Knowledge Process Outsourcing A Market Research

Done By SRILAKSHMI SESHADRI () For SHAHI EXPORTS PVT LTD.

TABLE OF CONTENTS

LETTER OF ACCEPTANCE From SHAHI EXPORTS PVT LTD

Overview of Garment industry: Namaste and Welcome to India, the ultimate destination for all garments importers the world over! India is today recognized as one of the best sourcing destinations for garments, textiles, accessories and finish: It provides a perfect blend of fashion, design, quality, patterns, textures, colors and finish. Manufacturers here are ready to innovate, be flexible on quantities, have hands- on approach to quality control and keep the integrity on deadlines. Labour is skilled and economical while process are highly competitive without taking away from the quality of the final product. Amazing technological developments, superior design capabilities and companies that provide integrated logistic solutions are other highly prized support systems that the industry thrives on. Combined with these manmade assets are the countrys natural assets which play a large role in boosting the garment industry- by providing raw materials of world class quality. Here are some of Indias natural leverages that the industry uses to its full advantage: India the largest producer of Jute, The second largest producer of cotton, silk and cellulosic fiber, the third largest producer of raw cotton and the fourth largest producer of synthetic fibre. Certainly there is more- above all a friendly Government policy towards exports and excellent cultural and political connections with the importing countries has

nurtured this industry and made it bigger and better each year. As the worlds second largest producer of textile and garments, Indias garments exports totaled US$ 10.70 billion during FY 2009-10, giving an inevitable market share of 3.2%. The Americas EU, much of Asia and Middle East are Indias clients. The Industry proudly supports 7 million people as a part of its workforce, and aims to double this figure by 2011-12; even today it is the second largest provider of employment in the country. For every INR 100000 Invested in the industry, an average of 7 additional jobs created. The Apparel sector also contributes to 7% of Indias total exports recording decline of 0.35% in 2009-10 against 2008-09 due to global downturn. Come to India, for nowhere else in the world do you find such a superb amalgam of natural resources, industry expertise, entrepreneurial initiatives backed by friendly Government and a smart, winning attitude that spurs the Apparel industry to soar above the rest of the world in its achievements!! Why India: The largest producer of jute. The 2nd largest producer of cotton yarn. The second largest producer of cellulosic fibre/ yarn.

The second largest producer of silk. The third largest producer of raw cotton. The 4th largest producer of synthetic fibre/yarn. Combine these natural advantages with the assets that India and the garment industry together have built over the last few decades: A strong and committed entrepreneurial class. Highly personalized quality control. Deadline oriented. Flexibility in production of small order lots. Presence of integrated companies and unbeatable logistics. Friendly export policies. Ability to handle a host of value additions like embellishments. A highly skilled workforce at competitive wages. Amazing technological advantages. Superior design capabilities. Competitive Pricing. Extremely good political and cultural connections with importing countries. A robust domestic market that adds to the industry expertise and above all, a WINNING ATTITUDE. About the Company SHAHI - WHERE AESTHETICS MEETS PROFESSIONALISM Values & Beliefs Development of local manpower by innovative training methodology.

TQM approach which believes in constant process improvement. Elimination of constraints and waste reduction. Customer Satisfaction. Research & Development oriented approach. Access to advanced technical knowledge. Creative work environment. Community Building. Protecting the Environment. Our People make the difference we believe in corporate leadership, the success is responsibility with freedom to work is transferred to every individual with a collective teamwork. H R Policies ISO 9000 certified factory. SA 8000 Compliance. Strict Adherence to Statutory requirements. Educational facilities to employees children. Personality development through Workshops, Lectures. Securing of employees earnings through e-com (EDI). Seminars &

History Shahi - started in 1974 at Delhi, Bangalore operations began on 1st July 1988 with 250 associates and 104 machines. Expansion by 60 times by last 30 years. Harish Ahuja is the Managing Director and owner of Shahi Exports Pvt. Ltd, the largest garment exporter in India. Mr. Ahuja started developing Shahi in 1974 and turned it into a 55,000 employees, US$400 million turnover enterprise with an annual capacity of 65 million garments. His clients include Wal-Mart, GAP, Debenhams, JC Penney, Sainsbury's, H&M, Abercrombie and Next. Mr. Ahuja is renowned for his socially and environmentally responsible approach to business, applying strict legal compliance, safety measures, eco friendly processes, and managing his conglomerate with social and community development in mind. Shahi is the recipient of the President of India Award, the Exports Award on Global Basis 2005-2006 from AEPC, the Award for Highest Group Employment and the Award for Highest Export in MMF Garment amongst many others. Mr. Ahuja is a graduate from Delhi University. Highlights: 27 factories with over 20000 sewing machines and 45000 employees One stop shop for multi products. Mens and ladies bottoms, knits, ladies tops, skirts, dresses over variety of fabrications.

 Over 300 million dollars in sales. Vertical with fabrics for both wovens and knits New expansion into world class fully integrated denim factories with sewing and laundry ( wet and dry )

Leading apparel exporter out of India

Manufacture We manufacture 3 million pc of high quality wovens & knits per month and catering to all segments in the apparel industry. A whooping over 2 million square feet for wovens/knits and we manufacture 1 million pc of per month of knits & 2 million pc per month of wovens. The manufacturing units are located in Delhi, Bangalore, Tirupur and Salem. Design & Product Development Our core strength is being Product Development & Design Inputs supported by in-house studio and our offices in US & Europe. Our success being we bring the latest trends in the markets coupled with our in-depth study and shopping and create line for a particular brand 'n' to bring the newness in the ever changing fashion world. We have a dedicated knowledgeable product design team, travels worldwide to take the best of the trends and transforming to design creation with mood boards, samples and given added advantage to the customers. We believe to

become partners in the progress of our customers, we have to understand the needs and deliver the latest design & product development inputs to make the journey a success. Awards Best exporters Award from AEPC Best Vendor of the year rated by Wal-Mart/JC Penney/ Target Best Manufacturing facilities rated by NIFT. Infrastructure Dedicated teams to source imported and domestic fabrics. Product development & design inputs. Best HR Practices in the apparel industry. World class sewing facility at par with international standards with sewing capacity of 3 million units per month for units for Knits. Wovens and 2 Million

Well experienced & qualified technical team in all levels of management thus understanding the product and plan. Brand new Mayer & Cie knitting machines covering the fine spectrum of knits Jersey, Interlock, Auto striper, Lycra, Rib & collar knitting. Woven fabric done through group company SFL, based in Delhi region having Benninger warping, specialized Benninger CDRs for dyeing. We recently installed. We 2.5 million Toyota Air Jet looms and

also own a Laffer peaching machine

can weave close to a million yards and dye/print yards per month of mostly bottom weight fabrics.

State-of-the-art Fabric Processing of 10 Tons/day, Yarn dyeing of 6 Bangalore. Tons/day and Garment Dyeing 3 Tons/day in

Kinds of garment shahi manufactures & exports Wovens: Shahi Woven's is traditionally recognized for its excellence in quality, product range, service & reliability. A whooping of over a million square feet is dedicated to produce the finest garments covers a vast spectrum of the woven line - men's and boy's shirts - casuals, men's shirts - formals, ladies & girls blouses, ladies & girls dresses and men's & ladies bottoms, among others. Our core strength is being Product Development & Design Inputs supported by in-house studio and our offices in US. Our success being we bring the latest trends in the markets coupled with our in-depth study and shopping and create line for a particular brand 'n' to bring the newness in the ever changing fashion world. We manufacture 2 million high quality woven garments per month and we are in the processing expanding 0.5 million pieces by the year 2007. We have the world-class garment washing coupled with dry process to cater the fashion trends. We have the state-of-the-art continuous fabric processing & handles all kinds of woven fabrics like poplin, twill, canvas and gauze etc., which are made of cotton, linen, rayon and lycra

blends. The modern fabric processing delivers over 100,000 meters a day. We have a structured quality system right from the inspection of all in-ward materials and the on-line checking of the garments in assembly line & inspection of the finished garments. Knits:

We craft the finest knit garments in India supported by world class sewing facilities at par with international standards. Our core strength being Product Development & Design Inputs backed by our in-house design departments as well as our design offices in US & Europe. Shahi - Knits Division is vertically integrated and manufacturing most of its fabrics starting from yarn. Our success in fabrication being we start selecting the right fiber coupled with dedicated spinning mills to cater to our specific requirements. Our stringent quality controls starting from 100% fabric inspection at 4 Point system to on-line inspection in garmenting, end-line inspection and supported by independent TQA team ensures the best of its quality of the product we manufacture. Shahi has implemented the latest ERP System "MOVEX" which connects all the supply chain starting from yarn till the

shipment and facilitates to monitor & adhere the TNA to meet the delivery schedules. We manufacture 1 million knit garments every month 'n' we are in the process of expanding to an additional of 0.5 million pieces by year 2007. We are equipped to handle big & small orders looking into the market requirements, thanks to our market share in US & Europe. We manufacture all kinds of Men/Women/Boys/Girls and Kids knit-ware catering to all seasons namely Spring/Summer/Autumn/Winter. Our diligent merchants are always on their toes to serve our clients. Home Furnishing

Shahi, the most successful export company in India, started its new Home furnishings division in 2004. This division is currently providing complete " top of the bed " solutions to some of the most demanding names in this business by integrating traditional craftsmanship and modern technology with decades of experience in apparel, uncompromising quality control & consistency for covering a wide spectrum of furnishing fabrics and home textiles. With dedicated design & merchandising teams supported by state of the art facilities and latest CAD software, we are able

to develop fashion ideas for the biggest home brands, globally. A separate new fabric development cell is continuously experimenting with new avenues in rich jacquards, exclusive Indian fabrics -like silks, velvets, chenille, voiles denims and organza along with coordinating development activities with our sourcing offices in far east for linens and synthetic fabrics. Today on an average, our monthly capacities include 50000 drapes, 100,000 cushion covers, 20000 coverlets & quilts and 15000 duvets and bedcovers. Quality policy of the division starts from the design stage. The Design Team is responsible to see that the product offered is amenable to quality production at economical prices with optimum utilization of available materials. All this is backed by an impeccable track record in manufacturing consistency and quality management with many of the biggest and the best names in the business worldwide. We invite the discerning buyer to feel the difference. SHAHI Exports Pvt. Ltd. is engaged in the manufacture and export of readymade garments in the International market. It is No 1 .Export house of India having an annual turnover of 450 million USD. The Group is into manufacturing of a wide range of Mens, Ladies wear, Kidswear and also in Home products. SHAHI group has all the modern units equipped with state-of-the-art technology giving the best to its buyers. It caters to a versatile

client base of US & European market like Walmart, Target, A&F, Hugo Boss, FCUK, H&M, Liz Claiborne, GAP, CK, Espirit, Zara etc. SHAHI Groups commitment to quality can meet global quality standards. Its ranking given by J.C.Penney, the worldrenowned departmental stores, is one of the best in Asia. Fashion Concepts at Shahi We at Shahi are working with WGSN to closley put together seasonal presentations to the diff brands that we cater to. Our team of Designers at New York and India work together closely to create trend setting styles and boards depending on the customer the brands. Gap, Old Navy, Tommy Hillfiger, Guess, HnM, Pacsun, Decathalon, Debenhams, Express, Nautica, SeanJean, Brooks Brothers, SSI, Chaps, Polo, J Crew, Target, JCP, PVH, Izod, Talbots, KDC, Sears, Aeo, A&F, Hollister, Liz Claiborne, Gymboore, Benneton, Kohl's, Federated, J Jill, Club Monaco, Eeddie Baeur, French Cconnection, Armani Exchange, Italy Win Studios

Woven Products (Kids Range) Casual Wear Tops Casual Wear Bottoms Jumpers Dungarees

Materials All cotton woven fabrics like twills, canvas, rib stop, herring bone weave, Bedford cords, corduroys, sateen weave etc. we can also handle blended fabrics but not synthetic fabrics like 100% nylons, micro fibre filament, coated fabrics like taffeta's and taslons

Woven Products (Mens Range)

Mens - Tops Tops Casual Wear Tops Semi Casual Wear Bottoms Casual Wear Bottoms Semi Casual Wear Casual Non Lined Jackets Materials 100% cotton, poplins, twills, light canvas Madras, special madras, seersuckers, dobbies and jacquards. Mill made chks and stripes 100% Linen, chks and stripes, solids Blended fabrics with cheif value cotton blends, in solids, checks and stripes Corduroy, Velvett Mens - Bottoms

Tops Casual Wear Tops Semi Casual Wear Bottoms Casual Wear Bottoms Semi Casual Wear Casual Non Lined Jackets Materials All cotton woven fabrics like twills, canvas, rib stop, herring bone weave, Bedford cords, corduroys, velvett, sateen weave etc. we can also handle blended fabrics but not synthetic fabrics like 100% nylons, micro fibre filament, coated fabrics like taffeta's and taslons. Woven Products (Womens Range) Tops Sportswear Tops Fashionwear Bottoms Casualwear Bottoms Semi Casual Wear Casual Non-Lined Jackets Dresses Ladies Fashion Division Blouses Dresses Skirt Tunic Camp

Shirt Materials Cotton Twill, Canvas, Cambric, Poplin, Voile, Jacquard, Texture, Yarn Dyes Cotton Spandex Cotton Nylon Spandex Cotton Poly Spandex Ringed Denim Synthetics: Moss Crape, Terry Voile, Georgette, Burnout, and Velvet Rayon Jacquard Rayon challis Ladies Speciality Division Woven Casual Tops Woven Casual Bottoms Knitted Tops Wrinkle Free Shirts & Blouses Dress Shirts Denim Wear Materials Cotton Voils / Cambric / Poplin / Twill / Denims / Wrinkle Free Yarn Dyed / Jacqard / Velvet / Viscous / Dobby's / Schiffly's Corduroy / Stretch / Georgette / Chiffon Womens - Bottoms Currently we have 3 bottoms factories with a total of 1500 machines. These facilities are equipped with the entire latest

automatic cutting; spreading, sewing and finishing equipment specializing in bottoms exclusively. Highly experienced and trained staff, monitors all aspects of production. We have a fully functional in house laundry which specializes in all kinds of washes from a basic softener to complicated washes including grinding, blow outs, tacking, rip and repair etc. with a capacity to wash 25000-30000 pcs per day. Future Plans - Setting up a fully integrated Denim production facility with state of the art laundry will be set up in the next 12-14 months for both wet and dry process. Sourcing Multi location product driven sourcing. Shanghai: Bottoms Weight fabrics. Mills such as Winnitex, Mingshi, Able leader, Amhot, Bondex and many more. India: Indian bottom weight fabrics and light weight fabrics Arvind, Vardhaman, Ashima, Nahar, Baird Mcnutts India, and other mills from south India for madras fabrics chks and stripes. Pakistan: Nishat Mills, Sapphire mills. Supervision and Monitoring We have more than 100 people in the team to monitor right from sampling, patterning, and fabric sourcing, design development & merchandising. Most of the staff are with minimum of 10-12 years of experience. The factories are well equipped with quality control systems with each line monitored by a QA supervisor who conduct all

the inline and final inspections before offering to the buyer QC for final inspection. Products Chino shorts and pants Cargo shorts and pants Lounge pants Basic Skirts in heavy weight fabrics' upto 9 0z Cargo skirts

Materials All cotton woven fabrics like twills, canvas, rib stop, herring bone weave, Bedford cords, corduroys, sateen weave etc. we can also handle blended fabrics but not synthetic fabrics like 100% nylons, micro fibre filament, coated fabrics like taffeta's and taslons. Production Capacity Current: 350,000 to 400,000 pcs per month Future: 500,000 pcs by mid 2006. Lead-time Normally we work on 100-110 days lead-time. Some basic fabrics can be on 80-90 days.

Knits Products

1. Premium ware We are catering to Golf ware, Corporate-ware, Premium-ware, which are crafted from the finest Egyptian or Pima cotton to the stringent quality levels. 2. Fashions ware We are catering to the customer in Northern America, Europe especially Italy where they are the trend setters and close to the fashion 'n' quick delivery subject to the changes as the order progress with innovative ideas & design in-puts. Retail We are able to cater the major retailers in Northern American/Europe where we have expertise in sourcing the right fabric at the competitive price and the optimum efficiency in sewing to make the products more competitive to cater to the major retailers worldwide. Products Mens / Boys Polo Crew Neck Henley Raglon Hoody V Neck Fleece Jacket Tracksuit Womens / Girls Tee

Camisole Embelished Top Cap sleeve Top Strap Tank Top Vest Skirt Fabrication All Cotton & Cotton blended fabrics will be manufactured inhouse. We also import various blended fabrics suiting to our buyer requirements. Single Jersey Pique Sheer Jersey Interlock Waffle Ottoman Flat Back Rib Yarn Dyed Striper Mini-Jacquard Electronic Jacquard Velour Pointel Sueded Rib 1x1, 2x2 Verigated Rib Cotton Fleece Polyester Fleece

Production Capacity We are producing 1 million garments per month, having future plans to expand 0.5 million by 2007. Lead-time Normally we work on 90 - 120 days lead-time & for repeat orders we even work on 75 - 90 days lead-time.

Pre Production activities Process development department analysis issues a file to Quality and Production. Suggests batch layout/folders/guides and ergonomic as per GSD to be used for bulk production Changes in design / construction suggested to the buyer for improved quality / productivity Fabrics 4 Point system for fabric inspection by professionally trained manpower. In house lab for testing various fabric parameters like shrinkage, spirality, wet and dry rub, colour fastness to washing etc. Cutting State of the art cutting room equipped with latest CAD/CAMS to provide precision cutting consistently Fabric is relaxed to control shrinkage In majority of cases panel wash is done to arrest shrinkage, and spirality (in knits)

On line inspection to address issues related to laying, spreading, cutting Lot wise GSM / Shade continuity cards maintained in cutting section. Sewing Stress on process standardization to enhance quality Deskilling Operation by using folders / guides / pattens to get consistent quality. SPF concept enables minimum wip in the lines thereby making it easier to control quality. In line inspection points to weed out isues as close as possible to the needle. An independent audit team audits pcs after end line inspection @ 1.5 AQL Pcs are moved to fng only after their certification. Feedback from Audit on daily basis for further improvement Finishing Clear SOP for processing of a style in finishing. Strong independent internal audit to certify quality before final shipment.

Infrastructure

Construction of state-of-the-art building at Plot No.IP-1, Sector-28, Faridabad. The plot is located on the main Mathura Road in Sector-28, Faridabad. The size of the plot is 7.5 Acres. The building, meant to house the entire corporate head office of the group and their major operations, is a R.C.C. frame

structure measuring 66 Mtrs. x 182 Mtrs. The basement (10000m2) is 22'0" deep with a R.C.C. ramp 4 Mtrs. wide going down to a loading/unloading bay at basement level. The retaining walls of the ramp are in R.C.C. and go up to a height of 10 Mtrs. from basement to ground level. The entire building covers an area of 35000 m2. The building was awarded the best Building by the Institute of Architects for the year 1999

The entire Shahi organization works on a single ERP system, which unifies all the departments working. This not only makes us one of a kind but also gives us the superiority of efficient functioning. This allows us to typically handle the manufacturing, logistics, distribution, inventory, shipping, invoicing, and accounting for a company. This also sychronises our business activities like sales, delivery, billing, production, inventory management, quality management, and human resources management. Our today's structure is in complete contrast to our yesteryears' departments, which have given way to modules like CRM, SRM, SCM and EPM, to not only give efficient services to our customers but also to deal effectively with suppliers. Our ERP functioning is cross-functional and enterprise wide. All functional departments that are involved in operations or

production are integrated in one system. In addition to manufacturing, warehousing, logistics, and Information Technology, this also includes accounting, human resources, marketing, and strategic management. The automisation level that we have in Shahi is at par with the best of the best in garment industry. The technological advantage with Shahi is what makes unique, with an improved business performance. Through Our Enterprise Resource Planning, we have amalgamated our company's information systems & have designed it to bind more closely, all our company functions including human resources, inventories and financials while simultaneously linking the company to customers and vendors.

Manufacturing An innovative team under mature infrastructure is the pride of Shahi in fashion industry. We got 21 state-of-the-art manufacturing facilities spread across Delhi, Bangalore, Tirupur with whooping 15,000 machines installed. It is supported by the latest automatic spreaders & CAD/CAM cutting and the best of the micro-process controlled sewing machines with under-bed trimmers. The start-of-the-art sewing facilities with online checking at critical points coupled with stringent quality controls at finishing section meeting the standards of our buyers.

The facilities are of most modern with a total buildup area over 4 million sq. ft. spread across India to support to manufacturing. Embroidery We are one of the largest installation of Barudan over 90 machines each of 20 heads capable of producing 9 colors, producing 1 billion stitches per day. Also new embroidery addition can support sequencing and special operations in the machine, with the above capacity we can turn-around time of an order can be shorter. Washing We have state-of-the art front loaded micro-process controlled washing facilities with a expertise of washing for various brands like Abercrombie, Replay etc., we can do the following washes in fabric & garment form Enzyme wash Acid wash Potassium permanganate wash Aged wash Vintage wash Rubber ball wash Tea stain wash Garment Dyeing Garment pigment dyed Sulpher dyed Garment dyed over print

Tie & Dye Dip Dye Fabric Processing Sarla Fabrics, the processing plant rates as one of India's foremost wet processing plant. All kinds of woven fabrics like poplin, twill, canvas, gauze etc., and made of cotton, linen, rayon and lycra blends are processed to international standards. Prints like reactive, vat color discharge on reactive grounds & pigments apart from some special printing techniques like burnt out effects on polyester-cotton blends are achieved here. In all, the unit whips out 100,000 meters of processed fabric per day. The pre-treatment section houses an Osthoff Gas Singe & Desize machine, Benninger Continuous Bleaching Range, Ben Dimensa Chainless Merceriser. The Dyeing Section has a host of machinery like a Kusters Colt Pad Batch & Benninger Wash Range, Continuous Dyeing Range, Jet Dyeing, Benninger Pad-Dry (with Kuster Padder) and Benninger Pad Steam Range. 12 Color Rotary Printing Machines, with after-treatment machines like Continuous Ager, Loop Ager, Star Agers; Polymerisers & Washing Ranges find pride of place. The designing department is computerised with small yardages tackled on a Baby-Pilot Rotary Machine. In the Finishing Section one finds Stenters, a Relax Dryer cum baker, Emerising (Peach) Machine & Preshrinking Range.

Specialty finishes (apart from normal silicon or soft finishes) like easy care (Self Smoothening Rating -3-3.5), Permanent hydrophilic, Stain repellant - Teflon, Water repellent, Anti microbe or Permanent fresh & Permanent Perfume can be applied. Sarla Fabrics is equipped with an ultra-modern laboratory, with globally acclaimed equipment. The laboratory has a Datacolour Computer Color Matching System, coupled with a Datacolour Automatic Dispenser, to eliminate any human error. There is a Mathis Padder with Dryer & Steamer and a replica pilot plant of bulk dyeing machines. Lab to Bulk co-relation is perfectly documented and remains above 95% at every time. Future Expansion - Knit Processing - We are setting-up most modern processing unit in Bangalore - Fabric processing of 10 Tons per day, 6 Tons of Yarn dyeing and garment dyeing of 3 Tons per day with a latest color kitchen with reverse osmosis plant & expected to commence production by 2007. Having Brand new Maria Costa Italian sueding machine with a capacity of 3 Tons/day. Knitting Having brand new Mayer & Cie knitting machines covering the fine spectrum of knits - Jersey, Interlock, Auto striper, Lycra, Rib & collar knitting. Special Process Sequencing / beadwork

We got the expertise & experience in the last 3 decades to handle the most complicated sequencing & beadwork, we can handle over 5 million pieces per month & spread across over india. Smocking / Shirring We are capable of producing various smocking/shirring styles with the following machines and to name a few: M/c No. DFB1412PSSM -> 12 needle, flatbed machine with 9 different smocking cams. M/c No. DFB-1404PMD - multi-purpose machine for attaching elastic, attaching waistband, sewing the front of shirts, attaching line tapes, smocking and shirring. M/c No. DFB-1412PQ - 12 needle flatbed machine for simultaneous shirring. M/c No. MMX-3303F - 3 needle, bottom cover stitch with smocking for decorative tape binding. Manual/Hand Embroidery We have in-house capacity of hand embroidery to handle big orders. Sampling Shahi always concentrates n spends manpower/money in sampling, we have dedicated sampling units all over 300 machines for knits, woven-Men & woven-women and turning around 15,000 samples every month. The sampling units are equipped with the latest technology machines and well-

experienced tailors to handle all kinds of samples with a short lead-time. We have a huge library for wovens / knits which can support the latest trends in the market and the buyers can select the fabric and make the samples with a quick turn around time. Added to that we got a huge library of trims/accessories to support the sampling. Printing We have the latest printing facilities, which can produce over 12 color 90,000 meters a day. We are also equipped with digital laboratory printing to turn-around the samples faster. Training Our most valuable asset is our Human Resource. It is imperative to develop people to take on the challenges of future. We believe that this can be achieved only by continuously honing competencies and developing individuals to take on higher roles and greater responsibilities. Businesses today have to be ready to compete. Improved transportation and communication has shrunk the world. The talk is now of "global pressures", and "world market requirements". Improving productivity is the name of the game. Shahi provides focused learning experiences to the Associates, which stimulate, support and develop their potential into work related competencies.

Multi Skill training, Seminars and Workshops on relevant topics groom the Associates on required competencies. Compliance SOCIAL ACCOUNTABILITY 8000 As a corporate citizen and a business entity that is evolving through continual improvement in ethical business, employee welfare and adherence to local and international laws has been certified SA 8000, by Bureau Veritas Quality International (BVQI). The certification is widely accepted in the Europe & the US as a sign of a corporate body that has definite ethical business practice. It not only ensures better work environment, equal pay, grievance handling mechanism, definite disciplinary procedure, mechanism to check and address sexual harassment and healthy employee-management relationship at the Premise of manufacturing that is certified but also takes care of the supply chain, and ensure that starting from raw material supplier, accessory supplier to shipment of final product, ethical business is practiced. This is ensured in the form of Supplier Compliance. SA - 8000 has a definite audit process conducted by BVQI every six months, where associate interview is done & relevant document is reviewed, witch in turn ensures that all the clauses of the SA-8000 Standard is followed. The following are the Standards:

CHILD LABOUR FORCED LABOUR HEALTH AND SAFETY FREEDOM OF ASSOCIATION DISCRIMINATION DISCIPLINARY PRACTICES WORKING HOURS REMUNERATION MANAGEMENT SYSTEM Social Accountability In charge: A responsible person is appointed as social accountability in charge to ensure that the requirement of the Clauses of SA-8000 is met at all times. Grievance Handling In charge: A qualified person is dedicated to addressing the grievance of the associates and is available during the working hours through the month. Health & Safety In-Charge: A qualified and experienced person is appointed as Health & Safety In charge to ensure that healthy and safe work environment is maintained in the factory premise. The top management, including the CEO of the company actively involves in ensuring that all the clauses of the SA 8000 is followed strictly and sustained.

Exporting achievements

The first decade of the new millennium saw the IT industry coin the 'Bangalored' verb to describe the flight of

development work from the US to cheaper, efficient India. In the second, India's garments sector may be about to add 'Bangladeshed' to the rich lexicon of outsourcing terms. But unlike 'Bangalore', which over time acquired a reputation of being too one-sided in India's favour, 'Bangladesh' may be more a case of win-win for India and Bangladesh. Faced with rising costs for labor, raw material and real estate in India, garments exporters in this country are co-opting Bangladesh, hiring cheaper production capacity in the eastern neighbor to counter cut-throat competition from countries such as China and Vietnam in the global market. Indian exporters are exporting fabric to Bangladesh, helping the textile industry at home, and using rented production facilities to produce garments that are then exported to Western markets, the second leg of the process benefiting the companies as well as the economy of the eastern neighbor. Shahi Exports, one of India's largest ladies garment export houses based in Faridabad near Delhi, for instance exports 3.35 lakh meters of fabric to Dhaka every month. Their factory in Dhaka then turns this cloth into nearly 1.5 lakh garments that are shipped out to the US and the EU bearing 'Made in Bangladesh' tag. "Such joint productions help make our exports more competitive vis--vis China and Vietnam," says Aditya Sharma, general manager of Shahi. And Shahi is not alone. A growing number of Indian exporters are using Bangladesh as an important station in their journey

to Western markets, attracted by relatively cheap labour and land costs. Minimum wages in Bangladesh hover around 1,700 per month per person against 5,000 on average in India. Additionally in Bangladesh unlike India, one can rent out a factory in lines of about 100 machines each so even one-third of a factory can be rented out making it easier for exporters to set up shops there. "Goods manufactured in Bangladesh are 20-25% cheaper than in India," says Sudhir Dhingra, chairman and managing director of Orient Craft Export, one of North India's biggest exporters. By co-opting Bangladesh, Indian garment exporters find themselves making profits twice over. "Apart from the profit we make on the fabric that we export to Bangladesh, Indian companies also maintain a 8-10% profit margin on the final goods, although this differs from product to product," said Dhingra. This lucrative opportunity has resulted in a host of Indian textile mills and export houses getting into such collaborations. This fondness for Bangladesh has helped make that country the fourth largest apparels exporter in the world. Bangladesh, ranked 45 out of 227 countries in the pecking order list of GDP (PPP) by CIA, has grabbed 3% share of the global apparel market, according to a recent World Trade Organization (WTO) report.

Garment manufacturing is also the country's second largest employer after agriculture employing about 4 million people directly, 85% of which are women. As per the latest government data, the Bangladesh's total export of Ready Made Garments (RMG) in FY 10-11 touched an astounding $17,1914.46 million growing at 43.35% over last year. In the same period, India clocked RMG exports worth $11175.76 million at a meager 4% growth. Indian total exports of yarn and fabrics on the other hand grew at 32.14%.

Shahi Exports Shimoga Project The Government has sanctioned 250 acres of land for Shahi Exports, a Bangalore-based garment company to set up a textile park in Shimoga. The company has plans to invest Rs 550 crore for the park in two years time. H Ahuja of the company met the CM in Bangalore, on Wednesday and discussed the project, which was cleared by the State Cabinet.

Later, speaking to press persons, Ahuja, said work on the project would offer employment to over 10,000 people. Then Chief Minister B.S. Yeddyurappa said on Thursday that the State Government would acquire only uncultivable land for industrial purposes. He was addressing a gathering after laying the foundation for the Textile Park and Training Centre in Readymade Garments and Designing at the Industrial Area in Nidige near here, being developed by the Karnataka Power loom Development Corporation and Shahi Exports Ltd. He said that the Government would make efforts to provide infrastructure for new industries before the World Investors Meet to be held in Bangalore in June. The economic status of the State would change if new steel industries, including that of Lakshmi Mittal, were set up. Thanking Shahi Exports Ltd. for coming forward to establish its modern garment factory at a cost of Rs. 600 crore in Shimoga, Mr. Yeddyurappa said that the Government would extend all facilities to help the company start its first phase in a year, offering jobs to 2,000 people. He hoped that it would emerge as a model textile unit in the country. He requested the company to explore the possibility of setting up its textile units in other parts of the State. Mr. Yeddyurappa said that the five-year Suvarna Textile Policy was aimed at promoting textile industries in a systematic manner and it was expected to generate five lakh jobs with an

investment of Rs. 10,000 crore during the five-year period when all new factories started functioning. He said that a textile corridor would be set up near Shimoga to facilitate establishment of new textile factories. He said that the Government was also interested in helping other industries such as information technology, sugar and steel. Minister for Textiles, Youth Affairs and Sports Gulihatti D. Shekhar, Minister for Energy K.S. Eshwarappa, Shimoga MP B.Y. Raghavendra and Deputy Chairman of the State Planning Board D.H. Shankaramurthy spoke on the occasion.

Literature reviews:

AEPC (Apparel Export Promotion Council)

Incorporated in1978, AEPC is the official body of apparel exporters in India that provides invaluable assistance to Indian exporters as well as importers/international buyers who choose India as their preferred sourcing destination for garments. A quick look at how the Apparel Export Promotion Council (AEPC) has been the moving force behind lot of achievements: From one office in 1978, it has over 40 offices in just a span of 30 years. From just being a quota monitoring entity, AEPC is today a powerful body for the promotion and facilitation of garment manufacturing and their exports. For Indian exporters, AEPC is quite literally a one-stop shop for information, technical guidance to work force and market intelligence. Members have access to updated trade statistics, potential markets, information on international fairs and assistance in participating at these fairs. It also plays a large role in identifying new markets and leading trade delegations to various countries. In recent years, AEPC has worked tirelessly in integrating the entire industry - starting at the grass root level of training the workforce and supplying a steady stream of man power to the industry; identifying the best countries to source machinery and other infrastructure and brokering several path breaking

deals for its members and finally helping exporters to showcase their best at home fairs as well as be highly visible at international fairs the world over Twice a year, AEPC showcases the best of Indias garment export capabilities through the prestigious India International Garment Fair, playing host to over 350 exhibitors displaying the exotic, the haute, the prt, the contemporary and much much more With AEPC's expertise and all the advantages that India has, it makes for a truly win-win situation Indian exporters grow stronger each year in their achievements, skills and proficiency, while international buyers get superior solutions for their garment imports. Mission, Vision & Values:

AEPC is committed to satisfy the apparel exporters with the service efficiency in achieving the growth of exports garments by exploring, sustaining & expanding global markets, becoming one stop information centre providing export assistance to garment exporters and bridge the gap between the exporters and overseas buyers through dedicated efforts of employees and continual improvement of the quality management system. We shall achieve the same by Networking of AEPC members Increasing the export volume Increase in the number of export markets Stabilisation of exports

Providing trained manpower to apparel industry Recommendation to the government for policy changes which are beneficial to the garment industry. Milestones: 201 Organized the first edition of Tex-Trend 2011, the 1 combined show of all Export Promotion Councils of Textiles Ministry - February 201 Commissioned the AEPC Common Compliance Code 0 project - November 200 Inaugurated Knitwear Technology Mission Building at 9 Tirupur - December 200 Foundation stone laid for a new building of AEPCs 8 education and training initiatives (IAM & ATDC) 200 Institute of Apparel Management (IAM) set up on 18th 7 September 200 AEPC headquarter moves to multi-storey Apparel House 5 in Gurgaon 200 Quota regime ends from 1st January 5 200 AEPCs web portal launched 2 200 Indian apparel exports cross 5 billion dollar mark 1 199 AEPC hosts first international conference 9 199 First roadshow by AEPC held in the United States 8 199 First Apparel Training and Design Centre (ATDC) set-up in 5 Chennai 199 Indian apparel exports cross 1 billion dollar mark 1 198 First India International Garment Fair held in August 8 198 Apparel Times, a 10-page weekly newsletter, evolves into

6 Apparel Fortnightly 197 AEPCs first annual general meeting held on 17th May 9 197 AEPC starts endorsing shipping bills and issuing export 9 certificates 197 First AEPC trade delegation visits Iraq 8 197 AEPC set-up with P.N Amersy as the first chairman 8

Clothing Development Global & Karnataka: The Global Scenario The global textile and garment Sector has been in a state of flux Since 1 January 2005, when almost four decades of restrictions on Trade formally came to an end with the demise of the MultiFibre Arrangement (MFA) quota system. Many developing countries Now face increasing competition and downward pressure on Prices as the global garment industry consolidates around a relatively small number of winners. Developing countries produce Half the worlds textile exports and nearly three-quarters of the Worlds clothing exports (UNCTAD, 2005). For textiles, the European Union is the biggest exporter (Including intra-EU trade), followed by China. However, India,

Turkey, Pakistan, Indonesia, Thailand and Mexico all rank among The top 15 textile exporters, according to WTO trade statistics. Overall, Asia accounted for 45.1% of world textiles exports in 2004. The EU and the US are the biggest importers of textiles, followed by China, which needs fabric for its large garments industry. The Indian Scenario The textile industry is one of Indias oldest industries; India ranks first in cotton-cultivated area and third in production among all cotton producing countries in the world. Next to China and USA, it is the second largest producer of silk in the world, seventh largest producer of wool in the world. With this resource base, textiles form a major contributor to income, exports, employment and foreign exchange earnings. During the year 2007-08, the Sector accounted for 14% industrial production, 4% to the GDP, 17% to the countrys export earnings and provided direct employment to more than 35 million people, the biggest employer after agriculture. While the textile industry sales are valued at around US$ 52 billion, 64% pertains to domestic demand, while the remaining make up exports. The Indian textile industry comprises mostly of small-scale, non-integrated spinning, weaving, finishing and apparel making units. The Cotton/ Man-made fibre textile industry is the largest organised industry in the country in terms of employment (nearly

1 million workers) and number of units. As on 31.03.2008, there were 1773 cotton/ man-made fibre textile mills (non-SSI) in the country with 35.01 million spindles, 461,000 rotors and 56,000 looms capacity. There were 21.55 lakh powerlooms in the country as on 31st December, 2008 distributed over approximately 4.82 lakh units. The powerloom Sector contributes about 62% of the total cloth production of the country and provides employment to about 54.00 lakh persons. More than 60% of the cloth meant for export comes from the powerloom Sector. As per the available WTO data, India's percentage share in global textiles and clothing trade was 4% in textiles, and 2.8% in clothing during the year 2007. India's rank in world trade has been 7th in textiles and 6th in clothing. The Scheme for Integrated Textile Parks was initiated in 2005 to strengthen the infrastructure support in textile growth regions. Under the Xth Five Year Plan, 30 integrated Textile Parks were sanctioned. Under the SITP, and during the XIth Five Year Plan, 10 additional parks will be developed. These 40 Parks when operationalised will attract an investment of Rs. 21,502 crore, create employment (direct and indirect) for 5.75 lakh workers and produce goods worth Rs. 38.115 crore, annually. Given the significance of the textile industry in employment generation and exports of the country, the Government of India has initiated a number of schemes to incentivise the textile

industry at the organised as well as the unorganised level and boost investment in the Sector. Recent initiatives in 2009-10 include the release of a subsidy of US$ 533.87 million for the textile industry under the Technology Upgradation Fund scheme (TUFs), 10% capital subsidy and 5% interest subsidy on installation of machineries and for processing machinery under the TUFS, reconstitution of the Textiles Committee to ensure standard quality of textiles both for internal marketing as well as exports, launch of an online marketing and sales portal by the textile minister etc. The WTO regime since 2005 has given a boost to the Indian textile industry and the buoyant economy and conducive policy environment provided by the Government have contributed in placing the industry on the path of rapid growth. The increase in production levels at the rate of 8-9%, and an increase in exports at the rate of 22%, doubling of investment during the last two years under the Technology Upgradation Fund Scheme clearly indicate that the industry has been able to successfully face the challenges of a globalised economy. According to the Minister for Textiles, around US$ 5.14 billion of foreign investment is expected to be made in India in the Textile Sector over the next five years. The Sector is set for high growth

in the future. ADVANTAGE KARNATAKA The textile industry occupies an important position in the industrial landscape of Karnataka by way of its contribution to industrial production, employment generation and export earnings. It is next only to the agriculture sector in terms of employment generation. The Textile sector contributes 0.50% of the GDP of the state, approximately Rs. 1,00,000 crore in value. Karnataka accounts for 20% of the national garment production, valued at around Rs. 7,500 crore and 8% of the national exports. Bangalore is also known as the Garment Capital of India, as the preferred destination for garment firms. Garment exports from Karnataka in fact, occupy the 2nd position (nationally) in terms of value of exports from the State, next only to Electronics and Computer Software. The quantum of garment exports has increased four-fold from Rs. 1024 crore in 1995-96 to reach Rs. 4000 crore in 2001-02. Provisional estimates put the value of garment exports at Rs. 6773 crore in 2006-07. Although Karnataka enjoys a significant share (32%) of the domestic apparel market with over 1500 apparel units, there is further significant

scope for expansion of apparel manufacturing activities in the State. The main competitive advantages offered by locating textile industry in this state are the presence of a large pool of labour and key raw materials. Raw materials needed for the textile industry are abundant in the State: Cotton is cultivated in about 5.5 lakh hectares of land and the State produces about 6% of the total cotton produced in the country. In sericulture, the State leads as the producer of 65% of Indias raw silk. Karnataka is among the largest wool producing states in India, contributing 12% to the national figures. The State also has infrastructure support in the Apparel Parks across the State. Apart from the current park in Doddaballapur, proposed locations for Apparel Parks include those in Bellary, Davanagere, Ramanagaram, Belgaum, Gulbarga, Rabakavi Banahatti, Bagalkot and Mysore districts. Land with infrastructure support is available in KIADB Industrial Areas 545 acres have been allotted for garment manufacturing industries by State Level Single Window Clearance Committee/ State High Level Clearance Committee. These are fully supported by roads, water, power, common effluent treatment plants, telecommunication networks etc. by KIADB

While there are more than 70 large and medium firms operating in the textile industry in Karnataka (see Appendix for details), there are more than 50,000 firms that qualify under the micro, small and medium category in this Sector, the largest segment under MSME Sector in the state. As per the data provided by ASI, there are total 3.86 lakh manufacturing units engaged in Textile and Garment Sector at the organised and unorganised level. Textile units are spread across all districts in the State, with Belgaum, Bangalore and Gulbarga districts having the highest concentration of textile production units. Shahi plays a major role in Shimoga apparel park Project: Bangalore is also known as the 'Garment capital' of India. Karnataka, and especially Bangalore hosts many big garment companies. Various industries in Karnataka have always accused the government of giving attention only to IT and BT and not any other industry. The Textile industry has been asking for textile parks on the lines of IT parks. Textile Parks In July 2008 the Karnataka Government proposed to establish 11 Textile Parks to give a boost to textile industry in the State. The Textile Parks would be come up in Gulbarga, Davanagere, Bellary, Bangalore, Ramanagaram, Mysore, Belgaum.

Besides an Integrated Textile Park at Doddaballapur, Apparel Park Phase II and III at Doddaballapur and High Tech Weaving Park at Mysore would be taken up. Karnataka Industrial Area Development Board (KIADB) has initiated to establish the Textile Park in Davanagere at a cost of Rs 350 lakhs in 60 acres of land at Karur and Davanagere. However, the works on infrastructure development was stalled since land owners have approached civil court. Development of Apparel Park Phase II and III at Doddaballapur would be taken up at 265.30 acres and 750 acres respectively to be acquired by KIADB. Besides in Doddaballapur and Integrated Textile Park was proposed under Central Government's Scheme for Integrated Textile Park (SITP) at a cost of Rs 62 Crore. The Centre has already released Rs 220 lakhs and civil works are in progress. In Bellary the Textile Park would come up in 154 acres at Mundargi and Guggarahalli. Action has been initiated to develop 65 acres of land and land has been allotted to 83 Processing units. For High Tech Weaving Park in Mysore 10 acres of land has been allotted to entrepreneurs at Hebbal KIADB Industrial Area. In Bangalore preliminary notification has been issued for acquisition of 50 acres of land at Hosahalli in Anekal Taluk for the High Tech Weaving Park at a cost of Rs 4200 lakhs. Textile Park to be set up in Gulbarga would come up in 50 acres of land at Nandur Kasarali KIADB industrial area has been identified and 80 entrepreneurs have been identified for this Textile Park.

In Ramanagaram, KIADB has identified 125 acres of land at Harisandra Village in Ramanagaram District for establishment of Textile Park and action was being taken for acquisition of 257.37 acres of land at Kadakola and Koohanahalli village in Mysore for setting up Textile Park. Sixty nine acres of land had been identified at Wagvade village in Belgaum for establishment of Textile Park. Doddaballapur Integrated Textile Park (DITPL) Tthe Rs 250-crore Doddaballapur Integrated Textile Park (DITPL) is expected to become one of the country's important powerloom clusters. It was inaugurated in July 2010 by the Union textile minister Dayanidhi Maran. This park will provide employment to 8,000 people. The park, spread across 48 acres, will ensure processing and preweaving facilities. It will house 75 weaving units with 600 looms and eight apparel factories with 500 sewing machines owned and operated by members of the units. Around 41 units are expected to be operational by this year-end. Maran said modernizing technology and production processes are the key to staying competitive in the global market. 1. Karnataka Silk Industries Corporation III & IV Floor, Public Utility Building, M.G.Road, Bangalore - 560 001. Tel: +91-80-25586550 , 25586399, 25598442, 25588559, 25586402

Fax: +91-80-25587020. Email: ksicblr@blr.vsnl.net.in Mysore Silk Weaving Factory, set up in 1932, modernized with Japanese Technology in 1980, renamed KSIC in '81, is the only manufacturer in India to offer 100% pure natural silk and spun yarn. Four units near Bangalore handle the entire manufacturing process from cocoon to fabric. Products include sarees in over hundred colour combinations-Mysore Crepe Silk, Chiffons, Georgettes, Jaquards, Crepe-de-chinese, Dress Material, Silk Shirts, Furnishings, Ties, Scarves and Cravats. Silk waste, processed to produce spun silk yarn is used to manufacture silk carpets in Kashmir. Apart from showrooms in the south, it has outlets through Cauvery, Delhi and MSIL, Mumbai. KSIC exports spun silk products to European countries. KSIC's present turnover is Rs.35,000 lakhs. 2. Gokuldas Images Ltd and Gokuldas Exports 123,Chord Road, Bangalore - 560 010. Tel: 080-2332 1561 ,2332 1471. Fax: 080-2332 2497. Beginning with ready-made garments textiles in the 1960's Gokaldas Images Ltd. reconstituted itself in 1979 to deal in high fashion wear, woven and knitted garments i.e. shirts, blouses, shorts, blazers, trousers, etc. The company has several divisions like Knitwear, Outer wear, Denim, Suits, Lingerie. It has a manufacturing partnership with Levi Strauss & Company, tie-ups with Playtex for Lingerie and Weil-France for suits. Also a Licensee for Walt

Disney Garments in India. Gokaldas Images envisages vertical expansion into textile manufacture for Knitted garments, expansion into active sportswear and enhancing its productivity by increasing the number of plants and technology. 3. Renuka Silks Private Limited #53-1, 80ft Ring Road, Kottige Palya, Shrigandha Kaval Bangalore - 560091 Tel: +91 80 3093 5929 Email: contact@renukasilks.com

Karnataka Govt to establish 11 Textile Parks

The Karnataka Government proposes to establish 11 Textile Parks to give a boost to textile industry in the State.

Karnataka drafts new textile policy to attract investment

Karnataka has drafted a textile policy that expects to attract investments worth Rs10,000 crore and create half a million jobs in five years by offering sops to the industry. The policy is now awaiting approval of the new government. The draft policy primarily aims at two aspects: generation of employment in the rural interiors... and invite new investments in the sector, says A. Anand, joint director at the states department of handlooms and textiles.

Apparel design centres at five districts in Karnataka

In an effort to provide better job opportunities for rural folk, Apparel Training & Design Centre (ATDC) is setting up five training and design centres in five districts of the State. These are expected to come up at Ramnagaram, Mandya, Mysore, Tumkur and Chickballapur.

After IT, BT, it is apparel boom: Commissioner

India which witnessed IT and BT boom is all set for apparel boom in the wake of lifting of sanctions on textile imports by US and European countries following the Agreement on Textile and Clothing (ATC) which came into effect on January 1, 2005, said Ashok Kumar C Manoli, Commissioner for Textile Development, Government of Karnataka

Textile parks likely in all districts

The State government is willing to provide infrastructure for establishing textile parks in all district headquarters if investors come forward to set up textile units, said Minister for Tourism, Textile and Infrastructure Sriramulu. Shahis Role: Shahi Exports, a Bangalore-based garment company, is setting up a textile park spread over 250 acres in Shimoga. The State Cabinet gave its approval for the project ina meeting. The proposed project, coming up in a Special Economic Zone, is expected to offer employment to 10,000 people. Textile Minister Goolihatti Shekhar on Friday said that only Shahi Exports came forward to set up the park in Shimoga. The promoter enjoys tax exemptions as per the SEZ norms and will be investing Rs 560 crore for the project. The proposal to set up the textile park in Shimoga had come up for discussion before the Cabinet in its previous meeting, however the minister had objected to it stating that the subject was not in the Cabinet agenda. Goolihatti Shekhar and

several others insisted that the Cabinet should not take up additional subjects for discussion. As a result the decision on the issue was deferred. This a inhouse project where the complete process included in a garment manufacturing is done under one roof. ie., yarn weaving, dyeing, sewing, washing, packing & garment shipment (the complete manufacturing cycle under one roof). Findings & analysis: Shahis new project in the recent times was the denim division set up: Denim has been a natural extension to our non denim customers who brought it to us as a package. We have now dedicated a separate factory for denims with about 750 highly specialized sewing and finishing machines. Highly automated Italian machines which are capable of high speed and accurate finishes for pocket creasing and setting, waist banding, lap seaming, belt loop attaching, bottom hemming etc. Fully automated cutting room with automatic spreaders and cutters. Indian Denim History With one of the largest installed capacity and more being added, India is one of the largest denim fabric producer of the world With world class infrastructure the leading mills like ARVIND, RAYMONDS, KG DENIM, MALWA, MAFATLAL, LNJ , SURYA LAKSHMI ARE SOME OF THE BEST With over 550 million yards of denim fabric production, we can offer quick lead times, latest fabric innovation and very competitive prices. In house design and development, latest wash trends, back

pocket designs, value adds like embroidery, prints etc to enhance product offering. Large factories with excellent infrastructure of latest sewing machines including specialized 5 pocket Italian machines for the best product quality. World class laundry with both wet and dry process offering some of the best denim washes and latest trends. Production Capacity- Denim 2010 : 4 million pcs/year 2011 : 7 million pcs/year 2012 : 10 million pcs/year (Projected) INFRASTURCTURE FOR DENIMS Cutting

Cad / Pattern

Sampling

Sewing

LAUNDRY Over 5 million dollar investment in upgrading laundry State of the art machinery and world class infrastructure for both wet and dry process . Wash technicians trained in Italy and turkey to create new innovations and ensure consistency in bulk production. Current washing capacity is approx 20000 units per day. Besides regular washing like stone, enzyme and bleach washes, we are capable of doing a variety of special processes like Hand Scrubbing, Sand blasting, Whiskers with

laser and hand . Garment tinting, Spraying and Coating with various chemicals, Brushing, Grinding, Tacking and permanent creasing, Local and Full body resin. Innovation and trend directions in the washing will be continuously upgraded via our partnerships with key laundries and consultants in Italy.

Dry Process All the process which carried out here are: SCRAPING WISKERING TAGGING

GRINDING DAMAGING SAND BLASTING SPRAYING CURING CRINKLING LASER MACHINE

PP spray booth

Curing / Baking

DESIGN & DEVELOPMENT Shahi denim studio creates innovative product encompassing style fits & washes. Each design presentation is customized to suit the buying needs & the philosophy of each buyer. The fashion market is vastly researched through mediums as tradeshows, fashion forecasting service providers, media, inhouse library & interaction with the buyers and creation of authentic jeans with in house developments. DENIM SOP AT SHAHI Approved wash cutting sent to the fabric mill. This helps mill in dispatching the fabric as per the required shade. Master swatch cutting sent by mill. This helps us in our shade identification activities. Head ends sent by mill. This help us in shade and shrinkage activities in turn reduces the pre production lead times. We take the taper report from mill which helps in indentifying the rolls which are good and bad. AQL level of 2.5 is followed. Shade and shrinkage is done for every roll from bulk. We have process owners for every wet and dry process. We create multiple negatives of the approved standard to help the process owners to streamline the dry and wet process. Lot wise /shade wise cutting done to reduce

mixing of shades. Lot wise / shade wise washing done to reduce mixing of shades. Conclusions & Recommendation: It is strongly proven / believed that shahi exports is No.1 garment exporting cpmpany in India & the awards which were received by the company in the last 2 years proves that it is the best. 2008-09 Awarded gold for being the highest global exporter. Awarded Silver for being the highest group employment provider. Awarded for being the highest exports by women entrepreneur.

2009-10 Awarded gold for being the highest global exporter. Awarded Gold for being the highest group employment provider. Awarded for being the highest exports by women entrepreneur. Objectives needed for study research: Merchandising In General Terms Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity. In the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers

to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase. When people hear the term merchandising, many think of window displays or perhaps the mass proliferation of Disney memorabilia. However, merchandising is a much broader concept, encompassing everything a company does to package and present its products or services. For some businesses, merchandising means creating visual displays that draw customers to a tangible product. For others, such as consulting or law firms, it is the presentations they conduct to show prospective clients what they have to offer. In either case, effective merchandising demonstrates expertise and style and gives both potential and existing customers the chance to see products or services in action. Traditional Techniques Many of the merchandising techniques retailers have traditionally used can be adapted for wholesalers, manufacturers and service companies to frame a product. Window displays are the first thing people notice about a company, other than the front of the building, and can be a very powerful advertising vehicle. In addition to spotlighting specific products, windows can reflect a specific atmosphere, ambiance and business philosophy. Props, an integral component of window displays, can create a theme, add impact, demonstrate usage and allow products to be displayed in a cohesive, well-blended manner. For example, a retailer who sells hand-woven sweaters and shawls might place an authentic weaver's loom in the middle of the sales area as a focal point. Likewise, a store selling dolls could use baby doll furniture as props. To enhance your own creativity, make a point of visiting the nearest regional shopping mall once a month to look at the display windows and temporary exhibits. Make notes on how props are used by window and store display designers. Signs can also stimulate interest and project a clear identity to the public. Because of their high visibility, however, unless you are a graphic artist, have them produced by a professional sign company. In addition to incorporating a logo or company name

to reinforce your identity, think about the sizes of your signs and lettering - this aspect will determine how easy the signs are to read. Three-inch lettering can be read from 70 to 80 feet away; one-inch lettering from 10 to 30 feet. In addition, colors and styles should be coordinated with your decor and overall image. Are your signs bright and stylized, or subdued and unobtrusive? The former may be appropriate for a candy store, while the latter is a better choice for a law firm. Lighting can be used to both create a certain atmosphere and highlight merchandise. Because lighting fixtures can be expensive, however, determine how essential lighting is to your overall product presentation. For example, retailers selling fine art or intricate items may decide they need spotlights to illuminate their work and help customers appreciate the quality of their craftsmanship or artistry. If your lighting needs are extensive, also consider seeking professional design advice. Once you decide on the necessary fixtures, invest in the best ones you can afford. Counters and shelves offer an array of merchandising opportunities. For example, "facing" - a technique many retailers use - involves keeping all the stock pulled to the front of the shelves to give the appearance of a full inventory and create a more positive image of the store. Retailers can also set up counters and shelves to guide people through the store or to create special display areas. Of primary importance is that the store layout be reflective of customer needs. For example, people tend to stay longer in bookstores that have nooks that provide an "escape" from pedestrian traffic. On the other hand, customers in a hardware store are likely to prefer straight aisles with clearly labelled products that are within easy reach. Although manufacturers and service companies often do not have counters and shelves, per se, they still have places where "products" can be displayed. Many businesses underestimate the merchandising opportunities of the waiting room, for example. Are the tables in your reception area covered with old magazines and newspapers, or brochures and newsletters that detail your various services? Has your company won any awards that can be displayed? Anything that educates the customer about your business and what it offers should be incorporated into your merchandising program. End caps and power islands are frequently used for special

displays. End caps (the end of a shelf or gondola in a store) can promote new products and services, sell higher-profit impulse items, call attention to key areas of the store or feature educational information about products and services. Power islands are attention-getting, free-standing displays that can be used in the same way as end caps. If they are eyecatching and colourful enough, they can also help direct people through the store or to certain areas of it. Cross-organization, when products from different departments are displayed together, can create an effective merchandising opportunity. The most obvious example of this technique is furniture showrooms. Rather than displaying all the sofas, lamps and tables in separate areas, successful retailers put them together to create model rooms. Similarly, manufacturers and service firms can group products together in brochures and presentations. Product demonstrations offer another way to gain attention and show customers what they can do with the product after purchasing it. For example, hand-woven baskets can be filled with fruit, letters, condiments or bath products. Similarly, vases can be filled with flowers, potpourri or colored marbles. Demonstrating how shoppers will benefit from the purchase of a product can also dramatically increase sales. One department store ran a video in the accessory department that demonstrated how to tie silk scarves. Sales increased 50 percent as a result. The key to merchandising is simplicity and imagination. Entrepreneurs should develop a merchandising plan appropriate to their specific business and re-evaluate it on a regular basis. It is important to keep up with new merchandising ideas and to update your image periodically. For example, the olive-green office furniture that looked good in the 1970s may be less appealing to your 21st century client. Similarly, it's no longer wise to assume that men make the majority of purchase decisions and therefore cater exclusively to masculine sensibilities. While merchandising does involve time and energy, a good program is an integral component of presenting a coordinated and attractive image in the marketplace. Everyone persuades for a living. There's no way around it. Whether you're a sales professional, an entrepreneur, or even a stay at home parent, if you are unable to convince others to your way of thinking, you will be constantly left behind. Donald

Trump said it best, "Study the art of persuasion. Practice it. Develop an understanding of its profound value across all aspects of life." In Garment terms Merchandising department is the star of the department among all the working departments in the Export concern, because Merchandising is the only department having maximum control over the departments and total responsible for Profit and loss of the company. After LPG (Liberalization, Privatization & Globalization) the business gets more important and now merchandising is on its hot seats. So, it is necessary to understand the day to day happenings of the star department. Merchandiser is the interface between Buyer & Exporter. He is the responsible from order analysis to shipment. So Merchandising is the very valuable department in the Apparel Industry. This Article explains the main responsibilities of merchandisers. Merchandising is the department which mediates marketing and production departments. Some times, merchandising department will have to do costing and pricing also. In any case, the merchandiser is the person whose responsibility is to execute the orders perfectly as per the costing and pricing. So it is a very valuable department. Internal & External Communication Earlier, we had seen the importance of communication with buyers. By the same way, internal communication is also very much valuable. As the other departments will follow the instructions given by the merchandising department, they have very high value. Other departments don't know the buyer's instructions; they know only the merchandising department's instructions. So it is the sole responsibility of merchandising department to instruct other departments the specifications and instructions of buyer's orders clearly. Merchandise- means goods bought and sold; and trading of goods. Merchandising- is an activity of selling and promoting the goods.

a. What does a Merchandiser do? Merchandiser is a person who interacts with the buyer and seller, and also puts efforts into proper relation between buying offices/ buying agents/ agency and seller/ exporter in terms of executing an order. b. Merchandiser in garment industries: In the field of marketing and services, Merchandiser is at a position of utmost importance, He is the person who coordinates with various departments for a uniform business. Objects of Merchandising Merchandising denotes all the planned activities to execute and dispatch the merchandise on time, taking into consideration of the 4 Rs to replenish the customer.

Right Quantity: To dispatch right quantity of product what buyer ordered. Right Quality: It should be with right quality as accepted both parties. Right Cost: Everybody wants more from what they are paid. Right Time: No one wants to wait idle even in a Restaurant. Keeping delivery schedule is mandatory.

Qualities of Merchandiser 1. Communication Skill: The communication is very much important to promote the business activity. The merchandiser should remember that communication must be lurid and should having face to face conversation with the buyer. 2. Planning Capability: Merchandiser should be capable of planning, based on the planning the order is to be followed. If the planning is not done properly it will directly affect the delivery time of the order. 3. Decision making: For a Merchandiser, decision making power is most important. He should think about the decision to be taken and to act in a right way. 4. Loyalty: Loyalty is an essential character of human beings. Especially for the business people like merchandiser it is a must.

5. Knowledge about the field: Merchandiser should have adequate knowledge about the garments, Computer knowledge, and technical knowledge to communicate with different people in the business is a must. 6. Co-ordinate & Co-operate: Merchandiser is the person who is actually co-ordinate with the number of departments. To Co-ordinate with different people in the industry he should be co- operative. 7. Monitoring ability: Merchandiser should monitor to expedite the orders. 8. Other qualities: Education, Experience, Situational Management, Ability to Evaluate, Dedication, Knowledge of expediting procedures. Function of Merchandisers Developing new samples, execute sample orders Costing Programming Raw materials / Accessories arrangement Production scheduling (or) route card drafting Approval of various Process, Pattern and size set Pre production follow up Meet Inspection Agencies Production controlling Identifying shortages and make arrangement for the shortages Following quality assurance procedures, quality control procedures Monitoring the in-house, sub-contractors and junior activities Buyer communication Communication with sub-contractors, processing units & other 3rd parties Proper reporting Highlighting to the management Record maintenance Developing samples Placement of orders to suppliers Taking measures for consistent production Taking preventive action to maintain the targeted performance in all areas of activities Attending meeting with superiors and furnishing the required details about merchandising Important Duties

Costing or Calculating Garment Price In many companies, costing is done by costing officer & CEO. But in some places, it is done by the Merchandisers. Some important terms in costing

Yarn cost Process cost Process loss CMT (Cutting, Making & Trimming) Negotiation (getting the best out of a deal) Commission percentage (%) for Middle man Shortage Buyer specification (It is buyers responsibility to specify the quality required) Quantity Currency Mode of Shipment (sea, air) FOB (Free On Board) CIF (Cost, Insurance and Freight) OH (Over head) Quota(Not applicable nowadays) Profit (level of %)

Quality Control: One of the Major responsible jobs handled by Merchandise department is Quality Control Textile Testing & Inspection TESTING: (1) ANALYSING (2) TESTING Analyzing is one time process, which takes place at the time of confirming the order with the Buyer as well as the raw material quality. Total cost of the garment is definitely based on the raw material quality & composition. Ex:Count & Construction of the yarn used in the fabric or garment, Fibre composition of the raw material, Type of Dye or print used in the garment, etc.

Testing is a process to understand, the quality of the produced item meets the requirement of the buyer. Testing is done on every lot or selected lots or wherever buyer asked. INSPECTION: Inspection is the visual examination or review of raw materials partially finished components of garments and completely finished garments in relation to some standards, specifications, or requirements as well as measuring the garment to check if they meet the required measurement. Types of Inspection: 1. Incoming material inspection: After fabric is received, the same should be inspected for the following purpose 1. 2. 3. 4. 5. GSM Dia Shrinkage Color Streaks Color matching

2. In - process Inspection: Inspection done in between any process or in between any sewing operations, this may be on partially finished (or) semi finished garments. 3. Flip checking: Inspection done in between by the operators or by is assistance during the sewing operations before the garments are bundled. 4. Patrol inspection: Inspecting activities of a particular area or line. It is called as line supervision. 5. Pre-Final Inspection:

It is done to the final inspection merchandiser or QC or both can do pre-final Inspections. After pre-final inspection if garment are passed. It will send to final Inspection. After final inspection only, the decision of passing or rejecting is made. 6.100% Inspection: Inspection should be done in 100%. In the inspection center. 7. Original of final Inspection: First time inspection of the packed merchandise goods is called original inspection. If QC are gratified with the quality of merchandise. We can pass a lot, if quality of merchandise is not up to the standards, rechecking should be done. Again it should be produced for re inspection. 8. Final Random Inspection: It is random inspection done according to the customers individual requirements. Standard after the shipment have been completed, packed and ready to ship. Colour appearance, workmanship, style etc will be checked against the customers specification. Inspection Parties: a) Internal Quality Controller:

Inspection done by the Company internal quality control to check the quality parameters before to Final Inspection. b) Quality represented by buying Agencies:

Inspection done by buying Agencies quality control to check the customer requirement. c) Third Party Inspection:

Inspection done by third party like SGS or ITS. Sourcing: Introduction A basic decision in sourcing either materials or production is to whether to make or buy the desired product. In this paper the importance of sourcing types and its various dimensions are

discussed and the relationships of key business functions to material sourcing are also discussed. Make-Or-Buy Decisions Making involves manufacturing their own raw materials and/or finished products in the firms own production facilities and buying involves sourcing from vendors. So the decision to make a product involves the capacity available in-house of the manufacturer and desire to reduce costs, availability of technology and unsatisfactory supplier or vendor performance. The decision to buy a product from the vendors arise when there is availability of a product at a cheaper cost, non availability of latest technology and inability to manufacture such volumes in in-house facility. Whether to make or buy a product is based on the four important parameters like cost production capacity quality and timing The below chart gives the relationship of key business function to material and production sourcing. Merchandise plan determines the number of styles, sizes and colors that are appropriate according to sales forecasts and other data. Production capacity planning are translations of merchandise plans into numbers and types of plants, machines and operators required to produce the line. The combination of sales forecast, merchandise plans, production specifications and production capacity estimates provided a basis for developing an effective materials and production sourcing network.

Material Sourcing Responsibilities The people responsible for acquisition or procurement of materials may include buyers, designers, merchandisers, sourcing specialists or purchasing agents. The responsibilities of persons responsible for sourcing are given below.

Provide an uninterrupted flow of materials and services necessary for maximizing the efficiency of the manufacturing process. Source the materials that are suitable to the purpose at the best possible prices. Minimize inventory investment. Minimize inventory shrinkage and loses caused by theft, damaged and obsolete materials. Develop good vendor relationship. Develop reliable alternate source of supply. Develop personnel and execute policies and procedures that provide materials at the lowest possible prices.

Retail Buyers versus Material Buyers Retail buyers are usually involved in consumer goods wholesale markets. The chief responsibility of the retail buyer is to form a select assortment of finished goods to offer the stores customers. Fashion shows help the retail buyers to understand fashion trends, silhouettes and color systems.

Material buyers are usually involved in purchasing producer goods in primary markets at the mill level. They tend to purchase in high volumes from few suppliers than retail buyers. Both the retail and material buyer are limited by budgets, contract terms and inventory space. Purchasing Criteria The materials to be sourced are checked for the following criteria: 1. Samples: The materials intended for purchase are assessed by the samples received from the vendors. The samples should be accompanied with its specifications 2. Certifications: Some vendors provide certification of product quality. It is intended to provide assurance to the buyer of the quality of goods shipped and eliminate the need for receiving inspection. The certification may include the following,

Documentation of flaws and their locations. Test reports Date of testing and the laboratory details

3. Order minimum: The decision to source a material from a particular vendor is decided on the order minimum which is nothing but the minimum or smallest quantity a vendor shall supply on a single purchase order. Import goods may require longer lead time but often have low minimums when compared to domestic suppliers. Minimums also relate to availability, order processing, packaging and shipping costs. 4. Mode of Packing: The mode of packing is also important when a material is sourced from the vendor. If for example a firm wish to purchase woven fabrics it will be supplied in rolled full width on a cardboard tube. The buyer should source goods based on the mode of packing so that the goods are not damaged in transit. 5. Delivery and Payment Terms: The buyer should clearly define the mode of payment and the delivery conditions

so that there is no misunderstanding between the vendor and the buyer. 6. Professional Credibility of the Vendors: A vendors reputation in the trade is often a strong factor in determining whether the materials can be sourced from him. The buyer may check with the vendors client list and enquire about his quality of service and timing of delivery. Overseas Sourcing Oversees sourcing has always played crucial role in enhancing value addition to any global supply chain. This importance has been elevated in recent years due to escalation of local cost of production as well as price-pressure from competitors. Apparel business is no exception to this and has always based its competitiveness on global sourcing. From retailers to various levels of back-end manufacturers of garments, textiles and accessories, all are continuously searching new global bases for competitive sourcing. The current article is based on the author's experience in developing oversees sourcing from China. Many apparel companies have set own liaison office in China & Hong Kong to manage sourcing from China. Over the years sourcing from China had become attractive, going by the cheaper direct sourcing cost compared to similar items sourced from elsewhere. However, managing supply right from China was fraught with several problems. Out of various problems companies usually faced, long, unpredictable transit time slowed down inventory turn and made purchase and inventory manager jittery about anything to be sourced from the land of dragon. Also any logistics manager had obvious reason to undercut China-sourcing as it invariably involved him in nightmarish entanglement with various ports, customs officers besides negotiating with various shipping lines to get berth in time across the port. Moreover, ensuring quality also became challenging that saw most quality officers waving yellow flag at the proposition of sourcing fabric and trim from China. Apart from all these issues, difficulties in managing expected time of dispatch and arrival (ETD and ETA) and synchronizing these with in-house manufacturing schedule were next to

impossible when one sourced from China. Also, any disruption due to different time zone, disparate culture and language barrier all added to the list of factors throwing spanner into its supply flow of an apparel company. On top of it, commercial documentary intricacies- from not mentioning country of origin clause in L/c to mistyping consignee name or port of destination led to L/c amendment and delay in release of goods from port. Quality and quantity assurance were another hurdle that sometimes messed up sourcing from China. Invariably some parts of every consignment were hit on either/ both of these two grounds: Bureaucratic Port and Customs delay. However, it is possible to overcome all these challenges by formulating a logical and sustainable strategy to manage China sourcing. First and foremost of these strategies is to develop "Total Sourcing Cost (TSC)"concept to measure sourcing efficiency from China. Total sourcing cost comprises ex-factory price, freight cost, inventory cost, cost of rejected goods, cost of duties and cost of after-sales service. Only after finding TSC, management can rightly focus on where to control cost while sourcing from China. Without calculating TSC, management only focus on ex-factory cost from China and end up paying more on account of other associated costs as described above. Hence TSC should be made pivotal in balancing any sourcing decision in favor of China. It is also necessary to create a Hybrid Sourcing Model based on direct involvement; third party and agent based sourcing. All three can add significant values while taking care of the challenges any company could have encountered for their China sourcing. In the direct involvement, company need to involve themselves directly in building infrastructures like streamlining quality inspection and control. They can also take initiative in understanding the customs rules and regulation, which play vital role in streamlining sourcing process. Developing oversees office including recruiting local staff should help companies in this regard, as local Chinese can add value to inspection and commercial management more quickly. It is also necessary to invite Third Party (3P) service providers to take care of port-management, to sort out intellectual property (IP) issues etc. Finally, companies should not hesitate to take help from local agents having vast and superior

knowledge about China market. These agents provided significant clue in collaborating with key suppliers in China. Putting together all these strategies, any company should find itself on firm footing as far as China-sourcing is concerned. It is mandatory now to look oversees sourcing from China not form singular objective of reducing FOB cost, but also form multiple objectives of reducing various costs associated with several factors mentioned in this article. Only when companies are able to take a holistic outlook in managing all these cost associated with their China-sourcing, they can make "Right sourcing strategy Right from China". This is certainly a challenge worth for sustainable improvement in any organizations bottom line, especially for those having oversees sourcing from China.