computer-aided designs which enable them to create designs in a short span of time. The government and various agencies. As the knotting proceeds. machine-made carpets are becoming increasingly popular. incentives. with the help of computer designing. looms play a vital role. Now. Today. The simplest of these looms is the one with two horizontal wooden beams between which the wrapped threads are stretched. improved working conditions. For hand-made carpets.An Analytical study on Carpet Exports in European Carpet Co. This was a time consuming procedure and was carried out with utmost care. The number of knots to be woven is indicated by signs. it was not always possible for the carpet weavers to make the perfect carpet or a rug which they had imagined or were instructed. Besides this. A coded colour chart is used which shows the number of knots to be woven in their respective colours. One of the most commonly used loom in India is the roller-beam loom. One beam is in front of the weaver and the other behind the first. whether the pattern is intended for the medallion or center or for a part of a repeated pattern. proper trainings are imparted to both male and female weavers to come up with new designs and better efficiency. However. The loom gives shape to the carpet-weaver's creative expressions. the carpet is rolled to the back of the loom. The master-weaver reads aloud the chart and the weavers follow his directions carefully. There was another method known as ‘Talim’ followed by the weavers of Kashmir and Amritsar. 16 .
17 .An Analytical study on Carpet Exports in European Carpet Co.
70 983.68% 1156.90 321. including Cotton Carpets excluding Handmade Woolen Tufted Carpets Handmade woolen tufted carpets Handmade Silk Carpets Handmade Staple/ Synthetic Carpets Total 69.S.50 (-) 37.81 (-) 24.15% 18 April.11% 515.00% 287.10 600.48% .An Analytical study on Carpet Exports in European Carpet Co.73 (-) 8.37% 17.54% (-) 23.22 (-) 15.12 46.21% 221.45% (-) 31.March Value in U. Durries etc.87 210.40 217.29 875.09% 55. Dollar Million Percentage increase (+) / 2008-09 2008-09 decrease (-) increase (+) / 2008-09 decrease (-) 10 2076. Value of Exports April.06 (-) 18.57 1451.March Value in Rupees Crores Percentage 2009Products Handmade Woolen Carpets. Rugs.71 14.73 63.58 (-) 5. Drug gets.28 (-) 30.65 2708.65 (-) 15.59 3524.
75 14.41 4.47 27.55 23.25 423.22 45.02 189.S.11 58.25 49.95 5.13 7.95 1833.29 112.32 14. Statement of estimated Exports for the month of April.12 12.62 45.06 The Carpet Export Promotion Council is organizing participation of memberexporters in the following forthcoming Activities for 2010-11 under the Scheme of O/o.50 3082.52 35.19 807.56 4.56 403.74 7.17 3.65 10.37 15.22 11.07 344.71 105.86 24.86 U.48 85.35 8.83 44.44 2006-07 Rupees Crores 6.69 40.23 1.27 8.38 8.81 23.57 875.40 301.39 414.67 48.80 41.06 U.18 212.21 3.82 14.93 585.84 613.S.28 26.81 29.S.87 2708.25 54.99 1.20 600.36 696.99 35.94 2007-08 Rupees Crores 7.98 364.93 6.14 32.52 153.94 46.80 17. Others Total 5.An Analytical study on Carpet Exports in European Carpet Co.81 3674.64 12.13 82.23 6.K.01 14.35 38.92 33.04 36.75 7.) Rupees Crores 10.41 9.95 3.30 7.02 8.53 11.53 2. Country 2005-06 Rupees Crores 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Argentina Australia Austria Belgium Brazil Canada Denmark Finland France Germany Italy Japan Netherlands Norway Sweden Switzerland Spain U. Ministry of Textiles.56 1.90 15.04 8.86 10.33 15.83 132.94 2.27 18.38 1359.79 15.25 2.03 5.05 4.97 26.38 3.41 18.02 17.50 15.56 65.04 41.73 U. $ Million 2.08 27.20 62.61 93.95 8.11 160.05 5.52 68.24 25.04 14.54 4.36 16.80 4.43 346.94 59.92 82.67 26.42 7.93 21.47 4.85 47.87 1533.March 2009-10 in comparison with the April.71 2008-09(Prov.50 158.43 3.78 646.S.30 6.7 59.96 698.S.82 135.75 19.33 28. under the MDA 19 . the DC(Handicrafts).12 24.38 6.March.53 24.98 51.95 1.42 3524.27 56.41 14.86 183.70 5.00 38.51 3.79 10. $ Million 1.98 5.74 56.92 4.5 48.25 10. $ Million 1.07 1668.09 18.52 10.A.57 9.03 18.20 5.42 4.56 19.09 6.61 10.85 5.79 30.73 4. No. U. $ Million 1.96 47.27 20.7 11.73 U. 2008-09 Now In the above table we can see that the growth of the carpet industry Country-wise export data from 2003-04 to 2008-09 (Prove) S.
2010 Muscat (Oman) finalization. Qinghai Intl.for approx.030/. 28th Sept. 11.An Analytical study on Carpet Exports in European Carpet Co. mtr. It is an unique opportunity to showcase your products before the potential buyer in these exhibitions: Sl. 2010. Scheme of Ministry of Commerce as per details given below alongwith participation charges. 30 Sept. 2010 Reimbursement of MDA Grant will be admissible within the ceiling of Government approval. Meet during Japantex 17-19 Participation charges under November 2010 in Tokyo (Japan) finalization.subject to Made in India Exhibition in USA in Participation charges under 20 .DC(H): B. in anticipation of Government grants. finalization.80. Centre (China) 20-23 June 2010. No. 28.000/.subject to Government approval. 12 sq. Rs.12 sq.S. for approx.50. Meet during Textile Hogar in Valencia (Spain) Participation charges under 4.000/.S. mtr.. Carpet Exhibition in. admissible under MDA Scheme Melbourne (Australia) 15-18 July. 8. Activity Qinghai Intl. MDA Scheme of Ministry of Commerce: Made in India Exhibition in Capetown (South 7. mtr. Made in India Exhibition during Decoration + Design Show in 2. Muscat 2010.20. Participation charges & other details Reimbursement of Air fare not Rs. for each of the following activities.500/.for 18 sq.per sq. 3rd INDEXPO. Ministry of Textiles Scheme of O/o. 6. Carpet Exhibition 1.m. 1.Participation charges under B. Grant will be admissible within the ceiling of Rs. 1. (Brazil) 14-17 August 2010.000/. Africa) 24-26 November 2010 Participation charges under finalization. Rs. 5. to 2nd Oct. Rs. Reimbursement of MDA Made in India Exhibition during House & Gift Fair in Sao Paulo 3. 1.22.
New Delhi 2-5 February 2011 finalization India Carpet Expo in New Delhi Feb. No. Participation charges under finalization. in finalization. March 2011./March 2011 Participation charges under finalization SWOT ANALYSIS 21 .DC(H): Thematic Exhibition during Spring Fair Intl. Trade Fair in Hannover (Germany) 159. Activity 1st November 2010 Carpet Exhibition in Srinagar (J&K) during Sept.) 6-10 February Participation charges under 10. 2. Birmingham (U. 1. Participation charges under finalization.2010 Participation charges finalization Participation charges under finalization India Carpet Expo in Varanasi from 29th Oct. Thematic Exhibition during Domotex Asia Chinafloor in Shanghai (China) from 23-25 11. 2011.K. to Participation charges under Made in India Show of all Textiles based EPCs Participation charges under in Pragati Maidan. 18 January 2011 Ministry of Textiles Scheme of O/o.An Analytical study on Carpet Exports in European Carpet Co. January/February 2011 MAI Scheme of the Ministry of Commerce: Domoex Intl. 3. finalization. 4. Activities in India : Sl.
Indian industry can offer wide options to a customer for carpet purchases. Flexibility: Indian carpet industry can manufacture all kinds of carpets. Also. Hence. Indian Carpet industry is a unique kind of industry. What is behind this industry which drives the exports? One can not forget that it had significant share in Indian exports till early 1990s. 22 . They are highly skilled in this areas Costs : India has an advantage in terms of costs. Hence. There are several kinds of manufacturers which can take small orders or big orders. SWOT analysis will bring forth the value drivers and stumbling blocks in this industry. As carpets are considered as luxury items and consumer trends re changing continuously. This is not possible in machine made carpets. it increases the time of delivery of carpets. Innovations: Innovations is one of the major criteria for selling carpets. The countries like China which produce low cost carpets lack in innovations. Still. Also. it has managed to show impressive performance in the past. major carpet centers have built huge network of artistic weavers. Weaknesses • Unorganized: Indian carpet industry is highly unorganized. Iran with out compromising on quality fronts heavily. innovation is a key for the success. total cost of producing a carpet is low compared to countries like Turkey. It’s highly unorganized with lack of proper channels. The labor costs in India are comparatively low. it increases the cost of production. Strengths • Artistic skills: Over the period. Other countries have specialized in particular carpets. a lot of activities are duplicated. The industry currently is employing millions of people directly and indirectly. the carpets of any size can be manufactured in hand knotted categories. Therefore.An Analytical study on Carpet Exports in European Carpet Co. Also.
this movement offers a new market for Hand tufted Carpets which are comparatively cheaper to hand-knotted carpets. After dealing with China for some time. This demoralizes players from designing innovative products which is an expensive process. This segment can be further expanded. • Traditionally. Most of the manufacturers do not have showrooms in the cities to showcase their creations. buyers find it difficult to visit places like Bhadohi for looking designs. Hence. They do not respect delivery time and quality issues. Internal Competition: Many players have entered the industry increasing the competition. Professional Approach: Majority of players lack professional approach for doing the business.An Analytical study on Carpet Exports in European Carpet Co. they are heavily dependent upon the buying agents. There is only one institute which provides courses related to carpet industry. many players think that India provide better option and flexibility. • Marketing Channels: The carpet manufacturers lack the proper marketing channels. buyers like to deal only through buying agents to control them. Home furnishing market is moving towards Caret industry. This kind feeling can further be tapped 23 . Also. • Intellectual Property Rights: Many players in the industry copy designs from each others. Therefore. Opportunities • Globally. The evolution of modern design has attracted youth market as well. Therefore. There is a lack of respect for intellectual property rights. They find it very difficult to access the customers is increase the market. the carpets were purchased by old people. There is a tremendous competition among players on price front and are willing to offer very low prices even though some one has already taken order. • Infrastructure: The infrastructure is very poor leading to higher time for production and costs.
24 . The companies like IKEA. Carpets are generally considered to be expensive. risk of possible backlash on the industry is a going to be there for considerable time in the future although some action is being taken on this front. Hence. prices can further be reduced. Also. cutting middlemen will directly benefit the consumers thereby increasing the demand. current rebound in the industry may not be sustainable.An Analytical study on Carpet Exports in European Carpet Co. • Unhealthy competition in the industry kills each other. Threats • If not handled properly. • Designing skills of India are being acknowledged at global level mainly in garments. With use of modern technology. There is an opportunity for providing stocking and warehousing services to various players. Similar skill set can be developed in the Carpet Industry and used as a marketing tool. • Indian Carpet industry has not completely got rid off of issues like Child labor. Wal-Mart. Organized operations can enhance the image of Indian Carpet industry. etc can offer new and larger market to the manufacturers provided this market is properly tapped.
These carpets have expanded the market as they are cheaper and affordable for many consumer segments. there are a significant number of consumers who prefer modern designs compared to traditional designs. Modern Designs As in the case of low end carpets. 25 . etc. c. Future of the Industry Low – End Carpets Low end carpets like hand-tufted carpets are currently driving the growth of industry. These are prominent in countries like Germany. Modern design is attracting young consumers. Scandinavia. Also.An Analytical study on Carpet Exports in European Carpet Co. modern designs are expanding the market. These segments are going to drive future growth for a considerable time.
An Analytical study on Carpet Exports in European Carpet Co.
New Markets Traditionally, carpets industry is dominated by buyers from USA & Germany. However, new markets are emerging for carpets and they are growing fast. These are basically developing countries or lesser developed countries like Spain, etc. Growth in income level is the major driver for this.
Big Retailers Big retailers like Wal-Mart, Ikea can drive the growth in the carpet industry. These players have huge network with a large customer base. Low-end carpets can be a major product that can be targeted by these players.
Cost Management In Today’s competitive market, price has become an important factor. Hence, better price can be offered through better costs management. Effective costs management will always be a competitive advantage to any player. The trend is common in every industry. Carpet industry is no exception. Better cost management will reduce the price which can lead to increase in volume sales.
Business Process Up gradation As said earlier, the carpet industry is going through a major change. Timely delivery, better price and high quality products can only help carpet manufacturers for survival. Business Process Up gradation is the tool for achieving this. All these factors will definitely improve the present market as well as expand in to new markets. Otherwise, it’s going to be difficult for the carpet industry to grow.
An Analytical study on Carpet Exports in European Carpet Co.
CHAPTER 2 PROFILE OF THE ORGANIZATION
2.1 Origin of the organization European Carpet Company has been established in 1976 founded by late HAJI MOHD. FORUQUE ANSAARI and late ZAFRUDDIN ANSAARI. In 1984 company has been registered from govt. authority having start export to Europe. in 1986 company has been registered from govt. authority having start export to USA also.
An Analytical study on Carpet Exports in European Carpet Co.
European Carpet Company manufactures carpet and export to European and US countries companies manufacturing units are located at….. a. BHADOHI b. MIRZAPUR c. SHAHJAHANPUR d. MAHARAAJGANJ Companies international showroom located at BHADOHI where several countries importers come for the business purpose. European carpet companies started their business with the capital of 5 lakh Rs. And now the company’s annual turnover is more than 100 cr Rs.
2.2 Growth and Development of the organization A European carpet company is growing in various sectors according to the global demand. Company works for betterment of the carpet industry keeping the following goals in mind: ■ Work towards eradicating social injustices ■ Increase the standard of living of the weavers ■ The promotion of new designs, as per the international demand, so as to bring more work to the weavers thereby accelerating income and prosperity. ■ Working for the empowerment of women. Empowering women for us implies influencing strongly not only on their economic life (income and earning potential) but also their personal life (self-esteem and influence on family decisions). We give them equal priority on wage levels, participation in decision-making and labor
3 Present status of the organization 1. making the weavers free from exploitation and under payment. European carpet company started their business with the capital of 5 lakh Rs. ■ Promotion of the research for new technology to brings the Indian carpet weaving industry closer to the international market. And now the company annual turnover is more than 100 cr Rs. ■ Providing prospects for the overall personality development as health.An Analytical study on Carpet Exports in European Carpet Co. standards ■ Uplifment of the weavers' community by creation of facilities which enhance the efficiency of the weavers through carpet weaving which in turn lead to the economic growth of the industry. ■ Enhancing the skill of the workers through training and exposure ■ Non involvement of middlemen. including children's education etc ■ Welfare schemes through microfinance which help the artisans get motivated for becoming financially sound and able to hold assets like their own looms. education. 29 . 2. 2. European carpet companies has started its 1976 as a local marketing business company but currently company is exporting carpets in European and US countries. ■ Helping the weavers in becoming productive and contributing members of their communities.
The reason of our progressive growth is our range of quality products. and machine woven carpet. Owing to its exquisite designs and socially appropriate business practices. handloom carpet. which is well 30 . These include: ‘Sankalp 2010 : Social Enterprise Awards & Investment ‘Corporate Social Responsibility Award’ by FICCI (2010) ‘Indian Achievers Award For Business Excellence’ by Indian ‘Award of Excellence . Our main area of thrust is quality. the Company has been honored with several prestigious accolades and awards for its outstanding performance in the carpet industry. European carpet companies started exporting only PERSIAN CARPETS but now company is exporting hand tufted carpet . which is acceptable around the world.Floor Covering’ by HFN (2009) ‘American Graphic Design Award ’ by Graphics Design USA (2009) 'Best SME for CSR ' by Business Today & Yes Bank (2009) ‘Star Export House’ by Ministry of Commerce. wool carpet. European carpet companies has more than 200 employees. 4.An Analytical study on Carpet Exports in European Carpet Co. We possess an exclusive range of designs that are quintessentially characterized by authenticity and versatility. Award and achievements: Our strength lies in consolidating our customer’s imagination and thereby customizing each process of product creation. Government of India Forum’ by Sankalp Forum (2010) Achievers forum (2010) (2009) Certification: 9001:2008 Quality is a nerve center of our company without which we won't have survived in this industry and we know the importance of it. 3. We are an ISO 9001:2008 certified company and our strategies always revolve around quality.
4 FUNCTIONAL DEPARTMENTAION OF THE ORGANIZATION 31 . We have been using stringent quality measures to check the quality of our products. That's the main reason our products are legendary for quality and durability. We have a quality management team to supervise the quality checkups by the time of production and before shipment of the products. We do everything it takes to ensure that the gear you buy has the level of quality you expect. ISO 14001:2004 compliance can also provide your company with a better use of energy and resources. It is the key to our success. it can enable you to achieve both objectives. today and tomorrow. it can improve employee ethics and the workplace. maintained and promoted by highly qualified and dedicated workforce. We always strive to provide our clients quality products and get the maximum customer satisfaction by providing world class customer service. Furthermore. We have gained ISO certification for providing high quality services. it assists you to ensure compliance with environmental legislation and reduces the risk of penalties and possible litigation. The standard is designed to address the delicate balance between maintaining profitability and reducing environmental impact. and reduce cost.An Analytical study on Carpet Exports in European Carpet Co. Quality is our most successful product. Internally. with the commitment of your entire organization. ISO 14001 is an internationally accepted standard that sets out how you can go about putting in place an effective Environmental Management System (EMS). Our worldwide clients have appreciated the quality of our products. 2. Demonstrating commitment to the environment can transform your corporate culture externally by opening up new business opportunities with environmentally aware customers or clients.
Research and development . Human resources . 32 . Marketing and sales .will try and maximize the level of sales by carrying out market research and promoting the goods or service through a motivated sales team. They have responsibility for securing finances for future expansion and paying staff and suppliers.An Analytical study on Carpet Exports in European Carpet Co.ensures the business has the best staff for the job and that they are able to work effectively in a safe environment. Production – this is the department which needed to an every organization for efficiently and effectively produces goods and with the help of better and skilled employees and with the help of services.will keep a record of all money coming in and going out of the business. Finance .will help the business remain competitive by developing new goods and services and updating the existing one.
They are exporting several verities of carpets and they are providing service also. 2. Types of Products 33 .6 Product and service Profile of the Organization Competitors: There are lots of competitors of the organization in India and across the world.5 ORGANIZATION STRUCTURE AND ORGANIZATIONAL CHART 2. Along with the demand of varieties of the carpets.An Analytical study on Carpet Exports in European Carpet Co. service is also needed by the importers for making customers satisfactions.
These carpets are usually the most expensive due to the relatively slow speed of the manufacturing process. where there is a lot of traffic. a supplementary weft cut-loop pile carpet). Knotted On a knotted pile carpet (formally. Needle felts are produced by electrostatic attraction of individual synthetic fibres forming an extremely durable carpet. These carpets are normally found in the contract market such as hotels etc.An Analytical study on Carpet Exports in European Carpet Co. Needlefelt These carpets are more technologically advanced. Woven The carpet is produced on a loom quite similar to woven cloth and is usually a cut pile although looped pile carpets of woven construction are not unheard of. the structural weft threads alternate with a supplementary weft that rises at right angles to the surface of the weave. This 34 .  Normally many colored yarns are used and this process is capable of producing intricate patterns from pre-determined designs(although some limitations apply to certain weaving methods with regard to accuracy of pattern within the carpet).
Tufted These are carpets that have their pile injected into a backing material. triple cloth. Dutch. XVIII c. and tapestry weave. Treasury Unlike woven carpets. embroidery carpets are not formed on a loom. Others A flatweave carpet is created by interlocking warp (vertical) and weft (horizontal) threads. or three-ply). Embroidered carpets were traditionally made by royal and aristocratic women in the home. and ingrain (aka double cloth. plain weave. which is itself then bonded to a secondary backing comprising a woven hessian weave or a man made alternative to provide stability. supplementary weft is attached to the warp by one of three knot types (see below). The tent stitch and the cross stitch are two of the most common. damask. A hooked rug is a simple type of rug handmade by pulling strips of cloth such as wool or cotton through the meshes of a sturdy fabric such as burlap. haircloth. Kashmir carpets are also hand-knotted. such as shag which was popular in the 1970s.An Analytical study on Carpet Exports in European Carpet Co. Knotting by hand is most prevalent in Oriental rugs and carpets. two-ply. Types of oriental flatwoven carpet include kilim. but there has been some commercial manufacture since steel needles were introduced (earlier needles 35 . Types of European flatwoven carpets include Venetian.. to form the pile or nap of the carpet. Echmiatsin. This is the most common method of manufacturing of domestic carpets for floor covering purposes in the world. soumak. Their pattern is established by the application of stitches to a cloth (often linen) base. (Embroidery) Armenian embroidery carpet. This type of rug is now generally made as a handicraft. list.
and became extremely popular in England in the 1830s. Both vertical and horizontal looms have been used in the production of European and Oriental carpets in some colors. Afghanistan. Kashmir (India) has World Famous Hand knotted carpets. containing five carpet gulls (designs used in producing rugs). These are usually of Silk and some woolen carpets are also woven. Flag of Turkmenistan Contemporary centers ofcarpet roductionare: Kashmir. Turkey. The warp threads are set up on the frame of the loom before weaving begins. The importance of carpets in the culture of Turkmenistan is such that the national flag features a vertical red stripe near the hoist side. Embroidered carpets can also include other features such as a pattern of shapes. Norther n Africa. 3-dimensional flowers. Spain. A row of knots is completed and cut. Mary Stewart Queen of Scots is known to have been an avid embroiderer. Iran (Tabriz). and Tibet. Nepal. They often incorporate animal heraldry and the coat of arms of the maker. Patterns for tiled carpets made of a number of squares. 16th century designs usually involve scrolling vines and regional flowers (for example. were made of bone) and linen weaving improved in the 16th century. Azerbaijan. Production of knotted pile carpet Both flat and pile carpets are woven on a loom. were introduced in Germany in 1804. Turkmenistan.An Analytical study on Carpet Exports in European Carpet Co. India. Victorian embroidered carpet compositions include highly illusionistic. A number of weavers may work together on the same carpet. Pakistan. called Berlin wool work. the Bradford carpet). but the two main types of knot are the symmetrical (also called Turkish or Ghiordes) and asymmetrical (also called Persian or Sienna). The knots are secured with (usually one to four) rows of weft. or they can even tell a story. 36 . There are several styles of knotting. Production continued through the 19th century.
These dye sites need to be filled in order to give Nylon any type of stain resistance. Fibers and yarns used in carpet The Pitcher and mug on the background of a carpet. Large looped Berber carpets made from this fiber are usually only suited for light domestic use and tend to mat down quickly. It is difficult to dye and does not wear as well as wool or nylon. Berber carpets with smaller loops tend to be more resilient and retain their new appearance longer than large looped Berber styles. As nylon is petroleum-based it varies in price with the price of oil. In carpets Nylon tends to stain easily because it possesses dye sites on the fiber. Nylon can be printed easily and has excellent wear characteristics. the dominant yarn constructions are polyamides (nylons) and polypropylene with an estimated 90% of the commercial market. Commercial grade level-loop carpets have very small loops. The Rug mark labeling scheme used throughout Europe and North America assures that child labor has not been used: importers pay for the labels. In terms of scale of production. Fibers are chosen for durability. and cost. appearance. Child labor has often been used in Asia.An Analytical study on Carpet Exports in European Carpet Co. ease of manufacture. and commercial grade cut-pile styles are 37 . Nylon Nylon is the most common material for construction of carpets. Polypropylene Polypropylene is used to produce carpet yarns because it is inexpensive. Both nylon 6 and nylon 66 are used. Carpet can be made from many single or blended natural and synthetic fibers. Nylon can be dyed topically or dyed in a molten state (solution dying). and the revenue collected is used to monitor centers of production and educate previously exploited children.
that makes the fiber more crush resistant. 38 . with the most common blend being 80% wool to 20% synthetic fiber. when Shell Chemicals developed the low-cost method of producing high-quality 1. Polyester has the disadvantage that it tends to crush or mat down easily. Carpets made with PTT dry quickly and are resistant to mold. can be dyed easily and is fairly abundant. unlike nylon. Wool and wool-blends Wool has excellent durability. and is inherently stain resistant because color is infused in a molten state. Another polyester. Wool is relatively expensive and consequently a small portion of the market. When made with polypropylene (also called Olefin) these styles wear very well. PTT also does not have dye sites. Blended wool yarns are extensively used in production of modern carpet. but it was not produced until the 1990s. well constructed. polyester became more competitive.An Analytical study on Carpet Exports in European Carpet Co. After the price of raw materials for many types of carpet rose in the early 2000s. also called Sorona or 3GT (DuPont)or NorTerra (Shell). is a variant of PET. and. Commercial grade carpets can be glued directly to the floor or installed over a 1/4" thick. and easy to clean. "PTT" (Polytrimethylene terephthalate) . When blended with synthetic fibers such as nylon the durability of wool is increased. PTT is similar to polyester. resilient.to low-priced carpeting. It is typically used in mid. Outdoor grass carpets are usually made from polypropylene. Polyester has good physical properties and is inherently stain-resistant because it is hydrophobic.3 propanediol (PDO). 8-pound density padding. the starting raw material for PTT NorTerra Polymers. does not have dye sites. The binding in woven carpet is usually cotton and the weft is jute. Lurgi Zimmer PTT was first patented in 1941. Polyester The polyester known as "PET" (Polyethylene Terephthalate) is used in carpet manufacturing in both spun and filament constructions. Color is infused in a molten state (solution dyeing). but its molecules have a "kink". giving rise to the term "80/20". similar to a spring. clean easily and are suitable for areas with heavy foot traffic such as offices.
Chinese carpets were woven almost exclusively for internal consumption. China has a long history of exporting traditional goods. but is often used with carpet made from other materials. The earliest group of surviving knotted pile carpets was produced under Seljuk rule in the first half of the 13th century on the Anatolian peninsula. Chinese Carpets As opposed to most antique rug manufactory practices. The borders are ornamented with a largescale. in other words. This richly colored carpet is 200 x 183 cm (6'6" x 6'0") and framed by a border of griffins. The eighteen extant works are often referred to as the Konya Carpets.An Analytical study on Carpet Exports in European Carpet Co. or Kufesque. Carpet binding is usually cotton or nylon. The origin of this carpet is attributed to either the Scythians or the Persian Achaemenids.  The earliest surviving pile carpet in the world is called the "Pazyryk Carpet". although there is evidence of goats and sheep being sheared for wool and hair which was spun and woven as far back at 6000BC. Carpet binding Carpet binding is a term used for any material being applied to the edge of a carpet to make a rug. among the oldest surviving carpets in the world The hand-knotted pile carpets probably originated in southern Central Asia between the 3rd and 2nd millennium BCE. grass. Natural binding. however. The central field of these large carpets is a repeated geometrical pattern. dating from the 5th-4th century BCE. angular calligraphy called Kufic. but also comes in many other materials. It was excavated by Sergei Ivanovich Rudenko in 1949 from a Pazyryk burial mound where it had been preserved in ice in the valley of Pazyryk. pseudo-Kufic. Early carpets The Pazyryk Carpet. such as leather. stylized. it was not until the first half of the 19th century that the 39 . and wool rugs. binding not made from synthetic material is frequently used with bamboo.
This is because Islam. some show figures engaged either in the hunt or feasting scenes. forbids their depiction. palmettos. The centuries old Chinese textile industry is rich in history. the last emperor of the Chen Dynasty. producing three quarters of the world's total output and having a share of 30% of world's export markets. However. Carpet-weaving in Persia dates back to the Bronze Age. the last before the creation of the Chinese Republic. The majority of these carpets are wool. Common motifs include scrolling vine networks. Iranian carpets are the finest in the world and their designs are copied by weavers from other countries as well. which ended when he died in the early 17th century. Persian and Anatolian carpets The Persian carpet is a part of Persian (Iranian) art and culture. cloud bands. Still. arabesques. scholars attribute the age of any specific Chinese rug to the ruling emperor of the time.546 square feet. Turkish carpets 40 . painted depictions prove a longer history of production. medallions. The Ming Dynasty. measuring 60. While most antique carpets are classified according to a specific region or manufactory. Chinese began to export their rugs. Iran is also the world's largest producer and exporter of handmade carpets. and overlapping geometric compartments rather than animals and humans. there was a large change in production: Chinese manufactories began to produce artdeco rugs with commercial look and price point. succeeded the Chen dynasty. The earliest surviving examples of the craft were produced during the time of Ch'ung Chen. The earliest surviving corpus of Persian carpets comes from the Safavid dynasty (1501–1736) in the 16th century. the dominant religion in that part of the world. but several silk examples produced in Kashan survive.An Analytical study on Carpet Exports in European Carpet Co. There is much variety among classical Persian carpets of the 16th and 17th century. Iran is also the maker of the largest handmade carpet in history. Once in contact with western influences.
on tables. whether knotted or flats woven (kalin) are among the best known art forms produced by the Turks. The Turkish carpets have exuberant colors. this is one art form that is rarely appreciated as being the work of a known or a specific artist. with carpets. when the Netherlands became a powerful mercantile country. except under the feet of the Holy Mother and royalty. Turkey carpets. in the works of Lotto (15th century Italian painter) and Holbein (16th century German painter). Turkish carpets in the 15th and 16th centuries are best known through European paintings. and sometimes walls and doorways. Turkish carpets graced many Dutch homes. as they were known. Although synthetic dyes have been in use for the last 150 years. For example. Excavations at Moenjodaro and Harappa .have established that the inhabitants used spindles and spun a wide variety of weaving materials. with occasional additions of silk. Turkish carpets are seen under the feet of the Virgin Mary.An Analytical study on Carpet Exports in European Carpet Co. of wool or sometimes cotton. Pakistani carpets The art of weaving developed in the region comprising Pakistan at a time when few other civilizations employed it. Because traditionally women have woven the carpets. In the 17th century. or in secular paintings.ancient cities of the Indus Valley civilization . motifs. The Dutch painter Vermeer represented Turkish carpets predominantly to indicate the high economic and social status of the persons in his paintings. Carpets. hands made carpets are still considered far superior to industrial carpeting. Some historians consider that the Indus Valley civilization first developed the use of woven textiles. 41 . and patterns. Even technological advances which enable factory-made carpets has not stopped the production of rug weaving at cottage-industry level. These are handmade. were too valuable to be put on floors. They have protected themselves from the extremes of the cold weather by covering the floors.
Mughal carpet weaving took on a new aesthetic and entered its classical phase. Carpets made for the Mughal emperors. It covers European and U. At Starting time of the organization they have started exporting only PERSSIAN carpet but now company is exporting hand knotted carpet. 2. when the last successor of Timur. Under Shah Jahan's reign. from the West. Babar. Product Line= Company has increased the product line. were of the finest quality.An Analytical study on Carpet Exports in European Carpet Co. Under the patronage of the Mughals.7 Profile of the organization The market segment of the organization= European Carpet Company has good market segment. weaving. Indian craftsmen adopted Persian techniques and designs. wool carpet etc. including Jahangir and Shah Jahan. MEARKET SHARE OF THE ORGANIZATION= 42 . New technologies are in coloring of carpet. It can with more certainty be traced to the beginning of the Mughal Dynasty in the early sixteenth century. the Ghaznavids and the Ghauris. hand tufted carpet. These carpets had distinctive designs and boasted a high density of knots. During the Mughal period. the carpets made on the Indian subcontinent became so famous that demand for them spread abroad. countries. marketing etc. Carpets woven in the Punjab at that time (often called Lahore carpets today) made use of motifs and decorative styles found in Mughal architecture. extended his rule from Kabul to India to found the Mughal Empire.S. Carpet weaving may have been introduced into the area of present-day Pakistan as far back as the eleventh century with the coming of the first Muslim conquerors. TECHNOLOGY= EUROPEAN CARPET COMPANY is using new kind of technology for delivery of current needs of the customers.
now annual budget of the organization is approximately 100 crore. The market share of the organization is increasing consistently. EUROPEAN CARPET COMPANY has started it’s business with the capital of 5 lakhs. CHAPTER 3: DISCUSSION ON TRAINING 43 .An Analytical study on Carpet Exports in European Carpet Co.
(b) details regarding the product and services offered (c) the work culture. and the (d) nature of the job etc will be explained 44 .An Analytical study on Carpet Exports in European Carpet Co. the student will be trained for a period of one week. 4) Keep contact with the customers Initially. 3. where (a) a brief introduction to the company .1 student’s work profile (roles and responsibilities): 1) Find out buyer’s information: (a) Web site address (b)Bank record (c)Position in the market 2) Sent the quotation to the buyers and solve the queries of the buyers 3) sent the buyers suggestion to the immediate manager.
Student’s Contribution to the Organization: 45 . the students (trainees) will be asked to start with their field work. After that our training ended. Soon product training followed I was first introduce to the company and then was explained the details of the companies various product. Learning: Always be enthusiastic and practice smiling. It was a great learning experience. First I started with my training program which was for 10 days at company premises. After the trainee has gained sufficient knowledge about the products and the ways to handle a client Description of live experience: I am keen to work in carpet Industry and amazed by the knowledge. At the end of the session I gave a test of my product knowledge and about the industry.An Analytical study on Carpet Exports in European Carpet Co. Believe in metamorphism. ask the right question and be interesting. incentives could be draw from the industry. Customer Loyalty and satisfaction and the work environment made me choose to undergo my industry training in carpet Industry. The Brand name . Be a pulley person rather a push. The company knows person engaged me in various activities that enhanced my knowledge about the carpet Industry. experience. Talk to people.. After the successful completion of the training at the company.
(b) solving their post-sale queries.. but also the client satisfaction level and the brand image of the company in the market. The contribution done by a student can be explained in the following ways: • Sourcing of new clients.An Analytical study on Carpet Exports in European Carpet Co. so that the company can carefully design its products and services from time to time. would not only increase the company’s goodwill. CHAPTER 4 STUDY OF SELECTED 46 . if any. (a) informing the clients about the products. thus increasing the sales. • • • By performing the acts like. Bringing back the much needed information about the clients’ needs and expectations to the company. Creating the awareness about the company and its products and services.
An Analytical study on Carpet Exports in European Carpet Co. RESEARCH PROBLEM 47 .
4.3 Research design and methodology 48 . To find out the export problems of the company. A survey was undertaken to understand problem of the organization and suggest the appropriate suggestion for the improvement of the export performance of the organization. It is the blue print that is followed in completing the study. 4. 4. To find out that organization is utilizing the offered government policies or not.An Analytical study on Carpet Exports in European Carpet Co.2 Statement of Research Objective To find out the export benefits of the company. STATEMENT OF THE PROBLEM This study was undertaken to identify the problems of the European carpet company and find the way to overcome. .1 Statement of the Research Problem INTRODUCTION A Research Design is the framework or plan for a study which is used as a guide in collecting and analyzing the data collected. It is the overall operational pattern of the project that stipulates what information needs to be collected. The basic objective of research cannot be attained without a proper research design. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively. TITLE OF THE STUDY “An Analytical study of the European carpet company”. from which sources and by what methods.
the internet. The data is also neatly presented with the help of statistical tools such as graphs and pie charts. telephonic interview as well as the personal interview methods of data collection. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources. newspaper articles etc. Secondary sources These include books. Study area The study area is “European carpet company” located at BHADOHI. Plan of analysis Tables were used for the analysis of the collected data. They are primary and secondary data. the company website. 49 . .An Analytical study on Carpet Exports in European Carpet Co. Percentages and averages have also been used to represent data clearly and effectively. (Source: carpet council of india) Primary sources These include the survey or questionnaire method. product brochures. company brochures. competitor’s websites etc. Type of data collected There are two types of data used.
Question:. among carpet industry’s major player.Now the organization’s last year exporting budget is showing how organization is performing the business effectively and efficiently. and brand image. Question:.European carpet company is a manufacturer as well as exporter so that he can give good products and services to his client at reasonable rate.European carpet company has started its business with the capital of 5 lacks Rs.4.S. Question:.1. As the result it has good market in Europe and U. order. stability. Having a manufacture unit organization can deliver the much needed commodity to the customers. We can assume that organization is enjoying the maturity stage. it has very loyal customer in the same.European carpet companies has very long time experience for exporting. Ans:How long have you been exporting (in years)? 26 Years……. Which carpet products you are mainly exporting in the European market and U.3. Company has good opportunity to gain revenue as well as new market. Question:.An Analytical study on Carpet Exports in European Carpet Co. Carpet? Ans:Analysis:NO Is your company exporting products other than European carpet companie is only concentrating on the Carpet exporting business. And loyal customers give the good business.1 for highest value) Market (Kindly rank them in descending 50 .5.2. Ans:Both Are you (a) Manufacturer (b) Exporter (c) Both Analysis:.S. It has good market position. Ans:Total exports last year (in Rs)---- 100 crore Analysis:. It is specialized in exporting carpets and organization will be insured under the” CARPET COUNCIL OF INDIA “for the export. So. Analysis:. Therefore organization is able to do the business from past 26 years. Question:.
Why? Because in that place wool are easily available into the market and at low cost company give to that good look and better quality. Hand tufted Carpet Cut and pile carpet Machine woven carpet Broadloom carpet Sisal carpet 3 5 X X X Loop pile carpet Cut and loop carpet Flat woven carpet Outdoor Carpet Persian Carpet X X X X 1 Cut pile carpet Handloom carpet Berber carpet Wool carpet X 2 X 4 Analysis:. Have you started exporting any new carpet products in last 2 years? If yes. Question:. Have you stopped exporting your carpet products in any European market and U.European carpet company got high demand of woolen carpets. Wool Carpet Analysis:.S.6.Persian carpet is the core product for the organization. which products? Ans:YES. design to carpets which giving the higher demand. Question:.On the basis of given data we can find out that European carpet company has good product line.An Analytical study on Carpet Exports in European Carpet Co.7. market? 51 .
52 . carpet.An Analytical study on Carpet Exports in European Carpet Co. handmade etc. Reasons for stopping exports (Please tick Products Countries whichever applies) Low Erratic Competitio Demand Demand n Fluctuatin g Exchange Rates Hand tuffted Carpet Loop pile carpet Cut pile carpet Cut and pile carpet Cut and loop carpet Handloom carpet Machine woven carpet Flat woven carpet Berber carpet Broadloom carpet Outdoor Carpet Wool carpet Sisal carpet Persian Carpet Others (Please Specify) canada switzerland Analysis:. recessions the demand of loop pile carpet has come down because the prize of loop pile carpet is more than the Persian.European carpet company as stopped exporting loop pile Capet to Canada because of low demand. Dynamic change in the nature of customers.
Are you planning to start export of carpet products to some European and U.An Analytical study on Carpet Exports in European Carpet Co. countries where you have not been engaged so far? REASONS (Please tick whichever applies) Increasin Profitabilit Less Others g Demand y Competitio n Products Countries Hand tuffted carpet Loop Pile Carpet Cut Pile Carpet Machine woven Carpet Berber Carpet Broadloom Carpet Handloom Carpet Outdoor Carpet Wool Carpet Sisal Carpet Cut and Loop Pile Carpet Flat woven Carpet Persian Carpet Los vegas France 53 .S. Wool Carpet is more demanded by the customers because of climate in Switzerland. 8. Organization has stopped exporting cut pile carpet to Switzerland because of low demand and competition.
9. Which countries are major competitors in the export of Indian carpet products? (Kindly write the top to down) Ans:.European carpet company has expanded its market. Both countries have good buying capacity and economy so there must be profit. Question:. Question:. market? (Please tick whichever applies) Handloo mCarpet Lack of market demand Persia n Carpet Machine Woven Carpet Wool Carpe t Hand Tufted Carpet 54 . Mostly they are producing high quality products and at their costs are low than the Indian carpets.10. Now the company is exporting hand tufted carpet to LOS VEGAS and PERSIAN carpet to FRANCE. What are the reasons for declining demand of following products in the European and U. The reasons behind expanding the market in both countries are same because improvement in per capita income and standard of living demand has increased in both countries.An Analytical study on Carpet Exports in European Carpet Co.(a) (b) (c) (d) (e) China Egypt Nepal Pakistan Afghanistan Analysis:.S. Analysis:.These above countries are having very much small scale industries in which mostly hand crafted things are being made.
An Analytical study on Carpet Exports in European Carpet Co. Competition Low export prices Heavy duties Lack of Trade contacts Payment problems Higher shipping costs Non-tariff barriers Lengthy export procedures Restrictive import regulations Inadequate shipping services Others (Specify) 55 .
Analysis:. don’t Know/ Cannot Say = -9] Name of Scheme Are you aware of this scheme Have you utilized this scheme 2 1 Has it helped improve export performance 2 1 External Market Development Assistance Scheme Rejuvenation. are the some reasons for preventing the export.13. Bangalore . Government has implemented various schemes.Lengthy export procedure. restrictive import regulations. inadequate shipping services. 2 for no. Modernization and Technology Up gradation of the Carpet Industry Credit insures policey Export incentives Draw back policy 1 1 1 1 1 1 1 1 1 1 1 Krupanidhi Institute of Management education. Question:. please share your experience about those schemes [1 for yes.
4 for most important. 5 for least important and 0 if not applicable. Who are major buyers of carpet products in Europe and Multiple response possible.Major buyers of carpet products in Europe and U. Kindly rank them. Question:.European carpet company has information about available all the important schemes offered by the govt. Ans:. Buyers Importing firms Rank 4 Krupanidhi Institute of Management education.S. 3 for important. Bangalore .S. 1 for less important. U. 2 for average importance. for making export more friendly and profitable.14.Analysis:.
Individual firms Individual buyers Retail chains 2 2 3 Analysis:.Importing firms are the major buyer of the carpets in both Europe and U.S. The most important feature of importing firms are that they gives order in bulk. Payment is also not a big risk for the organization because organization will concern with one party regarding payment. U.S. After that retail chain buyers are the secondary they also give order into bulk because they cover the huge geographical market area in the particular country.so organization is concentrating mainly on the prime customers. market? Ans:NO Do you advertise your carpet product in European and Krupanidhi Institute of Management education.15. Question:. Bangalore .. Individual firms and individual buyers are the same in the nature.
Ans:.European carpet company use internet for business.16. 3 for average importance. 5 for least important 0 if not applicable] Newspaper Television Other (please specify 0 0 Internet Sponsoring events 0 0 Question:. If yes. Organization is using internet because world is changing rapidly and very fast. Ans:. Don’t Know = -9] Code Bad Experience Friction with authority Rejection of Consignment Rejected in one country but Accepted in another (if a bloc) 2 2 1 1 Krupanidhi Institute of Management education.18. Question:. Your past experience in the export markets : [Yes = 1. please rank means of advertising [1 for most important. No = 2.19. Bangalore . Company usually gets the order by the internet. Question:.YES Do you have a website? Question:. 2 for important.Analysis:-European Carpet Company don’t use advertisement because buyer don’t allow to show the models into the market directly.YES Do you use internet for business? Analysis:. 4 for less important.17.
20.Experience of the european carpet company is good.design.organization is achivieng the targeted goals in fixed time and still growing. Bangalore .etc) but it can be accepted by the another country.Your consignment got rejected but the same from other country with similar specification accepted Any Other (Specify_______________________________________________) 1 Analysis:. Some time products are rejected by the one country because of some reason(sudden lack of demand. (rank 1 = most important. 5=least important) Ran Market information Product improvement / adaptation Market studies Product design Export incentives Quality control Export finance Trade contacts Procurement of raw materials Marketing missions Packaging Export management training Other (Please specify) k 1 5 1 1 1 1 1 1 5 1 5 1 Krupanidhi Institute of Management education. Please specify areas in which you would require assistance to improve export performance. Question:.
Question:. Bangalore . Product design is also very important because need of the customer is changing rapidly and every organization wants to deliver the need of the current need of the customersIt also helps in making the brand into the market because of it’s unique product.For the sales point of view market information or knowledge is very much important because on the basis of the information organization can set the target market. target customers market study is required.21.Analysis:. state government. What kind of logistical support / assistance would you want to have from the Government of India. where it should move and where organization should make the strategy for the market penetration. Product positioning is also very much determined by the market knowledge. . It points out that where product is existing in the market. carpet board to help you in export enhancement? Krupanidhi Institute of Management education.
political risks. transit risks etc. Question:. Bangalore . Organizations have the expectation regarding income tax rate. Analysis:.Problems Non imposing of economics zone Higher interest of income tax Expectations Government should impose SEZ policy. Organization has the expectation in increment into the drawback policy of the government.This is the common expectations for every organization in the industry. What all are the exporting problems you face? 1): Insurance = A long procedure for claiming the insured amount.YES Krupanidhi Institute of Management education.23.Do you know about ECGC? Ans:.These are the problems which are faced by the European carpet company. 3): Transport = in transportation some problems are there like 4): Government Policies. Drawback facilities Govrnment should increase drawback rate with 15% . Not full claim of the losses. Question:. 2): Payments = In payments a lot of risks are there like commercial risks. Analysis:.Government has announced the economic zone but it has not imposed till the day .22. Government should give relieve in income tax rate.
Resale of unaccepted goods policies.what are the benefits of the ECGC? Ans:Question:.24. Risks coverage policy Number 1 2 1 2 3 1 3 a) b) c) d) e) f) g) Above problems are shown into the graph as under: Krupanidhi Institute of Management education. Commercial dispute policy. Waiting period of claim.EXPORT CREDIT GUARANTEE CORPORATION. important =2. High premium rate. least important =1) Ans:Problems Percentage of coverage. Question:. What are the problems of ECGC? Assign the number for the problems (most important = 3.25.Europian carpet company aware about the ECGC and using the benefits.Analysis:. Bangalore . Exchange rate fluctuation.
Bangalore . Risks coverage policy.Commercial dispute policy.Analysis:. High premium rate.Do you agree that given reasons are also effecting the export performances of the organization? Assign the number for the factors (most important = 3.26. Question:. important =2. Waiting period of claim.Percentage of coverage. least important =1) Factors Quality culture Information technology Human resource Number 3 2 3 Krupanidhi Institute of Management education. Exchange rate fluctuation . these are the problems which organization is facing. Resale of unaccepted goods policies.
Facility center Market intelligence Raw material 1 2 2 Analysis:.S.hrm. The company is trading in euro and U.. information technology. handmade.5 Summary of findings From the survey we find that a European carpet company is exporting Persian. 4. Krupanidhi Institute of Management education.Quality control. We can find that organization has started exporting some product into the new market because of new positive opportunities and stopped some product to the particular market due to some unfavorable reasons.facilty center. dollar.. carpet since 26 years in Europe and U. hand tufted etc.S. market intelligence. raw material are the some factors that effect the organizational export performance. They are delivering the current needs of the customers. Bangalore . European Carpet Company is performing both business activities manufacturing and exporting.
trade contact. Organization has emphasized the market studies. transports. Organization is exporting the products mainly to importing firm’s retail chains as well as individual firms. and carpet export council of the India but in matter of some schemes they are not utilizing the schemes up-to the mark. for the better improvement of the organization. Organization has own website and they are using internet facility for the business. Quality Control. Organization is concentrating more importing firms because of the payment. export incentives. Along with the benefits which organization is getting by the govt. If organization will get some reduction in the problem side definitely organization will do better and also enhance small scale companies. Organization gets bulk order from the importing firms and get the payments from one party it self. bank ECGC organization has some problem regarding payments. insurance. Raw material etc. Overall past experience of the organization is satisfactory. Krupanidhi Institute of Management education.g.Organization is aware about all the major schemes which is offered by the govt. for the improvement in the export performance of the organization. they send their designs to the council and after the approval they get the from buyer directly because of the maintain the secret of design they don’t advertise. A part from these organizations has some problems and organization wants some assistance from the govt. e. Bangalore . and several risks etc. quality control. Organization has some factors that affect the export performance of the organization. etc. Organization is not advertising the products directly into the market.
CHAPTER 5 SUMMARY CONCLUSIONS Krupanidhi Institute of Management education. Bangalore .
It is very important to maintain the proper service otherwise the chances of loose the customers will be high. I also come to know about the problems which are faced by the organizations in export.5. I also come to know about the procedures and documents of the export promotion. It also helped me to understand that exporting strategies differ from product to product. I also learnt that communication skills are very necessary for convincing the customers. I also come to know about the various policies and schemes of the govt. Krupanidhi Institute of Management education. I also learnt that the business and market condition are not always favorable for a product but it is the strategies that are adopted by the company make them excel in the unfavorable condition. Bangalore . riles & regulation and ethical behavior. We should follow the code of conduct. for export promotion.1 summary of learning experience: Apart from theoretical knowledge I got the practical knowledge about the export activities.
party address etc. will be happen by the both exporters and importers than their will be the problem. c) Organization should use the warehouse insurance because something misshapen will occur then their will be no risk. At the time of entering into the new Market some problems are their so embassy should help in this context providing all the assistance. if some mistakes like customers declaration . some time 10-15% cost deduct from the claim value. 5. e. There are lot of problems which wants some attention and action that can decrees the problem and enhance the export performance of any organization and along with this it can increase the foreign trade and currency that can make the balance in balance of payment balance of trade.) b) Not fall payment of the claim. export council make some arrangement which can reduce the problem of the organization.g. then their will be problem for the organization so. Some time they provide they should update the database of current importers information of that particular country.2 Conclusion and recommendation Export is one of the major businesses for the organization and country. d) Insurance company should take little span of time in the payment of the claim. packing list. In export procedure there are lot of document and procedure are their. firm registration. There problems in insurance recovery:a) Long documentation procedures (invoice. It make the balance of payment of the country. Krupanidhi Institute of Management education. f) Insurance company should decrease the premium on warehouse insurance plan. registration. if there is any single mistake. e) Insurance company should increase the grace period of the commodity. etc. Bangalore . I also come to know about the various steps of promotion that are adopted different by the company under different situations.
There are several schemes of payments: a) Payment against FOB value. Organization should use LC against bank guarantee payment scheme for the affective payment. Organization should assured quality through testing and inspection of raw materials. Organization should keep the information of the important raw materials. Diversification of product range. b) Document against payment. process and final products. c) Document against sight. Quality culture: • • • • Organization should make brand image. Krupanidhi Institute of Management education. Organization should remove the identified weakness and exploitation of identified opportunities and removal anticipated threats. Market intelligence: Organization should create dynamic database of the customers. d) Document against LC.g) These are the several methods of the payments which depends upon the terms and conditions. Bangalore .
Technology : Organization should adopt the contact review system through modern technology. productivity enhancement.R. Govt. should create the national design bank where in all individuals designers can become members and new design will be developed and it will enhance the carpet Indian image in the world. Organization should adopt modern dyeing equipment for cost effective and saving time.H.: Organization should recruit qualified workers. Organization should adopt modern carpet washing. echo friendly and socially accountable method for production. Process re-engineering: Organization should use process re engineering for cost control. Bangalore . regional and international level seminars and workshops. Organization should adopt product upgrading benchmarks. should cover the entire sector’s labor force through knowledge integration programmers under taken by the local. policies: Krupanidhi Institute of Management education. short term and training is required. drying and finishing system. National design bank: Govt. Organization should new pile technology. There are two govt. To cover the entire work force of the organization.
Drawback policy: govt. Transportation: There is lack of transportation e. Govt. should provide global interest rate up-to 365 days period both on post and pre. 6-7 % of export duty to the firm. The wagons should be attached with the passenger trains swift movements daily 4/5 wagons are required for this purpose so govt. has declared free economic zone but it has not imposed till the day so govt. Exemption from VAT and SALES TAX on the item is all most 100% exported out of country. should provide free duty for raw material. Govt. Govt. should increase the import duty 5-7%. should arrange the proper transportation channel. Organization should insure all the documentation of shipment and cargo deliver the product from warehouse.shipment. Krupanidhi Institute of Management education. Govt. Bangalore .g. should procure Flexible labor laws: Govt. provides 11% on above1000 sq yard and if its below than this govt. should provide 50% tax in relaxation. should increase the export duty rate from 11-15% than SSI will become more competitive. Organization should use the existing policy and import the raw materials for making good products. should open new weaving training centers. Govt. For enhancing the export in the country govt. provides 5% import license. should impose the free carpet industry.( there is no rail transportation for the goods from BHADOHI/ MIRZAPUR for shipments. Govt. Import license policy: under the VIKAS KRISHI YOJNA govt. All transported by trucks which are costlier and tax 4-5 days to reach.
ECGC should provide the schemes for exchange rates fluctuation. Waiting period should claim for decrease. Govt. Organization should have good infrastructure. ECGC should insure new export firm. Deduction in loss due to Re-sale of un-accepted goods. Percentage of recovery should improve. should start some welfare schemes for carpet industries. ECGC should provide the scheme for political and commercial risks Krupanidhi Institute of Management education. Premium is to high as compare to another insurance provider. ECGC should provide schemes for commercial disputes. Organization should have primary focus on customer needs and satisfaction which are helpful for the business success Organization should use the ECGC benefits. RECOMMENDATION FOR ECGC: Make the policies simple in the terms. Bangalore . So decrease the premium amount.
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