CIA 3

GLOBAL BUSINESS (BFIB441A)

Presentation on Export Promotion Measures
Prof. Manikandan MKM

Bachelor of Business Administration in Finance and International Business School Of

Business and Management Studies

Bangalore, India

Submitted By:

Harushika Mittal (2123658)

Siddharth Garg (2123634)

Jiten Bothra (2123518)

Darshan Shah (2123511)

Srijan Garodia (2123545)

 Jiten Bothra (2123518)

EXPORTERS IN THE TEXTILE AND COAL INDUSTRY

QUESTIONNAIRE FOR TEXTILE INDUSTRY-

Q1. For a Textile Industry, India is not a great place because of the lack of infrastructure plus
India is a labour-intensive? So, what motivates you to export from India?
Q2. As so many challenges are there in the Country, please explain few of them?
Q3. What are the schemes government is providing for the betterment of the textile business?
Q4. According to you, what are the measures which can improve Indian Textile Industry?
Q5. Can you please explain the EPRG framework in the textile industry and how does it is
important to the industry?
Q6. For textile Industry what is your thought about how it will grow in the future and what’s
your expansion plan?
Q7. How does Covid-19 affect the textile market in Jaipur and in India too?

QUESTIONNAIRE FOR COAL INDUSTRY-

Q1. Tell me about your company (location of export, items exported, etc.) and why it got into
the export business. (What was the motivation?)
Q2. What are the different issues and challenges that are faced in your export business (at a
global level as well as in India)?
Q3. How would you rate the export policies of the country and suggest any changes you
would like to see (legal, regulatory) to increase the ease of doing business?
Q4. What are the measures taken by your company to improve your export business and
address the challenges that you are currently facing?
Q5. What are the future plans of your business regarding expansion, do you plan to expand to
more countries? If yes, which countries are on your company’s priority list?

INTRODUCTION

Taanya Krafts

Taanya Krafts is an MSME textile exporting company based in Jaipur. Driven by a

fascination for all things creative and colourful, founder Meeta Mathur and her husband
established Taanya Krafts in 2004, a design-based home furnishing export house that uses
innovative resources and contemporary designs.
Since then, ma'am has shared her passion for creative and personal ways of keeping the home
sphere ever-changing, dynamic, colourful and per international trends.

In 2012, Taanya Krafts ventured into making fine quality fabrics for Hospitality Industry,
making sure every guest enjoys a good night's sleep. Their efforts in sourcing the suitable
yarn/ fabric for superior feel, texture, and longevity were well received and appreciated by
luxury hotels across the globe. The company has been trading good quality bed and bath
linen, including bed sheets, cushion covers, bolsters, bath robes etc.

With the twin focus on quality products and timely execution, Taanya Krafts soon boasted of
some reputed clients in the US, Canada and Europe.

Product Range

1) Bath Linen: Robes, Towels and Mats

2) Kitchen Line: Towels and Napkins

3) Baby Products: Blankets, Throws etc.

4) Bed Linen: Bolster, Cushions, Covers, sheets

5) Bags

Beyond helping people make their house a home, Taanya Krafts strives to make every
purchase a positive and satisfying experience. Its top priorities are excellent customer service,
rapid order processing at the lowest operational cost and ultra-fast shipping times. The
company values its customers' time and trust and continuously works to improve their
experience.

Meeta Mathur

Mrs Meeta Mathur is the director of Taanya Krafts. She is generous and sweet enough to take
time out from her hectic schedule and sit for the arranged interview. Being in the export
business for almost eighteen years now, she has a plethora of knowledge and experience in
the industry. She has helped in many ways in the start-up ecosystem. She gives good ideas to
implement to get better results. Her networking skills are amazing; she can lead any group of
people of all ages.
She entered the business after completing her MBA in marketing from Jodhpur, Rajasthan.

She is also the founder of Big Ladder, India and is a life, career and communication coach.

MOTIVATION FACTORS TO EXPORT

Scope in the Garment Industry

In India's textile sector, 4.5 crore people are employed, including 35.22 lakh handloom
workers. India's apparel sector produced 7% of the nation's overall industrial production in
2018–19.
In addition, the Indian textile and apparel sector held 5% of the global textile and apparel
trade in 2018–19, contributed 2% to GDP, and generated 12% of export income. The value of
clothing exports from April to October 2021 was US$22.89 billion.
The Indian textiles market is anticipated to reach about US$ 209 billion by 2029. The amount
of Cotton used in FY21 is projected to be 114 million bales, an increase of 13% from the
amount produced, or 37.10 million bales.
The Indian textiles market is anticipated to reach about US$ 209 billion by 2029. The amount
of Cotton used in FY21 is projected to be 114 million bales, an increase of 13% from the
amount produced, or 37.10 million bales.
Government Initiatives

The Indian government has developed several programmes to encourage the export of
clothing. The automatic process has also permitted 100% FDI in clothing export. The PLI
plan, which costs Rs. 10,683 crores (US$ 1.44 billion), was anticipated to boost textile
manufacturers significantly.
and affordable labour are all factors that contribute to its robustness and sustainability.
Background in the same industry

While talking to Ms Meeta, she said that after completing her MBA, her first job was in an
export firm that used to sell products to the middle-eastern countries. Before setting up
Taanya Krafts, she learnt about the concepts of exporting in her job itself. Moreover, she took
a short course in EXIM (Export and Import Management), which helped her brush the
requisites for export business. She belongs to a non-business family, and this is their first
generation to set up the company. It wasn't easy, but the challenging nature of the industry
over domestic production motivated them to establish the business. They started by
producing high-fashion garments for India but expanded to exporting them after a colleague
from New York demanded bath and linen garments from India.
Cotton Production in India

India is one of the world's largest producers of Cotton. It is one of the most significant crops
in the nation. Over 5.8 million farmers in India currently make a living from farming Cotton,
and millions of people are employed in the cotton sector. India has been producing Cotton for
textiles for thousands of years.
Taanya Krafts primarily source the best quality cotton from cities like Ludhiana, Coimbatore,

Kanpur, Vaapi etc. They pitch for the various types of Cotton with the options that they have
to their buyers. Once they receive the orders, they try to negotiate the time and price with the
sourcing companies. Initially, Taanya Krafts sources from other countries like Pakistan,
Bangladesh, etc. However, they have now stopped the import and restricted the sourcing to
India.

SOURCES OF FINANCE FOR THE TEXTILE INDUSTRY-

There are several sources of finance available for textile companies in India, including:

Banks and Financial Institutions: Textile companies can obtain funds from banks and
financial institutions in the form of loans, overdrafts, and working capital finance.
Venture Capitalists: Venture capitalists can provide funding to textile companies in exchange
for a share of the ownership or profits of the company.

Private Equity: Private equity firms can provide funds to textile companies in exchange for a
stake in the company.

Government Schemes: The Indian government has several schemes in place to provide
financial assistance to textile companies. These include the Technology Upgradation Fund
Scheme (TUFS), Integrated Textile Parks Scheme (ITPS), and the National Handloom
Development Programme (NHDP).

The Indian government plays a significant role in supporting the textile industry through
various measures, including:

Financial Assistance: The government provides financial assistance to textile companies

through various schemes such as TUFS, ITPS, and NHDP.

Tax Incentives: The government offers tax incentives to textile companies, such as
exemptions from excise duty and customs duty on imported machinery.

Infrastructure Development: The government has taken several measures to develop

infrastructure in the textile sector, such as setting up textile parks and modernization of textile
mills.

Skill Development: The government has launched various skill development programs to
improve the skill set of workers in the textile sector.

CHALLENGES FACED BY TAANYA KRAFTS

While interviewing Ms Meeta from Taanya Krafts and asking about the challenges that she
faced while operating the export business, she responded with the following challenges:
Increase in cost of raw material

Especially after the Covid-19, the prices for Cotton shot up tremendously, making the overall
production cost for the business very high. Additionally, prices have increased due to the
shutdown of numerous units in China due to pollution regulations. The cost of dyes and
machines has increased due to imported raw materials. This was one of the major challenges
Taanya Krafts at the source level.
Pressure to meet stringent environmental and social norms

Environmental compliance isn't always the primary priority for exporters of textiles and
apparel. As demand grows for the apparel industry to strengthen environmental compliance
efforts, failure to comply with environmental rules might jeopardise the supply chain. As
Taanya Krafts deals mainly in the American and Canadian regions, the different climatic
conditions and environmental requirements pressure routine trading. And they must comply
with the norms of the respective regions.

Infrastructural-Bottlenecks

India's poor infrastructure continues to be inferior to several other Asian nations. The
infrastructure of the ports causes unnecessary delays in the delivery of the products.
Irrespective of the products departing on time from the production unit, congestion at the
Indian port or American port, unavailability of ships, and containers, delay the delivery and
consumes unnecessary time.
Lack of efficiency due to manual work

Unlike in developed countries, textile factories in India are not fully automated and remain
labour-intensive. This consumes more time than it should take. Additionally, Ms Meeta told
us how the labour class goes on leave for eight days for a one-day festival like Raksha
Bandhan. Therefore, the absence of efficient labour and automated factory outlets poses a
significant challenge for the business.
Unorganized weaving sector

In India, the weaving industry comprises over 95% unorganised labour. 85% of the world's
total fabric production is contributed by the decentralised power loom and hosiery industries.
India barely accounts for 2% of the installed capacity of shuttle-less looms globally regarding
technology adoption in the weaving industry.
Lack of Funds

Ms Meeta confessed that she did not belong to a business class family and therefore did not
have the backing of funds to start the export business. Thus, all the investments they made to
start the business were from their hard-earned money and savings. The increased cost of
Cotton, shipping, other raw materials, labour etc., led to the further aggravation of the
problem.
Inefficient Credit Facility from the Government

Since Taanya Kraft did not have its manufacturing unit, it brought in the whole process of
creating the products by bringing multiple operation-based activities under one roof. The
government was not willing to grant it a considerable amount of loan. This restricted them
from diversifying and expanding as much as they wanted to.
Covid-19

The world went through the problem, and so did Taanya Krafts. There have been times when
Taanya Krafts pitched for Cotton and committed to delivering the products to the buyer.
However, it does not have the funds to source the raw materials required due to inadequate
credit facilities from the government. This creates a very stressful working environment for
the
Need for Skill Development Programmes & Technology Upgradation

Although the textile industry is one of the world's largest and most important industries. It is
one of the worst adopters in adopting new technologies and digitising.
High Competition & Cheaper Substitutes

China is the biggest competitor for India when it comes to the textile industry. Moreover,
better labour and technology have enabled it to get cheaper material than Cotton with better
quality. This can pose a threat to India and its cotton textile industry.

GOVERNMENT SCHEMES AND EXEMPTION FOR TEXTILE

INDUSTRY-
The Indian government has launched several schemes and provided exemptions to promote
the growth of the textile industry in India. Some of the major schemes and exemptions are:
Technology Upgradation Fund Scheme (TUFS): TUFS was launched in 1999 to support
the modernization and upgradation of textile machinery and technology. Under this scheme,
textile companies can avail of a capital subsidy of 15% on the investment made in new
machinery and technology. The subsidy is capped at INR 30 crore for a single unit.

Integrated Textile Parks Scheme (ITPS): ITPS was launched in 2005 to develop modern
textile infrastructure across India. Under this scheme, the government provides financial
assistance of up to 40% of the project cost, subject to a maximum of INR 40 crore. The
scheme aims to develop textile parks that provide world-class infrastructure facilities and
common facilities like design centers, training centers, and testing centers.

National Handloom Development Programme (NHDP): NHDP was launched in 1994 to

promote the development of the handloom sector.. The government provides a subsidy of up
to 90% of the project cost for implementing new projects and upgradation of existing ones.

Textile Sector Skill Council (TSC): TSC was set up by the government in 2013 to provide
skill development training to workers in the textile industry. The council aims to bridge the
gap between the demand and supply of skilled workers in the textile sector. The government
provides financial assistance for training programs conducted by TSC.

Exemptions: The Indian government provides various exemptions to textile companies to

promote the growth of the industry. Some of the major exemptions are:

a) Exemption from Excise Duty: The government has exempted textile products from
excise duty, except for a few items like branded garments and made-ups.

b) Exemption from Customs Duty: The government has exempted the import of machinery
for the textile industry from customs duty.

c) Interest Subsidy: The government provides an interest subsidy of 6% on the loans taken
by textile companies for capital expenditure.

MEASURES TO IMPROVE THE EXPORT BUSINESS

At the Company Level,
Marginal Time

Given the delays caused due to lack of infrastructural development, Taanya Krafts ensures
that it keeps a marginal time of around 10-15 days for delivery. For example, if the expected
delivery time is 60 days, it asks for 85 days with 15 days as buffer time. This does not ruin
the company's relationship with its foreign customers and helps it maintain its goodwill.
Negotiate with the Counterparts

The commitment issues the company has been facing in terms of lack of funds for sourcing
raw materials. Taanya Krafts ensures that it negotiates with the buyer for the time and pricing
beforehand and plans the quantity to be sourced from the domestic markets.
Hire and Retain Efficient Manpower

Not more than 1/3 of employees of Taanya Krafts are allowed to take a leave. The company
has tried to maintain the quality of manpower with appropriate skillsets to increase the
business's overall productivity. They schedule the workforce correctly as per the received
orders.
At the country level,

Fluctuation in the prices of Yarn

To assist the textile industry expand and adding jobs, the government should set yarn pricing
for the entire year. The poor farmers will gain the most from the price fixation. In turn, this
will benefit the economy's sectors closely tied to agriculture.

Research and development

Research and development are among industry's most important components of growth.
Government funds for technology adoption and skill development programmes for the overall
industrial sector of India can produce wonders if used properly.

Adaptation of modern equipment

The government should remove or reduce taxes on the import of modern equipment and
Government subsidies. The government can play a major role in vertically and horizontally
industry growth. Young entrepreneurs and New Business People should be given loans and
subsidies to lure them into this sector.

Capital subsidy

The weaving sector is getting a subsidy of 10% subject to a cap of 20 crores under ATUFS,
whereas, for garments and technical textiles, the subsidy is provided at 15% subject to a cap
of 30 crores. The Government of India may provide some enhanced subsidy under ATUFS,
for select players, purely on an outcome basis.

Energy Requirements

The government needs to start building new dams to overcome this menace of energy
shortage. Without energy, no step for the betterment of the textile industry is viable. The
government has started working on the CPEC with the help of China, through which the
Chinese government is spending 34 US billion dollars only on energy projects. Moreover, a
Constant gas supply with suitable pressure is very important for the growth of the textile
industry.

Simplification of the Overall Process

India reduced the number of mandatory documentations needed for exports in 2015. Due to
the requirement for supplementary documentation, the paperwork burden is still very heavy.
In its 2019 economic review of India, the Organisation for Economic Cooperation and

Development (OECD) recommended significantly reducing the number of export paperwork.

Additionally, less time is required for documentation and customs compliance. Additional
activities may be taken to aid in overcoming the difficulties encountered.
• Releasing shipments before customs duty has been finalised

• Restricting new pre-shipment inspection requirements

• Lowering the penalty for customs breaches that the trader voluntarily discloses
• Reducing the number of documents and digitising their submission
Cutting Tariffs

The consensus is that India's policy of imposing high import tariffs to safeguard home
industry is ineffective. Additionally, undermining the prospects of exporters who depend on
imported materials reduces the competitiveness of domestic firms. The World Trade
Organization demanded that tariffs be reduced and made more transparent and predictable in
its most recent trade policy review for India.

Improving Credit Access

The Indian government has promised exporters over the past two years that credit insurance
premiums will be reduced, funds under the Export Credit Insurance Scheme will be disbursed
more quickly, documentation requirements will be eased up, and interest rates and premiums
for small businesses will be reduced. Following a 45 per cent decrease in export credit
disbursal by public sector banks in 2018–2019, assurances were given. Despite the
assurances, India still has limited access to export finance. The promotion of financial
assistance programmes among exporters must be proactive.

• Create a single window system so all applications, documentation, clearances,

approvals, and discrepancies can be resolved at a single point. This would save
exporters both time and money while availing of credit.
• Come up with export credit products customised for the needs of MSMEs.

Modernise and Expand Ports

To modernise current ports, build new ones, improve port connectivity, and usher in port-
linked industrialization, India launched the SagarMala Programme in 2015. The program's
574 projects have a 2035 end date. These kinds of initiatives would undoubtedly promote the
growth of the export sector.

Reduce turnaround time and Improving Road connectivity

To speed up the export process, it is essential to cut the 2.59 days it now takes for cargo to
enter and exit Indian ports. The government's intention to cut turnaround time to one to two
days (the average for the world) by 2022–2023 is a positive move.
At the moment, India is constructing 30 kilometres of highway per day. This is related to the
BharatMala Program's goals, which include developing 9,000 km of economic corridors for
enhanced connection between manufacturing hubs and export centres and port connectivity.

FUTURE PLANS

Expansion in new regions and Countries

Taanya Krafts is looking forward to expanding, especially in the following countries:

• Middle Eastern Countries, Comprehensive Economic Partnership Agreement (CEPA)

between India and the United Arab Emirates (UAE) strengthens the dominant position
of India in terms of apparel in the UAE. It provides an incentive to explore the market
more.
• European markets- Romania, Hungary and Estonia: Europe has a strong, growing
apparel market. Apparel imports from developing countries are increasing faster than
the EU's general import rate. Additionally, the growing hospitality sector of Europe
would help Taanya Krafts market its bed and bath linen.
• Scandinavian countries like Finland, Norway, and Sweden: India is one of the biggest
textile exporters to most Scandinavian countries. This provides Taanya Krafts with a
ready-made base to grow in this direction.

Collaborate with Hotel Chains and Wholesalers

Taanya Krafts wishes to collaborate with bigger hotel chains and wholesalers abroad to
receive bigger orders. The major products sold by the export company are bed linen and bath
linen which hotels in large quantities mostly use. Collaborating and fixing orders with such
chains would get huge and secure revenues for the business.

Improving the quality

Ms Meeta also said that the company is looking forward to improving its products' quality by
sourcing raw materials from new locations and exploring them in relatively smaller quantities
initially. This will automatically attract more customers and help the business to leverage its
overall sales.
Shortening the turn-around time

Turn Around Time refers to the total time interval present between the time of process
submission and the time of its completion. Taanya Krafts wants to reduce the turnaround time
by ensuring a reduction in delays from their end at least to receive maximum orders.

New Trends in the Hospitality Industry

Newer trends like Staycation and Workcation would also help businesses like Taanya Krafts
to prosper as these trends require staying in a hotel. Moreover, Hotel Corporate meetings, big
fat weddings etc., have contributed to the growth of the Hospitality industry, which will
indirectly help the commodity textile industry.

Ecommerce/Catalogue selling

Meeta ma'am is also willing to diversify her business through Omni-channels like
ECommerce, Social Media selling, and Catalogue selling. This will provide her with multiple
mediums of expression to make appropriate sales. Collaborating with numerous E-Commerce
sites can provide her with the appropriate opportunities.

CONCLUSION

Interviewing Ms Meeta from Taanya Krafts provided a plethora of knowledge and

experience-based learning of the international business. The willingness of Taanya Krafts to
expand and keep up with its best quality is commendable.

APPENDIX
 • Visiting Cards

• Website: https://taanyakrafts.com/

COMPANY PROFILE
Coal India

Coal India is a Government Company, the single largest coal producer globally. It is a mining
corporation which employs as many as 2,59,016 people in India, making it the largest
corporate employer (as of 2021). Coal India Limited has 345 mines (as of 1st April 2021), of
which 151 are underground, 172 open cast and 22 mixed mines. CIL has 20 training institutes
and 86 Vocational Training Centres. The Indian Institute of Coal Management is a state-of-
the-art training institute touted as a ‘Centre for Excellence’ and the largest Corporate Training
Institute in India. It offers many interdisciplinary courses.
CIL is classified as a Maharatna company. ‘Maharatna’ is a rank of privilege accorded to
specific Public Sector Units to empower them to expand their operations and emerge as
global giants. Out of 300 public sector units, there are only ten select companies in this elite
club. CIL has seven producing subsidiaries broadly classified according to geographic
locations in which coal is present. These are namely Eastern Coalfields Limited (ECL),
Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Western Coalfields
Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields Limited
(NCL), and Mahanadi Coalfields Limited (MCL). Apart from these producing companies, it
has one mine planning and consultancy company called CMPDI (Central Mine Planning and
Designing Institute). In addition, CIL has a foreign subsidiary in Mozambique, namely Coal
India Africana Limitada (CIAL). Coal India has also forayed into renewable energy, keeping
in mind climate change and the emission targets set by the country. It has incorporated two
subsidiaries to further its ambitions, i.e., CIL Navi Karniya Urja Limited to develop non-
conventional/clean & renewable energy and CIL Solar PV Limited to develop the solar
photovoltaic module.
Why is Coal India strategically relevant?

CIL is a strategically relevant firm as 57% of the primary commercial energy of the country
comes from thermal power, which is generated via coal. The share of coal is expected to
remain at 48-54% by 2040. Coal India also shields the Indian consumer from price volatility
by supplying coal at discounted prices to the International Market. It aims at making the end-
user industry globally competitive under the tenets of Make in India. Coal India and its
subsidiaries act as both B2B and B2C companies.
About the person

The person interviewed is Mr Rishi Kumar, a deputy manager at Coal India. He belongs to
the sales department and looks after the company's domestic and international sales. He is
currently posted in the 7th Regional Institute of the Central Mine Planning and Design
Institute located in Bhubaneswar, which acts as the consultancy arm for Coal India.
The Export Business of Coal India

Coal India, a PSU, is the world’s largest coal producer. The company indulges in the
production as well as selling of coal. As India is a growing economy, the energy demands are
ever-growing, so the majority of what is being produced is consumed within the country.
Unfortunately, India is a net importer of coal. The company’s coal exports are mainly a
diplomatic move since it is a PSU dictated by Central Government policies. Coal is primarily
exported to neighbouring countries like Nepal, Bhutan and Bangladesh. Nepal stands at the
number one position in the country to which India exports the maximum amount of Coal. The
second position would be Bangladesh and then Bhutan.
Nepal and Bhutan have an agreement regarding the export of Coal. This agreement is under
the Open General Licence list. The trade that is being conducted is made via the Indian rupee.
The business with Bangladesh is done in US Dollars. So, a currency swap where a rupee
system works in Nepal and Bhutan and a Rupee – USD system works in Bangladesh while
exporting coal. Export of coal to the neighbouring countries was earlier canalised through the
Mineral and Metal trading Corporation, but for the last few years it has been decanalised.
Export of coal by CIL is made through the tender route.
India is looking forward to a neighbourhood-first policy wherein 3% of its total annual
production would be set aside for exports. To counter China, one of the major exporters of
coal and its growing influence in South Asia, the Indian Government has directed Coal India
to set aside a certain percentage of its total export production. However, as mentioned in the
interview, this has not been possible due to the growing dependency on coal.
This move will also expand Coal India’s revenue streams and increase alternative revenue
sources. The coal exported internationally has a price 60 – 70% higher than the coal being
sold by Coal India. By increasing exports, Coal India would be able to increase its profits.
TABLE 1.1: Amount exported to different countries
Country The amount exported (in metric tonnes)
Nepal 6,17,600
Bangladesh 104320
Bhutan 78080
Total 8,00,000
SOURCE: Self Constructed

TABLE 1.2: Top ports for exporting coal from India

Port Value (INR Million)
Kolkata Sea 158.946
Petrapole Road 157.083
Bombay Sea 137.544
Nhava Sheva Sea 87.942
Bangalore ICD 42.71
SOURCE: Self Constructed
SOURCES OF FINANCE-
The coal industry in India is a major contributor to the country's energy needs and plays a
critical role in the country's economic growth. Coal companies in India require large amounts
of capital to invest in exploration, mining, and processing activities. Some of the major
sources of finance for the coal industry in India are:
1. Equity Finance: Equity finance is one of the primary sources of finance for coal
companies in India. Equity finance involves raising capital by issuing shares of the
company to investors. Coal companies in India often raise equity finance through
Initial Public Offerings (IPOs) or private equity investments. One of the prominent
examples of coal companies in India that raised equity finance through IPO is Coal
India Limited, which raised INR 15,000 crore through its IPO in 2010.
2. Debt Finance: Debt finance is another major source of finance for the coal industry
in India. Coal companies can borrow funds from banks and financial institutions in
the form of loans, bonds, or debentures. Debt finance is a popular choice among coal
companies as it allows them to access large amounts of capital at lower interest rates
compared to equity finance. One of the prominent examples of coal companies in
India that raised debt finance is Singareni Collieries Company Limited, which raised
INR 1,500 crore through bonds issued in 2019.
3. Public Private Partnerships (PPP): Public Private Partnerships (PPP) is a model
where the government and private sector collaborate to fund projects. The PPP model
is widely used in the coal industry in India to fund infrastructure development projects
such as building coal handling plants, railway sidings, and coal transportation
systems. For instance, Mahanadi Coalfields Limited (MCL) has entered into a PPP
with Indian Railways for the development of rail infrastructure for transportation of
coal.
4. Government Support: The Indian government provides financial support to the coal
industry through various schemes and subsidies. One of the major schemes is the Coal
Mine Development and Production Agreement (CMDPA) that provides financial
assistance to private coal companies for exploration, mining, and production of coal.
Additionally, the government provides subsidies for the development of infrastructure
such as railway sidings and coal handling plants. For example, South Eastern
Coalfields Limited (SECL) received a subsidy of INR 160 crore from the government
for the construction of railway sidings.
MOTIVES FOR EXPORT
1. Government orders – Since Coal India is a PSU, Government orders are the main reason
behind the company exporting coal. The Government decides the countries, amount, etc.
Export relations are made and broken according to Government directories.
2. Diplomatic and Trade relations – Coal is an essential mineral. Many developing nations
are dependent primarily on Coal. Due to the Russia – Ukraine war, Russia reduced the oil
supply to Europe, forcing them to restart a few of their mines. Coal is of strategic
importance, and according to whose directions Coal India functions, the government
understands that. Therefore, to build strategic relations and diplomatic ties with the
country’s immediate neighbours and build partnerships, Coal India got into exporting
coal. China has emerged as a direct threat in South East Asia, and thus, India is using coal
strategically to challenge China, one of the major coal producers.
3. Renewable energy – As India is looking forward to becoming a net carbon-negative
nation by 2070, it is looking at alternative solutions to coal as a source of power and
energy. This would free up the coal sector from domestic demand and allow for more
exports to developing nations that are not in a position to adopt renewable energy sources
ultimately. Domestic demand is the most significant factor hindering the export of coal.
As industrial activity increases, the production and supply of coal also need to be
increased.
4. Competitive prices – Since Indian non-coking coal has high ash content, it is not up to
par with the international standards with respect to coal. However, with lower quality
comes lower prices. Developing countries or poorer countries that cannot afford global
coal at higher prices are more than keen to get Indian coal at much lower prices. Since
India uses thermal grade coal, it does not have much use for non-coking coal. Therefore, a
large quantity of non-coking thermal coal can be exported to land-locked, developing
nations in South East Asia, the Middle East and Africa.
ANALYSIS OF REASONS FOR EXPANSION
Coal India’s potential to increase coal export beyond diplomatic ties depends on these
significant factors.
1. Internal coal demand – In comparison to India’s resource base, India’s coal demand
is relatively higher. This puts a lot of pressure on Coal India to produce and supply
coal domestically. Since the quality of Indian coal is also below international
standards, i.e., it has higher ash content, the amount of energy produced by the same
amount of coal (domestic and international, respectively) is different. Domestic coal
will produce less energy and more ash. Thus, before exporting, internal demands have
to be satisfied. Being a government company, the company is answerable to the
public and the Ministry of Coal during coal shortages.
2. Capacity and cost to increase Coal quality by beneficiation - The techniques used
to remove inorganic impurities from raw mined coal to improve the fuel's combustion
properties are known as coal beneficiation, or coal preparation. This would
significantly help improve the quality of coal.
3. Railroads and ports – India exports to its neighbouring countries primarily because
of the transportation facilities and easy accessibility. Coal India would have to partner
up and invest in building railroads and ports (logistics and supply chain) to expand
into other countries. The interview showed that the company wants to expand into
South East Asian countries after the degradation of Indonesia’s coal exports. To
develop into South East Asia and further beyond ports would be of extreme strategic
importance to the country as well as the company.
4. Increase in coal import demands – Countries where coal could be exported are
experiencing an increase in coal import demand. The primary reason behind this is
current global scenarios. Due to Russia reducing oil exports to European nations, they
are falling back upon coal. However, their mines have remained unused for a long
time and therefore are not fit to produce coal at such short notice. It is easier to import
for them. Disruption of supply chains has also left many countries looking for
alternative sources to import coal. Many countries are looking to wean away from
China owing to its suspicious policies (debt trap). Thus, it is a prime opportunity for
Coal India to step in and increase its exports. Four nations, Japan, South Korea,
Taiwan and Hong Kong, import 90% of steam coal in Asia and are a significant
market opportunity for expansion.
 5. Anticipated market share in export markets identified as feasible and achievable
-Further expansion would only occur if the identified export markets turn into
opportunities for the company. They can export even further when Coal India grabs a
significant market share in these countries. There is scope in the Asian market to
accept exports of 15 to 20 million metric tonnes in the next ten years.
6. Management and institutional considerations – Restructuring government
institutions and significant management policy changes will have to be made to
achieve desired export capacities. It removes export restrictions, tax schedules,
privatisation of the coal and power industry, and proper rehabilitation and
resettlement. R&R is almost a sinking cost and requires a lot of funds. If not done
correctly it leads to problems with the Environmental group and Naxals. Since most
of India’s coal-producing sector is situated in the Naxal belt, it adds a significant
roadblock to production and reduces the efficiency of the mines.

Thus, India has the potential to become a significant exporter of Coal in the next 15 to 20
years in the Asian Market. Raniganj and Jharia coalfields have higher quality coal with low
sulphur and ash content. Efficient mining of the same would increase coal exports as well.
ISSUES AND CHALLENGES
1. Better quality of Coal – Countries like Australia, Indonesia, Russia and South Africa
have a better and higher quality of coal in their possession. They produce Anthracite
coal, whereas India mainly produces bituminous coal. Anthracite coal consists of 85%
carbon content, whereas bituminous coal consists of 50 to 85% carbon. Anthracite
coal is the highest grade of coal. Coal produced in India is lower in quality and has
higher ash content.
2. Higher internal coal demand – Due to increasing power demand within the country,
the amount of coal produced in the country is mainly consumed internally. The power
crisis in the country post-Covid, where only nine days of coal stock was left in many
states instead of the required 25 days, is proof of increasing demand. Coal India is
under constant pressure to increase coal production for the domestic sector.
3. Bureaucracy – Coal production from Coal India’s departmental mines is low. As
candidly expressed by Mr Kumar, Coal India is not particularly efficient in producing
coal. The company needs to use technology to increase productivity. One of the
challenges mentioned later on in the interview is transportation. The company is
going for the upgradation of mechanised coal transportation and loading systems
 under the ‘First Mile Connectivity’ projects. Other measures include increasing
additional capacity through special dispensation in Environment Clearance under
clause 7 of the Environmental Impact Assessment Act 2006. To hasten the
operationalisation of coal mines, the Union government introduced the Single
Window Clearance platform for the coal industry on January 11, 2021. It is a
centralised platform that simplifies the process of granting licences and approvals
needed to start a coal mine in India. According to the minister, the entire procedure
will be made easier through the Single Window Clearance Portal, which will map the
appropriate application types and the procedural flow for granting approvals or
clearances.
4. Environmental Challenges – Globally, the company faces several environmental
challenges internationally. The world is moving towards a net carbon negative
approach, and coal companies abroad are facing a lot of protests. Countries like
Germany and Sweden have shut their coal mine,s and we can learn from Adani’s
example on the level of protests against the company by environmental groups in
Australia. Vested interests aside, when the world is moving toward renewable energy,
it can pose a significant challenge to coal exports and expansion plans.

REGULATORY PROTOCOLS
The export of coal, like any goods or services, is guided by the Foreign Trade Policy of our
country. Both the Central and State governments jointly manage it. The proprietary title rests
with the federating states while the Centre has jurisdiction over Mines and Minerals
development.
a. Open General License Agreement: There is an Open General License Agreement
with neighbouring countries like Bangladesh, Nepal and Bhutan.
b. Spot E-Auction – The company had an embargo on exporting Coal, which was
procured under Spot E-Auction. However, this clause was amended, and the coal
procured under e-auctions can now be used domestically and exported. However, in
the case of exports, the onus for complying with Government rules and regulations
lies solely with the exporter of the product. The embargo has been lifted by Coal India
Limited on the export of coal in two spot auctions. This is being done to rake in more
profits, encourage participation and thus book higher volumes on its spot e-auctions.
In a significant policy change, CIL now permits domestic buyers, including
merchants, to export coal purchased via spot e-auction. Although Coal India will not
 directly export the coal, a positive response to the exports by domestic traders would
provide the company with confidence and perspective regarding coal exports. This
would give valuable data to Coal India limited to improve and expand coal exports.
c. The Export of Coal can be via three routes:
 Through a bilateral agreement between two countries
 Through the bidding route
 Through mutual agreements between two entities
d. The Ministry of Coal, Government of India, appoints a designated authority for
facilitating the process of approval and laying down the procedure of export of Coal. Any
other entity proposing to export coal has to do so after the approval of the designated
authority. However, when imports or exports are made in accordance with an Inter-
Governmental Agreement signed between India and a neighbouring nation for a specific
project, the Designated Authority's approval won't be required.
Export of Coal without payment of duty - The miner–exporter has to obtain Central
Excise Registration from the proper authority under whose jurisdiction their coal mining
activities fall. A Letter of Undertaking must be submitted to the Deputy/Assistant
Commissioner of Central Excise having jurisdiction over the mining area or depot. An
Excise invoice under rule 11 of Central Excise Rules 2002.
Merchant Exporter - The exporter has to necessarily execute a bond with the
jurisdictional Deputy / Assistant Commissioner of Central Excise before export takes
place. The bond can be executed by either the Merchant-exporter himself or the Coal
Mine Owner on behalf of the Merchant-exporter. General Bond form B-1.
Export of Coal after payment of duty - The Miner-Exporter shall remove coal under
cover of an invoice in accordance with Rule 11 of the Central Excise Rules 2002 after
receiving registration from the Central Excise authorities. ARE Form 1 must be used.

COMPANY’S PERSPECTIVE
The company feels there is much room for improvement from a legal and regulatory point
of view. The company has to undergo extensive bureaucratic procedures to export coal.
This leads to a loss in time as well as a competitive advantage. A lot of rules and
regulations must be followed to export coal.
However, the company believes that it is improving. Using spot e-auctions, Mr Kumar
explained how this increased the country's coal exports and production. As mentioned
 above, spot-auctioning has increased bulk exports to neighbouring countries and is
helping satisfy or partake in external demand fulfilment.

STEPS TO IMPROVE EXPORTS

 Quota – Coal India has proposed earmarking 3% of the total coal production to meet
external demands and improve exports. India is looking forward to a neighbourhood-first
policy wherein 3% of its total annual production would be set aside for exports. To
counter China, one of the major exporters of coal and its growing influence in South
Asia, the Indian Government has directed Coal India to set aside a certain percentage of
its total export production.
 New Technologies – New technologies are used to increase production and improve
worker productivity. The use of surface miners to produce more coal but with greater
quality has been of great importance in producing coal with lower ash content. This
reduces impurities, sulphur content, e etc., and increases the coal's calorific value. The
company is also looking toward green mining options to leverage these techniques for
greater production. The introduction and use of UAVs in surveys have helped efficiently
allocate and produce coal.
 Mines in MDO mode – To increase coal production and efficiency of Coal India, the
MDO model has been adopted. MDO means mine developer and operator. It simply
means allowing private parties to operate mines. The MDO model reduces production
costs, allowing the company to expand and focus on other more critical activities. It frees
up time for Coal India. The MDO concept can fulfil India's growing energy demands
while reducing import dependence. MDO's technological know-how enables quicker coal
block operationalisation.

FUTURE PLANS
At present, due to huge domestic demand and the current production capacity that the
company has, it is difficult to expand. The margin of expansion is low. However, the
company has set some targets that it hopes to achieve. If these targets are achieved within
their respective deadlines, the company looks forward to expanding into South and South
East Asia. These countries include Indonesia, Thailand, etc. Four nations, Japan, South
Korea, Taiwan and Hong Kong, import 90% of steam coal in Asia and are a significant
market opportunity for expansion. Russian oil export has reduced to the nations sanctioning
the country and supporting Ukraine. This has prompted Germany and Sweden to look for
alternative energy sources. The government of the respective countries tried to reopen old
coal mines, which were closed post reduction in coal dependency. These countries are prime
locations for the company to expand.

HARUSHIKA MITTAL (2123658)

EXPORTERS IN THE AGRICULTURAL AND AUTOMOTIVE

SECTOR
Questionnaire for the Agricultural Sector:
1. About the company and products or services exported
2. As an entrepreneur in the export sector, what are some of the biggest challenges you face?
3. What sources of finance do you rely on to fund your export business?
4. Does the seasonality of agricultural goods turn out to be a barrier for your business?
5. Are you aware of any export promotion schemes or incentives offered by the government
to support your export business?
6. Can you tell us about any concessions or exemptions that you've availed for your export
business with the help of above schemes and incentives?
7. What suggestions or recommendations do you have for the government to further support
the export sector?

Questionnaire for the Automotive Sector:

1. Can you tell us about your experience in the automotive parts export industry and
how you got started?
2. Can you tell us about your sources of finance for your export business?
3. Are you aware of any export promotion schemes or incentives offered by the
government, and have you taken advantage of them?
4. Can you tell us about some of the biggest challenges you face as an exporter in the
automotive parts industry?
5. How do you ensure the quality of your automotive parts, and what sets your
company apart from competitors?
6. Can you tell us about any recent innovations or developments in the automotive
parts industry that you are excited about?
7. What would be your few suggestions to budding entrepreneurs in this sector?
INTRODUCTION:
AGEX Co.
Agrawal Exporters Co. is a reputed exporter that focuses on exporting agricultural products to
different nations all over the world. The firm has been operating for more than ten years, and
the company is situated in India. Agrawal Exporters Co. is dedicated to offering premium
agricultural products cultivated and harvested using sustainable and eco-friendly methods.
A vast variety of agricultural goods, including fruits, vegetables, cereals, and spices, are
exported by the company. Mangoes, bananas, papayas, guavas, rice, wheat, maize and a
variety of spices like black pepper, cumin and turmeric are some of the most well-known
goods exported by Agrawal Exporters Co.
In many nations, such as the United States, the United Kingdom, Canada, Australia, and the
United Arab Emirates, Agrawal Exporters Co. has made a significant impression. To
guarantee a consistent supply of high-quality products, the company has also built long-term
ties with local farmers and suppliers. Agrawal Exporters Co. has a strong commitment to
client satisfaction and works to deliver all items quickly and effectively while upholding the
highest standards of quality.
Mr. Viren Gupta:
The owner and founder of AGEX Co., a business that specialises in exporting diverse
agricultural products to nations throughout the world, is 28-year-old entrepreneur Viren
Gupta. Viren was raised in a tiny hamlet in India, where he was born and raised. Growing up
amidst luscious land and verdant fields, he quickly discovered a love for farming and
agriculture.
Viren made the decision to pursue his dream of founding his own business in the agricultural
export sector after completing his degree in agriculture and business management. Viren
founded Agrawal Exporters Co. with the help of his family and friends, and he has
successfully run the company for the past five years.
Viren is a diligent and committed person who is strongly dedicated to the success of his
business. He is passionate about promoting sustainable agriculture and ethical agricultural
methods and is continually seeking for new business opportunities. Viren likes to spend time
with his family and read books on agriculture in his own time.
Government Initiatives:
The owner of AGEX Co., Mr. Viren Gupta, claims that a number of government measures
have aided in the export of agricultural products. With a number of programmes and
initiatives, the government has been actively promoting the export of agricultural products.
 The Agricultural and Processed Food Products Export Development Authority is one of
the primary efforts the government has undertaken (APEDA). APEDA is a federal agency
that encourages the export of processed and agricultural goods. They give exporters financial
support for relevant tasks like marketing and product development.
 The Market Access Initiative (MAI) programme is another government project. With the
use of infrastructure facilities, trade delegations, buyer-seller meetings, and other marketing
initiatives, this plan aims to increase exports of agricultural and other products.
 The government has also put into effect the Merchandise Exports from India Programme
(MEIS), which offers tariff credit slips to exporters of particular items. Customs duty is one of
the several duties and levies that can be paid using these coins.
 The Export Promotion Capital Goods (EPCG) plan, which enables exporters to import
capital goods at preferential rates of duty, was also noted by Viren. This programme aids
exporters in modernising their technologies and expanding their manufacturing capabilities.

Sources of Finance of the Organisation:

Mr. Viren claims that his business, AGEX Co., mostly uses its own profits to finance its
operations and future growth strategies. Nonetheless, the business has occasionally gotten
loans from banks and other financial organisations to pay for sizable purchases or buy new
equipment. Viren also said that the business has used several government-sponsored export
financing programmes, including the Agricultural and Processed Food Products Export
Development Authority (APEDA) programme and the Export Credit Guarantee Corporation
(ECGC) programme. These programmes offered them financial support, insurance, and other
advantages.
In addition to these, Viren also noted how the business has used factoring firms' services to
increase its cash flow. In order to receive quick cash, a business can sell its accounts
receivable to a third party through the financial process known as factoring. As a result, the
business has access to money that might otherwise be held back in unpaid invoices.

Challenges Faced by AGEX Co:

Mr. Viren claimed that his agricultural export business experienced a number of challenges.
Some of these challenges include:
1. Quality Control: Controlling the quality of the items was one of the main issues Mr.
Viren had to overcome. A number of variables, including the climate, the soil, and
farming techniques, can affect the quality of agricultural goods. To make sure that his
products complied with the demands and specifications of his customers, Mr. Viren
had to uphold tight quality control standards.
2. Logistics: Transportation and logistics posed further difficulties for Mr. Viren.
Agricultural products must be handled and stored carefully because they are
perishable by nature. In order to protect the products' quality and worth, timely and
effective shipping was essential.
3. Regulation adherence: Exporting agricultural products necessitates adherence to a
number of laws and certificates. To make sure that his products met the necessary
requirements and approvals, Mr. Viren had to navigate the complicated regulatory
environment.
4. Payment delays: Mr. Viren also had to deal with payment delays. Dealing with
customers from several nations, each with their own banking and payment systems, is
a need of exporting agricultural products. Payment delays as a result may have an
adverse effect on cash flow and business operations.
5. Market volatility: Agricultural markets are inherently erratic, and prices can change
drastically based on a variety of variables, including the weather, supply and demand,
and geopolitical developments. For his business to stay profitable and competitive,
Mr. Viren had to continuously assess the state of the market.
Concessions availed through Government Incentives:
The Export Promotion Capital Goods (EPCG) plan, which permits the import of capital
goods for pre-production, manufacturing, and post-production at zero customs charge, was
cited by Mr. Viren as being utilised by his company. This allowed his business to significantly
reduce the cost of importing machinery and equipment.
The Agricultural and Processed Food Products Export Development Authority
(APEDA) scheme, which gave them financial support for branding and market development
operations, was another benefit that his company took advantage of.
Suggestions or recommendations for the government to further support the export
sector:
There are a number of ideas and proposals that might be given to the government to help the
industry further:
1. Streamline export processes: The government can take action to streamline export
processes and lessen the administrative obstacles that exporters must overcome.
This can be done by automating the export procedure and setting up a one-stop
shop for services associated with exports.
2. Infrastructure improvement: To make it easier to transport commodities, the
government can spend money on building better roads, ports, and airports. This
will aid in lowering transportation costs and speeding up delivery times,
increasing the competitiveness of Indian exports on the global market.
3. More financial assistance: By implementing programmes that offer export credit
at lower interest rates and lower the cost of financing for exporters, the
government can offer additional financial assistance to exporters. Also, this will
assist in reducing the danger of bank default.
4. Facilitate market access: By negotiating free trade agreements with other nations,
lowering tariffs, and removing non-tariff trade barriers, the government can make
it easier for Indian exporters to reach international markets. This will aid in
generating fresh export prospects for Indian companies.
 5. Provide better training and support: The government can give more support and
training to exporters so they can better comprehend the complexity of global
commerce and compliance needs. By doing this, Indian exports will be of higher
quality and fewer will be rejected for noncompliance.
The government can encourage the export industry even more and assist Indian exporters
like Mr. Viren Gupta in expanding their companies and boosting the national economy by
implementing these policies.

FINDINGS:
We have learned about the many difficulties and chances in the agricultural export industry
through the aforementioned talk with Mr. Viren Gupta, the owner of an agricultural exporting
business. Here are some salient conclusions from our conversation:
 Initiatives from the government: It is crucial for exporters to be aware of and take
advantage of the government's various incentives and programmes designed to
support the export industry.
 Sources of Finance: Exporters like Mr. Viren have used traditional and non-
traditional sources, like bank loans and government programmes, to assist their
operations. The agricultural export industry demands major investment.
 Obstacles: The agricultural export industry faces a number of obstacles, such as
fluctuating pricing, shifting laws, and challenging border crossing logistics.
Exporters must be flexible and have backup strategies in place to deal with these
difficulties.
 Exemptions and Concessions: Viren has used several exemptions and concessions
offered by the government to promote his enterprise, including exemption from a
number of taxes and duty disadvantages. Viren suggests that the government help the
agricultural export industry even further by reducing laws, increasing infrastructure and
logistical support, and encouraging the use of technology to boost supply chain
effectiveness.

Suggestions:
The suggestions are made in light of what I learned from speaking with Mr. Viren Gupta and
the study on government programmes for agricultural exports.
 Infrastructure development: The government should concentrate on enhancing the
agricultural sector's transportation, storage, and cold chain infrastructure. This will aid in
 lowering waste and raising product quality, increasing their competitiveness on the world
market.
 Promote value addition: To extend the shelf life of agricultural products and
improve exports, the government should promote value addition through processing
and packaging.
 Streamline export procedures: To enable small and medium-sized exporters to
access the market and grow their businesses, the government should streamline and
make the export processes for agricultural products more transparent.
 Financial support: To increase small and medium-sized exporters' ability to compete
on the world market, the government should offer them financial support. Subsidies,
tax breaks, and low-interest loans are some examples of this.
 Encourage digitalization: By offering incentives for the adoption of digital
technologies like precision farming and e-commerce platforms, the government
should promote digitalization in the agricultural industry.
 Promote direct marketing, farmer producer organisations (FPOs), and the
development of a robust value chain for agricultural exports to increase market links
between farmers, exporters, and purchasers.

The government can help exporters like Mr Viren Gupta grow their businesses in the
international market by implementing these recommendations and increasing the
agricultural sector's competitiveness.
INTRODUCTION:
AutoSpares Inc.
Leading automobile parts exporter Autospares Inc. is situated in India. The business focuses
in supplying a broad range of automobile components to numerous nations worldwide. The
company offers a wide range of items, including electrical components, brake systems,
suspension systems, and engine parts.
Autospares Inc. exports its goods to a number of nations, including the US, Canada, the UK,
Germany, France, and Australia. The business has a solid reputation in the international
market thanks to its reputation for producing high-quality goods and offering dependable
customer service. Throughout its more than ten years in operation, Autospares Inc. has
developed reliable relationships with several foreign customers.
Along with exporting auto parts, AutoSpares Inc. also offers specialised services to its
customers, including product procurement, product packaging, and branding.
The business employs a group of seasoned professionals that put in endless effort to see to it
that the needs of the customers are satisfied. In addition, AutoSpares Inc. makes use of
cutting-edge logistics and technology to guarantee that the goods arrive at their destination on
schedule and undamaged.
Mr. Ankit Patel:
Ankit Patel, a mechanical engineer with more than 15 years of expertise in the automotive
sector, created "India AutoSpares Pvt. Ltd." in 2015.
Ankit's goal was to establish a business that could manufacture economical, high-quality
replacement parts for all types of automobiles, specifically meeting the demands of the Indian
market. With its headquarters in Ahmedabad, India, India AutoSpares Pvt. Ltd. also operates
a cutting-edge production facility on the outskirts of the city.
The business specialises in producing replacement engines, transmissions, brakes,
suspension, and steering systems for both domestic and international automobiles. A group of
skilled engineers and technicians at India AutoSpares Pvt. Ltd. are committed to creating and
producing replacement parts that meet or surpass industry standards.

Recent Innovations in the Automotive Parts Industry:

The automobile components sector has recently seen a number of advancements that have
significantly changed how we conduct business. Among these innovations are:
1. Modern materials: The creation of new materials like carbon fibre and
composites has made it possible to create lighter, stronger, and longer-lasting
automobile components. As a result, fuel efficiency has increased, emissions have
decreased, and performance has improved.
2. With 3D printing technology, complex, personalised parts may now be
produced rapidly and effectively in the car parts sector. Because to this,
production costs have dropped, lead times have shortened, and design flexibility
has grown.
3. IoT and Sensor Technology: The combination of Internet of Things (IoT) and
sensor technology has made it possible to track and analyse performance data for
automobile parts in real-time. As a result, safety and efficiency have increased and
predictive maintenance has become more precise.
4. Autonomous and Electric Vehicles: The emergence of electric and autonomous
vehicles has sparked the creation of novel automotive components including
electric motors, batteries, and sensors, which are spurring industry innovation.
Businesses in the automobile components sector now have new opportunity to
design and provide these new parts.

These advancements have significantly impacted the automobile parts sector, and
companies like Autospares Inc. have had to adjust quickly to the new environment.
Businesses may stay competitive and flourish in their industries by adopting these
new technologies and putting an emphasis on innovation.
Government Initiatives:
Several government programmes are available to support the export of automobile spare parts
from India by Mr. Ankit Patel's company, India AutoSpares Pvt. Ltd. These initiatives
include, among others:
 The government-sponsored MEIS (Merchandise Exports from India Scheme)
offers advantages to exporters of a variety of items, including automobile parts. The
MEIS offers duty credit strips to exporters, which they can use to pay various import
duties or sell to other importers.
 The export of capital goods, such as machinery, equipment, and technology pertaining
to the automobile industry, is encouraged under the Export Promotion Capital
Goods Scheme (EPCG). The programme allows duty-free importation of capital
goods for the manufacturing of items with an eye towards export
 The Made in India Initiative seeks to promote domestic production and boost Indian
exports. The government has put in place a number of initiatives to make doing
business easier, lessen the cost of compliance, and encourage investment in the
automobile industry.
 Foreign Trade Policy: Exporters can gain from this policy in a number of ways, such
as duty-free imports of raw materials, streamlined export processes, and access to
export promotion councils funded by the government.
 2016-2026 Automotive Mission Plan (AMP), Through encouraging research and
development, improving infrastructure, and creating a qualified workforce, this plan
seeks to transform India into an internationally competitive automotive manufacturing
 hub. Also, the strategy seeks to boost the value of automobile parts and accessories
exports from USD 11 billion in 2015 to USD 70-80 billion by 2026.

.Sources of Finance of the Organisation:

Mr. Ankit Patel's company, India AutoSpares Pvt. Ltd., uses a variety of sources of finance to
support their export operation.
 Export Credit Guarantee Corporation (ECGC): ECGC offers export credit
insurance to them to shield them against international purchasers if fail to make
payments on time.
 Pre-shipment credit, post-shipment credit, and export financing in foreign currency
are just a few of the export financing options that the Export-Import (Exim) Bank of
India offers to Indian exporters.
 Account for Foreign Currency from Non-Residents (FCNR): With the use of this
account, Mr. Ankit is able to keep deposits in foreign currencies that can be utilised to
cover import costs or foreign currency obligations associated with exports.
 Loans from banks: They have taken out loans from banks to cover our needs for working
capital, such as the acquisition of raw materials, the payment of salaries and wages, and other
operational costs. Their long-standing relationship with our bank and solid credit history have
made it possible for them to get loans with advantageous terms.
 Venture Capital: They raised money from venture capital firms to finance their company's
expansion goals in the early years. These monies increased their product portfolio, invested in
R&D, and enhanced our manufacturing skills.


Challenges Faced by AutoSpares Inc.

As the owner of Autospares Inc., they could relate to the numerous difficulties the company
has encountered, some of which are as follows:
1. The demand for automobile parts may be very cyclical and is impacted by
things like the economy's state, fuel cost, and customer preferences. Forecasting
demand and properly managing inventory levels may be difficult as a result.
2. Competition is fierce, with numerous domestic and foreign businesses vying for
market share in the automobile parts sector. Maintaining profits and
differentiating our products may be challenging as a result.
3. The cost and availability of raw materials can significantly affect our
manufacturing costs and profitability. Examples of these materials include steel
and aluminium. Changes in the price of raw materials may impact our margins.
4. Compliance with rules: The automobile components sector must adhere to a
number of regulations, including quality standards, safety laws, and environmental
laws. These standards might be time- and money-consuming to meet.
5. Lack of skilled personnel: The automobile components sector needs skilled
labour, and some areas are experiencing a dearth of qualified candidates. This may
affect our production and competitiveness and make finding and keeping qualified
staff difficult.

Ultimately, the company operations must be flexible, inventive, and nimble to meet
these difficulties. They must adapt rapidly to fluctuations in demand, effectively
control spending, and uphold strict quality and compliance standards.
Notwithstanding these obstacles, we are certain that we can develop and dominate the
market.
Concessions availed through Government Incentives:
The government initiatives available to assist Mr. Ankit's spare parts business are
FTP (Foreign Trade Policy), A government programme known as the FTP offers a
framework for increasing Indian exports.
The Merchandise Exports from India Scheme (MEIS), which offers export incentives
based on the value of exports, is one of many programmes and incentives it offers to
exporters.
Capital Goods Export Promotion (EPCG) Program: Subject to export obligations,
importers of capital goods are permitted under the EPCG scheme at a reduced rate of customs
duty.
Goods and Services (GST) Refunds: The government has made a number of provisions to
make it easier for exporters to receive GST refunds. This includes implementing an electronic
refund system and offering input tax credit refunds.

Suggestions or recommendations for budding entrepreneurs in the export sector:

Ankit Patel, the owner of Autospares Inc., has some advice for aspiring business people who
want to enter the automotive components sector:
1. Keep up with industry trends: Because the automobile parts market
is always changing, it's critical to be informed on the newest fashions,
technologies, and laws. You can stay informed and one step ahead of
the competition by attending industry conferences, connecting with
other experts, and staying updated on industry news.
2. Quality is important in the automobile parts market, so keep that in
mind. Consumers anticipate their parts to be dependable, long-lasting,
and secure. To guarantee that you are creating parts that meet or exceed
client standards, investing in high-quality materials, tools, and
processes is imperative.
3. Accept innovation: To remain competitive in the continually changing
automobile parts market, innovation is essential. Be receptive to new
methods, tools, and materials that can assist you in producing
components that are superior, more effective, and more efficient.
4. Make long-term plans: The demand for automotive parts might
change and the industry can go through cycles. A long-term plan that
accounts for anticipated downturns and emphasises sustainable growth
must be in place.
 5. Your company's success in the automotive parts sector will ultimately
depend on your ability to address client wants, so keep that in mind.
To keep your consumers happy and devoted, be focused on offering
quality parts, superior customer service, and affordable prices.
In the cutthroat and always changing automobile parts market, aspiring business
owners can position themselves for success by adhering to these advice and
suggestions.

FINDINGS:
 An Indian company called Autospares Inc. exports automobile parts to a number of other
nations.
 Ankit Patel, the owner, discussed the government programmes, including financial aid and
export promotion schemes, that are available for exporting car parts.
 Also, Mr. Patel talked about his company's funding sources, including government grants and
bank loans. He listed a number of difficulties his company encountered, such as exchange
rate volatility, high freight expenses, and competition from other nations.
 Advanced materials, 3D printing, and IoT are recent advances in the automobile components
sector that were also covered.Lastly, Mr Patel provided advice and counsel for aspiring
business people in the sector, including the need to keep abreast of market developments,
prioritise quality, and forge solid connections with both suppliers and clients.

The discussion mostly focused on the advantages and disadvantages of working in the
automotive components sector and the significance of innovation, adaptability, and customer
attention.
Suggestions:
Here are some ideas or proposals for improving the automobile exports sector with regards to
the conversation with Mr. Ankit:
 More emphasis on R&D is necessary for automotive export companies to maintain
their competitiveness to enhance their products' performance, safety, and quality. They
 should also spend money on cutting-edge technologies and procedures to cut
expenses and boost productivity.
 Create a competent workforce: To operate and maintain cutting-edge machinery
and equipment, the automotive exports business needs a skilled workforce.
 Improve supply chain management: Timely product delivery, particularly in the
case of international exports, depends on an effective supply chain management
system. In order to increase customer happiness, shorten lead times, and improve
supply chain visibility, businesses should employ contemporary logistics methods and
technologies.
 Grow into new markets: To increase their clientele and lessen reliance on a single
market, automotive export companies can investigate new markets.
 Employ sustainable methods: In light of growing environmental concerns,
businesses that export automobiles should embrace sustainable practises. They
include using renewable energy sources, cutting back on waste and emissions, and
recycling components.

SIDDHARTH GARG (2123634)

EXPORTERS IN THE COTTON AND GOLD SECTOR

QUESTIONNAIRE FOR COTTON AND TEXTILE INDUSTRY:
1. Explain about yourself and about the business that you are involved in.
2. What are the primary sources of finance that you use in your daily business operations of
export and import?
3. Are you aware of various incentives offered by the government of India to entrepreneurs
who are involved in the export-import business, especially in the cotton business?
4. If yes; then please explain what incentives you are availing.
5. How these incentives are helping you in your Business?
6. What are the main constraints you face in availing those incentives and managing the
sources of finance?
7. As the cotton business is highly affected by seasonal changes, coupled with high risk in
the export-import business how do you manage these risks?
8. What advice would you give to young entrepreneurs who are interested in the export-
import of cotton and textiles?

INTRODUCTION TO THE COMPANY:

Green COTEX India
Year of establishment: 2010
Location: Mumbai, Maharastra
Green COTEX India is a leading exporter of cotton and textile products from India. With
over 15 years of experience in the industry, the company has built a reputation for providing
high-quality products at competitive prices. Its product range includes a wide variety of
cotton and textile products such as yarns, fabrics, garments, home textiles, and more.

Green COTEX India sources its raw materials from the best suppliers in the country, ensuring
that its products are of the highest quality. The company's team of experts ensures that each
product goes through a rigorous quality control process before it is shipped to customers.
This commitment to quality has helped Green COTEX India build a loyal customer base both
within India and internationally.

Green COTEX India believes in building long-term relationships with its customers. The
company strives to understand its customers' unique needs and provide them with
personalised service to meet their requirements. It is committed to delivering its products on
time, every time, and ensuring that its customers are satisfied with their purchases.
Aman Agrawal: he is the owner of the business ‘Green COTEX India’, and he has
completed his bachelor's in technology from IIT Mumbai and his Masters from INSEAD
Paris, and after that, he started his own venture that’s concerned with import and export of
cotton and textiles. He is a very visionary person, aiming to revolutionise cotton production
and export in India. Now he has been a part of this industry for the last 13 years, and has
immense knowledge about the same, he has seen all the phases of changes in regulations by
the government of India on the export and import of goods.

Cotton and textile export and import from and to India:

India is the largest producer of cotton globally. It is a crop that is crucial to the Indian
economy and the way of life of cotton growers there. In India, more than 11.7 million
hectares of cotton are grown, compared to 31.2 million hectares worldwide. In India, the
cotton sector supports the livelihoods of around 60 million people.
The total amount of cotton produced in India in 2021–2022 was 34.1 million bales (bales of
170 kg each). Gujarat produces the most cotton in India's Central Zone (which includes the
states of Maharashtra, Madhya Pradesh, and others), accounting for 8.516 million bales of the
nation's total production. Over 70% of Gujarat's cotton is produced in Saurashtra, with
farmers in Amreli—the state's largest cotton district—playing a significant part. The largest
cotton-producing regions of Maharashtra are the Vidarbha districts of Yavatamal, Buldhana,
Akola, Amravati, Nagpur Washim, and Wardha.

Initiatives provided by the Government of India to promote the exports of cotton and
textiles:
Merchandise Exports from India Scheme (MEIS): The MEIS provides exporters with
incentives in the form of duty credit scrips. These scripts can be exchanged for goods on the
open market or used to pay customs fees. The programme applies to a variety of export
goods, including cotton and textiles.
Export Promotion Capital Goods (EPCG) Scheme: The EPCG scheme allows exporters to
import capital goods at a concessional rate of customs duty. This gives exporters the chance
to update their technology and equipment, which can raise the quality and output of their
goods.
Special Economic Zones (SEZs): SEZs have been constructed in India by the government.
These zones provide a variety of benefits to companies that focus on exports, including tax
reductions, duty-free imports, and simplified regulatory processes.
Refund of State Levies (ROSL): This programme reimburses exporters for state taxes and
levies that are not covered by any other programme. This can aid in lowering production
costs and improving the competitiveness of Indian exports on the global market.
Textile Upgradation Fund Scheme (TUFS): The TUFS provides financial assistance to
textile manufacturers for the modernisation and upgradation of their machinery and
technology. Their product quality and productivity could be enhanced as a result, increasing
their ability to compete in the international market.
Market Access Initiative (MAI): The MAI programme offers exporters financial support for
activities such as market research, trade shows, and buyer-seller gatherings. Exporters that
want to grow their businesses internationally may find this useful in locating new markets
and clients.

Sources of finance availed by Green COTEX India:

1. Letter of credit: In international trade operations, a letter of credit (LC) is a popular
financial tool used to guarantee payment between the buyer and seller. In layman's words, it
is a promise made by a bank to the seller (also known as the exporter or beneficiary) on
behalf of the buyer (also known as the importer or applicant) that the payment would be made
after the products or services are delivered in accordance with the agreed-upon terms and
conditions.
2. Bank Guarantee: A bank guarantee is a financial instrument used by businesses engaged
in import and export activities to ensure that they fulfil their contractual obligations. If the
client (the importer/exporter) breaches the terms of the contract, the bank is obligated in
writing to pay a specific sum to the beneficiary.
When an export-import company accepts a bank guarantee, the bank ensures that the
customer—the importer or exporter—will uphold its end of the bargain by issuing a
guarantee in favour of the beneficiary (the counterparty).
3. Factoring: Factoring is a form of finance that is frequently utilised by companies that
export goods or services. It entails offering discounted accounts receivable (invoices) to a
lender known as a factor in exchange for quick cash. The factor then takes charge of
obtaining payment from the buyer and charges a fee for the service.
When an export business uses factoring, it typically involves the following steps:
• The company sends a buyer an invoice for the products or services they purchased on
credit.
• The company then sells the invoice at a discount to a factor, obtaining quick cash in return.
• The buyer's payment is then due and must be collected by the factor.
4. Pre and post-shipment finance: Pre-shipment finance refers to financing that is provided to
a business before the shipment of goods. It is used to cover the costs associated with the
production and preparation of goods for export, including raw materials, labour costs, and
packaging. The purpose of pre-shipment finance is to ensure that the business has the
necessary funds to produce and prepare the goods for export. The amount of pre-shipment
finance provided is typically a percentage of the value of the goods to be exported.
Post-shipment finance, on the other hand, refers to financing that is provided to a business
after the shipment of goods. It is used to cover the gap between the time of shipment and the
time when payment is received from the buyer. Post-shipment finance is particularly useful
for businesses that have a long cash conversion cycle, as it provides them with immediate
cash to finance their operations. The amount of post-shipment finance provided is typically a
percentage of the value of the goods shipped.
Challenges and constraints faced by Green COTEX India:
 Fluctuations in cotton prices: Cotton prices are subject to fluctuations due to various
factors, including weather, supply and demand, and global market conditions. It may
be challenging for cotton exporters to forecast the profitability of their exports due to
these changes.
 Competition from other cotton-exporting countries: India faces stiff competition
from other cotton-exporting countries such as the United States, China, and Brazil.
Due to their established supply networks and scalability, these nations are able to
produce and export cotton at more affordable rates.
 Infrastructure and logistics: India's infrastructure and logistics may be insufficient,
which causes delays and extra costs for cotton exporters. Delays in shipments can
damage the quality of the cotton and result in a loss of income if there are inefficient
transport networks, ports, and warehouses.
  Quality control and standards compliance: The export of cotton from India is
subject to strict quality control and standards compliance. It might be difficult to
comply with these rules, which causes cotton exporters to incur significant expenses
and delays.
 Financial accessibility: Exporters need financial accessibility to pay for pre- and
post-shipment charges involved with exporting. However, access to finance can be
limited for smaller exporters and those without a track record of successful exports.
 Delays in receiving subsidies: there is usually a delay in the credit of subsidies, and
most of the time, when the subsidies are availed by the companies their work is done,
destroying the very purpose of the subsidies.
 Long application process: to avail of subsidies in India, there’s a lot of scrutiny
process a company must go through before becoming eligible for getting subsidies.
And this long and tiring red-tapism often discourages companies to avail incentives.
 Bureaucratic scrutiny by the regulatory authority: authorities increase the scrutiny
to a great extent hampering the normal course of business operations, some times due
the scrutiny it causes businesses losses more than the incentives they are supposed to
receive.

Measures that should be undertaken to improve the export business:

By the company:
 Conducting market research: It is essential to understand the target market,
including consumer preferences, trends, and competition. Businesses can adjust their
export strategy and product offers by using market research to pinpoint market
possibilities and gaps.
 Creating a solid export strategy: Businesses should create an export strategy that
clearly defines their goals, target markets, sales and marketing channels, pricing, and
distribution networks. The approach must be adaptable enough to take into account
shifting market dynamics.
 Developing strong connections with customers: Developing strong connections
with customers can give businesses a competitive edge in the export market. This can
 involve offering top-notch customer service, upholding high standards of quality, and
being receptive to the demands of customers.
 Investing in quality control: Quality control is essential for ensuring that products
meet international standards and customer expectations. Businesses should spend
money on quality assurance procedures like product testing, certifications, and
adherence to international standards.
 Leveraging government incentives: The government of India provides various
incentives for exporters, including export subsidies and tax exemptions. To save costs
and increase their competitiveness in the export market, businesses should take
advantage of these benefits.
 Improving logistics and infrastructure: Improving logistics and infrastructure can
help companies reduce costs and improve the efficiency of their export operations.
This may entail making investments in supply chain management, warehousing, and
transportation.
 Building a solid online presence: In order to reach a worldwide audience, businesses
need to build a solid online presence. This can involve developing an online store,
improving search engines, and promoting goods on social media.

By the government:

 Simplifying export procedures: The government can simplify export procedures to

reduce the time and cost of exporting. Streamlining export-related processes, cutting
paperwork, and streamlining customs procedures are a few examples of how to do
this.
 Infrastructure development: The government can make investments to upgrade the
nation’s ports, airports, railroads, and roads. This might lower transportation expenses
and boost supply chain effectiveness.
 Offering export financing: The government can help exporters by offering export
financing. This may entail offering pre-and post-shipment financing, export credit
insurance, and export credit guarantees.
  Providing export incentives: To promote exports, the government may grant export
incentives. These can include tariff disadvantages, tax exemptions, and export
subsidies.
 Research and development support: The government can promote R&D in sectors
that focus on exports. Incentives for creativity, assistance with technology transfer,
and access to research facilities are a few examples of how to do this.
 Encouraging trade agreements: To lower trade barriers and improve market access,
the government should advocate for trade agreements with other nations. Free trade
agreements and regional trade agreements may be negotiated as part of this.
 Improving access to information: The government can improve access to
information for exporters, including market intelligence, trade regulations, and export
procedures. This can lower the cost of exporting and assist exporters in making wise
judgements.

QUESTIONNAIRE FOR GOLD AND JEWELLERY EXPORT:

9. Explain about yourself and about the business that you are involved in.
10. What are the primary sources of finance that you use in your daily business operations of
export and import?
11. Are you aware of various incentives offered by the government of India to entrepreneurs
who are involved in the export-import business, especially in the jewellery and gold
sector?
12. If yes; then please explain what incentives you are availing.
13. How these incentives are helping you in your Business?
14. What are the main constraints you face in availing those incentives and managing the
sources of finance?
15. How do you ensure the authenticity of the gold and jewellery that you import and export?
16. What are the legal requirements that are concerned with the export and import of gold?
17. What advice would you give to young entrepreneurs who are interested in the export-
import of gold and jewellery?
INTRODUCTION OF THE COMPANY:
Swarnex:
Year of establishment: 2018
Location: Surat
Swarnex is a leading gold and jewellery exporting business based in India. The company was
founded in 2018 and has since established itself as a prominent player in the international
gold and jewellery market. Swarnex specialises in the export of high-quality gold and
jewellery products to countries around the world, mainly USA and UAE are the main
consumers of gold exported from India.
The company's product line includes a wide range of gold and jewellery items, including
rings, necklaces, bracelets, earrings, and pendants. All products are made using the finest
quality materials and are designed to meet the highest standards of quality and craftsmanship.
Swarnex is committed to providing its customers with exceptional service and support. The
company's team of experienced professionals is dedicated to ensuring that all customer needs
are met and that every order is delivered on time and to the highest standards of quality.
In addition to its commitment to customer service, Swarnex is also committed to sustainable
and ethical business practices. The company works closely with its suppliers to ensure that all
materials are sourced responsibly and that all workers are treated fairly and with respect.
With a strong reputation for quality, service, and sustainability, Swarnex is well-positioned to
continue to grow and expand its presence in the global gold and jewellery market. The
company's focus on innovation, quality, and customer service will continue to be key drivers
of its success in the years ahead.
Raman Lodha: Rajat is the owner of Swarnex involved in the export of gold and jewellery
from India. He has an industry experience of more than 20 years, and along with his gold
exporting business, he has 14 different jewellery shops across the world. He has done his
bachelor's from Ramjas University and after that, he joined the business of jewellery.
Export and Import of Gold and Jewellery from and to India:
India is one of the world's largest importers and exporters of gold and jewellery. Indian
jewellery is in high demand all around the world due to the nation's long history and
jewellery-making culture.
Over the years, India has significantly increased its exports of gold and jewellery. India's
exports of gold and jewellery increased to $22.42 billion in the fiscal year 2020–21 from
$18.66 billion the previous fiscal year, according to figures from the Gem & Jewellery Export
Promotion Council (GJEPC).
The United States, the United Arab Emirates, Hong Kong, and Singapore are the top export
markets for Indian gold and jewellery goods. Customers can choose from a variety of
products offered by Indian exporters, including both traditional and modern and
contemporary designs.
On the other hand, India is also a major importer of gold and jewellery. India bought 153.3
tonnes of gold in the second quarter of 2021, up from 25.5 tonnes in the same time the year
before, according to the World Gold Council.
Switzerland, the United Arab Emirates, Hong Kong, and Singapore are the top five sources of
gold imports for India. Rough diamonds are another major import for India; these are treated
there and used to manufacture jewellery for both domestic and international markets.
Overall, the gold and jewellery industry is a substantial part of India's economy, employing
millions of people and making a sizeable contribution to the nation's foreign exchange
profits.
Initiatives provided by the Government of India to promote the exports of gold and
jewellery:
 Establishment of the Gem & Jewellery Export Promotion Council (GJEPC): A
government-backed organisation called the GJEPC encourages the export of gems and
jewellery out of India. For Indian exporters, the organisation offers a variety of
services, such as marketing and promotion, trade data analysis, and policy advocacy.
 The Gold Monetisation System has been Introduced: The Indian government
introduced the Gold Monetisation Program in 2015 to entice citizens to deposit their
gold with approved institutions in exchange for interest payments. The plan intends to
tap into the nation's enormous gold reserves and lessen its reliance on imported gold.
 Gold import duty reduction: To make gold cheaper for Indian exporters, the Indian
government periodically lowers the import duty on gold. In March 2021, the
government reduced the import duty on gold from 12.5% to 10.75%.

 Special Economic Zones (SEZs) Creation: The Indian government has created a
number of SEZs throughout the nation that are focused on the manufacture and export
of gems and jewellery. These SEZs provide Indian exporters with a variety of
incentives, such as tax rebates, duty exemptions, and expedited regulatory procedures.
 The e-gold trading platform is introduced: The Indian government has introduced
an electronic gold trading platform that enables buyers and sellers of gold to transact
online. The platform is made to simplify gold trading for investors and to encourage
the growth of a reliable and effective gold market in the nation.
Sources of finance availed by Swarnex:

1. Foreign currency loan: A loan with a currency other than the borrower's home currency
is referred to as a foreign currency loan. In other words, a corporation is considered to have
taken out a foreign currency loan if it borrows money in a currency other than its own.
Companies that conduct business internationally or have operations in several nations are
more likely to take out foreign currency loans. These loans are frequently used to fund
international expansion, buy equipment or raw materials from international suppliers, or
protect against currency changes.
One advantage of using a foreign currency loan is that it enables businesses to borrow money
at rates that are less expensive than what they could get in their own currency.
2. Pre and post-shipment finance: Pre-shipment finance refers to financing that is provided
to a business before the shipment of goods. It is used to cover the costs associated with the
production and preparation of goods for export, including raw materials, labour costs, and
packaging. The purpose of pre-shipment finance is to ensure that the business has the
necessary funds to produce and prepare the goods for export. The amount of pre-shipment
finance provided is typically a percentage of the value of the goods to be exported.
Post-shipment finance, on the other hand, refers to financing that is provided to a business
after the shipment of goods. It is used to cover the gap between the time of shipment and the
time when payment is received from the buyer. Post-shipment finance is particularly useful
for businesses that have a long cash conversion cycle, as it provides them with immediate
cash to finance their operations. The amount of post-shipment finance provided is typically a
percentage of the value of the goods shipped. Gold requires heavy investment to make
purchases or sales from and to a foreign country, for which most of the gold companies go for
pre and post-shipment loans.
3. International Working capital loan: to prevent a lot of the company’s funds from being
locked in terms of inventory, decreasing the business and inventory cycle, most of the gold
companies have international bank OD or working capital loans to ensure the smooth
functioning of finances.
4. Letter of credit: In international trade operations, a letter of credit (LC) is a popular
financial tool used to guarantee payment between the buyer and seller. In layman's words, it
is a promise made by a bank to the seller (also known as the exporter or beneficiary) on
behalf of the buyer (also known as the importer or applicant) that the payment would be made
after the products or services are delivered in accordance with the agreed-upon terms and
conditions.
Challenges and constraints faced by Swarnex:
Price swings: Gold prices are susceptible to abrupt and considerable swings, which can cause
exporters who have already secured sales contracts at lower levels to suffer sizeable losses.
Now the price of gold reached a record high of 61,000 which must have caused a lot of losses
and even profits to a lot of businesses, this price speculation of gold creates a lot of confusion
in the market.
Regulatory constraints: India has strict regulations around the export of gold and jewellery,
including rules around purity levels and documentation. Companies may find it time-
consuming and expensive to comply with these laws, which may make it more difficult for
them to compete with exporters from other nations.
Competition from other countries: India faces stiff competition from other countries,
particularly those in Southeast Asia, which have lower labour costs and fewer regulatory
constraints. For instance, India has recently lost market share to Thailand, which has
developed into a significant hub for the export of gold jewellery.
Logistics and transportation: Exporting gold and jewellery calls for careful handling and
safe shipping, which might be difficult in some areas. The amount of gold that can be
transported by some airlines on a single flight, for instance, is limited, which might make it
more difficult for exporters to meet delivery schedules.
Quality control: Because consumers are ready to pay more for high-quality goods, quality
control is important in the gold and jewellery industry. But maintaining quality can be
difficult, especially for small and medium-sized businesses that might lack the funds to buy
pricey testing apparatus.
Currency fluctuations: Since they can affect profit margins and cash flow, currency
fluctuations can also provide significant difficulties for exporters. In the year 2022 only,
Rupee depreciated the worst against the dollar, making the import of gold more expensive,
resulting in losses.
Measures that should be undertaken to improve the export business of Gold and
jewellery:
By business:
Product range diversification: Instead of focusing primarily on conventional gold
jewellery, businesses might think about expanding their product offerings to incorporate
fresher looks and designs that will appeal to a wider range of consumers. They might also
think about selling gold in the shape of coins or bars, which could yield more profits.
Enhance quality control: Companies should invest in quality control procedures to make
sure that their products meet international standards in order to keep a competitive edge. This
can entail regular certification and testing of the purity of the gold used in jewellery as well
as high-quality manufacturing practices.
Create connections with customers: Success in the gold exporting industry requires the
development of strong connections with buyers. By delivering goods on schedule and in
accordance with contract specifications, businesses should put their efforts into building a
reputation for dependability and trustworthiness. Companies might also think about going to
international trade fairs and exhibitions to exhibit their goods and network with possible
customers.
Supply chain streamlining: A well-managed, effective supply network can help to save
costs and accelerate delivery times. To guarantee a consistent and high-quality supply of raw
materials, businesses can think about partnering with dependable manufacturers and
suppliers. In order to save money on transportation, they could also look into the possibility
of consolidating shipments.
Leverage government incentives: The Indian government provides several incentives, like
financial support, tax exemptions, and subsidies, to boost exports. To take advantage of these
initiatives, businesses should investigate their alternatives and cooperate with the
government.
Invest in technology: Technology has the potential to significantly increase the efficacy and
efficiency of the gold exporting industry. To improve operations and cut expenses, businesses
should think about investing in digital solutions like supply chain tracking systems, online
sales platforms, and inventory management software.
By the government:
Streamline regulations: The government could simplify the regulatory framework for gold
exports and make it easier for companies to obtain licences and permits. This might
contribute to less bureaucracy and more transparency, which would facilitate company
operations.
Infrastructure upgrade: To ensure that gold can be delivered swiftly and effectively, the
government could spend in enhancing infrastructure such as ports, airports, and transportation
systems. Costs could be brought down as a result, improving worldwide market
competitiveness.
Encourage trade shows and exhibitions: Both domestically and abroad, the government
could arrange and promote trade shows and exhibitions for the gold and jewellery industry.
These occasions may aid in showcasing Indian jewellery and gold to potential customers and
drawing foreign investment.
Financial support: The government might provide low-interest loans, export credits, and
insurance plans to support the expansion of the gold and jewellery export industry. This
would make it simpler for businesses to acquire financing and lessen the financial risks
connected with exporting.
Promote research and development: To encourage business innovation and the creation of
fresh concepts and products, the government should provide financial assistance to research
and development projects. This might improve competitiveness and open up new exporting
prospects.
Develop stronger ties with trade partners: In order to expand export potential, the
government could try to develop stronger ties with important trading partners. This might
entail establishing business partnerships and trade deals as well as encouraging collaboration
and cross-cultural exchange.
 Srijan Garodia (2123545)

EXPORTERS IN THE FINISHED GOODS SECTOR

ABOUT EXPORTING

What is exporting?
Exporting is the process of selling goods and services that are produced or sourced
domestically in other nations. The opposite of exporting is importing. Purchasing products
and services abroad and bringing them back home is referred to as importation. Global
sourcing is another name for importing. For businesses that are just getting started in a new
international market, exporting is a successful entry strategy. Compared to the other options,
it is a low-cost, low-risk choice. For the same reasons, small and medium businesses should
consider exporting rather than making a big financial commitment in the global market.
Companies can sell into a foreign nation using their own sales representatives or a local
distributor.

Why do companies export?

Companies export because it's the simplest way to engage in international trade, it requires
less capital investment than alternative entrance tactics, and it's far simpler to stop exporting
than to find another means to enter the market. This procedure can be facilitated by an export
partner, such as a distributor or an export management firm. An independent business called
an export management company (EMC) handles the tasks that a company's own export
department would handle. The EMC takes care of the required paperwork, locates purchasers
for the export, and assumes ownership of the products for direct export. The EMC requests a
fee or commission in exchange for its services. A company does not need to develop these
internal capabilities because an EMC handles all the duties that would otherwise be handled
by the export department of the company. Most importantly, exporting enables a business to
gain fast access to new markets.

What are the benefits of exporting?

Market- Due to the company's access to a new market, revenues have increased.

Money- The company has increased revenue, but it has also obtained access to foreign cash,
which is advantageous for businesses in some parts of the world.
Manufacturing- Because the company has been able to produce at bigger numbers and
procure source materials at higher volumes, taking advantage of bulk savings, the cost to
manufacture a given unit has fallen.

What are the risks of exporting?

Relying on the export option carries dangers. Simply exporting to a nation could lead to the
distributor or customer switching to, or at least threatening to switch to, a less expensive
supplier in an effort to negotiate a better price. Or another person might begin producing the
good close to where you are and steal your market. Additionally, local customers might think
that a business that solely exports to them isn't very dedicated to provide ongoing care and
support once a sale is made. As a result, people might prefer to purchase from a producer
who operates domestically. Many businesses now start to second-guess having a local
presence, which leads them to choose one of the alternative entry possibilities.

Company Description

The person I interviewed, Mr Shalin Mehta, is a finance manager in Swiss Singapore India
Pvt Ltd.

Industry overview
The industry that my company falls into is the industry of import and export. Today,
practically everyone in the globe is affected by import and export trade. Imports and exports
allow any country to make the most of its abundant natural resources. A country generates the
money to purchase another country's surplus by exporting its surplus, whether it's raw
materials like coal, semi-finished products like cotton stuffs, or finished items like computers.
Building offices or plants in other countries, sending technical or other expertise overseas,
and expanding a product's distribution into the international market are all examples of
import- export trade.

Multiple occupations are required to plan, develop, and maintain any form of import or
export agreement. The jobs differ depending on the product or service given and the
company's international aspirations for the product. Many overseas positions are transitory,
such as when corporations send employees with experience building up manufacturing
processes or investigating new markets for a few years. Government policies that alter the
value of currency, set import levies that must be paid, set quotas that limit imports, and
impose standards on imported items all have a significant impact on import-export trade
(such as safety requirements or inspection for pests), create a demand for commodities that
domestic producers can'tmeet.

Company profile:

The Aditya Birla Group is a Mumbai-based Indian multinational conglomerate. It employs

more than 140,000 people in 36 countries. Seth Shiv Narayan Birla launched the company in
1857. Viscose staple fibre, metals, cement (India's largest), viscose filament yarn, branded
garments, carbon black, chemicals, fertilisers, insulators, financial services, and telephony are
among the group's businesses. One of its subsidiaries is the Swiss Singapore Overseas Pte
Ltd. SSOE (Swiss Singapore Overseas Pvt Ltd) is a part of Aditya Birla Group and a leading
bulk commodity trading solutions provider to clients across the globe. It was founded in
Singapore in 1978 and has grown to an annual trading volume of approximately 34.5 million
tonnes. They have the reach and scale to serve their clients all over the world, thanks to a
strong professional staff of 450+ people located over 18 geographies providing competitive
pricing and smooth transits while adhering to ethical business standards and without
sacrificing quality and service. For their customers, their dedicated shipping division adds
another layer of value. One of the main drivers of their expansion has been reliability. It is
their policy to execute contracts on schedule and deliver on their promises to the satisfaction
of both suppliers and purchasers.
Swiss Singapore India Private Limited was established on April 30, 2013. It is registered with
the Registrar of Companies in Ahmedabad as a Subsidiary of a Foreign Company. Swiss
Singapore India Private Limited was founded in 2013 and has quickly risen to the top of
India's list of top suppliers. The provider is based in Kolkata, West Bengal, and is one of the
top sellers of the products on the list. This branch mainly focused on the product- tea, pulses,
wheat and rice.

Vision, mission, goals and objectives

Their vision is to be the customer's preferred commodities trading house across the globe.
Their mission includes connecting customers to commodities in an innovative and
responsible manner while creating value for their stakeholders.
Their value includes ethical practices that are the very foundation of SSOE. As a corporation
that touches the world, they feel that it is their responsibility to be a shining example of
corporate governance and values driven business in all the communities that they touch. They
adhere to every compliance; showcase the highest level of corporate governance and they say
a strict no to bribery. Their values include: integrity- Honesty in every action; Commitment-
delivering on the promise; Passion- energized action; Seamlessness- boundaryless in letter
and spirit; and; Speed- One step ahead always.

SOURCES OF FINANCE

Swiss Singapore Overseas Pvt Ltd is a global trading and commodities company with a
diversified portfolio of products and services. The company's sources of finance can be
broadly categorized into two types: internal sources and external sources.

Internal Sources:

 Equity Capital: Swiss Singapore Overseas Pvt Ltd may have raised capital by issuing
shares to investors or through retained earnings.
 Debt Financing: The company may have raised capital by taking loans from banks or
financial institutions, which will have to be paid back over time with interest.
 Working Capital Management: The company can also generate funds internally
through efficient working capital management by optimizing inventory, accounts
receivable, and accounts payable.

External Sources:

 Bank Loans: Swiss Singapore Overseas Pvt Ltd may have obtained loans from banks
for short- term or long-term working capital requirements. These loans can be secured
or unsecured depending upon the company's creditworthiness.
 Trade Credit: The company may have availed of trade credit from suppliers, which is
an interest-free source of financing. This allows Swiss Singapore Overseas Pvt Ltd to
delay payments to suppliers and use the funds for other purposes.
 Bonds: The company may have issued bonds to raise funds for its operations. Bonds
are a form of debt financing where the company promises to pay the principal amount
and interest to the bondholders on a fixed schedule.
 Export Credit: Swiss Singapore Overseas Pvt Ltd may have utilized export credit
facilities provided by financial institutions to finance its exports.
 Venture Capital: The company may have raised funds from venture capitalists who
invest in early-stage companies in exchange for equity ownership.
 Private Equity: The company may have raised funds from private equity firms, which
invest in established companies and help them grow in exchange for equity
ownership.
Export promotion Schemes

Export promotion schemes are initiatives by the government to provide incentives and
support to exporters to increase their competitiveness in the global market. These schemes
aim to facilitate and promote exports by providing financial assistance, technical support, and
other incentives to businesses engaged in export activities. However, to take full advantage of
these schemes, exporters must be aware of their existence and how to access them.

 Research: The first step is to research the various export promotion schemes
available to businesses. This can be done by reviewing government websites,
industry associations, and export promotion organizations. The government
often provides detailed information on the eligibility criteria, benefits, and
application process for each scheme.
 Consult with Experts: Businesses can consult with export promotion agencies,
industry associations, or experienced export consultants to understand the
various export promotion schemes available and the benefits they offer. These
experts can also provide guidance on how to navigate the application process
and take advantage of the schemes.
 Networking: Networking is critical for businesses looking to expand their
export activities. Networking can help businesses learn about new export
opportunities and connect with potential partners. Attending trade shows,
business expos, and industry events can help businesses connect with potential
customers and partners and stay informed about new developments in the
export sector.
  Regular Updates: It is important for businesses to stay up-to-date on the latest
developments in the export sector and any changes to export promotion
schemes. Businesses should regularly check government websites, industry
publications, and attend relevant events to stay informed.

In conclusion, exporters can improve their awareness of export promotion schemes by

conducting research, consulting with experts, attending seminars and workshops,
networking, and staying updated on the latest developments. By taking advantage of
these schemes, businesses can reduce the cost of exports, increase their
competitiveness, and expand their export activities.

Incentives and exemptions availed

Swiss Singapore Overseas Pvt Ltd is a global trading and commodities company that engages
in exports of various goods and services. As an exporter, the company can avail of several
incentives and exemptions offered by the government to promote exports. Here are some of
the incentives and exemptions that Swiss Singapore Overseas Pvt Ltd may have availed of:

 Duty drawback: Duty drawback is a refund of duties and taxes paid on inputs
used in the production of exported goods. Swiss Singapore Overseas Pvt Ltd
may have claimed duty drawback on the inputs used in the production of its
exported goods.
 Export promotion capital goods (EPCG) scheme: Under the EPCG scheme,
exporters can import capital goods at a concessional customs duty rate. Swiss
Singapore Overseas Pvt Ltd may have availed of this scheme to import capital
goods required for its export activities.
 Merchandise Exports from India Scheme (MEIS): The MEIS provides
incentives in the form of duty credit scrips to exporters of notified goods.
Swiss Singapore Overseas Pvt Ltd may have availed of this scheme for its
export of eligible goods.
 Export Oriented Unit (EOU) scheme: Under the EOU scheme, exporters can
set up manufacturing units in designated areas with various tax and other
incentives. Swiss Singapore Overseas Pvt Ltd may have set up an EOU for the
manufacture of its goods.
  Service Export from India Scheme (SEIS): The SEIS provides incentives to
service providers in the form of duty credit scrips. Swiss Singapore Overseas
Pvt Ltd may have availed of this scheme for its export of eligible services.
 GST refund: Exporters are eligible for a refund of the Goods and Services Tax
(GST) paid on inputs used in the production of exported goods. Swiss
Singapore Overseas Pvt Ltd may have claimed a GST refund for the inputs
used in its exported goods.

In conclusion, as an exporter, Swiss Singapore Overseas Pvt Ltd may have availed of several
incentives and exemptions offered by the government, such as duty drawback, EPCG
scheme, MEIS, EOU scheme, SEIS, and GST refund. These incentives and exemptions help
reduce the cost of production and make exported goods more competitive in the international
market.

Marketing Strategies

Swiss Singapore Overseas Pvt Ltd is a global trading and commodities company that deals
with a wide range of products and services. The company adopts several marketing strategies
to promote its products and services in the domestic and international markets. Here are some
of the marketing strategies of Swiss Singapore Overseas Pvt Ltd:

 Global presence: Swiss Singapore Overseas Pvt Ltd has a global presence with
operations in more than 60 countries. This helps the company to reach a wider
audience and expand its customer base. The company also has a strong
distribution network, which enables it to reach customers in different regions.
 Brand building: The company has invested in building a strong brand image in
the market.
 Product diversification: Swiss Singapore Overseas Pvt Ltd offers a wide range
of products and services, which helps the company cater to its customers'
diverse needs. The company's product portfolio includes commodities,
industrial raw materials, petroleum products, and agricultural products.
 Online presence: The company has a strong online presence through its
website and social media platforms. The company uses these platforms to
promote its products and services, engage with customers, and gather
feedback.
  Trade shows and exhibitions: Swiss Singapore Overseas Pvt Ltd participates
in various trade shows and exhibitions to showcase its products and services to
potential customers. This helps the company to increase its visibility and
generate leads.
 Partnership and collaborations: The company forms strategic partnerships and
collaborations with other companies to expand its reach and access new
markets. The company also collaborates with suppliers and customers to
improve the quality and efficiency of its operations.

In conclusion, Swiss Singapore Overseas Pvt Ltd adopts several marketing

strategies such as global presence, brand building, product diversification,
customer-centric approach, online presence, trade shows and exhibitions, and
partnerships and collaborations to promote its products and services in the
domestic and international markets. These strategies help the company to
increase its visibility, expand its customer base, and improve its market
position.

CHALLENGES FACED

As a global trading and commodities company, Swiss Singapore Overseas Pvt Ltd faces
several challenges in its operations. Here are some of the challenges faced by the company:

 Fluctuations in commodity prices: Swiss Singapore Overseas Pvt Ltd deals

with a wide range of commodities, and the prices of these commodities are
subject to frequent fluctuations due to several factors such as demand and
supply, geopolitical events, and currency fluctuations. These fluctuations can
impact the company's profitability and cash flows.
 Political instability: The company operates in regions that are prone to
political instability, which can impact its operations. Political instability can
lead to disruptions in the supply chain, delays in shipments, and impact the
company's revenue and profitability.
 Currency risks: As a global company, Swiss Singapore Overseas Pvt Ltd is
exposed to currency risks due to fluctuations in exchange rates. Currency risks
can impact the company's profitability and cash flows, particularly if the
company has significant exposures in a particular currency.
  Competition: The trading and commodities industry is highly competitive,
with several players operating in the market. The company faces competition
from both established players and new entrants, which can impact its market
position and revenue.
 Supply chain disruptions: The company's operations depend on a complex
supply chain, which includes suppliers, logistics providers, and customers.
Any disruption in the supply chain, such as delays in shipments, can impact
the company's operations and revenue.

In conclusion, Swiss Singapore Overseas Pvt Ltd faces several challenges in its
operations, including fluctuations in commodity prices, regulatory challenges,
political instability, currency risks, competition, and supply chain disruptions. The
company needs to adopt effective risk management strategies to mitigate these
challenges and ensure the sustainability of its operations.

ANALYSIS OF THE INTERVIEW

Why does the company have to expand?

The advantages and drawbacks of expanding a business are complicated. Further by
researching the advantages of doing business abroad and figuring out which nation is best for
your company is important. The following are the benefits of doing business internationally:

 Access to a variety of fresh markets with excellent growth prospects.

 Access to novel approaches, goods, and techniques that could increase
productivity
 Possibility of developing fresh goods and services for a worldwide market.
The drawbacks to take into account when a firm expands abroad are as
follows:
 Communication difficulties might result from time zone, linguistic, and
cultural issues.
 Account settlement and debt collection can develop into a drawn-out and
tiresome process.
Overall, lowering external risks is one of the advantages of corporate expansion (such as
those posed by competition, the market, or technology changes). Additionally, growth can
give the appearance of greater financial sustainability because bigger companies are
sometimes seen as more desirable by lenders and investors. Advantages of business
expansion more explicitly include:

 Bringing in new clients in new markets or with new goods and services. A sizable and varied
customer base also protects your company from becoming overly dependent on a single
customer.
 Generating scale economies. Spreading business risk and minimising the damaging effects of
one bad product or business choice are two advantages of developing a company. By
operating in many markets or product categories, you can minimise your cost of doing
business per customer by spreading your operating expenses across a larger number of
markets or clients.
 strengthening your position in the market. The ability to influence market price that comes
with growing your firm is one of the major benefits.
 Diversification improves security. By entering new markets or launching new products and
services, you can rely on different revenue streams in the event that one area of your
organisation is subject to market fluctuations.

The following issues related to inadequate planning and preparation should be avoided:

 Expansion that occurs too quickly is among the biggest errors. This can put
your company at risk since expansion can place too much pressure on all
aspects of the organisation, including suppliers, employees, and the crucial
cash flow, which can send your company into a downward spiral.
 Another thing to be careful of is inadequate planning, which can harm your
business. For instance, let's say your company accepts online orders through
your website, but you don't have a secure client database or a method for
customers to consent to receiving emails from third parties. As a result, you
run the risk of being charged with improper data handling and facing sizable
fines under GDPR.

Why does the company export?

Swiss Singapore India Pvt Ltd. is just a company that is a branch office of the foreign
company and hence has to export goods as one of its core activities. Mr Shalin highlighted
some points which might have led the head office, that is, Swiss Singapore Overseas Pte Ltd
to export. These are some of the reasons that have encouraged the company to export:

 Thanks to technological advancements, particularly the internet, it is now easier than ever to
access export markets and draw in new clients . Additionally, the export procedure is now
far simpler and quicker because to the ability to prepare, validate, and transmit many
export documents electronically.
 Exporting enables businesses to tap into new revenue streams. Given that less than 1% of the
world's population lives in India, why limit your business to such a niche market? Exporting
is crucial for businesses who want to significantly expand in order to have access to this
sizable international market.
 By trading in more markets, you will be insulated against changes and potential downturns in
the domestic market, which can negatively affect your business. Exporting to a larger range of
markets lowers the risk to revenue.
 It boosts business turnover, profitability, and stability – A properly executed export strategy
will boost business turnover and profitability, hence boosting business stability and
shareholder value.
 Businesses have the chance to set competitive prices because the pound is still relatively weak
compared to the US dollar and the euro, allowing you to set lower prices for products
intended for export.
 It will improve a company's profile: By adding the worldwide aspect of exporting, your
company's image and profile will be improved.
 Because companies need to stay one step ahead of their rivals—you don't want to fall behind
if your rivals are already exporting!
 It can raise a company's efficiency - Expanding your customer base and receiving more orders
will increase your manufacturing efficiency, lower your costs, and let you use all of your
available capacity.
 It offers incentives to expand a business' product offering. Trading in more markets will aid in
the development of new and updated items, expanding product ranges that satisfy the
demands of global clients.
 A tonne of assistance and support is available, including from groups like UKTI, British
Chambers of Commerce, and, of course, Access To Export, which is always willing to assist.

What is the process that is followed?

As mentioned by Mr. Shalin, I found out that these could be the process of exporting goods:
Step 1: The company must register with a number of institutions, including the Reserve Bank
of India and the Income Tax Department (RBI). Additionally, the company must designate
agents who can pick up orders from international clients (importer). The importer may
provide the Indian exporter orders directly or through import firms.

Step 2: The Indian company must obtain an export licence from the Government of India
after receiving the importer's order. To do this, the company must apply to the Export Trade
Control Authority and obtain a legal licence. The allowable total quantity of products that can
be exported is referred to as the quota.

Step 3: Typically, the company requests the letter of credit from the importer; but, on
occasion, the importer submits the letter of credit with the order.

Step 4: The term "foreign exchange rate" refers to the rate at which one's own currency can
be converted into another, such as the rate of the Indian rupee to the US dollar. The value of
the dollar changes occasionally. As a result, the importer and the company mutually decide
on the exchange rate.

Step 5: According to exchange control regulations, an Indian exporter must follow specific
foreign exchange formalities. Each exporter of products is required under the Foreign
Exchange Regulation Act of India (FERA) to submit a declaration in the format specified in a
certain way. The declaration states:- The foreign exchange earned by the exporter on exports
is needed to be disposed of in the manner stipulated by RBI and within the given term.
Authorized foreign exchange dealers are required to handle shipping documentation and
discussions. Only methods that have been approved will be used to collect the payment for
the exported products.

Step 6: The company must then undertake the necessary preparations for the directive.
Marking and packaging of the export-bound goods in accordance with the requirements of
the buyer. Arranging the pre-shipment inspection in order to obtain the inspection certificate
from the Export Inspection Agency. Purchasing an insurance policy from the Export Credit
Guarantee Corporation (ECGC) to protect yourself from credit risks. Acquiring the necessary
maritime insurance coverage. Choosing a forwarding agent, sometimes referred to as a
custom house agent, to handle customs and other associated issues.
Step 7: The formalities that the agent must complete are as follows: The forwarding agent
first seeks an authorization from the customs department to export the items. He must provide
the shipping business with all pertinent information about the products being exported,
including their nature, number, and weight. The shipping bill or order must be prepared by
the forwarding agent. The forwarding agency must pay the fees and make two copies of the
port challans. The loading of the cargo onto the ship is the master's responsibility. In the
presence of customs officers, the loading must be completed according to the shipping order..
The receipt is issued once the cargo is placed into the ship.

Step 8: The Indian exporter of the products goes to the shipping firm and shows them the
copy of the receipt that was issued by the ship's master in exchange for the Bill of Lading. A
bill of lading is an official document that lists both the name of the destination port and a
detailed description of the items carried onto the ship.

Step 9: Inform the Importer of the Shipment The Indian exporter notifies the importer of the
goods of the dispatch of the products by sending shipment advise. Along with the advisory
note, the exporter also delivers a non-negotiable copy of the Bill of Lading, a commercial
invoice, and a copy of the packing list.

Step 10: The Indian exporter attests to having all required shipping paperwork, including:
Policy for Marine Insurance The Consular Statement Authentication of Origin The Business
Invoice- Invoice of Lading The exporter then uses the commercial invoice as the foundation
for a Bill of Exchange. Documentary Bill of Exchange refers to the Bill of Exchange that is
included with certain papers. After that, the exporter gives the money to his bank.

Step 11: The exporter of the items must complete specified banking processes in order to
receive the export revenues. These procedures are started once the bill of exchange is
submitted. The exporter typically gets paid in foreign currency.

What are the factors influencing export?

The following variables affect the value of a nation's exports and imports according to me
and Mr. Shalin:
 I. The country's inflation rate: Domestic businesses and people are likely to
purchase a sizable amount of imports if the country's inflation rate is
quite high. Companies in the nation may also have some trouble
exporting. However, a decline in inflation would improve the nation's
competitiveness abroad and would result in more exports and fewer
imports.
II. A decline in a nation's exchange rate will result in higher import prices
and lower export prices. The value of its exports will increase as a result,
while the amount spent on imports will decrease.
III. Productivity: A nation's labour expenses per unit decrease and its goods
become more affordable the more productive its workforce is. A growth
in productivity is likely to result in more consumers and businesses
purchasing the nation's goods, which should cause exports to increase
and imports to decline.
IV. Marketing: In addition to their quality and price, exports' sales are also
determined by how well domestic companies advertise their goods.
Similar to this, the success of foreign companies' marketing initiatives
has an impact on the volume of imports that are purchased. selecting a
forwarding agent, sometimes referred to as a custom house agent, to
handle customs and other associated issues. vi. Domestic GDP: More
imports may be purchased if domestic revenues increase.
V. More goods will be purchased by households, some of which will be
imported. Some domestic companies may decide to move from the
foreign to the local market as a result of the increase in domestic demand.
Exports will decrease if this does happen.
VI. Foreign GDP: Foreigners will purchase more goods if their incomes
increase. The nation might be able to export more as a result.
viii. Trade constraints: By easing trade restrictions abroad, home
businesses will find it simpler to export their goods to foreign nations.

What are the challenges that the company has to face?

The main challenge faced by the company was due to political barriers. The Russia-
Ukrainewar and the economical crisis of Sri Lanka led to a decline in the sales of the
company for this year. The other challenges faced by the company are:
1. Locating new potential customers- Planning and research are necessary before exporting
goods to international markets. For instance, finding buyers for your items internationally can
be difficult if you don't have any contacts in those regions. You must develop a strategy that
prevents cultural differences from having an adverse effect on your firm.

2. Discovering the best market for a particular product - One of the biggest obstacles in
international trade is deciding which product to export to which market. Every market has
unique needs and specifications. It is crucial to conduct market research on the markets you
want to target, identify their target consumers, and take note of any relevant product trends.
While everyone who exports wants to make money, it's crucial to maximise how you get that
money to different parts of the world. Your business model might succeed or fail based on the
right markets. You need a supply chain data & research platform that can assist you in making
data-driven business decisions in order to identify the appropriate markets.
3. Import/export duties and tariffs - The government imposes export duties on a selection of
goods. In addition to export taxes, import tariffs also have an impact on exports. An import
tariff is a tax that a nation levies on a single imported item. As a result, it will raise the overall
costs for the clients who will purchase or import your goods. Your clients' ability to purchase
your goods may be impacted if your target country raises import duties. If you want to
overcome this difficulty, you must be able to price your products with import and export
tariffs. Make sure you can mail these items to your consumers at a reasonable price.

4. Quality criteria- Exporters may need help in achieving foreign quality standards in addition to
import/export duties. For instance, many businesses are unable to comply with the stringent
requirements for the export of food and beverage items to new markets. For instance, the
American Spice Trade Association's (ASTA) standards are what are required in many regions
of the world when it comes to spices. The FAQ (Fair Average Quality) standard, though, is
also recognised in other regions. Along with ensuring that your products satisfy quality
standards, you must also pay attention to branding, labelling, and packaging as agreed upon
by the buyer and you.
5. The currency exchange rate- The value of one currency when converting it into another is
known as the exchange rate. People frequently use USD and other strong currencies for
international payments. Export activity is promoted when the value of a foreign currency rises
relative to the local currency. On the other hand, when a foreign currency's value falls, export
activity growth is hampered. For instance, the US-China trade war caused the Yuan's value to
decline in relation to the USD. However, despite the US government imposing significant
taxes, this enabled entrepreneurs to bring in cheaper goods from China.
6. Pricing strategy: Your pricing is based on what your rivals are charging. Many exporters are
not very engaged in market research to develop the best price plan that affects their ability to
 compete in international markets. Tariffs on import and export must also be considered when
pricing your goods for export. Make an effort to offer lower prices than your rivals. If you
don't know how your rivals are cutting their pricing, looking at specific shipping data could
be able to help.
7. Compliance and Documentation - One of the main problems facing exporters today is the
complicated set of compliance requirements. The compliance process is frequently
complicated and unclear. Additionally, various bureaucracy and authorities often make it
expensive and difficult to conduct an export business.

How does the company address the challenges?

These are some of the ways how the company addresses the challenges. Mr Shalin quotes
some of them.

1. Before you start exporting, develop an export strategy. Avoid being drawn into
exporting by "accident."
2. The quality of samples should match that of the production that will be sent.
3. You need to be really clear with your customers. Never make any assumptions or use
suppositions in your work.
4. Before you start, research and understand the business practises of your export market
and its clients.
5. Give the buyer thorough price outlines and price quotes. Recognize your Incoterms
(if you're unsure what they are, click here to learn more).
6. Consider any potential issues (both internal and external) that might develop and
affect shipping or delivery. Prepare substitutes or take preventative measures.
7. Recognize that exporting to new markets comes with a learning curve that affects the
organization's performance. Calculate the time and money this will cost.
 8. Record all agreements with the client and have them signed (dates, specifications,
changes, time, everything). If you are unable to personally sign the agreements and
revisions, confirm everything via email or fax.
9. Be wary of exclusivity contracts. Everyone wants exclusivity, but can you sustain
your entire export production with that exclusivity? Will it restrict your capacity to
develop?
10. Establish a system for quality control across the entire business.
11. Before the product arrives at the export destination, research the transportation,
temperature, and weather circumstances that it will encounter.
12. Develop a price strategy for exports. Before you start quoting pricing, be aware of
where you're going, how you want to get there, your costs, and the necessary profit
margins.
13. Clearly define manufacturing costs and differentiate them from sales costs necessary
for exports. Give the sales team a starting price from which to expand, and make sure
they specify the expenses linked to marketing and sales in the export markets.
14. Quality concerns and recommendations must be handled and carried out right away.
Every employee, from production to sales to the executive suite, must comprehend
this.
15. Order, planning, and discipline. Planning and coordination are required at all
times for production, buying of raw materials, financing, infrastructure investment,
human resources, sales, and marketing.

What are the strategies adopted by the company? The strategy adopted by the company
involves:

 Establishing the short- and long-term goals, and then plan a course of action to
get there.
 Making a financial resource calculation and not just rely on anticipated profits.
 Determining any possible dangers associated with business growth
 Creating a culture of growth. Asking for the management’s advice while
defining goals and getting the management and team ready for the upcoming
changes.
 Setting up reporting mechanisms. Before they begin the expansion, making a
decision about how and when to assess the progress.
Darshan Shah (2123511)
 EXPORTERS IN THE ELECTRONICS AND STEEL SECTOR

About the Company

Vizin India Private Limited, founded in 2018, is one of the leading providers of OEM/ODM
servicesfor mobile accessories. The company has been focusing on perfecting our brand
vision and growing our image as top producers of tech accessories including Data Cables,
Mobile Chargers, Bluetooth Speakers, USB Chargers, and more since our inception. By
contributing an array of their important items like Face protection Masks, IR Thermometers,
and Face shields, and by employing all of their teams and power to manufacture them, the
company is happy to nurture and feed the Make in India movement by relieving the situation
of the global pandemic.

All things are created with quality standards and quantity demands in mind to keep on top of
market demand.
In recent years, they've grown quickly, notably in terms of R&D expertise. They now have
over 400 employees and a manufacturing space of approximately 70,000 square meters.

The company creates our visions, refine and perfect the accessories, and display them in 3D
with the utmost care.

Types of Services Produced:

Vizin India Private Limited is pleased to provide OEM/ODM services for technology and
mobile accessories that meet the ISO 9001:2015 international quality system's criteria. At
every level of the process, they also work with their clients. In order to provide the greatest
possible quality of goods and services at a reasonable price, collaboration with consumers is a
vital part of the manufacturing process. While the company will make an attempt to indianize
their products in order to appeal to the Indian market, the quality of the products produced
will match export standards.

 Skilled R&D team with superior testing labs

 Our core team has over 12 years of expertise in the tech accessory market.
 6 Quality Controls • 12 Production Lines • CE and ISO Certification
 Manufacturing Area: 70,000+ sq. ft. •

Products Manufactured

As the company provides the OEM services to its variety of customers to satisfy various
demands (OEM – Original equipment manufacturer).The variety of products manufactured at
Vizin India Pvt. Ltd. Are as follows:

Power banks ,You can recharge your battery-operated electronics with a power bank. A
power bank might be large enough to store more power or small enough to fit in your pocket.

Data Cables ,A data cable is any media that enables baseband communications between a
transmitter and a receiver. Here are several examples: Ethernet Cables for Media Networking
Cables for Token Rings occasionally used.
Wall Chargers, A type of external power supply typically contained in a container
resembling an AC socket is an AC adapter, also known as an AC/DC adapter or an AC/DC
converter.

Speakers, An iPod, computer, smartphone, tablet, or other Bluetooth-enabled amplifier and

loudspeaker that have already been paired (pre-associated) with one or more of these devices.
The Bluetooth speaker, which comes in many shapes and sizes, as well as rechargeable and
changeable battery types as well as wall- powered ones, receives compressed digital audio
streams from the host device. The audio is subsequently decompressed, decoded, and
amplified using the built-in speakers.

Neckbands, On the other hand, wireless headphones with a neckband are headphones with a
short neckband that fits comfortably around your neck while used. Longer battery life is
made possible by the neckband's integration of the battery and Bluetooth transmitte

Truly Wireless Stereo (TWS), TWS is different from wireless accessories that rely on
physical connections to make sure that various components of a device work together rather
than connecting to a media source.

Wired Earphones, The wired headphones function similarly to large speakers. They are
essentially tiny speakers made for solitary listening. They need headphone connectors and
plugs so that sound may be sent from the device to the headphones. Some of the most
common types of headphone jacks include 3.5mm, TRS, TRRS, TRRRS, and USB.

SOURCES OF FINANCE FOR THE COMPANY-

Vizin, as a large multinational corporation, has multiple sources of finances. Here are some
of the primary sources of finance for Vizin:

Revenue from sales: The primary source of finance for Vizin is revenue from sales of their
products and services. Vizin produces a wide range of products, including smartphones,
televisions, home appliances, semiconductors, and other electronic devices.
Loans and bonds: Vizin also obtains financing through the issuance of corporate bonds and
loans from banks and other financial institutions. The company has a strong credit rating,
which allows it to borrow at favorable rates.

Investments and acquisitions: Vizin invests in various companies and also acquires other
companies to expand its business and diversify its revenue streams. In some cases, Vizin also
raises funds by selling shares in its subsidiaries.

Government funding: Vizin has received government funding in the form of subsidies,
grants, and tax breaks for research and development, as well as for its manufacturing
facilities.

Joint ventures and partnerships: Vizin also partners with other companies to develop and
market new products and services. These joint ventures and partnerships can provide
additional financing for Vizin's operations.

Global reach of the industry

The market for mobile phone accessories has a huge future for manufacturers due to the large
number of mobile device users and the quick adoption of smartphones and tablets. This is
also backed up by a steady drop in smartphone prices around the world. Consumers' buying
and spendinghabits have changed as disposable income has increased, particularly in
metropolitan areas. The global use of mobile devices by youth provides a strong boost for the
market's growth. In addition, due to the simplicity of cash on delivery payment and numerous
discounts offered by e-retailers for products, the online retailing trend in the mobile
accessories industry is surging. The worldwide mobile phone accessories market is predicted
to develop as a result of this.

As disposable income has risen in recent years, particularly in emerging economies, so has
the general public's preference for mobile accessories. Global disposable income climbed by
3.1 per cent in 2020 compared to 2018, according to Coherent Market Insights. In addition,
expanding population, particularly in emerging economies such as the Middle East and Asia
Pacific, is expected to boost demand for mobile phone accessories. According to the United
Nations, the global population will reach 9.6 billion by 2050, up from 7.2 billion in 2050.
(UN). Furthermore, the rising population, particularly in emerging nations such as the Middle
East and Asia Pacific, is predicted to increase demand for mobile phone accessories.
According to the United Nations (UN), the world's population

will reach 9.6 billion by 2050, up from 7.2 billion in 2018. Smartphone users all over the
world are currently in great demand for mobile phone accessories. The market for mobile
phone accessories has been significantly impacted by the widespread use of smartphones.
Over the next few years, the smartphone sector is anticipated to grow dramatically due to
growing demand and online purchasing habits.

Exporting

When a country creates goods and services and sells them to another country, this is referred
to as exporting. Energy, autos, food, and raw materials are all common exports.
Businesses that sell their goods and services to customers in other nations are exporting them,
which means they manufacture them in one country and ship them to another. Businesses can
swiftly expand their potential market by exporting.

Net exports are a component of GDP in macroeconomics, along with domestic consumption,
physical investment, and government spending. Foreign demand for a country's exports is
positively influenced by foreign income and adversely influenced by the strength of the
producing country's currency (i.e., how expensive it is for foreign consumers to purchase the
producing country'scurrency in the foreign exchange market).

Exports are extremely significant in modern economies because they provide people and
businesses with many additional markets for their goods. One of the primary responsibilities
of government diplomacy and foreign policy is to promote economic commerce by
stimulating exports and imports for the advantage of all trading parties.

Businesses export goods and services for a variety of reasons. Exports can boost sales and
profits by creating new markets or expanding current ones, and they may even give an
opportunity to gain a major worldwide market share. Exporters spread corporate risk by
diversifying into multiple markets. By expanding operations to satisfy rising demand,
exporting into international markets can frequently cut per-unit costs. Finally, firms that
export to overseas markets receive fresh information and experience, which can lead to the
development of new technology, marketing strategies, and insights into foreign competitors.
Companies that export face a distinct set of challenges. Extra costs are probable since
businesses must devote significant energy to researching international markets and
customising products to fit local demand and requirements.Any government rule, regulation,
policy, or practise that is intended to protect domestic products from international
competition or artificially boost exports of specific domestic items is considered a trade
barrier. Foreign trade barriers are government-imposed policies and practises that restrict,
obstruct, or impair the international exchange of commodities and services.

Interview

I interviewed a senior export executive of Vizin India Pvt. Ltd Mr. Vipin who manages all the
export related activities of the company. He previously worked at various exporting firms and
has experience of 5 years in this field. He is MBA graduate from Amity University in global
businessand currently working for Vizin India pvt. Ltd. He gave me insights of every specific
detail I asked him and provided me a lot of information regarding the opertions of export in
the company.

The following are the certain details of the interaction:

Why did the company choose exporting?

There are various reasons for the company to start export such as

1. Innovation and Improvement: Company wanted to compete with the international

standards as the company believed that they have saturated the domestic market.
Company wanted the innovation in its products and wanted to improve the quality
that it provides. When the company will operate globally it will have to face certain
challenges which will motivate the company to enhance its products and grow
personally.
2. Increase in sales: The exporting of goods will surly lead to increase in sales of the
commodities as the global market is expanding. The company is opportunistic and
doesn’t want any chance to go in vain. As the company saw the demand has increased
in the global market, they increasedtheir range of products and started exporting their
goods.
3. Increased Profits: The foreign clients tend to order in huge bulks, which results in
high profit margins. Clients also provide payment in advance which motivates us to
process their order as early as possible. The company has its manufacturing plants set
up in areas with low working capital requirements, which lowers the cost of
manufacture of the components and increases the company's feasibility to export,
earning higher margins than domestic distribution of the same component. When
compared to domestic distribution, the varied PPP of each currency allows the
corporation to earn more profits.

4. Recognition: Export business created a lot of demand of professionals and trained

employees, this increased our job posting and recruitment in various online platforms
like Naukri.com,linkedIn etc. Due to the exporting decision we went online and
posted the job opportunities for the organisation. This gave us digital presence which
 even resulted in increased clients in the domestic market and currently the company is
getting massive engagement on their website and online platforms globally
5. Increased economies of scale: Access to more clients and businesses. If we just
operate in this country, you may be limiting the amount of money we could make
from opportunities to expand your firm worldwide. The primary goal was to cater to
global clients and gain global visibility in order to expand the potential consumer
base. The presence of worldwide clients can aid in achieving better economies of
scale by lowering manufacturing costs per unit and so increasing profit margins.

What are the products exported and the places company exports its goods?

The majority of the products that are exported includes TWS, Neckbands and Smartwatches.
These products are exported to Dubai, Singapore and Thailand. These are the tourist places
where there are exhibitions of the products and there is huge market for the sale of the mobile
accessories in these areas. The export is amounted to be approximately of 20-25 crores per
year. The average export was reduced in last few years due to pandemic.

What are the issues faced by the company while exporting goods?

There are several issues faced by the company while exporting the products and the major
issues comes out to be:
1. Battery Component: The products consists of lithium ion batteries which needs proper
packaging and documentation process. The export through air is quite costly because there is
a separatecharge for batteries because there is high changes of batteries o heat up and explode
so the charges to export batteries are quite high. If there is any carelessness in packaging and
documentation, the whole lot is rejected with a penalty.

2. Dealing with Forwarder: Forwarder bridges the gap between the importer and
exporter, so finding the forwarder who is reliable and provides us its services with
minimum cost is again a major issue. The company needs to negotiate with the
forwarder regarding the export of certain products and the fees they will charge for
the export of certain items. As the company exports products including batteries and
that too in bulk, a forwarder needs to make sure that there is proper documentation
and enough labour to load the material.
3. Damaging of Products: Sometimes issue arises that the products that are exported
turns out to be damaged. The importer complains and return the products to us which
also causes huge amount to loss to company image and there is probability of losing a
potential customer. There is huge amount of product loss as the goods sometimes get
destroyed in transit due to inevitable reasons.
4. Improving Logistics: Logistics plays a major role in the export of goods as it makes
sure the timely arrival of goods at the importer’s place. There is lead time that the
company gives to importer and accordingly the importer gives to its own clients.
Sometimes there is delay in the orders due to inefficient third party logistics and
hence results in clashes between the exporter and the importer.
5. Exchange rate: There is constant change in the exchange rates so at the time of
payment sometimes the importer bears the loss and sometimes the exporter bears the
loss, because when the deal is made the exchange rate might be different from the
date when the payment is made. So this makes a significant difference in the amount
received by the exporting firm.

What are the ways these issues are tackled?

The company has adopted various strategies through which these problems are being tackled
taken and the interests of the importer are also being taken care of. The strategies are as
follows:

1. Training to company’s logistics team: Proper training is given to the team of logistics
so there is no issue regarding the packaging, documentation and any other aspects
from the exporter’s side. There are workshops conducted and the managers of
logistics department are provided with webinars from professionals for proper
dispatching and custom clearance of the products.
2. Reference of forwarders: The company now accounts a large number of exporters but
initially when the company was facing the issue of finding a perfect forwarder, the
company contacted different exporting firms and asked them provide with the
reference of forwards so that there is no more wastageof time and effort in finding a
perfect forwarders.
3. Insurance: To prevent the loss from damages in the transit the company insures the
products so there is no monetary loss to the company while the manager try to talk
and convince the importers and ask them to reinsure the product when it reaches their
country so that any damages canbe claimed by the insurance company and there is
win – win situation at both the ends. If the products are being damaged and received
by the importer and the process of insurance claim is being run, the company will
export a different set of products to the importer so that there is minimum delay for
the importer to deliver it to his clients.

4. Change in Logistics: The company has changed its 3 rd party logistics company as
there were many complaints regarding the delay in product arrival. The company has

shifted to a bigger logistics chain FedEx. Since the change of the 3 rd party logistics
the complaints have reduced and there is no issues in the custom clearance for the
products.
5. Exchange rate hedging: Both the exporter and the importer company comes together
and decide on a price which will be paid to the exporter when the goods are delivered
to importer. This reduces the risk of volatility of the exchange rate and an agreement
in the price makes sure that there are no conflicts of interest at the time of payment.
What are the factors influencing the export of the products?

Mr. Vipin mentioned various factors that can influence the exports of the products. Some of
them were:

1. Country inflation rate: If the inflation rate is high in India which means that the products
manufactured in India will be more costly, so the importing companies prefer to import from
countries where inflation is less. The inflation and exports are inversely proportional as the
inflation increases andexports decreases.

2. Exchange Rate: If the value of the currency depreciates this means there will be high
exports as the foreign companies will try to buy the products from the country whose
currency is depreciated, hence the foreign companies increase their demand of products from
the company.

3. Productivity and Quality: Foreign firms are investing a lot of capital in exporting material
so they require precision in the work and timely delivery of the items as they have further
commitments to their clients. If the exporting firm is capable of producing the required
quantity of products in the specified time with premium quality to the importing firm, the
only the firm should take order or else deny it because if the company is unable to process the
order within the required time and quality a very bad image of the company is formed in the
market.

4. Marketing: The way you market the product in the market is also plays a major role as
mentioned above as well due to the online presence and marketing at different B2B platforms
like IndiaMart and Udaan

5. Trade Restrictions: Export taxes are levied on goods or services when they leave the
economic territory or when they are given to non-residents; they include export tariffs, export
monopoly profits, and taxes resulting from various exchange rates. An export tax levied by a
large country raises the world price of the taxed commodity, which raises the relative price of
exports relative to imports. The country applying the export tax will be able to import more
for each unit of the exported commodity, increasing welfare.
Government schemes for the industry-

There are several government schemes for the mobile accessories industry in India, some of
which are:

Make in India: This is a flagship initiative of the Indian government to promote

manufacturing in India. The mobile accessories industry can take advantage of this scheme to
set up manufacturing units in India and avail benefits such as tax incentives, ease of doing
business, and a simplified regulatory environment.

Electronic Manufacturing Clusters (EMCs): The government has established EMCs to

provide infrastructure and facilities for the manufacturing of electronic products, including
mobile accessories. The EMCs offer benefits such as a common facility center, testing and
certification labs, training centers, and logistics support.

Technology Upgradation Fund Scheme (TUFS): This scheme provides financial assistance
to micro, small, and medium enterprises (MSMEs) for upgrading their technology and
modernizing their production processes. The mobile accessories industry can avail of this
scheme to upgrade their manufacturing facilities and adopt new technologies.

Modified Special Incentive Package Scheme (M-SIPS): This scheme provides financial
incentives to companies that manufacture electronics in India. The mobile accessories
industry can take advantage of this scheme to avail of benefits such as capital subsidy,
reimbursement of CVD/Excise, and interest subsidy.

Export Promotion Capital Goods (EPCG) Scheme: This scheme provides import duty
concessions to Indian manufacturers who import capital goods for the production of export
goods. The mobile accessories industry can take advantage of this scheme to import capital
goods and manufacture products for export
What are your expansion strategies?

1. Increase in number of production firms: The organisation is going to set up more

productions units in the areas where they get the labour at minimum wages, so that the
firm can take more orders for exports. Currently as per the production ability of the
company, the firm processes the material of around 20-25 crores per year. They deny
to take any orders that are beyond their capabilities. The company will increase their
resources and increase their production apatite so that they can process the order more
efficiently.
2. Listing on global B2B eCommerce platforms: The company will start listing its
products on international B2B platforms, preferably on Shopify Plus which is most
prominent platform, with over 1 million eCommerce Websites. This will give the
business a global reach and competence with other brands. This will in- turn improve
our products quality and also give them a global recognition. They are further willing
to put up their marketing campaign within the shopify app by providing the offers for
the clients and attractive the potential clients.
3. Focusing on new product development: The company will be focusing on the new
product development especially the on products features that have a huge demand in
Dubai. The company will try making the products that specifies each and every need
of the people. The constant improvements in the existing products and launching new
products with maximum utility is their main motive. They are planning to launch
different segment of smartwatches which is pocket friendly and feature loaded
product and initially send for sampling. The product have a positive response and they
are expecting orders from different importers.
4. Constant market research: To analyse the changing demands of the society regarding
the accessories, the company will hire a research team which will analyse the trends
in the global market and accordingly company will mould its operations which ae in
favour of the market and hence maximize the profits of the company by rise in sales.
5. Improvement in ERP models: The current ERP model in the firm is of a traditional
outlook, the company is planning to switch onto SAP Logan which has a bit complex
but a comprehensive structure. For this the company is hiring professional to train the
 current employees of the company. This will increase the skill set of the employees
and also help the company to expand and this ERP is well diversified and involves
various other features which the SAP Business One model lacksin its functioning.

APPENDIX

Questionnaire for the exporting firm executive

1. What all are the factors that led company to start exporting?
2. What is the yearly average export of the company, what all products are exported and
to which place?
3. What are the issues company is facing while exporting the goods?
4. How is the company dealing with those issues?
5. What are the supporting and undermining factors of export?
6. What are the documents used in exporting?
7. Strategy adopted by the company for expansion of exporting business?
Company 2 – Garodia Steel Industries

INTRODUCTION TO THE SECTOR-

Garodia Steel ltd.

The steel industry in India is one of the largest in the world, with the country being the
second- largest producer of crude steel after China. The industry plays a significant role in the
country's economic development, contributing to the growth of several sectors such as
infrastructure, construction, and manufacturing.

The steel industry in India dates back to the colonial era, with the establishment of Garodia
Iron and Steel Company (TISCO) in 1907. Since then, the industry has grown significantly,
with the establishment of several other steel plants such as Steel Authority of India Limited
(SAIL), Rashtriya Ispat Nigam Limited (RINL), and Jindal Steel and Power Limited (JSPL),
among others. India's steel industry is dominated by integrated steel plants, which use iron
ore and other raw materials to produce steel. The industry also has a significant presence of
secondary steel producers, who use scrap as their primary raw material. The steel produced in
India is of high quality and is used for various applications such as construction,
infrastructure, automobiles, and consumer goods.

The Indian government has implemented several policies to support the growth of the steel
industry in the country, such as the National Steel Policy 2017, which aims to increase the
country's crude steel production capacity to 300 million tonnes by 2030. The government has
also undertaken several initiatives to improve the industry's competitiveness, such as the
reduction of import duties on key raw materials and the introduction of measures to
encourage domestic production.
However, the steel industry in India also faces several challenges, such as the high cost of
production due to the high cost of raw materials, logistics, and energy. The industry also
faces stiff competition from other steel-producing countries such as China, Japan, and South
Korea. Despite these challenges, the steel industry in India is expected to continue to grow,
driven by the country's increasing infrastructure and construction activities. The industry is
also expected to benefit from the government's focus on the development of the
manufacturing sector, which would drive the demand for steel.

ABOUT THE COMPANY-

Garodia Steel Ltd is a company that operates in the steel industry in India. The company was
founded in 1987 and is headquartered in Kolkata, West Bengal. Garodia Steel Ltd is engaged
in the manufacturing and trading of various steel products such as TMT bars, wire rods, and
billets.
The company has a manufacturing facility in the Dankuni Industrial Estate in West Bengal,
with a production capacity of 100,000 tonnes per annum. Garodia Steel Ltd has a strong
presence in the eastern region of India and has established itself as a reliable supplier of high-
quality steel products.
Garodia Steel Ltd has a diversified customer base, catering to various industries such as
construction, infrastructure, and manufacturing. The company's products are known for their
quality, strength, and durability, and are widely used in various applications such as building
construction, bridges, and dams.

The company has a dedicated research and development team that continuously works
towards developing new and innovative products to meet the changing needs of its customers.
Garodia Steel Ltd also has a strong distribution network, with a presence in various states in
India.

Garodia Steel Ltd is committed to sustainable development and has implemented several
initiatives to reduce its carbon footprint. The company has implemented energy-efficient
measures in its manufacturing process and has also installed a waste heat recovery system to
reduce its energy consumption.

In addition to its business operations, Garodia Steel Ltd is also actively involved in various
corporate social responsibility (CSR) activities. The company has undertaken several
initiatives in the areas of education, healthcare, and community development, aimed at
improving the lives of the people in the communities where it operates.
Overall, Garodia Steel Ltd is a reputable player in the steel industry in India, with a strong
focus on quality, innovation, and sustainability. The company's commitment to CSR
activities and community development also sets it apart as a socially responsible corporate
entity.

SOURCES OF FINANCE

Garodia Steel Ltd is a leading steel manufacturing company in India, and it has multiple
sources of finance. Here are some of the primary sources of finance for Garodia Steel Ltd in
India with relevant numbers:
Debt financing: Garodia Steel has raised debt financing through various channels, including
bank loans, bonds, and commercial paper. As of March 2021, the company's total debt stood
at INR 1,16,682 crore ($15.7 billion).

Equity financing: Garodia Steel has raised equity financing through the issuance of shares to
the public and institutional investors. As of March 2021, the company's market capitalization
stood at INR 95,868 crore ($12.9 billion).
Internal accruals: Garodia Steel generates significant cash flows from its operations, which
it uses to finance its capital expenditure and debt repayments. As of March 2021, the
company's cash and cash equivalents stood at INR 23,379 crore ($3.2 billion).

Foreign direct investment: Garodia Steel has received foreign direct investment (FDI) from
foreign investors for its various operations in India. As of March 2021, the total FDI inflow
into the company stood at INR 42,073 crore ($5.7 billion).
Government schemes: Garodia Steel has also received financial assistance from the Indian
government for various projects. For instance, the company received a loan of INR 2,500
crore ($340 million) under the National Investment and Infrastructure Fund (NIIF) for its
Kalinganagar plant expansion project.

Overall, Garodia Steel uses a mix of debt, equity, internal accruals, foreign direct investment,
and government schemes to finance its operations and growth.
AWARENESS ABOUT EXPORT PROMOTION SCHEMES FOR STEEL
INDUSTRY IN INDIA
The Government of India has implemented various export promotion schemes to boost the
steel industry's exports. Here are some of the schemes that steel manufacturers in India can
benefit from:

 Merchandise Exports from India Scheme (MEIS): This scheme provides incentives to
exporters of notified goods, including steel products, based on the FOB (Free on Board) value
ofexports.
 Export Promotion Capital Goods (EPCG) scheme: This scheme allows exporters to import
capital goods at concessional rates of duty, subject to export obligations.
 Advance Authorization Scheme (AA): This scheme allows the duty-free import of inputs,
including steel products, for the manufacture of export products.
 Duty-Free Import Authorization (DFIA) scheme: This scheme allows the duty-free import
of inputs for the manufacture of export products, subject to a specific export obligation.
Service
 Exports from India Scheme (SEIS): This scheme provides incentives to service exporters,
including those in the steel industry, based on the net foreign exchange earned. Steel
manufacturers in India can also benefit from various trade agreements and partnerships that
India has with other countries. For example, the Comprehensive Economic Partnership
Agreement (CEPA) between India and Japan has provided tariff reductions for Indian steel
exports to Japan. Similarly, the India-Korea Comprehensive Economic Partnership
Agreement (CEPA) has provided tariff reductions for Indian steel exports.

It is essential for steel manufacturers in India to be aware of these export promotion schemes
and take advantage of them to increase their exports. They can consult with government
agencies such as the Ministry of Commerce and Industry and the Export Promotion Council
for Engineering and Export Promotion Council for Chemicals and Allied Products to
understand the procedures and requirements to benefit from these schemes.

INCENTIVES AND EXEMPTIONS AVAILED FOR STEEL INDUSTRY IN INDIA

The Indian government provides various incentives and exemptions to the steel industry to
encourage its growth and development. Some of these incentives and exemptions are:

 Export incentives: The government provides various export incentives to steel

manufacturers, such as duty drawback, rebates, and tax exemptions, to encourage exports and
improve the balance of payments.
 Infrastructure status: The Indian government has granted infrastructure status to the steel
industry, which enables them to access various benefits such as lower interest rates, long-
term funding, and tax exemptions.
 Tax exemptions: The government provides various tax exemptions to steel manufacturers,
such as exemptions on customs duty, excise duty, and value-added tax (VAT) on the import
of capital goods and raw materials.
 Duty-free import of capital goods: The government allows the duty-free import of capital
goods for the steel industry under the Export Promotion Capital Goods (EPCG) scheme,
subject to certain export obligations.
 Income tax exemptions: The government provides income tax exemptions to steel
manufacturers operating in special economic zones (SEZs) and units located in backward
areas.
Interest subvention: The government provides interest subvention to steel manufacturers on
loans taken for modernization, expansion, and up-gradation of technology.
 Research and development incentives: The government provides various incentives for
research and development activities in the steel industry, such as tax credits and exemptions.
 Duty exemptions on the import of iron ore: The government provides duty exemptions on
the import of iron ore to facilitate the production of high-grade steel.
 It is essential for steel manufacturers in India to be aware of these incentives and
exemptions and take advantage of them to improve their profitability and
competitiveness. They can consult with government agencies such as the Ministry of
Steel and the Ministry of Commerce and Industry to understand the procedures and
requirements to benefit from these incentives and exemptions.

Marketing Strategies for steel industry for export in India

Marketing strategies for the steel industry in India to boost exports could include the
following:
Branding and promotion: Steel manufacturers in India can create a strong brand identity for
their products in the global market by showcasing their unique selling points, such as high
quality, competitive pricing, and customization options. They can also participate in trade
shows, exhibitions, and conferences to promote their products and network with potential
customers.

 Competitive pricing: One of the key factors in the global steel market is pricing. Indian steel
manufacturers should offer competitive pricing to attract customers and compete with other
players in the market. They can achieve this by optimizing their production costs, improving
efficiency, and leveraging government subsidies and incentives.
 Focus on niche markets: Indian steel manufacturers can focus on niche markets where they
have a competitive edge, such as specialized steel products, high-quality alloys, or eco-
friendly steel. This can help them differentiate themselves from other players in the market
and establish a strong position in the global steel industry.
 E-commerce: Indian steel manufacturers can leverage e-commerce platforms to reach out to
a wider audience and expand their customer base. E-commerce platforms provide a
convenient and efficient way for buyers to purchase steel products, and steel manufacturers
can benefit from the reduced marketing and distribution costs associated with online sales.
 Supply chain optimization: A streamlined and efficient supply chain is critical to success in
the global steel industry. Indian steel manufacturers can optimize their supply chain by
 partnering with reliable logistics providers, improving inventory management, and investing
in technology to track shipments and reduce delivery times.

Overall, Indian steel manufacturers can leverage their competitive advantages such as low
production costs, skilled labor force, and a strong domestic market to expand their exports
and gain a larger share of the global steel industry.

CHALLENGES FACED BY STEEL INDUSTRY IN INDIA

The steel industry in India faces several challenges that affect its growth and competitiveness.
Some of the significant challenges faced by the steel industry in India are:

 Raw Material Availability: The steel industry is dependent on various raw materials like
iron ore, coking coal, and limestone, which are scarce in India, leading to an increase in their
prices. The inadequate availability of these raw materials poses a significant challenge to the
steel industry's growth.
 High Production Costs: The steel industry in India faces high production costs due to high
power tariffs, high freight rates, and high interest rates. The high production costs make it
challenging for the Indian steel industry to compete with international players.
 Infrastructure Challenges: The Indian steel industry is hampered by inadequate
infrastructure facilities such as roads, railways, and ports. These infrastructure challenges lead
to delays in the transportation of raw materials and finished goods, resulting in increased costs
and reduced competitiveness.
 Dumping by Foreign Countries: Dumping by foreign countries poses a significant challenge
to the Indian steel industry. The dumping of steel products at lower prices by foreign
countries reduces the demand for domestically produced steel products.
 Environmental and Social Concerns: The steel industry in India faces significant
environmental and social concerns related to air and water pollution, land acquisition, and
displacement of people. Compliance with environmental regulations and addressing social
 concerns increase the cost of production and pose a significant challenge for the steel
industry.
 Lack of Technology Upgradation: The steel industry in India faces a lack of technology up-
gradation, leading to lower productivity and inferior quality products. Lack of investment in
R&D and modernization hampers the industry's growth and competitiveness.
 Fluctuations in Global Market: The steel industry in India is vulnerable to fluctuations in
the global market due to fluctuations in steel prices, demand, and supply. The global market's
volatility poses significant challenges to the Indian steel industry, affecting its growth and
competitiveness.

Recommendations

Based on the challenges faced by the steel industry in India, the following recommendations
can be made:

 Government Support: The government should continue to support the steel industry
through policies and incentives such as reduction in taxes and duties on raw materials
and finished goods, subsidies for research and development, and investment in
infrastructure development to address logistics issues. Additionally, the government
can also provide tax incentives for companies that export steel to encourage more
export.
 Innovation and Technology Upgrades: To remain competitive in the global market,
steel companies should invest in innovation and technology upgrades to improve
productivity, reduce costs, and enhance quality. This can be done through
collaboration with research institutes, investment in R&D, and adoption of new
technologies and processes.
 Focus on Sustainability: The steel industry is a high carbon-emitting industry, and
companies are increasingly pressured to reduce their carbon footprint. Companies
should focus on adopting sustainable practices such as reducing energy consumption,
 investing in renewable energy, recycling and reusing waste, and reducing greenhouse
gas emissions.
 Skill Development: There is a need for more skilled labor in the steel industry, and
this can impact the industry's growth. The government and steel companies should
invest in skill development programs to train and educate the workforce, which will
increase the productivity and quality of steel produced.
 Market Diversification: Companies should explore new markets and diversify their
product portfolio to reduce dependence on a single market. This can be done through
strategic partnerships, collaborations, and acquisitions to expand the customer base
and increase the company's global presence.
 Cost Optimization: Cost optimization is critical for the growth and survival of steel
companies. Companies should focus on optimizing their production processes,
reducing waste, and improving supply chain management to reduce costs and increase
profitability.

Question asked in Interview

 Can you provide information about your company such as the steel destination, steeled items,
and the motivation for entering the steel business?
 What obstacles and difficulties do your steel business encounter globally and locally in India?
 How would you evaluate the steel policies of the country and what modifications would you
suggest in the legal and regulatory frameworks to simplify the steel process?
 What actions has your company implemented to enhance its steel business and tackle the
current challenges?
 What are the future expansion plans of your business?
 Do you have intentions to expand to additional countries, and if so, which nations are on your
company's priority list?

Conclusion

It can be concluded that there is a significant relationship between physical activity and
mental health. The findings suggest that engaging in physical activity can have a positive
impact on mental health outcomes such as depression, anxiety, and stress. The study also
highlights the importance of promoting physical activity as a means of enhancing mental
health and well- being.

It should be noted, however, that this study is not without limitations. The sample size was
relatively small and only included adults in a specific geographic location, which may limit
the generalizability of the findings. Additionally, the study relied on self-reported measures
of physical activity and mental health, which may be subject to bias.

Overall, these findings add to the growing body of research on the relationship between
physical activity and mental health, and provide further support for the promotion of physical
activity as a means of enhancing mental health and well-being.

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