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Project Report
On
“An overview on XXXXXXXXX”
Submitted to
“XXXXXXXXXXXXXXXXXXXXX”
IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE
DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
(Semester VI of Integrated Master of Business Administration – I-MBA)
Under
XXXXXXXXXXXXXXXXXX
UNDER THE GUIDANCE OF
Faculty Guide Company Guide
XXXXXXXXX Mr. XXXXXX
Submitted by
Jay N. Sagapariya
Enrolment No.: XXXXXXXX
I-MBA – SEMESTER VI
XXXXXXXXXXXXXXXXXX
XXXXXXX
2017
COMPANY CERTIFICATE
INSTITUTE CERTIFICATE
4
PREFACE
Industrial activity plays an important role in overall economic development of the developing
country like India. Industrial Visit is a part of practical training contained in I-MBA course.
I-MBA is a special course of management, where the management knowledge is given during the
span of course and which is more related with the practicality of it in the managerial field.
So, I am very pleased to get training at XXXXXXXXXXXXXXX.
5
ACKNOWLEDGEMENT
Every successful achievement involves efforts of many people. This Project is not an exception to
that fact. It is my pleasure to take this opportunity to thank all those who helped me directly or
indirectly in development of the project.
I wish to express my gratitude to my project guide XXXXXXXXX for co-operating in preparing this
report. He explained me about the system and guides during the entire Project. His constant
encouragement and co-operation have been a source of inspiration for me all the time.
I am also thankful to XXXXXXXXXXX, Proprietor of XXXXXXXXXX for giving me the permission to
do internship and to prepare report in his company and providing me all the necessary information
for enhancing my knowledge during this project.
The project has given me immense knowledge and experience to use in future ventures and many
moments to cherish.
6
DECLARATION
I, Jay Sagapariya, hereby declare that the report for project entitled:
“XXXXXXXXXXXXXX” is a result of my own work and my indebtedness to other work
publications, references, if any, has been duly acknowledged.
Place: XXXX
Date: XXXXXX Jay N. Sagapariya
7
EXECUTIVE SUMMARY
This project report has been written keeping in mind the operations of a company providing export
and import services in the name of “XXXXXXXXXXXXX.”
Foreign trade plays key role in our national economy in terms of its contribution in trade, industrial
activity, and employment and foreign exchange earnings. In the emerging era of globalized and
liberalized economic activities, India has to compete to provide certain goods of best quality at a
reasonable price. This company provides export and import services which include quality assure
of the product, loading and unloading of container, export documentation and import
documentation.
The project report contains information on topics as Growth and Evolution of Industry, Product
Profile, Distribution Channel in Industry, Key Issues and Current Trends in Industry, PESTEL
Analysis, Financial Analysis of Industry, Michel Porter’s Five Force Model and Future Outlook of
Industry. The report also highlights the national competitors in the industry.
It also includes detailed information about services provided by the company, different processes
and the products exported by their company.
8
TABLE OF CONTENTS
SR. NO. PARTICULARS PAGE NOS.
PART – I Industry Study
1 Growth and Evolution of Industry in India 1
2 Product Profile 8
3 Players in the Industry 19
4 Distribution channel in the Industry 24
5 KEY ISSUES AND CURRENT TRENDS 28
6 PESTEL Analysis 42
7 FINANCIAL ANALYSIS OF INDUSTRY 46
8
Industry Analysis : Michael Porter’s Five Force
Model
56
9 Future outlook 59
PART – II Company Study
10 Company Information and Product Profile 67
11 Functional Departments 81
12 SWOT / TOWS Analysis 83
13 Conclusion 86
9
LIST OF TABLES / DIAGRAMS / FIGURES
Sr. No Particular Number Page Number
1. Indian export for year 2016-2017 1.1 02
2. India’s trade for year 2016-2017 1.2 02-03
3. India’s export by country. 1.3 04
4. India’s export by category. 1.4 05-06
5. India’s export as on March 2017 1.5 07
6. Extracting of petrol 2.1 09
7. Gold products 2.2 10
8. Vehicles (Automobiles) 2.3 11
9. Machinery 2.4 12
10. Chemical 2.5 13
11. Medicines 2.6 14
12. Cereals 2.7 15
13. Iron and steel industry 2.8 16
14. Textile industry 2.9 17
15. Electrical circuit 2.10 18
16. India’s top 10 exporting companies 3.1 23
17. Distribution channel for export 4.1 25
18. PESTEL analysis 6.1 43
19.
Products which were exported by India
during 2014, 2015 and 2016 7.1 47-55
20. Michael Porter’s 5 force model 8.1 57
21. company profile 10.1 68
22. Product profile of company (PET STRAP) 10.2 70
10
23.
Product profile of company
(PET strap holding cotton bales) 10.3 71
24. Product profile of company 10.4 73-74
25.
Product profile of company Single
(Loop or Two Loop Bag ) 10.5 75
26.
Product profile of company
(Tunnel Loop Bag) 10.6 75
27.
Product profile of company
(Tarpaulin) 10.7 78
28.
Product profile of company
(Mango pulp) 10.8 80
29. SWOT Analysis 12.1 84
11
PART – I
INDUSTRY STUDY
GROWTH AND EVOLUTION OF INDUSTRY IN India
12
Exports from India jumped 17.5 percent year-on-year to USD 24.5 billion in February of 2017, the
biggest gain since October of 2011. Sales of non-petroleum and non gems & jewelry rose 20.2
percent. Exports in India averaged 4789.85 USD Million from 1957 until 2017, reaching an all time
high of 30541.44 USD Million in March of 2013 and a record low of 59.01 USD Million in June of
1958.
No. 1.1 Indian exports for year 2016-2017
India Trade Last Previous Highest Lowest Unit
Balance of Trade -8896.30 -9840.90 258.90 -20210.90 USD
Million
[+]
Exports 24490.27 22115.03 30541.44 59.01 USD
Million
[+]
Imports 33386.60 31955.90 45281.90 117.40 USD
Million
[+]
Current Account -3400.00 -300.00 7360.00 -31857.20 USD
Million
[+]
Current Account to -1.25 -1.31 2.28 -4.82 percent [+]
13
India Trade Last Previous Highest Lowest Unit
GDP
External Debt 484300.00 479658.00 485078.00 96392.00 USD
Million
[+]
Terms of Trade 57.90 60.20 100.00 57.90 Index
Points
[+]
Capital Flows -17.51 155.56 766.96 -271.46 USD
Million
[+]
Foreign Direct
Investment
3353.00 3081.00 5670.00 -60.00 USD
Million
[+]
Remittances 9942.81 9686.59 12293.40 5999.10 USD
Million
[+]
Tourist Arrivals 983000.00 1037000.00 1037000.00 129286.00 [+]
Gold Reserves 557.77 557.77 557.77 357.75 Tonnes [+]
Crude Oil
Production
736.00 746.00 813.00 526.00 BBL/D/1K [+]
Terrorism Index 7.48 7.75 8.09 7.22 [+]
Weapons Sales 33.00 53.00 53.00 1.00 USD
Million
[+]
NO. 1.2 India’s trade for year 2016-2017
14
India Exports by Country Last
Mexico 841.09 INR TML Mar/13
Malta 597.55 INR TML Mar/13
Poland 515.48 INR TML Mar/13
Argentina 306.82 INR TML Mar/13
Nigeria 264.76 USD Million Dec/16
Kuwait 250.95 USD Million Dec/16
United States 240.49 INR Billion Sep/16
Austria 198.56 INR TML Mar/13
United Arab Emirates 178.55 INR Billion Sep/16
Romania 155.27 INR TML Mar/13
Hungary 150.58 INR TML Mar/13
Turkey 148.64 INR TML May/14
Czech Republic 129.22 INR TML Mar/13
Norway 128.38 INR TML Mar/13
Slovenia 118.71 INR TML Mar/13
Hong Kong 107.09 INR Billion Sep/16
No. 1.3 India’s export by country.
15
India Exports by Category Last
Non Basmati Rice 86160.58 INR Million Sep/16
gems & Jewellery-total 30307.49 INR TML Sep/16
gems & Jewellery-cut & Polished Diamo 16709.09 INR TML Sep/16
Non Basmati Rice 12332.58 INR Million Sep/16
Precious Metals 7327.89 USD Million Dec/16
gems & Jewellery-gold Jewellery 6070.92 INR TML Sep/16
gems & Jewellery-gold Medallions & Co 4421.62 INR TML Sep/16
Mineral Fuels 4087.61 USD Million Dec/16
Nuclear Reactors, Boilers & Parts Ther 2270.30 USD Million Dec/16
Vehicles 2258.55 USD Million Dec/16
Pharmaceutical Products 2086.32 USD Million Dec/16
Organic Chemicals 1741.79 USD Million Dec/16
Ships, Boats & Floating Structures 1736.47 USD Million Dec/16
Apparel & Clothing Assecories Not Knit 1592.31 USD Million Dec/16
gems & Jewellery-silver Jewellery 1557.00 INR TML Sep/16
Electrical Machinery Etc 1301.15 USD Million Dec/16
Apparel & Clothing Assecories, Knitted 1224.60 USD Million Dec/16
Manufactured Goods 1148.03 INR Billion Sep/16
16
India Exports by Category Last
Gems & Jewellery- Rough Diamonds 1035.26 INR TML Sep/16
Cereals 1017.30 USD Million Dec/16
No. 1.4 India’s export by category.
17
India Exports
sIn recent years, India has become one of the biggest refined product exporters in Asia with
petroleum accounting for around 20 percent of total exports. The country also exports: engineering
goods (19 percent of the total shipments), chemical and pharmaceutical products (14 percent),
gems and jewellery (14 percent), agricultural and allied products (10 percent) and textiles and
clothing (10 percent). India’s main export partners are: United Arab Emirates (12.1 percent of the
total exports), the United States (12 percent), Singapore (4.5 percent), China (4.5 percent), Hong
Kong (4 percent) and Netherlands (3.5 percent). This page provides the latest reported value for -
India Exports - plus previous releases, historical high and low, short-term forecast and long-term
prediction, economic calendar, survey consensus and news. India Exports - actual data, historical
chart and calendar of releases - was last updated on March of 2017.
Actual Previous Highest Lowest Dates Unit Frequency
24490.27 22115.03 30541.44 59.01 1957 -
2017
USD
Million
Monthly Current
Prices,
NSA
No. 1.5 India’s export as on March 2017
18
PRODUCT PROFILE
19
Here are the 10 commodities most exported from India and their dollar value:
1. Petroleum products:
No. 2.1 extracting of petrol
Value - 61.2 billion dollars
Oil-based products and crude oil giants such as ;
- Hindustan Petroleum Corporation Limited,
- Bharat Petroleum,
- Reliance Petroleum,
- ONGC
have contributed largely to the export sector of India. Although the country is hugely dependent on
oil imports, export of oil-based products has supported the economy to a large extent.
20
2. Precious stones:
No. 2.2 Gold products
Value - 41.2 billion dollars
India consumes around 20 percent of the global gold production and 75 percent of that amount
goes into making jewellery.
The jewellery sector is also supported by banks and government policies so that the industry does
not fall drastically.
Around 30 percent of Indian jewellery gets exported to the
- United States alone.
Other such countries include
- Hong Kong,
- UAE,
- Singapore and
- Belgium
21
3. Automobile:
No. 2.3 Vehicles (Automobiles)
Value - 14.5 billion dollars
From 2008 to 2013, the Indian automobile export sector has seen a rise 17 percent, one of the
fastest economic growth that has ever taken place in the sector. Being one of the leading steel
producers in the world, India invests largely on the automobile sector and its export
22
4. Machinery:
No. 2.4 Machinery
Value - 13.6 billion dollars
There has been a 10.5 percent increase in the export of heavy machinery from India. These
include;
- cars,
- pumps,
- heavy machines,
- building construction tools,
- agricultural equipment and so on
23
5. Bio-chemicals:
No. 2.5 Chemical
Value - 12 billion dollars
Manufacturing bio-chemicals is a nationwide business in India. The sector contributes hugely to
the national economy and is an essential part of it. Manufacturers and exporters are spread all
over thecountry.
Research facilities have also supported this sector to a large extent
24
6. Pharmaceuticals:
No. 2.6 Medicines
Value - 11.7 billion dollars
Being a research-based industry, the Pharmaceuticals sector in India has seen a huge growth over
the past few decades.
Major Pharma industries such as;
- J. B. Chemicals & Pharmaceuticals Limited,
- Suven Life Sciences Limited,
- Dr. Reddy's Laboratories,
- Aurobindo Pharma,
- Luipin,
- Ranbaxy,
- Sun Pharma,
- Zydus Cadila,
- Glowchem and Calyx
The above industries play a huge role in promoting the sector to the world market
25
7. Cereals:
No. 2.7 Cereals
Value - 10.1 billion dollars
India is one the leading exporters of cereals and the second largest producer of rice.
Being an agriculture-driven country, India depends largely on its produce of cereals and so does
the importer countries such as;
- Iran,
- Saudi Arabia,
- Indonesia,
- UAE and
- Bangladesh
26
8. Iron and steel:
No. 2.8 Iron and steel industry
Value - 9 billion dollars
Before the Independence, India used to depend on its import of Iron and Steel. But now, the
country has gone through such an industrial growth that it has become forth largest steel producer
in the world.
Steel tycoons such as;
- TISCO,
- IISCO,
- Bhilai Iron and Steel Centre,
- Visweswaraya Iron And Steel Limited
This all plays a major role in the Iron and Steel export from India.
27
9. Textile:
No. 2.9 Textile industry
Value - 9 billion dollars
Textile is India's trump card when it comes to exports. India tops the chart in jute production and
also holds 63 percent of the global market share in textiles and garments. Need we say more?
28
10. Electronics:
No. 2.10 Electrical circuit
Value - 9 billion dollars
When it comes to manufacturing electronic equipment, India is still seen as an importing country.
But, the export part of this sector thrives silently yet largely. India has the third largest pool of
electronic scientists and engineers and the domestic demand of electronic goods propels the
industry to gorw faster and stronger, making export all the more important.
29
PLAYERS IN THE INDUSTRY
30
1. Oracle Financial Services Software
Oracle Financial Services Software Limited (OFSSL) is a world leader in providing IT solutions to
the financial services industry. The company has a large exposure to foreign financial companies
which contribute 96 per cent of the revenue to the company. The company addresses the entire
financial services space through a comprehensive portfolio of products, IT services, consulting and
knowledge process outsourcing services with an experience of delivering value-based IT solutions
to over 810 financial institutions across 130 countries.
The company also has strong alliance and/or implementation relationships with industry leaders
such as Hewlett-Packard, IBM, Sun Microsystems and Intel.
2. Opto Circuits (India)
Opto Circuits (India) is a technology-based electronics company engaged in design, development,
manufacturing, marketing and distribution of medical electronic devices and medical monitoring
products. Opto Circuits offers technological advanced medical devices that are proprietary in
nature, improve patient safety and care and reduce healthcare costs.
It offers a broad range of more than 100 medical devices across 17 clinical categories spread over
12 medical fields. It has sales in 56 countries and operations in India, Germany and the US. Of its
total sales, around 95 per cent of the revenue comes from exports while the remaining comes from
the domestic markets.
3. Infosys
Infosys, the second-largest software making company, generates 94 per cent of the revenue
through exports. The major exporting countries are the US (63.9 per cent) and Europe (21.9 per
cent) that together generates almost 85 per cent of the export revenues while the rest comes from
India (2.2 per cent) and some other countries. The company’s revenue comes from providing
various IT products and services catering to sectors such as BFSI, manufacturing, retail, life
science, energy and communication services.
4. TCS
Tata Consultancy Services, part of the Tata Group that is one of India’s largest industrial
conglomerates and most respected brands, is an IT services, business solutions and outsourcing
organisation that delivers real results to global businesses, ensuring a level of certainty that no
other firm can match.
31
TCS offers a consulting-led integrated portfolio of IT and IT-enabled services delivered through its
unique Global Network Delivery Model™ (GNDM™), recognised as the benchmark of excellence
in software development. Of its total sales, 91 per cent of the revenue comes from exports while
the remaining is derived from the domestic markets.
5. Divi’s Lab
Divi’s Laboratories is engaged in the manufacture of generic active pharmaceutical ingredients
(APIs), custom synthesis of active ingredients and other specialty chemicals such as peptides and
nutraceuticals. The company has three multi-purpose manufacturing facilities with a total reactor
capacity of 4,500 cubic meters and all support infrastructure such as utilities, environment
management and safety systems. The company in a matter of short time has expanded its breadth
of operations to provide complete turnkey solutions to the domestic Indian pharmaceutical
industry. Of its total sales, more than 90 per cent of the revenue comes from exports while the
remaining comes from the domestic markets.
6. Rajesh Exports
Rajesh Exports Limited (REL) is the largest gold jewellery manufacturer in the world and also the
country’s largest exporter of gold jewellery with a market share of around 40 per cent. Shubh
Jewellers is the retail brand of the company. Of the total sales, around 85 per cent of the revenue
comes from exports while the remaining is from the domestic markets. REL exports plain gold
jewellery and studded gold jewellery mainly to the US, UK, Singapore and the UAE. It is also the
only Indian company to be recognised by the Government of India as a ‘Five Star Export House’ in
the field of gold jewellery.
7. Tech Mahindra
Tech Mahindra provides information technology (IT) services to the telecommunications industry
worldwide. Tech Mahindra, with 84.75 per cent exports of its sales in FY11, arrives at number
seven in our list. A majority of its stake is owned by Mahindra & Mahindra Limited in partnership
with British Telecommunications Plc.
Tech Mahindra serves telecom service providers, equipment manufacturers, software vendors and
systems integrators. The company recently completed the merger of Mahindra Satyam with itself.
This merger has made Tech Mahindra the sixth-largest IT service provider with topline of Rs 5,490
crore and a workforce of 75,000.
32
8. Aban Offshore
Aban Offshore provides drilling and oil field services for the offshore exploration and production of
hydrocarbons to the oil industry in India and internationally. The company is also involved in wind
power generation activities. It owns and operates 15 jack-up offshore drilling rigs, two drill ships,
one floating production platform and one jack-up rig and a drill ship on bareboat charter. It also
operates 165 wind energy generators. The company earned around 84.39 per cent of its revenues
from exports in FY11, making it the eighth in the list. This takes the total export sales to above Rs
1,004 crore.
9. Sesa Goa
Goa-based Sesa Goa is India’s largest private producer and exporter of iron ore with operations in
Karnataka too. The company produces 18.8 MT of iron ore and receives 80 per cent of its revenue
from exports and the rest through domestic sale. At present the company seems to be facing
severe problems due to the ban on iron ore mining in Karnataka and the increase in export duty.
The iron ore mining ban in Karnataka has stopped the company from producing iron ore and the
concerns have now shifted to the Goa mines as an appointed commission has submitted a report
with regards to illegal mining taking place in Goa. Sesa Goa has a major mining operation in Goa
that almost contributed 80 per cent of the total production of the company in FY11.
10. Dr. Reddy’s Lab
Dr. Reddy’s Lab was established in 1984 and is an integrated global pharmaceutical company,
committed to providing affordable and innovative medicines for healthier lives. It operates in three
segments viz. pharmaceuticals and active ingredients (PSAI), global generics and proprietary
products.
Their major markets include India, USA, Russia and CIS, Germany, the UK, Venezuela, South
Africa, Romania and New Zealand. Of the total sales, around 72 per cent of the revenue comes
from exports while the remaining from the domestic markets.
33
No. 3.1 India’s top 10 exporting companies
Name Total Sales (FY11) % Of Exports
Export
Sales
Oracle Financial Services
Software 2,360.51 96.02 2,266.56
Opto Circuits India 603.2 94.92 572.56
Infosys 25,385 94.38 23,958.36
TCS 29,275 91.08 26,663.67
Divi’s Lab 1,309.71 90.36 1,183.45
Rajesh Exports 20,533.76 85.61 17,578.95
Tech Mahindra 4,965.5 84.75 4,208.26
Aban Offshore 1,190.74 84.39 1,004.87
Sesa Goa 8,221.94 76.39 6,280.74
Dr. Reddy’s Lab 5,188.5 72.23 3,747.65
34
DISTRIBUTION CHANNEL IN THE INDUSTRY
35
Export distribution channels outline the responsibilities to successfully market and deliver an
artisan’s product from their workshop into the hands of the final customer in an export market.
Export distribution channels may vary by country. The following is a general summary of the roles
and their responsibilities.
Traditional export channels As export products move from a producer's workshop to the final
customer, they typically move through the following distribution channel
Artisan / Producer
Exporter
(Optional - Export Buying Office)
Importer/Wholesaler
(Optional - Sales Representative)
Retailer
Customer
No. 4.1 Distribution channel for export
Roles and Responsibilities in the Export Distribution Channel
Artisan / Producer
- manages production appropriate for export demands
- develops new products
- delivers product on time
Exporter
- develops promotional and sales materials
- markets to international buyers (showroom, trade shows, visits buyers)
- communicates with international buyers
- current with relevant import/export regulations
- access to financing for export orders
- arranges internal transportation & international shipping
- ensures final quality control
- packages and labels orders for export
36
- prepares export documentation
- invoices buyer and collects payment
Export Buying Office (Optional)
- larger scale import buyers often use an Export Buying Office to identify appropriate products
and exporters to work with in the country, negotiate orders, provide final quality control and
consolidate orders when working with multiple exporters
- paid a percentage of the total orders by the importer customer
Importer/Wholesaler
- pays international shipping costs
- imports the goods and pays all import duties and customs clearance fees
- arranges internal transportation from port of entry to warehouse
- warehouses products until customer orders are taken and shipped
- promotes and markets products at trade shows, in catalogues, showrooms or on websites)
- packages the product for distribution to retailer
- arranges shipping to retail buyer
- provides customer service
Sales Representative (Optional)
- responsible for generating sales in their designated geographic region through personal
contact with retail buyers, by maintaining a showroom and by exhibiting at trade shows
- paid a commission of sales generated
Retailer
- purchases the product from the importer/wholesaler
- pays for shipping from wholesaler’s warehouse to the retail store
- (retail store) maintains retail store, rent, display, staffing, and all associated costs, plus
special in-store promotions and advertising for store
- (mail order catalogue) prints catalogue and distributes to customer
Final consumer
- pays sales tax
- (mail order catalogue) pays shipping from catalogue warehouse to customer
37
PROCESSING AN EXPORT ORDER
You should not be happy merely on receiving an export order. You should first acknowledge the
export order, and then proceed to examine carefully in respect of
Items
Specification
Pre-shipment inspection
Payment conditions
Special packaging
Labeling and marketing requirements
Shipment and delivery date
Marine insurance
Documentation requirement etc.
If you are satisfied on these aspects, a formal confirmation should be sent to the buyer, otherwise
clarification should be sought from the buyer before confirming the order. After confirmation of the
export order immediate steps should be taken for procurement/manufacture of the export goods. In
the meanwhile, you should proceed to enter into a formal export contract with the overseas buyer.
Before accepting any order necessary homework should have been done as to availability of the
production capacity, raw material e.t.c. It would be in the interest of the exporter to look into
entering into forward contract to safeguard against exchange rate fluctuations. Ensure that the
mode of payment is also agreed upon. In case of shipment against letter of credit, the buyer
should be advised to open the credit well in advance before effecting the shipment.
38
KEY ISSUES AND CURRENT TRENDS
39
The Economic Crisis and the Emergence of a New Governance Architecture In big or small
economies, ranging from OECD economies to single commodity exporting small economies, the
effect of the crisis has been devastating. Of course, while no economy has been spared, it is
developing countries, particularly the least developed amongst them that have more acutely felt its
full impact. These are countries whose ability to the fight the crisis is more limited, given their
limited financial resources — they cannot afford multibillion dollar stimulus packages to bail out
struggling enterprises or expand their social safety nets to help those that lost their jobs — and
therefore are very much at the mercy of the global economic system for their recovery. We now
also have data that confirms the negative impact that the crisis has had in the achievement by the
Least Developed Countries of their development targets in the UN’s Millennium Development
Goals.
The effects of the economic crisis have been compounded by the previous crisis that came before
it, like the food and energy prices crisis. All this in an ambience where the effects of climate
change are already starting to be felt, threatening the poorer and most vulnerable populations.
The family of the International Organisations, and the WTO, have taken steps to help minimise the
impact of the crisis, bearing in mind the high trade dependence of many developing countries
economies.
1) The WTO has worked to keep trade flowing, by mobilising efforts into trade finance.
Second, it has helped Members fight against protectionist pressures by ensuring transparency
in the measures taken by them to respond to the crisis. Thirdly, it has continued to mobilise
international support towards developing countries to boost their productive and trade capacity
through increased aid for trade.
2) What this radar shows so far is an increase in “low-intensity” protectionism; in other words, a
large number of measures whose intensity has so far remained constrained. In fact the number
of trade-restricting measures applied by governments has actually gone down in late 2009 and
early 2010. But there should be no complacency. Rising unemployment will continue to usherin
the inevitable protectionist pressures, and due to its "lag" with other economic indicators it
may continue to rise in 2010 and in all probability 2011.
Most prognostications now suggest that we will get small positive numbers for trade growth in
40
2010. The global recovery is proceeding at varying speed in different regions, so again we
cannot let down our guard. Recovery has been tepid in advanced economies, but more solid in
most emerging and developing countries. The latest projections from the IMF’s World
Economic Outlook expect world growth to be around 4.2% in 2010 and 4.3% in 2011. Among
advanced economies, the United States is off to a better start (3.1% in 2010) than Japan
(1.9%) and the euro zone (1%). By now you probably all have read in the papers that Australia
was the only advanced economy that posted positive growth numbers in 2009, this growth is
expected to increase in 2010 to 3% and to 3.5% in 2011. Among the developing world, Asia is
leading the recovery (8%), while many European and CIS countries are lagging behind (2%).
This multi-speed recovery is expected to continue in 2011 with growth of 4.3% globally.
Specifically in the area of international trade things are also starting to look better. The 2009
figures were shocking with a 12% contraction in the volume of world merchandise trade, the
largest drop in more than 70 years and more than was predicted by most economists. Services
trade also suffered with a decline of 13% in 2009. Thankfully, we now know that most of the
fall in international trade is attributable to a collapse in demand, accentuated by a shortage of
trade finance, and not protectionist measures. For 2010, provided there are no further major
shocks in the global economy, both trade in goods and in services should start to grow again
but we will not return to pre-crisis levels this year. The WTO Secretariat estimates that world
exports in volume terms will grow by 9.5%, this year, while developed economies’ exports will
expand 7.5% and the rest of the world (developing economies plus the CIS) will advance 11%.
This projection assumed a global GDP growth of 2.9% in 2010, but as we have seen the IMF
has revised their figures to 4.2%, so hopefully trade volumes will also be higher than expected.
Thus, the current crisis will end but it will have changed the world, and against the background
of a world already in an important phase of transformation, these new realities will challenge
the ingenuity and commitment of policy-makers across the globe.
The crisis, however, has shown that multilateral cooperation is needed more than ever before,
41
including in trade, and in that connection the completion of the Doha Round should be a
priority. Countries must act collectively to send the right signals and establish a favourable
trade environment for a sustainable recovery for all. Moreover, the crisis has also shown the
value of the Multilateral Trading System as insurance against protectionism, completing the
Doha Round would serve increase the coverage of this insurance policy.
Another consequence of the crisis is that it has exposed the limitations of global governance to
tackle problems requiring quick and effective global solutions. This illustrates the need for a
new architecture of governance and of global cooperation to emerge, providing a framework for
effective multilateral engagement. One cannot ignore the significance of the establishment of
the G-20 as the gravity centre in the provision of political leadership and policy direction. And I
note that the G-20 is only the centre of gravity because the rest of the constellation of countries
represented in the United Nations, or the G-192, needs to play its role also as a forum
providing accountability of the actions and measures of the G-20 and the international
3) organisations acting in a coherent manner providing their expertise and specialized inputs.
Acting in this manner is crucial if we want to improve legitimacy, efficiency and coherence.
In the WTO we are very much aware that we now face new challenges, including managing the
relationship between trade and climate change. This is an important issue that we must attend
to, nevertheless, as they say in English "first things first", we must complete the current Doha
Round. Not just because a successful conclusion of the Doha Round offers an attractive global
stimulus package and an important signal to the world economy. It is also that systemic
integrity demands that we finish what we started. The WTO cannot credibly embrace new
challenges without settling the current agenda.
Moreover, the Doha Round also has a role to play in tackling issues of climate change. Let us
all recall that the WTO has an environmental negotiation taking place as we speak. Part of the
Doha Round of trade negotiations includes a chapter to accelerate market opening for
42
environmentally friendly goods and services. Many climate-friendly goods and services are
being penalized upon importation, rather than encouraged, and this is a situation that needs to
be changed. A successful conclusion of the WTO negotiations will help improve access to
climate-friendly goods and technologies for developed and developing countries alike.
The Multilateral Trading System and Helping the Bottom Billion
Another issue which is of pressing relevance to the WTO and the multilateral community is
assisting the poorest nations in our midst, or the bottom billion which is the term that has been
coined by Professor Collier of Oxford University. For these countries climate change is and will
be an enormous challenge, but it also opens new opportunities.
As Professor Collier has argued, the bottom billion have to a large extent been left behind by
the train of globalization. This need not be this way forever; climate change brings about a
paradigm shift in the world economy. As I said before, climate change poses daunting
development challenges to developing countries but it also calls for new ways of doing
business, new goods and services for growth to be sustainable. These new opportunities will
be accessible to the most marginalized countries, including those in the bottom billion. But
taking advantage of these opportunities will not be easy, since at the moment there is a
considerable problem of access to technology in the least developed countries. Indeed, more
research is needed on how trade and trade opening contribute to the development and
diffusion of climate-friendly technology and what instruments can be used to ensure that
developing countries can acquire the technologies necessary to develop the marketable
products and services in this area. Since it is predominantly private companies that retain
ownership of various technologies, it is relevant to identify ways within the private sector, such
as foreign direct investment, licence or royalty agreements and different forms of cooperation
arrangements, which can facilitate technology transfer. Moreover, bilateral and multilateral
technical assistance programmes can play a key role in technology transfer, and this also includes
the Aid for Trade initiative.
43
4) Countries in the bottom billion also face the challenge of increased competition because of
globalization, in particular with more advanced developing countries. The development and
utilization of productive capacities should be placed at the heart of national and international
policies to combat poverty. Export supply capability is only one aspect of this. It is important to
diversify and move up the value chain. Therefore, there is a need to have domestic poverty
reduction and economic growth strategies coupled with a specific set of international support
measures, including creation of a conducive environment leading to value-addition,
employment creation, technology and knowledge transfer.
Let me now give another example of how the WTO and in particular the Doha Round can
contribute to improve the situation in the bottom billion. Professor Collier has rightly identified
the landlocked developing countries as suffering from a particular disadvantage or what he
calls a "trap". He makes the argument that one of the particular problems landlocked
developing countries face is that they do not have the leverage to impose measures on
neighbouring countries to help them reduce transport costs. One of the areas where we have
been able to make the most progress in the Doha Round is that of Trade Facilitation. A WTO
Agreement on Trade Facilitation with ambitious and binding rules will give the landlocked
developing countries the leverage they lack. Now, due to the principle under which these
negotiations operate, which is that of a single undertaking, a swift conclusion to the round
remains the best means to capture the progress we have made in the trade facilitation area
and deliver in this very important issue for some of the countries in the bottom billion.
The landlocked developing countries provide another example of how the work of the WTO and
the other multilateral institutions is important for the bottom billion; this is the area of Aid for
Trade in infrastructure development. The other main problem of being landlocked is that the
transport links necessary to get your goods to your export markets are not entirely under your
control. One of the conclusions from the 2nd Global Review on Aid for Trade in July 2009 was
44
the need to pay particular attention to the regional dimension and move from commitment to
implementation of projects such as the North-South corridor linking 8 countries of Eastern and
Southern Africa – of which 4 are landlocked. These types of regional projects will contribute
greatly to ensure that landlocked-country goods are able to move swiftly, not just from the
factory to the border but beyond to ports in the transit countries, significantly reducing transport
costs and increasing competitiveness.
Now, I am not saying that all of the problems constraining trade integration of the bottom billion
are going to be solved through Aid for Trade interventions. Although infrastructure and supply
side capacity are important, one cannot put all eggs in one basket. There is the need to
develop markets for the bottom billion that are closer to home. In this area, although there has
been an enormous proliferation of regional trade arrangements, locking-in the liberalization of
markets at the multilateral level is of great importance. Hence, concluding the DDA will create
new trade opportunities for developing countries not just in the markets of the developed
countries, but also in the markets of other developing countries.
Trade and Climate Change, What Can the MTS Do?
Let me now turn to the specific issue of trade and climate change. The climate crisis that we
are witnessing today is the single biggest challenge to civilization as we know it. Responding to
that crisis is urgent, and is a top priority on the international agenda. Because that crisis is so
serious, responding to it requires that we unleash all our resourcefulness and creativity.
The relationship between trade and climate change must not exclusively be viewed through a
negative prism, there is tremendous scope for complementarity between a climate agenda and
a trade agenda. Climate Change intersects with international trade in a multitude of different
ways. While the WTO does not have rules that are specific to energy or to climate change per
se, there is no doubt that the rules of the multilateral trading system as a whole are indeed
relevant to climate change.
45
5) There are many different perceptions of what the trading system ought to do on climate
change. While some would like to see the trading system curb its own “carbon footprint,”
through the greenhouse gas emissions it generates in the course of the production,
6) international transportation, and consumption of traded goods and services; others are more
interested in how they can preserve their own competitiveness under a stringent climate
change mitigation regime.
More specifically, they would like to impose an economic cost on imported products at their
borders equivalent to the one they suffer in curbing their own emissions. In other words, a
“levelling of the playing field” of sorts, based on an importing country's perception of how that
field may best be levelled.
Naturally, there are many different ideas floating on what these “offsetting” measures may be,
with most of the discussion focussing on countries' most trade-exposed, energy-intensive,
economic sectors like iron and steel, and aluminium. For instance, while some policy-makers
are considering the imposition of domestic carbon taxes, with adjustment for those taxes at
their border; others are contemplating emission cap-and-trade systems, with an obligation upon
importers to participate in those systems.
Yet another set of policy-makers would prefer to focus on what is most immediately
“deliverable” by the trading system in terms of the fight against climate change. And by this,
they mean the opening of markets to environmental goods and services; in particular to those
that are relevant to climate change, through the ongoing Doha Round of trade negotiations,
which I already talked about.
These are but some of the ways in which some would position the multilateral trading system
on the issue of climate change. Personally, I am of the firm conviction that the relationship
between international trade — and indeed the WTO — and climate change, would be best
defined by a consensual comprehensive international accord on climate change that
46
successfully embraces all major players. Unfortunately this was not fully achieved in the
Copenhagen summit.
So, until a truly global consensus emerges on how best to tackle the issue of climate change,
WTO Members will continue to hold different views on what the multilateral trading system can
and must do on this subject, and may act in accordance to their views. However, the more
countries move toward a multilateral framework on climate change and border measures, the more
unilateral measures will be difficult to justify.
The following points highlight the seven main problems of International business.The problems
are:
1. Different Trade Patterns
2. Regulatory Measures
3. Lop Sided Development of Developing Countries
4. Economic Unions
5. National Policy of Development
6. Procedural Difficulties
47
7. Other Problems.
International Business Problem # 1. Different Trade Patterns:
International business has to deal with the business patterns among the various countries of the
world.
It has to take into account these business policies of various countries which govern their imports
and exports. These policies and practices impose certain constraints and restrictions on
international business.
International Business Problem # 2. Regulatory Measures:
Every country wants to export its surplus natural resources, agricultural produce and manufactured
goods to the extent, it can and import only these goods and products which are not produced or
manufactured within the country. For this purpose regulatory measures like tariff barriers (custom
duties) non-tariff barriers, quota restrictions, foreign exchange restrictions, technological and
administrative regulations, consulter for-malities, state trading and preferential arrangements, trade
agreements and joint commis-sions etc. Come in the way of free trade and unfettered flow of
foreign business.
International Business Problem # 3. Lop Sided Development of Developing Countries:
Developed counters are equipped with sophisticated, technologies capable of transforming raw
materials into finished goods on a large scale. While developing countries on the other-hand lack
technological knowledge and latest equipment. It leads to the lop sided development in the
international business.
International Business Problem # 4. Economic Unions:
48
There is an increasing tendency among nations to form small groups of Economic Unions which
help them to negotiate terms for the business with other countries.
International Business Problem # 5. National Policy of Development:
The country desirous of achieving self-sufficiency, follows a strategy of importing capital goods
equipped with latest and sophisticated technology and restricting imports of less important
consumer goods with a view to lowering down its import bill.
International Business Problem # 6. Procedural Difficulties:
Different countries have evolved different procedures, practices and documents in order to
regulate the export trade. Some of these such as foreign exchange control regulations and others
have been formulated after keeping in view the national objectives and have posed certain
procedural problems to exporters and importers.
International Business Problem # 7. Other Problems:
Apart from the problems written above there are many other internal difficulties which restrict our
export business and consequently affect the foreign exchange earnings.
They are:
(i) Business and industry have not recognised the importance of international business,
(ii) Inflation, high prices and black marketing are starting us in the face. If the situation persists it
may put our price level beyond the means of our customers abroad, no matter how badly they
need our export,
49
Intense competition among countries, industries, and firms on a global level is a recent
development owed to the confluence of several major trends. Among these trends are:
1) Forced Dynamism:
International trade is forced to succumb to trends that shape the global political, cultural, and
economic environment. International trade is a complex topic, because the environment it operates
in is constantly changing. First, businesses are constantly pushing the frontiers of economic
growth, technology, culture, and politics which also change the surrounding global society and
global economic context. Secondly, factors external to international trade (e.g., developments in
science and information technology) are constantly forcing international trade to change how they
operate.
2) Cooperation among Countries:
Countries cooperate with each other in thousands of ways through international organisations,
treaties, and consultations. Such cooperation generally encourages the globalization of business
by eliminating restrictions on it and by outlining frameworks that reduce uncertainties about what
companies will and will not be allowed to do. Countries cooperate:
i) To gain reciprocal advantages,
ii) To attack problems they cannot solve alone, and
iii) To deal with concerns that lie outside anyone’s territory.
Agreements on a variety of commercially related activities, such as transportation and trade, allow
nations to gain reciprocal advantages. For example, groups of countries have agreed to allow
foreign airlines to land in and fly over their territories, such as Canada’s and Russia’s agreements
commencing in 2001 to allow polar over flights that will save five hours between New York and
Hong Kong.
Groups of countries have also agreed to protect the property of foreign-owned companies and to
permit foreign-made goods and services to enter their territories with fewer restrictions. In addition,
countries cooperate on problems they cannot solve alone, such as by coordinating national
eco-nomic programs (including interest rates) so that global economic conditions are minimally
disrupted, and by restricting imports of certain products to protect endangered species.
50
Finally, countries set agreements on how to commercially exploit areas outside any of their
territories. These include outer space (such as on the transmission of television programs), non-
coastal areas of oceans and seas (such as on exploitation of minerals), and Antarctica (for
example, limits on fishing within its coastal waters).
3) Liberalization of Cross-border Movements:
Every country restricts the movement across its borders of goods and services as well as of the
resources, such as workers and capital, to produce them. Such restrictions make international
trade cumbersome; further, because the restrictions may change at any time, the ability to sustain
international trade is always uncertain. However, governments today impose fewer restrictions on
cross-border movements than they did a decade or two ago, allowing companies to better take
advantage of international opportunities. Governments have decreased restrictions because they
believe that:
i) So-called open economies (having very few international restrictions) will give consumers better
access to a greater variety of goods and services at lower prices,
ii) Producers will become more efficient by competing against foreign companies, and
iii) If they reduce their own restrictions, other countries will do the same.
4) Transfer of Technology:
Technology transfer is the process by which commercial technology is disseminated. This will take
the form of a technology transfer transaction, which may or may not be a legally binding contract,
but which will involve the communication, by the transferor, of the relevant knowledge to the
recipient. It also includes non-commercial technology transfers, such as those found in
international cooperation agreements between developed and developing states. Such
agreements may relate to infrastructure or agricultural development, or to international;
cooperation in the fields of research, education, employment or transport.
5) Growth in Emerging Markets:
The growth of emerging markets (e.g., India, China, Brazil, and other parts of Asia and South
America especially) has impacted international trade in every way. The emerging markets have
simultaneously increased the potential size and worth of current major international trade while
also facilitating the emergence of a whole new generation of innovative companies. According to
“A special report on innovation in emerging markets” by The Economist magazine, “The emerging
world, long a source of cheap la, now rivals the rich countries for business innovation”.
51
PESTEL ANALYSIS
52
PESTEL Analysis stands for,
No. 6.1 PESTEL analysis
P- Political analysis
E- Economic analysis
S- Socio -culture analysis
T- Technological analysis
E- Environmental analysis
L- Legal analysis.
53
POLITICAL ANALYSIS
Political analysis includes all the political factors and factors related to government which can
influence the business. For this industry the political factor that affects is any changes in central or
state government which may lead to changes in export or import of goods which will also affect the
profitability and export of the country. Any such changes in export import policy directly affect the
companies who are dealing in export and import of goods. Thereby, Import and export companies
will indirectly affected by it.
ECONOMICAL ANALYSIS
Economic factors have a significant impact on how an organization does business and also how
profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation,
disposable income of consumers and businesses and so on.
These factors can be further broken down into macro-economical and micro-economical factors.
Macro-economical factors deal with the management of demand in any given economy.
Governments use interest rate control, taxation policy and government expenditure as their main
mechanisms they use for this. The recent actions of demonetization have affected the industry a
lot, as due to it the owners of Import and export business faced issues for exporting and importing
of goods, ultimately affects the activities of exim business.
SOCIO - CULTURE ANALYSIS
The socio culture is one of the important aspect in the analysis of the industry it describes the
impact of the particular industry on the society. This has relatively less impact on industry as the
ultimate function of import and export business is to purchase and sell of goods in foreign
countries.
54
TECHNICAL ANALYSIS
The technology changes speedily and it has a great impact on the industry. In exim the highest
use of technology is seen in importing such technology for selling such advanced technological
product in the country and earn more profit. There are few importers who import technology for
selling at their own risk and therefore any major change in the industry in context to technology is
not expected easily, as the set up technology is having accurate measures with limited flaws. The
only thing that can change technology is overcoming of such minor flaws.
ENVIRONMENTAL ANALYSIS
Environmental analysis includes the factors related to environment and nature that affect the
industry. Import and export business works on the proportion of the product in which they are
dealing, there are many importers as well as exporters who deals in the seasonal products like :-
rice, cotton, wheat, groundnuts, mango, etc.... If due to drought or any other reason the growth of
such products is reduced then it will directly affect the business.
LEGAL ANALYSIS
Legal factors include - health and safety, equal opportunities, advertising standards, consumer
rights and laws, product labeling and product safety. It is clear that companies need to know what
is legal and what is not legal in order to trade successfully. In thisbusiness, the legal area plays a
crucial role. As the Import and export company must be authorized and authentic to provide its
services. If a company conducts its activities which are not accepted by law or any unauthorized
activities adversely affects the export – import business. Therefore, the involvement of law is very
much vital.
55
FINANCIAL ANALYSIS OF INDUSTRY
56
S.
No
.
Name Of Products Jan-Dec-
2014
(Value In
USD
Million)
Jan-Dec-
2015
(Value In
USD
Million)
Jan-Oct-
2015
(Value In
USD
Million)
Jan-Oct-
2016
(Value In
USD
Million)
Growt
h %in
USD
1 India Export of Petroleum
Oils And Oils Obtained
From Bituminous
Minerals, Other Than
Crude; Preparations Not
Elsewhere Specified Or
Included, Containing By
Weight 70% Or More Of
Petroleum Oils Or Of Oils
Obtained From
Bituminous Minerals,
These Oils Being The
Basic Cons
14,089.59 6,549.65 5,822.16 4,690.38 -19.44
2 India Export of
Medicaments (excluding
Goods Of Heading 3002,
3005 Or 3006) Consisting
Of Mixed Or Unmixed
Products For Therapeutic
Or Prophylactic Uses, Put
Up In Measured Doses
(including Those In The
Form Of Transdermal
Administration Systems)
Or In Forms Or Packings
9,240.24 9,956.29 8,371.60 8,245.52 -1.51
3 India Export of Rice 7,459.90 6,029.98 5,229.16 4,527.46 -13.42
4 India Export of Articles Of
Jewellery And Parts
Thereof, Of Precious
Metal Or Of Metal Clad
With Precious Metal - Of
6,739.90 7,032.54 6,019.96 5,470.92 -9.12
57
Precious Metal Whether
Or Not Plated Or Clad
With Precious Metal:
5 India Export of Motor
Cars And Other Motor
Vehicles Principally
Designed For The
Transport Of Persons
(other Than Those Of
Heading 8702), Including
Station Wagons And
Racing Cars
5,850.03 5,455.48 4,509.91 5,160.94 14.44
6 India Export of Meat of
bovine animals, frozen
4,658.49 3,993.86 3,121.94 3,094.97 -0.86
7 India Export of Cotton
Yarn (other Than Sewing
Thread), Containing 85%
Or More By Weight Of
Cotton, Not Put Up For
Retail Sale - Single Yarn,
Of Uncombed Fibres :
3,987.60 3,653.31 3,093.11 2,356.51 -23.81
8 India Export of
Crustaceans, Whether In
Shell Or Not, Live, Fresh,
Chilled, Frozen, Dried,
Salted Or In Brine;
Smoked Crustaceans,
Whether In Shell Or Not,
Whether Or Not Cooked
Before Or During The
Smoking Process;
Crustaceans, In Shell,
Cooked By Steaming Or
By Boiling
3,801.20 3,233.60 2,702.36 3,043.09 12.61
58
9 India Export of Light-
vessels, Fire-floats,
Dredgers, Floating
Cranes, And Other
Vessels The Navigability
Of Which Is Subsidiary
To Their Main Function;
Floating Docks; Floating
Or Submersible Drilling
Or Production Platforms
3,775.47 3,155.15 2,151.76 1,641.93 -23.69
10 India Export of T-shirts,
singlets and other vests,
knitted or crocheted
2,689.22 2,860.13 2,373.14 2,333.06 -1.69
11 India Export of Cotton,
not carded or combed
2,637.21 1,789.72 1,077.83 783.86 -27.27
12 India Export of Women’s
Or Girls’ Suits,
Ensembles, Jackets,
Blazers, Dresses, Skirts,
Divided Skirts, Trousers,
Bib And Brace Overalls,
Breeches And Shorts
(other Than Swimwear) --
-- Suits :
2,535.64 2,692.30 2,340.19 2,148.54 -8.19
13 India Export of Refined
Copper And Copper
Alloys, Unwrought -
Refined Copper :
2,453.38 1,901.71 1,646.33 1,102.82 -33.01
14 India Export of Synthetic
Organic Colouring Matter,
Whether Or Not
Chemically Defined;
Preparations As
Specified In Note 3 To
This Chapter Based On
Synthetic Organic
2,123.82 1,828.16 1,560.15 1,518.02 -2.7
59
Colouring Matter;
Synthetic Organic
Products Of A Kind Used
As
15 India Export of Vegetable
Saps And Extracts;Pectic
Substances,
PectinatesAnd
Pectates;Agar-agar And
Other Mucilages
AndThickeners, Products
- Vegetable Saps And
Extracts :
1,960.26 902.79 782.93 515.88 -34.11
16 India Export of Flat-rolled
Products Of Iron Or Non-
alloy Steel, Of A Width Of
600 Mm Or More, Clad,
Plated Or Coated - Plated
Or Coated With Tin :
1,922.56 1,276.28 1,141.16 1,031.12 -9.64
17 India Export of Footwear
With Outer Soles Of
Rubber, Plastics, Leather
Or Composition Leather
And Uppers Of Leather -
Sports Footwear :
1,909.78 1,808.99 1,533.79 1,475.00 -3.83
18 India Export of
Motorcycles (including
mopeds) and cycles fitted
with an auxiliary motor,
with or without side-cars;
1,799.82 1,755.27 1,475.53 1,266.64 -14.16
19 India Export of
Insecticides,
Rodenticides, Fungicides,
Herbicides, Anti-sprouting
Products And Plant-
growth Regulators,
1,757.05 1,741.95 1,401.94 1,449.72 3.41
60
Disinfectants And Similar
Products, Put Up In
Forms Or Packings For
Retail Sale Or As
Preparations Or Articles
(for Example, Sulphur-
treated Bands, etc...)
20 India Export of Other
Furnishing Articles,
Excluding Those Of
Heading 9404 -
Bedspreads :
1,567.83 1,611.72 1,369.07 1,261.70 -7.84
21 India Export of Parts of
goods of heading 8801 or
8802
1,546.48 1,942.18 1,549.62 1,843.96 18.99
22 India Export of Women’s
or girls’ blouses, shirts
and shirt-blouses
1,541.21 1,639.98 1,387.72 1,126.90 -18.8
23 India Export of
Heterocyclic compounds
with nitrogen Hetero-
atom(s) Only-Compounds
Containing An Unfused
Pyrazole Ring(whether
Or NotHydrogenated) In
The Structure :
1,516.44 1,515.65 1,281.14 1,335.25 4.22
24 India Export of Ferro-
alloys-Ferro-manganese :
1,455.29 1,160.73 992.47 754.10 -24.02
25 India Export of New
pneumatic tyres, of
rubber
1,391.44 1,151.75 973.00 1,003.08 3.09
26 India Export of Bed linen,
table linen, toilet linen
and kitchen linen
1,349.09 1,358.23 1,133.89 1,251.89 10.41
27 India Export of
Unwrought aluminium
1,344.58 1,468.80 1,202.38 1,253.02 4.21
61
28 India Export of Unused
Postage, Revenue Or
Similar Stamps Of
Current Or New Issue In
The Country In Which
They Have, Or Will Have,
A Recognized Face
Value; Stamp-impressed
Paper; Bank Notes;
Cheque Forms; Stock,
Share Or Bond
Certificates And Similar
Documents Of Title
1,322.76 1,731.72 1,404.08 1,261.13 -10.18
29 India Export of Articles
For The Conveyance Or
Packing Of Goods, Of
Plastics; Stoppers, Lids,
Caps And Other
Closures, Of Plastics
1,313.20 695.71 609.62 521.25 -14.5
30 India Export of Flat-rolled
Products Of Iron Or Non-
alloy Steel, Of A Width Of
600 Mm Or More, Hot-
Rolled, Not Clad, Plated
Or Coated
1,287.34 708.90 683.02 560.28 -17.97
31 India Export of Trunks,
Suit-cases, Vanity-cases,
Executive- Cases, Brief-
cases, School Satchels,
Spectacle Cases,
Binocular Cases, Camera
Cases, Musical
Instrument Cases, Gun
Cases, Holsters And
Similar Containers;
Travelling-bags, Insulated
1,218.04 1,234.25 1,036.33 1,032.69 -0.35
62
32 India Export of Carboys,
Bottles, Flasks, Jars,
Pots, Phials, Ampoules
And Other Containers, Of
Glass, Of A Kind Used
For The Conveyance Or
Packing Of Goods;
Preserving Jars Of Glass;
Stoppers, Lids And Other
Closures, Of Glass
1,194.52 962.96 934.72 149.25 -84.03
33 India Export of Woven
Fabrics Of Synthetic
Filament Yarn, Including
Woven Fabrics Obtained
From Materials Of
Heading 5404
1,190.28 1,064.79 935.10 770.45 -17.61
34 India Export of Taps,
Cocks, Valves And
Similar Appliances For
Pipes, Boiler Shells,
Tanks, Vats Or The Like,
Including Pressure-
reducing Valves
1,121.11 1,149.24 982.20 901.78 -8.19
35 India Export of Men’s Or
Boys’ Suits, Ensembles,
Jackets, Blazers,
Trousers, Bib And Brace
Oveb Ralls, Breeches
And Shorts (other Than
Swimwear) ---- Suits :
1,109.17 1,153.51 966.89 1,001.15 3.54
36 India Export of Men’s or
boys’ shirts
1,106.85 1,153.64 972.87 1,054.09 8.35
37 India Export of Other cast
articles of iron or steel
1,092.60 1,023.09 877.04 746.16 -14.9
63
38 India Export of Cane Or
Beet Sugar And
Chemically Pure
Sucrose, In Solid Form -
Raw Sugar Not
Containing Added
Flavouring Or Colouring
Matter :
1,082.87 1,059.19 786.85 984.08 25.07
39 India Export of Other
organic compounds
1,082.14 1,170.34 998.96 889.70 -10.9
40 India Export of Synthetic
filament yarn (other than
sewing thread), not put
up for retail sale,
including syntheric
1,044.79 1,030.94 886.91 780.41 -12.1
41 India Export of Worked
Monumental Or Building
Stone (except Slate) And
Articles Thereof, Other
Than Goods Of Heading
6801; Mosaic Cubes And
The Like, Of Natural
Stone (including Slate),
Whether Or Not On A
Backing; Artificially
Coloured Granules,
1,038.58 977.48 833.09 834.12 0.12
42 India Export of Articles of
apparel and clothing
accessories, of leather
1,031.71 976.92 833.18 755.76 -9.29
43 India Export of Track
Suits, Ski Suits And
Swimwear; Other
Garments---Swimwear
992.33 1,096.16 954.39 1,002.89 5.08
44 India Export of Woven
Fabrics Of Cotton,
Containing 85% Or More
961.98 1,011.16 848.75 819.59 -3.44
64
By Weight Of Cotton,
Weighing Not More Than
200 G/m2 - Unbleached :
45 India Export of Coconuts,
Brazil Nuts And Cashew
Nuts, Fresh Or Dried,
Whether Or Not Shelled
Or Peeled - Coconuts :
933.53 880.27 727.37 641.53 -11.8
46 India Export of Wheat 926.70 54.12 51.34 12.34 -75.96
47 India Export of Screws,
Bolts, Nuts, Coach-
screws, Screw Hooks,
Rivets, Cotters, Cotter-
pins, Washers (including
Spring Washers)and
Similar Articles, Of Iron
Or Steel - Threaded
Articles :
915.99 419.37 363.06 283.91 -21.8
48 India Export of Other
Articles Of Iron Or Steel -
Forged Or Stamped, But
Not Further Worked :
907.17 933.56 788.62 763.41 -3.2
No. 7.1 Products which were exported by India during 2014, 2015 and 2016
65
INDUSTRY ANALYSIS: MICHEL PORTER’S FIVE FORCE MODEL
66
No. 8.1 Michael Porter’s 5 force model
RIVALRY AMONG COMPETITORS
What is important here is the capabilities of competitors. In import- export business there are many
market players and therefore the competition is very tuff. The competitors are almost equal but, the
deal in different products and there are many companies which provide same product but at a
different prices.
BARGAINING POWER OF BUYERS
The buyer of product always desires to get assured about its quality by authenticated quality
assessment. The quality assessment, inspection and testing of products and its samples will guide
the buyers for its proper use. So, buyer cannot bargain or compromise in getting services from
service provider.
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BARGAINING POWER OF SUPPLIERS
Exporter of any product always desire to export their product in large quantity. They may try to
negotiate with exporter and they may also get products at low rate but they will never accept poor
quality. Thus, bargaining power of suppliers is relatively moderate.
THREAT OF NEW ENTRANTS
Since many years there are many new entrant in the industry. There is a huge threat of new
entrants because it is the business which will lead to huge profit if the company is trustable and
provide good quality product. If the company gets maximum orders from the foreign countries, that
means the company is genuine and trustworthy.
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FUTURE OUTLOOK
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1. ONLINE IMPORTATION
You must have heard about Alibaba.com, Aliexpress.com, DHgate.com, IPmart.com and several
other online based marketplaces. All these websites listed above deal with online trading as they
ship to other part of the world. You make your order and payment online while they ship your
product to your provided address. You are also to pay for the cost of shipping.
The internet has brought down the walls which used to restrict access to manufacturers located
thousands of kilometers away. Improvements in transportation and logistics now make it possible
for small businesses with little capital to import smaller amounts of stock at low shipping costs. The
beauty of this business is that with little start-up capital and access to the internet you can start
earning a good income.
2. IMPORT/EXPORT BROKERAGE
An import-export agent or broker, also known as a trade agent or customs broker, is an individual
or a company that sends and receives goods to and from different countries. Import-export agents
or brokers work with both importers and exporters by helping them prepare necessary documents
for exporting or importing their products. They also help their clients establish connections in
foreign companies.
So, they work on both ends of import-export deals that of the origin and that of the destination. To
become an import-export broker, you must understand the basic jargon of import-export law,
currency transactions, trade policies, and everything else that goes into making profitable import-
export deals.
3. CLEARING AND FORWARDING BUSINESS
If you have the logistic and business management skills, as well as an entrepreneurial spirit, you
may just be fit to learn how to start a freight brokerage business. As a freight brokerage company,
it is your duty to act as a mediator between shippers and client companies who need their services
and facilities. Their tasks also involve clearing your goods from the ports, paying up your duties
and taxes, transporting your consignment to your desired destination, etc.
Sometimes, freight brokers are referred to as clearing and forwarding agents. There’s much
money to be made as a clearing and forwarding agent. The sweetest part is that this business can
be done anywhere, in any country; as long as international trade still exists and your country is a
partaker, you are in business.
70
4. TIMBER EXPORTATION
The construction and furniture sectors all over the world today cannot do without the use of timber,
but what is important to you as an entrepreneur is to identify the markets for these products while
connecting the timber producing nations to the market, even though very stressful and energy
sapping, the pain is always worth it.
5. MANUFACTURERS REPRESENTATIVE
If you are specialized in a certain industry, you can very well go to an oversea manufacturer and
ask to represent them in the countries of your choice. A representative has the edge because you
are the expert in the industry or a certain market.
For example, if you are an expert in the wooden furniture business and you have been selling in
the western US region, you have the great opportunity of going to a Chinese furniture maker and
asking to be a representative of their western US region. Most of the manufacturers love people
like you because you are their free labor (no base, only commission) to help them get into the
market. It’s a win-win situation for both you and the manufacturer.
6. SEAFOOD IMPORTATION
Tons of seafood, such as fish, crustaceans, mollusks, and so on are consumed on a daily basis.
Ironically, however, indigenous suppliers cannot cater to the huge demand for these products,
leaving open a window of opportunities for importers of seafood. While there are more-than-
countable import and export opportunities that you can tap from, you would hardly go wrong with
seafood importation.
71
7. ONLINE EXPORT/IMPORT DIRECTORY
Publishing a biannual import/export opportunities directory in printed and electronic format has the
potential to make you rich, as millions of budding entrepreneurs worldwide are constantly on the
lookout for income and business opportunities.
Simply create an import/export directory that features information about worldwide manufacturers,
wholesalers and agents that are seeking to expand their product lines into foreign countries and
new markets, or individuals or companies that are seeking to import particular products into their
regions. Charging a fee to be listed in the directory, as well as selling the directories to people who
are seeking this type of valuable and potentially profitable information and contact sources would
earn revenue for the business.
8. DISTRIBUTION WAREHOUSING
Starting a warehousing and distribution service means you can act as a warehouse, shipping and
receiving agent for as many as 20 or 30 different companies. This business venture does require a
great deal of research and investment capital. However, with careful planning and exceptional
organizational skills, this type of business venture is capable of creating a six-figure income per
year, all within a very short period of time for the enterprising entrepreneur.
9. AGRO-PRODUCTS EXPORTATION
Africa and many developing economies are blessed with a lot of food and natural resources; and
most of these natural resources are raw materials needed for the production of some finished
products. Every day, tons of raw materials and food products leave the shores to countries such as
India, Vietnam, China, USA, UK, Brazil, etc; yet, the demand is never met.
You can become an exporter by simply registering with the appropriate government agency and
decide on the specific product you wish to export. Examples of products highly in demand are Chili
pepper, Kola nuts, Bitter Kola, Cassava flakes (Garri), Cocoa, Groundnut, Yam flour, Cashew nuts,
etc.
10.EXPORT TRADING COMPANY
While an EMC has merchandise to sell and is using its energies to seek out buyers, an ETC
attacks the other side of the trading coin. It identifies what foreign buyers want to spend their
money on and then hunts down domestic sources willing to export. An ETC sometimes takes title
to the goods and sometimes works on a commission basis.
72
11.CLOTHING IMPORTATION
Clothing is another basic need of man. Regardless of the economy, people must wear clothes and
this includes shoes, bags, underwear, perfumes, etc. Now there is a fast growing trend now and
that is “Used clothes” or “Recycled clothes.” Since the economy is getting tougher and there’s
need to be clothed, the masses have resolved to buying used clothes rather than new ones. Still
yet, there is a market for new clothes; for men, women, and kids. You can source your materials
from China, Hong Kong, Italy, France, Dubai, India, etc.
12.SMART PHONES IMPORTATION
Although smart phones may appear to be “every day” items in markets such as the U.S., they are
just beginning to scratch the surface in many developing nations. The cost to produce this type of
technology is extremely inexpensive – especially if you can find export opportunities in China for
these items.
13.USED ELECTRONICS IMPORTATION
While electronics are certainly hot sellers, it is actually the accessories that go along with the latest
smart phones, laptops, and other gadgets that are highly profitable items. Many of these items can
be purchased wholesale for pennies on the dollar and then resold to the end user at retail price
either online or through traditional brick and mortar outlets.
14.HOUSEHOLD ITEMS IMPORTATION
Home accessories are another area that is booming when it comes to profitable import export
opportunities. This can mean anything from picture frames to candle holders to soap dispensers –
and everything in between. Most items for the home are easy to manufacture and can be shipped
and sold in wholesale packages.
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15.SHIPPING SERVICES
With the increasing demand for shipping services that offer reasonable prices and promise
convenience, speed and reliability, no other time could be better than now for taking a plunge into
the shipping business. The industry is growing and rapidly changing—thanks to the increasing
dependence on online shopping. However, you must realize the fact that the maritime / shipping
industry is highly capital intensive and competitive.
Secondly, starting your own shipping company requires that you have in-depth knowledge of
import and export procedures as well as the shipping, container, and logistics industries in your
country. You also need to know the legislation for crew members to work on-board your vessels,
how to operate vessel within and outside specific ports, how to handle dangerous goods and other
types of goods, and how to operate certain communication equipment on-board your vessel and
many other legislation.
16.LOGISTICS SPECIALIST
Logistics specialists analyze and coordinate supply chains for organizations and businesses. They
direct the allocation of materials, supplies and products, overseeing purchasing, shipping,
warehousing and delivery. They also present reports on performance data, striving to find cost-
effective solutions to production, shipping and delivery of products.
17.MARKETER
Marketing managers play an invaluable role for importing and exporting organizations, developing
and establishing overseas markets for goods and services. These professionals identify markets
and develop competitive pricing strategies. They utilize forecasting computer applications and
work with various aspects of messaging and communications, including public relations and
advertising.
74
18.EXPORT/IMPORT INSURANCE BROKERAGE
Export shipments are usually insured against loss, damage, and delay in transit by cargo
insurance. For international shipments, the carrier’s liability is frequently limited by international
agreements and the coverage is substantially different from domestic coverage. Arrangements for
cargo insurance may be made by either the buyer or the seller, depending on the terms of sale.
Exporters are advised to consult with international insurance carriers or freight forwarders for more
information. Damaging weather conditions, rough handling by carriers, and other common hazards
to cargo make marine insurance important protection for exporters. If the terms of sale make the
firm responsible for insurance, it should either obtain its own policy or insure cargo under a freight
forwarders policy for a fee. You can therefore become an insurance broker in the import and
export business.
19.CASHEW NUT EXPORTATION
Cashews are found wild. Actual production figure is not available, but is estimated to be around
50,000 tons annually. Over 80 per cent of it is exported raw and unprocessed to India, Vietnam
and Brazil, where they are processed into kernels and sold for higher value in Europe and North-
America.
In recent times, world market price of kernels has stabilized at $1.7 per pound for the benchmark
grade – W320. This consumer-friendly price is likely to sustain continued demand for the product,
even as new low cost suppliers enter the international market. One cashew tree produces between
200 and 300 cashew nuts in a year.
20.CRUDE OIL IMPORT AND EXPORT
Every nation of the world needs energy and fuel to power their economy and not all these
countries have in excess these fuel. You can deal in the exporting and importing of crude oil from
one country to another. It is important to note that it is for the big dogs as it involves large cost of
startup but a very profitable business in the long run.
21.PURE HONEY EXPORTATION
Honey is primarily composed of fructose, glucose and water. It also contains other sugars as well
trace enzymes, minerals, vitamins and amino acids. Honey is manufactured in one of the world’s
most efficient factories, the beehive. Honey is currently priced between US$ 10.00 AND US$12.00
per kilogram at international market.
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22.SPARE PART IMPORTATION
Just like used cars, you can go into the importation of either used or new spare parts. Since it is
very hard to return cars to factory especially from Africa, importation of the spare part is a
goldmine if you have the knowledge and can import in large quantities.
23.AIR CARGO BUSINESS
The sea is not the only means through which cargos can be brought in, the air can also be utilized
in transporting containers. In 2014, airlines transported 51.3 million metric tons of goods,
representing more than 35% of global trade by value but less than 1% of world trade by volume.
With the right tools and equipment even though very costly, you can start an air cargo business by
helping businessmen transport their goods faster and in a safer way.
If you have the ability to sell, and an air of diplomacy, the import/export business might be right for
you. All you need is the desire and determination to make it work. As you progress in the business,
many factors become obvious and easy to handle. Once you get the business underway, the
commission for setting up sales is very profitable. And after you establish and maintain a number
of exclusive accounts, you’ll find the time you spend is highly rewarded with money.
76
PART – II Company Study
Company Information and Product Profile
77
No. 10.1 company profile
Name XXXXXXX
Type Private
Industry Import and export
Nature of business Trading
Headquarters XXXXXX
Reg. office
XXXXXXX
XXXXXXXX
XXXXXXXXXXXXX
XXXXXX
Logo
Website
XXXXXXXXXX
XXXXXXXXXXX
78
PRODUCT PROFILE
79
PET Strap
Oriented or tensilized polyester are the strongest plastic strapping products and are used as a
viable alternative to steel strapping in the some industries. Polyester provides excellent retained
tension on rigid loads. Its excellent recovery properties help a load absorb impact without strap
breakage.
No. 10.2 Product profile (PET STRAP)
Why (pet) Strapping is a Strong Alternative Of SteelStrapping?
ECONOMY:
50% cost saving compare to steel strapping because the weight of 6 meters of pet straps is equal
to 1 meter of strap of same size and easy handling.
80
SAFETY:
Pet strap does not have sharp edges like steel. It will not cut or damage product pet strap create a
safe work environment for user because it does not spring back when removed, so there is no risk
of injuries while tensioning or cutting the strap.
No. 10.3 Product profile (PET strap holding cotton bales)
Why Pet Strapping is a Better Choice Over Other Plastics?
BECAUSE OF THE FOLLOWING REASONS:
 HIGH TENSILE STRENGHT
 LOW ELONGATION
 BETTER WEATHER RESISTANCE
Advantages:
Lower cost and environment friendly as well.
Best suitable for medium to heavy application rust free and safe working.High heat-resisting and
lower elongation rate.
81
Features
1. Saving 50% cost in packing: According to the calculation, the weight of PET strap is only 1/6 of
steel strap in the same size and length. It can save 50% for you in using PET strap to pack glass
instead of steel strap.
2. Safety:PET packing strap can keep 5% tightening force for a long time without loosing, and it still
has 5% buffer elongation when struck by powerful external force to make sure the safety of the
packed goods.
3. Environmental Protection: PET packing strap is made of packing material in the grade of food. It
doesn’t cause pollution to the packing objects, meeting the requirements of environmental
protection, without any limitation in exporting.
4. Convenience: PET packing strap is light and convenient in transporting. Compared with steel
band, it doesn’t need to cut in advance when using PET strap and it doesn’t need to wear gloves
either when operation, easy and efficient
5. Strong tension, Small elongation, Strong temperature resistance, Excellent flexibility, Efficient,
Beautiful but rust resistance, Economical products.
82
PET STRAP (PLAIN / SMOOTH)
Sr.
No.
Width Thickness Weight per meter Runnage meter Minimum
Breaking
strength
Elongation
per Kg. at break
mm mm Gram Meter N Kgf %
1 12 ( 11.70 to 12.10) 0.50 ( 0.48 to 0.52) 8.10 123.00 250 25
2 12 ( 11.70 to 12.10) 0.60 ( 0.58 to 0.62) 9.70 103.00 250 "
3 12 ( 11.70 to 12.10) 0.65 ( 0.63 to 0.67) 10.50 95.00 300 "
4 12 (11.70 to 12.10) 0.70 (0.68 to 0.72) 11.30 88.00 300 "
5 12 (11.70 to 12.10) 0.80 (0.78 to 0.82) 12.90 77.00 350 "
6 15 (14.70 to 15.10) 0.60 ( 0.58 to 0.62) 12.10 82.00 350 "
7 15 (14.70 to 15.10) 0.70 ( 0.68 to 0.72) 14.10 71.00 400 "
8 15 (14.70 to 15.10) 0.80 (0.78 to 0.82) 16.10 62.00 450 "
9 15.50 ( 15.30 to 15.60) 0.90 ( 0.88 to 0.92) 18.70 53.00 600 "
10 16 ( 15.70 to 16.10) 0.90 (0.88 to 0.92) 19.30 52.00 600 "
11 16 ( 15.70 to 16.10) 1.00 ( 0.98 to 1.02) 21.50 46.00 550 "
12 19 (18.70 to 19.10) 0.70 (0.68 to 0.72) 17.80 56.00 500 "
13 19 (18.70 to 19.10) 0.80 (0.78 to 0.82) 20.40 49.00 550 "
14 19 (18.70 to 19.10) 1.00 (0.98 to 1.02) 25.50 39.00 700 "
15 19 (18.70 to 19.10) 1.27 (1.25 to 1.29) 32.40 30.00 850 "
16 25 (24.70 to 25.10) 1.00 (0.98 to 1.02) 33.50 29.00 1000
17 25 (24.70 to 25.10) 1.27 (1.25 to 1.29) 42.50 23.50 1150
83
PET STRAP (EMBOSSED / KNURL)
Sr.
No.
Width Thickness Weight per meter Runnage meter Minimum
Breaking
strength
Elongation
per Kg. at break
mm mm Gram Meter N Kgf %
1 12 ( 11.70 to 12.10) 0.50 ( 0.48 to 0.52) 7.60 131.00 220 25
2 12 ( 11.70 to 12.10) 0.55 ( 0.53 to 0.57) 8.30 120.00 300 "
3 12 ( 11.70 to 12.10) 0.60 ( 0.58 to 0.62) 8.60 116.00 300 "
4 12 ( 11.70 to 12.10) 0.65 ( 0.63 to 0.67) 9.40 106.00 300 "
5 12 (11.70 to 12.10) 0.70 (0.68 to 0.72) 10.20 98.00 320 "
6 12 (11.70 to 12.10) 0.80 (0.78 to 0.82) 11.60 86.00 320 "
7 15 (14.70 to 15.10) 0.60 ( 0.58 to 0.62) 11.20 89.00 300 "
8 15 (14.70 to 15.10) 0.70 ( 0.68 to 0.72) 12.80 78.00 350 "
9 15 (14.70 to 15.10) 0.80 (0.78 to 0.82) 14.80 67.00 400 "
10 15.50 ( 15.30 to 15.60) 0.90 ( 0.88 to 0.92) 17.50 57.00 500 "
11 16 ( 15.70 to 16.10) 0.70 ( 0.68 to 0.72) 13.70 73.00 400 "
12 16 ( 15.70 to 16.10) 0.80 ( 0.78 to 0.82) 15.80 63.00 450 "
13 16 ( 15.70 to 16.10) 0.90 (0.88 to 0.92) 17.90 56.00 550 "
14 16 ( 15.70 to 16.10) 1.00 ( 0.98 to 1.02) 20.00 50.00 600 "
15 19 (18.70 to 19.10) 0.70 (0.68 to 0.72) 16.30 61.50 500 "
16 19 (18.70 to 19.10) 0.80 (0.78 to 0.82) 18.80 53.00 550 "
17 19 (18.70 to 19.10) 1.00 (0.98 to 1.02) 23.80 42.00 700 "
18 19 (18.70 to 19.10) 1.27 (1.25 to 1.29) 30.40 33.00 900 "
No. 10.4 Product profile
84
FIBC Bag (Flexible Intermediate Bulk Containers)
No. 10.5 Product profile Single (Loop or Two Loop Bag )
No. 10.6 Product profile (Tunnel Loop Bag)
85
Flexible Intermediate Bulk Containers (FIBCs) or Bulk Bags as it is popularly known today are
giant size bags in drum or box shape. These bags are made of high tenacity Polypropylene (PP)
material and are UV stabilized with certain additives to give more shine to the bag and TiO2. They
are produced in a range of capacities from 250KG Safe Working Load to 2500KG Safe Working
Load with a Safety Factor 5:1 (Single trip) and 6:1 (Multi trip), depending on the density of the bulk
material that is handled in the bag. These bags are normally tailor made to meet the specific
requirements of the end users.
At Omniscient, we provide a wide range of these Bulk bags to meet today's diverse packaging
requirements. We offer them with different sizes, strengths, fabric weight, loop designs, top and
base designs, inner liner or lamination (outside/inside the bag) and various printing options. We
can do a maximum up to six color printing on our Bulk bags as per the customer’s requirement.
Our FIBCs are made in different colors and we can use multi-colour webbing to give them a
different and a unique look all together.
Unique Characteristics:
 Ideal, cost effective, economical and highly feasible source for packaging of free flowing
material in the granular, power or crumble form.
 Very easy to store and handle the FIBC with a standard equipment.
 Bulk bags when not in use could be easily folded and requires very less space in comparison to
the storage of empty fibber drums and other containers used for packaging.
 Bulk bags/FIBCs once packed and filled with material does not require any additional
packaging.
 FIBCs are packed flat and square in a bale for the delivery of FIBC bags to the end users for the
its consumption.
 Depending upon the bulk capacity of the product and its application, the FIBCs/Bulk bag comes
with the guarantee of the Safe Factor of 5:1 and 6:1 for the Dangerous goods.
Salient Features:
 Industrial grade clean production.
 Safe Working Load ( SWL) : 500 KG to 2500 KG.
 Safety Factory ( SF) : 5:1 ( Single trip), 6:1 ( Multi Trip) or as per customers requirement.
 Size, Color & Type of FIBCs: As per the customer requirement & purely customized.
 Printing : Up to 6 Color Printing on each sides.
 Loops, Filling & Discharge options : As per customers requirement.
 Liner : PE Liner from 40 to 120 Micron Thickness.
 Packing: Packed on either Bale or Pallets.
86
FIBC PRODUCTS:
Styles:
 U-Panel Bag - Requires 2 seams along 2 opposing sides to create 2 panels and a U shaped
bag.
 Tubular - Circular fabric with with seams sewn at the top and bottom of the bag.
 Baffle- Utilizes inside baffles that allow the bag to fill to maximum capacity without expanding.
Fabric:
 Color Options - As per customers Requirement (Minimum order quantities required).
 Uncoated - Standard polypropylene fabric.
 Coated - Fabric that is laminated with polypropylene film.
 Conductive - Fabric which conducts electrostatic charges.
Top:
 Open tops - Economical for in plant use, but not optimal for packaging.
 Duffle tops - Top opens out of the bag for easy filling.
 Inlet spouts - Top wraps around your filling spout for the best combination of easy filling and
spill free shipping.
 Cone top - Allows optimal filling space for products that need time to settle.
Bottom:
 Flat Bottom - Basic polypropylene fabric bottom with no discharge capability.
 Discharge Spout - Allows bag to discharge from bottom in a smaller capacity.
 Full Bottom Discharge - Allows entire contents to be discharged in one motion.
 Closures - Tie closure, velcro closure, diaper closure, star closure, drawstring closure.
Lift Loops:
 Side seam - 4 loops sewn directly into the side seam.
 Cross corner - 4 loops sewn across the corner for easy forklift access.
 Stevedore straps - 4 loops sewn directly into the side seam with 2 straps connecting the side
loops.
 1-loop - 1 large loop connecting two opposite sides for easy crane access.
 Sleeves - 2 sleeves sewn on opposite sides of the top for easy forklift access.
87
Tarpaulin
We produce and supplies of Tarpaulin. A tarpaulin often referred as “Tarp”. Tarpaulin is a large
sheet of strong, flexible, and handy water resistant or water proof cover for large areas. We are
producing Modern tarpaulins which are made up of Woven polypropylene, usually known as
Polytarp and produced in a woven pattern, which makes it easy to the touch goods and cover the
things or areas. It also has edges with grommets in corners which makes it easy for people to tie
down or suspend it to various objects.
No. 10.7 Product profile (Tarpaulin)
88
Our range in the tarpaulin contains of various series of colors and sizes as per the requirement of
customers. We serve the best quality product which will protect the valuable commodities for you.
Applications:
We produce tarpaulins which are flexible and large therefore it has many uses. we produces
tarpaulins which are coated to be waterproof, resist ultraviolet or sun rays, and protective to
extreme hot or cold weather conditions and are even made to resist wind along with an important
benefit of having high strength and durability.
In addition to protecting goods and areas from weather, our tarpaulin is also used to protect the
floor from paint splatters or an open truck load items and even Farmers can use it to cover hay.
Tarpaulin for Storage:
During the storage of goods, the maintaining of quality is the biggest challenge for any producer.
Our Tarpaulin being Strong and weather resistant takes care of your valuable goods like
commodities, food grains, cotton, fertilizers and chemicals from degrading and acts as a second
skin.
Tarpaulin for Transport:
Extra strong Tarpaulin protects valuable cargo during transportation by road, rail or ship from rain
and hot winds. Our Proper sealed Tarpaulin ensures that your cargo is safe and protected against
uncertain conditions and is safely reached to the end user.
Tarpaulin for Outdoors:
Our High quality Tarpaulin is ideal for picnics & outdoor functions. Trekkers, campers and holiday
makers can use our Tarpaulin as an ideal for shelter, thereby our tarpaulin stands protective for
industries as well as to fun loving and adventurous people.
89
Mango Pulp
Since years, we have been engaged in exporting the best stock of Natural Mango Pulp. Wisely
packed in moisture free jar for retaining its taste and nutrients, the pulp is high in demand for use
in various confectionery items such as ice creams, sweets, cakes and pastries. We offer
this Natural Mango Pulp to clients at competitive price.
No. 10.8 Product profile (Mango pulp)
Key points:
 Extracted from the hand- picked mangoes
 The pulp is processed through pasteurization and stored in conductive temperatures
 Stringently tested for its purity and shelf life
90
Functional Departments
91
 Purchase department:- Purchase department plays an important role in
each and every business. In omniscient international the purchase is been done on
the basis of order from the foreign country. The purchase depends upon the
availability of the order and also depends upon the availability of the finance with the
company. XXXXXXXXXX mainly purchase their products from
XXXXXXXXXXXXXXXXXXXXXXX
 Marketing department:- Marketing is the best way of promoting the business,
and omniscient mainly depends upon the marketing strategy. In omniscient
International the promotion of the business is done mainly through marketing and its
website. Marketing in omniscient is done by its own proprietor rather than other
person, and due to that XXXXXXXXXXXX has good relation with the foreign
customers.
 Accounting department:- Accounting is an important part of the business
weather the business is on large scale or on small scale. Accounting helps the
business to know its sales, purchases, assets, liabilities, profits, losses, etc… for the
years. Omniscient international records its transaction in the accounting software i.e
Tally and also it records its transaction in the accounting book, accounting
department is handled by XXXXXXXXXX.
 Supervision department:- The work of the supervisor is less as compare to
other department, but the work which is done by supervisor should be perfect and
complete. In omniscient international the supervision is carried by its own proprietor
XXXXXXXX.
92
SWOT Analysis
93
No. 12.1 SWOT Analysis
 STRENGTHS
 The company is working in the industry since many years so it has experience of almost all
the kinds of documentation and procedure.
 It has a good market image and therefore it is recognized as trustworthy company in import
and export industry.
 The proprietor is well experienced, so he can guide for effective functioning of the company.
 WEAKNESSES
 The company is working mainly in the export of four products while competitors are
exporting many commodities.
 Sometimes, the company suffers loss due to non recovery of money from the foreign
customers.
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 OPPORTUNITIES
 The company can export other commodities like food grains, solar panels, non-woven bags
and non-woven material, etc... .
 The company can work from other country and even can work with the companies of other
country.
 The company can earn more profit by exporting other commodities and also by importing
some products on behalf of some country in India.
 THREATS
 The biggest threat for company is there are many new entries of exporters and importers in the
market.
 There are many big companies who are exporting their companies by their own rather then
exporting through the other companies and traders.
95
Conclusion
The company, at present is working with good reputation in the market and due to that in future it
has a wider scope of progress and can even get more business by entering in export of more
commodities.
Thus, the company has its own reputation in the global market in the field of export of in various
countries. The company is having good relation in foreign countries like U.S.A, U.A.E, Europe,
etc..., and also it has wide market in India. At present, the company is highly recognized and
trustworthy in terms of its services and quality of the product.
96
BIBLIOGRAPHY
 www.omniscientstrap.com
 www.wovensackbag.in
 www.tradingeconomjcs.com

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I-MBA Sem 6 project

  • 1. Project Report On “An overview on XXXXXXXXX” Submitted to “XXXXXXXXXXXXXXXXXXXXX” IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (BBA) (Semester VI of Integrated Master of Business Administration – I-MBA) Under XXXXXXXXXXXXXXXXXX UNDER THE GUIDANCE OF Faculty Guide Company Guide XXXXXXXXX Mr. XXXXXX Submitted by Jay N. Sagapariya Enrolment No.: XXXXXXXX I-MBA – SEMESTER VI XXXXXXXXXXXXXXXXXX XXXXXXX 2017
  • 4. 4 PREFACE Industrial activity plays an important role in overall economic development of the developing country like India. Industrial Visit is a part of practical training contained in I-MBA course. I-MBA is a special course of management, where the management knowledge is given during the span of course and which is more related with the practicality of it in the managerial field. So, I am very pleased to get training at XXXXXXXXXXXXXXX.
  • 5. 5 ACKNOWLEDGEMENT Every successful achievement involves efforts of many people. This Project is not an exception to that fact. It is my pleasure to take this opportunity to thank all those who helped me directly or indirectly in development of the project. I wish to express my gratitude to my project guide XXXXXXXXX for co-operating in preparing this report. He explained me about the system and guides during the entire Project. His constant encouragement and co-operation have been a source of inspiration for me all the time. I am also thankful to XXXXXXXXXXX, Proprietor of XXXXXXXXXX for giving me the permission to do internship and to prepare report in his company and providing me all the necessary information for enhancing my knowledge during this project. The project has given me immense knowledge and experience to use in future ventures and many moments to cherish.
  • 6. 6 DECLARATION I, Jay Sagapariya, hereby declare that the report for project entitled: “XXXXXXXXXXXXXX” is a result of my own work and my indebtedness to other work publications, references, if any, has been duly acknowledged. Place: XXXX Date: XXXXXX Jay N. Sagapariya
  • 7. 7 EXECUTIVE SUMMARY This project report has been written keeping in mind the operations of a company providing export and import services in the name of “XXXXXXXXXXXXX.” Foreign trade plays key role in our national economy in terms of its contribution in trade, industrial activity, and employment and foreign exchange earnings. In the emerging era of globalized and liberalized economic activities, India has to compete to provide certain goods of best quality at a reasonable price. This company provides export and import services which include quality assure of the product, loading and unloading of container, export documentation and import documentation. The project report contains information on topics as Growth and Evolution of Industry, Product Profile, Distribution Channel in Industry, Key Issues and Current Trends in Industry, PESTEL Analysis, Financial Analysis of Industry, Michel Porter’s Five Force Model and Future Outlook of Industry. The report also highlights the national competitors in the industry. It also includes detailed information about services provided by the company, different processes and the products exported by their company.
  • 8. 8 TABLE OF CONTENTS SR. NO. PARTICULARS PAGE NOS. PART – I Industry Study 1 Growth and Evolution of Industry in India 1 2 Product Profile 8 3 Players in the Industry 19 4 Distribution channel in the Industry 24 5 KEY ISSUES AND CURRENT TRENDS 28 6 PESTEL Analysis 42 7 FINANCIAL ANALYSIS OF INDUSTRY 46 8 Industry Analysis : Michael Porter’s Five Force Model 56 9 Future outlook 59 PART – II Company Study 10 Company Information and Product Profile 67 11 Functional Departments 81 12 SWOT / TOWS Analysis 83 13 Conclusion 86
  • 9. 9 LIST OF TABLES / DIAGRAMS / FIGURES Sr. No Particular Number Page Number 1. Indian export for year 2016-2017 1.1 02 2. India’s trade for year 2016-2017 1.2 02-03 3. India’s export by country. 1.3 04 4. India’s export by category. 1.4 05-06 5. India’s export as on March 2017 1.5 07 6. Extracting of petrol 2.1 09 7. Gold products 2.2 10 8. Vehicles (Automobiles) 2.3 11 9. Machinery 2.4 12 10. Chemical 2.5 13 11. Medicines 2.6 14 12. Cereals 2.7 15 13. Iron and steel industry 2.8 16 14. Textile industry 2.9 17 15. Electrical circuit 2.10 18 16. India’s top 10 exporting companies 3.1 23 17. Distribution channel for export 4.1 25 18. PESTEL analysis 6.1 43 19. Products which were exported by India during 2014, 2015 and 2016 7.1 47-55 20. Michael Porter’s 5 force model 8.1 57 21. company profile 10.1 68 22. Product profile of company (PET STRAP) 10.2 70
  • 10. 10 23. Product profile of company (PET strap holding cotton bales) 10.3 71 24. Product profile of company 10.4 73-74 25. Product profile of company Single (Loop or Two Loop Bag ) 10.5 75 26. Product profile of company (Tunnel Loop Bag) 10.6 75 27. Product profile of company (Tarpaulin) 10.7 78 28. Product profile of company (Mango pulp) 10.8 80 29. SWOT Analysis 12.1 84
  • 11. 11 PART – I INDUSTRY STUDY GROWTH AND EVOLUTION OF INDUSTRY IN India
  • 12. 12 Exports from India jumped 17.5 percent year-on-year to USD 24.5 billion in February of 2017, the biggest gain since October of 2011. Sales of non-petroleum and non gems & jewelry rose 20.2 percent. Exports in India averaged 4789.85 USD Million from 1957 until 2017, reaching an all time high of 30541.44 USD Million in March of 2013 and a record low of 59.01 USD Million in June of 1958. No. 1.1 Indian exports for year 2016-2017 India Trade Last Previous Highest Lowest Unit Balance of Trade -8896.30 -9840.90 258.90 -20210.90 USD Million [+] Exports 24490.27 22115.03 30541.44 59.01 USD Million [+] Imports 33386.60 31955.90 45281.90 117.40 USD Million [+] Current Account -3400.00 -300.00 7360.00 -31857.20 USD Million [+] Current Account to -1.25 -1.31 2.28 -4.82 percent [+]
  • 13. 13 India Trade Last Previous Highest Lowest Unit GDP External Debt 484300.00 479658.00 485078.00 96392.00 USD Million [+] Terms of Trade 57.90 60.20 100.00 57.90 Index Points [+] Capital Flows -17.51 155.56 766.96 -271.46 USD Million [+] Foreign Direct Investment 3353.00 3081.00 5670.00 -60.00 USD Million [+] Remittances 9942.81 9686.59 12293.40 5999.10 USD Million [+] Tourist Arrivals 983000.00 1037000.00 1037000.00 129286.00 [+] Gold Reserves 557.77 557.77 557.77 357.75 Tonnes [+] Crude Oil Production 736.00 746.00 813.00 526.00 BBL/D/1K [+] Terrorism Index 7.48 7.75 8.09 7.22 [+] Weapons Sales 33.00 53.00 53.00 1.00 USD Million [+] NO. 1.2 India’s trade for year 2016-2017
  • 14. 14 India Exports by Country Last Mexico 841.09 INR TML Mar/13 Malta 597.55 INR TML Mar/13 Poland 515.48 INR TML Mar/13 Argentina 306.82 INR TML Mar/13 Nigeria 264.76 USD Million Dec/16 Kuwait 250.95 USD Million Dec/16 United States 240.49 INR Billion Sep/16 Austria 198.56 INR TML Mar/13 United Arab Emirates 178.55 INR Billion Sep/16 Romania 155.27 INR TML Mar/13 Hungary 150.58 INR TML Mar/13 Turkey 148.64 INR TML May/14 Czech Republic 129.22 INR TML Mar/13 Norway 128.38 INR TML Mar/13 Slovenia 118.71 INR TML Mar/13 Hong Kong 107.09 INR Billion Sep/16 No. 1.3 India’s export by country.
  • 15. 15 India Exports by Category Last Non Basmati Rice 86160.58 INR Million Sep/16 gems & Jewellery-total 30307.49 INR TML Sep/16 gems & Jewellery-cut & Polished Diamo 16709.09 INR TML Sep/16 Non Basmati Rice 12332.58 INR Million Sep/16 Precious Metals 7327.89 USD Million Dec/16 gems & Jewellery-gold Jewellery 6070.92 INR TML Sep/16 gems & Jewellery-gold Medallions & Co 4421.62 INR TML Sep/16 Mineral Fuels 4087.61 USD Million Dec/16 Nuclear Reactors, Boilers & Parts Ther 2270.30 USD Million Dec/16 Vehicles 2258.55 USD Million Dec/16 Pharmaceutical Products 2086.32 USD Million Dec/16 Organic Chemicals 1741.79 USD Million Dec/16 Ships, Boats & Floating Structures 1736.47 USD Million Dec/16 Apparel & Clothing Assecories Not Knit 1592.31 USD Million Dec/16 gems & Jewellery-silver Jewellery 1557.00 INR TML Sep/16 Electrical Machinery Etc 1301.15 USD Million Dec/16 Apparel & Clothing Assecories, Knitted 1224.60 USD Million Dec/16 Manufactured Goods 1148.03 INR Billion Sep/16
  • 16. 16 India Exports by Category Last Gems & Jewellery- Rough Diamonds 1035.26 INR TML Sep/16 Cereals 1017.30 USD Million Dec/16 No. 1.4 India’s export by category.
  • 17. 17 India Exports sIn recent years, India has become one of the biggest refined product exporters in Asia with petroleum accounting for around 20 percent of total exports. The country also exports: engineering goods (19 percent of the total shipments), chemical and pharmaceutical products (14 percent), gems and jewellery (14 percent), agricultural and allied products (10 percent) and textiles and clothing (10 percent). India’s main export partners are: United Arab Emirates (12.1 percent of the total exports), the United States (12 percent), Singapore (4.5 percent), China (4.5 percent), Hong Kong (4 percent) and Netherlands (3.5 percent). This page provides the latest reported value for - India Exports - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. India Exports - actual data, historical chart and calendar of releases - was last updated on March of 2017. Actual Previous Highest Lowest Dates Unit Frequency 24490.27 22115.03 30541.44 59.01 1957 - 2017 USD Million Monthly Current Prices, NSA No. 1.5 India’s export as on March 2017
  • 19. 19 Here are the 10 commodities most exported from India and their dollar value: 1. Petroleum products: No. 2.1 extracting of petrol Value - 61.2 billion dollars Oil-based products and crude oil giants such as ; - Hindustan Petroleum Corporation Limited, - Bharat Petroleum, - Reliance Petroleum, - ONGC have contributed largely to the export sector of India. Although the country is hugely dependent on oil imports, export of oil-based products has supported the economy to a large extent.
  • 20. 20 2. Precious stones: No. 2.2 Gold products Value - 41.2 billion dollars India consumes around 20 percent of the global gold production and 75 percent of that amount goes into making jewellery. The jewellery sector is also supported by banks and government policies so that the industry does not fall drastically. Around 30 percent of Indian jewellery gets exported to the - United States alone. Other such countries include - Hong Kong, - UAE, - Singapore and - Belgium
  • 21. 21 3. Automobile: No. 2.3 Vehicles (Automobiles) Value - 14.5 billion dollars From 2008 to 2013, the Indian automobile export sector has seen a rise 17 percent, one of the fastest economic growth that has ever taken place in the sector. Being one of the leading steel producers in the world, India invests largely on the automobile sector and its export
  • 22. 22 4. Machinery: No. 2.4 Machinery Value - 13.6 billion dollars There has been a 10.5 percent increase in the export of heavy machinery from India. These include; - cars, - pumps, - heavy machines, - building construction tools, - agricultural equipment and so on
  • 23. 23 5. Bio-chemicals: No. 2.5 Chemical Value - 12 billion dollars Manufacturing bio-chemicals is a nationwide business in India. The sector contributes hugely to the national economy and is an essential part of it. Manufacturers and exporters are spread all over thecountry. Research facilities have also supported this sector to a large extent
  • 24. 24 6. Pharmaceuticals: No. 2.6 Medicines Value - 11.7 billion dollars Being a research-based industry, the Pharmaceuticals sector in India has seen a huge growth over the past few decades. Major Pharma industries such as; - J. B. Chemicals & Pharmaceuticals Limited, - Suven Life Sciences Limited, - Dr. Reddy's Laboratories, - Aurobindo Pharma, - Luipin, - Ranbaxy, - Sun Pharma, - Zydus Cadila, - Glowchem and Calyx The above industries play a huge role in promoting the sector to the world market
  • 25. 25 7. Cereals: No. 2.7 Cereals Value - 10.1 billion dollars India is one the leading exporters of cereals and the second largest producer of rice. Being an agriculture-driven country, India depends largely on its produce of cereals and so does the importer countries such as; - Iran, - Saudi Arabia, - Indonesia, - UAE and - Bangladesh
  • 26. 26 8. Iron and steel: No. 2.8 Iron and steel industry Value - 9 billion dollars Before the Independence, India used to depend on its import of Iron and Steel. But now, the country has gone through such an industrial growth that it has become forth largest steel producer in the world. Steel tycoons such as; - TISCO, - IISCO, - Bhilai Iron and Steel Centre, - Visweswaraya Iron And Steel Limited This all plays a major role in the Iron and Steel export from India.
  • 27. 27 9. Textile: No. 2.9 Textile industry Value - 9 billion dollars Textile is India's trump card when it comes to exports. India tops the chart in jute production and also holds 63 percent of the global market share in textiles and garments. Need we say more?
  • 28. 28 10. Electronics: No. 2.10 Electrical circuit Value - 9 billion dollars When it comes to manufacturing electronic equipment, India is still seen as an importing country. But, the export part of this sector thrives silently yet largely. India has the third largest pool of electronic scientists and engineers and the domestic demand of electronic goods propels the industry to gorw faster and stronger, making export all the more important.
  • 29. 29 PLAYERS IN THE INDUSTRY
  • 30. 30 1. Oracle Financial Services Software Oracle Financial Services Software Limited (OFSSL) is a world leader in providing IT solutions to the financial services industry. The company has a large exposure to foreign financial companies which contribute 96 per cent of the revenue to the company. The company addresses the entire financial services space through a comprehensive portfolio of products, IT services, consulting and knowledge process outsourcing services with an experience of delivering value-based IT solutions to over 810 financial institutions across 130 countries. The company also has strong alliance and/or implementation relationships with industry leaders such as Hewlett-Packard, IBM, Sun Microsystems and Intel. 2. Opto Circuits (India) Opto Circuits (India) is a technology-based electronics company engaged in design, development, manufacturing, marketing and distribution of medical electronic devices and medical monitoring products. Opto Circuits offers technological advanced medical devices that are proprietary in nature, improve patient safety and care and reduce healthcare costs. It offers a broad range of more than 100 medical devices across 17 clinical categories spread over 12 medical fields. It has sales in 56 countries and operations in India, Germany and the US. Of its total sales, around 95 per cent of the revenue comes from exports while the remaining comes from the domestic markets. 3. Infosys Infosys, the second-largest software making company, generates 94 per cent of the revenue through exports. The major exporting countries are the US (63.9 per cent) and Europe (21.9 per cent) that together generates almost 85 per cent of the export revenues while the rest comes from India (2.2 per cent) and some other countries. The company’s revenue comes from providing various IT products and services catering to sectors such as BFSI, manufacturing, retail, life science, energy and communication services. 4. TCS Tata Consultancy Services, part of the Tata Group that is one of India’s largest industrial conglomerates and most respected brands, is an IT services, business solutions and outsourcing organisation that delivers real results to global businesses, ensuring a level of certainty that no other firm can match.
  • 31. 31 TCS offers a consulting-led integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Model™ (GNDM™), recognised as the benchmark of excellence in software development. Of its total sales, 91 per cent of the revenue comes from exports while the remaining is derived from the domestic markets. 5. Divi’s Lab Divi’s Laboratories is engaged in the manufacture of generic active pharmaceutical ingredients (APIs), custom synthesis of active ingredients and other specialty chemicals such as peptides and nutraceuticals. The company has three multi-purpose manufacturing facilities with a total reactor capacity of 4,500 cubic meters and all support infrastructure such as utilities, environment management and safety systems. The company in a matter of short time has expanded its breadth of operations to provide complete turnkey solutions to the domestic Indian pharmaceutical industry. Of its total sales, more than 90 per cent of the revenue comes from exports while the remaining comes from the domestic markets. 6. Rajesh Exports Rajesh Exports Limited (REL) is the largest gold jewellery manufacturer in the world and also the country’s largest exporter of gold jewellery with a market share of around 40 per cent. Shubh Jewellers is the retail brand of the company. Of the total sales, around 85 per cent of the revenue comes from exports while the remaining is from the domestic markets. REL exports plain gold jewellery and studded gold jewellery mainly to the US, UK, Singapore and the UAE. It is also the only Indian company to be recognised by the Government of India as a ‘Five Star Export House’ in the field of gold jewellery. 7. Tech Mahindra Tech Mahindra provides information technology (IT) services to the telecommunications industry worldwide. Tech Mahindra, with 84.75 per cent exports of its sales in FY11, arrives at number seven in our list. A majority of its stake is owned by Mahindra & Mahindra Limited in partnership with British Telecommunications Plc. Tech Mahindra serves telecom service providers, equipment manufacturers, software vendors and systems integrators. The company recently completed the merger of Mahindra Satyam with itself. This merger has made Tech Mahindra the sixth-largest IT service provider with topline of Rs 5,490 crore and a workforce of 75,000.
  • 32. 32 8. Aban Offshore Aban Offshore provides drilling and oil field services for the offshore exploration and production of hydrocarbons to the oil industry in India and internationally. The company is also involved in wind power generation activities. It owns and operates 15 jack-up offshore drilling rigs, two drill ships, one floating production platform and one jack-up rig and a drill ship on bareboat charter. It also operates 165 wind energy generators. The company earned around 84.39 per cent of its revenues from exports in FY11, making it the eighth in the list. This takes the total export sales to above Rs 1,004 crore. 9. Sesa Goa Goa-based Sesa Goa is India’s largest private producer and exporter of iron ore with operations in Karnataka too. The company produces 18.8 MT of iron ore and receives 80 per cent of its revenue from exports and the rest through domestic sale. At present the company seems to be facing severe problems due to the ban on iron ore mining in Karnataka and the increase in export duty. The iron ore mining ban in Karnataka has stopped the company from producing iron ore and the concerns have now shifted to the Goa mines as an appointed commission has submitted a report with regards to illegal mining taking place in Goa. Sesa Goa has a major mining operation in Goa that almost contributed 80 per cent of the total production of the company in FY11. 10. Dr. Reddy’s Lab Dr. Reddy’s Lab was established in 1984 and is an integrated global pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives. It operates in three segments viz. pharmaceuticals and active ingredients (PSAI), global generics and proprietary products. Their major markets include India, USA, Russia and CIS, Germany, the UK, Venezuela, South Africa, Romania and New Zealand. Of the total sales, around 72 per cent of the revenue comes from exports while the remaining from the domestic markets.
  • 33. 33 No. 3.1 India’s top 10 exporting companies Name Total Sales (FY11) % Of Exports Export Sales Oracle Financial Services Software 2,360.51 96.02 2,266.56 Opto Circuits India 603.2 94.92 572.56 Infosys 25,385 94.38 23,958.36 TCS 29,275 91.08 26,663.67 Divi’s Lab 1,309.71 90.36 1,183.45 Rajesh Exports 20,533.76 85.61 17,578.95 Tech Mahindra 4,965.5 84.75 4,208.26 Aban Offshore 1,190.74 84.39 1,004.87 Sesa Goa 8,221.94 76.39 6,280.74 Dr. Reddy’s Lab 5,188.5 72.23 3,747.65
  • 35. 35 Export distribution channels outline the responsibilities to successfully market and deliver an artisan’s product from their workshop into the hands of the final customer in an export market. Export distribution channels may vary by country. The following is a general summary of the roles and their responsibilities. Traditional export channels As export products move from a producer's workshop to the final customer, they typically move through the following distribution channel Artisan / Producer Exporter (Optional - Export Buying Office) Importer/Wholesaler (Optional - Sales Representative) Retailer Customer No. 4.1 Distribution channel for export Roles and Responsibilities in the Export Distribution Channel Artisan / Producer - manages production appropriate for export demands - develops new products - delivers product on time Exporter - develops promotional and sales materials - markets to international buyers (showroom, trade shows, visits buyers) - communicates with international buyers - current with relevant import/export regulations - access to financing for export orders - arranges internal transportation & international shipping - ensures final quality control - packages and labels orders for export
  • 36. 36 - prepares export documentation - invoices buyer and collects payment Export Buying Office (Optional) - larger scale import buyers often use an Export Buying Office to identify appropriate products and exporters to work with in the country, negotiate orders, provide final quality control and consolidate orders when working with multiple exporters - paid a percentage of the total orders by the importer customer Importer/Wholesaler - pays international shipping costs - imports the goods and pays all import duties and customs clearance fees - arranges internal transportation from port of entry to warehouse - warehouses products until customer orders are taken and shipped - promotes and markets products at trade shows, in catalogues, showrooms or on websites) - packages the product for distribution to retailer - arranges shipping to retail buyer - provides customer service Sales Representative (Optional) - responsible for generating sales in their designated geographic region through personal contact with retail buyers, by maintaining a showroom and by exhibiting at trade shows - paid a commission of sales generated Retailer - purchases the product from the importer/wholesaler - pays for shipping from wholesaler’s warehouse to the retail store - (retail store) maintains retail store, rent, display, staffing, and all associated costs, plus special in-store promotions and advertising for store - (mail order catalogue) prints catalogue and distributes to customer Final consumer - pays sales tax - (mail order catalogue) pays shipping from catalogue warehouse to customer
  • 37. 37 PROCESSING AN EXPORT ORDER You should not be happy merely on receiving an export order. You should first acknowledge the export order, and then proceed to examine carefully in respect of Items Specification Pre-shipment inspection Payment conditions Special packaging Labeling and marketing requirements Shipment and delivery date Marine insurance Documentation requirement etc. If you are satisfied on these aspects, a formal confirmation should be sent to the buyer, otherwise clarification should be sought from the buyer before confirming the order. After confirmation of the export order immediate steps should be taken for procurement/manufacture of the export goods. In the meanwhile, you should proceed to enter into a formal export contract with the overseas buyer. Before accepting any order necessary homework should have been done as to availability of the production capacity, raw material e.t.c. It would be in the interest of the exporter to look into entering into forward contract to safeguard against exchange rate fluctuations. Ensure that the mode of payment is also agreed upon. In case of shipment against letter of credit, the buyer should be advised to open the credit well in advance before effecting the shipment.
  • 38. 38 KEY ISSUES AND CURRENT TRENDS
  • 39. 39 The Economic Crisis and the Emergence of a New Governance Architecture In big or small economies, ranging from OECD economies to single commodity exporting small economies, the effect of the crisis has been devastating. Of course, while no economy has been spared, it is developing countries, particularly the least developed amongst them that have more acutely felt its full impact. These are countries whose ability to the fight the crisis is more limited, given their limited financial resources — they cannot afford multibillion dollar stimulus packages to bail out struggling enterprises or expand their social safety nets to help those that lost their jobs — and therefore are very much at the mercy of the global economic system for their recovery. We now also have data that confirms the negative impact that the crisis has had in the achievement by the Least Developed Countries of their development targets in the UN’s Millennium Development Goals. The effects of the economic crisis have been compounded by the previous crisis that came before it, like the food and energy prices crisis. All this in an ambience where the effects of climate change are already starting to be felt, threatening the poorer and most vulnerable populations. The family of the International Organisations, and the WTO, have taken steps to help minimise the impact of the crisis, bearing in mind the high trade dependence of many developing countries economies. 1) The WTO has worked to keep trade flowing, by mobilising efforts into trade finance. Second, it has helped Members fight against protectionist pressures by ensuring transparency in the measures taken by them to respond to the crisis. Thirdly, it has continued to mobilise international support towards developing countries to boost their productive and trade capacity through increased aid for trade. 2) What this radar shows so far is an increase in “low-intensity” protectionism; in other words, a large number of measures whose intensity has so far remained constrained. In fact the number of trade-restricting measures applied by governments has actually gone down in late 2009 and early 2010. But there should be no complacency. Rising unemployment will continue to usherin the inevitable protectionist pressures, and due to its "lag" with other economic indicators it may continue to rise in 2010 and in all probability 2011. Most prognostications now suggest that we will get small positive numbers for trade growth in
  • 40. 40 2010. The global recovery is proceeding at varying speed in different regions, so again we cannot let down our guard. Recovery has been tepid in advanced economies, but more solid in most emerging and developing countries. The latest projections from the IMF’s World Economic Outlook expect world growth to be around 4.2% in 2010 and 4.3% in 2011. Among advanced economies, the United States is off to a better start (3.1% in 2010) than Japan (1.9%) and the euro zone (1%). By now you probably all have read in the papers that Australia was the only advanced economy that posted positive growth numbers in 2009, this growth is expected to increase in 2010 to 3% and to 3.5% in 2011. Among the developing world, Asia is leading the recovery (8%), while many European and CIS countries are lagging behind (2%). This multi-speed recovery is expected to continue in 2011 with growth of 4.3% globally. Specifically in the area of international trade things are also starting to look better. The 2009 figures were shocking with a 12% contraction in the volume of world merchandise trade, the largest drop in more than 70 years and more than was predicted by most economists. Services trade also suffered with a decline of 13% in 2009. Thankfully, we now know that most of the fall in international trade is attributable to a collapse in demand, accentuated by a shortage of trade finance, and not protectionist measures. For 2010, provided there are no further major shocks in the global economy, both trade in goods and in services should start to grow again but we will not return to pre-crisis levels this year. The WTO Secretariat estimates that world exports in volume terms will grow by 9.5%, this year, while developed economies’ exports will expand 7.5% and the rest of the world (developing economies plus the CIS) will advance 11%. This projection assumed a global GDP growth of 2.9% in 2010, but as we have seen the IMF has revised their figures to 4.2%, so hopefully trade volumes will also be higher than expected. Thus, the current crisis will end but it will have changed the world, and against the background of a world already in an important phase of transformation, these new realities will challenge the ingenuity and commitment of policy-makers across the globe. The crisis, however, has shown that multilateral cooperation is needed more than ever before,
  • 41. 41 including in trade, and in that connection the completion of the Doha Round should be a priority. Countries must act collectively to send the right signals and establish a favourable trade environment for a sustainable recovery for all. Moreover, the crisis has also shown the value of the Multilateral Trading System as insurance against protectionism, completing the Doha Round would serve increase the coverage of this insurance policy. Another consequence of the crisis is that it has exposed the limitations of global governance to tackle problems requiring quick and effective global solutions. This illustrates the need for a new architecture of governance and of global cooperation to emerge, providing a framework for effective multilateral engagement. One cannot ignore the significance of the establishment of the G-20 as the gravity centre in the provision of political leadership and policy direction. And I note that the G-20 is only the centre of gravity because the rest of the constellation of countries represented in the United Nations, or the G-192, needs to play its role also as a forum providing accountability of the actions and measures of the G-20 and the international 3) organisations acting in a coherent manner providing their expertise and specialized inputs. Acting in this manner is crucial if we want to improve legitimacy, efficiency and coherence. In the WTO we are very much aware that we now face new challenges, including managing the relationship between trade and climate change. This is an important issue that we must attend to, nevertheless, as they say in English "first things first", we must complete the current Doha Round. Not just because a successful conclusion of the Doha Round offers an attractive global stimulus package and an important signal to the world economy. It is also that systemic integrity demands that we finish what we started. The WTO cannot credibly embrace new challenges without settling the current agenda. Moreover, the Doha Round also has a role to play in tackling issues of climate change. Let us all recall that the WTO has an environmental negotiation taking place as we speak. Part of the Doha Round of trade negotiations includes a chapter to accelerate market opening for
  • 42. 42 environmentally friendly goods and services. Many climate-friendly goods and services are being penalized upon importation, rather than encouraged, and this is a situation that needs to be changed. A successful conclusion of the WTO negotiations will help improve access to climate-friendly goods and technologies for developed and developing countries alike. The Multilateral Trading System and Helping the Bottom Billion Another issue which is of pressing relevance to the WTO and the multilateral community is assisting the poorest nations in our midst, or the bottom billion which is the term that has been coined by Professor Collier of Oxford University. For these countries climate change is and will be an enormous challenge, but it also opens new opportunities. As Professor Collier has argued, the bottom billion have to a large extent been left behind by the train of globalization. This need not be this way forever; climate change brings about a paradigm shift in the world economy. As I said before, climate change poses daunting development challenges to developing countries but it also calls for new ways of doing business, new goods and services for growth to be sustainable. These new opportunities will be accessible to the most marginalized countries, including those in the bottom billion. But taking advantage of these opportunities will not be easy, since at the moment there is a considerable problem of access to technology in the least developed countries. Indeed, more research is needed on how trade and trade opening contribute to the development and diffusion of climate-friendly technology and what instruments can be used to ensure that developing countries can acquire the technologies necessary to develop the marketable products and services in this area. Since it is predominantly private companies that retain ownership of various technologies, it is relevant to identify ways within the private sector, such as foreign direct investment, licence or royalty agreements and different forms of cooperation arrangements, which can facilitate technology transfer. Moreover, bilateral and multilateral technical assistance programmes can play a key role in technology transfer, and this also includes the Aid for Trade initiative.
  • 43. 43 4) Countries in the bottom billion also face the challenge of increased competition because of globalization, in particular with more advanced developing countries. The development and utilization of productive capacities should be placed at the heart of national and international policies to combat poverty. Export supply capability is only one aspect of this. It is important to diversify and move up the value chain. Therefore, there is a need to have domestic poverty reduction and economic growth strategies coupled with a specific set of international support measures, including creation of a conducive environment leading to value-addition, employment creation, technology and knowledge transfer. Let me now give another example of how the WTO and in particular the Doha Round can contribute to improve the situation in the bottom billion. Professor Collier has rightly identified the landlocked developing countries as suffering from a particular disadvantage or what he calls a "trap". He makes the argument that one of the particular problems landlocked developing countries face is that they do not have the leverage to impose measures on neighbouring countries to help them reduce transport costs. One of the areas where we have been able to make the most progress in the Doha Round is that of Trade Facilitation. A WTO Agreement on Trade Facilitation with ambitious and binding rules will give the landlocked developing countries the leverage they lack. Now, due to the principle under which these negotiations operate, which is that of a single undertaking, a swift conclusion to the round remains the best means to capture the progress we have made in the trade facilitation area and deliver in this very important issue for some of the countries in the bottom billion. The landlocked developing countries provide another example of how the work of the WTO and the other multilateral institutions is important for the bottom billion; this is the area of Aid for Trade in infrastructure development. The other main problem of being landlocked is that the transport links necessary to get your goods to your export markets are not entirely under your control. One of the conclusions from the 2nd Global Review on Aid for Trade in July 2009 was
  • 44. 44 the need to pay particular attention to the regional dimension and move from commitment to implementation of projects such as the North-South corridor linking 8 countries of Eastern and Southern Africa – of which 4 are landlocked. These types of regional projects will contribute greatly to ensure that landlocked-country goods are able to move swiftly, not just from the factory to the border but beyond to ports in the transit countries, significantly reducing transport costs and increasing competitiveness. Now, I am not saying that all of the problems constraining trade integration of the bottom billion are going to be solved through Aid for Trade interventions. Although infrastructure and supply side capacity are important, one cannot put all eggs in one basket. There is the need to develop markets for the bottom billion that are closer to home. In this area, although there has been an enormous proliferation of regional trade arrangements, locking-in the liberalization of markets at the multilateral level is of great importance. Hence, concluding the DDA will create new trade opportunities for developing countries not just in the markets of the developed countries, but also in the markets of other developing countries. Trade and Climate Change, What Can the MTS Do? Let me now turn to the specific issue of trade and climate change. The climate crisis that we are witnessing today is the single biggest challenge to civilization as we know it. Responding to that crisis is urgent, and is a top priority on the international agenda. Because that crisis is so serious, responding to it requires that we unleash all our resourcefulness and creativity. The relationship between trade and climate change must not exclusively be viewed through a negative prism, there is tremendous scope for complementarity between a climate agenda and a trade agenda. Climate Change intersects with international trade in a multitude of different ways. While the WTO does not have rules that are specific to energy or to climate change per se, there is no doubt that the rules of the multilateral trading system as a whole are indeed relevant to climate change.
  • 45. 45 5) There are many different perceptions of what the trading system ought to do on climate change. While some would like to see the trading system curb its own “carbon footprint,” through the greenhouse gas emissions it generates in the course of the production, 6) international transportation, and consumption of traded goods and services; others are more interested in how they can preserve their own competitiveness under a stringent climate change mitigation regime. More specifically, they would like to impose an economic cost on imported products at their borders equivalent to the one they suffer in curbing their own emissions. In other words, a “levelling of the playing field” of sorts, based on an importing country's perception of how that field may best be levelled. Naturally, there are many different ideas floating on what these “offsetting” measures may be, with most of the discussion focussing on countries' most trade-exposed, energy-intensive, economic sectors like iron and steel, and aluminium. For instance, while some policy-makers are considering the imposition of domestic carbon taxes, with adjustment for those taxes at their border; others are contemplating emission cap-and-trade systems, with an obligation upon importers to participate in those systems. Yet another set of policy-makers would prefer to focus on what is most immediately “deliverable” by the trading system in terms of the fight against climate change. And by this, they mean the opening of markets to environmental goods and services; in particular to those that are relevant to climate change, through the ongoing Doha Round of trade negotiations, which I already talked about. These are but some of the ways in which some would position the multilateral trading system on the issue of climate change. Personally, I am of the firm conviction that the relationship between international trade — and indeed the WTO — and climate change, would be best defined by a consensual comprehensive international accord on climate change that
  • 46. 46 successfully embraces all major players. Unfortunately this was not fully achieved in the Copenhagen summit. So, until a truly global consensus emerges on how best to tackle the issue of climate change, WTO Members will continue to hold different views on what the multilateral trading system can and must do on this subject, and may act in accordance to their views. However, the more countries move toward a multilateral framework on climate change and border measures, the more unilateral measures will be difficult to justify. The following points highlight the seven main problems of International business.The problems are: 1. Different Trade Patterns 2. Regulatory Measures 3. Lop Sided Development of Developing Countries 4. Economic Unions 5. National Policy of Development 6. Procedural Difficulties
  • 47. 47 7. Other Problems. International Business Problem # 1. Different Trade Patterns: International business has to deal with the business patterns among the various countries of the world. It has to take into account these business policies of various countries which govern their imports and exports. These policies and practices impose certain constraints and restrictions on international business. International Business Problem # 2. Regulatory Measures: Every country wants to export its surplus natural resources, agricultural produce and manufactured goods to the extent, it can and import only these goods and products which are not produced or manufactured within the country. For this purpose regulatory measures like tariff barriers (custom duties) non-tariff barriers, quota restrictions, foreign exchange restrictions, technological and administrative regulations, consulter for-malities, state trading and preferential arrangements, trade agreements and joint commis-sions etc. Come in the way of free trade and unfettered flow of foreign business. International Business Problem # 3. Lop Sided Development of Developing Countries: Developed counters are equipped with sophisticated, technologies capable of transforming raw materials into finished goods on a large scale. While developing countries on the other-hand lack technological knowledge and latest equipment. It leads to the lop sided development in the international business. International Business Problem # 4. Economic Unions:
  • 48. 48 There is an increasing tendency among nations to form small groups of Economic Unions which help them to negotiate terms for the business with other countries. International Business Problem # 5. National Policy of Development: The country desirous of achieving self-sufficiency, follows a strategy of importing capital goods equipped with latest and sophisticated technology and restricting imports of less important consumer goods with a view to lowering down its import bill. International Business Problem # 6. Procedural Difficulties: Different countries have evolved different procedures, practices and documents in order to regulate the export trade. Some of these such as foreign exchange control regulations and others have been formulated after keeping in view the national objectives and have posed certain procedural problems to exporters and importers. International Business Problem # 7. Other Problems: Apart from the problems written above there are many other internal difficulties which restrict our export business and consequently affect the foreign exchange earnings. They are: (i) Business and industry have not recognised the importance of international business, (ii) Inflation, high prices and black marketing are starting us in the face. If the situation persists it may put our price level beyond the means of our customers abroad, no matter how badly they need our export,
  • 49. 49 Intense competition among countries, industries, and firms on a global level is a recent development owed to the confluence of several major trends. Among these trends are: 1) Forced Dynamism: International trade is forced to succumb to trends that shape the global political, cultural, and economic environment. International trade is a complex topic, because the environment it operates in is constantly changing. First, businesses are constantly pushing the frontiers of economic growth, technology, culture, and politics which also change the surrounding global society and global economic context. Secondly, factors external to international trade (e.g., developments in science and information technology) are constantly forcing international trade to change how they operate. 2) Cooperation among Countries: Countries cooperate with each other in thousands of ways through international organisations, treaties, and consultations. Such cooperation generally encourages the globalization of business by eliminating restrictions on it and by outlining frameworks that reduce uncertainties about what companies will and will not be allowed to do. Countries cooperate: i) To gain reciprocal advantages, ii) To attack problems they cannot solve alone, and iii) To deal with concerns that lie outside anyone’s territory. Agreements on a variety of commercially related activities, such as transportation and trade, allow nations to gain reciprocal advantages. For example, groups of countries have agreed to allow foreign airlines to land in and fly over their territories, such as Canada’s and Russia’s agreements commencing in 2001 to allow polar over flights that will save five hours between New York and Hong Kong. Groups of countries have also agreed to protect the property of foreign-owned companies and to permit foreign-made goods and services to enter their territories with fewer restrictions. In addition, countries cooperate on problems they cannot solve alone, such as by coordinating national eco-nomic programs (including interest rates) so that global economic conditions are minimally disrupted, and by restricting imports of certain products to protect endangered species.
  • 50. 50 Finally, countries set agreements on how to commercially exploit areas outside any of their territories. These include outer space (such as on the transmission of television programs), non- coastal areas of oceans and seas (such as on exploitation of minerals), and Antarctica (for example, limits on fishing within its coastal waters). 3) Liberalization of Cross-border Movements: Every country restricts the movement across its borders of goods and services as well as of the resources, such as workers and capital, to produce them. Such restrictions make international trade cumbersome; further, because the restrictions may change at any time, the ability to sustain international trade is always uncertain. However, governments today impose fewer restrictions on cross-border movements than they did a decade or two ago, allowing companies to better take advantage of international opportunities. Governments have decreased restrictions because they believe that: i) So-called open economies (having very few international restrictions) will give consumers better access to a greater variety of goods and services at lower prices, ii) Producers will become more efficient by competing against foreign companies, and iii) If they reduce their own restrictions, other countries will do the same. 4) Transfer of Technology: Technology transfer is the process by which commercial technology is disseminated. This will take the form of a technology transfer transaction, which may or may not be a legally binding contract, but which will involve the communication, by the transferor, of the relevant knowledge to the recipient. It also includes non-commercial technology transfers, such as those found in international cooperation agreements between developed and developing states. Such agreements may relate to infrastructure or agricultural development, or to international; cooperation in the fields of research, education, employment or transport. 5) Growth in Emerging Markets: The growth of emerging markets (e.g., India, China, Brazil, and other parts of Asia and South America especially) has impacted international trade in every way. The emerging markets have simultaneously increased the potential size and worth of current major international trade while also facilitating the emergence of a whole new generation of innovative companies. According to “A special report on innovation in emerging markets” by The Economist magazine, “The emerging world, long a source of cheap la, now rivals the rich countries for business innovation”.
  • 52. 52 PESTEL Analysis stands for, No. 6.1 PESTEL analysis P- Political analysis E- Economic analysis S- Socio -culture analysis T- Technological analysis E- Environmental analysis L- Legal analysis.
  • 53. 53 POLITICAL ANALYSIS Political analysis includes all the political factors and factors related to government which can influence the business. For this industry the political factor that affects is any changes in central or state government which may lead to changes in export or import of goods which will also affect the profitability and export of the country. Any such changes in export import policy directly affect the companies who are dealing in export and import of goods. Thereby, Import and export companies will indirectly affected by it. ECONOMICAL ANALYSIS Economic factors have a significant impact on how an organization does business and also how profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation, disposable income of consumers and businesses and so on. These factors can be further broken down into macro-economical and micro-economical factors. Macro-economical factors deal with the management of demand in any given economy. Governments use interest rate control, taxation policy and government expenditure as their main mechanisms they use for this. The recent actions of demonetization have affected the industry a lot, as due to it the owners of Import and export business faced issues for exporting and importing of goods, ultimately affects the activities of exim business. SOCIO - CULTURE ANALYSIS The socio culture is one of the important aspect in the analysis of the industry it describes the impact of the particular industry on the society. This has relatively less impact on industry as the ultimate function of import and export business is to purchase and sell of goods in foreign countries.
  • 54. 54 TECHNICAL ANALYSIS The technology changes speedily and it has a great impact on the industry. In exim the highest use of technology is seen in importing such technology for selling such advanced technological product in the country and earn more profit. There are few importers who import technology for selling at their own risk and therefore any major change in the industry in context to technology is not expected easily, as the set up technology is having accurate measures with limited flaws. The only thing that can change technology is overcoming of such minor flaws. ENVIRONMENTAL ANALYSIS Environmental analysis includes the factors related to environment and nature that affect the industry. Import and export business works on the proportion of the product in which they are dealing, there are many importers as well as exporters who deals in the seasonal products like :- rice, cotton, wheat, groundnuts, mango, etc.... If due to drought or any other reason the growth of such products is reduced then it will directly affect the business. LEGAL ANALYSIS Legal factors include - health and safety, equal opportunities, advertising standards, consumer rights and laws, product labeling and product safety. It is clear that companies need to know what is legal and what is not legal in order to trade successfully. In thisbusiness, the legal area plays a crucial role. As the Import and export company must be authorized and authentic to provide its services. If a company conducts its activities which are not accepted by law or any unauthorized activities adversely affects the export – import business. Therefore, the involvement of law is very much vital.
  • 56. 56 S. No . Name Of Products Jan-Dec- 2014 (Value In USD Million) Jan-Dec- 2015 (Value In USD Million) Jan-Oct- 2015 (Value In USD Million) Jan-Oct- 2016 (Value In USD Million) Growt h %in USD 1 India Export of Petroleum Oils And Oils Obtained From Bituminous Minerals, Other Than Crude; Preparations Not Elsewhere Specified Or Included, Containing By Weight 70% Or More Of Petroleum Oils Or Of Oils Obtained From Bituminous Minerals, These Oils Being The Basic Cons 14,089.59 6,549.65 5,822.16 4,690.38 -19.44 2 India Export of Medicaments (excluding Goods Of Heading 3002, 3005 Or 3006) Consisting Of Mixed Or Unmixed Products For Therapeutic Or Prophylactic Uses, Put Up In Measured Doses (including Those In The Form Of Transdermal Administration Systems) Or In Forms Or Packings 9,240.24 9,956.29 8,371.60 8,245.52 -1.51 3 India Export of Rice 7,459.90 6,029.98 5,229.16 4,527.46 -13.42 4 India Export of Articles Of Jewellery And Parts Thereof, Of Precious Metal Or Of Metal Clad With Precious Metal - Of 6,739.90 7,032.54 6,019.96 5,470.92 -9.12
  • 57. 57 Precious Metal Whether Or Not Plated Or Clad With Precious Metal: 5 India Export of Motor Cars And Other Motor Vehicles Principally Designed For The Transport Of Persons (other Than Those Of Heading 8702), Including Station Wagons And Racing Cars 5,850.03 5,455.48 4,509.91 5,160.94 14.44 6 India Export of Meat of bovine animals, frozen 4,658.49 3,993.86 3,121.94 3,094.97 -0.86 7 India Export of Cotton Yarn (other Than Sewing Thread), Containing 85% Or More By Weight Of Cotton, Not Put Up For Retail Sale - Single Yarn, Of Uncombed Fibres : 3,987.60 3,653.31 3,093.11 2,356.51 -23.81 8 India Export of Crustaceans, Whether In Shell Or Not, Live, Fresh, Chilled, Frozen, Dried, Salted Or In Brine; Smoked Crustaceans, Whether In Shell Or Not, Whether Or Not Cooked Before Or During The Smoking Process; Crustaceans, In Shell, Cooked By Steaming Or By Boiling 3,801.20 3,233.60 2,702.36 3,043.09 12.61
  • 58. 58 9 India Export of Light- vessels, Fire-floats, Dredgers, Floating Cranes, And Other Vessels The Navigability Of Which Is Subsidiary To Their Main Function; Floating Docks; Floating Or Submersible Drilling Or Production Platforms 3,775.47 3,155.15 2,151.76 1,641.93 -23.69 10 India Export of T-shirts, singlets and other vests, knitted or crocheted 2,689.22 2,860.13 2,373.14 2,333.06 -1.69 11 India Export of Cotton, not carded or combed 2,637.21 1,789.72 1,077.83 783.86 -27.27 12 India Export of Women’s Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (other Than Swimwear) -- -- Suits : 2,535.64 2,692.30 2,340.19 2,148.54 -8.19 13 India Export of Refined Copper And Copper Alloys, Unwrought - Refined Copper : 2,453.38 1,901.71 1,646.33 1,102.82 -33.01 14 India Export of Synthetic Organic Colouring Matter, Whether Or Not Chemically Defined; Preparations As Specified In Note 3 To This Chapter Based On Synthetic Organic 2,123.82 1,828.16 1,560.15 1,518.02 -2.7
  • 59. 59 Colouring Matter; Synthetic Organic Products Of A Kind Used As 15 India Export of Vegetable Saps And Extracts;Pectic Substances, PectinatesAnd Pectates;Agar-agar And Other Mucilages AndThickeners, Products - Vegetable Saps And Extracts : 1,960.26 902.79 782.93 515.88 -34.11 16 India Export of Flat-rolled Products Of Iron Or Non- alloy Steel, Of A Width Of 600 Mm Or More, Clad, Plated Or Coated - Plated Or Coated With Tin : 1,922.56 1,276.28 1,141.16 1,031.12 -9.64 17 India Export of Footwear With Outer Soles Of Rubber, Plastics, Leather Or Composition Leather And Uppers Of Leather - Sports Footwear : 1,909.78 1,808.99 1,533.79 1,475.00 -3.83 18 India Export of Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; 1,799.82 1,755.27 1,475.53 1,266.64 -14.16 19 India Export of Insecticides, Rodenticides, Fungicides, Herbicides, Anti-sprouting Products And Plant- growth Regulators, 1,757.05 1,741.95 1,401.94 1,449.72 3.41
  • 60. 60 Disinfectants And Similar Products, Put Up In Forms Or Packings For Retail Sale Or As Preparations Or Articles (for Example, Sulphur- treated Bands, etc...) 20 India Export of Other Furnishing Articles, Excluding Those Of Heading 9404 - Bedspreads : 1,567.83 1,611.72 1,369.07 1,261.70 -7.84 21 India Export of Parts of goods of heading 8801 or 8802 1,546.48 1,942.18 1,549.62 1,843.96 18.99 22 India Export of Women’s or girls’ blouses, shirts and shirt-blouses 1,541.21 1,639.98 1,387.72 1,126.90 -18.8 23 India Export of Heterocyclic compounds with nitrogen Hetero- atom(s) Only-Compounds Containing An Unfused Pyrazole Ring(whether Or NotHydrogenated) In The Structure : 1,516.44 1,515.65 1,281.14 1,335.25 4.22 24 India Export of Ferro- alloys-Ferro-manganese : 1,455.29 1,160.73 992.47 754.10 -24.02 25 India Export of New pneumatic tyres, of rubber 1,391.44 1,151.75 973.00 1,003.08 3.09 26 India Export of Bed linen, table linen, toilet linen and kitchen linen 1,349.09 1,358.23 1,133.89 1,251.89 10.41 27 India Export of Unwrought aluminium 1,344.58 1,468.80 1,202.38 1,253.02 4.21
  • 61. 61 28 India Export of Unused Postage, Revenue Or Similar Stamps Of Current Or New Issue In The Country In Which They Have, Or Will Have, A Recognized Face Value; Stamp-impressed Paper; Bank Notes; Cheque Forms; Stock, Share Or Bond Certificates And Similar Documents Of Title 1,322.76 1,731.72 1,404.08 1,261.13 -10.18 29 India Export of Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics 1,313.20 695.71 609.62 521.25 -14.5 30 India Export of Flat-rolled Products Of Iron Or Non- alloy Steel, Of A Width Of 600 Mm Or More, Hot- Rolled, Not Clad, Plated Or Coated 1,287.34 708.90 683.02 560.28 -17.97 31 India Export of Trunks, Suit-cases, Vanity-cases, Executive- Cases, Brief- cases, School Satchels, Spectacle Cases, Binocular Cases, Camera Cases, Musical Instrument Cases, Gun Cases, Holsters And Similar Containers; Travelling-bags, Insulated 1,218.04 1,234.25 1,036.33 1,032.69 -0.35
  • 62. 62 32 India Export of Carboys, Bottles, Flasks, Jars, Pots, Phials, Ampoules And Other Containers, Of Glass, Of A Kind Used For The Conveyance Or Packing Of Goods; Preserving Jars Of Glass; Stoppers, Lids And Other Closures, Of Glass 1,194.52 962.96 934.72 149.25 -84.03 33 India Export of Woven Fabrics Of Synthetic Filament Yarn, Including Woven Fabrics Obtained From Materials Of Heading 5404 1,190.28 1,064.79 935.10 770.45 -17.61 34 India Export of Taps, Cocks, Valves And Similar Appliances For Pipes, Boiler Shells, Tanks, Vats Or The Like, Including Pressure- reducing Valves 1,121.11 1,149.24 982.20 901.78 -8.19 35 India Export of Men’s Or Boys’ Suits, Ensembles, Jackets, Blazers, Trousers, Bib And Brace Oveb Ralls, Breeches And Shorts (other Than Swimwear) ---- Suits : 1,109.17 1,153.51 966.89 1,001.15 3.54 36 India Export of Men’s or boys’ shirts 1,106.85 1,153.64 972.87 1,054.09 8.35 37 India Export of Other cast articles of iron or steel 1,092.60 1,023.09 877.04 746.16 -14.9
  • 63. 63 38 India Export of Cane Or Beet Sugar And Chemically Pure Sucrose, In Solid Form - Raw Sugar Not Containing Added Flavouring Or Colouring Matter : 1,082.87 1,059.19 786.85 984.08 25.07 39 India Export of Other organic compounds 1,082.14 1,170.34 998.96 889.70 -10.9 40 India Export of Synthetic filament yarn (other than sewing thread), not put up for retail sale, including syntheric 1,044.79 1,030.94 886.91 780.41 -12.1 41 India Export of Worked Monumental Or Building Stone (except Slate) And Articles Thereof, Other Than Goods Of Heading 6801; Mosaic Cubes And The Like, Of Natural Stone (including Slate), Whether Or Not On A Backing; Artificially Coloured Granules, 1,038.58 977.48 833.09 834.12 0.12 42 India Export of Articles of apparel and clothing accessories, of leather 1,031.71 976.92 833.18 755.76 -9.29 43 India Export of Track Suits, Ski Suits And Swimwear; Other Garments---Swimwear 992.33 1,096.16 954.39 1,002.89 5.08 44 India Export of Woven Fabrics Of Cotton, Containing 85% Or More 961.98 1,011.16 848.75 819.59 -3.44
  • 64. 64 By Weight Of Cotton, Weighing Not More Than 200 G/m2 - Unbleached : 45 India Export of Coconuts, Brazil Nuts And Cashew Nuts, Fresh Or Dried, Whether Or Not Shelled Or Peeled - Coconuts : 933.53 880.27 727.37 641.53 -11.8 46 India Export of Wheat 926.70 54.12 51.34 12.34 -75.96 47 India Export of Screws, Bolts, Nuts, Coach- screws, Screw Hooks, Rivets, Cotters, Cotter- pins, Washers (including Spring Washers)and Similar Articles, Of Iron Or Steel - Threaded Articles : 915.99 419.37 363.06 283.91 -21.8 48 India Export of Other Articles Of Iron Or Steel - Forged Or Stamped, But Not Further Worked : 907.17 933.56 788.62 763.41 -3.2 No. 7.1 Products which were exported by India during 2014, 2015 and 2016
  • 65. 65 INDUSTRY ANALYSIS: MICHEL PORTER’S FIVE FORCE MODEL
  • 66. 66 No. 8.1 Michael Porter’s 5 force model RIVALRY AMONG COMPETITORS What is important here is the capabilities of competitors. In import- export business there are many market players and therefore the competition is very tuff. The competitors are almost equal but, the deal in different products and there are many companies which provide same product but at a different prices. BARGAINING POWER OF BUYERS The buyer of product always desires to get assured about its quality by authenticated quality assessment. The quality assessment, inspection and testing of products and its samples will guide the buyers for its proper use. So, buyer cannot bargain or compromise in getting services from service provider.
  • 67. 67 BARGAINING POWER OF SUPPLIERS Exporter of any product always desire to export their product in large quantity. They may try to negotiate with exporter and they may also get products at low rate but they will never accept poor quality. Thus, bargaining power of suppliers is relatively moderate. THREAT OF NEW ENTRANTS Since many years there are many new entrant in the industry. There is a huge threat of new entrants because it is the business which will lead to huge profit if the company is trustable and provide good quality product. If the company gets maximum orders from the foreign countries, that means the company is genuine and trustworthy.
  • 69. 69 1. ONLINE IMPORTATION You must have heard about Alibaba.com, Aliexpress.com, DHgate.com, IPmart.com and several other online based marketplaces. All these websites listed above deal with online trading as they ship to other part of the world. You make your order and payment online while they ship your product to your provided address. You are also to pay for the cost of shipping. The internet has brought down the walls which used to restrict access to manufacturers located thousands of kilometers away. Improvements in transportation and logistics now make it possible for small businesses with little capital to import smaller amounts of stock at low shipping costs. The beauty of this business is that with little start-up capital and access to the internet you can start earning a good income. 2. IMPORT/EXPORT BROKERAGE An import-export agent or broker, also known as a trade agent or customs broker, is an individual or a company that sends and receives goods to and from different countries. Import-export agents or brokers work with both importers and exporters by helping them prepare necessary documents for exporting or importing their products. They also help their clients establish connections in foreign companies. So, they work on both ends of import-export deals that of the origin and that of the destination. To become an import-export broker, you must understand the basic jargon of import-export law, currency transactions, trade policies, and everything else that goes into making profitable import- export deals. 3. CLEARING AND FORWARDING BUSINESS If you have the logistic and business management skills, as well as an entrepreneurial spirit, you may just be fit to learn how to start a freight brokerage business. As a freight brokerage company, it is your duty to act as a mediator between shippers and client companies who need their services and facilities. Their tasks also involve clearing your goods from the ports, paying up your duties and taxes, transporting your consignment to your desired destination, etc. Sometimes, freight brokers are referred to as clearing and forwarding agents. There’s much money to be made as a clearing and forwarding agent. The sweetest part is that this business can be done anywhere, in any country; as long as international trade still exists and your country is a partaker, you are in business.
  • 70. 70 4. TIMBER EXPORTATION The construction and furniture sectors all over the world today cannot do without the use of timber, but what is important to you as an entrepreneur is to identify the markets for these products while connecting the timber producing nations to the market, even though very stressful and energy sapping, the pain is always worth it. 5. MANUFACTURERS REPRESENTATIVE If you are specialized in a certain industry, you can very well go to an oversea manufacturer and ask to represent them in the countries of your choice. A representative has the edge because you are the expert in the industry or a certain market. For example, if you are an expert in the wooden furniture business and you have been selling in the western US region, you have the great opportunity of going to a Chinese furniture maker and asking to be a representative of their western US region. Most of the manufacturers love people like you because you are their free labor (no base, only commission) to help them get into the market. It’s a win-win situation for both you and the manufacturer. 6. SEAFOOD IMPORTATION Tons of seafood, such as fish, crustaceans, mollusks, and so on are consumed on a daily basis. Ironically, however, indigenous suppliers cannot cater to the huge demand for these products, leaving open a window of opportunities for importers of seafood. While there are more-than- countable import and export opportunities that you can tap from, you would hardly go wrong with seafood importation.
  • 71. 71 7. ONLINE EXPORT/IMPORT DIRECTORY Publishing a biannual import/export opportunities directory in printed and electronic format has the potential to make you rich, as millions of budding entrepreneurs worldwide are constantly on the lookout for income and business opportunities. Simply create an import/export directory that features information about worldwide manufacturers, wholesalers and agents that are seeking to expand their product lines into foreign countries and new markets, or individuals or companies that are seeking to import particular products into their regions. Charging a fee to be listed in the directory, as well as selling the directories to people who are seeking this type of valuable and potentially profitable information and contact sources would earn revenue for the business. 8. DISTRIBUTION WAREHOUSING Starting a warehousing and distribution service means you can act as a warehouse, shipping and receiving agent for as many as 20 or 30 different companies. This business venture does require a great deal of research and investment capital. However, with careful planning and exceptional organizational skills, this type of business venture is capable of creating a six-figure income per year, all within a very short period of time for the enterprising entrepreneur. 9. AGRO-PRODUCTS EXPORTATION Africa and many developing economies are blessed with a lot of food and natural resources; and most of these natural resources are raw materials needed for the production of some finished products. Every day, tons of raw materials and food products leave the shores to countries such as India, Vietnam, China, USA, UK, Brazil, etc; yet, the demand is never met. You can become an exporter by simply registering with the appropriate government agency and decide on the specific product you wish to export. Examples of products highly in demand are Chili pepper, Kola nuts, Bitter Kola, Cassava flakes (Garri), Cocoa, Groundnut, Yam flour, Cashew nuts, etc. 10.EXPORT TRADING COMPANY While an EMC has merchandise to sell and is using its energies to seek out buyers, an ETC attacks the other side of the trading coin. It identifies what foreign buyers want to spend their money on and then hunts down domestic sources willing to export. An ETC sometimes takes title to the goods and sometimes works on a commission basis.
  • 72. 72 11.CLOTHING IMPORTATION Clothing is another basic need of man. Regardless of the economy, people must wear clothes and this includes shoes, bags, underwear, perfumes, etc. Now there is a fast growing trend now and that is “Used clothes” or “Recycled clothes.” Since the economy is getting tougher and there’s need to be clothed, the masses have resolved to buying used clothes rather than new ones. Still yet, there is a market for new clothes; for men, women, and kids. You can source your materials from China, Hong Kong, Italy, France, Dubai, India, etc. 12.SMART PHONES IMPORTATION Although smart phones may appear to be “every day” items in markets such as the U.S., they are just beginning to scratch the surface in many developing nations. The cost to produce this type of technology is extremely inexpensive – especially if you can find export opportunities in China for these items. 13.USED ELECTRONICS IMPORTATION While electronics are certainly hot sellers, it is actually the accessories that go along with the latest smart phones, laptops, and other gadgets that are highly profitable items. Many of these items can be purchased wholesale for pennies on the dollar and then resold to the end user at retail price either online or through traditional brick and mortar outlets. 14.HOUSEHOLD ITEMS IMPORTATION Home accessories are another area that is booming when it comes to profitable import export opportunities. This can mean anything from picture frames to candle holders to soap dispensers – and everything in between. Most items for the home are easy to manufacture and can be shipped and sold in wholesale packages.
  • 73. 73 15.SHIPPING SERVICES With the increasing demand for shipping services that offer reasonable prices and promise convenience, speed and reliability, no other time could be better than now for taking a plunge into the shipping business. The industry is growing and rapidly changing—thanks to the increasing dependence on online shopping. However, you must realize the fact that the maritime / shipping industry is highly capital intensive and competitive. Secondly, starting your own shipping company requires that you have in-depth knowledge of import and export procedures as well as the shipping, container, and logistics industries in your country. You also need to know the legislation for crew members to work on-board your vessels, how to operate vessel within and outside specific ports, how to handle dangerous goods and other types of goods, and how to operate certain communication equipment on-board your vessel and many other legislation. 16.LOGISTICS SPECIALIST Logistics specialists analyze and coordinate supply chains for organizations and businesses. They direct the allocation of materials, supplies and products, overseeing purchasing, shipping, warehousing and delivery. They also present reports on performance data, striving to find cost- effective solutions to production, shipping and delivery of products. 17.MARKETER Marketing managers play an invaluable role for importing and exporting organizations, developing and establishing overseas markets for goods and services. These professionals identify markets and develop competitive pricing strategies. They utilize forecasting computer applications and work with various aspects of messaging and communications, including public relations and advertising.
  • 74. 74 18.EXPORT/IMPORT INSURANCE BROKERAGE Export shipments are usually insured against loss, damage, and delay in transit by cargo insurance. For international shipments, the carrier’s liability is frequently limited by international agreements and the coverage is substantially different from domestic coverage. Arrangements for cargo insurance may be made by either the buyer or the seller, depending on the terms of sale. Exporters are advised to consult with international insurance carriers or freight forwarders for more information. Damaging weather conditions, rough handling by carriers, and other common hazards to cargo make marine insurance important protection for exporters. If the terms of sale make the firm responsible for insurance, it should either obtain its own policy or insure cargo under a freight forwarders policy for a fee. You can therefore become an insurance broker in the import and export business. 19.CASHEW NUT EXPORTATION Cashews are found wild. Actual production figure is not available, but is estimated to be around 50,000 tons annually. Over 80 per cent of it is exported raw and unprocessed to India, Vietnam and Brazil, where they are processed into kernels and sold for higher value in Europe and North- America. In recent times, world market price of kernels has stabilized at $1.7 per pound for the benchmark grade – W320. This consumer-friendly price is likely to sustain continued demand for the product, even as new low cost suppliers enter the international market. One cashew tree produces between 200 and 300 cashew nuts in a year. 20.CRUDE OIL IMPORT AND EXPORT Every nation of the world needs energy and fuel to power their economy and not all these countries have in excess these fuel. You can deal in the exporting and importing of crude oil from one country to another. It is important to note that it is for the big dogs as it involves large cost of startup but a very profitable business in the long run. 21.PURE HONEY EXPORTATION Honey is primarily composed of fructose, glucose and water. It also contains other sugars as well trace enzymes, minerals, vitamins and amino acids. Honey is manufactured in one of the world’s most efficient factories, the beehive. Honey is currently priced between US$ 10.00 AND US$12.00 per kilogram at international market.
  • 75. 75 22.SPARE PART IMPORTATION Just like used cars, you can go into the importation of either used or new spare parts. Since it is very hard to return cars to factory especially from Africa, importation of the spare part is a goldmine if you have the knowledge and can import in large quantities. 23.AIR CARGO BUSINESS The sea is not the only means through which cargos can be brought in, the air can also be utilized in transporting containers. In 2014, airlines transported 51.3 million metric tons of goods, representing more than 35% of global trade by value but less than 1% of world trade by volume. With the right tools and equipment even though very costly, you can start an air cargo business by helping businessmen transport their goods faster and in a safer way. If you have the ability to sell, and an air of diplomacy, the import/export business might be right for you. All you need is the desire and determination to make it work. As you progress in the business, many factors become obvious and easy to handle. Once you get the business underway, the commission for setting up sales is very profitable. And after you establish and maintain a number of exclusive accounts, you’ll find the time you spend is highly rewarded with money.
  • 76. 76 PART – II Company Study Company Information and Product Profile
  • 77. 77 No. 10.1 company profile Name XXXXXXX Type Private Industry Import and export Nature of business Trading Headquarters XXXXXX Reg. office XXXXXXX XXXXXXXX XXXXXXXXXXXXX XXXXXX Logo Website XXXXXXXXXX XXXXXXXXXXX
  • 79. 79 PET Strap Oriented or tensilized polyester are the strongest plastic strapping products and are used as a viable alternative to steel strapping in the some industries. Polyester provides excellent retained tension on rigid loads. Its excellent recovery properties help a load absorb impact without strap breakage. No. 10.2 Product profile (PET STRAP) Why (pet) Strapping is a Strong Alternative Of SteelStrapping? ECONOMY: 50% cost saving compare to steel strapping because the weight of 6 meters of pet straps is equal to 1 meter of strap of same size and easy handling.
  • 80. 80 SAFETY: Pet strap does not have sharp edges like steel. It will not cut or damage product pet strap create a safe work environment for user because it does not spring back when removed, so there is no risk of injuries while tensioning or cutting the strap. No. 10.3 Product profile (PET strap holding cotton bales) Why Pet Strapping is a Better Choice Over Other Plastics? BECAUSE OF THE FOLLOWING REASONS:  HIGH TENSILE STRENGHT  LOW ELONGATION  BETTER WEATHER RESISTANCE Advantages: Lower cost and environment friendly as well. Best suitable for medium to heavy application rust free and safe working.High heat-resisting and lower elongation rate.
  • 81. 81 Features 1. Saving 50% cost in packing: According to the calculation, the weight of PET strap is only 1/6 of steel strap in the same size and length. It can save 50% for you in using PET strap to pack glass instead of steel strap. 2. Safety:PET packing strap can keep 5% tightening force for a long time without loosing, and it still has 5% buffer elongation when struck by powerful external force to make sure the safety of the packed goods. 3. Environmental Protection: PET packing strap is made of packing material in the grade of food. It doesn’t cause pollution to the packing objects, meeting the requirements of environmental protection, without any limitation in exporting. 4. Convenience: PET packing strap is light and convenient in transporting. Compared with steel band, it doesn’t need to cut in advance when using PET strap and it doesn’t need to wear gloves either when operation, easy and efficient 5. Strong tension, Small elongation, Strong temperature resistance, Excellent flexibility, Efficient, Beautiful but rust resistance, Economical products.
  • 82. 82 PET STRAP (PLAIN / SMOOTH) Sr. No. Width Thickness Weight per meter Runnage meter Minimum Breaking strength Elongation per Kg. at break mm mm Gram Meter N Kgf % 1 12 ( 11.70 to 12.10) 0.50 ( 0.48 to 0.52) 8.10 123.00 250 25 2 12 ( 11.70 to 12.10) 0.60 ( 0.58 to 0.62) 9.70 103.00 250 " 3 12 ( 11.70 to 12.10) 0.65 ( 0.63 to 0.67) 10.50 95.00 300 " 4 12 (11.70 to 12.10) 0.70 (0.68 to 0.72) 11.30 88.00 300 " 5 12 (11.70 to 12.10) 0.80 (0.78 to 0.82) 12.90 77.00 350 " 6 15 (14.70 to 15.10) 0.60 ( 0.58 to 0.62) 12.10 82.00 350 " 7 15 (14.70 to 15.10) 0.70 ( 0.68 to 0.72) 14.10 71.00 400 " 8 15 (14.70 to 15.10) 0.80 (0.78 to 0.82) 16.10 62.00 450 " 9 15.50 ( 15.30 to 15.60) 0.90 ( 0.88 to 0.92) 18.70 53.00 600 " 10 16 ( 15.70 to 16.10) 0.90 (0.88 to 0.92) 19.30 52.00 600 " 11 16 ( 15.70 to 16.10) 1.00 ( 0.98 to 1.02) 21.50 46.00 550 " 12 19 (18.70 to 19.10) 0.70 (0.68 to 0.72) 17.80 56.00 500 " 13 19 (18.70 to 19.10) 0.80 (0.78 to 0.82) 20.40 49.00 550 " 14 19 (18.70 to 19.10) 1.00 (0.98 to 1.02) 25.50 39.00 700 " 15 19 (18.70 to 19.10) 1.27 (1.25 to 1.29) 32.40 30.00 850 " 16 25 (24.70 to 25.10) 1.00 (0.98 to 1.02) 33.50 29.00 1000 17 25 (24.70 to 25.10) 1.27 (1.25 to 1.29) 42.50 23.50 1150
  • 83. 83 PET STRAP (EMBOSSED / KNURL) Sr. No. Width Thickness Weight per meter Runnage meter Minimum Breaking strength Elongation per Kg. at break mm mm Gram Meter N Kgf % 1 12 ( 11.70 to 12.10) 0.50 ( 0.48 to 0.52) 7.60 131.00 220 25 2 12 ( 11.70 to 12.10) 0.55 ( 0.53 to 0.57) 8.30 120.00 300 " 3 12 ( 11.70 to 12.10) 0.60 ( 0.58 to 0.62) 8.60 116.00 300 " 4 12 ( 11.70 to 12.10) 0.65 ( 0.63 to 0.67) 9.40 106.00 300 " 5 12 (11.70 to 12.10) 0.70 (0.68 to 0.72) 10.20 98.00 320 " 6 12 (11.70 to 12.10) 0.80 (0.78 to 0.82) 11.60 86.00 320 " 7 15 (14.70 to 15.10) 0.60 ( 0.58 to 0.62) 11.20 89.00 300 " 8 15 (14.70 to 15.10) 0.70 ( 0.68 to 0.72) 12.80 78.00 350 " 9 15 (14.70 to 15.10) 0.80 (0.78 to 0.82) 14.80 67.00 400 " 10 15.50 ( 15.30 to 15.60) 0.90 ( 0.88 to 0.92) 17.50 57.00 500 " 11 16 ( 15.70 to 16.10) 0.70 ( 0.68 to 0.72) 13.70 73.00 400 " 12 16 ( 15.70 to 16.10) 0.80 ( 0.78 to 0.82) 15.80 63.00 450 " 13 16 ( 15.70 to 16.10) 0.90 (0.88 to 0.92) 17.90 56.00 550 " 14 16 ( 15.70 to 16.10) 1.00 ( 0.98 to 1.02) 20.00 50.00 600 " 15 19 (18.70 to 19.10) 0.70 (0.68 to 0.72) 16.30 61.50 500 " 16 19 (18.70 to 19.10) 0.80 (0.78 to 0.82) 18.80 53.00 550 " 17 19 (18.70 to 19.10) 1.00 (0.98 to 1.02) 23.80 42.00 700 " 18 19 (18.70 to 19.10) 1.27 (1.25 to 1.29) 30.40 33.00 900 " No. 10.4 Product profile
  • 84. 84 FIBC Bag (Flexible Intermediate Bulk Containers) No. 10.5 Product profile Single (Loop or Two Loop Bag ) No. 10.6 Product profile (Tunnel Loop Bag)
  • 85. 85 Flexible Intermediate Bulk Containers (FIBCs) or Bulk Bags as it is popularly known today are giant size bags in drum or box shape. These bags are made of high tenacity Polypropylene (PP) material and are UV stabilized with certain additives to give more shine to the bag and TiO2. They are produced in a range of capacities from 250KG Safe Working Load to 2500KG Safe Working Load with a Safety Factor 5:1 (Single trip) and 6:1 (Multi trip), depending on the density of the bulk material that is handled in the bag. These bags are normally tailor made to meet the specific requirements of the end users. At Omniscient, we provide a wide range of these Bulk bags to meet today's diverse packaging requirements. We offer them with different sizes, strengths, fabric weight, loop designs, top and base designs, inner liner or lamination (outside/inside the bag) and various printing options. We can do a maximum up to six color printing on our Bulk bags as per the customer’s requirement. Our FIBCs are made in different colors and we can use multi-colour webbing to give them a different and a unique look all together. Unique Characteristics:  Ideal, cost effective, economical and highly feasible source for packaging of free flowing material in the granular, power or crumble form.  Very easy to store and handle the FIBC with a standard equipment.  Bulk bags when not in use could be easily folded and requires very less space in comparison to the storage of empty fibber drums and other containers used for packaging.  Bulk bags/FIBCs once packed and filled with material does not require any additional packaging.  FIBCs are packed flat and square in a bale for the delivery of FIBC bags to the end users for the its consumption.  Depending upon the bulk capacity of the product and its application, the FIBCs/Bulk bag comes with the guarantee of the Safe Factor of 5:1 and 6:1 for the Dangerous goods. Salient Features:  Industrial grade clean production.  Safe Working Load ( SWL) : 500 KG to 2500 KG.  Safety Factory ( SF) : 5:1 ( Single trip), 6:1 ( Multi Trip) or as per customers requirement.  Size, Color & Type of FIBCs: As per the customer requirement & purely customized.  Printing : Up to 6 Color Printing on each sides.  Loops, Filling & Discharge options : As per customers requirement.  Liner : PE Liner from 40 to 120 Micron Thickness.  Packing: Packed on either Bale or Pallets.
  • 86. 86 FIBC PRODUCTS: Styles:  U-Panel Bag - Requires 2 seams along 2 opposing sides to create 2 panels and a U shaped bag.  Tubular - Circular fabric with with seams sewn at the top and bottom of the bag.  Baffle- Utilizes inside baffles that allow the bag to fill to maximum capacity without expanding. Fabric:  Color Options - As per customers Requirement (Minimum order quantities required).  Uncoated - Standard polypropylene fabric.  Coated - Fabric that is laminated with polypropylene film.  Conductive - Fabric which conducts electrostatic charges. Top:  Open tops - Economical for in plant use, but not optimal for packaging.  Duffle tops - Top opens out of the bag for easy filling.  Inlet spouts - Top wraps around your filling spout for the best combination of easy filling and spill free shipping.  Cone top - Allows optimal filling space for products that need time to settle. Bottom:  Flat Bottom - Basic polypropylene fabric bottom with no discharge capability.  Discharge Spout - Allows bag to discharge from bottom in a smaller capacity.  Full Bottom Discharge - Allows entire contents to be discharged in one motion.  Closures - Tie closure, velcro closure, diaper closure, star closure, drawstring closure. Lift Loops:  Side seam - 4 loops sewn directly into the side seam.  Cross corner - 4 loops sewn across the corner for easy forklift access.  Stevedore straps - 4 loops sewn directly into the side seam with 2 straps connecting the side loops.  1-loop - 1 large loop connecting two opposite sides for easy crane access.  Sleeves - 2 sleeves sewn on opposite sides of the top for easy forklift access.
  • 87. 87 Tarpaulin We produce and supplies of Tarpaulin. A tarpaulin often referred as “Tarp”. Tarpaulin is a large sheet of strong, flexible, and handy water resistant or water proof cover for large areas. We are producing Modern tarpaulins which are made up of Woven polypropylene, usually known as Polytarp and produced in a woven pattern, which makes it easy to the touch goods and cover the things or areas. It also has edges with grommets in corners which makes it easy for people to tie down or suspend it to various objects. No. 10.7 Product profile (Tarpaulin)
  • 88. 88 Our range in the tarpaulin contains of various series of colors and sizes as per the requirement of customers. We serve the best quality product which will protect the valuable commodities for you. Applications: We produce tarpaulins which are flexible and large therefore it has many uses. we produces tarpaulins which are coated to be waterproof, resist ultraviolet or sun rays, and protective to extreme hot or cold weather conditions and are even made to resist wind along with an important benefit of having high strength and durability. In addition to protecting goods and areas from weather, our tarpaulin is also used to protect the floor from paint splatters or an open truck load items and even Farmers can use it to cover hay. Tarpaulin for Storage: During the storage of goods, the maintaining of quality is the biggest challenge for any producer. Our Tarpaulin being Strong and weather resistant takes care of your valuable goods like commodities, food grains, cotton, fertilizers and chemicals from degrading and acts as a second skin. Tarpaulin for Transport: Extra strong Tarpaulin protects valuable cargo during transportation by road, rail or ship from rain and hot winds. Our Proper sealed Tarpaulin ensures that your cargo is safe and protected against uncertain conditions and is safely reached to the end user. Tarpaulin for Outdoors: Our High quality Tarpaulin is ideal for picnics & outdoor functions. Trekkers, campers and holiday makers can use our Tarpaulin as an ideal for shelter, thereby our tarpaulin stands protective for industries as well as to fun loving and adventurous people.
  • 89. 89 Mango Pulp Since years, we have been engaged in exporting the best stock of Natural Mango Pulp. Wisely packed in moisture free jar for retaining its taste and nutrients, the pulp is high in demand for use in various confectionery items such as ice creams, sweets, cakes and pastries. We offer this Natural Mango Pulp to clients at competitive price. No. 10.8 Product profile (Mango pulp) Key points:  Extracted from the hand- picked mangoes  The pulp is processed through pasteurization and stored in conductive temperatures  Stringently tested for its purity and shelf life
  • 91. 91  Purchase department:- Purchase department plays an important role in each and every business. In omniscient international the purchase is been done on the basis of order from the foreign country. The purchase depends upon the availability of the order and also depends upon the availability of the finance with the company. XXXXXXXXXX mainly purchase their products from XXXXXXXXXXXXXXXXXXXXXXX  Marketing department:- Marketing is the best way of promoting the business, and omniscient mainly depends upon the marketing strategy. In omniscient International the promotion of the business is done mainly through marketing and its website. Marketing in omniscient is done by its own proprietor rather than other person, and due to that XXXXXXXXXXXX has good relation with the foreign customers.  Accounting department:- Accounting is an important part of the business weather the business is on large scale or on small scale. Accounting helps the business to know its sales, purchases, assets, liabilities, profits, losses, etc… for the years. Omniscient international records its transaction in the accounting software i.e Tally and also it records its transaction in the accounting book, accounting department is handled by XXXXXXXXXX.  Supervision department:- The work of the supervisor is less as compare to other department, but the work which is done by supervisor should be perfect and complete. In omniscient international the supervision is carried by its own proprietor XXXXXXXX.
  • 93. 93 No. 12.1 SWOT Analysis  STRENGTHS  The company is working in the industry since many years so it has experience of almost all the kinds of documentation and procedure.  It has a good market image and therefore it is recognized as trustworthy company in import and export industry.  The proprietor is well experienced, so he can guide for effective functioning of the company.  WEAKNESSES  The company is working mainly in the export of four products while competitors are exporting many commodities.  Sometimes, the company suffers loss due to non recovery of money from the foreign customers.
  • 94. 94  OPPORTUNITIES  The company can export other commodities like food grains, solar panels, non-woven bags and non-woven material, etc... .  The company can work from other country and even can work with the companies of other country.  The company can earn more profit by exporting other commodities and also by importing some products on behalf of some country in India.  THREATS  The biggest threat for company is there are many new entries of exporters and importers in the market.  There are many big companies who are exporting their companies by their own rather then exporting through the other companies and traders.
  • 95. 95 Conclusion The company, at present is working with good reputation in the market and due to that in future it has a wider scope of progress and can even get more business by entering in export of more commodities. Thus, the company has its own reputation in the global market in the field of export of in various countries. The company is having good relation in foreign countries like U.S.A, U.A.E, Europe, etc..., and also it has wide market in India. At present, the company is highly recognized and trustworthy in terms of its services and quality of the product.