Cashmere Threads

Prepared by:
Anushool Hegde-24
Omar Jaleel-32
Tarun Kalyani-34
Shyan Kashyap-36
Nikita Kherajani-38
Introducing Cashmere Threads
 Pashmina fabric is 70% pashmina, 30% silk. Its tightly
woven with an elegant sheen, drapes nicely, soft &
light-wt.

 They are known for their softness and warmth.

 Product- Embroidered & Plain shawls;

 Product Detail- full sized shawl (36" x 80")

Why Cashmere?
 Increasing demand for
handcrafted Asian items.

 Can earn good profits

through higher profit
margin.

 India is one of the

largest producer for
Cashmere shawls.
PRODUCT SOURCE
 Collected during spring moulting season (March –
May) when goats naturally shed their winter coat.

 Product source: local manufacturer in Kashmir

 Major products would be sourced during these months

and stocked for the year

 Affordability-
Pashmina blended with wool. So price is reasonable &
can be afforded by the middle class
Market Selection
 Export market selection-
European countries: France &
Germany

 High eco growth of the

country

 Stable political embargo

 Climatic conditions

 Agents
About Cashmere Threads
 Established in 2001

 Annual export- 1200 pcs

 Types-Embroidered & Plain

 Price- 6000-12000 per pc

 Annual Turnover-1,08,00,000

 Profit Margin-100% over cost

Financing Cashmere Threads
 Total capital employed is Rs 50 lakhs

 Internal Finance: 60% capital invested by the owners

• Captial: Rs 30 lakhs

 External Finance: 40% loan taken from the EXIM bank

• Loan: Rs 20 lakhs
Registration Formalities
 Reg. under company’s act

 Current a/c

 IEC number

 Reg. with EPC

 Reg-cum-membership certificate (RCMC)

 Reg. with sales tax office

 Reg. with excise dept.

 Marketing Strategies
 TRADE FAIRS

 FOREIGN LANGUAGE SKILLS

 INTERNET

 PERSONAL VISITS

 CONTACTS

 AGENTS
METHODS OF PAYMENT
Export currency- Euros

 Cash in advance/prepayment
 
 Letter of Credit
 
 Combining Method

 Example:
For custom made products, an exporter could offer 50%
prepayment to cover the cost of manufacturing and 25%
payment at invoice date and 25% payment 90 days after invoice.
PROCEDURE
 WAREHOUSING

 PACKAGING

 CERTIFICATE OF QUALITY CONTROL

 PREPARE MARINE DOCS

 PREPARE BILLS

 TRANSPORTATION MARITIME

 SUBMISSION OF DOCS TO BANK

 PAYMENT IS DONE- BANK SENDS DOCS TO IMPORTERS BANK

 EXPORT PROCEDURE

Pre-shipment Shipment Post-Shipment

prodeure Procedure procedure
EXPORT DOCUMENTATION
List documents required while exporting:
 Commercial Invoice

 Certificate of Origin

 Consular Invoice

 Mate’s Receipt

 Bill of Lading

 Guaranteed Remittance (GR) Form

 Obtaining ISO 9001: 2008 Certification

Commercial Invoice
 Prepared by exporter & addressed to importer

 One of the 1st docs. prepared when a transaction has been

agreed upon.

 It identifies buyer & seller, describes goods sold & all terms of
sale, incl. payment terms, relevant bank info, shipping details
etc.

 An invoice may be itemized to show cost of goods, freight &

insurance, or other special handling.

 It may be no. & have multiple “purchase order” nos.

Certificate of Origin
 Prepared by original manufacturer & certified by quasi-
official authority- such as a Chamber of Commerce -
stating the items’ country of origin.

 Most countries require C/O will accept a generic C/O

as long as all of required data elements are given.
MATE’S RECEIPT
  This is a document originally issued by the first mate
of the ship.

 He is the officer responsible for cargo.

 The document would be issued by him after the cargo

was tallied into the ship by tally clerks.
 BILL OF LADING
 It’s issued by carrier to the shipper for receipt of goods & is a
contract between owner of goods & carrier to deliver goods.

 Sometimes the B/L acts as title to the goods so an “Original”

B/L is issued- usually a set of three.

 Whoever presents one of those Original, Negotiable B/L can

take possession of the goods.

 A B/L can be either negotiable or non-negotiable.

Guaranteed Remittance

GR submitted to customs

Customs put a running serial no.

Customs certifies value declared by exporter

Duplicate copy returned to exporter; original retained

for RBI

Exporter submits duplicate to authorized dealer

Authorized dealer negotiates the bill & duplicates to

RBI
Compulsory Quality Control & Pre-shipment Inspection

 At times, foreign buyers lay down their own standards /

specifications which may/may not be in consonance with
Indian standards.

 They may insist upon inspection by their own nominated

agencies. These issues should be sorted out before
confirmation of order. Specific provisions have been made
for compulsory inspection of textile goods.

 Products having ISI Certification are not required to be

inspected by any agency.
Conclusion
 Documentation may delay the work

 Exchange rate fluctuations affecting the business

 Since Handcrafted item, sometimes timely supply is a

hindrance.