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SUMMER TRAINING PROJECT REPORT


ON|
³A study of footwear business with reference to m/s Euro Footwear
Limited.´

c  

  
   


Post Graduate Diploma in Marketing Management

(2009-2011)

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SUBMITTED TO: SUBMITTED BY: -

Dr. D.K.Garg Varun Jaiswal

Chairman Enr. No. - MMR-4109

IIMT, Greater Noida Batch ± 15th

(PGDMM)

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PROJECT TITLE

  

  
     
 

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PREFACE 

     



  
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CERTIFICATE

 
 0 /  EURO FOOTWEAR LIMITED,
UNNAO 12³A study of footwear business with reference to M/S Euro Footwear
Limited    Ishan Institute of Management & Technology(Greater Noida
Varun Jaiswal   

  
   

$

& 3 #  / $ $  
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    $   /      

  $ 

#14 
$ 1Mr.Shamim Ahmed

  
 $ %  

       1

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c c 
       
|
ACKNOWLEDGEMENT


 0  


  

5  $
    $
 c    /  
   
  EURO
FOOTWEAR LIMITED, UNNAO.

c  /  /     $     $  
 (- 5/  $c  / - / Mr. KHALID
SHAMSI ( DIRECTOR )EURO FOOTWEAR LIMITED,UNNAO $  
           $ $   

c  -  /  $ Mr. SHAMIM AHMED ' 4 3 )


EURO FOOTWEAR LIMITED,UNNAO
  3  (  
  $  (   

 

c /  


EURO FOOTWEAR LIMITED ,   
 
  /  $ $       
  
     $  2       
 / $

   $    

c  /  /    IIMT, GreaterNoidac


 $ $

     $

c-  $    Dr. D.K. GARG (Chairman))


IIMT,
Greater Noida
   $   $ 
c 

 
/  $

 (c- $   &    


   0 
         $ 0

'6 47 c" )

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c c 
       
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||||||||||||||||||||||||||||||||||DECLARATION

   $ 0 16th may 2010,title ³A study of footwear business

with reference to m/s Euro footwear limited $  


Mr.Shamim

Ahmed( $   /   


  5 


     


     $ 5  

Date: VARUN JAISWAL

Enr No.: MMR-4109

PGDMM

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c c 
       
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TABLE OF CONTENT

CHAPTER CONTENT PAGE NO.
8 Trade profile 892:;
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EXECUTIVE SUMMARY


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 CHAPTER-1

Trade Profile
)History of footwear industry
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b)Overview and growth of footwear industry


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The export targets from 2007-08 to 2010-11

(In Million US$)

Product 2006-07 2007-08 2008-09 2009-10 2010-11


   -     
 =;;?@ A:=;@ A;@?? ;<A;? >8@=9
Footwear 1212.25 1967.88 2597.60 3428.83 4526.05
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Total 2981.79 3892.26 4682.01 5689.17 6980.21

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MNC Brands sourced MNC Brands Sold in India Indian Brands sold in India
from India
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India¶s Export of Footwear ± Last 10


Years'6    D)

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Product1998-99 1999-20002000-0102 03 04 05 06 07 08


Footwea 8?<@: 8:9=> 8<A@


r @A@<> =?==? =9;@A=@@9@=:@:@A=AA9>8?AA < 8 ;9


% - 22.79 18.63 14.76 18.34 19.32


Growth 7.05% 5.41% 5.27%2.63%4.59% % % % % %

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India¶s Footwear Export Growth over the last Four Decades 

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Chart showing Global Import of Footwear Vs India¶s Export of Footwear 

India¶s Exports of Footwear ± Country-wise Share in Total Exports (2007-08) 

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Country 2003-04 2004-05 2005-06 2006-07 2007-08 %
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c  8?A=@ 8?9=9 89<9@ 8;=88 ::=8? 20.38%.
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4   :??> :??9 9:>= <;@A A:<> 37.82%.
&  $  8@8: 8;A@ ::8@ 9@?9 9=;= 24.95%
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# / 88A 89A@ 8;9A 8<=@ 8A<< 10.49%
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! ;=;8 8:@; 899> 8@=A= ::@?A 26.89%

c c 
       
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Total 767.73 910.77 1045.24 1236.91 1475.83 17.74%

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Current Export of Footwear and Projections by 2010-11

Investment Opportunities:

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Recent / proposed FDIs, Joint Ventures in Footwear Industry

L  6$ (Spain'#c)

, 6$ (Italy'7  6   3 )

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KL  (China'7  6  3 )

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Feng-TayEnterprisesCo.Ltd(Taiwan
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Apachefootwear,China
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Future Prospects:

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c c 
       
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CHAPTER-2
Company Profile

a)Introduction


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b)Product line and depth
  
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o|Casual footwear

 

  

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Style : 7021  Style : 10930  Style : 5955

c c 
       
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Style : 7021  Style : 10661W  Style : 10081

 

Style : 10083  Style : K-2074  Style : 10661

 

Style : K-1934  Style : 10421  Style : 11133

 

Style : 10517  Style : 10929  Style : 8928

 

Style : 10437  Style : 10902  Style : 9374

c c 
       
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Style : 10904  Style : 10851  Style : K-1302

 

Style : B-10921
 


6    |
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| ||
 
 
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c c 
       
|
o| Formal footwear

 

  

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  Style:

   

o| Sandals

 

  

Style:299?  Style:2?=>  Style:2?A8

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CHAPTER-4

Footwear research,technological and educational organization


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MIRZA INTERNATIONAL LIMITED

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CHAPTER-7
Rules and regulations and initiatives taken by Indian government for

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A) Exports and Imports free unless regulated

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9. EXPORT AND TRADING HOUSES

A) Eligibility for export

  


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D) Privileges of Export

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E) Trading House Status

Holders

i.  %  ,  ,  


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c c 
       
|
10. PROMOTIONAL MEASURES IN DEPARTMENT OF COMMERCE

A) Assistance to sports

 
   
#  $- 
#  $- 
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3   
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B) Market access initiative

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C) Meeting expanses for

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#!,

D) Towns of exports

 
   $     -  ') 
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      - % $       $

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      $$ 


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E) Brand promotion

c.' $   c .    +     c 
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 2$ 

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/     
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   2$ (   0 (
        / c ' c) 

#!,

F) Test Houses

,  3       %   $ 


  
    $      








c c 
       
|
CHAPTER-8
Risk associated with export

-   $       


   
   $ -   
 $
      c     
-  /  
/ $    -  
 - * ( 
-
 

 
-  $ 


 -  -   $  
 -      -    
  -   -  $  $ 
  % $$ 

/        ( /        $     -     
 /- /      

 
 /  
      (             /     -   
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- /        
1

 1)SmallUnit
  2 2  ')  :@?  (  $$  
 
$  /   

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 /
/  $
$  (   

 (

   $ $ 

$ 2- $    


  

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 /
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2)CreditRisk
   
 $ ( 

 
 -  

     
      
    
/
 2  (     $

  ( 

 -      

$   -  /
 
  
     2/ $

$ 
  

c c 
       
|

3) Poor Quality Risk
- $  0    
    
      /$  -     
     0      -     
$   (        
       
        
   - c       
   
 
         $ 
    

  ( $       


$  $
             
    
      

   



4) Transportation Risks
"   
$ 
       (    
   ($ 
  %/

( $   
$    $ 

5) Logistic Risk
-     
     $(  
 
$     '  
 )  -  
 c   :???(c,,   

6) Legal Risks
c      $   $
   
(   
 
-  
   0   $ 
 (   $
- H / 


7) Political Risk
&  /   $ $        

c c 
       
|
$        
 -     

 

$ $      $ / $
  $  /    
      

8) Unforeseen Risks

 /  /     /  /  
 $ -   c
    -   

0    -  

9) Exchange Rate Risks


- $/       
  
  
- $/    $*$ $ 

||||||||||||||||||||||||||EXPORT RISK MANAGEMENT PLAN

/  $   


 / $          
 
   $      -
   
/  $   1
X  $ -
Xc 
 $/
X  $        
/
X#  $$  $/
X   $  $  
X,  $    $  

/  $      -    /
 

$  /
   -   ( -  //  $     
   

EXPORT RISK MITIGATION

c c 
       
|
- / $  $   -  
 / - 
$ 

u| Direct Credit1- , $   -  $  



    - 
m| c  1       $ 

m| - 1 /


   I      

   /


u| Guarantees
m| . ' $  )1 $ - E   


  -  
  $
m| &
   1$  - E
  
 

$ 
m|    $  ' 
  )1  
   
($  

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m|   
1  $ /  -  



  

u| Insurance
m|       1, $   $  I$


 $
m| ,c   1& $       
 

    /


m|   2   '   )1,    /

m|  $ - $/   1& $$ 


$ 

- $/

u| Hedging
c     *$& /

m|  %  $  




m|   $
  

c c 
       
|
m| - $2  

m|   

m| 

UNDERSTANDING OF FOREIGN EXCHANGE RATE

u| Introduction
u| Spot Exchange Rate
u| Forward Exchange Rate
u| Method of Quoting Exchange Rates
u| Exchange Rate Regime
u| Forward Exchange Contracts
u| Benefits of Forward Exchange Contract
u| Foreign Currency Options
u| Flexible Forwards
u| Currency Swap
u| Foreign Exchange Markets

1) INTRODUCTION
-         - 

$ - $
/    
  $ - $
(
    
-  $  /  $ 
$ 
- $(  $
- $  
    $- $
c  (     
$ - $
  

2) SPOT EXCHANGE RATE


 /  M  /M(M$
M M $M( 
  - 

$       
    
          / $


c c 
       
|
3) FORWARD EXCHANGE RATE

- $
  - $    

     



 

 
+  $- $ 
   
  $- $1

u| Direct Quotation1c  (  


       

- 

$    
 -  1D8Y <:A@
u| Indirect Quotation1c  (  

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.
8>>9( /      
$ 
       8?? 
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4) EXCHANGE RATE REGIME


- $$    $   $   
 
$    
$ - $ /

u| Fixed Exchange Rate



-- $
- $$    H
    
  $        

 ( $  
-- $  /  $$- $
    
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-- $
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u| Floating Exchange Rate
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- $$    H
   
   $ 
$ - $ / 
   
 $- $/  
 $   

c c 
       
|
  $- $  
- - $    
-
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u| Linked Exchange Rate
  /- $    - $
  
   /- $       * $B $ 
 - $ * $B $ '*B#)  
 '#)

5) FORWARD EXCHANGE CONTRACTS


 - $,    '. / 
  )!         (   

 ( $


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- $
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 - $, 

u| ,   $    


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   ( $  
$   
u|      0   
u|   
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u|  - $         
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6) FOREIGN CURRENCY OPTIONS 


 $ ,  ! $ $ $  $    
  

$   


/

 (
$            //

 
        

 
  /  -
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$ - $    1 

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c c 
       
|
 
    $(  $(    

 

7) FLEXIBLE FORWARDS
 -  

$ - $     
 
- $      $  

- 

  $  'U E

- 
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- 
) - $
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$ - $     
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8) CURRENCY SWAP
    /     
$ - $
$      - $$  
   

  (

 
 ( $/ $   

9) FOREIGN EXCHANGE MARKETS



$ - $ /   $     H      
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$ - $ /   $   D=@?
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$ - $ $   (

4C /  /





c c 
       
|
CHAPTER-9
Competative advantage of export of shoes from India
     

  
c  /
    $ $



 
 $1

1. Supply side advantages

2   


  /   

2   
  

2   


   $   

2. Demand side advantages

$ $  $       /

3. Regulatory / policy related advantages

23    $  

23     

2  $& 

Supply Side Advantages

2Availability of low cost skilled labour

c E   $        


     ( /               
       
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Overview

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88 
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a) Product development/ design

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b) Research and Development Capabilities

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Regulatory / policy related advantages

Government Regulation & Support

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Key Policy initiatives include:

c c 
       
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5/ ( 2
  
  

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|
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c c 
       
|
LIMITATIONS AND FINDINGS

Limitations
 $     /    (     
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€|     $     (   /    

 

€|      $$ $     
  

€|  

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€|   $ - 
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|
=)| &/$ $
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c c 
       
|
SUGGESTIONS

8  / $     / 

: 
  
9, 
 
   c
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<   $   $ $      
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@,           ( 
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=  $     /  $  
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c c 
       
|
CONCLUSION

  
   

$  $   
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    / 
    $22
    $ $  
              /
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c      /  -        
/        
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  $  

(     /


  
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  $          $  
     / $ 
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c c 
       
|
BIBLIOGRAPHY

 

 
  
   $ / $ 0$ 
 1

SEARCH ENGINES:

$ $  2%      

$ $  2      

$ $  2 




$ $  2  

$ $  2c   


  

$ $  2    

$ $  23     $  $ $- 


  

$ $  2  


- 

$ $  2, c(##c(,c

$ $  2 


 

COMPANY RESOURCES:

,  2
  

c  
     

,  #   

BOOK:

c    c  


  $5-  $  4 



c c 
       
|
WORD OF THANKS

c  $ Mr.Mehboob Rehman   Mr. Mohd.Khalid Shamsi

   $   /    
    
  & 0 c   /   $
 /    
   (       $ 0 /

c      /


     $   of ³EURO FOOTWEAR
LIMITED´.     Mr. SHAMIM AHMED & Mr. SHOEB SHIDDIQUI
    $         
 0 /c 
   /
 all the staff of EURO FOOTWEAR LIMITED      
 $  0

 $c      $ / 


 0  c   
  /     $  0 /

c   /      /        Ishan Institute of


Management and Technology, Greater Noida c  $ $ 

 
    $

c -    $       Dr. D.K. GARG (Chairman), Ishan
Institute of Management and Technology, Greater Noida
   $  
$ 
c  
 
/  $

  c  /  /         
    0 


c  /    


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( c 
   (
 






c c 
       
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