2. 2April 25, 2014
ACKNOWLEDGMENT
“It is not possible to prepare report without the assistance & encouragement of other people. This
one is certainly no exception.”
We have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and organizations. We would like to extend our sincere thanks
to all of them.
We take this opportunity to express our profound gratitude and deep regards to our guide Ma’am
Huma Jamshaid for her exemplary guidance, monitoring and constant encouragement throughout
the course of this project. The blessing, help and guidance given by her time to time shall carry us a
long way in the journey of life on which we are about to embark.
We also take this opportunity to express a deep sense of gratitude to the President of Multan
Chamber of Commerce for his cordial support, valuable information and guidance, which helped us
in completing this task through various stages.
We are obliged to the owner of Multan Craft Bazar for the valuable information provided by them in
their respective fields. We are grateful for their cooperation during the period of our assignment.
Lastly, we thank Almighty ALLAH, our parents, brother, sisters and friends for their constant
encouragement without which this assignment would not have been possible.
3. 3April 25, 2014
CONTENTS
Introduction.............................................................................................................................................4
Why invest in India?...............................................................................................................................4
India — An Overview.............................................................................................................................5
Venture Description................................................................................................................................9
Indian Pottery Industry .......................................................................................................................9
Artisans Blue Pottery Project............................................................................................................10
Overview of Project ..........................................................................................................................10
Project Objectives.............................................................................................................................10
About us............................................................................................................................................10
Work Culture and Practices at Artisans............................................................................................11
Vision................................................................................................................................................11
Mission..............................................................................................................................................11
Growth Opportunities .......................................................................................................................11
Location ............................................................................................................................................11
The Business Environment ...................................................................................................................12
1. Political Environment ...................................................................................................................12
2. Legal Environment........................................................................................................................13
3. Economic Environment ................................................................................................................14
4. Monetary Environment .................................................................................................................15
5. Trade Environment .......................................................................................................................17
6. Cultural Environment....................................................................................................................20
7. Business Environment ..................................................................................................................22
8. Key Success Factors .....................................................................................................................23
Project Estimation.................................................................................................................................24
Competitive Advantage Matrix.............................................................................................................26
Products ................................................................................................................................................28
Marketing & Sales Strategy..................................................................................................................29
Management & Personnel Requirements..............................................................................................30
Important Points from Other Trade Stories...........................................................................................30
Every Product Has A Story, So Share It. ..........................................................................................30
A Good Cause Does Ensure A Sale..................................................................................................30
Long Term Trade Relationships Are The Key To A Sustainable Business......................................30
Conclusion ............................................................................................................................................31
4. 4April 25, 2014
Introduction
India is one of the growing economy among the economies of Asia. In fact, global investment
firm, Moody‘s, says that driven by renewed growth in India and China, the world economy is
beginning to recover from the one of the worst economic downturns in decades.
In 2008-09 the growth in real Gross Domestic Product (GDP) at factor cost was 6.7 per cent.
In agriculture, forestry and fishing, the sector-wise growth of GDP was at 1.6 per cent in 2008-
09, industry witnessed growth to 3.9 per cent of the GDP in 2008-09.
The Prime Minister, Dr. Manmohan Singh, on August 15, 2009, in his address to the nation on
its 63rd Independence Day, said that the Government is struggling to increase the GDP to 9 per
cent. Further, the World Bank has projected an 8 per cent growth for India in 2010, which
would bring India to a top on the list of fastest growing economies, overtaking China‘s expected
7.7 per cent growth.
A number of leading indicators, such as increase in hiring, freight movement at major ports
and encouraging data from a number of key manufacturing segments, such as steel and cement,
indicate that the downturn has bottomed out and highlight the Indian economy's resilience.
Recent indicators from leading indices, such as Nomura's Composite Leading Index (CLI),
UBS Lead Economic Indicator (LEI) and ABN Amro Purchasing Managers' Index (PMI), too
bear out this optimism in the Indian economy. Industrial output as measured by the index of
industrial production (IIP) clocked an annual growth rate of 6.8 per cent in July 2009, according
to the Central Statistical Organization.
Significantly, among the major economies in the Asia-Pacific region, India's private domestic
consumption as share of GDP, at 57 per cent in 2008, was the highest, according to an analysis
by the McKinsey Global Institute. FIIs inflows into the Indian equity markets have touched
US$ 10 billion in the April to September period of 2009-10. Foreign direct investments (FDI)
into India went up from US$ 25.1 billion in 2007 to US$ 46.5 billion in 2008, achieving an
85.1 per cent growth in FDI flows, the highest across countries, according to a recent study by
the United Nations Conference on Trade & Development (UNCTAD).
According to the Asian Development Bank's (ADB) 'Asia Capital Markets Monitor' report, the
Indian equity market has emerged as the third biggest after China and Hong Kong in the
emerging Asian region, with a market capitalization of nearly US$ 600 billion.
Why invest in India?
In South Asia region, India is ranked as one of the best countries for business and investment.
India has succeeded in attracting the world’s largest companies to establish their plants here.
This includes some of the largest firms in the global technology, information technology,
pharmaceutical, biosciences, and manufacturing and financial services industries.
These firms have generated profits and are looking forward to invest more in India. They are
in India because:
Fast economic growth: India is likely to be one of the fastest growing large economies in
the current decade with at least 7% GDP growth in real terms.
5. 5April 25, 2014
Vibrant economy: India is the largest democratic country in the world and there has been
a remarkable continuity in direction of policy
Favorable demographics: A young population (under 25 years) accounts for about 50%
of India’s total inhabitants. Meanwhile, labor costs, as a percentage of value added, are among
the lowest among Asian companies.
Consumption: India’s GDP per capita in Purchasing Power Parity terms has crossed the key
threshold of USD 3,000 in 2013
Balanced markets: The Indian stock market is well-balanced in terms of export and
domestic-oriented sectors. The Indian market has a strong link to the global cyclical upturn,
but at the same time it does not rely exclusively on the health of the Western world.
Rapid export growth: India’s exports have grown sharply over recent months, clocking
37% for the year ending 31 March, 2013, according to the Indian Ministry of Commerce and
Industry
Attractive FDI destination: At USD 32 billion in financial year 2010, India attracted
more foreign direct investment (FDI) as a percentage of GDP than China
India — An Overview
India- An important strategic country of South Asia and the most populous democracy in the
world shares its borders with Pakistan, Bangladesh, China, Nepal, Bhutan and Burma. Being a
home to the ancient Indus Civilization and a region of historic trade routes and vast empires,
Indian sub-continent was identified with its commercial and cultural wealth for much of its
long history. The Indian economy is the world's eleventh-largest by nominal GDP; it is
considered a newly industrialized country.
However, it continues to face the challenges of poverty, corruption, malnutrition, inadequate
public healthcare, and terrorism. India is also a part of SAARC. It has the third-largest standing
army in the world and ranks eighth in military expenditure among nations. India is
a federal constitutional republic governed under a parliamentary system consisting of 28 states
and 7 union territories. India is a pluralistic, multilingual, and a multiethnic society. It is also
home to a diversity of wildlife in a variety of protected habitats.
Many notable companies are operating in India. These companies are doing business in various
sectors including aerospace & defense, automotive, banking, biotechnology, information
technology, insurance, power, real estate, retail, telecommunications. The attraction of India as
a positive investment location can be attributed to the positive approach of successive Indian
governments to the promotion of inward investment, a very favorable corporate tax rate and a
skilled and flexible labor pool.
This report provides a complete and comprehensive detail to the major commercial and legal
issues to be considered by international investors establishing business operations in India.
Particular businesses or industries may also be subject to specific legal requirements and
specific advice may be required in these circumstances.
6. 6April 25, 2014
Region South Asia
Capital New Delhi
Population 1.27 billion
Area 3,287,590 km²
Language Hindi and English
Political system The 1950 constitution provides for a parliamentary system of
government with a powerful parliament and three independent
branches: the executive, the legislature and the judiciary
GDP $1.946 trillion (nominal)
GDP growth 4.986% (2013–14)
Currency Indian Rupee (INR)
Ease of doing
business rank
132nd
Cumulative FDI
inflows
$198.68 billion
Foreign
exchange
reserves
$292.33 billion
9. 9April 25, 2014
Venture Description
Indian Pottery Industry
India is one of the important suppliers of handicrafts to the world market. The handicraft export
business is increasing at a consistent pace and is spreading its wings to the various nations. In
2012–13, Indian handicrafts exports stood at US$ 3.3 billion, registering a growth of
approximately 22% over the previous year. Exports of Indian handicrafts have grown at a rate
of around 7% since 2001–02. The Handicraft industry is a major source of income for rural
communities. India along with several other developing countries of Asia is considered as one
of the first Asian countries to manufacture as well as export pottery products. The important
markets for Indian pottery products are USA, Mexico, Hong Kong, Japan, Germany, Italy and
France.
Pottery industry is economically important for its low capital investment, high ratio of value
addition and high potential for export and foreign exchange earnings for the country. It is highly
labor intensive cottage based industry and decentralized, being spread all over the country in
rural and urban areas. Numerous artisans are engaged in crafts work on part-time basis. The
industry provides employment to over six million artisans, which include a large number of
women and people belonging to the weaker sections of the society. The pottery industry in
India provides mass employment along with betterment of the living standards; both the village
and city people comprise the work force of the industry.
India pottery industry, over the years, has bravely battled several hindrances and emerged as
the proud winner. This profit-earning industry of India is without any application of modern
day technical support; most of the technologies are outdated and are also inefficient at the same
time. It has been estimated that over 40 lacs rural potters still work with the help of conventional
pottery wheels. Of the 15 lacs traditionally skilled potters, about 95% are involved in the work
of conventional red local pottery. In addition, the products made in the village pottery are only
sold to a restricted part of the society. The products of artisan are branded as ‘local’, ‘primitive’,
‘ethnic’ and similar adjectives that can denote qualitatively inferior products when compared
with machine-made, mass-produced objects of uniform quality.
Artisans can start their unit by availing of the Composite Loan scheme, where they need not
contribute any of their own capital. Maximum loan limit is Rs. 25.00 lacs. The most important
are the partial tax holiday for newly established small scale industrial undertakings. Promotion
Council for Handicrafts (EPCH) is a non-profit organization, with an object to promote,
support, protect, maintain and increase the export of handicrafts. The Council has created
necessary infrastructure as well as marketing and information facilities. EPCH is offering
professional advice and services to members in areas of technology up gradation, quality and
design improvement, standards and specifications, product development, innovation etc. The
opportunities in this sector are enormous due to less capital intensive, extensive promotion &
support by Government, funding - finance & subsidies, raw material procurement, technical &
managerial skills, export promotion, growth in demand in the domestic market size due to
overall economic growth and increasing export potential for Indian products.
The Ministry has a number of programmers to help and assist entrepreneurs and small
businesses. If you are planning to set up business, you may contact National Institute for
Entrepreneurship and Small Business Development (NIESBUD ), National Institute for Micro,
10. 10April 25, 2014
Small and Medium Enterprises (NI-MSME), Indian Institute of Entrepreneurship (IIE) or the
Development Commissioner (DCMSME) for details about their programmers.
Artisans Blue Pottery Project
Multan has the historical and cultural heritage of Blue Pottery and “Multani Mitti” (Clay) is
traditional local craft of the area. This approach will provide employment opportunities to the
existing artisan and the newly created workforce trained through R&D at their doorsteps. The
resultant sustainable livelihood will be a key for poverty alleviation and preservation of the
heritage. For effective implementation of the concept, it is imperative to focus on backward
areas of the country, and develop indigenous products
Overview of Project
Proposed project is a Public Private Partnership for the preservation of Multan’s legendary
heritage of Blue Pottery and generation of economic activity through skill development, job
opportunities and access to local/international markets. The project will lead to the
establishment of a research, development and training facility for Blue Pottery craftsmen and
trial production of products utilizing modern technologies. Furthermore a well-equipped
business center would locate the potential domestic and international markets. This will be a
pilot project and later on the activity can be extended for bigger scopes of education, training
and production.
Project Objectives
֎ Revival of traditional craft of Blue Pottery industry/sector.
֎ Enhancing Competitiveness and Productivity of the Blue Pottery Industry in India
֎ Economic Empowerment of marginalized section of society including women, and
landless village artisans, through skill development and provision of opportunities for
income generation
֎ Training of artisans on modern lines in Blue Pottery
֎ Establishment of state of the art R&D center
֎ Product development and diversification
About us
Artisans is the well renowned Manufacturer of Blue Pottery. It’s Warehouse and Showroom
are housed in the city of Multan. Artisans date back to 2005 and was founded by an
enthusiastic team. Owing to their entrepreneurial zeal, Artisans has been instrumental in
creating more than 300 Blue Pottery Products and 1000 unique designs of their own vision and
imagination. The Company supports hundreds of Blue Pottery craftsmen and their families in
Multan and work jointly to create a self-reliant atmosphere in the villages where this craft is
still professed.
A lively and vibrant persona exemplified – that is what Artisans is all about. One can see the
magnitude, grace and fortitude instilled in this powerhouse of Artisans whose goal is to work
for the glory and stature of Blue Pottery. The resurrection journey of Blue Pottery commenced
during the year 2005, when Artisans was inaugurated in Multan. Artisans instantly attracted to
the vibrancy, grace, feel and demure kind of styling of the traditional Blue Pottery merchandise
on display. Artisans is well aware of the fact that the craftsmen had no means of marketing
their products and had to sustain on the meagre sum of money that they made when a sale was
made by them, which was by no means a regular feature for them.
11. 11April 25, 2014
At that time, the traditional Blue Pottery items consisted of big vases, pots and other heavy
items. This naturally needed a big and rich customer owing to the size and material cost of the
products. Artisans pondered on the possibilities of innovating away from the well-trodden path
of Blue Pottery items and envisioned small, delicate and day-to-day useful items made with the
same materials. The result of the ingenious vision and dedication to the craft brought forth
beauty and intricacy in the form of beads, curtain rods, ashtrays, candle stands, lanterns,
coasters, decanters, perfume bottles and other astonishing but useful items.
Work Culture and Practices at Artisans
Artisans work culture and practices are based on building self-reliant innumerable units right
at the place of residence of the artisans itself. Since the time that Artisans started going to the
villages, the whole concept was to let the craftsmen live at their own abode and do farming
along with making pottery. Artisans always wanted the craftsmen to be at their homes and farm
lands rather than coming to live in a cramped room in the city.
This helps the crafts people to work at their own will and wish with no pressure of time and
money, to shed. Neither do they have to take the trouble of coming to a factory workshop or
some other place for creating Blue Pottery items. They can stay at home and work as well as
cater to the need of the family and farming.
The company promotes new and innovative designs and items on a regular basis for the Blue
Pottery items. The company appreciates and encourages new streams of thoughts and ideas
from its creative artists which give rise to new business opportunities and gains for the company
as well as the craftsmen.
Vision
If your eyes like it, your heart will love it.
Mission
Our mission is about exceptional style, outstanding services and exceeding customer
expectations. At Artisans, we believe that it takes two major principles to provide customers
with the best service. First is pride in the quality of our product. Second is making sure we
provide you with the most reasonable price
Growth Opportunities
Market in India is quite attractive and there are almost no competitors. The market where
Artisan will firstly show up lies in Delhi known as “Dilli Haat”. The market is famous for its
shops of handicrafts and clay pottery particularly Jaipur pottery. But those are just the shops
and no particular firm is operating there. So, Artisan would be facing quite relaxing
environment in the market and there are very attractive growth opportunities as well.
The factors promoting our company are:
֎ Low labor cost
֎ Innovative and unique designs
֎ Talented and expert workers
֎ Skillful management
Location
Our goal is to target the general people, so we have chosen to open our outlet in a very
traditional market, “Dilli Haat”. DILLI HAAT is located in the commercial centers of South
12. 12April 25, 2014
Delhi. The 6 acres of land on which this complex is situated was salvaged as part of a
reclamation project and transformed into a plaza. Extensive foundation work, small thatched
roof cottages and kiosks give the plaza a village atmosphere Dilli Haat, INA Market is accessed
through INA underground station of Delhi Metro, Dilli Haat INA is open to public, 10.30 am
to 10.00 pm., seven days a week, at a nominal entrance fee, Rs. 20 (Adult), and Rs. 10
(Children) but our edge in that market would be our own outlet. In Dilli Haat there are a few
shops and mostly are the stalls, the stalls are for 15 days and they are kept rotating. So a fix
location is also going to be an edge for Artisan.
The Business Environment
The government of India is looking forward to improve their economy’s regulatory
environment for the business. World Bank has ranked India at 134th
number for doing business.
For policy makers, knowing that where their economy stands is of great importance. Also
useful is to know where they stand in providing an ease of doing business and where their
comparative economies stand. This ease can be provided by the analysis of various
environmental factors that influence the economy of India and which an investor considers
before entering for business in India market.
1. Political Environment
The term Political environment involves the elements that are related to government affairs
such as type of nature of ruling government, government view towards different societies,
policy changes implemented by different governments etc. The political environment has direct
and strong influence on the business transactions and business proceedings. So businessman
must scan this environment very carefully.
India's financial system, the largest in South Asia, is characterized by heavy government
involvement. The national policies of India have always depended upon the policies of a
political party. In this way political environment of a country has great impact on the business
houses. In short, important economic policies such as industrial policy, foreign capital policy,
fiscal policy and import policy are made under the umbrella of ruling government mandate
which establishes a great impact of political & legal environment on the business houses. A
stable and dynamic political environment is way too much important for the business growth.
In India, there are three political structures or institutions. These political institutions i.e.
Legislature, Executive and Judiciary play a vital role in economic policies as well as in
development of country whereas the legislature is vested with most vital powers like policy
making, budget making and executive control. Every decision made by the legislature directly
affects the business sectors. The purpose of legislature is to ensure that the businesses are
generating justifies profits and their activities are not hazardous to the society. The second
important political institution is executive. The rules, policies made by the legislature are
maintained and supervised by the executives. In this way, the functions of executive also effects
the economic development. Sometimes there rises a conflict between the executives and
business houses regarding the implementation of the policies made by the legislature. Such
conflicts are resolved by the third institution- judiciary. Judiciary interrupts in such conflicts
for the justified settlement among the both parties.
13. 13April 25, 2014
It is a universal phenomenon that state controls economy. In the modern era, two most
powerful institutions in the society are ‘business’ and government which work on a common
motive i-e., economic development of the country and work with mutual co-ordination in
making the foreign and domestic policies for a nation. Normally government plays an
important role in an economy and in making the rules and regulations of the economy. The
reservation of industries to small scale, public and cooperative sector, licensing system, import
and export regulations, the subsidies for different sectors are some examples of regulatory
measurements of the governments.
A well planned economic plan is necessary to be designed and followed by the government
which ultimately may lead a country on the path of development. Government plays a vital role
in planning economy. How to manage resources in order to achieve the goal within the time
frame set etc. are the basic needs for economic and proper planning is most important tool for
the same.
2. Legal Environment
Legal environment constitutes the laws and various legislations passed in the parliament. The
businessmen cannot overlook the legislations because they have to perform their business
transactions within the framework of legal environment. The common legislation passed by the
Indian governments and enforced by the executives are Trade Mark Act, Essential Commodity
Act, Weights and Measures Act, etc. Most of the time legal environments put constraints on
the businessmen but sometimes they provide opportunities also.
In India, it takes an average of 35 days to start a company, which is very small as compared
with the world average of 48 days. Obtaining a business license and closing a business can be
very difficult because of the sluggish bureaucracy and corrupt officials. All businesses must
contend with extensive federal and state regulation as well as an infamously slow bureaucracy.
The overall freedom to start, operate, and close a business is significantly restricted by the
national regulatory environment.
The government of India under the Essential Commodities Act of 1955 applies price controls
at three levels: factory, wholesale, and retail on "essential" commodities; electricity, some
petroleum products and certain types of coal, and pharmaceuticals.
India's weighted average tariff rate was 14.4 percent in 2005. Non-tariff barriers include
excessive bureaucracy, strict licensing requirements, export subsidies, import taxes and
certifications on many goods, and a negative import list that bans or restricts many goods.
India's tax rates are moderate. Both the top income tax rate and the top corporate tax rate are
33 percent (a top rate of 30 percent plus a 10 percent surcharge). Other taxes include a dividend
tax, a property tax, and a tax on insurance contracts. In the most recent year, overall tax revenue
as a percentage of GDP was 10.2 percent.
India controls foreign investment with limits on equity and voting rights and mandatory
government approvals. FDI is kept at a certain level by the imposition of complex rules and in
some sectors, even prohibits it. Rules established in 2005 maintain restrictions on most existing
joint ventures but allow new ones to negotiate their own terms on a commercial basis. Central
bank approval is required for residents to open foreign currency accounts, either domestically
or abroad, which are subject to significant restrictions.
14. 14April 25, 2014
India also provides protection to Intellectual Property Rights (IPRs) in accordance with its
obligations under the Trade-Related Aspects of Intellectual Property Rights (TRIPS)
Agreement of the WTO. India has also made amendments in its Patents Act 1970, three times
since 1999. Indian Patents Act is fully compliant with India's obligations under the TRIPS
Agreement of the WTO.
India's copyright law, laid down in the Indian Copyright Act 1957 as amended by Copyright
(Amendment) Act 1999, fully reflects the Berne Convention on Copyrights, to which India is
a party. India also provides trademark protection for marks of goods and services, collective
marks, certification trademarks and well-known marks under the Trademarks Act 1999.
Application for registration of a trademark should be filed with the trademark registry.
Trademark is registered after publication in the trademarks journal to invite opposition and
after further examination.
3. Economic Environment
An economic system is the system of producing and distributing of goods and services and
allocating resources in a society. There are various economic systems like market economy
where consumers decide which goods and services they want and businesses provide these. So
in this economic system individuals own and operate different factions of production, for
example free enterprise and capitalism. Second type of economy is command economy where
the government decides what and how much will be produced. So in this economic system
government owns and operates all factions of production, for example Socialism and
communism. Third type of economy is called mixed economy. A mixed economy is actually
an economic system with elements of both the above economic systems. It contains the features
of both market economy and command economy.
India has a mixed economic system. Neither socialist nor capitalist, but somewhere in between.
India's mixed economy combines features of both capitalist market economy and the socialist
command economy. The public sector generally covers areas which are deemed too important
or not profitable enough to leave to the market, including such services as the railways and
postal system.
The Indian economic policy after independence was influenced by the colonial experience.
These policies included a strong emphasis on import substitution, intervention of the state in
labor and financial markets, industrialization, central planning, large public sector, business
regulation. Five-Year Plans were introduced. In the mid-1950s, industries such as electrical
plants, water, insurance, mining, telecommunications, steel, machine tools were nationalized.
Between 1947 and 1990, regulations and licenses were needed to set up businesses in India.
This was termed as License Raj. There were restrictions on foreign direct investment (FDI).
The Green Revolution in India was introduced with high-yielding seeds varieties, fertilizers
and irrigation after 1965. This helped in making the country self-sufficient. The government in
the late 80's relaxed restrictions reduced corporate taxes and removed price controls.
From 1947 to 1991, the India Economic System was based on social democratic-based policies.
The policies feature extensive regulation and public ownership which led to slow growth and
corruption. But the economy moved to a market-based system with economic liberalization.
Economic liberalization was initiated in 1991. The reforms abolished the License Raj, ended
public monopolies which allowed automatic approval of foreign direct investment in various
15. 15April 25, 2014
sectors. Economic liberalization refers to a country "opening up" to the rest of the world with
regards to trade, regulations, taxation and other areas that generally affect business in the
country. As a general rule, you can determine to what degree a country is liberalized
economically by how easy it is to invest and do business in the country. Liberalization policies
include partial or full privatization of government institutions and assets, greater labor market
flexibility, lower tax rates for businesses, less restriction on both domestic and foreign capital,
open markets etc. From that period, India has become one of the fastest growing developing
economies since 1990. It is projected that in 2035, India will be the third largest economy of
the world after US and China.
Economic Risks
High inflation and lack of fiscal discipline at the government level are the important economic
risks in doing business in India. Huge transfer payments to the rural poor, subsidies for food
and fuel, and disproportionate raises for state employees and retirees have bled the economy
from time to time. Furthermore, foreign companies need to watch exchange rate risks and
interest rate risks carefully to do business in India. Another risk is lack of resources, particularly
in the energy sector. The country is heavily dependent on resources imported from other
countries. There is also a need to improve the infrastructure. India has a huge young population.
Multinationals entering India assume that India has a large workforce. However, most of Indian
population resides in rural areas and illiteracy rates are still high in India. In India, customer
requirements change by each state and within the state. The staple food of North Indians is
wheat, and of South Indians is rice. Due to differences in religion, culture, language, weather
and infrastructure, customer demands changes nearly every 100 kilometer. This means,
multinationals have to enter a number of niche markets and may not enjoy the large economies
of scale for selling a single product across the country. Most of the growth has been because
of consumer demand within the country and by lots of travelers coming to India for health
tourism.
4. Monetary Environment
Indian monetary system is managed by Reserve Bank of India. It is based on inconvertible
paper currency. The internal purposes are met by currency notes and coins. For external
purposes it can be converted into foreign currencies. The main features of Indian currency
system can be divided into two heads: internal features and external features.
Internal Features of Indian Currency System
The following are the features of currency system of India:
1. The unit of money in India is Rupee.
2. The present monetary standard of India is the managed paper currency standard and
currency is not convertible into gold.
3. The Rupee coin in India is standard token coin whose intrinsic value of the metal is less
than its face value. The rupee coin is an unlimited legal tender in which payment of any
amount can be made. There are also a two rupee coin and a five rupee coin in circulation
since 1990.
4. There are also subsidiary coins in India to assist the token money. At present, coins of
the denominations of 1 paisa and 3, 5, 10, 20, 25 and 50 paisa are in circulation. The 50
paisa coin is unlimited legal tender. But all coins from 1 paisa to 25 paisa are limited
16. 16April 25, 2014
legal tender for which payment can be made only up to Rs.25 in India. The minting of
1, 3 and 5 paisa coins has been stopped since 1996.
5. Paper Currency in India consists of notes of various denominations which are issued by
the RBI and the Government of India. The one rupee note is issued by the Ministry of
Finance and bears the signature of the secretary. All currency notes are legal tender.
Currency notes of the denominations of 2, 5, 10, 20, 50, 100 and 500 are issued by the
Reserve bank of India. Printing of Rs. 1, 2 and 5 notes has been stopped and Rs. 1000
notes are started. RBI had issued Rs. 1000 note after 22 years in October, 2000.
6. The present system of note issue in India is the Minimum Reserve System: Under this
system, the RBI (Reserve Bank of India) is authorized to issue notes up to any extent
but it must keep a statutory minimum reserve of gold and foreign securities. The RBI
is required to keep minimum reserve of Rs. 200 crores. Of this, Rs. 115 crores must be
in gold and Rs. 85 crores in foreign securities.
External Features of Indian Currency System
Since January 1976 with the signing of Jamaica Agreement, India is following the policy of
floating exchange rates. According to this, the external value of Indian rupee is linked to a
basket of currencies of those countries with which India has large trade.
Important Terms Related To Indian Currency
Hard Currency: A currency traded in a foreign exchange market for which is persistently
high relative to the supply. e.g., Pound, Euro and Dollar.
Soft Currency: A currency whose exchange rate is tending to fall because of persistent
balance of payments deficits or because of the building up of speculative selling of currency is
expectation of a change in its exchange rate. Governments are unwilling to hold a soft currency
in their foreign exchange reserves.
Reserve Currency: A currency which government and international institutions are willing
to hold in their gold and foreign exchange reserves and finance as significant proportion of
international trade.
Fiat Money: Currency which is legally decreed as valid means of financing transactions. It
is legal tender.
Hot Money: Funds which flow into a country to take advantage of favorable rates of interest
in that country. They influence the balance of payments and strengthen the exchange rate of
the recipient country.
Indian Rupee Exchange Rates
Currency exchange rates for the Indian rupee (INR) converted to other foreign currencies.
These rates show what INR1 would be exchanged for in the foreign currency.
Pakistani Rupees: Rs. 1 Equal to Indian Rupees: Rs. 0.62
India Profit Repatriation
Though a FDI attraction, for its huge demand potential, India is lagging a little behind with
economic liberalization and reforms, but is actually very good when it comes to profit
repatriation. India allows free repatriation of profits once all the local and central (tax) liabilities
are met. In fact, throughout history, there has never been an incident that India has failed to
provide foreign exchange for repatriation. Investment exit decisions are also fairly simple, and
17. 17April 25, 2014
profits can be repatriated once all the tax debt and other obligations are satisfied. Problems
only arise when people evade or circumvent the already simple rules, or do so out of ignorance.
Managing Currency Risk
This is applicable for international businessmen running franchises for blue pottery in India.
Their first investment is normally done in international currency while the initial earnings are
in INR. There is a risk in these cases that the INR might lose value with respect to an
international currency.
They can adopt some protection against these risks by short selling futures valued in INR or
investing small amounts in the futures markets of their respective countries. However, in case
of currencies that are worth more than the INR, such protection is not always required.
One of the added uncertainties of conducting trade on an international basis is the fluctuation
of in exchange rates among currencies. The relative value between the Indian Rupee and the
foreign currency may change between the time the deal is made and the payment is received.
A devaluation or rise in the foreign currency against the rupee causes either a windfall or loss
to one party or the other involved in the transaction.
Terms and Concepts
International trade and the other transactions involving cross border flows of funds require the
participants to enter the world of foreign exchange. Foreign exchange is defined as claims
payable in a foreign country in a foreign currency. As a rule businesses and individuals operate
using their own national currencies – money recognized and legally acceptable for transactions
with in the particular currency zone.
5. Trade Environment
The issue of granting Most Favorite Nation status to India by Pakistan under the World Trade
Organization provisions had been in the limelight lately. India gave the MFN status to Pakistan
in trade since 1995-96. The question arises that whether the principle of reciprocity is so
fundamental to trade under the multilateral trade regime that not granting MFN status to India
will amount to against the WTO Agreements by Pakistan.
Unfortunately, the history of trade relations between the two countries has been disappointing.
Immediately after independence, India was Pakistan’s most important trading partner. In 1948-
49, 56% of Pakistan’s exports were to India and 32 % of its imports came from India. Under
the present trade policy 678 items come under permissible imports from India. Pakistan
government has cleared 78 items for tariff concessions to India under SAPTA as a CBM.
Although the new expanded list of importable items includes several important items like milk
powder, unsweetened milk, ferrous products, urea, super phosphates, marble and granite tiles,
graphite electrodes, wrist watches and wall clocks, yet it does not include items like
automotive, consumer durable, heavy engineering goods, cement, computer software and most
drugs and pharmaceuticals which have high potential. If this policy were maintained, none but
Pakistan would be the ultimate loser in the long run. Moreover, by providing the MFN status
Pakistan can claim access to the huge Indian market without any reservations. Raw materials
required for Pakistan’s industry could be cheaply imported from India instead of the far off
developed countries. Indian economy is not as big as compared to US, Canada, EU, Japan, etc.,
which are allowed to have normal trade with Pakistan on almost all items.
18. 18April 25, 2014
Those who oppose Pakistan’s granting MFN status to India are of the opinion that there is a
danger that by doing so, India will flood Pakistan’s domestic markets with Indian commodities
killing Pakistani entrepreneurs. Even the Production Ministry is of the view that allowing
concession of customs duties would hurt the local industry, especially milk powder,
unsweetened milk and ferrous products as tariff is low on the import of these items. But,
Pakistan has to ensure that an MFN treatment is meted out to the products coming from India.
Otherwise, import duties imposed by the Government of Pakistan will just be another form of
taxation on Pakistani consumers. Import duties are not paid by Indian exporters but come out
of Pakistani importers who then pass the duties on to Pakistani consumers. It is hoped that with
the passage of time India would further reduce its tariffs and completely eliminate the non-
tariff barriers, which is the ultimate goal of the international trade regime under WTO.
In the year 2001-02, Indian exports to Pakistan were $ 186.521 million, while Pakistan exported
$ 49.227 million in goods to India. And, during the first eight months of the financial year
2002-03, Pakistan's exports stood at $39.903 million against imports of $106.932 million from
India during the same period. Thus, despite enjoying MFN status Pakistan is suffering from a
trade gap which was more than $137 million for the last year and India despite being a non-
MFN state earned that much from its exports to Pakistan. Last year’s figures also show that the
official trade despite being as low as $ 235 million.
Actually, Pakistan – India’s informal trade has two components. One, illegal trade transacted
through the land borders, secondly circular or informal trade which is carried out through third
countries and re-exported from there to Pakistan. Even without granting MFN status, Indian
products are being smuggled into Pakistan markets through the porous border between the two
countries. Pakistan loses more than $500 million annually in custom duties to smugglers. This
trade includes chemicals, industrial machinery, cement, tires, tea, medicines, and videotapes,
cosmetics and viscose fiber. There are other goods that also find their way through third
markets such as Dubai and Singapore. Pakistan and India usually trade about 4000 items each
year.
India and Pakistan have also recently signed agreements addressing three key issues that have
long plagued business in the region: standards and testing, custom clearance and dispute
resolution. Major political parties and other influential stakeholders have become aware that
Pakistan has not taken advantage of its strategic location between two most populous and high
performance economies i.e. China and India. With the signing of the Free Trade agreement
with China, Pakistani markets and producers have already adjusted to relatively cheaper
imports from China. India can augment its exports to Pakistan in three categories – machinery,
mechanical appliances and electrical equipment, and chemicals and textiles. These three
categories account for 54 percent of India’s export potential.
19. 19April 25, 2014
The present situation of India – Pakistan Trade, Direction of Trade Flows and their trading
patterns can be seen in Table 1 – 4.
Table 1: India Pakistan Trade (USD in millions)
Year Pakistan’s exports
to India
India’s exports to
Pakistan
Total trade flows
2004-05 288 547 835
2005-06 293 802 1095
2006-07 343 1235 1578
2007-08 255 1701 1956
2008-09 320 1914 2234
2011-12 313 1659 1972
Table 2: Direction of Trade Flows from India and Pakistan
Trade flows
from
Within
Region
To other developing
countries
To high income
countries
India 4.2 4.5 17.5
Pakistan 4.5 12.4 12.0
Table 3: India’s Trade with Pakistan & the Rest of the World (USD in millions)
Exports to Pakistan 1,914
India’s total Exports 189,000
Percentage Share of Pakistan 1.01%
Imports from Pakistan 320
India’s Total Imports 257,600
Percentage Share of Pakistan 0.12%
Trade from Pakistan 2,234
India’s Total Trade 446,600
Percentage Share of Pakistan 0.50%
20. 20April 25, 2014
Table 4: Pakistan’s Trade with India & the Rest of the World (USD in millions)
Exports to India 320
Pakistan’s total Exports 19,121
Percentage Share of India 1.7%
Imports from India 1,914
Pakistan’s Total Imports 31,747
Percentage Share of India 6.0%
Trade from India 2,234
Pakistan’s Total Trade 50,868
Percentage Share of India 4.39%
Major Risks to Trade Relations
First, there exists a huge Trust Deficit between the two countries for the reasons that are well
known. Second, the South Asian political parties when in opposition behave quite differently
and diametrically opposed to their policies when in power. The third risk arises mainly from
the possible ascendency of the losers lobby. It must be realized that in the short run there will
be some losers and some winners from opening up of the trade. Fourth, the media and the civil
society in both India and Pakistan have become quite powerful. Fifth, there would be constant
need for the validation of the new popular narrative that the idea of India- Pakistan Trade are
espousing. Sixth, the Composite Dialogue on outstanding political issues should continue with
seriousness, commitment and constructive attitude. Seventh, other areas of economic
cooperation such as subcontracting by Indian IT Firms to Pakistani Companies, Tourist
Packages, and collaboration in Higher Education, Agriculture, Health, Research and
Development between the two countries would be highly beneficial.
6. Cultural Environment
The province of Punjab is the land of art, culture, heritage, civilization, history and various
innovative skills that the people of this fertile zone are blessed with. When we talk about
ceramic art of Pakistan, Multan is the most worth mentioning area and is the cultural, historic
and artistic city of Punjab.
The history of ceramic art in Multan is as old as the history of this city, in 1853, during an
excavation on Qillah Kohna Qasim Bagh, Alexander Cunningham a famous British
archeologist of his time, found glazed tiles which were made in 900 A. It was a remarkable
discovery by Alexander; since it gave evidence that the tiles were used in a masjid built during
the Mohammed Bin Qasim era, when he arrived in Multan.
The ceramic tiles of this area gained popularity with the passage of time and were frequently
used in shrines, masjids, and other buildings to give a fascinating look and tribute to the origin
of this art. The remarkable example of Multani Ceramic Art is seen in the form of Talpur
Tombs, Shrine of Uchh Sharif in Cholistan, Masjid Nawaban and Shrine of Shah Yousaf Qadri
(1153). Other classic and finest pieces of art created with Multani Ceramic Art are found in
Shrines of Sachal Sarmast, Shah Abdul Latif Bhittai, Eidgah Multan, Lahore Museum and even
some artistic work are displayed in London Museum to represent the rich ceramic art of
Pakistan.
21. 21April 25, 2014
The centuries old art and craft tradition is also known as Multani pottery, Blue Pottery or
Multani Kashi. The blue pottery is very famous and a center of attraction for the interior
designers, therefore it is proudly displayed and used for the interior of important buildings like,
President house, Prime Minister Secretariat, Culture Mission of Pakistan and Pakistan
embassy.
India has one of the richest and most exciting cultural tradition in the world. Indian culture
goes back several thousand year. That is why it is known as one of the oldest civilization in the
world. People of many different religions live in India. Among the major religion in India,
Hinduism is the largest, followed by Islam, Christianity, Sikhism, Buddhism and Jainism. The
constitution of India recognizes 18 major languages. Hindi is the official language of India.
Before Independence English was the official language of India. Dance & Music are an
important part of the culture. The people tell stories about their history through these forms of
arts.
When people think of India, they think of its architecture. The ruins of the Indus valley
civilization tell us how advanced we were even 5000 ago. The Kailash temple at Ellora, the
Meenakshi temple at Madurai, Qutub Minar, and the forts of Agra, Gwalior and Chittorgarh,
the Victoria Memorial at Kolkata are the finest specimens of Indian architecture.
India is a land of festivals. People in India celebrate festivals like Holi, Diwali, Eid, Onam,
Bihu, Guruparb and Pongal. These festivals speak of the cultural unity of country.Most Indian
values are Indian and follow Hindu tradition. Family integrity, loyalty and unity are
emphasized in the Indian culture.
Education in is divided into primary level, elementary level, secondary level, undergraduate
level and postgraduate level. Due to the low quality of Indian public schools approximately 27
% of all Indian students attend private schools.
Hofstede Model
Hofstede’s Cultural Dimensions: India vs. World Average
Power Distance Index PDI (India 77 v/s World Average 56.5)
Some tips to for the high PDI workplace…
֎ As status is recognized by age, university degree and profession, use of a person’s title
is important. Address someone as Dr. or Professor whenever possible. Do not call
someone by their first name until they ask you to.
֎ Put your university degree or any accreditations on your business card
֎ Deploy senior staff members to communicate and make announcements to general staff
֎ Respect is based on seniority and not necessarily on proficiency, skills or knowledge
֎ Lay out clear instructions and procedures to employees
Individualism IDV (India 48 v/s World Average 40)
Some tips for the low IDV workplace…
֎ Aim to build lasting relationships
֎ Expect low job turnover
֎ Reward/recognize the whole group/team, not individuals
֎ Avoid asking pointed questions
֎ Do not expect decisions to be made at meetings, as meetings are merely forums for exchange of
information
֎ Allow time in meetings for team members to consent and consult
֎ Be prepared to be asked personal questions or to be invited to family events by peers
22. 22April 25, 2014
Some tips for the low UAI workplace…
֎ Present a bottom line, an objective, then build your case around questions
֎ Expect frequent rescheduling of meetings
֎ It is a good idea to confirm a day before the scheduled meeting
֎ Be prepared for ambiguity and vagueness
7. Business Environment
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves specifying
the objective of the business venture or project and identifying the internal and external factors
that are favorable and unfavorable to achieve that objective.
A SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. Strategic Planning has been
the subject of much research.
Strengths: Characteristics of the business or team that give it an advantage over others in
the industry.
Weaknesses: Characteristics that place the firm at a disadvantage relative to others.
Opportunities: External chances to make greater sales or profits in the environment.
Threats: External elements in the environment that could cause trouble for the business.
The aim of any SWOT analysis is to identify the key internal and external factors that are
important to achieving the objective.
Indian industry has a developing economy. With improved investment and government
continual support, the industrial performance is expected to do better. But in large run, the
performance depends on how well the reforms of government are initiated. The investment and
growth in infrastructure, the continued availability of natural resources avail of low-cost, high
skill workforce and global market have huge impact on the economy.
S – Strengths
֎ Low investment infrastructure.
֎ It is a symbol of Craft Heritage.
֎ Scope of blending Blue Pottery with other crafts
֎ Traditional motifs: Traditional motifs the most important element of this craft, which
adds the value to this craft.
֎ Non communal craft, community such as Rajput, Prajaapt, Natt, Kumhar and Muslims
are involved in this trade.
֎ Raw material is available at low cost.
W - Weaknesses
֎ Presence of lead in glass cullet used in body composition make it unfit to use for
eatables items and export market.
֎ Regular degradation in the quality of design and painting at production level.
֎ Completion of orders not on time due to laborious and time taking process.
֎ Presence of moisture absorbing component in body.
֎ Fragileness of products creates difficulty in transportation.
23. 23April 25, 2014
֎ Lack of infrastructure for storage of raw material, non-fired finished products and fired
products.
֎ No testing lab for research and technical suggestion.
֎ No costing idea about the product. Sudden changes in prices.
֎ Appropriate process of costing is not followed by some artisans.
O - Opportunity
֎ There is an urgent requirement of new design interventions in the field of Body
composition, tools and machines.
֎ Scope to develop new surface design patterns according to the current market.
֎ More scope in handicraft export market.
֎ Provision of loan and profitable policies for small units.
֎ More scope of employment by involving other crafts in Blue pottery like Patwa, iron,
wood work.
֎ Vocational training of making small utility products like Jewellery and lifestyle
accessories products could be helpful to provide employment during monsoon.
T - Threats
֎ Lack of Unity
֎ Unhealthy competition with Jaipur Pottery. Similar looking products are available in
market.
֎ Young generation not interested in taking this craft as their profession.
֎ Leaving work: Due to no reasonable wages, laborious work, and regular craftsmen are
migrating to other regular jobs in nearby cities
֎ New trend of using clipart and other foreign
֎ No alternate of wood kiln.
8. Key Success Factors
Some key success factors or practical tips are given below:
1. Conceive the “Wining” Concept
A well-defined concept stands a much better chance of long-term success than some
vague notion. To start, it is wise to first set specific goals and decide on the framework
you will use to measure your company’s success.
2. Longevity
This can be described as the art of being able to maintain success over time while
adjusting to meet the changing periodic market demands according to the brand’s short
term objective and long term goals. To open Artisan successfully and become profitable
is one thing, but to maintain that success over a long period of time is “winning.”
3. Consistency
The main goal must be to truly develop a winning concept which requires implementing
systems and procedures to ensure consistency of quality and operations.
4. Expandability
Consistency of quality service, from out of the box ideas till executions can result in
further exploring opportunities while strengthening your image in the market place.
24. 24April 25, 2014
5. Service Costing
The most important factors in the strategic planning of a business is the development
of service portfolio and the corresponding cost. It involves designing service mix and
selection of quality human resources. Service costing is a very tricky task because you
need to quote project wise prices so that you can operate profitably and, just as
important, offer your targeted customers a good price/value relationship. The costing
would include the time input of the human resource which would be involved with the
client.
6. Market Research
This is probably the most critical factor for running a successful business. You need to
visit market; see how your ‘concept’ would fit into the sector you are planning to target.
Talk to customers to learn about their demands. The important point to note is that a
concept that has worked well in a particular geographical area may or may not work in
the other. Another point to note and take into consideration is competition. If your
market is saturated with similar companies and the client base may not be large enough,
you may want to rethink your concept.
Project Estimation
The start-up cost of the blue Pottery named “Artisan” consists primarily of firing equipment
and establish franchise. Active partner and a silent partner will invest equally. Artisan will also
secure a long-term loan.
Start-up Requirement
Start-up Expenses INR
Legal
Stationary
Broachers
Insurance
Warehouse rent
Decoration
50,000
150,000
60,000
300,000
50,000
250,000
Total Start-up Expenses 860,000
Start-up Assets
Start-up Assets INR
Cash Required
Building
Start-up Inventories
Delivery Vehicles
Furniture
1500,000
4,000,000
2500,000
700,000
250,000
Total Assets Require 8,950,000
Total Start-up Requirement 9,810,000
25. 25April 25, 2014
The following table and charts present projected profit and loss for the next three years.
Pro-Forma Profit and Loss
Year 1 Year 2 Year 3
Sales
Direct Cost of Sales
Gross Margin
6,200,000
3,160,000
3.040,000
7,400,000
3,400,000
4,000,000
8,800,000
3,750,000
5,050,000
Expenses
Manager Salaries
Payrolls
Sale & Marketing Expenses
Transportation Expenses
Utilities
Insurance
Rent
400,000
200,000
70,000
45,000
200,000
25,000
500,000
420,000
290,000
80,000
55,000
300,000
25,000
560,000
450,000
360,000
95,000
62,000
330,000
25,000
620,000
Total Expenses 1,440,000 1,730,000 1,942,000
Profit 1.600,000 2,270,000 3,108,000
Tax 240,000 340,500 466,200
Net Profit after Tax 1,360,000 1,929,500 2,642,300
The following table and charts present projected Balance Sheet for the next three years.
Pro-Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash
Inventories
Other current assets
1,530,000
2,830,000
500,000
1,840,000
3,460,000
650,000
2,375,000
3,985,000
780,000
Total Current Assets 4,860,000 5,950,000 7,140,000
Fixed Assets
Building
Delivery Vehicle
Furniture
4,000,000
700,000
250,000
4,000,000
1,400,000
360,000
4,600,000
1,700,000
480,000
Total Fixed Assets 4,950,000 5,760,000 6,780,000
Total Assets 9,810,000 11,710,000 13,920,000
Capital & Liabilities
Capital
Net profit
Liabilities
8.240,000
1,360,000
210,000
9,240,000
1,929,500
540,500
10,250,000
2,642,300
1,027,700
Total Capital & Liabilities 9,810,000 11,710,000 13,920,000
26. 26April 25, 2014
Competitive Advantage Matrix
Since we are providing low cost product so we have a competitive edge on that and also we are
providing bit differentiation on that so we have an edge in that.
28. 28April 25, 2014
Products
֎ Ashtrays of various type ֎ Candle stands of various form
֎ Bangle Holder ֎ Hukkah
֎ Boxes ֎ Coasters
֎ Beads ֎ Container with lids
֎ Bowls of various type ֎ Various animal shapes
֎ Bottle (Surahi type) with narrow mouth ֎ Incense stick holder
֎ Flower vases ֎ Jug
֎ Beer Mug ֎ Napkin ring
֎ Pen Holder ֎ Trays
֎ Pin Plate ֎ Trinket Box
֎ Soap Dish ֎ Wall Hangings
֎ Bathroom Sets ֎ Tumbler and many more
29. 29April 25, 2014
Marketing & Sales Strategy
We will allocate budget of 0.3 million for marketing activities every year. We will use
pamphlets and brochures to create awareness about our services in our target market. We will
also launch a website of our company, where customers can place order directly. We will use
electronic media, Facebook pages and other social networking sites to reach our target market
through internet.
Innovative Ideas
Innovative ideas for advertisement will be the top most priority of our agency.
Online advertisement
Online advertising is a form of promotion that uses the Internet and World Wide Web
for the expressed purpose of delivering marketing messages to attract customers.
Examples of online advertising include contextual ads that appear on search engine
results pages, banner ads, in text ads, Rich Media Ads, online classified advertising,
advertising networks and e-mail marketing, including e-mail spam.
Social networking
Social networking websites like face book, twitter etc. can be the place for advertising
the brand, while targeting the customers of our target market.
Product placements
Covert advertising, also known as guerrilla advertising, is when a product or brand is
embedded in entertainment and media. For example, in a film, the main character can
use an item or other of a definite brand.
In-store advertising
In-store advertising is any advertisement placed in a retail store. It includes placement
of a product in visible locations in a store, such as at eye level, at the ends of aisles and
near checkout counters (aka POP—Point Of Purchase display), eye-catching displays
promoting a specific product, and advertisements in such places as shopping carts and
in-store video displays.
30. 30April 25, 2014
Street advertising
Working with products such as Reverse Graffiti, air dancer's and 3D pavement
advertising, the media became an affordable and effective tool for getting brand
messages out into public spaces.
Radio advertising
Another advertising idea you may not have thought of is radio advertising. Running ads
on a local radio station can be both effective and relatively inexpensive.
Trade show participation.
One of the main reasons to participate in trade shows is to be seen and get known. While
participating in big trade shows can be quite expensive, there are a lot of smaller
opportunities that may work well for your business, from trade shows put on by local
business associations through trade shows focused on particular industries.
By choosing several of these advertising ideas and focusing on them, you’ll be able to grow
your customer base much more quickly than you would by relying on word-of-mouth alone.
Like any kind of marketing you do, of course, your small business advertising will be most
effective if you plan your advertising campaign and track your results.
Management & Personnel Requirements
֎ Manager
֎ Cashier
֎ 3 Salesmen (2 Men + 1 Woman)
֎ Others (Guard + Helper)
Important Points from Other Trade Stories.
Every Product Has A Story, So Share It.
Many fair trade crafts sold on the market today have informative story cards attached or nearby
them on the shelf, and there is a reason why. Including story cards with the products, it is simple
yet effective way of informing consumers about what makes your product special.
Cards often contain information on where the product was made and by whom, the artisan
groups’ mission and what material the craft is made of. If the Craft groups develop a website,
consider that as well, so the people interested in learning more about this craft may do so.
A Good Cause Does Ensure A Sale.
It is difficult to convince strangers to feel as passionately about our craft group’s mission. So
it is wise not to rely solely on charity to sell your crafts. Otherwise, we are limiting the amount
of people who will buy your products and restricting your own success. Instead, focus on the
merits of your products, including quality and aesthetic appeal.
Our products are handcrafted by village people but they sell because they are well made,
practically and aesthetically pleasing to customer.
Long Term Trade Relationships Are The Key To A Sustainable Business.
Building long term trade relationships is one of the core criteria. The goal in marketing should
be align with buyers who are interested in purchasing from your group on a continual basis,
otherwise, we may do our group more harm than good. For example:
31. 31April 25, 2014
If we make a sale of 50 plates, but are used to selling plates one at a time, we may need to hire
additional people and purchase more tools and supplies to fulfill the orders. If there are no
future orders, then you are left with increased overhead costs without the sales to support them.
By developing long term trade relationships, we encourage repeat business from which we can
utilize the consistent income to invest in and grow your business. Through personal
relationships with buyers over time, we can gain valuable insight about product design,
consumer demand, pricing and other important factors that will contribute to the future success
of your business.
Conclusion
India may be a complex and challenging market but it is one that cannot be ignored because
India is the second fastest growing economy, after China. The rising income and savings levels,
investment opportunities, huge domestic consumption and younger population will ensure
growth for decades to come. There has been strong growth in recent years as the government
has made a concerted effort to improve the economic strength of the nation. There is however
still a long way to go. Unfortunately it is also one of the poorest countries in the world.
Many organizations think they can simply transplant their normal ways of doing things into
India and expect it to work – it probably won’t! Understanding the Indian mindset, adapting
how your offering fits into Indian needs and keeping your eyes open to the rapid changes that
are happening in India on a daily basis – these are the keys to success in India.
One of the biggest obstacles to overcome when entering the India market or doing business
with India is definitely the cultural differences you will undoubtedly encounter. They do things
differently in India. India, therefore, represents a huge business opportunity but it also
undoubtedly presents risks. As painful as these political and bureaucratic barriers might seem,
India is definitely open for business and those companies and organizations that approach the
India market with the right mindset. India is the world’s largest potential market for goods and
services.
India along with several other developing countries of Asia is considered as one of the first
Asian countries to manufacture as well as export products of pottery. The story of Indian
handicrafts dates back to one of the oldest civilizations of the world. Indian pottery Industry
spread all over the country in rural and urban areas. The pottery industry in India provides mass
employment along with betterment of the living standards. Indian pottery products are very
much demanding in India, as they are a perfect mixture of traditional designs with modern
techniques. Despite of these modern technology and advancement India has not lost the charm
of its handicraft products.
36. 36April 25, 2014
West Kidwai Nagar, Delhi
Artisans Blue Pottery Program
artisans@bluepottery.com
www.artisan-bluepottery.com
Shop 34, Dilli Haat, Sri Aurobindo Marg,
