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Working of an Export House
 A Case of Ahuja Overseas




                                 Page 1
Introduction:Free Powerpoint Templates

Company’s profile:

  AHUJA OVERSEAS was established in 1986 in Jaipur, India. It is run by
  Mrs Archana Ahuja, Mr Vijay Ahuja and Mr Ashish Ahuja. It is primarily
  manufacturers and exporters of women's, kids garments and home
  furnishing.

  It is an ISO 9001:2000 certified (Quality Management System) and WRAP
  certified (Certification of lawful, humane and ethical manufacturing)
  company. It is located in Malviya Nagar Industrial Area, Jaipur and have a
  manufacturing capacity of 1,00,000 units per month.


                                                                         Page 2
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Infrastructure:
•   500 Sewing machines on site.
•   25 Ari Embroidery Machines
•   25 Chicken Embroidery Machines
•   650 conveyer belt needle detector Machine
•   It has its own washing, dry cleaning and finishing units
•   Total workforce includes 230 people and an additional 200 people
    working on contractual basis.

Major Countries of export:
• Europe             • Australia
• Japan              • Argentina
• USA                • Switzerland
                                                                       Page 3
Cont’d               Free Powerpoint Templates




AHUJA OVERSEAS Customers:
Customers                      Countries
  Rapsodia                        Argentina
  95                              Argentina
  Alex                            Argentina
  Benditopie                      Argentina
  Eachet                          Switzerland
  Natura                          Spain
  Lelisblanc                      Brazil
  Funky People                    US
  Tamachi                         Japan
  Adventure group:                Japan
   - Capri
   - Gloria
   - Wagan
                                                 Page 4
Cont’d               Free Powerpoint Templates




Background of the problem task undertaken:

1. It is an opportunity to do the summer internship in AHUJA
   OVERSEAS which is a manufacturer & exporter of Woven garments
   and Knitted garments. Project on Export house is uncommon & that
   on an Apparel Export House is rare.

2. Learning the step-by-step processes & procedures to be followed in
   an export contract is a crucial activity in export procedure. So,
   selecting a project on export procedure & documentation is an
   obvious & important decision.


                                                                   Page 5
Cont’d
                     Free Powerpoint Templates




Project Objectives:

a) To understand the Apparel Business Processes.

b) To understand the working of various departments of AHUJA
   OVERSEAS contributing towards processing of an export order.

c) To understand the role of Merchandisers in AHUJA OVERSEAS.

d) To study the Export procedure and Documentation in AHUJA
   OVERSEAS.
                                                                  Page 6
Cont’d                   Free Powerpoint Templates




Research Methodology:
• Our primary objective of doing this project is to get the first hand
  knowledge of functioning of an export house. Since we are not comparing
  two different entities on the basis of their financial results, rather we are
  learning the export procedure. Hence exploratory research design is the
  need of the hour.
• Further there are few reasons which made me to use Exploratory
  Qualitative research:
• It is not always desirable or possible to use fully structured or formal
  methods to obtain information from respondents.
• People may be unable & unwilling to answer certain questions or unable to
  give truthful answers.
• People may be unable to provide accurate answer to question that tap their
  sub consciousness.
                                                                            Page 7
Cont’d                Free Powerpoint Templates




Thus, project research methodology is as follows:

• In Primary data, Qualitative research through In-Depth Interviews has been
  adopted. For interviews non– structured open-ended questions were used.

• In Secondary data, both internal & external research was done. For internal
  research Ready to use documents available with the organization were
  used. For external research Internet website & published books were
  consulted.




                                                                         Page 8
Cont’d               Free Powerpoint Templates




Limitations:

1. Concern about the validity.

2. Labour intensive data collection.

3. Conclusion & interpretation of qualitative research.

4. Need for training in qualitative research.

                                                          Page 9
Analysis and Free Powerpoint Templates
             Findings

 1. To understand the Apparel Business Process/ work flow.

 2. To understand the working of various departments of Ahuja
    Overseas contributing towards processing of an export order.

 3. To understand the role of Merchandisers in Ahuja Overseas.

 4. To study the Export procedure and Documentation in Ahuja
    Overseas.

 a) Pre – Shipment procedure
 b) Post – Shipment procedure

                                                                   Page 10
Cont’d           Free Powerpoint Templates




1. To understand the Apparel Business Process/ work flow:




                                                        Page 11
Cont’d                  Free Powerpoint Templates



A. Description of the Buyer Side of the Apparel Supply Chain:
• Apparel Design
• Production of samples and order collection
• Apparel Retail

B. Description of the Supplier Side of the Apparel Supply Chain:
• Fibre and Yarn Production
• Accessory Production

C. Description of the Manufacturer Side of the Apparel Supply Chain:
•   Fabric production
•   Apparel Production
•   Cutting and stitching
                                                                Page 12
•   Finishing, Packaging and Dispatch of Apparel
Cont’d
                       Free Powerpoint Templates



2. To understand the working of various departments of Ahuja
   Overseas contributing towards processing of an export order.
A. Departments Functions and Operations:
• Fabric (Gray) Department

• Washing and Dyeing Department

• Fabric Checking Department

• Cutting Department

• Stitching Department

• Finishing and Packaging Department

• Production Planning and Control (PPC) Department
                                                             Page 13
Cont’d
                   Free Powerpoint Templates



B. Manufacturing Process and Production:
Garment Process Flow Chart:




                                               Page 14
Cont’d
                      Free Powerpoint Templates




3. To understand the role of Merchandisers in Ahuja Overseas.


A. Merchandising Department

B. Marketing Design
• Spring

• Summer

• Fall/Autumn

• Holiday/Winter


                                                        Page 15
Cont’d                  Free Powerpoint Templates




4. To understand the Export Procedure in Ahuja Overseas.

A. Pre-Shipment Procedure:

•   On receiving the requisition & purchase order from merchant,
    documentation department issues an invoice. Two invoices are prepared
    i.e. commercial invoice& custom invoice.
•   Packing list is prepared which details the goods being shipped.

•   GSP certificate is prepared if the consignment is exported to EU or
    countries mentioned in the GSP list.
•   Buying house inspects the goods & issues an inspection certificate.
•   Certificate of origin is also issued and attached, if required.
                                                                          Page 16
Cont’d
                        Free Powerpoint Templates




B. Post-Shipment Procedure:

•   TT (telegraphic transfer) i.e. Wire Transfer – (Advance payment, as
    per the clause– 50% advance & remaining 50% on shipment)


• Letter of Credit: A letter of credit can be defined as “an undertaking by
    importer’s bank stating that payment will be made to the exporter if the
    required documents are presented to the bank within the variety of the L/C”.




                                                                          Page 17
Cont’d                 Free Powerpoint Templates



Export Documents:
1.    Invoice (Commercial invoice & Customs invoice)
2.    Packing list
3.    Certificate of Inspection
4.    Certificate of Origin
5.    GSP(Generalized System of Preference)
6.    IEC Certificate
7.    Wearing Apparel Sheet
8.    Bill of Lading
9.    Airway Bill
10.   Mate's Receipt
11.   Shipping Bill
12.   Letter of Credit                                 Page 18
Learning’s Free Powerpoint Templates

• International Trade process.

• Working in various department of an Export House.

• The role of the merchandiser in different department.

• Learnt about garment industry.

• Apparel production process.

• International trade documentation.

• Learnt about working of an Export House.



                                                          Page 19
Conclusion Free Powerpoint Templates

• The study was conducted to know the process involved in an apparel firm
  and to study about the various departmental functions which coordinates to
  complete the export cycle.
• The other basic objective of the study is to know about the merchandiser’s
  role in the export house and it is found that they play a very important and
  wide role from the starting of the order generation to the shipment and
  provide linkage between various departments.
• The export procedure of the firm has been seen clearly and other related
  aspect has been known. The documents that are required for the export are
  very much in numbers.
• This makes the export procedure complex but with this study we are able to
  know about the export procedure and the various documents that are
  required for the export.

                                                                             Page 20
Bibliography:Powerpoint Templates
           Free



•   Puri, V. K., Exporters’ Guidelines, A Basic Book on How to Export as per Govt. Policy &
    Procedures, 2nd Edition, JBA Publishers, 2008-09.
•   Paul, Justin & Aserkar, Rajiv, Export Import Management, 2nd Edition, Oxford University Press,
    2009, Chapter – 2, pp. 17-29.
•   Malhotra, Naresh K., Marketing Research, An Applied Orientation, Fourth Edition, Pearson
    Prentice Hall, 2005, Part II, pp. 71-340.
•   Balagopal T.A.S, “Export Management”, Himalaya Publishing House, nineteenth edition 2007
•    Jeevanandam.C., “Foreign Exchange- practice, concepts and control”, Sultan Chand and Sons, tenth
    edition 2007
•   Kothari C.R., “Research Methodology, Method & techniques”, New Age International. Pvt. Ltd,
    Second Edition, 1985
•   Mahajan M.I.,” A guide on export policy, procedure and documentation”, Tata McGraw hill
    publishing company ltd, Third Edition 2005
•    Dr.Varma.M.M. & Aggarwal R.K, “Foreign Trade Management”, King Book, second edition 2006
•    Puri, V. K., “Exporters’ Guidelines, A Basic Book on How to Export as per Govt. Policy &
    Procedures”, 2nd Edition, JBA Publishers, 2008-09
•   Paul, Justin & Aserkar, Rajiv, “Export Import Management”, 2nd Edition, Oxford University Press,
    2009, Chapter – 2, pp. 17-29.
•   http://www.slideshare.net/kavi7689/36247756-exportproceduredocumentation
                                                                                                 Page 21
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           Thank you..
Presented by
Vishal Asauliya
MFM 2011-2013
                                          Page 22

Working of an export house

  • 1.
    Free Powerpoint Templates Workingof an Export House A Case of Ahuja Overseas Page 1
  • 2.
    Introduction:Free Powerpoint Templates Company’sprofile: AHUJA OVERSEAS was established in 1986 in Jaipur, India. It is run by Mrs Archana Ahuja, Mr Vijay Ahuja and Mr Ashish Ahuja. It is primarily manufacturers and exporters of women's, kids garments and home furnishing. It is an ISO 9001:2000 certified (Quality Management System) and WRAP certified (Certification of lawful, humane and ethical manufacturing) company. It is located in Malviya Nagar Industrial Area, Jaipur and have a manufacturing capacity of 1,00,000 units per month. Page 2
  • 3.
    Cont’d Free Powerpoint Templates Infrastructure: • 500 Sewing machines on site. • 25 Ari Embroidery Machines • 25 Chicken Embroidery Machines • 650 conveyer belt needle detector Machine • It has its own washing, dry cleaning and finishing units • Total workforce includes 230 people and an additional 200 people working on contractual basis. Major Countries of export: • Europe • Australia • Japan • Argentina • USA • Switzerland Page 3
  • 4.
    Cont’d Free Powerpoint Templates AHUJA OVERSEAS Customers: Customers Countries Rapsodia Argentina 95 Argentina Alex Argentina Benditopie Argentina Eachet Switzerland Natura Spain Lelisblanc Brazil Funky People US Tamachi Japan Adventure group: Japan - Capri - Gloria - Wagan Page 4
  • 5.
    Cont’d Free Powerpoint Templates Background of the problem task undertaken: 1. It is an opportunity to do the summer internship in AHUJA OVERSEAS which is a manufacturer & exporter of Woven garments and Knitted garments. Project on Export house is uncommon & that on an Apparel Export House is rare. 2. Learning the step-by-step processes & procedures to be followed in an export contract is a crucial activity in export procedure. So, selecting a project on export procedure & documentation is an obvious & important decision. Page 5
  • 6.
    Cont’d Free Powerpoint Templates Project Objectives: a) To understand the Apparel Business Processes. b) To understand the working of various departments of AHUJA OVERSEAS contributing towards processing of an export order. c) To understand the role of Merchandisers in AHUJA OVERSEAS. d) To study the Export procedure and Documentation in AHUJA OVERSEAS. Page 6
  • 7.
    Cont’d Free Powerpoint Templates Research Methodology: • Our primary objective of doing this project is to get the first hand knowledge of functioning of an export house. Since we are not comparing two different entities on the basis of their financial results, rather we are learning the export procedure. Hence exploratory research design is the need of the hour. • Further there are few reasons which made me to use Exploratory Qualitative research: • It is not always desirable or possible to use fully structured or formal methods to obtain information from respondents. • People may be unable & unwilling to answer certain questions or unable to give truthful answers. • People may be unable to provide accurate answer to question that tap their sub consciousness. Page 7
  • 8.
    Cont’d Free Powerpoint Templates Thus, project research methodology is as follows: • In Primary data, Qualitative research through In-Depth Interviews has been adopted. For interviews non– structured open-ended questions were used. • In Secondary data, both internal & external research was done. For internal research Ready to use documents available with the organization were used. For external research Internet website & published books were consulted. Page 8
  • 9.
    Cont’d Free Powerpoint Templates Limitations: 1. Concern about the validity. 2. Labour intensive data collection. 3. Conclusion & interpretation of qualitative research. 4. Need for training in qualitative research. Page 9
  • 10.
    Analysis and FreePowerpoint Templates Findings 1. To understand the Apparel Business Process/ work flow. 2. To understand the working of various departments of Ahuja Overseas contributing towards processing of an export order. 3. To understand the role of Merchandisers in Ahuja Overseas. 4. To study the Export procedure and Documentation in Ahuja Overseas. a) Pre – Shipment procedure b) Post – Shipment procedure Page 10
  • 11.
    Cont’d Free Powerpoint Templates 1. To understand the Apparel Business Process/ work flow: Page 11
  • 12.
    Cont’d Free Powerpoint Templates A. Description of the Buyer Side of the Apparel Supply Chain: • Apparel Design • Production of samples and order collection • Apparel Retail B. Description of the Supplier Side of the Apparel Supply Chain: • Fibre and Yarn Production • Accessory Production C. Description of the Manufacturer Side of the Apparel Supply Chain: • Fabric production • Apparel Production • Cutting and stitching Page 12 • Finishing, Packaging and Dispatch of Apparel
  • 13.
    Cont’d Free Powerpoint Templates 2. To understand the working of various departments of Ahuja Overseas contributing towards processing of an export order. A. Departments Functions and Operations: • Fabric (Gray) Department • Washing and Dyeing Department • Fabric Checking Department • Cutting Department • Stitching Department • Finishing and Packaging Department • Production Planning and Control (PPC) Department Page 13
  • 14.
    Cont’d Free Powerpoint Templates B. Manufacturing Process and Production: Garment Process Flow Chart: Page 14
  • 15.
    Cont’d Free Powerpoint Templates 3. To understand the role of Merchandisers in Ahuja Overseas. A. Merchandising Department B. Marketing Design • Spring • Summer • Fall/Autumn • Holiday/Winter Page 15
  • 16.
    Cont’d Free Powerpoint Templates 4. To understand the Export Procedure in Ahuja Overseas. A. Pre-Shipment Procedure: • On receiving the requisition & purchase order from merchant, documentation department issues an invoice. Two invoices are prepared i.e. commercial invoice& custom invoice. • Packing list is prepared which details the goods being shipped. • GSP certificate is prepared if the consignment is exported to EU or countries mentioned in the GSP list. • Buying house inspects the goods & issues an inspection certificate. • Certificate of origin is also issued and attached, if required. Page 16
  • 17.
    Cont’d Free Powerpoint Templates B. Post-Shipment Procedure: • TT (telegraphic transfer) i.e. Wire Transfer – (Advance payment, as per the clause– 50% advance & remaining 50% on shipment) • Letter of Credit: A letter of credit can be defined as “an undertaking by importer’s bank stating that payment will be made to the exporter if the required documents are presented to the bank within the variety of the L/C”. Page 17
  • 18.
    Cont’d Free Powerpoint Templates Export Documents: 1. Invoice (Commercial invoice & Customs invoice) 2. Packing list 3. Certificate of Inspection 4. Certificate of Origin 5. GSP(Generalized System of Preference) 6. IEC Certificate 7. Wearing Apparel Sheet 8. Bill of Lading 9. Airway Bill 10. Mate's Receipt 11. Shipping Bill 12. Letter of Credit Page 18
  • 19.
    Learning’s Free PowerpointTemplates • International Trade process. • Working in various department of an Export House. • The role of the merchandiser in different department. • Learnt about garment industry. • Apparel production process. • International trade documentation. • Learnt about working of an Export House. Page 19
  • 20.
    Conclusion Free PowerpointTemplates • The study was conducted to know the process involved in an apparel firm and to study about the various departmental functions which coordinates to complete the export cycle. • The other basic objective of the study is to know about the merchandiser’s role in the export house and it is found that they play a very important and wide role from the starting of the order generation to the shipment and provide linkage between various departments. • The export procedure of the firm has been seen clearly and other related aspect has been known. The documents that are required for the export are very much in numbers. • This makes the export procedure complex but with this study we are able to know about the export procedure and the various documents that are required for the export. Page 20
  • 21.
    Bibliography:Powerpoint Templates Free • Puri, V. K., Exporters’ Guidelines, A Basic Book on How to Export as per Govt. Policy & Procedures, 2nd Edition, JBA Publishers, 2008-09. • Paul, Justin & Aserkar, Rajiv, Export Import Management, 2nd Edition, Oxford University Press, 2009, Chapter – 2, pp. 17-29. • Malhotra, Naresh K., Marketing Research, An Applied Orientation, Fourth Edition, Pearson Prentice Hall, 2005, Part II, pp. 71-340. • Balagopal T.A.S, “Export Management”, Himalaya Publishing House, nineteenth edition 2007 • Jeevanandam.C., “Foreign Exchange- practice, concepts and control”, Sultan Chand and Sons, tenth edition 2007 • Kothari C.R., “Research Methodology, Method & techniques”, New Age International. Pvt. Ltd, Second Edition, 1985 • Mahajan M.I.,” A guide on export policy, procedure and documentation”, Tata McGraw hill publishing company ltd, Third Edition 2005 • Dr.Varma.M.M. & Aggarwal R.K, “Foreign Trade Management”, King Book, second edition 2006 • Puri, V. K., “Exporters’ Guidelines, A Basic Book on How to Export as per Govt. Policy & Procedures”, 2nd Edition, JBA Publishers, 2008-09 • Paul, Justin & Aserkar, Rajiv, “Export Import Management”, 2nd Edition, Oxford University Press, 2009, Chapter – 2, pp. 17-29. • http://www.slideshare.net/kavi7689/36247756-exportproceduredocumentation Page 21
  • 22.
    Free Powerpoint Templates Thank you.. Presented by Vishal Asauliya MFM 2011-2013 Page 22