Arvind Mills Ltd.

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A
Project Report
On

Arvind Mills
Ltd.
(Establish-1931)

(Commercial Export
Documentary)
PREPARED BY
Jaydeep Savaliya

Meghal Purohit

Enrolment No: 157460592110

157460592098

S.Y MBA SEMESTER 3

COLLEGE
R.B Institute of Management
Studies
Ahmadabad
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Year: 2016
SUBMIT TO
Gujarat Technological University

DECLARATION

I the undersigned MEGHAL P PUROHIT, JAYDEEP SAVALIYA student of

S.Y.M.B.A. of R.B INSTITUTE OF MANAGEMENT STUDIES. hereby
declare that the project work presented in this report is our own work and has
been carried out under supervision of Pro. PRATIMA SHUKLA.

This report has not been previously submitted to any other university.

Date :
Place : Ahmadabad
Signature
Meghal Purohit
Jaydeep Savaliya

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Preface

When we are standing on the threshold of 21 st century professionalization

is getting on every bodys nerves quickly. Trying to cope up with this pace,
educational institutions rendering professional degree courses are growing out
like mushrooms.

M.B.A. a Two Year full time professional degree course is very popular
among such courses. It is interesting to note that M.B.A. includes practical
training as a part of its course. In todays era such a type of practical training is a
must to bridge the gap between theoretical knowledge and experience. It is link
between classrooms and the outside business world for the M.B.A. student.

Practical training is a tool to develop conceptual and analytical ability in the

student. According to M.B.A.

Schedule, students are required to visit an industry as a part of practical study.

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ACKNOWLEDGEMENT

I wish to first give my deepest thanks to Professor Pratima Rajput for giving us
opportunity to work on this project and learn and explore myself completely into
how works in an organization and how it plays an important role in an
organization.
I want to say a very special thanks to Mr Tyagraj Mudaliyar. Export Chief
Manager of Arvind Mills ltd.
I would also like to thanks some of the employees Of Arvind Mills Ltd. who
gave me their valuable time and inputs regarding depart mentation knowledge
and without who my project would be consider incomplete.

This project is a combined effort of all the above who directly or indirectly
contributed to it and this project would not have been possible without the help
of those. I am filled with gratitude and I have no question that I could not have
done this project without all the people mentioned above.

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INDEX

Sr.No
.

Particular
PART 1

1
2

General Information

Pg.
No
07
08
15

Introduction of Export
Denim Export Process

Pre-Shipment

21

Post Shipment

33

Shipping Line

49

Banking

54

Benefits

9
13
10
14
12
15

PART 2
SWAT Analyses
Objective
Porter Five factors
Research Methodology
BCG Matrix
Literature Review

60
67
62
68
64
69
66
70

16

Data Analysis

74

17

Finding

89

18

Suggestion

90

19

Limitation

91

20

Conclusion

92

21

Bibliography

93
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16

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PART 1
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1. Introduction of company.

Introduction is necessary for this unit. Who makes Denim Fabric

Arvind Mills Ltd. Is a public Ltd. Company. It is large scale industry

Arvind Mills Ltd. Is a manufacturer of Denim Jeans Material. In Ahmadabad,
Naroda Plant Unit.

All the staff member of Arvind Mills Ltd. Very much co-operative they all
believed us like a member of company. So we are very much thankful to
management of this company for giving us opportunity to take and industrial
training in Commercial Export Department.

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OTHER INFORMATION

Name of the firm

:-

Arvind Mills Ltd.

Year of establishment

:-

1931

Location of organization
Naroda Road,

:-

Arvind Ltd.
Ahmad

abad,380025

Web site

:-

WWW.arvind.com.

Form of Organization

:-

Public

Limited

:-

Large

Scale

Company
Size of the unit
Industry (LSI)
Key People

Sanjay Lalbhai

(Chairman)

Bankers

:-

B.O.B BANK
S.B.I BANK

Product

:-

Denim

,khakhi,shirting,Fabric,

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No. of Employees
Day Of

::-

25,620
Sunday

We may import latest technologies from the west but our personal
Values must remain our own, rooted in our own tradition that is the
Secret of the sense of fulfillment of life.
Shree Kasturbhai Lalbhai
(Co Founder of Arvind Ltd.)

History
The year 1930 was when the world suffered the great depression. At
about this time, Mahatma Gandhi championed the Swadeshi Movement
and at his call, people from all across India began boycotting fine and
superfine fabrics, which had so far been imported from England. In the
midst of this depression one family saw opportunity.

The Lalbhais reasoned that the demand for fine and superfine fabrics still
existed. And any Indian company that met this demand would surely
prosper. The three brothers, Kasturbhai, Narottambhai and Chimanbhai,
decided to set up a mill to produce superfine fabric. Next they looked
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around for state-of-the-art machinery that could produce such high quality
fabric. The best technology of that time was acquired at a most attractive
price. And a company called Arvind Limited was born.

Arvind Limited started with a share capital of Rs 2,525,000 ($55,000) in

the year 1931. With the aim of manufacturing the high-end superfine
fabrics Arvind invested in very sophisticated technology. With 52,560 ring
spindles, 2552 doubling spindles and 1122 looms it was one of the few
companies in those days to start along with spinning and weaving
facilities in addition to full-fledged facilities for dyeing, bleaching,
finishing and mercerizing. Steadily producing high quality fabrics, year
after year, Arvind took its place amongst the foremost textile units in the
country.

Vision
The corporate vision for Arvind states: We will enable people to experience a better
quality of life by providing enriching and inspiring lifestyles solutions.

Mission

The present motto of the company is to produce good quality of products & to

meet customer demand.

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To select, train and coach people to obtain higher responsibilities;

to nurture talent, and to build leaders for the corporations of tomorrow; to

reward, celebrate and activate all intellectual business contributions.

Major Department Of Arvind Ltd.

A ) Production Department
B ) Human Resource Department
C ) Marketing Department
D ) Finance Department
A ) Production Department
In a Arvind Ltd. There are diferent type of
products are produce
Products
Life Style Fabrics
Denim
Shirting's
Khaki
Jeans
Shirts

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 Human Resources Department

B) Human Resource Department
In strategic business unit the relation rate of
employees the Law as the plant is 80 years old.
When new employees join the plant the excitement
level of the employee is quiet high but within time
it declines. At Arvind Ltd. An attempt is begging
undertaken to decrease the number of the
employees specifically those who do not have the
required employment skills. The employees
strength Is over 2500 across at the units.

Marketing Management

As Arvind Ltd. Is the one of the leading company in

textile. Industry they provide their fabric to
domestic as well as international market also they
have different terms which handle marketing
actives in different region.
Arvind Mill provides 8 million meters Fabric every
month. Out of which 60 % in exported and the rest
is manufactures for the domestic market. For
promotion their produces in domestic and
international market they organized fashion show
they have different designer for US, EUROPE, and
international market.
Their introduced new collection twice every years.
(Summer Spring and autumn Winter) know as
American line collection for the American market
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and Europe market. A part from that also holds

exhibition and seminar for the concerned buyers.

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Denim Export Process in Arvind Mills

Ltd.

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Introduction of Export

Export

An Export is a function of international trade whereby goods Produced

in one country are shipped to another country for future sale or trade.
The sale of such goods adds to the producing nations gross output.

The term export means shipping in the goods and services out of the
jurisdiction of a country. The seller of such goods and services is
referred to as an "exporter" and is based in the country of export
whereas the overseas based buyer is referred to as an "importer". In
international trade, "exports" refers to selling goods and services
produced in the home country to other markets.

Export of commercial quantities of goods normally requires

involvement of the customs authorities in both the country of export and
the country of import. The advent of small trades over the internet such
as through Amazon and eBay have largely bypassed the involvement of
Customs in many countries because of the low individual values of
these trades. Nonetheless, these small exports are still subject to legal
restrictions applied by the country of export

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Denim Export Process in Arvind Mills.

There are five Different type of Department In

Export Process. Arvind Mills Uses The Following
types of department for Denim Material Export.

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TERM :~ 20 ~

INC
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1. Ex Works (EXW):- the seller fulfils his obligations by having the goods
available for the buyer to pick up at his premises or another named place (i.e.
factory, warehouse, etc.). Buyer bears all risk and costs starting when he
picks up the products at the sellers location until the products are delivered
to his location. Seller has no obligation to load the goods or clear them for
export.
2. Free on Board (FOB): seller clears the goods for export and delivers them
when they are onboard the vessel at the named port of shipment. Buyer
assumes all risks/cost for goods from this moment forward.
3. Cost and Freight (CFR): seller clears the goods for export and delivers
them when they are onboard the vessel at the port of shipment. Seller bears
the cost of freight to the named port of destination. Buyer assumes all risks
for goods from the time goods have been delivered on board the vessel at the
port of shipment.

4. Cost, Insurance, and Freight (CIF): seller clears the goods for export and
delivers them when they are onboard the vessel at the port of shipment. Seller
bears the cost of freight and insurance to the named port of destination.
Sellers insurance requirement is only for minimum cover. Buyer is
responsible for all costs associated with unloading the goods at the named
port of destination and clearing goods for import. Risk passes from seller to
buyer once the goods are onboard the vessel at the port of shipment.

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5. Delivered Duty Paid (DDP): seller bears all risks and costs associated with
delivering the goods to the named place of destination ready for unloading
and cleared for import
.
6. Carriage Paid To (CPT): seller clears the goods for export and delivers
them to the carrier or another person stipulated by the seller at a named place
of shipment. Seller is responsible for the transportation costs associated with
delivering goods to the named place of destination but is not responsible for
procuring insurance.

7. Carriage and Insurance Paid To (CIP): seller clears the goods for export
and delivers them to the carrier or another person stipulated by the seller at a
named place of shipment. Seller is responsible for the transportation costs
associated with delivering goods and procuring minimum insurance coverage
to the named place of destination

8. Free Alongside Ship (FAS): seller clears the goods for export and delivers
them when they are placed alongside the vessel at the named port of
shipment. Buyer assumes all risks/costs for goods from this point forward.

9. Free Carrier (FCA): the seller delivers the goods export cleared to the
carrier stipulated by the buyer or another party authorized to pick up goods at
the sellers premises or another named place. Buyer assumes all risks and
costs associated with delivery of goods to final destination including
transportation after delivery to carrier and any customs fees to import the
product into a foreign country.

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 Logistic Planning

Logistic Planning Logistics management is the part of supply chain

management that plans, implements, and controls the efficient, effective
forward, and reverse flow and storage of goods, services, and related
information between the point of origin and the point of consumption in
order to meet customer's requirements.

Mode Of Shipment
(A) Full Container Load (FCL)
(B) Loose Container Load (LCL)

(A) FCL
There are three type of container used by Arvind. 20
Container, 40 general purpose Container and 40, High Cube
Container.
When the shipment is on FCL basis, normally this mean
cargo one shipper and one consignee and the shipping line
provide the Container to shipper at port.
(B)

LCL
When a consolidator at a common party for the multiple
shippers and multiple consignees and stuffs the cargo of all
shippers in the Container at origin Container Freight Station
(CFS).

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Pre-Shipment

Made available before goods are shipped (usually against a

confirmed order) to help an exporter fulfil an export order.

It is a part of supply chain management and an important quality

control method for checking the quality of goods clients buy from
suppliers.

In Arvind Mills Pre-Shipment is a first process of export goods.

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 Pre-shipment
Process

In a Pre-shipment department first of all market supporters are deal with

costumer and Negotiate with all terms of company.
End of the negotiate terms market supports sand a formal call mail to the
Pre-shipment department.
Receiving the call mail Pre-shipment department generate a request for a
prepare order
In a Pre-shipment department first of all make a pre-invoice for specific
order after pre-invoice production department make a plant invoice.

The plant invoicing program is a use to enter plant invoices. It handles

the data entry of invoices of plant item. Usages and posting the charges
to the Accounts Receivable module.

The program is used for invoicing the usage of plant items that are hired
to other external companies. Internal/External hiring within companies on
the same Century accounting system is performed by the Hire Movement
program.
After plant invoice pre-shipment department make a custom invoice. For
custom clearance.

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 And last step of pre-shipment is an ARE (Application for removal of

excisable goods for export) it is a one type of proof of export. ARE file is
a final process of export goods.

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Pre-shipment Process

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Pre-invoice
A pre-invoice, also known as a pre-assigning invoice, is an estimate of
billed goods and services sent to a customer before delivery. Any invoice
which is raised before delivery of goods or completion of service and then
assigned to us for an advance. These will be raised either to obtain early
payment from the customer or from us

Invoice generation : Ones the INI (Invoice Instruction) is Validated, warehouse can link the
bales with quantity within the tolerance limit of the INI and the invoice is
the generated. Pre-shipment who keeps on checking whether invoice in
generated or not comes to know through system that invoice has been
generated.
Pre-shipment prints and checks the invoice before despatch for quantity ,
POL(Port Of Loading) , POD( Port Of Discharge) , FPD(Final Place Of
Delivery) and mode of shipment. If the invoice is order on the basis of
dispatch mode, whether containerized or loose, the details are uploaded by
the pre-shipment.
Present market value is also added to the generate invoice. Final shipment
now is a ready.

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 Pre Invoice Copy

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~ 30 ~

 Pant Invoice

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Custom Invoice

Extended form of commercial invoice required by customs (often in a

specified format) in which the exporter states the description, quantity and
selling price, freight, insurance, and packing costs, terms of delivery and
payment, weight and/or volume of the goods for the purpose of
determining customs import value at the port of destination.

A formal document used to clear goods through customs in the

importing country by providing pertinent shipment information
including but not limited to country of origin, description and
value.

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Custom Invoice

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ARE-1 File
(Application for removal of excisable goods
for export)
ARE -1(CT-1) one is the export document which
shall be prepared in 5 copies.
This document shall bear running serial
number beginning from the day of fanatical
year.
On ARE-1 certain declaration are required to be
given by the exporter they should be read
carefully and signed by the exporter or his
authorised agent.
The Different copies of ARE- 1
Original
Duplicate
Triplicate
Quadruplicate
Quintuplicate

White
Buff
Pink
Green
Blue

ARE- 3(CT-3)

When the EOU (Expert Oriented Unit) intends to buy

materials from DTA (Domestic Tariff Area).
They execute a bond with central excise authority that is
acting on behalf of the jurisdictional custom authority.
Central Excise authority issues CT3 against the bond.

~ 34 ~

 ARE-1 (CT-1)

~ 35 ~

 ARE-3(CT-3)

~ 36 ~

Post- shipment

Post shipment credit means any loan or advance granted or any

other credit provided by a bank to an exporter of goods or services
from India from the date of extending credit after shipment of
goods or rendering of services to the date of realization of export
proceeds as per the period of realization.

~ 37 ~

 Post- shipment Documents

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 Bill Of Lading :-

A bill of lading is a legal document between the shipper of a

particular good and the carrier detailing the type, quantity and
destination of the good being carried.

The bill of lading also serves as a receipt of shipment when the

good is delivered to the predetermined destination.

This document must accompany the shipped goods, no matter the

form of transportation and must be signed by an authorized
representative from the carrier, shipper and receiver.

A bill of lading, often abbreviated as B/L, is the ticket outlining the

journey of your cargo from origin to its destination. Much like an
airline issuing a ticket to a passenger, a B/L is issued by a carrier to
a shipper detailing the method and path of a shipment, be it by any
combination of air, sea, and road.

Processing The B/L :-

~ 39 ~

 One the L/C arrives at Arvind, the commercial support person will
check the letter of credit whether it is as per contract or not and also
check the terms and conditions of L/C.

If the find that L/C is as per contract then he will the pass on the
L/C to documentation team.
The documentation team prepares a B/L instruction and forward to
shipping line.... (Chinubhai Kalidas & Bros.)
This B/L instruction is prepared on the basis of L/C or Buyer
requirement.

This is processed by CKB to prepare the actual B/L in anticipation

of loading.

B/L is the Non- negotiable instrument.

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 Bill Of Lading

~ 41 ~

 Commercial Invoice
It is important to ensure that information on all your documents is
consistent and accurate, starting with the Commercial Invoice.
Meaning:The Commercial Invoice is prepared by the exporter and is
required by the foreign buyer to prove ownership and arrange
for payment. FedEx provides separate Commercial Invoices
forms for use with FedEx Express and FedEx Ground
international
shipping.
Why is it needed:It is the primary document used by most foreign customs agencies
for import control, valuation, and duty determination.
When is it needed?
The Commercial Invoice is required for all product/commodity
shipments for international trade. All FedEx International Ground
shipments require a Commercial Invoice.
It is the foundation of all other documents and is the first
international shipping document that should be completed. The
information provided on other international shipping documents,
including the air waybill or shipping label, must correspond with
the Commercial Invoice.
It is the statement of account of sale rendered by the seller to other
buyer. An invoice document which contains detailed description of
the goods consigned the consignor name, the consignee name, the
name of the buyer. Number of bill of lading and date of sailing
order acceptance, quantity shipped, selling price to the purchaser or
each unit, term s of credit.

~ 42 ~

~ 43 ~

 Bill Of Exchange
A written, unconditional order by one party (the drawer) to another
(the drawee) to pay a certain sum, either immediately (a sight bill)
or on a fixed date (a term bill), for payment of goods and/or
services received. The drawee accepts the bill by signing it, thus
converting it into a post-dated check and a binding contract.

A bill of exchange is also called a draft but, while all drafts are
negotiable instruments, only "to order" bills of exchange can be
negotiated. According to the 1930 Convention Providing A Uniform
Law For Bills of Exchange and Promissory Notes held in Geneva
(also called Geneva Convention) a bill of exchange contains: (1)
The term bill of exchange inserted in the body of the instrument and
expressed in the language employed in drawing up the instrument.

Banks usually act as intermediates between the importers and

exporters in the international trade. This occurs by means of
documentary collection and letters of credit.

The drawer is the person who drowns or signs the bill giving

an order to another person to pay the amount mentioned on the face

of the bill. By drawing the bill, the drawer is liable on the bill until
it is accepted.

The drawee of a bill is the person to whom the bill of

exchange of addressed. This person becomes the acceptor when he

commits himself to pay the bill at maturity by signing his name
across the bills.

The payee is the person to whom the bill of exchange will be

made. If the payee is not the bearer (the exporter), the payees name
must appear on the bill.

~ 44 ~

There are 2 types of bills of exchange:-

a) Sight bill
b) Terms bill

Sight Bill: - when a bill is payable on sight, this implies that

payment is due immediately on sight of the bills.

Term Bill:-A term bill is payable at a stipulated future date. The

buyer is required to make payment at a fixed or determinable future time.

Bills are drawn for the period of credit given to the buyer and are

usually for 30, 60, 90,120 or 180 days

.

Bill of exchange

~ 45 ~

 Packing List

A packing list is a document that includes details about the contents of a

package. The packing list is intended to let transport agencies, government
authorities, and customers know the contents of the package. These details
help each of these parties handle the package accordingly.

In a packing list include different types of contain.

~ 46 ~

1 Sr.No.
2 Mill No
3 EXC No.
4 Pieces/rolls No.
5 Quantity
6 Sq. Meter
7 Gross Wight(Kg)
8 Net Wight
9 Sort No.
10 Invoice No.
11 Invoice Date
12 Costumer Detail
13 Port OF Loading
14 Sales Oder No.

~ 47 ~

Shipping Instruction

Shipping Instruction is a document which prepared for the directions of

CHA to arrange export accordingly. It states the complete details of
cargo, the benefit scheme under which the shipment is to be exported.
It also details the route shipment will take up to the declaration. Shipping
instruction also contains the details of buyer, consignee, pay terms, Inco
Terms.
It is the complete guidelines to CHA for the export shipment.

~ 48 ~

 Insurance Certificate

In a Arvind Ltd. insurance certificate is a issued by a insurance

broker to provide notification that insurance has been placed
pending the development of a certificate of insurance or an
insurance policy
This show the detail of the insurance cover. It gives the value and
particulars of the shipment and specifies the risk covered.
The certificate signed by the insurance company
In a Arvind ltd. Tata AIG General Insurance Company Ltd. Is a
signed in an insurance document. And generate the AIG insurance
certificate.
The insurance covered should be from the time of despatch of the
goods or loading on board or when ever goods are indicated in the
transport document.
Banks will not accept an insurance certificate which bears a date of
insurance later then the date of loading or dispatch.

~ 49 ~

 Insurance Certificate

~ 50 ~

 Certificate of Origin

A Certificate of Origin (CO) is an important international trade document

attesting that goods in a particular export shipment are wholly obtained,
produced, manufactured or processed in a particular country.
CO also constitutes a declaration by the exporter.

Two major types of COO (certificate of origin)

a) "Non-Preferential COO :b) Preferential COO

: "Non-Preferential COO: - ordinary COO which certify that the country
of origin of a particular product does not qualify for any preferential
treatment.
"Preferential COO: - refer to CO which enables products to enjoy tariff
reduction or exemption when they are exported to countries extending
these privileges: e.g. GSP, Commonwealth Preference Certificate.
Certificates of Origin may be needed to comply with Letters of Credit,
foreign Customs requirements or a buyers request.

Certificate of origin is the document, certifying the origin of country where

in the export goods are procured and manufactured originally.

Most of the cases, the buyer needs only the certificate issued by local
Chamber of commerce. However in certain cases, the buyer insist to get
GSP (generalized system of preference) issued by export council agencies
of respective country.

~ 51 ~

 Certificate Of Origin

~ 52 ~

~ 53 ~

Shipping Line

~ 54 ~

 Shipping Line

Shipping bill is a custom Document. It is an important document required

by the customs authorities for allowing the shipment
.
It is prepared by CKB and it contains the name of vessel master or agents,
port at which the goods are to be loaded and discharged, exporters name
and address, details about the packages, number and description of goods,
quantity, and FOB price.
Types of shipping bill depend on the incentive scheme applicable, like
DRAWBACK, DEEC, DEPB, and EOU.

Copies of Shipping Bill

Export Promotion (EP) this copy is for claiming
any type of benefit and also submitted to various
departments as proof of Export.
Exporter- this copy is for the records of the Exporter.
Incentive (DEEC/DEPB/FREE/EOU):- This copy
is given to the Benefits department for Verification with
the Customs department.

AUDIT:-This copy is retained by the customs for

their Audit Purposes.
Exchange control: - This copy is submitted to the
Bank with the entire set of documents like Bill of lading
for negotiation.

Custom clearance process

~ 55 ~

ICD (In Land Depo)

CKB (Chinubhai Kalidas and bro.) Prepare
annexure an on basis of the receipt of preshipment document given by Arvind. This is
done by CKB persons who is on duplication
to Arvind premise at Nroda road and is
permanently stationed there.
Annexure data is entered into the Customs
EDI System by this person thru ICEGATE or
in case of failure of ICEGATE; the same can
also be filed manually by presenting the
Annexure A to Customs at ICD.
Against the data fed, the system generates
a checklist which has to be verified and
authenticated by CKB.
Once the Shipping Bill No. Is generated,
Loose or Containerized cargo is allowed to
enter the
ICD. This is called
CARTING of the cargo.
The assessing officer will verify the details
given on the Shipping Bill with Invoice,
packing list and Contract.
An assessed Shipping Bill is valid for 15
days only.

~ 56 ~

 Movement to gateway port

(A) Decision of rail/ road (lorry receipt)
(B) By Air way BILL (AWB)
(C) Shipped On Board (Bill of lading)
Decision of Rail: - Earlier it was only CONCOR which was
running trains from Ahmedabad to Gateway ports. Now, after railways
have allowed the private operators to move trains, CONCOR is facing
the competition for, private players also.
ROAD: - Container can be moved to Gateway port by
road also.

(B) By Air waybill: - This is a waybill for goods transported by

Air. It is not a document of title but a contract of carriage and a receipt by
the airline for goods received for transportation.

(c) Shipped On Board

The Preventive Officer Department, who supervises the loading of
cargo on board the vessel, will check seal cover and all the
documents, which are inside it. The Preventive officer makes an
endorsement Let Ship on the duplicate copy of the shipping bill.
The duplicate copy of the shipping bill than handed over to the
agent of the shipping company.

~ 57 ~

 Arvind Ltd usages Major following different ports for

export goods

1
2
3
4

Pipavav ( Mundra )
MPSEZL ( Mundra port SEZ Ltd.)
Mumbai Old port & kandla Port
JNPT ( Javahar lal Naheru Port )

~ 58 ~

~ 59 ~

BANKING

BANKING &NEGOTIATION : Hear 4th step is banking in a banking department all documents and terms are
negotiating with the bank and costumer.
DOCUNENT MOVEMENTS: Shipping Desk takes care for the complete movement of the post Shipment
documents.
After export clearance i.e. after LEO is issued against a shipment, custom
releases the Exporter copy and Exchange control copy of shipping Bill
along with the SDF or GR Form. The same is collected CHA, and
forwarded to Arvind.
PSG (posts shipment group) team after dispatch of the cargo applies for
the certificate of origin as applicable. The same is arranged to be collected
from the concerned agency. if the certificate of origin is required to be
legalized the same is the forwarded to CHA.
After LEO, custom release the exchange control, copy of shipping bill,
exporter copy of shipping bill and form SDF or duplicate copy or GR form
whichever is a applicable. This is collected by CHA and forwarded to
Arvind.
PSG team had already provided the B/L instructions. On the basis of the
same after receipt of confirmation of container shipped on board the planed
vessel, shipping line release the B/L.
This B/L collected by CHA and same is delivered to Arvind.

NEGOTIATION
~ 60 ~

 When the entire document for the shipment is either internally generated
or are collected from the external agency, PSG prepared the final set of
documents for negotiation.
This final set is given to the export banking team of for checking. All
deviations from the requirement either as required by the L/C or
requirement of the consignee / buyer already accepted by Arvind.
Anny governmental policies, procedural requirement is pointed out to
PSG. On rectification or approval of deviation, export banking team
accepted the document for negotiation.
The document is forward to the bank.

~ 61 ~

 POST SAILINGS
TRANSHIPMENT: -

We have most of the destinations having direct sailings from India. But
still there are a number of destinations where we do not have direct
sailings.
But still there are a number of destinations where we do not have direct
sailings.

FREE RELEASE: All three copies of original B/L is surrendered to the shipping line at
origin and message is arranged from Shipping line to destination duly
certifying the surrender of the all three copies of original B/L at origin
with a request to release the cargo without asking for the original B/L.
This is called Free Release or Telex Release.
In case if the payment is either 100% in advance or against proof of
Shipment, where the buyer remains the payment and does not require the
Original B/L for the release of the cargo and hence the same is not
required to be negotiated along with other export documents.

ARVIND EXCEPTIONAL REQUIREMENTS AND

THEIR IMPLICATIONS: ~ 62 ~

 BACK TO TOWN:

Once the cargo is Carted in the customs bonded area be it

ICD, CFS, or airport and if subsequently there is a change like
cancellation of order, change from Sea to Air or Vice versa or even
reduced quantity to be shipped, the cargo cannot be taken out from
the above mentioned places without completing customs formalities
which is called BACK TO TOWN.

To get a Back to Town permission, first of all ARVIND has to give

a letter addressed to the Deputy Commissioner of Customs
requesting for allowing either the entire or a part of the cargo to be
removed giving reasons like cancellation of order or change of
mode of shipment from sea to Air.
In case the Container has been cleared at ICD Ahmadabad, and the
back to town has to be done at Nhava sheva, Mundra or Pipavav.
CKB Approaches the Deputy Commissioner of Customs and
submits this letter along with supporting documents like Invoice,
Packing List and Annexure.
The Deputy Commissioner then forwards the same to the Shed
Superintendent for his report.
The superintendent gives his report and the same is once again sent
bank to the DC who is turn after his remarks on the file forwards
the same to the Additional for his final approval.

Advance Payment Advice

~ 63 ~

 A document that describes payments that are being made. The person or
company that is making the payment will sometimes include a
remittance advice, which is like a receipt of the payment.

A remittance advice is usually used by companies processing either a

purchase or a filed claim.

Advance Payment Advice Copy

Department

~ 64 ~

Benefit

~ 65 ~

 Benefit Department
1) DUTY DRAWBACK: This scheme is under the Preview of Department of revenue, ministry of
Finance. The objective of the Drawback scheme is to nullify the incidence
of duties of the inputs used in the manufacture of export goods. This is a
cash incentive.

Drawback rates are of two types:

All industry rates: - These rates are notified every year on the basis
of data submitted by various exporter and export promotions councils.

Brand rates: - In case the all industry rate are unsuitable or not
notified, the exporter has option to approach the government for fixation
of the specific brads rates.
Benefits under excise Heads :-

Any good can be despatch out of a manufacturing unit situated in

domestic tariff area against payment of notified excise duty. For this
purpose government of India has constituted central excise department.
At the time of despatch of export product, the manufacturing unit has to
pay duty through the export are exempted from excise duty.

~ 66 ~

 SWOT Analysis of Arvind Ltd.

~ 67 ~

STRENGHTS

WEAKNESS

Market leader.
Good brand
market.
Automated
machines.

image

in

the

Old production facilities in some

departments.
Present In only Bing Cities.

computerized Not doing enough to build its brand equity.

Strong Portfolio of domestics and

international brands.

OPPORTUNITIES

THREATS

Growth rate of Domestic Textile Industry

is 15-20% per annum.

Competitors like Raymond, Bombay

dyeing, Madhura garment

Rapid Growth in the age group in the 15

to 45 years.

Competition from other developing

countries.

Ability and willingness in India.

New competitors keep entering to

local markets.
There will be always fluctuation in prices
of raw materials.

SWOT Analysis OF Arvind Ltd.

Potters Factors

~ 68 ~

~ 69 ~

 Threat of new entrants High

Fragmented Industry
Supportive Polices
Growing Domestic export opportunities
The sector is competitive and likely to see increased
investment from global players
Supplier Power - Low

Abundant Supply of raw materials

Well established supplier based

Competitive Rivalry High
Competitive structure
Lack of industry leadership
No significant exit barriers
Buyers Power Medium

Growing domestic &export demand buyers are large in number.

Wide range and variety of products.
Alternative Suppliers.
Switching cost from one page to the other low.
Buyer can integrate backwards and can have captives supply source
.
Threat of substitutes low

No significant threat.

~ 70 ~

BCG Matrix

1) Dogs:
These are products with low growth or market share
( E.g : Khadi )
2) Question marks or Problem Child:
Products in high growth markets with low market share
( E.g Shirting )
3) Stars
Products in high growth markets with high market share
(Fabric, Denim).
4) Cash cows:
Products in low growth markets with high market share
(E.g Cargo)

~ 71 ~

PART 2
~ 72 ~

 Objective OF The Study

To Know the level of Employee Satisfaction For the export
department of Arvind Ltd. In Ahemdabad Naroda unit.
Factors influencing Is a Depend on working Environment of the
Arvind ltd.

~ 73 ~

 Research Methodology
Introduction:
Research is a systematic inquiry that provides information to guide managerial
decision. More specifically it is a process of planning, acquiring, analyzing &
disseminating relevant data, information and insights to decision makers in ways
that mobilize the organization to take appropriate actions that, in turn maximize
business performance.

Research is a systematic approach towards purposeful investigation.

Marketing research is a clearly defined search for answers to some questions

which if answered would lead our company to make critical marketing decision
on a strategic level.

To determine the association or an independence of any activity research is the

first and foremost thing. It determine characteristic of an individual or group of
activity & frequency of its occurrences.

~ 74 ~

 Research Design
A research design is a frame work or blue print for conducting the marketing
research project. It details the procedures necessary for obtaining the
information needed to structure or solve marketing research problems.
Here we used conclusive research design.
In conclusive research design we have used descriptive research.

Source/s of Data
After designing the blueprint or frame work of research the next step is to how
to collect the data. There are mainly two type of sources for data collection.
1. Primary data
2. Secondary data
1. Primary data:
Primary data is collection of information specifically for the study on
hand, from the actual sources such as Employee, dealers or other entities
involved in the research.
2. Secondary data:
Secondary data is any information we may use but which has not been
specifically conducted for the current marketing research.

~ 75 ~

 Sampling Method:
The method which is used for sampling is simple random design method. The
candidates are selected randomly so there is no chance of bias. Sampling
design includes various aspect and they are as follows:
Type of sampling

: Random sampling

Sampling unit

: Industry

Sampling area

: Arvind Ltd., Export Department

Sample size

: 50 Respondents

Limitation of the Study:

The market survey will be limited to Arvind Ltd.

Sample size is 50, which may not represent the overall population.
The respondent might be biased in filling in questionnaire.
Benefits of Study:

This project will be useful to the company providing many types

of ideas and suggestion for providing the service to employee.

Literature Review

~ 76 ~

 Job security is another element which contributes to employee

satisfaction. Usually employees may become more satisfied with
their jobs and decide to stay in the organization if they know that
their jobs are secured. Meltz (1989: p 149) defines job security
broadly as "an individual remains employed with the same
organization with no reduction of seniority, pay and pension rights."

Similarly, Hertzberg (1968) defines job security as the level to

which an organization provides stable employment for employees.
There are certain agreements made between the employee and
employer which prevent the latter from sacking the former without
any valid reasons. However, this particular term has different
meanings according to the employment laws of each country.

In European countries many employees have indefinite contracts

which do not guarantee their jobs for life as it becomes difficult for
the employer to get rid of an employee.
In a Organization
Another major impact that job satisfaction can have is worker's
commitment to the organization and its culture. Organizational
commitment is usually defined as the strength of one's
identification and involvement with their respective organization
(Mow day et al., 1979). Research shows that social involvement
predicts organizational commitment where the more involved the
individual, the more committed they are (DeCotiis and Summers,
1987).

Other studies show that organizational commitment is related to a

person's intention to leave and turnover (Shore and Martin, 1989;
Tett and Meyer, 1993) as well as theoretically to job performance
(Mow day et al., 1974). Essentially, committed individuals are

~ 77 ~

expected to extend greater efforts on the job, having a direct impact

on job performance.
Reward systems are designed and managed to improve productivity
and control labour costs (John Bratton and Jeffrey Gold, 2001).

The reward system is a major element in determining the

psychological contract within an organization, particularly in
circumstances of change. By specifying new performance
requirements of employees as a result of strategic change, and the
rewards employees will receive upon their fulfilment, management
define new expectations and so alter the employment relationship
(Stiles et al., 1997).
A reward system consists of:
Policies that provide guidelines on approaches to managing rewards.
Practices that provide financial and non-financial rewards.
Processes concerned with evaluating the relative size of jobs (job evaluation)
and assessing individual performance (performance management).
Procedures operated in order to maintain the system and to ensure that it
operates efficiently and flexibly and provides value for money.

~ 78 ~

 Data Analysis
Q 1: Age
Age

Frequency

lessthen21
21to30
31to45
46to55
Total

3
30
11
6
50

Frequency

30

11
6
3

lessthen21

21to30

~ 79 ~

31to45

46to55

Q2: Education Qualification

Qualification

Frequency

H.S.C
Graduate
Post Graduate
Any Other

12
22
15
1

Frequency

22

15
12

1
H.S.C

Graduate

Postgraduate

~ 80 ~

anyother

Q1 since How many years have you been working with

Arvind?
Years
0-2 years

Frequency
17

2-5 years
5-10 years
10 and above
Total

11
13
9
50

0-2 years

2-5 years

5-10 years

10 and above

18%
34%
26%
22%

INTERPRE TATION: From the above chart it is evaluated that 34 % employees

are new requirement employees.

~ 81 ~

Q2 How is the Working Environment?

Rank

Frequency

very good
Good
Average
Bad
Total

12
29
6
3
50

Frequency
very good

12%

good

6%

average

Bad

24%

58%

INTERPRE TATION: From the above chart it is evaluated that 58% employees think that Arvind
working environment is a good.

~ 82 ~

Q3. Do you think your work is according to your

Qualification and Skills?
Scale

Frequency

yes
no
Total

38
12
50

40
35
30
25
Axis Title
20
15
10
5
0

yes

no

INTERPRETATION: From the above chart it is evaluated that most of employee are respond

that according to them the work is according to their qualification and skill.

~ 83 ~

Q4. Are you satisfied with top Management?

Scale

Frequency

Highly satisfied

Satisfied

30

Neutral

Dissatisfied

Total

50

30

9
4

Highly satisfied

satisfied

Neutral

dissatisfied

From the above chart it is evaluated that most of employee are

satisfied with the top management in Arvind .and only 4 respondent are
dissatisfied with top management
INTERPRETATION:

~ 84 ~

Q5. Does your Organisation Organised any Counselling programme?

Ranks
yes

Frequency
48

no

Total

50

Frequency
50
45
40
35
30
25
20
15
10
5
0

Frequency

yes

no

INTERPRE TATION: -

From the above chart it is evaluated that 45 employees

agree with this.

~ 85 ~

Q6 Does the employees share experience each other?

Rank

Frequency

yes

42

no

Total

50

Frequency
45
40
35
30
25
20
15
10
5
0

Frequency

yes
no

INTERPRE TATION: -

From the above chart it is evaluated that most of

the employee are sharing their experience with each other in
the company.

~ 86 ~

Q7 Do you think there are good career prospect in your organization?

Rank
yes

Frequency
37

no

13

Total

50

40
35
30
25

Frequency

20
15
10
5
0
yes

no

From the above chart it is evaluated that the

employee of Arvind thinks that they have good career prospect
in organisation.
INTERPRETATION:

~ 87 ~

Q8 How is the Physical condition in the Organization?

Rank

Frequency

Excellent
good
Neutral
poor
Total

7
27
14
2
50

Frequency
Frequency

poor

Neutral

14

good

Excellent

27

INTERPRETATION:
From the above chart it is evaluated that most of respondent
think that the physical condition of Arvind is good and only 2 respondent are not
satisfy with the physical condition of Arvind.

~ 88 ~

Q9 Does the top management involve Employees in the management

decisions?
Rank

Frequency

Always
Sometime
Never

10
29
9

Frequency
Frequency

Never

Sometime

Always

29

10

INTERPRETATION:
From the above chart it is evaluated that the top
management involve some time in the management decision of company
and only 10 respondents think that they evolve them in management
decision

~ 89 ~

Q10 Does the organisation provide Medical facilities for employees?

Rank

Frequency

Yes
No
Total

42
8
50

Frequency
45
40
35
30

Frequency

25
20
15
10
5
0
Yes

No

INTERPRETATION:
From the above chart it is evaluated that Arvind is giving medical
facility to most of employee and only 8 respondents think that they dont
received medical facility to them.

~ 90 ~

Q11 which of the following factors are important for

your motivation?
Rank

promotion
monetary incentive
recognition
celebration of
personal milestone
leave

most
importa
nt
17
15
16
8

importa
nt

neutr
al
8
5
8
11

less
importa
nt
5
4
3
4

least
importa
nt
2
1
1
1

18
25
22
26

13

21

11

30
25
20

promotion
monetry incentive
recognition
celebration of personal
milestone
leave

15
10
5
0
most important

neutral

least important

INTERPRETATION:

From the above chart it is evaluated that in Arvind employee are motivated with
promotion, monetary incentive, and recognition is giving to them.

~ 91 ~

Factors.

Highly
Satisfi
ed

Satisfi
ed

Neutr
al

Dissatis
fied

Highly
Dissatisfi
ed

Organization
Culture
Job description
position/Designati
on
Compensation
Leave Policies
Appraisal System
Achievement of
Goals
Training and
Development
Communication
system
Supervisor
support
Recruitment
Policies
Working hours
Welfare facilities
Opportunities for
Growth
Autonomy and
Independence
Work life balance
practices
Exit Policies

18

19

10

6
9

10
23

18
14

1
3

15
1

9
9
6
3

19
23
23
10

15
14
9
19

5
2
11
12

2
2
1
6

29

43

36

17

10

20

15

4
6
7

22
25
12

16
10
22

4
3
7

4
6
2

19

20

21

10

12

16

24

Q12 Please indicate how satisfied you are with the

below mentioned factors

~ 92 ~

Chart Title
45
40
35
30
25
20
15
10
5
0

Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied

INTERPRETATION:
From the above chart it is evaluated that almost all the employee are satisfied
with the above all factors in Arvind.

~ 93 ~

 FINDING
1) As per 70% employees Celebration personal milestone monetary incentive is
a important factors for motivation.
2) 40% employee is the satisfied with communication system.
3)40% employees are think that they career prospect is good in Arvind.
4)70-75% employees are not satisfied with Pay scale.
5) In this research we found that Arvind more reliable with relationship of
domestic and international customer.
6) Arvind is more emphasis on its policy or to maintain Goodwill to stay at the
top level Arvind without seeing credit worthiness of the supplier, it is supplied
the raw material to that suppliers.

~ 94 ~

 Suggestions
Thus her by on the basis of our understanding and observation we
would like to put forward suggestion and also recommendation to the
company as well as on entire topic `
Pay good Scale
Goal and achievement should be transparent.
Management should involve lower level managers in meeting.

~ 95 ~

 Research limitation

Time Limitation
No response from some respondent
There is no certain time to fill the questionnaire

~ 96 ~

 Conclusion

From the survey conducted it is observed that Arvind Ltd. Is a good

market leader in denim product.
Induction training is very useful for identified the different department,
norms and concision of company.
It also helps to identify the culture, attitude, structure, different process
of the organization. Main aim of the INDUCTION TRAINING is to
create general awareness about the company and improve skill,
knowledge and working speed.
Generally acceding to me induction training is essential to make a good
impression to the new employees who can help to increase the values of
organization and Arvind mill obviously do that.

~ 97 ~

 Bibliography

www.Arvind.com
www.Wikipedia.com

~ 98 ~