Final

Kishan International
CHAPTER-I INTRODUCTION HISTORY OF SILK: Silk, the mystical fiber has a fascinating history. Silk- the most beautiful of the nature fiber is acclaimed as the 'QUEEN OF TEXTILES'. No other fabric is as soft as silk is and as such its fall on the body is also alike exotic and sensual. It has various uses, from saree to carpets, furnishings and embroidery. The isothermal properties of silk are the reason to keep the body warm in winter and cool in summer. Its hosts of other qualities are the reason for its much demand. Its strength and fineness enable intricate and delicate embroidery and also to be used in operational theatres for stitches. Silk was known and produced in India from pre-Vedic times, though it was discovered in China as the legend goes on. The discovery of silk is attributed to the Yellow Emperor's wife, the Empress Xi Ling (sometimes referred to as the Lady Hsi-Ling Shin) in 3000 BC. As she sat under a mulberry tree drinking tea, her respite was interrupted by a cocoon falling into her cup. As she removed the unraveling cocoon from her teacup, Xi Ling marveled at the delicacy of the threads. Realizing that the tree was filled with similar cocoons led to the beginning of the silk industry in China. Thus, 'XI- Linqh Shi became the GODDESS of Sericulture'. There was no intention of sharing the knowledge that made such a wondrous fabric but a keen desire to create a market for this product did
1 PONDICHERRY UNIVERSITY
exist. As a result of international demand, the Silk Road was created, allowing merchants to travel across China and into other countries to trade this precious commodity. Border guards searched travelers for silkworms, eggs, and cocoons, executing on the spot any smuggler that they caught. Despite such measures, the secret did escape. SILK WEAVING IN INDIA India has also a rich and varied culture of silk as China and Japan have. The civilization of Harappa and Mohenjo Daro is very famous all over the world. About 4000 years ago these people had lived vary rich culture and aware of using dye with madder, who did not confine to be in one place but travel to other places on sea roots. The India's rich and complex textile history goes back as old as 15th century which was also famous for sculpture and paintings. Unlike the other countries the silk history of India is different. The climatic conditions and geographical features contribute a lot for its evolutions. The indigenously produced silk moths, whose cocoons give silk thread that is mostly suited for weaving, are grown widely. The Silk had passed through various stages under various rulers in India. Today in India there so many centers, which are providing elegant silk varieties. There are quite a number of silk production centers in the southern part of India, at Kanchipuram in Tamil Nadu district. There are also other places like Ami, Tanjore, Madurai and Coimbatore. In the state of Karnataka, Bangalore and Mysore produce a lot of
silk variety sarees. In the North, Banaras in Uttar Pradesh produces a very famous and fabulous world-class designer's sarees in silk. In West Bengal, Kolkata is famous for production and export of silk sarees and good. Yet there are so many Places in India those are producing silk for different uses. Weaving cloth from silk started only in the seventeenth century. Examples of some of the works done during that period could also be seen in museums and churches in the country. The first ones to start using silk thread for producing rich cloth were the artisans of Varanasi (Banaras). They produced silk sari's probably to adorn the deities of the Goddesses and dhotis for the Gods. It was probably later, when the zamindars or people belonging to the ruling class, started treating silk garments as a status symbol that more number of weavers got engaged and the mass production of silk cloth started. The silk cloth produced in Varanasi as a craze among the aristocrat society around the world and this silk society city continues to be one of the major exporters of silk in the world. Later on the Government of India had identified the importance of silk industry as an Agro-based employment-oriented industry suitable for the development of rural India. As early as in 1949, the government of India had constituted the CSB- Central Silk Board under the stewardship of Pt. JAWAHARLAL NEHRU who was its 1st chairman to look after the development of Silk in India. Experienced it was discovered-silk withstood away a daunting challenges from other natural and artificial fibers and yet, remain the undisputed queen of textile since, inherent
affinity for days and vibrant endures, high absorbency, light weight, resilience and excellent drape etc. These features have made silk the irresistible and inevitable companion of the eve, all over the world. How silk is produced? From the cocoon to yarn Various insects produce silk, but by far the largest quantity comes from the silkworm 'Bombay Mori'. This is the silk worm, which feeds on mulberry leaves and forms a cocoon of Silk before pupating. The threads from several cocoons are subsequently unwound together to form a single strand of raw silk. This fine thread is the basic component of all Silk yarn and fabric. Some of the gum, which the silkworm uses to hold the cocoon together, remains to assist the delicate fiber during processing. It is subsequently washed away. Silk Weaving Weaving is the operation that creates a fabric by interlacing the warp yarns (lengthwise) and the weft yarns. Weaving is carried out on looms, after a series of preliminary operations including: Warping: This means preparing the warp by rolling all the warpyarns on to a beam, under the same tension, strictly parallel to each other and in a certain order. Pirning: The weft (cross-wise) yarns are put on to a pirn, which is then placed inside the shuttle in order to lay the weft-yarn between
the warp-yarns. In the past twenty years, enormous strides have been made in improving not only the machines involved in the preparation of weaving, but in the loom itself. Non-stop weaving has been made possible by the introduction of automatic pirn changing. And there are now shuttle less looms, (more properly called weaving machines). These machines use lances, or projectiles, or a jet of compressed air to shoot the weft-yarn between the warp-yarns, instead of the traditional shuttle, and at vastly higher speeds. This increased automation also meant that one weavingworker can now look after 20 looms at the same time, instead of only 4 traditional looms. This has consequently led to much greater vied and productivity.
Dyeing, Printing, Finishing There are two main types of silk fabrics, each with its own specific characteristics: The first category includes those fabrics made from yarns which have been dyed beforehand: these fabrics are known as yarn-dyed or dyed-woven (e.g., taffeta, duchess satin, and many patternwoven fabrics) The second type includes all those fabrics that are dyed after weaving, known as piece-dyed fabrics (e.g., crepes, twills, etc).
DYEING: Up until about 1815-1830, only yarn-dyed fabrics were woven, as piece dyeing was still unknown. Yarn dyeing still uses the same basic technique, which consists of soaking the skeins of raw silk in tanks containing the dyestuff. Piece-dyeing, introduced in Lyon, became an industrial process around 1849, and for a long time remained a specialty of Lyon Region. There are several different processes of piece dyeing. The fabric can be fed into the dye-bath through two cylinders or it can be fixed to a round jig, which is immersed in the bath. While the fabric is attached to the jig, the dyestuff is fixed, and then the fabric is rinsed and dried. Printing Printing consists of transferring a pattern to the fabric. Nowadays, printing is carried out in the following ways:
Block printing: Wooden blocks are engraved with the pattern to be printed, and the raised parts of the block transfer the dyestuff to the fabrics. However, this process is slow and laborious, and today is only used on a very small scale for handicraft fabrics. Roller printing: The Scotsman Bell invented the roller-printing method in 1785. Passing through two rollers, which have been engraved with the required design, prints the fabric mechanically. This method is ideally suited to very long runs, and so is not used very often for silk fabrics.
6
PONDICHERRY UNIVERSITY
Screen-printing: Sometimes knows as "a1 la lyonnais", because the
city of Lyon seems to have been the first to industrialize this process around 1850.A fine gauze is stretched tightly over a metal frame, and the design to be reproduced is transferred to the gauze. By a photochemical process, the "pores" in the gauze are partially blocked off allowing the dyestuff to be squeezed through the gauze where the design is to be printed. This process enables several colours to be printed one after the other, each colour requiring one frame. The design is printed on to a white fabric, or on to fabrics already dyed with a base colour. In this case, the base colour is not fixed, so that the colours printed through the screen destroy and replace the base colour. This type of printing is particularly intended for high-novelty fabrics, which are usually produced in relatively small quantities. It is, therefore, very widely used in printing silk fabrics. Finishing: With the exception of pattern-weavers, all fabrics have to be finished. It is the finisher who gives satin its shimmering suppleness and its "hand". Finishing gives a fabric the desired appearance and feel. There are numerous finishing processes, physical and chemical. Finishing includes treatments such as crease proofing, water-proofing, fireproofing, etc. SERICULTURE INDUSTRY AND ITS POTENTIAL IN INDIA: SERICULTURE, the technique of silk production, is an agroindustry, playing an eminent role in the rural economy of India. Silk-fibre is a protein produced from the silk-glands of silkworms.
According to reports available, sericulture was introduced into India about 400 years back and the industry flourished as an agroindustry till 1857, with an annual production of two million pounds of silk fibre. The industry survived the onslaught of the Pebrine disease during the period from 1857 to 1895. However, after 1928, the sericulture industry showed a decline in its production owing to the fierce competition from advanced sericulture countries, such as Japan, China and European countries. After the Independence, the industry is flourishing as an agro-industry, giving employment to over 3.5 million people in the Country. Among the developing countries, India enjoys a very favourable position for doubling the present status of silk production of 2,969 tones owing to the low cost of labour. Sericulture is ideally suited for improving the rural economy of the country, as it is practiced as a subsidiary industry to agriculture. Recent research has also shown that sericulture can be developed as a highly rewarding agro-industry. IMPORTANCE OF SERICULTURE: High employment potential: Around 60 lakh persons are engaged activities in the country. Every 3.07 kg of silk produced and used in handlooms generates gainful employment of one man per year. Provides vibrancy to village economies: About 57% of the gross value of silk fabrics flows back to the
in various sericulture
cocoon growers with share of income to different groups as under: 56.8% to cocoon grower. 6.8% to the ruler. 9.1% to the twister. 10.7% to the weaver. 16.6% to the trade. Thus, large chunk of income goes back to the villages from the cities. Low gestation, high returns: Estimated investments of Rs.12, 000 to 15,000 (excluding cost of land and rearing space) is sufficient for undertaking mulberry cultivation and silkworm rearing in one acre of irrigated land. Five crops can be taken in one year under tropical conditions. Women friendly occupation: Women constitute over 60% of those employed in down-stream activities of sericulture in the country. This is possible because sericulture activities starting from mulberry garden management, leaf harvesting and silk worm rearing is more effectively taken by the women folk. Even silk reeling industry including weaving is largely supported by them. Ideal programme for weaker sections of the society: Sericulture can be practiced even with very low land holding like9 PONDICHERRY UNIVERSITY
% acre of mulberry garden and silk worm rearing can support a family of three without hiring labour. Eco-friendly activity: As a perennial crop with good foliage and root-spread, mulberry contributes to soil conservation and provides green cover. Currently, only about 0.1% of the arable land in the country is under mulberry cultivation. Satisfies equity concerns: Benefits of sectoral value-addition primarily accrues to rural households, as the end-product users are mostly from the higher economic groups to low end groups. India is the second largest producer of silk and also the largest consumer of silk in the world. It has a strong tradition and culture bound by domestic market for silk. SILK TYPES: There are five major types of silk of commercial importance, obtained from different species of silk worms, which in turn feed on a number of food plants. These are:1. Mulberry 2. Tasar
3.
Oak Tasar
4. Eri 5. Muga
Mulberry: The systematic cultivation of mulberry, the food plant of Bombay Mori, is the first step in the production of mulberry silk. The total area under mulberry in India is 1,20,567 hectares, of which only 28,781 hectares is irrigated Whereas, mulberry is raised as a bush plantation in Karnataka & West Bengal, it is grown as trees in Jammu & Kashmir. The propagation of mulberry in Karnataka & West Bengal is through vegetative propagation, whereas root-grafting & bud-grafting are practiced in the hilly areas of Jammu & Kashmir & Uttar Pradesh. Tasar: Three species of Antherea are used for the extraction of tasar silk in India. They are Antherea mylitta, A. perniyi & A. royeli. In the case of the non-mulberry silk produced in India, 393 tonnes is produced from Antherea mylitta in Madhya Pradesh, Orissa & Bihar. This silkworm is reared on trees of Terminalia tomentosa, Terminalia Arjuna found in the jungles of central & north-eastern parts of India. The tasar silkworms also exist in nature in jungles & are collected by the tribal people during certain seasons. The first crop, usually called the seed crop, is raised during May to July, whereas the commercial crop is raised during October-November. Oak Tasar:
The recent introduction of Antherea perniyi & A. royeli on oak in Manipur, Himachal Pradesh, U P, Assam, Meghalaya Jammu and
Kashmir, has opened up new vistas for the production of superior quality tasar fibre in India. The cocoons spun by the Antherea perniyi can be easily reeled & superior-quality fibre can be extracted. Antherea royeli is available in oak jungles of the sub-Himalayan belt. The cocoons are made up of 2 layers, an outer layer of thin floss & an inner thick shell of silk. The silk can be extracted only from the inner layer.
Eri The silk produced by Philosamia racing is called eh silk. It is
grown in Assam, West Bengal, Orissa, Bihar and North-Eastern parts of India The heavy rainfall & humid atmosphere in these parts are suited to eri culture.
The worms pass four moults during its larval period of 30-32 days. Eri silkworm is generally hardy & not easily susceptible to diseases. At the end of the larval period, the larvae crawl in search of a suitable place among castor leaves to spin the cocoons. The cocoons are usually white. However, brick red cocoons have also been observed. MUGA: The golden-yellow silk produced by Antherea assama is found only in the Brahmaputra Valley of India. This species of silkworm is semidomesticated in that the worms which crawl down at the end of their larval period are collected by the rearers. They are allowed to spin cocoons in the rearer's houses.
The cocoon has a very weak peduncle & is golden-yellow. The cocoons are boiled in soap & soda solution & are reeled on an appliance called"bhir". It is a tradition in Assam to raise muga silk. The total production of muga silk in India is 41 tonnes.
THE PROPERTIES OF SILK Silk has wonderful properties of movement, flow and luxurious sheen which come from its smooth, continuous, triangular fibres which reflect light. It is also a very strong, elastic fibre which can stretch 2025% without breaking and will stretch back; that is, it has a memory. Once woven, it can have a wide variety of appearances and feel from delicate, translucent chiffon gauze to robust, opaque, slubby fabrics such as douppion. If you want to check whether a fabric is, in fact, silk you can burn a small piece. It should not burn easily and leaves a shiny black residue which crumbles to ash if you rub it between your fingers. INTRODUCTION TO EXPORT: Promoting exports has always been a challenge to developing nations, particularly those severely affected by a balance of payment crisis, ever inflating the size of the external debt. Exports are the lifeline and motive power for economic growth and development of developing countries. The share of the developing countries in the world export trade has been slowly rising. This is so, because of the very structure of the economy of the developing countries. Their export consists mainly of a few primary products, and their export surpluses are inelastic. They have
been exposed to wide fluctuation in their export in their export earnings because of the continuous declining prices of primary products in the world market. The expansion in domestic demand due to population growth and rise in living standards also affects their export surplus. With their export earnings sluggish and small, the import capacity of many developing countries is limited. Several devices are therefore adapted by the developing countries to overcome this constraint, the most important of which is foreign aid. But, no country can depend on foreign aid permanently for its growth. Inadequate flow of foreign capital could become a severe constraint on economic growth, as has been demonstrated in the case of India in recent years. But, export expansion is a complex task. In most of the developing countries, continuous supplies to exporters are neglected when higher profits in the home market develop pressures for retention of production for local consumption. Producers show little interest in export, because they enjoy a sheltered market at home. It is here that export incentives assume significance. Towards boosting exports, fiscal and other incentives, however, can only act as catalytic tool and that too over a limited period. In the long run, it is the capacity of the country to produce and supply goods of recognized standards at competitive prices in international markets that would prove of lasting value. In order that India's export may appreciably increase and the maximum advantages from value added be obtained, dependence upon unprocessed agricultural products should be reduced gradually, while exports of processed agricultural products and manufactured and processed industrial goods and engineering and chemical products should
be expanded steadily. The volume of exports will therefore basically depend on how profitable the exports are. Here it is that we should match our prices with the international prices, irrespective of our cost of production. This should be done with the help of Government through appropriate measures. The exporting industries should be given special facilities and assistance for modernization and supply of inputs. EXPORT PROCEDURE: The procedure generally adopted for exporting goods to a foreign country is described as follows1. Receipt of an enquiry: Receipt of an enquiry from the prospective importer is the 1st step in export procedure. The importer who wishes to import goods, generally, writes a letter of enquiry to the exporter, inquiring about the price and terms on which the exporter will be able to supply the goods required by him (i.e. the importer). 2. Sending a quotation: After receiving the letter of enquiry from the importer, the exporter sends his Quotation to the importer. The quotation sent by the exporter contains full details of the quality, quantity and price of the goods, method of packing, terms of payment etc. The price quoted by the exporter in his quotation may take any one of the
following formsa. Loco Price b. Free Alongside the ship Price or F.A.S. Price c. Free on board price or F.O.B. price d. Cost and freight price or C & F price e. Cost, insurance and freight price or C.I.F. price f. Franco price 3. Receiving an indent If the importer is satisfied with the quotation, he accepts the quotation and sends an indent to the exporter. The indent is the order for the supply of goods placed by the importer with the exporter. The indent contains details of the quantity, quality, and price of the goods ordered, instructions regarding packing, marking, shipping and insurance, date of delivery of the goods, method of payment to be adopted by the exporter, details of important licence, etc. An indent may be an open indent or a closed indent. An open indent leaves the selection of goods to the exporter, but a closed indent gives the specification or particulars of the exact goods required, and so, the exporter has to comply with the specifications given in the indent. 4. Obtaining an export license: After receiving the indent from the importer, the exporter has to see whether the goods to be exported are subject to export control or free. If the goods to be exported are subject to export control, the exporter has to obtain the necessary Export Licence or Export Permit from the Export
Trade Controller. If the goods to be exported are free from export control, they can be exported without any export licence. 5. Collecting or assembling goods: After obtaining the necessary export licence, the exporter has to collect or assemble the goods which are to be exported. The goods collected by the exporter must correspond to the instructions given by the importer in the indent. 6. Packing and marking of goods: After collecting the goods, the exporter has to pack the goods. While packing the goods, certain points must be borne in mind. First, the packing must be done strictly according to the instructions given by the importer in the indent. If the packing is not done according to the instructions given by the importer in the indent, and if any loss arises as a result of defective packing, the exporter is required to bear the loss. Secondly, the packing must give protection to the goods. Thirdly, the packages must be kept as small in size as possible because, the freight is charged according to the weight and size of packages. 7. Appointment of a Forwarding Agent to attend to the Shipment of Goods: After packing and marking the goods properly, an exporter has to make the necessary arrangements for the shipment of goods. The work of shipment of goods may be done by the exporter himself or may be
entrusted to a specialized agent known as- Forwarding Agent. But, generally, this work is entrusted to a forwarding agent, as there are a number of formalities to be performed. The forwarding agent is an individual, a firm or a company which performs the various formalities in connection with the shipment of goods on behalf of the exporter, for some commission.
8. Dispatch of goods to the Port by Road, Rail or by Air: After entering into an agreement with the forwarding agent for the shipment of goods, the exporter has to dispatch the goods to the port either be road, rail or by air. Alternatively, the forwarding Agent may himself arrange for the movement of goods from the exporter's warehouse to the port. 9. Formalities to be performed by the Forwarding Agent at the porta. Taking delivery of the goods at the port: After the goods reach the port, the forwarding agent takes delivery of the goods. b. Securing shipping space: After taking delivery of the goods at the port, the forwarding agent has to contact a shipping company for securing space for sending the goods. For securing the shipping space, the forwarding agent furnishes the shipping company with all the details regarding the goods to be shipped. After getting all the particulars of the goods to be shipped, if the shipping company is willing to carry the goods, it will issue to the
forwarding agent a document called- Shipping Order. The Shipping Order is an order issued by the shipping company to the captain of the ship, to receive the goods on board the ship. c. Going through the customs formalities: After securing the shipping space in a ship, the forwarding agent has to go through certain customs formalities. The various customs formalities under export trade are as follows: 1. The forwarding agent of the exporter is required to fill in a document called the Shipping Bill in triplicate (i.e. separate shipping bills have to be filled in for dutiable goods and for free goods). A shipping bill is a document prepared by an exporter or his forwarding agent, stating therein the various details of the goods exported. It is handed over to the customs office. It is usually prepared in three copies. It is useful for the purpose of calculating export duty, if any, and other statistical information about the exports of a country. A shipping bill contains several details. The most important details are: Description of the goods exported. Quantity of the goods exported. Quality of the goods exported. Value of the goods exported. Number of packages and markings on the packages. Port of destination. Name of the ship carrying the goods.
2. If landing and shipping charges are levied at the port, then, the forwarding agent is required to fill in another document calledApplication to Export in duplicate. 3. After filling in the shipping bill in triplicate and the application to export in duplicate, the forwarding agent has to present these documents along with the landing and shipping charges, if any, at the Landing and Shipping Dues Office or Port Office. The port office will certify these documents and return all the three copies of the shipping bill and one copy of the application to export to the forwarding agent, retaining one copy of the application to export for reference. 4. Then, the forwarding agent has to present all the three copies of the shipping bill at the customs office. The customs office will collect the export duty, if any, make the necessary entries in its books, retain the second copy of the shipping bill and return the original and the third copy of the shipping bill to the forwarding agent and will also issue the Customs Export Pass. 5. d. Payment of dock dues and obtainment of Dock Receipt: After getting the Customs Export Pass, the forwarding agent has arrange for carrying the goods to the dock. For this purpose, he has to fill in a document called Dock Challan in duplicate and submit it along with the Customs Export Pass and one copy of the shipping bill to the dock Authorities. The dock authorities will collect the necessary dock dues, retain the original dock chalaan with them and return the duplicate duly
signed to the forwarding agent. The certified copy of the dock chalaan will enable the forwarding agent to take the goods to the dock. When the goods are delivered to the dock, a Dock Receipt will be issued to the forwarding agent. Loading and the obtaining of Mate's Receipt- When the ship arrives at the port, the dock authorities will arrange for the loading of the goods on board the ship. When goods are loaded on board the ship, the Mate (i.e. the Assistant to the Captain of the ship) will issue a receipt. e. Mate's Receipt to the Dock Authorities: The dock authorities, in turn, will hand over the Mate's Receipt to the forwarding agent. The Mate's Receipt contains particulars like- the quantity of goods, number of packages, conditions of packing, etc. If the packing is in good condition, the Mate will issue a Clean Receipt. On the other hand, if the packing is not in good condition, the Mate will issue a Dirty of Foul Receipt. The forwarding agent must always try to get a Clean Receipt because a Foul Receipt may free the insurance company from the liability to make good of loss, if any. f. Obtaining of a Bill of Lading: After receiving the Mate's Receipt, the forwarding agent has to go to the office of the shipping company, present the Mate's Receipt and obtain a document known as a Bill of Lading in return. A Bill of Lading is an official receipt issued by the shipping company for the receipt of goods on board the ship. It contains the name of the shipper (i.e. the exporter), name of the ship, place of loading, port of destination,
description of goods , marks entered on the packages, freight paid or to be paid and the signature of the official of the shipping company. A Bill of Lading may be a clean bill of lading or a foul or clause bill of lading.
g. Obtaining of a Marine Insurance Policy: After the shipment of the goods, the forwarding agent will arrange for the insurance of the goods with a marine insurance company or underwrites in order to cover the risk of goods in transit. It should be noted that the insurance should be done strictly in accordance with the instructions given by the importer in his indent. h. Advice to the exporter: Having performed all the necessary formalities in connection with the shipment of goods, the forwarding agent will inform the exporter about the shipment of the goods. Then, he will send the Bill of Lading, Marine Insurance Policy and his own bill for his expenses and remuneration. 10. Obtaining of the other Relevant Documents: (a) Certificate of Origin: Owing to special trade agreement between two countries, goods sent from one country to another generally receive some preferential
treatment as regards to import duty. In order to enable the importer to take advantage of the preferential treatment as regards to import duty, the exporter has to obtain a Certificate of Origin from an institution authorized for the purpose. The Consul (i.e. government Official of the importing country residing in the exporting country, to look after the trade interests of the importing country), the Chambers of Commerce and the Trade Associations are authorized to issue the Certificate of Origin. The Certificate of Origin states the name of the country in which the goods are produced or manufactured. The exporter to the importer along with the other shipping documents will send this Certificate of Origin. (b) Consular Invoice: In many countries, import duty is charged on ad valorem basis (i.e. on the basis of the value of the goods imported). The procedure of assessing import duty on ad valorem basis takes much time, as the I packages have to be opened by the Customs Authorities for ascertaining the value of the goods. In order to enable the Customs Authorities of the importing country to assess import duty on ad valorem basis without opening the packages, the exporter has to get a Consular Invoice from the Consul of the importing country residing in the exporting country. In order to get the Consular Invoice, the exporter has to obtain a special form from the office of the Consul of the importing country residing in the exporting country and state therein the particulars of the goods and their value. Further, the exporter has to swear to the accuracy of the particulars given in the Consular Invoice. Thereafter, the Consul will certify the Consular Invoice and hand over the same to the exporter. Preparation of Export Invoice:
After making all the above arrangements, the exporter has to prepare an invoice known as Export Invoice, to be sent to the importer. The export invoice contains the details of the goods shipped, details regarding packing and marking, price of the goods and the total charges incurred thereon, the name of the ship through which goods are sent, the name of the exchange bank through which the hipping documents are sent, etc. 11. Securing the PaymentHaving prepared the export invoice; the exporter will try to secure the payment. There are mainly three modes by which the payment can be secured by the exporter. They are as followsA. First method: Under this method, the exporter draws a bill of exchange on the importer and sends it along with the other necessary shipping documents, such as the invoice, bill of lading, marine insurance policy, etc. to an exchange bank having a branch in the importing country for collection. Such a bill is called a Documentary bill. It may be a D/A Bill (i.e. Documents Against Acceptance Bill). The exchange bank sends the bill along with the other shipping documents to its branch in the importing country. If the bill is a D/A Bill, the branch concerned will give the documents to the importer after getting his acceptance on the bill. Then, on the maturity of the bill, the branch concerned will receive the payment from the importer and arrange for the payment to the exporter through the exchange bank in the exporting country. On the other hand, if the bill is a D/A Bill, the branch concerned will give the documents to the importer only after the amount of the bill is paid. After the receipt of the amount of the bill, the branch concerned will arrange for the payment to the exporter through the exchange bank in the exporting country. Generally, this
method of securing payment does not find favour with the exporter, as it involves delay in payment. B. Second method: Under this method, the exporter, instead of sending the bill through the exchange bank having its branch in the importing country for collection, discounts the bill with the exchange bank and gets the payment of the bill immediately. If the exporter discounts the bill with the exchange bank, he has to give a Letter of Hypothecation to the exchange bank, which authorizes the exchange bank to sell the goods in case the bill is dishonored by the importer. If the sale proceeds received by the exchange bank are less than the amount advanced by the exchange bank, the exporter is liable to pay the difference. This method of securing payment also does not find favor with the exporter, as it involves uncertainty of payment by the importer and a loss by way of discount. In this context, it is better to have some idea about a Letter of Hypothecation. C. Third method: Under this method, the exporter requires the importer to open a Letter of Credit with an exchange bank having its branch in the exporting country in favour of the exporter. In order to open a letter of credit at the exchange bank, the importer is required to have an account with the exchange bank depositing the requisite amount of money or giving sufficient security. Then, the exchange bank in the importing country will issue the letter of credit to the exporter authorizing him to ship the goods
and draw the bill of exchange on the exchange bank. The exporter, after receiving the letter of credit, ships the goods, obtains the necessary shipping documents, prepares his export invoice and draws the bill of exchange on the exchange bank and hands over all the shipping documents to the exchange bank, which will pay him the amount of the bill immediately. Generally, the exporter prefers this method, as it ensures quick and guaranteed payment from the importer. In this context, it is better to know about a Letter of Credit in detail. A Letter of Credit is a letter given by a banker undertaking to accept a bill of exchange drawn by an exporter on behalf of a specified importer. Generally, the banker demands some security from the importer for granting him a letter of credit. Letters of Credit are of several types. They are Revocable letter of credit. Irrevocable letter of credit. Documentary letter of credit. Clean letter of credit. > Revolving letter of credit. 12. Sending Advice to the ImporterAfter handing over the bill of exchange and the necessary shipping documents to the exchange bank, the exporter will write a (letter to the importer informing him about the dispatch of the goods, bill of exchange and other shipping documents. A copy of the invoice is also sent along with the letter so that the importer may know the amount payable by him to the exchange bank. After receiving the letter from the exporter, the importer will go to the concerned exchange bank and obtain the shipping documents. Thereafter, he will arrange for taking delivery of the goods,
when the ship arrives at the port. This is about the export procedure followed for exporting goods to a foreign country. Table showing Country wise exports of Kishan International 2005-2006:
Countries Australia Belgium Bangkok Canada Denmark Finland France Germany Greece Holland Hong Kong Indonesia Ireland Israel Italy Lebanon New Zealand Portugal South Africa Spain Sweden Switzerland Turkey Taiwan United Kingdom U.S.A.
Meters 15632.2 331.7 6.68 14285.9 153.8 0.00 19120.1 28067.1 75.6 6823.5 9607.6 46482.2 514.8 54.2 3653.7 1039.8 1126 393 551.1 5290.4 1749.3 4325.9 259.2 3181 62735.6 141003.42
Value (in Crores) 11169106.53 193397.71 7138.31 10614514.93 90724.49 0.00 9064894.92 15636162.34 47917.17 4616213.53 5587073.63 2018585.94 353486.15 32975.28 1535200.14 737624.91 863702.08 211997.54 523476.32 4080704.7 1381743.53 3458231.53 303782.7 2383778.5 31215775.97 99391447.64
The above table shows that Kishan International exported to all the major countries in the year-2005-2006. Their major exports were in
Australia, Canada, Europe, and U.S.A.
2004-2005: Countries Australia Belgium Bangkok Canada France Germany Greece Holland Hong Kong Indonesia Israel Italy Lebanon New Zealand South Africa Spain Switzerland Taiwan United Kingdom U.S.A. Meters 7106.5 161.7 0.00 1579.4 4782.3 4103.5 899.3 2820.1 11422.9 762 1127.8 1746.8 5606.3 564.4 155.2 424.3 653.8 416 9798.3 29887.03 Value (in Crores) 4480370.38 112741.17 0.00 1294054.15 1886410.82 2771883.71 686689.87 2155362.01 5681862.2 174805.39 766755.36 918708.49 2844747.83 426277.72 143404.8 453788.85 476712.21 289664.55 5616623.01 23149690.06
The table shows that Kishan International exported its products maximum to Australia, Europe, Canada and U.S.A. in the year-20042005.
2003-2004 Countries Australia Belgium Bangkok Canada France Germany Holland Indonesia Ireland Italy New Zealand Portugal South Africa Spain Switzerland United Kingdom U.S.A. Meters 21606.8 2884 258.5 7617.9 3319.5 18304.2 37550 103430.12 427.2 17233 1266.3 54.9 270.1 81.7 721.6 2126.7 101877.87 Value( in Crores) 13259013.87 1324581.48 206961.56 4901300.23 1206144.36 10708613.37 18269695.3 49719717.81 309162.51 5557816.03 899490.62 33044.31 143828.25 36287.06 538736.8 1428302.39 6222878.01
The table shows that the Company exported to European Countries, to a major share in the year-2003-2004.
2002-2003: Countries Australia Belgium Bangkok Canada France Germany Holland Indonesia Ireland Italy New Zealand South Africa United Kingdom U.S.A. Meters 26239 2781 1052.36 16455.1 10530.8 55684.4 91609.5 2900.37 825.9 27442 2870.4 297.9 27219 82722.09 Value( in Crores) 16116016.92 1027238.15 665929.75 _^ 8895999.44 3648509.12 32972527.61 47600712.07 1448306.89 607436.79 10019070.24 2300072.92 134342.74 1472870.98 56413741.67
From the table it can be inferred that Kishan International exported its silk products to Europe, U.S.A. Canada, Bangkok, to a major extent in the year-2002-2003.
2001-2002 Countries Austria Australia Belgium Bangkok Canada Egypt France Germany Holland Indonesia Italy New Zealand United Kingdom U.S.A. Meters 470.3 16225.7 6376.5 3311.33 30964.6 1641.3 555.9 32968.1 78339.4 7.41 4723.6 1340.9 4427.2 76284.14 Value( in Crores) 166251.05 10301903.33 1827336.18 1894304.81 14724552.15 1239909.06 290894.86 16876948.25 36580869.83 1444.23 2740085.32 925284.58 2991468.85 39022449.39
The above table shows that Kishan International exported quite a lot to Australia, Belgium, Canada, France, Germany, Holland, U.K. and U.S.A. in the year-2001-2002.
CHAPTER-II COMPANY PROFILE

KISHAN INTERNATIONAL is a proprietorship firm engaged in the manufacturing and trading of Silk and Leather goods. KISHAN INTERNATIONAL was incorporated in the year 2000 with the objective of taking over the proprietorship business of KISHAN INTERNATIONAL, a family proprietorship concern promoted by Sri. D.H.NARAYANSA in 1998. The firm consists of the following Board of Directors, namely D.N.VENKATESH D.H.NARAYANSA The firm's bankers are LAKSHMI VILAS BANK STATE BANK OF INDIA BRANCHES OF KISHAN INTERNATIONAL KISHAN INTERNATIONAL SPINNING UNIT (AT SARANDI AHMEDABAD) KISHAN INTERNATIONAL WEAVING UNIT AT BANGALORE From modest turnover of 10 lakhs, KISHAN INTERNATIONAL
PROPRIETOR MARKETING EXCUTIVE
has grown to an annual turnover of above 4.7 crores in 2004-2005 and have bagged the highest leather gloves exporter and the second highest silk exporter in 2007-2008.The profit for the year 2010-2011 of Kishan International is 6.65 Crores(approx). KISHAN INTERNATIONAL is set up as a 100% EOU (export oriented unit) for the manufacture of natural silk fabrics and allied fabrics. Keeping in view the demand for quality products; KISHAN INTERNATIONAL has gone in for the most modern machinery available anywhere in the world. It has recruited a very professional, technically qualified and experienced team to run the mill. The firm has recognized the need for Systems based Management for maintaining and improving quality. The total project cost of the unit works out to about 35 crores, out of which imported machineries alone account for 25 crores with other indigenous machineries accounting for another 5 crores. KISHAN INTERNATIONAL is headed by the PROMOTER PROPRIETER and MARKETING EXECUTIVE of KISHAN INTERNATIONAL. Sri. D.H. NARAYANSA. The operations are coordinated by WHOLE-TIME MARKETER Sri. D.H.NARAYANSA a technocrat with more than 20 years of experience in the silk field. The futuristic version of the promoters, the dedicated will of the WHOLE-TIME MARKETER and the commitment of the professional management team is expected to contribute no small way, in the Endeavor of KISHAN INTERNATIONAL .
PERSONNEL AND INDUSTRIAL RELATIONS: Relations with the employees suffered a minor set back at Company's Weaving division at BANGALORE, where production was only made on single extended shift during some part of the year. Now the situation is normal. Relationship with the employees at other divisions of the Company continues to remain cordial throughout the year. Range of Products: KISHAN INTERNATIONAL'S ranges of products are: Fabric for men's wear Fabric for ladies wear Bridal wear Home furnishings Leather products CONTROL OF RECEIVED GOODS/ RAW MATERIALS: From the moment raw materials are received, a close check is kept on the quality and wastage. It assures the maximum output of top quality finished goods to its customers. The Company has an everlasting customer list with an experience of getting orders from them, for considerable number of years. WORK CULTURE-KISHAN INTERNATIONAL tries to interpret the fine ancient art of silk weaving; to produce a range of textiles for every season and application, using the
most advanced methods. They produce sample ranges in colors, Jacquards and weaves with quick response for revision in colors and weaves and to customize production to the client's requests. Their unlimited colour palette uses computerized tools and recipes, which ensures range desired and perfecting colour continuity. Over a period of time, the Company has developed a creative department, which is a continuously growing one, with active participation by leading artists and designers from different countries, to insure customer satisfaction. The company has also installed a comprehensive waste management facility to ensure an eco-friendly production center. As required under the laws, all the effluent shall be treated as per requirements and such treated water shall be fully consumed for gardening and horticulture within the company's premises. The company has built-in all the required facilities for this purpose. POLICY OF THE COMPANY: KISHAN INTERNATIONAL is a Quality conscious Company, satisfying the needs of international markets. At KISHAN INTERNATIONAL, Quality Assurance is the watchword and quality will quality will be ensured right from rawmaterial inspection through rigorous in-process inspection, to final inspection of finished products.
To
achieve the
objectives, Systems
36
based
quality
control
methods, continuous training and skill up gradation and application of state-of-the-art technology is followed. The Company's policy is also, not to use any dyes that are forbidden, for example-AZO DYES that are forbidden in EUROPE. OBJECTIVES OF KISHAN INTERNATIONAL: To achieve the policy, KISHAN INTERNATIONAL has set forth the following objectives. They are
To achieve more and more turnover and thereby financial position.
To ensure on-time delivery. To keep customer complaints within 50 complaints per year and strive to reduce them by 5% every quarter. To ensure continuous training and skill up gradation, by training at least 20% of the staff every year. To strive for accident-free working, by reducing man-hours lost due to accidents by 10% every year. To maintain stable progress in their quality. To satisfy the customers with their products.
COMPETITORS: The major competitors of KISHAN INTERNATIONAL are1. Himmat Singh ka Seide Limited (HSL) 2. J.J.Exports 3. Bharath Silk 4. Swan Silk The firm deals with this problem by maintaining good quality, price and services. Trade Fairs attended by the company: Heimtextile Fair in January at Frankfurt, Germany Showtime in January and July at Highpoint, U.S.A. Decosit Fair in September at Belgium New York Fabric show in April, in New York, U.S.A.
ORGANISATION CHART OF KISHAN INTERNATIONAL
Board of Directors
Chairman
Managing Director
Managing Director
Whole Time Director
Services Executives at Factory/Office
Finance Controller & Secretary
Service Executive at Factory/Office
Finance Controller & Secretary
Production Manager
Finance Manager
Human Resource Manager
Marketing Manager
Supervisor/ Foreman
KISHAN INTERNATIONAL is set up as a 100% Export Oriented unit for the manufacture of Natural silk fabrics and allied fabrics. Keeping in view the demand for quality products, KISHAN INTERNATIONAL has gone in for the most modern machinery available anywhere in the world, it has recruited a very professional, technically qualified and experienced team to run the mill. ANALYSIS OF DATA KISHAN INTERNATIONAL has a very good wide open market in the overseas or abroad. They are the manufactures and exporters of: Best Quality silk fabrics. Leather products. Specialists in silk spinning. Home Furnishings. Normally, the company's products are targeted to various people, according to seasonal conditions and utility of the products in various regions of the World.
MEDIUM OF ADVERTISEMENT OF THE FIRM AND ITS PRODUCTS: The firm enjoys the benefit of previous references of the buyers from the rest of the world as a well-established Goodwill and also in addition, they adopt the export marketing channels of participating in exhibitions conducted by the Government of other nations respectively. The firm has attended various exhibitions and trade fairs abroad and received wide appreciation all over.
The latest participation of the firm was at - Decoisit Fair in September at Belgium. OBTAINING OF EXPORT LICENCE: KISHAN INTERNATIONAL started its export business in 1999.lt has obtained the license to carry on export business from the Government of India. The firm has received: SSI CERTIFICATE ISSUED BY DIRECTOR OF INDUSTRIE AND COMMERCE. EXPORT HOUSE CERTIFICATE ISSUED BY JDFT GOLD CARD CERTIFICATE HOLDER
Other licenses from State Government namely- Factory license, Pollution control license, labour license, electrical license, customs license etc. STEPS FOLLOWED BY KISHAN INTERNATIONAL FOR
EXPORTING THEIR PRODUCTS. The firm plays a very vital role in the silk exports. The various steps followed by Kishan International. While exporting their products is closely analyzed in the following paragraphs in details 1) RECEIPT OF AN ENQUIRY: The company's office is situated in No: 14,14/1,14/2 Seshadri road Bangalore - 560009. Here, the exporters directly come into contact and see the samples of the products about their quality, price, design, shape, quantity available. The firms take some samples of cloth and discuss with their customs (imports) about the product and design the product according to the needs of the customer. If the importers feel it satisfactory, then they send a receipt of enquiry about the quantity, quality, design, selling price, time duration needed. For manufacturing of the goods, mode of shipment, packaging and marketing. 2) SENDING OF QUOTATION: Before sending the quotation, a PROTO sample is prepaid according to the needs of the importer is which is mentioned in detail in the receipt of enquiry. This proto sample is sent along with the quotation. It is carefully examined after considering all the factors like time, finance, quality, and quantity, percentage of profits or revenue. And later on, the exporter sends a quotation keeping in mind all the possibilities and fines up the
price. Fixation of price is the important step while an exporter sends a quotation to his importer. The pricing strategy adopted by Kishan International. Includes "Free on board pricing". "Cost and fright pricing" and "Cost in insurance of fright pricing", otherwise, according to the option of the importer, which will be mentioned in the enquiry note. The company sometimes follows one more type of pricing called as- Ex-work price. This price is followed when the goods, are directly exported from the mill to the customer. The full price is borne by the customer in this method of pricing. 3) RECEIVING OF INDENT: As soon as the importer receives the quotation sent by the exporter, regarding the enquiry sent by him, the importer carefully examines the detailed quotation regarding the offer made by the company. If the importer feels satisfied with the quotation, the importer sends an indent. Indent sent by the importer is of 2 types, one is of open indent and other is a closed indent, (which is discussed in the introduction chapter). Kishan International receive an indent that is either closed or open, depending on the choice of the buyers regarding the order made by him. It also consists a letter known as the "LOC" - Letter Of Credit. This letter contains detailed information regarding the time period of credit needed and the mode of payment and installment wise division of the payment.
APPOINTMENT OF FORWARDING AGENT TO ATTEND TO THE SHIPMENT OF GOODS The company appoints a forwarding agent to look after the formalities, which should be followed in shipping the goods. A certain percentage of commission is paid to the forwarding agent for carrying out the various formalities connected with the shipment of goods on behalf of the exporter. 4) EXECUTION OF THE ORDER: The order received by the importer is been ascertained and distributed to various manufacturers. The firm gives the orders to the various jobbers who have worked for years for them and mentions the specifications of the designs, quality, quantity, etc. It is clearly allocated with carefully mentioning the deadline for the execution of the order. 5) PRODUCT IDENTIFICATION AND TRACEABILITY: All materials and products of the company are identified right from the point of receipt of materials and consumables from vendors to delivery to the customer. Proper identification of material is ensured during receiving inspection. Non-conforming products are tagged with special tags or marked in red colour and wherever possible, segregated to special areas till non-conformances are resolved. The product identification during the process is maintained with the help of lot of movements cards, attached to the yarn through the process
6) IN-PROCESS INSPECTION AND TESTING: The in-process inspection and testing procedure are designed to ensure that product quality is in conformance with - customer specified requirements. The inspection and release of the material to the rent stage is the responsibility of the departmental heads. No item of product is permitted to pass to the next stage of production until the required inspection and testing is completed in accordance with the requirements. 7) FINAL INSPECTION AND TESTING: Final inspection and testing is carried out as specified in final inspection and testing procedure, to establish conformance with customer requirements. The customer or customer's representative shall have the right and opportunity to associate in final inspection, if they so desire. The product is not deemed to have complete inspection nor dispatched, until all the activities specified in the inspection procedure have been satisfactorily completed. The mill manager/ works manager has the full authority to release the passed product for dispatch to the customers. 8) INSPECTION AND TEST RECORDS: Inspection and test records are maintained by the company to establish that the product has passed inspection and testing in accordance with acceptance criteria defined in the inspection and testing procedure.
Thus, all inspection and testing records are retained as per procedure. 9) COLLECTING OR ASSEMBLING OF GOODS: The orders executed by the firm are collected at the office, as the jobbers/suppliers make the delivery of the executed orders. The assembly if required further is done which is as per the instruction given by the importer in the indent. 10) HANDLING, STORING, PACKING AND MARKETING OF GOODS: The company ensures that all materials are properly handled, stored, packaged, preserved and marketed to the designated customers as per agreed delivery schedule. All products and goods are handled in such a way that they are not damaged during handling. The company ensures that all raw materials and finished products are properly stored in planned storage area, so as to prevent damage or deterioration of goods or materials. The materials are issued first-in-first-out (FIFO) basis as far as possible. Kishan International packages the product in accordance with the customer requirements. The firm adopts the best exports packing practices.
After packing of goods, marking on the packages is done in order to identify the packages easily in the port of destination.
Marking will be in written, on the goods with the initials of the importer and place of destination. The weight is considered as a very important factor where maximum care is taken to reduce over weight of the packed good. This is done because of the direct proposition to the cost of the freight charge. 11. DISPATCHING OF GOODS: After packaging and marketing of goods as per the instruction of the importer, the next step is to dispatch the goods through a mean of transport, which the importer feels comfortable, economical and safe for the goods. Kishan International exports all its goods only by air but sometimes even chooses sea transport, as per the requirement of the customer. The company sends the goods to the place of dispatching. Here, the forwarding agent takes care of:
Securing shipping space.
Going through the customs formalities. Loading the bill of mate receipt. Obtaining the bill of loading. Obtaining airway bill. Advice to the exporter. 12) - OBTAINING OF RELEVENT DOCUMENTS: The company goes through the phases of documentation, which are carried on very carefully by the required persons itself, undertaking the duties to be followed in the obtainment of different certificates like: A. Certificate of origin. B. Consumer invoice. (Explained in the 1st chapter) 13) PREPARATION OF EXPORT INVOICE: The export invoice is prepared by the company itself, which has to be sent to the importer. It includes all details regarding the goods shipped, packing and marking and price of the goods, name of the exchange bank through which the shipping documents is sent. 14) SECURING THE PAYMENTS: The methods that the company follows for securing the payments are: LETTER OF CREDIT (LOC): The documentary letter of credit covers the major part of the export business of the world. A letter of credit is a document containing the guarantee of a bank to honor drafts on it by I exporters, under certain conditions and up to certain amounts. Instead of being drawn on the importer, the draft is drawn on the importers bank. A
LOC eliminates the risk of an exporter, for he will be definitely paid for his shipment of goods, provided of course, that he fulfills his obligations. He, therefore, ordinarily requests the importer to arrange for a "LOC". Kishan International also secures payment through TT
(Telegraphic Transfer) and D/A (Documents Against Acceptance Bill). 15) SENDING ADVICE TO THE IMPORTER: After handing over the bill of exchange and the necessary shipping documents to the Exchange Bank, the company writes a letter to the importer, informing him about the dispatch of the goods, bill of exchange and other shipping documents. The company also sends a copy of the invoice along with the letter so that the importer may know the amount payable by him to the exchange bank. After receiving the letter from the exporter, the importer will go to the concerned exchange bank and obtain the shipping document. Thereafter, he will arrange for taking the delivery of the goods. MEDIUM OF COMMUNICATION: The company uses the modern way of communication through the help of the Internet i.e. e-mail and fax, which is both the ways convenient and economical. SUBSIDIES FROM THE GOVERNMENT: As KISHAN INTERNATIONAL is an ISO certified company (ISO-9001), it is covered under the export regulation, which gets some exemption under the export quota.
The assistance, which the company gets from the Government is Import duty concession on Capital goods, raw-materials, spares and Consumer goods. Excise duty exemption. Central sales tax refund. ISO Certification The company has been awarded the ISO 9001 certification from its very first year of operation. This was possible due to continuous Internal Quality Audits and surveillance Audit by BVQI and the ISO certification Agency.
CHAPTER-III RESEARCH DESIGN

TITLE OF THE STUDY: A project report on the "EXPORT PROCEDURE followed by KISHAN INTERNATIONAL for Silk". STATEMENT OF PROBLEM: The study and analysis of "EXPORT PROCEDURE" followed by the firm with reference to silk products in view of wide scope in the field of foreign trade. The study endeavors to collect information about the procedure and formalities followed in a garment industry while exporting of the products towards total detail discussion of pricing factors, dispatch, order, execution etc. In addition to this, study the aims and duties of people involved in execution of an export order. AIMS AND OBJECTIVES OF THE STUDY: The primary aim of the study was to find out the procedures in export, their formalities in the process of dispatching the order. The study was taken on the method followed to give right execution of an export
order. THE OBJECTIVE OF THE STUDY CAN BE SUMMARISED AS FOLLOWS: A bird's eye view about export procedure followed in KISHAN INTERNATIONAL. 2. To analyze the difficulties faced by the exporter. 3. To know the creation of interest in the mind of importer, from receiving the receipt of enquiry to securing of payments. 4. To know the scope of export in the field of silk garments. SCOPE OF THE STUDY As a part of fulfillment of the requirements of the MBA degree of the PONDICHERRY UNIVERSITY, this project was undertaken for a specific period. It is an exercise that is well planned into curriculum giving the researcher a valuable opportunity to experiment and exhibit the recently required Management and Administration skills. This study was conducted in the Export Procedure of KISHAN INTERNATIONAL. The study covers the detail information related towards export procedure for an industrial unit, which is the move to for exporting of goods abroad.
1.
METHODOLOGY:Having decided to adopt a direct interview schedule to collect the data for this study, the next step was to decide on the type of collecting data. An Interview schedule was prepared to conduct direct interview with company personnel. The Marketing Manager and the Director of the company were interviewed and answers sought. Information was also collected from company's various documents, annual reports, journals, etc. SAMPLING DESIGN: The data has been collected through two sources namelyPRIMARY DATA: Direct interview with the company. SECONDARY DATA: Books about Export Procedure in Ministry of Chamber of Commerce and industry library. Books about exports in silk at the Central Silk Board. All the books and journals of the company. Internet sites: www.google.com www.silkroad.com
www.silk.org.uk/history www.indiansilkboard.com Other References: College library Magazine and newspapers SAMPLE SIZE: 100 EMPLOYEES SAMPLING METHOD: Non-probability sample method. TOOLS USED FOR DATA COLLECTION: The major tool for data collection was through Direct Interview. The collection data was done by personally interviewing with the company officials with the help of an Interview Schedule. MEASURES TAKEN TO AVOID ERRORS IN DATA
COLLECTION: Special care was taken to avoid errors in the format at content of the Interview Schedule. Various measures were taken to see that there was no error in data collection stage. 1. Extent of Knowledge: The errors that might arise in the answer, due to the question being the extent of knowledge of the officer.
2.
Unfamiliar/ambiguous words:
54
Were totally avoided by using ground to level language. This was needed so that all exporters could understand better. 3. Time costs: This is the error, which might have crept into the study as the Officer might be tired and hence, to save time he starts giving wrong or ambiguous answers. This error was sought to be mitigated be visiting the officer in their free time only. LIMITATIONS OF THE STUDY There was no quick access to information. Time constraint was another major limitation.
It does not include the comparative study as the study is conducted only for a single firm, KISHAN INTERNATIONAL.
CHAPTER-IV ANALYSIS AND INTERPRETATION

Table 1 showing Turnover of Kishan International In the last 5 year (Value- in Crores) Year 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 Analysis: The table shows the Turnover of Kishan International for that last 5 years. The Company had a turnover of 150.92 Crores in the year 20102011 as against 148.62 Crores in 2009-2010. The turnover for the year2008-2009 was 129.89 Crores, 2007-2008 113.76 Crores and 2006-2007 100.34 Crores. Turnover 150.92 148.62 129.89 113.76 100.34
Graph1 Showing Turnover of Kishan International In the last 5 years

160 140 120 100 80 60 40 20 0 2010-2011 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 150.92 148.62 129.89 113.76 100.34
Inference: The above data gives information about the turnover of Kishan International. The Company had a good turnover in the year 2010-2011 as against 2009-2010, and 2008-2009, due to the Liberalization policy made by the Government towards exporters and reduction in ExportImport tax.
Table 2 Showing Net Profit of Kishan International In the Last 5 years (Value-in Crores) Years 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 Analysis: The above table shows the Net Profit of Kishan International for the last 5 years. The Net Profit for the year- 2010-2011 was 2.65 Crores, 2009-2010 6.87 Crores, 2008-2009 0.41 Crores, 2007-2008 0.18 Crores, 2006-2007, being 0.10 Crores. respectively Net Profit 2.65 6.87 0.41 0.18 0.10
Graph 2 Showing Net Profit of Kishan International In the Last 5 years
Net Profit
7 6 5 4 3 2 1 0
6.87
2.65 0.81 0.1
0.41
2011-2010 2009-2010 2008-2009 2007-2008 2006-2007 Year
Inference: From the Analysis it can be inferred that the company had maximum Net Profit in the year 2009-2010. Moreover, the Weaving Unit has undertaken expansion programmed under a scheme calledTechnology upgradation fund Scheme and thus the investments have been more.
Table 3 Showing Turnover of Kishan International in the last 5 years (Value-in Crores) Years 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 Analysis: The table shows the Turnover of Kishan International, for the last 5 years. The Company had a turnover of 22.08 Crores in 2010-2011 as against 20.71 Crores in 2009-2010. Turnover in the year 2008-2009 was- 26.26 Crores, 2007-2008 was18.16 Crores and 2006-2007 was 12.98 crores respectively. Turnover 22.08 20.71 26.26 18.16 12.98
Graph 3 Showing Turnover of Kishan International in the last 5 years
30 25 Turnover 20 15 10 5 0 22.08 20.71
26.26 18.16 12.98
20022003
Year 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002
InferenceFrom the analysis, it can be concluded that the company had the highest turnover in the year 2003-2004. Though the turnover was less in the year 2004-2005 but, it has shown signs of recovery in the following year2005-2006, being 22.08 Crores.
20012002
20052006
20042005
20032004
Table 4 Showing Net Profit of Kishan International in the last 5 years (Value- in Crores) Years 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 Analysis: The above table shows the Net Profit of Kishan International Textiles for the last 5 years. The Net Profit for the year 2005-2006 was 2.21 Crores as against 2.40 crores in the year 2004-2005. Year 2003-2004 had Net Profit of 4.66 crores, followed by 1.51 Crores in 2002-2003 and 1.09 Crores in the year 2001-2002. Net Profit 2.21 2.40 4.66 1.51 1.09
Graph 4 Showing Net Profit of Kishan International in the last 5 years
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
4.66
Net Profit
2.21
2.4 1.51 1.09
20042005
Year
Inference: From the table, it can be inferred that the Net Profit of the company fell down in the year 2004-2005 as against 2003-2004, due to the reversionary conditions prevalent in the Spinning Industry and also due to pressure on margins.
20012002
20052006
20032004
20022003
Table 5 Showing Market share of Kishan International in comparison with other silk exporting companies. Company Name Himmat singha Swan silks Zenith Silks J.J silks Kishan International Total Market Share 26 18 12 22 22 100 Market Share (%) 26 18 12 22 22 100
Analysis: The above table shows the name of the companies exporting silk fabrics to different countries Himmat Singha has a market share of 26%, Swan silks has a market share of 18%, Zenith silks has a market share of 12%, J.J silk has a market share of 22%, Rashmi fabrics has a market share of 22%.
Graph 5 Market share of Kishan International in comparison with other silk exporting companies.
30 26 25
Market Share (%)
22 18
22
20
15
12
10
0 Himmat singha Swan silks Zenith Silks Company Name Himmat singha Swan silks Zenith Silks J.J silks Kishan International J.J silks Kishan International
Inference: From the table, it can be inferred that the Kishan International has
occupied second place by taking 22% of market share in exporting its fabrics and it is giving equal competition to others like Himmat Singha who has occupied 26% of the market share.
Table 6 Showing Places where products of Kishan International are exported.
Country Germany France UK USA Total Analysis:
Total Sales 30 20 30 20 100
Total Sales (%) 30 20 30 20 100
The above table shows the name of the country where the product of Kishan Internationals are been exported and whats the market share its occupied in that country. In Germany it has occupied 30%, in France it has occupied 20%, in UK it has occupied 30%, in USA it has occupied 20%.
Graph 6 Showing Places where products of Kishan International are exported.
3 0 3 0
3 0
2 5 2 0 Total Sales (%) 2 0 2 0
1 5
1 0
0 G rm y e an F n ra ce C un o try G rm y e an F ce ran U K UA S U K UA S
Inference: From the table, it can be inferred that the Kishan International countries to which it exports its product. has occupied major share in Germany and UK. It also shows the other
Table 7 Showing Goods exported by Kishan International.
Products Bed spreads Curtains Leather goods Furnishing pillows Total
Product Sales 7 35 30 28 100
Product Sales (%) 7 35 30 28 100
Analysis: The above table shows the goods, which are manufactured and exported by Kishan International such as Bed spread, Curtains, leather goods, and furnishing pillows. This is the major product, which are exported by Kishan International. As there is huge demand for the following products they have occupied a major role in exporting these products.
Graph 7
Showing Goods exported by Kishan International.
3 5 3 5 3 0 Product Sales (%) 3 0 2 8
2 5
2 0
1 5
1 0
0 Bds r a s e pe d Cr a s ut i n P d cs r ut o Bds r a s e pe d Cr a s ut i n L a e go s e t r od h Fr i h gpl w un i s n ilo s L ah r g o s et e o d Fr i h g un i sn pl w io s l
Inference: From the table, it can be inferred that the Kishan International manufactures and exports the following goods it manufactures 7% of Bed spreads, 35% of curtains, 30% of leather goods, and 28% of Furnishing pillows.
Table 8 Showing Age group targeted. Age 25-30 30-35 35-40 40-45 Total Analysis: The above table shows the age group, which the Kishan International target, the most while exporting its products. The major age group, which it occupies, is between 30-35 here it occupies 38% of mindset of the people in that age group. No. of Respondents 20 38 22 20 100 Percentage (%) 20 38 22 20 100
Graph 8 Showing Age group targeted
20%
20%
22% 38%
25-30
30-35
35-40
40-45
Inference: From the table, it can be inferred that what is the age group that the Kishan International is more concentrated while manufacturing and marketing its product. The major age group is between 30-35 and it has occupied 38% in this age group.
Table 9 Showing Percentage of promotion techniques.
Promotion Techniques Exhibitions Trade fairs Publicity Total
No. of Respondents 60 30 10 100
Percentage (%) 60 30 10 100
Analysis: The above table shows the Promotion techniques which are used by Kishan International for exporting its silk products. It conducts various promotional techniques like Exhibitions, Trade fairs, and Publicity.
Graph 9 Showing Percentage of promotion techniques.
10%
30% 60%
Exhibitions
Trade fairs
Publicity
Inference: From the table, it can be inferred that which are the promotional techniques used by Kishan International. It uses various promotional techniques like Exhibitions 60%, Trade fair 30%, Publicity 10%.
Table 10 Showing percentage of different pricing techniques used by Kishan International.
Pricing Technique FOB CIF C&F Total
No. of Respondents 35 55 10 100
Percentage (%) 35 55 10 100
Analysis: The above table shows the pricing techniques used by Kishan International as preferred by the customers who import the goods. The various kinds of techniques used by the customers who would like to import the goods are FOB, CIF, C&F. Note: FOB- Free on Board CIF- Cost insurance freight C&F- Cost and freight
Graph 10 Showing percentage of different pricing techniques used by Kishan

International.
60
55
50
40 Percentage
35
30
20 10 10
0 FOB CIF P ricing Technique FOB CIF C &F C&F
Inference: From the above table, it can be inferred that the pricing techniques used by Kishan International as preferred by the customers who import the goods. The various kinds of techniques used by the customers who would like to import the goods are FOB, CIF, C&F.
Table 11 Showing various modes of transport for dispatching goods Transportation Mode Air Sea Total No. of Respondents 58 42 100 Percentage (%) 58 42 100
Analysis: The above table shows the various modes of transportation for exporting its goods to other country. Kishan International use only air and sea ways as a mode of transport.
Graph 11 Showing various modes of transport for dispatching goods
42%
58%
air
sea
Inference: The above table it can be inferred that the mode of transportation which are used by Kishan International to export it goods it uses air way to the extent of 58% as its mode to transport, and sea ways to the extent of 42% as a mode of transport.
Table 12 Showing security of payments of Kishan International. Particulars Credit period Exchange Discount Total No. of Respondents 44 36 20 100 Percentage (%) 44 36 20 100
Analysis: The above table shows various mode of payment through which Kishan International accepts is Credit payment, Exchange, and Discounts.
Graph 12 Showing security of payments of Kishan International.
20% 44%
36%
Credit period
Exchange
Discount
Inference: The above table it can be inferred the mode of payment which Kishan International accepts is credit payment to the extent of 44%, Exchange to the extent of 36%, and discount to the extent of 20%.
CHAPTER-V SUMMARY OF FINDINGS & CONCLUSION

SUMMARY OF FINDINGS 1. The Company had a good turnover in the year 2009-2010 as against 2009-2010, and 2008-2009, due to the Liberalization policy made by the Government towards exporters and reduction in Export- Import tax. 2. Kishan International has occupied major share in Germany and UK. It also shows the other countries to which it exports its product. 3. Company had the highest turnover in the year 2008-2009. Though the turnover was less in the year 2009-2010 but, it has shown signs of recovery in the following year- 2010-2011, being 22.08 Crores. 4. Net Profit of the company fell down in the year 2009-2010 as against 2008-2009, due to the reversionary conditions prevalent in the Spinning Industry and also due to pressure on margins. 5. Mode of payment which Kishan International accepts is credit payment to the extent of 44%, Exchange to the extent of 36%, and discount to the extent of 20%.
CONCLUSION From the following analysis, which gives a clear picture about the Export Procedure followed in Kishan International, we can come to certain conclusions, which are as followsI. Among the various Countries, their major export is to the European Countries, Saudi Arabia, Taiwan, Australia, New Zealand, Canada and U.S.A. The firm has a very good medium of advertisement through 1participation in the trade fairs and exhibitions, conducted by the government of other nations. II. Full information about the Company, its products exported, can be availed from the Company. III. IV. The firm has obtained a permanent export license. The firm enters into direct contact with the importer and if the importer feels satisfied, he sends the receipt of an enquiry, for which the Company replies with the quotation, according to the specification needed by the importer. V. The price fixed by the Company is normally Free on board Price (F.O.B.), Cost and Freight Price (C & f), Cost, Insurance and Freight Price (C.I.F.) and Ex- Work Price. The firm receives an indent, which is either open or closed
VI.
depending upon the choice of the buyer VII. The Company appoints a forwarding Agent to look after all the formalities for the shipment of goods. VIII. Proper identification of material is ensured by the firm, right from the point of receipt of materials and consumables from the vendors till the delivery to the customers. IX. The firm also gives an option or opportunity to the customer or customer's representative, to associate in the final inspection of the products, if they so desire. X. The orders are executed by the undertaking of jobbers, which looks after the finished products, as per the order and then are collected through the distribution and assembly department. XI. The firm packages the product in accordance with the customer requirements and they also adopt the best export packing practices. XII. The firm exports all its goods normally by Air and sometimes even chooses sea transport, as per the requirement of the customer. XIII. The firm itself prepares the export invoice, which contains all the XV. necessary details about the goods exported. The various methods of securing payment by the firm is
through-Letters of Credit, Telegraphic Transfer (TT) and D/A

(i.e. Documents Against Acceptance Bill). XIV. The firm follows modern way of communication with the help of e-mail and FAX, which is both the ways convenient and economical. XV. XVII. The firm also receives various forms of assistance from the Government.
RECOMMENDATIONS & SUGGESTIONS From the above conclusions, we can come to know that certain changes have to be brought into the actual procedures followed in Kishan International, Keeping in mind the analysis made, some of the suggestions which can bring in a change, would help the firm to prosper in the near future. They are as follows: I. Though the Company has a large variety of silk products exported and has always given its best quality for its customers, it is very essential for the exporter to have an idea of the demand of the people, changing tastes and preferences of the customers and he must be competitive towards various new products. II. Some customers come into direct contact with the Company and check out the recent arrivals and send a receipt of enquiry, if they feel satisfied. So, it is better that the company would identify and find the reasons for any kind of dissatisfaction caused and to keep in contact.
They even need to proceed and send a reasonable quotation which is equally good to compete with the competitors. III. No after sales service is given for Kishan International Textile's
range of products. This needs to be improved by providing after sales services to the customers. IV. The firm should also try to sell its products in the Home Country as it would increase their profit margin. V. The Company should put all round efforts to enhance its presence in the International Market, by developing new designs as well as exploring new markets. VI. The Company can itself manage their own department to look after the shipment of goods as this will save the extra cost, which is incurred on the commission paid to the Forwarding Agent. Moreover, high risk has to be borne, if the Forwarding Agent causes any damage during the shipment of goods.
CHAPTER-6 APPENDICES AND ANNEXURES

QUESTIONNAIRE Dear Sir/ Madam, In Partial fulfillment of the requirement for B.B.M. degree, I have undertaken a project on- "Export Procedure followed by Kishan International for Silk". I need your co- operation in completing my project. I would be grateful if you could spare a minute and answer the questions below. The information given by you will be kept confidential. NAME: SEX: AGE: 1. Where are your products mostly exported? Germany France U.K. U.S.A. 2. What are the ( ) ( ) ( ) ( ) various goods exported by your M( ) F( )
Company?
Bedspreads Curtains
( ) ( )
Leather Goods ( )
3. What is the age group you target? 25-30 30-35 35-40 40-45 ( ) ( ) ( ) ( )
4. Does your company advertise? YES ( ) NO ( )
5.
Explain the steps in the Export Procedure followed for Silk Fabrics?
6. How do you send the quotation for the inquiry? E.MAIL ( ) FAX ( )
WEB SITE ( ) 7. Do you have a permanent Export License?

YES ( ) NO ( ) 8. Which are the various means of transport to dispatch your goods? Through Air Through Sea ( ) ( )
9. Does your Company appoint a forwarding agent? YES ( ) NO ( ) 10. How do you secure the payment?
Credit period
( ) ( ) ( )
Exchange Discounts
11. Who are your competitors? Swan Silks Zenith Silks J.J. Exports 12. Do you have an ISO certificate? YES ( ) NO ( ) 13. What are your future prospects of your company?
Bibliography 1. Reference Books: Name of the Author Jain Puri S.C. Title & Edition of Nabhi Publications Nabhi Publications Himalaya Publishing Rathor House B. S. Raman Business studies 2. Company's Report: Annual Reports of the Company-2010-2011 3. Magazines: Indian Silk-2009-2010 4. Newspapers:
Publisher
Place of Publication
Year of Publication
the book and Exporters Manual Jain Methodolog
and Vahan y of Export B.S. Rathod Export and J.S Marketing
United Publications
Economic Times Times of India 5. Library: The Central silk Board - C.S.B. Complex, BTM Layout, Madivala, Bangalore
6. Internet: www.google.com www.silkroad.com www.silk.org.uk/history www.geocities.com www.indiansilkboard.com

Final

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Final

Загружено:

Авторское право:

Доступные форматы

Kishan International

Screen-printing: Sometimes knows as "a1 la lyonnais", because the

Eri The silk produced by Philosamia racing is called eh silk. It is

Australia, Canada, Europe, and U.S.A.

CHAPTER-II COMPANY PROFILE

PROPRIETOR MARKETING EXCUTIVE

To achieve more and more turnover and thereby financial position.

ORGANISATION CHART OF KISHAN INTERNATIONAL

Whole Time Director

Services Executives at Factory/Office

Finance Controller & Secretary

Service Executive at Factory/Office

Finance Controller & Secretary

Human Resource Manager

Securing shipping space.

CHAPTER-III RESEARCH DESIGN

CHAPTER-IV ANALYSIS AND INTERPRETATION

Graph1 Showing Turnover of Kishan International In the last 5 years

Graph 2 Showing Net Profit of Kishan International In the Last 5 years

2.65 0.81 0.1

2011-2010 2009-2010 2008-2009 2007-2008 2006-2007 Year

Graph 3 Showing Turnover of Kishan International in the last 5 years

30 25 Turnover 20 15 10 5 0 22.08 20.71

26.26 18.16 12.98

Year 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002

Graph 4 Showing Net Profit of Kishan International in the last 5 years

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

2.4 1.51 1.09

Market Share (%)

Table 6 Showing Places where products of Kishan International are exported.

Country Germany France UK USA Total Analysis:

Total Sales 30 20 30 20 100

Total Sales (%) 30 20 30 20 100

Graph 6 Showing Places where products of Kishan International are exported.

2 5 2 0 Total Sales (%) 2 0 2 0

Table 7 Showing Goods exported by Kishan International.

Products Bed spreads Curtains Leather goods Furnishing pillows Total

Product Sales 7 35 30 28 100

Product Sales (%) 7 35 30 28 100

Showing Goods exported by Kishan International.

3 5 3 5 3 0 Product Sales (%) 3 0 2 8

0 Bds r a s e pe d Cr a s ut i n P d cs r ut o Bds r a s e pe d Cr a s ut i n L a e go s e t r od h Fr i h gpl w un i s n ilo s L ah r g o s et e o d Fr i h g un i sn pl w io s l

Graph 8 Showing Age group targeted

Table 9 Showing Percentage of promotion techniques.

Promotion Techniques Exhibitions Trade fairs Publicity Total

No. of Respondents 60 30 10 100

Percentage (%) 60 30 10 100

Graph 9 Showing Percentage of promotion techniques.

Table 10 Showing percentage of different pricing techniques used by Kishan International.

Pricing Technique FOB CIF C&F Total

No. of Respondents 35 55 10 100

Percentage (%) 35 55 10 100

Graph 10 Showing percentage of different pricing techniques used by Kishan

0 FOB CIF P ricing Technique FOB CIF C &F C&F

Graph 11 Showing various modes of transport for dispatching goods

Graph 12 Showing security of payments of Kishan International.

CHAPTER-V SUMMARY OF FINDINGS & CONCLUSION

through-Letters of Credit, Telegraphic Transfer (TT) and D/A

CHAPTER-6 APPENDICES AND ANNEXURES

4. Does your company advertise? YES ( ) NO ( )

WEB SITE ( ) 7. Do you have a permanent Export License?

the book and Exporters Manual Jain Methodolog

and Vahan y of Export B.S. Rathod Export and J.S Marketing