ROYAL EXPORT

JAIPUR NATIONAL UNIVERSITY (A university with a difference) A Project report on industrial visit to ROYAL EXPORT
Submitted to submitted by Prof. Rajesh Mehrotra Abhinav khandal Director PGDM-II Sem . School of Business & Management

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PREFACE
Practical training forms an integral component of any professional course .The theoretical studies provide pool of knowledge to a manager whereas the practical applications make him agile and component . If theoretical knowledge teaches him the principles and policies the practical exposure tells him how to use these principles . As a part of course curriculum for award of PGDM the students have to undergo practical training for mimimun 4 working days in II sem . This project has been a memorable experience and a great opportunity for me to associate with one of the top garment export industry in (Royal export) Rajasthan. We are very greatful to the people by whose assistance and co-operation we got our project successfully completed. In this project we focused on the export procedure of the industry . The analysis has been done with the view of readymade garments in the international market .

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ACKNOWLEDGEMENT
The ensuring pages of work are the cumulative consequences of intensive guidance , gracious work and magnanimous support . Hence before I embark upon the presentation of this project report , I wish to acknowledge and express my personal gratitude to all those people without whom this project could not have been a reality . I m highly obliged to Prof. Rajesh Mehrotra Director School of Business and Management for giving us this opportunity to work in an organization of high repute. I express my profound sense of gratitude and indebtedness to our training guide Ms. Shilpa Jain for her scholarly , pain staking and incessant efforts , inspiring supervision and invaluable guidance during the course of this project and who , in spite of her multifarious responsibilities helped me to accomplish this project successfully . For this kind of consideration , I am beholden to her in a special measure and no works can fully convey my feelings , respect and regards for her . I had a privilege of doing training under highly skilled and professionals for which I am thankful to the team of ROYAL EXPORT for giving me conductive environment for getting training which gave me maximum productivity on my part.

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TABLE OF CONTENT

PAGE NO .

y y y y y y y y y y y

INDUSTRY PROFILE ISSUE CONCERNING TEXTILE INDUSTRY COMPANNY PROFILE INTERNATIONAL MARKETING EXPORT PROCEDURE 4 P S PF INTERNATIONAL MARKETING PRODUCT PRICE PLACE PROMOTION SWOT ANALYSIS OF ROTAL EXPORT

1 2 3 5 7-10 11 11-13 14 15 16 17-18

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INDUSTRY PROFILE
Indian textile industry is one of the leading textile industries in the world . Though was predominantly unorganized industry even a few years back , but the scenario started changing after the economic liberalization of Indian economy in 1991 . The opening up of economy gave the much needed thrust to the Indian textile industry , which has now successfully become one of the largest in the world . Indian textile industry depends upon the textile manufacturing and export . It also plays a major role in the economy of the country .India earns about 27% of its total foreign exchange through textile exports. Further , the textile industry of India also contributes nearly 14% of the total industrial production of the country .It also contributes around 3% to the GDP of the country. India textile industry is also the largest in the country in terms of employment generation . It not only generates jobs in its own industry , but also opens up scopes for the other ancillary sectors . India textile industry currently generates employment to more than 35 million people . It is also estimated that , the industry will generate 12 million new jobs by the year 2012 . India textile industry is one the leading in the world . The textile export of the company was around US$ 60 billion by 2012 from the current US$ 34.6 billion .

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Issues concerning Textile Industry

y Increased global competition in the post 2005 trade regime under WTO y Imports of cheap textiles from other Asian neighbours y Use of outdated manufacturing technology y Poor supply chain management y Huge unorganized and decentralized sector y High production cost with respect to other Asian competitors.

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COMPANY PROFILE

INFRASTRUCTURE

Graduating from a humble beginning a little above a decade ago , ROYAL EXPORT established in the year 1999 ; is now a government recognized star export house , one of the leading exporters from jaipur, India .Its management is a well knit family thriving to make the process and quality excellent by implementing world class production in quality measurement system . It has a monthly production about 2,00,000 pieces . It has annual growth rate of 44% approx. Its annual revenue is approximately 4.5% t0 5.5%. They give employment to approx 500-1000 employees . ROYAL EXPORT strives to sustain its reputation as a respected corporate citizen .

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CERTIFICATION

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WHAT INTERNATIONAL MARKETING IS ?

International marketing is the process of planning and conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations . International marketing has forms ranging from Export- Import trade to licensing , joint ventures , turnkey operations and management contracts.

Objectives of international marketing are :

y y y y y To increase market share Profit maximization Domestic constraints Competition To enjoy monopoly Cost advantage

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Objectives of study

To study and analyze the Export policy & documentation of the organisation To study 4P of marketing

To study the welfare activities of the company.

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EXPORT PROCEDURE ROYAL EXPORT follow this procedure for exporting their products .
y

Registration :

Registration with Reserve Bank Of India: No

longer required. Prior to 1.1.1997 it was compulsory for every exporter to obtain an exporters' code number from the Reserve Bank of India before engaging in export. This has since been dispensed with and registration with the licensing authorities is sufficient before commencing export or import. Authorities (obtaining IEC Code Number) The Customs Authorities will not allow you to import or export goods into or from India unless you hold a valid IEC number. For obtaining IEC number you should apply to Regional Licensing Authority (list given in Appendix 2) in duplicate in the prescribed form given in Appendix 1. Before applying for IEC number it is necessary to open a bank account in the name of your company / firm with any commercial bank authorised to deal in foreign exchange. The duly signed application form should be supported by the following documents: y Bank Receipt (in duplicates)/Demand Draft for payment of the fee of Rs. 1,000/-. y Certificate from the Banker of the applicant firm as per Annexure 1 to the form given in Appendix 1 of this Book. y Two copies of Passport size photographs of the applicant duly attested by the banker to the applicants.

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y A copy of Permanent Account Number issued by Income Tax Authorities. If PAN has not been allotted, a copy of application of PAN submitted to Income Tax Authorities.

Register with export promotion council :

In order to

enable you to obtain benefits/concession under the export-import policy, you are required to register yourself with an appropriate export promotion agency by obtaining registration-cummembership certificate. y

Dispatching samples :

As the overseas buyers generally

insist for the samples before placing confirmed orders, it is essential that the samples are attractive, informative and have retention and reminder value. Besides, the exporter should know the Government policy and procedures for export of samples from India. He should also be aware about the cheapest modes of sending samples. y

Appointing agents : Selling through an overseas agent is an

effective strategy. These agents serve as a source of market intelligence. Regularly sending the latest trends on the current fashion, taste and price in the market. Being a man on the spot, the agent is in a position to render his advice to exporter or new methods and strategy for pushing up sales of your products

Specimen copy of an agreement : An agreement made this

the ....... day ....... of between .......(name and address) hereinafter called the exporters of the first part and ........ (name and address) hereinafter called the importers of the second part, wherein the exporters grant to the importers the importation and selling right in the territory of ..........(fill name of country) for .........(names and brief description of product) subject.
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Arranging finance:

Financial assistance to the exporters are

generally provided by Commercial Banks, before shipment as well as after shipment of the said goods. The assistance provided before shipment of goods is known as per-shipment finance and that provided after the shipment of goods is known as post-shipment finance

Rates of interest : The rate of interest depends on the nature of

the Bills, i.e., whether it is a demand bill . Like pre-shipment, postshipment finance is also available at concessional rate of interest. Present Rates of interest are as under: Demand Bills for transit period Not exceeding ( as specified by FEDAI) 10% p.a. Usance Bills (for total period comprising usance period of ex-port bills, transit period as specified by FEDAI and grace period, wherever applicable: a. Upto 90 days 10% p.a. b. Beyond 90 days and upto six 12% p.a.months from the date of shipment. c. Beyond six months from the 20% date of Shipment (Minimum)
y

Manufacturing goods for export : Once you are ready with

the infrastructure for exporting goods and have obtained necessary finance, you should proceed to procure the goods for export. Procuring the goods should be done with extreme care and caution as to the quality and cost. However, procuring the raw materials etc. and manufacturing the goods for export will need extra efforts on your part. If you are an established exporter, you can have the facility of procuring raw materials under the Duty Exemption Scheme.
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Labeling , packing & marking goods : An

important

stage after manufacturing of goods or their procurement is their preparation for shipment. This involves labeling, packaging, packing and marking of export consignments. Labeling requirements differ from country to country and the same should be ascertained well in advance from the buyer. The label should indicate quality, quantity, method of use etc. Special international care labels have been specified for the textile items by GINITEX, and the same should be scrupulously adhered to. Packaging fulfills a vital role in helping to get your export products to the market in top condition,

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4 P S OF INTERNATIONAL MARKETING

PRODUCT :
It is a tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units.

Royal export , exports following products :

Ladies Long Sleeve Blouse This nice blouse is characterized by schiffli lace on the cuff , and around the round neckline .

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Ladies Cotton Blouse This stunning blouse features hand embroidered floral patterns for a gorgeous look .

Ladies Cotton Dress This ledies dress features three various colours , creating a sense of freshness .

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Mix and Match top for ladies This is a trendy mix and match top for ladies with an Eastern style . There are yellow and brown floral prints in different sizes on the two sides .

This V-neck T-shirt features long flared chiffon sleeves for an elegant appearance . The floral patterns are decorated with sequins for a flattering look . The multicolour dye offers a unique finishing .
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PRICE
Right pricing is one of the important determinants of business success. Pricing is the process of determining what a company will receive in exchange for its products.

0bjectives of pricing
 Market Penetration  Market Share  Market Skimming

Methods of Pricing : Company has many methods to set their price for the products , which are following :
y y y y y

Cost plus pricing Competiton based pricing Marginal cost pricing Premium pricing Penetration pricing
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The company Royal Export follow the COST BASED PRICING Method .
cost-plus pricing is the simplest pricing method. The firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price.

Royal Export has some advantages of this pricing method : y It is easy to calculate . y It requires minimum information . y This pricing is easy to administer .

PLACE
Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

These are the countries where ROYAL EXPORT , export their products : y y y y Central & south America Eastern Europe Japan North America

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PROMOTION
It represents all of the communications that a marketer may use in the marketplace.

Advantages of promotion are : (i) (ii) (iii)

Price discrimination Effect on consumer behavior Effect on trade behavior

PROMOTION TOOLS : Promotion has four distinct tools:

advertisement , personal selling , sales promotion and public relations .

ROYAL EXPORT follows ADVERTISEMENT for promoting their product . ADVERTISING is a powerful tool for promoting the products of Royal export . According to the company they promote their product through television , news paper , magazines . ROYAL EXPORT has some advantages of advertising for their products : y It is good for creating awareness . y It is a effective tool to give the information about their product . y According to the company it is helpful to create the trust among customer .

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SWOT Analysis Of Royal Export

stands for Strengths , Weakness , Opportunities and Threats . STRENGTHS : y y y y y y y It has good reputation among workforce . Royal Export has flexible payment system . Organization has young management team. They produce quality products . The organization has very low import content . Employers of the organization have entrepreneur skills . Management team of the organization remains on the floor. y Management team is multitasking and deals on one to one basis.

SWOT

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WEAKNESS : y Labour turnover is high. y The organization has Fairly seasonal business . y The organization has outdated manufacturing technology .

OPPORTUNITIES : y lot of markets are available to enter like kids wear , men s wear , formal wear and domestic sector . y It will soon be expanding in turkey and middle east .

THREATS : y Scope of competiton are in the market .

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CASE STUDY AT ROYAL EXPORT

We visited Export procedure of the Royal Export . There was a big problem of Employee turn over . Employee turn over is higher in this organization . There are several reasons of the turn over , some are following:
y y y y

Lack of support Lack of challenges in job They have fairly seasonal business Organization is using outdated manufacturing technology.

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