Problem And Prospectus Of Export House


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Problem And Prospectus Of Export House

  1. 1. Problems and Prospects of export houses in apparels Prepaired by: - 25. Pawan Kumar 29.Prashant Bansal 38. Rohit Chawla Presented to: - Mr. Shashank Mehra Faculty Of Marketing Research
  2. 2. CONTENTS <ul><li>Rationale </li></ul><ul><li>Objectives </li></ul><ul><li>Background study </li></ul><ul><li>Problems faced by export industry </li></ul><ul><li>Variables </li></ul><ul><li>Conclusion </li></ul>
  3. 3. OVERVIEW <ul><li>India- one of the major exporter of textiles and clothing </li></ul><ul><li>Textile exports- major job providers </li></ul><ul><li>Strengthening of Indian currency </li></ul><ul><li>Effect on export sector </li></ul><ul><li>Government participation </li></ul>
  4. 4. RATIONALE OF THE RESEARCH <ul><li>To know the core of the problems faced by the export houses in India </li></ul><ul><li>To enhance our knowledge in this sector </li></ul><ul><li>Understanding of the foreign trade policies </li></ul><ul><li>To know the need of the foreign buyers which suits their culture? </li></ul><ul><li>To increase the awareness of the export promotion </li></ul>
  5. 5. OBJECTIVES <ul><li>To gain the understanding of the problems faced by export houses </li></ul><ul><li>Collect the data of these problems and discuss with experts </li></ul><ul><li>To gain the understanding of the measures taken by Government </li></ul><ul><li>To find out the main causes of declining phase of the Indian exports </li></ul>
  6. 6. CONTN………. <ul><li>To provide the way to the export houses about taking care of the things that are recommended by the ministry of commerce </li></ul><ul><li>To improve the knowledge about the role of the government in providing assistance to these export houses </li></ul>
  7. 7. BACKGROUND STUDY <ul><li>India- growing @ a faster </li></ul><ul><li>rate in global scenario </li></ul><ul><li>Total exports are rising </li></ul><ul><li>@ 20% and more </li></ul><ul><li>Is keeps on rising year </li></ul><ul><li>after year </li></ul>
  8. 8. CONTN……… <ul><li>Indian is the one of the major gainers in the years to come </li></ul><ul><li>India is gaining strength in the global economy as is evident in the robust growth of the merchandise </li></ul><ul><li>India expects to reach its proposed target of 1.5% of global merchandise trade by 2009. </li></ul>
  9. 9. CONTN……… <ul><li>The export in the year 2006-2007 and 2007-2008 </li></ul>
  10. 10. CONT………. Exports & Imports Provisional November April-November Exports (including re-exports) US$ million Rs. In crores US$ million Rs. In crores 2006-07 9797.67 43943.22 80590.19 368807.15 2007-08 12425.11 49000.16 98386.06 398385.78 %Growth 2007-08/2006-07 26.82 11.51 22.08 8.02 Imports       2006-07 15342.36 68811.54 119078.24 544674.11 2007-08 19831.79 78209.43 151190.37 612356.61 %Growth 2007-08/2006-07 29.26 13.66 26.97 12.43 Trade deficit( exports –imports)       2006-07 -5544.69 -24868.32 -38488.04 -175866.96 2007-08 -7406.68 -29209.27 -52804.31 -213970.83
  11. 11. Commodity April- Oct 2006 April- Oct 2007 Textile 42,817.07 39,365.34 RMG 22,954.81 19,978.37 Cotton, yarns, fabrics 11,209.70 10,334.81 Man-made Textiles & made-ups 6,092.12 6,875.33 Natural silk textiles 1,154.44 878.9 Wool & woolen manufactures 228.13 196.41 Coir & coir manufactures 368.98 375.22 Jute manufactures 808.89 728.29
  12. 12. <ul><li>Readymade garments occupy first position among textile exports </li></ul>Financial year RMG export %-age of total textile exports 2001-02 45.08% 2002-03 46% 2003-04 42% 2004-05 44% 2005-06 45%
  13. 13. CONTN……….
  14. 14. <ul><li>India is doing pretty well in the international scenario </li></ul><ul><li>India is also giving good competition to it in various sectors. </li></ul><ul><li>Amongst the developing countries India has competitive position as shown in this diagram </li></ul>
  15. 15. CONTN………..
  16. 16. CONTN……… <ul><li>India is at 9th place amongst the developing countries in terms of market share globally </li></ul>
  17. 17. ABOUT MFA <ul><li>The textile and clothing sector in the US and Europe have been protected by such quota systems since the 1950s, </li></ul><ul><li>The Short Term Arrangement (STA) on cotton textiles was then signed in 1961 </li></ul><ul><li>It was introduced in 1974 as a short term measures (explain the intro) </li></ul>
  18. 18. CONTN……… <ul><li>trade restrictions placed on those countries that were major exporters of textile and apparel </li></ul><ul><li>the EU, Austria, Canada, Finland, Norway, and the US applied the quotas almost exclusively to developing country exports </li></ul>
  19. 20. FEMA (ACT) <ul><li>FEMA came into act on the 1st day of June, 200O </li></ul><ul><li>The Foreign Exchange Management Act (1999) has been introduced as a replacement for earlier Foreign Exchange Regulation Act (FERA) </li></ul>
  20. 21. CONTN……….. <ul><li>The main objective behind the FEMA is </li></ul><ul><li>is to consolidate and amend the law relating to foreign exchange with objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India. </li></ul>
  21. 22. WORLD’S OF EXPORTS DATA IN APPARELS 2004 2005 2006 % change
  23. 26. CONTN……… <ul><li>Low cost of raw material </li></ul><ul><li>High technology </li></ul><ul><li>CHANGING ATTITUDE OF BUYERS AND FREQUENT CHANGE IN FASHION </li></ul><ul><li>SAMPLE CHECK </li></ul><ul><li>QUALITY PROBLEM </li></ul><ul><li>Unskilled labor </li></ul><ul><li>Daily wages </li></ul>
  24. 27. VARIABLES <ul><li>Small scale of operations </li></ul><ul><li>Poor roads </li></ul><ul><li>Sales tax and Octroi check posts </li></ul><ul><li>Local regulation on road use </li></ul><ul><li>Absence of express highways </li></ul><ul><li>Higher power costs </li></ul>
  26. 46. Component 1 Polices of Indian Govt. .755 Job Opportunity .808 Workers satisfied with working condition and remuneration .867
  27. 47. When order is not a problem
  28. 48. <ul><li>Component : - </li></ul><ul><li>Not forward order on time .562 </li></ul><ul><li>Problem at time of production .875 </li></ul><ul><li>Problem face in sampling .702 </li></ul><ul><li>Buyer concern about Quality- .833 </li></ul>
  29. 49. Conclusions and recommendations <ul><li>Government should invest more in research and development. </li></ul><ul><li>Export houses should better take care of the buyers specifications and provide them good quality products. </li></ul><ul><li>Exporters should be better aware of the government policies. </li></ul><ul><li>Exporters should invest in technological tools, and come at par to compete with their foreign competitors. </li></ul>
  30. 50. <ul><li>Thank You </li></ul>