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Export Import Management - Technetix

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Amity School of Distance Learning Project Synopsis on Indian Textile Industry

Submitted In partial Fulfilment of The Requirement of MBA Project on Import Export Procedurement and Documentation

Submitted By Abhishek Goel 0000000000000000

-* - 16 -*  The Indian textile industry is the second largest in the world--second only to China

Indian textile industry also accounts for 38 percent of the country's total exports and is,

The forecast is that textiles exports will reach USD 35 billion by the year 2000

To sustain this growth,

it is imperatives that the textile industry produces goods of high quality at reasonable prices

This means that the industry must continuously modernize its machinery


the textile machinery industry sector has an integral role to play in the growth of India's textile exports

Industry analysts note that textile prices are increasingly competitive worldwide as more and more developing countries enter the global textile trade

To maintain,

the Indian textile industry must procure modern,

textile machinery so that it can produce high quality textiles and garments for export at competitive prices

It is in this context that the market for used textile machinery is viewed as very promising

Used textile machinery permits India to incorporate new technology at low cost

Approximately 120 companies manufacture the complete range of textile machinery

Gross receipts for the Industry in 1997 were nearly USD 700 million

The industry employs about 150,000 workers directly and an equal number indirectly

The demand for textile machinery is mainly from end user in the cotton textiles,

manmade fibres and wool units¶ textile sectors

World trade in textiles and clothing amounted to US $ 385 billion in 2003,

of which textiles accounted for 43 percent (US $ 169 bn) and the remaining 57 percent (US $ 226 bn) for clothing

Developed countries accounted for little over one-third of world exports in textiles and clothing

The shares of developed countries in textiles and clothing trade were estimated to be 47 percent (US $ 79 bn) and 29 percent,

(US $ 61 bn) respectively

Indian textile industry is constituted of the following segments: Readymade Garments,

Cotton Textiles including Handlooms,

Man-made Textiles,

Silk Textiles,

Woollens Textiles,


The Apparel Export Promotion Council [AEPC] represents over 8000 small,

The country ranks sixth among the top garment exporting countries globally

Nearly 78% of garments are exported from India are cottonbased

The main products are ladies garments,

T-Shirts and trousers

Indian textile trade has undergone massive restructuring following the 1991 liberalization policies

Indian textile exports fell from $200

India was ranked 22nd in the world in terms of textile export volume

?#''91  '6/ was established in the year 1992 with a minimum investment of Rs 10 million currently having a net worth of more than Rs 70 million primarily for Manufacturing and Exporting of knitted Garments which is now purely an export oriented company

It is a partnership firm promoted and owned by Mr


It is located 13kms from the knit city Tirupur and 35kms away from the Coimbatore airport

It is well equipped with modern machines occupying an area of 25,000 sq

This company manufacture and Export knitted garments to top end customers in the International Market

It produces styles for kid¶s,

ladies¶ and men¶s outer wears,

But it is mainly specialized in mercerized knitted fabric garments

Ponn Sanger employs about 120 people including contract labour

The manufacturing unit is equipped with modern high-speed sewing machines,

button hole & button stitch machines,

Vacuum Steam Iron Tables,

Stain removers and Fusing machines and others which serve the purpose of completion of an order

It has a separate in-house stitching unit under the name of Sree Jay ram Exports which is now concentrating on the domestic sale of knitted garments

Ponn Sanger also export & import raw material,

knitted processed fabric from overseas which adds more value to it

X / : Export in simple words means ³selling goods abroad´ or it refers to ³the outflow of goods and services and inflow of foreign exchange

Each country has its own rules and regulations regarding the foreign trade

For the fulfilment of all the rules and regulations of different countries an exporting company has to maintain and fulfil different documentation requirements

The documentation procedure depends on the type of goods,

type of industry and the country to which goods is to be exported

But other than that there are some interesting facts that inclined me towards choosing this topic,

some of which are mentioned below

The global textile industry is expected to reach a value of USD 1

Indian textile industry contributes to about 25% share in the global market in terms of Cotton Yarn

India is the world¶s third largest producer of cotton and second largest producer of cotton yarns and textiles and is poised to play an increasingly important role in the global cotton and textile market as a result of domestic and multilateral policy reform

Indian textile industry contributes about 22% to the world¶s spindleage and about 6% to the world¶s rotor capacity

India has the highest spindleage in the world after china with an installed capacity of 38

6 million

Indian textile industry has the highest loomage including handlooms in the world and contributes about 61% of the global loomage

Indian textile industry is the largest producer of cotton yarn after china but ranks number one in installed spinning and weaving capacity

Also India is one of the largest consumers of cotton across the globe

The total consumption of cotton or manmade fibres and filament yarns is 5515 Million kilograms

Through export friendly government policies and positive efforts by the exporting community,

textile exports increased substantially from USD 7

Indian textile exports have grown at an average of 9

After the removal of quota restriction in 2005 gave a major boost to the Indian textile industry which increased the textile export target to USD 50 Billion by year 2010

These are pretty amazing facts about the Indian Textile Industry which amazed and I selected this topic for my Project



³One of the major pitfalls in an international sale is the quality of the documentation supporting the transaction

A mistake in spelling,

language or number of copies will cause substantial delays in obtaining clearance and require additional expenditures to complete the process

´ Most of the necessary documents required for an export transaction are the invoice,

export declaration and the bill of lading

Other documents that may be required include: payment instruments (letters of credit,

SGS inspection certificates,

certificates of insurance and required import documents

The study will be conducted to know the process involved in an apparel firm and to study about the various departmental functions which coordinates to complete the export cycle

The export procedure of the firm will be observed clearly and other related aspect will be known

The analysis will find if the performance of the company is satisfactory,

or the company is facing problem regarding excess of documents which causes delay in transportation

Therefore this project will help the company to take necessary steps to limit the number of documents so that the company can make distribution at right for the company and it will help the company to have competitive advantage over its competitors


net/rahulogy/textile-industry-in-india-a-swot-analysis http://www

com/business-reports/indian-textile-industry/ http://www


Mastering Import & Export Management by Thomas A

Rennie Alston,

Kelly Raia

?id=eZAJy7kTAmAC&pg=PA129&lpg=PA129&dq =Overcoming+the+obstacles+to+export+documentation+1,+Thomas+A

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