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INTERNATIONAL

BUSINESS ASSIGNMENT

SUBMITTED BYYASH CHANANA


MADHAV MITTAL
2 YEAR
SECTION B
SUBMITTED TOMRS SWATI SINGH

LOGO-

MISSION/OBJECTIVES
To be a premier organization in Developing, Promoting and Marketing of Quality
Indian Handicraft products.
OBJECTIVES
To produce, procure and sell quality handicrafts products and to develop markets
for these products in India and abroad.
To continue to improve the quality of Indian Handicrafts and to upgrade and
produce new designs.
To strengthen and expand the marketing network of the organization.
To generate adequate returns on Net Worth.
To manage trading activities so as to optimize sales and earnings and reduce
expenditure.

PESTLE ANALYSIS OF HANDICRAFT INDUSTRY

P- Political
America has always been friendly towards handicrafts, it is the worlds biggest importer
of handicrafts and no change can be seen in such a scenario. There is a large Indian vote
bank base in USA because of which no steps will be taken to decrease the import
handicrafts.
E- Economic
Foreign exchange rate is high between Indian Rupee and US$, this will help us,
whatever may be the cost of manufacturing, for American citizens the cost will be low
only. There is a demand for handicrafts made from jute but there is no big player in the
field for that, which can be helpful for us.
S- Social
There is a rise in the Indian population in USA because of which people are more aware
of Indian origin products and there is a demand for origin products. Indian handicrafts
being sold there are all high end handicrafts because of which not everyone buys them
but if they will be provided with cheaper options they will go for the product.
T- Technology
With the advent of the new age in technology, companies have completely integrated
themselves with all the recent changes that have taken place. To mention a recent trend
that has greatly picked up and something that almost every business is turning toward is
Social Media and E- commerce. The social media and E-commerce explosion has
allowed for increasingly interactive engagement with the consumers with developments
that take place where our handicrafts brand reach them in order to keep on increasing
brand recall and brand engagement
L-Legal
All exporters need Import Export Code issued by the Directorate General of Foreign
Trade to export in USA and abide by WTO rules. For our protection in USA there is law
The Indian Arts and Crafts Board which states that no American can sell handicrafts
which says made in India so our authenticity is also protected

E- EnvironmentHandicrafts products are much environment friendly as compared to other industries. We


will also have our focus on recyclable raw materials which can be used in production
handicrafts.

HOW TO ENTER FOREIGN MARKET AS EXPORTER

Export Promotion Council for Handicrafts (EPCH)


EPCH was established under Companies Act in the year 1986-87 as a non-profit
organization, with an object to promote, support, protect, maintain and increase the
export of handicrafts
For exporting Any person, firm or association of person, joint stock company or other
corporation or co-operative society who shall be engaged in the business of export of
Handicrafts can become a member. The prospective members are required to apply on
prescribed application form which can be obtained by paying Rs. 100/- in
cash/RTGS(details given below)/demand draft drawn in favor of Export Promotion
Council for Handicrafts payable at New Delhi. The entrance fee in the year of
Enrollment is Rs. 1000/- and Annual memberships fee is Rs. 2500/-(total
Rs.3500+12.36% service tax= Rs.3933).

ANK DETAILS
me Of the beneficiary

neficiary Address

Export Promotion Council for Handicrafts


EPCH House, Pocket 6&7, Sector-C, L.S.C., Vasant Kunj, New Delhi-110070

ANK NAME

ORIENTAL BANK OF COMMERCE

RANCH NAME

MAHIPALPUR, NEW DELHI-110037

URRENT ACCOUNT NO.

00291010002970

GS/IFSC CODE NO.

ORBC 0100029

Exporters having nil export performance in handicrafts can also enroll as member of the
Council

Membership of the Council is a pre-condition for obtaining (RCMC) Registration-cumMembership-certificate under Foreign Trade Policy. The RCMC can be obtained either
as a Merchant Exporter, Manufacturer Exporter or Merchant-cum-Manufacturer
Exporters as per documents submitted. Merchant exporter is he who procures products
from manufacturer or from other source and exports. A manufacturer exporter is he who
manufactures products in its own units or other units and exports.

Annual Subscription is due on 1st April of every year and is required to be paid by 30th
June. Annual Subscription amount is Rs. 2500/-+ 12.36% service tax = (total Rs.2809/-).
Entrance fees is to be paid one time and Membership fees to be paid every year which
will be due on 1st April every year and to be paid by 30th June.
Services being provided to its members by the Council :
The services of Export Promotion Council for Handicrafts to its members are as follows:

Providing commercially useful information and assistance to members in


developing and increasing exports.

Offering professional advice and services to members in areas of technology up


gradation, quality and design improvement, standards and specifications, product
development, innovation etc.

Organizing visits of delegation of its members abroad to explore overseas market


opportunities.

Participating in specialized International Trade Fairs of handicrafts & gifts.

Organizing Indian Handicrafts and Gifts Fair in India.

To create an environment of awareness through Workshops on "Export


Marketing, Procedures and Documentation", Packaging, Design Development,
Buyer Seller Meet, Open House etc. interaction with Central and State Govt. and
various other similar programmed.

Also can get financial benefit by participating in Councils led activities i.e.;
International fairs/Exhibitions, BSMS etc under Market Development Assistance
(MDA) as well as Market Access Initiative Scheme.

Duty free Import Certification,

Duty draw back & other benefits/incentives announced in Foreign Trade Policies
from time to time for the handicraft sector.

Certification of Handicrafts items,

Visa recommendation letter, subject to required documents.


What are the required documents for registration with the Council?

Along with the filled in application form, a self-attested copy of Importer Exporter Code
(IEC) is required to be furnished. If the applicant is a partnership firm, the partnership
deed will be required to be submitted along with the form. If the applicant is Pvt. Ltd,

Public limited firm, Corporation or Co-operative society a photocopy of certificate of


incorporation (memorandum of Article of Association) and resolution regarding the
signing authority has to be submitted. If an Export House applies for membership, the
copy of export House Certificate is to be enclosed. Also if an applicant desired RCMC
as manufacturer exporters, it must furnish certificate to this effect from District
Industries Centre (DIC) or Small Scale Industries (SSI).
How we will approach buyer
Export order can be solicited through one of the many of the following methods:

Approach Export Promotion Council's / Export Promotion Organizations /


Chambers / Trade Associations / National Centre for Trade Information [NCTI]
to get a list of Foreign Buyers of the product identified.

EPCH

ALLEPC's Chamber of Commerce & Trade Associations

Approach Export Promotion Council's for obtaining a list of overseas agents /


importers/ distributors / mail order houses / trade associations / import
organizations etc. for information on possible buyers / buying organizations.

Once information on above points is available then approach can be made to the
buyers or agents or others relevant for booking orders.

Following actions before approaching buyer:

To constitute a company for exports, open a bank account, obtain Importer


Exporter Code no. from DGFT for online form and get registered with the
concerned Export Promotion Organization.

Prepare publish and print a small catalogue on the company and its business line,
giving details of products to be exported.

Print promotional material on the product such as product profile, giving full
details of specifications also quality aspects.

Export prices to be fixed for each product both Freight On Board [FOB] and
Cost Insurance Freight [CIF] .
DISTRIBUTION CHANNEL-

The following are the major assistance / schemes for handicrafts exporters:

Focus Product Scheme:

In order to give thrust to the manufacturing and exports of Focus Products (Handicrafts
items) an incentive of 7% duty credit scrip facility is available to handicrafts exporters.

Duty drawback scheme for exporters:

The objective of the scheme is to refund the incidence of custom duty, excise duty
(additional custom duty), and service tax etc. on export products.

Marketing Development Assistance (MDA):

The assistance in terms of Reimbursement of Air fare & Space charges subject to
conditions is provided to exporters for participation in International shows.

Duty Free import provision of Consumables / Embellishments:

In order to enhance the quality of handicrafts products the member exporters of


handicrafts are allowed duty free import of consumables / embellishments and tools to
the tune of 5% of their export performance during the preceding financial year.

LabourGram Vikas Samiti Anwarpur is an NGO functioning in the villages of Anwarpur, Uttar
Pradesh. They basically provide a child with education upto class 12th and then they
teach him the work of an electrician, cutting and sewing, electronic mechanic. As of

2014 they have 3000+ students with them. They are looking for new jobs to teach these
students as well.
As a company we will require labour to be trained in Carpentry, Cutting and Sewing,
Plastic moulding, Jute. They already have a course for cutting and sewing and electronic
mechanic so we will have to provide for the rest. This will help the villagers, as they will
be provided jobs in their village itself therefore they wont have to leave their villages
and try to find job in the city which is one of the biggest problems they face.
For the company it will be great help as we will get a young labour force eager to learn
and work and that too at lesser cost. Industrial park have been setup in Ghaziabad and
very close to Anwarpur, we will buy a factory there itself. Those areas are provided with
24x7 electric and water supply. As well as many export industries are also setup there
which will be of great help to us as we will be exporting all of our products.
CSR
This will give the company a good reputation as we will be completing our CSR by
providing Gram Vikas Samiti, Anwarpur with funds and resources to teach those
students and we will be hearing them as well so we will be providing them with job
opportunities as well.

Competition
Indias closest competitor in handicraft sector is China. China comparative strengths in
some of important sectors are-

China is one of the leading producers of handicrafts with an around 30% share in the world trade of
handicrafts. It is also well known that tremendous mechanization has taken place in China in
production of handicrafts largely due to excessive demand in all kinds of handicrafts. In terms of

industry setup, private enterprises and enterprises invested with foreign capital are dominant in
Chinas handicraft manufacturing industry. Handicraft manufacturing industry is a labor-intensive
industry and is the traditional light industry of China. The industry is more oriented towards
production of craft items by use of technology and mass scale production.
Chinese manufacturers also send their machine-made craft items to the global market giving tough
competition to Indian suppliers as these machine-made products are low priced compared to that of
Indian hand-made crafts.
Indian hand-made items are in more demand than mostly machine-made Chinese products in
metalware, artware, giftware and wood craft categories.
This indicates that Indian handmade handicraft products are gaining demand in the global market,
including China.
Key export destinations for Indian handicrafts are USA, UK, Germany, UAE and France. In terms of
percentage, USA is the major export destination for Indian handicrafts, followed by UK. These two
markets together constitute of more than 50% of the total global export of Indian handicrafts, making
them the most favorable nations for our products. A comparison of handicraft under various
categories between India and China indicates that during a period of 3 years (2009-2011) China
handicraft export to all major markets has shown an increasing trend. Export values of China are
much higher in comparison to India, indicating better placement of Chinese handicraft products in the
global market. However, the demand of Indian handicrafts has increased in the last two year period.