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Parag Saini Ankit Aggarwal Priya Singh Mayank Partap Singh Itinder Singh

.59%. China. $ as against 1558.14 million US $. the European Union. Largest market for Indian leather industry is continuously nurtured and developed FORMATION OF COMPANY Our company is among exporters of exquisite leather bags. and France. Government of India . FOB value and units exported Germany has been the principal market for the Indian leather and leather products and continues to hold its position at the top commanding about the 20% share of the total Indian leather and leather products. We are suppliers to some of the famous brand names across Europe.S.INTRODUCTION There came the long awaited dusk to the complacence of the Indian manufacturers (the village leather industry in particular) When the long slammed doors of global markets were opened to the leather industry. STATURATORY REQUIREMENTS  GET IEC NUMBER: To get registered with the DGFT (Director General of Foreign Trade).S.K.60 millions U.S. are major export commodities. leather products etc. estimated exports stood at US$112 billion and imports were around US$187. Textiles. The very fact that a major market like Germany has been chosen to build up positive image for the Indian leather products and to promote joint ventures adds one more feather in the cap of leather industry in presenting a strategy so remarkable INDIA EXPORT OF LEATHER The export of leather and leather products in total during 2006-07 has reached 2849. U. $ and in year 2005-06. $ in 1994-95 registering an increase of 16. we have prepared this table showing you the country wise exports of Indian leather products on the basis of percentage. and the United Arab Emirates To give a brief idea of the Indian exports of leather products to the world. briefcases and small leather goods. Ministry of Commerce.In 2001-02 export has reach 1. India's most important trading partners are the United States.S.9 billion. Our Company Name is “ EXPORTS” It’s a sole proprietary business organisation.93 billion U. As already project by various economic wizards. In 2006. U.61 millions U. Italy. the leather manufacturers met challenge with a renewed vigour and started capturing markets like Germany. the Indian export of leather goods reached to 2648.

IEC Number is a ten digits code required for the purpose of export as well as import. A self-certified copy of the IEC Number issued by the licensing authority concerned. o Inviting foreign experts for providing technological inputs to Indian leather exporters. o Organizing international leather fairs in India Council’s services to overseas buyers include: o Serving as a focal point for disseminating information on Indian manufacturers and exporters. o Organizing participation of Indian exporters in international fairs and buyer-seller meets. conducting exhibitions and many other things  APPLY FOR THE PAN CARD  REGISTRATION WITH INCOME TAX AUTHORITIES  SELECTION OF BANK – I would select CANARA BANK. Membership application form 2. o Organizing visits of buyers’ delegations dealing with trade information. product development. Collating and disseminating world market intelligence. Excellent worldwide . Export Performance for the last three years duly certified by Bank / Chartered Accountant 4. o Updating the information on global trends in fashion and design. As No exporter is allowed to export his good abroad without IEC number  REGISTRATION WITH EXPORT PROMOTION COUNCIL PROCESS AT COUNCIL FOR LEATHER EXPORTS FOR REGISTRATION:1. an applicant shall have to produce the following documents for issuance of RCMC. DGFT provide exporter a unique IEC Number. o Liaising with various international organizations dealing with trade information. o Providing trade and commercial information on Indian leather industry It helps in finding customers. After becoming a member of the Council. o Sponsoring sales-cum-study teams and trade delegations. As the Bank has the expertise in handling project exports of goods and services. o Dissemination of information of commercial and technological nature through seminars and magazines. Council’s services to the Indian Leather Industry: o Collecting. Membership fee through Account Payee Cheque/DD (in favour of ―COUNCIL FOR LEATHER EXPORTS) 3.

camera cases. holsters and similar containers. articles of animal gut (other than silk-worm gut) 4202 stand for Trunks. travel goods. executive-cases. Portfolios (Men’s Office Bags) and leather key chains.correspondent relationship and have the capability to handle any export. spectacle cases. Hence we have kept limited variations and designs to start with. which is not possible for us as a new entrant in the market. musical instrument cases. To start with this range would include premium quality leather belts. PRODUCT DEFINITION AS PER ITC HS CODE ITC HS code for products with outer surface of leather. saddlery and harness. . vanity-cases. The things which wie will be taking care to select the range for our products are as follows: a} It should be distinctive and easily remembered. Our product range would include: a} Leather Belts b} Leather Wallets c} Leather Portfolios d} Leather Key Chains e} Handbags / Business Cases f} Travel Bags We chose these products out of the entire leather accessories range because they are the highest selling products in the order. of composition leather or of patent leather is 42029190 42 stand for Chapter 42: Articles of leather. import. the ladies purse segment also makes very high sales. travelling-bags. if we were to survive in this segment. school satchels. gun cases.insulated food or beverages bags PRODUCT RANGE SELECTION We are marketing a range of exquisite Leather accessories for men. handbags and similar containers. leather wallets. suit-cases. binocular cases. remittance and related transactions anywhere in the world and in any currency. we would have to keep a very large variety and mix of designs. Although. brief-cases.

in handbags. Exporters of other leather items such as garments. b) The continued interest in lower-priced fast fashion items that try to copy luxury brands and consumers who are no longer ashamed to buy or admit to owning such products. belts. c)New markets for men and teens. cross over bags and sports bags. comfort and a competitive price as most important. fashion and brand awareness are still the most important.2 per cent.3 per cent share. Kanpur.b} It should not offend any particular section of the society. especially among women This market growth will be mainly driven by: a)More stimulation of fashion-based purchases by a celebrity-driven mass media. footwear components and leather. with a 14. which is the single largest buyer of Indian leather items. quality. Leather pouches for men. instead of briefcases. They regard function. These are being manufactured and exported by India and the Indian leather industry is poised to take the international markets by storm German consumers are practical and usually feel there should be a clear reason for replacing luggage. increased its imports by 7. However. but fashion is becoming more of an issue when buying luggage. Leather goods and garments are big business all over the world. also increased over a period of time. buying more of footwear—leather and nonleather—as well as saddler and harness. c} It should depict the features of the product MARKET SELECTION – Leather wear in India is basically for export though a very small quantity is available in the local market mainly in the north where the weather is conducive to leather wear and also in five star hotels where the tourists from all over the world buy leather garments. and Madras GERMANY MARKET:Germany. Most of the garments sold are designed as per international standards and the buyers are mainly foreigners who find the locally made garments very fashionable. leather goods. The main leather garment centres for manufacture are Bombay. have become more popular. For example. design. More variety in girls’ purses in different fabrics is expected .

The essential element of any trading relationship is trust.  The best place to meet potential trading partners is at atrade fair. % value 2006 SELECTING A SUITABLE TRADING PARTNER This is a very important part of the export process. such as theInternational Leather Goods Fair in Offenbach. so it would be better to first visitant exhibition a few times before making a commitment.  The German Leather Goods and Luggage Association and the German Leather Industry Association are important contacts. The best way to find a trading partner is usually to contact the main trade sources. During a visit you can extensively look around at the stands of the main players and get a better idea of the latest fashions. At trade shows we have an opportunity to talk to potential partners on a face-to-face basis and better judge whether we would like to work with . The relationship we can establish between yourself and your partner is as important as finding a contact that is suitable for you in terms of the range of products that we can supply.German luggage and (leather) accessories consumption by product. Participating in trade fairs can be expensive.

gaining acceptance even in the highly competitive western markets. who traveled frequently. to which other EU countries they sell. and in the way contact is made. A very aggressive price driven approach will not be effective. The target market consisted of people aged between 20 and 50 years. If they are exporting.g. we will try to find out: a)What type of luggage or accessories they sell (focussed on comfort. b)To which target groups they sell. importer or wholesaler). belonging to high income households. both in the way a presentation is put together. department stores.In which areas they are well represented in their country.   European and American distributers Young and middle aged working class people (between 20 and 50 years) Entering The Market:Initial Planning:- . often internationally. Our preferred target buyers in domestic and international market will be. material or fashion). We could also identify potential partners from the exhibition website beforehand or from a catalogue.them. PROMOTIONAL LITERATURE : To develop a business relationship with buyers are to make a direct approach to wholesalers or major retailers.g. buying groups etc. When selecting them (e. and insisted on high quality products.    TRADE FAIRS PROMOTION – (Advertising in trade magazines can sometimes be an effective means of reaching a small target group) Having a website Buyer Selection:Who are the target customers for leather products? Our organization is a premier design house for leather goods. small or large retailers. In Germany. many business people still prefer a formal style of communication. although price is very important in the German market. d)To whom they sell e.

It will concentrate on taking small orders and fulfilling them to high quality standards and delivering on time.wholesalers. .first of all there is need of strong distribution channel. 2. Landmark. an exclusively export-oriented leather product company. (Like Westside.) Trade fairs or trade associations:Trade fairs or trade associations are the best starting point to get into contact with different companies in the distribution channel that could be interested in new suppliers. Domestic Distribution:. A good thing about Indian leather product market is that there were no major competitors in the same category.   We will enter into the market fulfilling export contracts to selling through distributors and then through high-fashion retail chains.Initially we will focus on international distribution. domestic manufacturers are part of this distribution channel. Shoppers' Stop. fulfilling orders from European and American distributors. so we will get a chance to exploit the huge opportunity. International Distribution:. Creating a strong Distribution Network :-To enter into leather product market .After few years company will start its retail operation in Indian market. the most important distribution channel for leather goods is the wholesale channel. Distribution channel is formed by domestic manufacturers. etc. 1. Importers-Exporters . This will be prove crucial in building its reputation among high-end overseas customers and in gaining their initial goodwill. After few year we will start wholly-owned concept stores. Our organization will focus on both Domestic Distribution and International Distribution. Both points are discribed as following. This was followed by tie-ups with retail chains.

(iii) Advertise products worldwide at less expense. We can use the following e-commerce ways to market your products worldwide in very cost effective way: 1. Anyone interested in products may get knowledge of products and company by simply visiting your web site rather sending catalogue to them. Another way of export marketing is appointing your agent or a distributor of your products in the importing country. purchase a place to display products. But finding an agent or distributor might not be possible for you. 3. to attend any trade fair. The fourth way of export marketing is to give phone calls to the importers of products in different countries by colleting the list of importers from the export development authorities.GETTING ORDER: 1. But when we call them they will be asking about your products catalogue. This will help to display all products with their complete specification. Another way to market products by using Internet is use of Business to Business (B2B) web sites. Making phone calls to the hundred of importers and sending them products catalogue is too much expensive. There are many B2B web sites that give opportunity to market products . 2. As for that purpose you have to do a lot of work & research to find an honest agent or distributor. 4. arrange stock of products to display etc. 2. It is also a costly way. It is a great way to market your products in that country. (ii) Provide online quotations to buyers. Open your office in that country to whom you intend to export your products. The following are the benefits that you can get from opening a web site. Open a web site of our company to display company profile and products on it. as we have to arrange a lot of things like tickets. (iv) Obtain feedback from customers/importers. (v) Improve customer services by providing same day answers to online inquiries. (i) Promote/display products and services with complete details. Third way of export marketing is to attend trade fairs in different countries.

STEPS FOR EFFECTIVE SHIPMENT:      Choose the right size shipping container Choose sustainable packaging materials Use more durable packaging materials Send items in bulk Choose an eco-friendly carrier The best effective way for our shipping method is: Shipping by ocean carrier The option of shipping carrier is way less expensive than air shipment.worldwide at no expense. B2B web sites are providing great services for importers and exporters to have their company's products and profile online. overland freight handlers as well as ocean carriers. It is beneficial to both the customers. Wecan also share the container of other customer to save money. can send their goods by ocean carrier. We can also hire a logistics company. . People who are wishing a cost-effective way for international shipping. if ourshipment does not fill an entire container. By this way we may be able to minimize your upfront costs. These companies have ongoing service contracts with air cargo routes.

travel bags and handbags is 3 % of FOB value of exports of previous financial year. 4. Leather sector included under Status Holder Incentive Scrip Scheme for grant of 1% additional scrip. 2. 8. gloves. imported under bonded warehouse. Finished Leather exports to be incentivized under Focus Product Scheme.03. Re-export of unsold hides. . Such entitlement shall also cover packing material. Under Focus Product Scheme:  Duty Credit Scrip incentive to the leather products and leather footwear sector @ 2% of FOB value of exports.Incentive to Leather Sector in the Foreign Trade Policy 2009-14 1. 1. CVD is exempted on lining and interlining material notified at S. Leather and Footwear 1. 4. CVD is exempted on raw. 9. 3. 2. Benefit of 2% Interest Subvention allowed to SMEs. Re-export of unsold hides/skins. 3. small cartons made of wood. skins and semi finished leather shall be allowed from Public Bonded warehouse without payment of export duty. 5.2002.No 168 of Customs Notification No 21/2002 dated 01. Machinery and equipment for Effluent Treatment Plants shall be exempt from basic customs duty. Re-export of unsuitable imported materials such as raw hides & skins and wet blue leathers is permitted. 7. embellishments and footwear components for footwear (leather as well as synthetic). tanned and dressed fur skins falling under Chapter 43 of ITC (HS). tin or plastic materials for packing footwear. Duty free entitlement for import of trimmings. Additional 2% bonus benefits under Focus Product Scheme. such as printed and non-printed shoeboxes. Under Focus Market Scheme: · Exports of all Leather products and Leather Footwear to notified 110 countries under Focus Market Scheme in the Foreign Trade Policy 2009-14 are entitled to Duty Credit Scrip incentive @ 3% of FOB value of exports. allowed on payment of 50% of stipulated export duty. Duty free import entitlement of specified items is 3% of FOB value of exports of leather garments during preceding financial year. 5. 6.

07 Grants-in-Aid from Central Government under Indian Leather Development Programme (ILDP) Establishment of 3 Training Centre in Madhya Pradesh 24. Kolkata and Kanpur. The Central Government is implementing a sub-scheme. Footwear Design and Development Institute at Noida and Fursatganj. Kolkata in West Bengal and Rohtak in Haryana.43 crore under ILDP during the 11th Five Year Plan period. 200 crore under ILDP during the 11th Five Year Plan period. The details are as under: - Allocation for Sl No. 253. Fursatganj Up gradation and 2 Establishment of Institutional facilities 300. 2 crore. assistance are provided to leather units in the form of investment grant at a rate of 30% for Small Scale Industries (SSI) and 20% for non-SSI upto Rs. in crore) Grants-in-Aid from Central 7.the Central Government is implementing three sub-schemes under Indian Leather Development Programme (ILDP) during the 11th Five Year Plan to meet the requirement of manpower in the leather industry. For addressing the environmental issues of the Leather Industry.17 Government under Indian Leather Development Programme (ILDP) Three branches of FDDI are being established at Chennai in Tamil Nadu. and Testing Centre in the Footwear Component Park at Chennai.88 Grants-in-Aid from Central Government under Indian Leather Development Programme (ILDP) Chhindwara in Madhya Pradesh. 50 lakh. Chennai and its Regional Centres at Jallandhar. “Integrated Development of Leather Sector” (IDLS) with an outlay of Rs. . Assistance above Rs 50 lakhs is provided at a rate of 20% within ceiling of Rs. the Central Government is implementing a sub-scheme “Environment Initiatives” with an outlay of Rs. Testing facilities for the Leather Industry exist at Central Leather Research Institute. 11th Five Year Name of sub-scheme Plan Source of funding Places where centre is established (Rs. Footwear Design and 1 Development Institute (FDDI). the existing branch of FDDI at Noida would be up-graded. In addition. Under the sub-scheme. Fursatganj in Uttar Pradesh.

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