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INTERNSHIP REPORT

D.K.Creations pvt. Ltd.

SUBMITTED BY - HIMANSHU RAJPUT, BBA (M&S) - 2nd YEAR


Enrollment No. – A3914708051

UNDER THE
SUPERVISION OF – MR. DEVENDER GUPTA (DIRECTOR)

FROM

3rd MAY, 2010

TO

26th JUNE, 2010

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ACKNOWLEDGEMENT

My summer training was done under the guidance of Mr. Devender Gupta,
Director, D.K. Creations pvt. Ltd. in New Delhi. It gave me an opportunity to
learn some of the aspects of marketing just because of him.

I am also thankful to Mr. Devender Kumar, Manager, Shiv International, for


guiding me to complete my internship. The company co-operated with me to the
fullest inspite of the fact that I knew nothing about the industry before joining it.

I am thankful to Mr. Vivek Ahuja, my faculty guide for his invaluable inputs.
However, this journey would not be complete without expressing my indebtedness
to my faculty guide, whose suggestions and guidance has been extremely helpful
in finalizing this report.

HIMANSHU RAJPUT
BBA (M&S) 2008-2011

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ABSTRACT

D.K. Creations Private Limited is a manufacturer and exporter of Home furnishing


and Made-ups, established in year 1996.

With a total production capacity of 40,000 pcs./ Annum and a product range in
home furnishing and made-ups, like: Quilts, Bed Spread, Pillow shams and others.

I carried out a detailed observation of company’s marketing profile and the selling
pattern of the company to others. As the company deals in quilts and fabrics, I got
to know about the chain of clothes and fabrics. The company also supplies the
clothes to other manufacturing companies in various forms. I worked with the
dealing team of D.K. Creations private limited and I was the part of fabric dealing
to Shiv International, also an home furnishing company. I worked with them for 3
days

I have learnt how to make a sampling format for the buyers of the company.
The company send the samples through couriers and also through e-mails. Firstly
an e-mail is sent to the buyers and if they are interested in it, the courier is been
delivered to them in within 3 to 4 days. I also visited the showroom of the
company.

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TABLE OF CONTENTS

S.NO. TITLE PAGE NO.

INTRODUCTION
: - Textile Industry 6
: - SWOT 7
: - Segments
- Cotton 9
- Silk 11
(1)
- Woolen 13
- Readymade 14
- Jute 16
: - D.K. Creations pvt. Ltd. 18
: - Buyers
- Domestic 20
- Global 21
(2) MATERIALS AND METHODS 23
(3) RESULTS AND DISCUSSIONS 24
(4) CONCLUSION AND 27
RECOMMENDATION
(5) FUTURE PROSPECTS 29
(6) APPENDICES
: - Heimtextil 2010 30
(7) REFERENCE AND BIBLIOGRAPHY 33

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PREFACE

The purpose of this report is to explain what I did and learnt during my internship
period with D.K. Creations Pvt. Ltd. in buying and selling of goods to other
companies.

The report focuses primarily on the assignments handled, working environment,


successes and short comings that the intern did encounter when handling various
tasks assigned to him by the supervisor.

Because the various parts of the report reflect the intern’s shortcomings, successes,
observations and comments, it would be imperative that the recommendations are
also given. Therefore the report gives a number of comments and
recommendations on the internship programme.

It is hoped that this report would serve as a cardinal vehicle to the improvement of
the internship program.

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INTRODUCTION

TEXTILE INDUSTRY:- The textile industry is a term used for industries


primarily concerned with the design or manufacture of clothing as well as the
distribution and use of textiles.

India Textile Industry is one of the leading textile industries in the world. Though
was predominantly unorganized industry even a few years back, but the scenario
started changing after the economic liberalization of Indian economy in 1991. The
opening up of economy gave the much-needed thrust to the Indian textile industry,
which has now successfully become one of the largest in the world.

India textile industry largely depends upon the textile manufacturing and export. It
also plays a major role in the economy of the country. India earns about 27% of its
total foreign exchange through textile exports. Further, the textile industry of India
also contributes nearly 14% of the total industrial production of the country. It also
contributes around 3% to the GDP of the country. India textile industry is also the
largest in the country in terms of employment generation. It not only generates
jobs in its own industry, but also opens up scopes for the other ancillary sectors.
India textile industry currently generates employment to more than 35 million
people. It is also estimated that, the industry will generate 12 million new jobs by
the year 2010.

India textile industry is estimated to be around US$ 52 billion and is also projected
to be around US$ 115 billion by the year 2012. The current domestic market of
textile in India is expected to be increased to US$ 60 billion by 2012 from the
current US$ 34.6 billion. The textile export of the country was around US$ 19.14
billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share
of exports is also expected to increase from 4% to 7% within 2012. Though during

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the year 2008-09, the industry had to face adverse agro-climatic conditions, it
succeeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last
year, yet managed to retain its position as world's second highest cotton producer.

SWOT ANALYSIS:

Strengths:

1. Indian Textile Industry is an Independent & Self-Reliant industry.


2. Abundant Raw Material availability that helps industry to control costs and
reduces the lead-time across the operation.
3. Availability of Low Cost and Skilled Manpower provides competitive
advantage to industry.
4. India is one of the largest exporters of Yarn in international market and
contributes around 25% share of the global trade in Cotton Yarn.
5. Industry has large and diversified segments that provide wide variety of
products.
6. Growing Economy and Potential Domestic and International Market.

Weaknesses:
1. Indian Textile Industry is highly Fragmented Industry.
2. Industry is highly dependent on Cotton.
3. Lower Productivity in various segments.
4. Lack of Technological Development that affect the productivity and other
activities in whole value chain.
5. Unfavorable labor Laws.
6. Higher Indirect Taxes, Power and Interest Rates.

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Opportunities:
1. Growth rate of Domestic Textile Industry is 6-8% per annum.
2. Large, Potential Domestic and International Market.
3. Market is gradually shifting towards Branded Readymade Garment.
4. Increased Purchasing Power of Indian Customer opens New Market
Development.
5. Emerging Retail Industry and Malls provide huge opportunities for the
Apparel, Handicraft and other segments of the industry.

Threats:
1. Competition from other developing countries, especially China.
2. Geographical Disadvantages.
3. Environmental Laws.
4. To balance the demand and supply.
5. To make balance between price and quality.

SEGMENTS:

Indian textile industry can be divided into several segments, some of which can be
listed as below:

• Cotton Textiles
• Silk Textiles
• Woolen Textiles
• Readymade Garments
• Jute Textiles

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Cotton Textiles

Cotton textiles count among the oldest industries in India. One can follow it back
to the times of Indus Valley Civilization, when cotton fabrics of India were in
great demand even in the countries of Europe and West Asia. It used to be a
cottage or village industry during those times. The spinning wheel comprised its
only machine- simple but exceedingly inventive. The modern textile industry in
India first began at Fort Gloster near Kolkata in early 19th century.

But it in reality made a head start in Mumbai in the year 1854 when a cotton
textile mill was set up there exclusively out of Indian funds.

The cotton textile industry in India provides livelihood to farmers, and workers
engaged in ginning, spinning, weaving, dying, designing and packaging, not
leaving sewing and tailoring. It is India`s one of the most traditional and esteemed
industry. More importantly, the industry strikes a rational balance between
tradition and modernity. Cotton textile industry in India has all along prospered on
its own funds.

On the other hand, the country possesses the most contemporary capital intensive
and high speed mill-produced cloth with a huge market both at home as well as
abroad.

The fabrics are basically produced in three sectors - mills, power looms and
handlooms. Together they account for around 98.5 percent of the fabrics produced
in the country. The mill sector accounts for only 5.2 percent of the total fabrics
produced in the country, whereas power looms and handlooms are responsible for
nearly 73 percent and 20.3 percent respectively. For example, the whole sari sector
is earmarked for handloom and power loom sectors. The latter also produces
hosiery on a vast scale, by and large for export purposes.

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India also exports quality yarn to Japan and other European economic
communities.

In India cotton textiles production is basically located in Maharashtra, Tamil


Nadu and provinces of Gujarat. Interestingly, several government programmes
have sustained cotton textile industries in almost all the states in the country. In
the country, because of irrigation restrictions, cotton textile productions are
heavily dependent on monsoon season. Further, in 1997 and 1998 the country had
produced 37.4 billion metres of fabrics. Now the proportion between natural and
human-made fibre is almost equal. The important centres of cotton textiles
industry comprise Mumbai, Ahmadabad, Coimbatore, Madurai, Indore,

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Kanpur, Delhi and Hyderabad.
Silk Textiles

The silk tradition is one of the oldest in India and sericulture is a labour
concentrated industry. It demands nurturing of silkworms, which are exceedingly
ravenous. Silk is said to be the Queen of Textiles and it has the charm that can
hexes the elegance, luxury, comfort and class. As per the history, silk was
introduced before 4,500 years and India is said to be the second largest producer
of silk in the world.

By its natural sheen and luster, silk creates a spell in terms of grandeur and
ethnicity. It has been maintaining its own qualitative mark in the Indian market
despite of strict and daunting competition in the local market.

The production of silk is considered to be one of the major means of developing


the economic status and foreign exchange of a country. Karnataka, Tamil Nadu,
Andhra Pradesh, Assam, West Bengal, Bihar, Uttar Pradesh and Madhya
Pradesh are the states producing unprocessed silk. Among these states, West
Bengal, Andhra Pradesh, Tamil Nadu, Karnataka and Jammu & Kashmir are
reckoned for producing mulberry silk and Chhattisgarh, Orissa, Jharkhand, and
north-eastern states are well recognized for producing non-mulberry silks. In
1980-81 production of silk was 5,000 tones. As Japan has pulled away from this
industry, India stands a very good chance to fill in the breach. The country would
need 30,000 tones in near future. India brought in almost 250 crore rupees worth
of foreign exchange through export of silk items. China however, continues to top
the world in production of silk and its exports.

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Woolen Textiles

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Woolen textile in India has come to a prodigious position after the economic
liberalization in India in the 1990. There are more than 50 woolen mills in the
country. Many of them are based in Punjab with Amritsar and Ludhiana serving as
the key centres. The other centres of the industry include Mumbai, Bengaluru,
Jamnagar, Kanpur and Srinagar. Indian woolen textile has been developed in
Punjab, Uttar Pradesh, Maharashtra, Rajasthan, Haryana, Jammu and Kashmir,
Gujarat, Uttaranchal, Andhra Pradesh and Karnataka. The Government of India
has taken necessary steps for the development of woolen textiles in India.

India mostly manufactures coarse wool that finds extensive use in the production
of quality carpets and blankets. Fine quality wool required for weaving, knitting
and hosiery yarn is produced in small proportion in Himachal Pradesh as well as in
Jammu and Kashmir. First woolen mill in the country was founded in the year
1876 at Kanpur.

Sheep breeding farms are being established in parts of north western India for
improving upon the quality and for augmenting the quantity of wool. Positively,
the manufacture of carpet yarn has made a significant progress over the paste few
decades as it is entirely based on indigenous wool. Indian hand made shawls and
rugs are well known throughout the world for their rich design and texture.
Besides, shawls and rugs, India manufactures diverse variety of exquisite woolen
fabrics, pullovers, cardigans and blankets.

Readymade Garments

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Ready-made garments account for approximately 45% of India's total textile
exports.

They represent value added and less import sub sector. India's thrust into ready
made garment production started in the early 80s in the wake of the liberalization,
received a big impetus during economic reforms in the early 90's and during the
last two decades, has moved to the Tenth position, in the World's best textile
export country of ready made garments.

Ready made garments are India's leading export products and achieved rapid
growth in the late 1980s and the first half of the 1990s. However, India's share of
world ready made garments exports has not risen since 1994. The immediate cause
is apparently the slowdown in the import growth of India's major markets, namely,
the United States and the EU.

The export of ready made garments, which was to the tune of 253.6 million pieces,
valued at US$ 826.5 million during January-February 2002 has increase in
quantitative terms to 306.1 million pieces, valued at US$ 1137.9 million, up by
20.07% in quantity and by 37.68% in value terms, during January-February 2003,

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when compared with the same period last year.

The USA, EU Member States, U.A.E., Japan, Saudi Arabia, Canada, Hong Kong,
Switzerland and Australia have been the major importing countries of our Indian
ready-made garments. In India, Ludhiana, Delhi, Bangalore, Mumbai and Chennai
are unique and dynamic centers of production.

India is at present a niche player in the low-value market segment based on cotton
fabrics and for seasonal and fashion garments. This reflects India's comparative
advantage in cotton cloth and its flexibility advantage in meeting small orders.

Jute Textiles

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Jute textiles or jute industries in India are highly localized industry. There were
very few jute industries at the time of the independence of the country and their
number has proportionally increased considerably over the years. The jute mills of
India provide employment to a huge number of people. Kolkata and Naihati in
West Bengal account for the maximum proportion of jute mills in the country.
The jute mills of Naihati have been set up close to the banks of Hooghly River. It
is one of the principal jute products manufacturing centres in India. The first jute
mill in the country was established as early as 1859. It was established by some
British industrialists. Being an export oriented industry, it had expanded very
swiftly. After partition of the country, most of the mills remained in India, but
around three-fourth of the total jute producing area went to neighbouring country.
Apart from the jute industry located near the banks of Hooghly River, there are
several other centres having one jute mill in India. They are dispersed and are
situated in Bihar, Uttar Pradesh, Orissa and more. Before the independence of
the country, jute mills of the country were supplied with raw jute by some of the
north eastern states. But, after its independence major portion of the total area
went to Bangladesh and that is why India requires importing bulk of jute every

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year.

The jute industry at one time earned respectable foreign exchange. Today it has to
come face to face with umpteen challenges one is the down slope in demand for
jute carpets and packing materials. Soaring costs and potent international
competition in export market make up the other problems. Above all unreal
substitutes both at home and export markets, are presenting a biggest challenge
ever. Its export profits are inclusive under the textile industry.

At present, jute industries of the country are passing through difficult times owing
to the competition from relatively cheap synthetic industrial packing fabrics made
of high density polyethylene. Cement industry as well as salt and fertilizer
industries prefer synthetic packaging materials over jute bags. Steep rise in the
price of jute and low productivity of jute factories are other major factors behind
the sad plight of jute industries in the country.

D.K. CREATIONS PRIVATE LIMITED

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D.K. Creations Private Limited is a manufacturer and exporter of Home furnishing
and Made-ups, established in year 1996. With a total production capacity of
40,000 pcs./ Annum and a product range in home furnishing and made-ups, like:
Quilts, Bed Spread, Pillow shams and others.

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The company is also experienced in making Cushion covers, Curtains, Chair pads, Table
mats, Table covers, Duvet covers, Dust ruffles and other allied products.

“YOUR HOME IS A REFLECTION OF YOUR PERSONALITY”


The personality of a person can also be judged by his/her home because he/she will
decorate the home according to his/her own choice or likeness.

D.K. Creations Pvt. Ltd. working structure is a dual based structure. They have their own
designers, who make samples and then chooses the best one for further production.
Second they get orders from other companies and after setting the pricing strategy the
order comes in the line of production department.

MISSION AND VISION

The company’s mission is to achieve the target of more than 59 shipments in


current Financial Year and become a socially responsible Global Corporate
citizen. The vision is to become one of the leading fabric manufacturing
companies of the country, a leader in product innovation and customer
satisfaction. D.K. Creations intends to build long term value relationships
with all its suppliers.

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BUYERS
Domestic – SHIV INTERNATIONAL
Company is the manufacturer & exporter of Home furnishing made ups. presently
Company is doing international business with leading firms of South America,
North America, Japan, Australia, Denmark. For maintaining contact with these
countries, the company pays a keen interest in participating fairs & exhibitions all
round the world.

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Global – ILVA and ZARA HOME

ILVA is the regular buyer of D.K. Creations. The company just manufacture the
products ordered by ILVA.

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ZARA HOME:

Fashion in the home. Trends that are reflected in fabrics and decorations.
Guaranteed quality at affordable prices. That's what Zara Home is all about.

Stores full of life, designed for easy shopping, and settings created to inspire.

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MATERIALS AND METHODS

The methodology that has been used is as follows:


Electronic media – Internet

DATA COLLECTION METHOD:

Primary data sources: They are those data or information that are collected or
observed form first-hand experience. In this case, previous details are used to get
the data.

Secondary data sources: They are those information that are collected from
secondary sources, i.e., not directly compiled by the analyst. It can be collected
from journals, magazines, website, etc.

Four days of working was done in Shiv International with my team members
regarding the deal of fabrics.

Online source was very much helpful to be in contact with the buyers.
Got to know about the dealing of products and price rates only by emails.

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RESULTS AND DISCUSSIONS

INVOICE
Exporter Invoice No. & Date Exporter's Ref.

D.K Creations Pvt. Ltd. Buyer's Order NO. & DTD.


Other Reference(s)

Consignee Buyer (if other than consignee)

Country of Origin of Goods Country of Final Destination

Pre - Carriage by Place of Receipt Terms of Delivery and Payment


by Pre-Carrier
Vessel/Flight No. Port of Loading. NEW DELHI DELIVERY : AS PER ORDER
Port of Discharge U.S.A. Final Destination U.S.A. TERMS OF PAYMENT:
Marks & Nos. No. of Kind of Packages Description of Goods Quantity Rate Amount
Container No.
U.PRICE TOTAL FOB
ITEM NO. DESCRIPTION IN PCS IN US $ IN US $

1111 abc x x xx
2222 xyz x x xx
3333 a1b x x xx

Amount Chargable xxx xxx xxxxxx


(in words)

TOTAL IN FOB US $ : ONE THOUSAND FOUR HUNDRED FIFTY ONLY.

Declaration: Signature & Date


We declare that this Invoi ce shows the actual price of the goods
I learnt how to make the Performa, this Performa tells about the export of products to
described and that all particulars are ture and correct.
particular buyer and particular transport.

The original Performa –

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COMMERCIAL
INVOICEINVOICE

Exporter Invoice No. & Date Exporter's Ref.


SUPPLIER
D.K.Creations pvt. Ltd. SI/39/10-11 DTD.
DTD.
27.04.2010
19.05.2010 0595016537
Buyer's Order NO. & DTD. 1188950-11
Other Reference(s)

Consignee COMMERCIAL INVOICEBuyer (if other than consignee)


1)Shipper/Exporter 8)Invoice No.& Date
ILVA A/S SI/41/10-11 DT.07.06.2010
2 VENTRUPPARKEN IDDESIGN LOGISTIKCENTER
D.K.CREATIONS PVT. LTD.
DK-2670 GREVE,DENMARK. 2 VENTRUPPARKEN
9)No of L/C 6252010100106851
DK-2670 GREVE,DENMARK.

2) BUYER 10) L/C Issuing Bank


Country of Origin of Goods Country of Final Destination
INDIA DENMARK
ITX TRADING S.A. BANCO BILBAO VIZCAYA ARGENTARIA S.A.
AV DE LA GARE 4, 3
Pre - Carriage by
MADRID.
Place of Receipt by Pre-Carrier Terms of Delivery and Payment
CH 1700 FRIBOURG, BY SEASWITZERLAND.
Vessel/Flight No. 11)
Port of Loading. MUMBAICONSIGNEE

3) Notify Port
Party
of Discharge.Copenhagen Final Destination.ZARA
DENMARK HOME ESPANA,
AGILITY Marks
SPAIN S.A.JOAQUIN BAU
& Nos. S.A. AVDA. Description
No. of Kind of Packages DE LA DIPUTACION,
of Goods Quantity Rate Amount
Container No. TOTAL
2.28036 MADRID SPAIN. EDIFICIO INDITEX,
35 PKGS(01 TO 35) CARDBOARD BOXES U.PRICE FOB
15142 ARTEIXO, LA CORUNA IN SPAIN.
PCS IN EURO IN EURO
4)Port ofP.O.
LoadingNo.1188950-115)Final Destination
100% Cotton Madeups
MUMBAI (J.N.P.T) VALENCIA(SPAIN)
76100081(9404.90.8020) Cotton Bed Spread (Wanda Pink) 250 24.70 6175.00

6) Carrier75500802(9404.90.8040)
7)Salling onCotton
or about
Cushion Cover (Wanda Pink) 300 4.56 1368.00
BY SEA
SHIPPING MARK
75500758(9404.90.8040) FOB
Cotton Cushion Cover (Willy Mini Check) 308 3.75 1155.00
ZARA HOME ESPANA. 60% Cotton 40% Silk Made ups
SPAIN
85 Pkgs ( 01 to 85 ) AMOUNT
STYLE NO. ORDER NO. DESCRIPTION QTY U.PRICE IN US$

0418/006 04-21689 60%Cotton 40% 480 pcs 59.75 28680.00


Silk Bed Spread

0418/006 04-21689 60%Cotton 40% 296 pcs 77.50 22940.00


Silk Bed Spread

Amount Chargable Total = 858 8698.00


(in words)

FOB EURO. Eight Thousand Six Hundred Ninety Eight Only.

Declaration: Signature & Date


We declare that this Invoice shows the actual price of the goods
described and that all particulars are true and correct.

Amount Chargable in words:


Total US$. FIFTY ONE THOUSAND SIX HUNDRED TWENTY ONLY.
Total 51,620.00
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CONCLUSION AND RECOMMENDATIONS

CONCLUSION:

The organized textile industry has been able to cover up the debts occurred
because of recession. The company is able to make large number of deals with the
buyers.

The company is able to improve its 4p’s after recession.


- Low price products by utilizing previous year stocks.
- Use of previous year samples and manufacturing more quantity of the PY
best sold products.

Cloth consultancy is very much important to increase the sale of products. The
distribution network needs to be improved, availability of products get delay many
times.
They should increase the number of buyers,
more buyers – more productivity – more selling – more profit – more growth
Hence the company has to expose itself and, for this they need to work more
smartly and more creatively and all the defects or problems will be gone
automatically.

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RECOMMENDATIONS:

• The company should think to be glocal; they should produce samples


according to the likeness of other country citizens.
• More use of technology to produce the products faster and better.
• Two designers can’t give different varieties of products, therefore hire more
designers.
• The company does not meet customers face to face. Hence, they should do
some advertising on the internet because it is the fastest source to reach at
customers nowadays.
• Be an owner of a big space vehicle so that the orders could be delivered on
time.
• Price should be reasonable.
• Products should be made available to the buyers in accurate quantity.

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FUTURE PROSPECTS

The has overtake the recession period, and is growing at 12% annually and if this
impressive start continues, then it will be able to climb up and never see down.
The growth will be powered by investing more assets in creation and production
department.
D.K. Creation claims that it is the best maker of fabrics in Delhi and organized
NCR sector. It also had a unique tie-up with various global companies which help
it to become more global and spread the products all over the world

Such as – ZARA HOMES, Denmark


ILVA, Denmark
La Creations, UK
ITX, Switzerland

APPENDICES

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HEIMTEXTIL 2010

STAND CONSTRUCTIONS

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THE STALL SHAPE

TELECOMMUNCATION

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Many telecommunication facilities were provided in the fair. Such as:

TELEPHONE/FAX CONNECTION
EASY INTERNET
EASY WIRELESS

PRESENTATION TECHNOLOGY

Technology should inspire people Getting exhibitions to work and


capturing people's imagination involves looking after every last detail, making
sure everything – everywhere – works in harmony.
The Frankfurt trade fair site is one of the world's largest – and probably one of the
world's best – locations to put your company centre stage. We all know nothing
should be left to chance. You need professionals, with the right know-how and
experience.

Messe Frankfurt GmbH


Ludwig-Erhard-Anlage 1
D-60327 Frankfurt.
Telephone +49 69 75 75-0
Fax +49 69 75 75-64 33
www.messefrankfurt.com

REFERENCE AND BIBLIOGRAPHY

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Books:
Consumer Behavior – Schiffman, L.G. & Kanuk, Prentice Hall of India (P) Ltd.
Marketing Management – Kotler, Keller, Prentice Hall of India (P) Ltd.
Marketing Research – G.C. Giri, Tata McGraw Hill Ltd.

Websites:
www.textileworld.com
www.texprocil.com
http://www.indian-textile.com/
http://www.india-crafts.com/textile/india-textile.html
http://en.wikipedia.org/wiki/Textile

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