CHAPTER 1

INTRODUCTION

INTRODUCTION

The Indian textile industry is one of the largest in the world with a massive raw material and
textiles manufacturing base. Our economy is largely dependent on the textile manufacturing and
trade in addition to other major industries. About 27% of the foreign exchange earnings are on
account of export of textiles and clothing alone. The textiles and clothing sector contributes
about 14% to the industrial production and 3% to the gross domestic product of the country.
Around 8% of the total excise revenue collection is contributed by the textile industry. So much
so, the textile industry accounts for as large as 21% of the total employment generated in the
economy. Around 35 million people are directly employed in the textile manufacturing
activities. Indirect employment including the manpower engaged in agricultural based raw-
material production like cotton and related trade and handling could be stated to be around
another 60 million.
A textile is the largest single industry in India (and amongst the biggest in the world), accounting
for about 20% of the total industrial production. It provides direct employment to around 20
million people. Textile and clothing exports account for one-third of the total value of exports
from the country. There are 1,227 textile mills with a spinning capacity of about 29 million
spindles. While yarn is mostly produced in the mills, fabrics are produced in the power loom and
handloom sectors as well. The Indian textile industry continues to be predominantly based on
cotton, with about 65% of raw materials consumed being cotton. The yearly output of cotton
cloth was about 12.8 billion m (about 42 billion ft). The manufacture of jute products (1.1
million metric tons) ranks next in importance to cotton weaving. Textile is one of India’s oldest
industries and has a formidable presence in the national economy inasmuch as it contributes to
about 14 per cent of manufacturing value-addition, accounts for around one-third of our gross
export earnings and provides gainful employment to millions of people. They include cotton and
jute growers, artisans and weavers who are engaged in the organized as well as decentralized and
household sectors spread across the entire country.
• In 2018-19, export of manmade staple fibre stood at US$ 572 million; manmade yarn, fabrics
and made-ups exports to US$ 4.9 billion and exports of readymade garments of manmade
fibres reached US$ 3.85 billion in the same period.
• During April-November 2019, export of manmade staple fibre stood at US$ 353.99 million;
manmade yarn, fabrics and made-ups exports to US$ 3.17 billion and exports of readymade
garments of manmade fibres reached US$ 2.32 billion in the same period.
• The textile and apparel exports stood at US$ 36.62 billion in 2018-19.
• India is second largest world producer of polyester and viscose, but India is ranked sixth in the
exports of Man-Made Fibre (MMF) textiles.

GLOBAL TEXTILE INDUSTRY

 The global textile industry impacts nearly every human being on the planet. The industry is
currently worth nearly US $3 trillion and includes the production, refinement, and sale of
both synthetic and natural fibers used in thousands of industries. The global textile market is
broken into a number of sectors shown in the chart below.
As you can see, the textile industry encompasses a broad and diverse range of products with
an even wider range of applications. That diversity is one of many factors that makes the
textile industry one of the most vital to the economic well-being of people all over the world.
The companies field of activity includes the full range of Customs Clearing and forwarding
services – Import and Export . In order to provide excellent services to all our clients, we
constantly keep enhancing Quality, Innovation and Flexibility .

In this regard, we would like to express our immense interest to do business with your Company
for the business, hoping this will be the beginning of a strong, beneficial and longterm business
relationship between our organizations .
1.1 ABOUT PAS LOGISTICS

The Company had 15 years of experience in this field and it has been 5 years since we started
our company. Founded in 2015 Headquartered in Chennai, India.

Premier Logistics services provider in the region.A holding company for PAS Logistics, and
PAS Transport.

In 2017 PAS Logistics generated US $ 25 million revenue with Sea Clearance volumes at 5.000
TEU’s.

PAS Logistics introduce ourselves as one of the leading Clearing & Forwarding Agent in
Chennai well known for efficiency and economy . We are pleased to develop the business
relationship with our entire Client & we are capable of providing complete logistics solutions.
MISSION
To promote teamwork & create a work environment encouraging the workforce to continuously
strive for quality & excellence, providing high-quality service to customers under one roof.

VISION
We aim to emerge as the torchbearer in the logisticsindustry. Our vision is to establish OM
Logistics as the most grounded worldwide logistics & supply chain management company as a
trusted partner to all our clients.
We envision to surpass our success & customer loyalty level year by year.
VALUES
PAS Logistics has always been values-driven. Our shared values guide our actions that help us
make a difference.

These values continue to direct the growth and business of our company.

Entrepreneurial Soul: We embrace innovations when it comes to technology. We know how to

think creatively as entrepreneurs for operational excellence to create profitable growth and value
for our stakeholders.
Air Freight

When time counts, you can count on PAS Logistics to get your shipment there on time. Our team
of experts can arrange air service anywhere in the world and can offer 24 hour service.
1.2 STRUCTURE OF THE INDIAN TEXTILE INDUSTRY
The term industry is normally used to mean a group of enterprises producing products that are
close substitutes of each other. By this definition, however, it is very difficult to identify the
constituents of the textile industry. All units producing yam and fabric cannot be said to
constitute the textile industry for the simple reason that the products of these units are not
homogeneous and therefore cannot be close substitutes of one another. Ideally, the textile
industry should be defined as a group of enterprises producing products falling in relatively non-
overlapping and homogeneous product market segments.

Thus, all the units producing a specified product constitute an industry. Collection of all such
units can then be defined as the textile industry. In order to apply the above concept in practice,
the product market segments are defined as the segments in terms of the fibre used in producing
the product and the possible end use, though not completely specified as implied. For instance,
the yam could be used in weaving cloth, producing knitwear, or as sewing thread in producing
garments.

Thus, the textile industry is defined as units producing: 1. yarn from cotton, jute, silk, wool,
synthetic fibers and synthetic filaments;

2. fabrics from cotton, jute, silk, wool, synthetic fibers and filaments; and,

3. garments from any of the fabrics made from cotton, jute, silk, wool, synthetic fibers,
filaments and leather.

In the present study, the attention is confined to a subclass of these units and the attention is
focused on units producing yam and fabrics from cotton, synthetic fibers and filaments. Such
units, in India, collectively form the Indian cotton textile industry.
The units in cotton textile industry can. be segmented according to the technology and the degree
of integration achieved. The term structure of the industry refers to a number of units in each
geographical segment and the installed capacity in each of the segment.
segment Degree of Segment
number Integration Type of technology referred to as
Ring spinning or rotor
1 only spinning spinning spinning sector
Hand spun without use of
2 only spinning power Khadi
3 only weaving hand weaving by handloom power loom
sector

The forces that shape the structure of the industry are:

1. Government policies influencing the functioning of this industry.

2. Consumer demand.

3. New entrants in the industry.

4. Suppliers and the influence they exercise over the industry. Suppliers cover various inputs
such as raw materials, technology, labor, finance etc. and

5. Emerging substitutes for the products by an industry. Although, the forces are listed
separately, they are interactive in their character. The government, by adopting suitable
policies, can alter any of the forces listed above and thus alter the industry structure.

1.3 MINISTRY OF TEXTILES.

The Ministry of Textiles is an Indian government national agency responsible for the
formulation of policy, planning, development, export promotion and regulation of the textile
industry in India. This includes all natural, artificial, and cellulosic fibers that go into the making
of textiles, clothing and Handicrafts.
The Textiles Committee has been established under the Textiles Committee Act, 1963, (No. 41
of 1963), of the Indian Parliament. It replaced the erstwhile Cotton Textiles Fund Committee,
constituted under the Cotton Textiles Fund Ordinance, which was promulgated by section 72 of
the Government of India Act, 1935. This ordinance provided for the establishment of the Cotton
Textiles Fund from the levy of a cess of three per cent on the exmill prices of cloth and yarn
exported and for the setting up of the Cotton Textiles Fund Committee to administer the Fund.
The Fund was to be used for supervising the export of cloth and yarn, and increasing the same of
cloth and yarn abroad and generally for the development of technical education and research
relating to the cotton textile industry.

1.4 SCOPE OF THE STUDY.

Having determined the importance of the textile industry in the Indian industry, we also realize that
exports are essential for the sustenance of this industry. As we shall elaborate on later. It is in this
context that it is extremely important for us to search out new markets where we can have a
competitive edge. Thus, in this report we try to analyze the world- nations as potential markets where
we can find a niche for ourselves. The scope of this project thus includes an in
- depth view of the prevailing conditions in each of the world - nations that India export textile to.
This includes an analysis of current market trends in consumption, consumer preferences and
competitive environment. The attempt has also been the world nations-made to analyze the
opportunities and threats thus afforded by each of these markets for Indian textile exports.

1.5 LIMITATION OF THE STUDY.

Various hindrances occurred while carrying out the research. They have acted as limitation of
the study and a few of them are:

1. Lack of time and other resources as it was not possible to conduct survey at large level. 2.
While collection of the data many officers were unwilling to respond with correct information.
Respondents were having a feeling of wastage of time for them.
3. Data collection was difficult because only secondary was available, was not able to conduct
surveys and questionnaire.
4. Financial data of companies were not available at the time of the study.
5. High cost.
Reliability of data and validity of data
 CHAPTER 2

REVIEW OF THE LITERATURE

Chandra (1998) in his article wrote on challenges ahead of Indian textile and
clothing industry in post quota regime. It put special emphasis on production
capabilities and efficiencies as most essential elements to fight global
competition. It suggests various strategic decisions Indian textile manufacturers
have to make to survive the competitiveness in post quota regime.

Simpson and Shetty (2001) did a vast study on India’s textile industry. The
purpose of study is to analyze India’s textile and apparel industry, its structural
• problems, market access barriers, and measurements taken by government of
India to enhance the industry’s competitiveness in the post – Multifiber
Agreement (MFA) era. The study also assesses India’s textile and apparel
market
potential and trade and investment opportunities for U.S. firms as India steps
into
a more free and transparent trade regime. For the purpose of study exploratory
study is done in which in-depth interviews are done with various government
• officials in Textile Export Promotion Council, Ministry of . 101 textile, Cotton
Council of India, Apparel Export Promotion Council (AEPC), Federation of
Karnataka Chamber of Commerce and Industry, Handloom Export Promotion
Council, Madras Chamber of Commerce and Industry, The South India Textile
and Research Association, and almost all top executives of India’s large textile
mills.

Verma (2002) did a comprehensive study with objective to evaluate the export
competitiveness of Indian textile and clothing sector. Because Indian textile and
clothing sector is predominantly cotton based, the study is focused on cotton
textile and clothing and look at the entire value chain from fiber to garment and
retail distribution. The scope of study covers the products in Indian export
basket
which have shown a promising growth in value. The Study concludes that
Indian
exports to US and EU are export competitive as a whole. Sector wise analysis
of
export performance of Indian textile and clothing sectors to US and EU reveal
•
that so far apparel or clothing and made-up is concerned; quota is the major
constraint in the growth, while it is not true in case of yarn exports. Indian
textile
and clothing sector has tremendous potential and only a portion of which is
explored till now and this shortcoming is due to policy constraints.
 Meenakshi (2003) did a comprehensive study on the opportunities that would
be
provided by WTO to Indian Textile industry. This paper gives a lot emphasis on
new capacity installation to take the benefits to the fullest extent in India has to
be a true gainer in competition to other nations. Since India’s own consumption
per capita is
also on the rise with the rise of income and consumption habits, the profit margins
• available to Indian textile and clothing producers will be more.
But in export market, the prices will be driven by international factors and profits
will be under pressure. So the exporters might have to go for strategy of partial
exports and partial domestic sale.

• Pandey (2003) in his article expected that Indian textile exporter would be
benefited with quota elimination. It discusses on various sectors of textile and
clothing. Also he expects that hosiery industry will be one of the gainer and small
scale exporters will be more competitive due to small size and controlled cost and
lower overheads.

• Vivek (2004) in his article had said that JC Penny a leading retail chain of US
looks India for sourcing its garments in woven and hosiery. He is of opinion that
India will be fulfilling its major need of Hosiery and woven garments in cotton
while China will be good for synthetic fabrics and its garments.

Trivedi (2005) in his article concluded that the textile is one sector where India has
high ambitions and can achieve robust growth through moderate human skills. India
has skilled labour and does better in this sector as compared to others. This will also
Increase
• the employment and the social structure will be better off.

Thomas (2005) in his article wrote on why in the competitive scenario wholesalers
like Nike are shy from keeping long inventories and stocks. So pressure is on
garment . 104

• companies to deliver the goods in time. India has bottleneck in infrastructure,

which hinders the time receipt of raw material and delivery of finished goods. This
would cause rapid airfreight and would squeeze the margins. Government has to
invest heavily in Infrastructure to keep the pace of growth of garment industry
intact and take the benefits to fullest extent.
Chaudhry (2006) did a very comprehensive study on the productivity of Indian
Textile sector and various related sectors. Very technical formulas are used to
analyze the competitiveness of Indian Textile Industry.

Bedi (2009) in his article had prepared detailed report on Indian textile industry
covering various sector of textile industry. This is one of the most comprehensive
reports coveting all aspects of textile industry, performance and hindrances in the
growth of it.
 CHAPTER 3

OBJECTIVES OF THE STUDY

To identify critical issues in the textile sector of India (production, processing,

export, trade and regulations) from the perspective of sustainable development and
poverty
• eradication.

To assess social, economic and ecological conditions under which global

textile production and trade takes place and the impacts of the industry on
sustainable
• development.

To assess the key social, economic and environmental issues throughout the textile
value chain starting from India and up to the consumers both local as well as
international.

•
To analyze the present roles and responsibility of global textile market players in
India, including identification of key influence points for responsible practices.

To study the export marketing trend of textile product.

•
To study overall growth of India’s textile export of previous years.

• To examine the problems of textile export.

•
To study the export procedure of textile.
•
•
To study in detail the history of textile.
•
• To study in detail the statistics of textile production and export.
 CHAPTER 4

RESEARCH METHODOLOGY

4.1 RESEARCH DESIGN

Research Methodology is the backbone of the project. It includes Research design, Data
collection, sampling design and Data analysis tool and techniques are used for studying the
research problem. Research methodology is actual procedure of doing the project and provides
the platform for solving the research problems.

Research comprises defining and refining problem, formulating hypothesis or suggesting solution;
collection, organizing and evaluating data; making deduction and reaching the conclusion to
determine whether the fit for formulating hypothesis. The purpose to research is to discover answers
to questions through the application of scientific procedures. The aim of the research is to find out
the truth which is hidden and which has not been discovered as yet.

Research is a process of collecting, analyzing and interpreting information to answer the

Questions. Research comprises “creative and systematic word undertaken to increase the stock
of knowledge, including knowledge of humans, culture and society, and the use of this stock of
knowledge to devise new applications.” A research project may also be an expansion on past
work in the field. Research projects can be used to develop further knowledge on a topic, or in
the example of a school research project, they can be used to further a student’s research process
to prepare them for future jobs or reports. The primary purposes of basic research are
documentation, discovery, interpretation or the research and development(R&D) of methods and
systems for the advancement of human knowledge.

COLLECTION OF DATA:

There are several ways of collecting the appropriate data which differ considerably in context of
money, cost, time and other sources at the disposable of the researcher. There are two types of
data:
•Primary data
•Secondary data
PRIMARY DATA
Primary data are those which are collected a fresh and for the first time and thus happen to be
original in character.

•Observation

•Direct communication

SECONDARY DATA
Secondary data are those which have already been collected by someone else and have already
been passed through statistical process. In this project report secondary data is use

Sales report
Websites
 CHAPTER 5
TOPIC RELATED CHAPTERS

5 TEXTILE INDUSTRY

5.1 HISTORY of TEXTILE INDUSTRY

The archaeological surveys and studies have indicated that the people of Harrapan civilization were
familiar with weaving and the spinning of cotton for as long as four thousand years ago. Reference to
weaving and spinning materials is found in the Vedic Literature. There was textile trade in India
during the early centuries. A block printed and resist-dyed fabric, whose origin is from Gujarat was
found in the tombs of Fostat, Egypt. This proves that Indian export of cotton textiles to Egypt or the
Nile Civilization in medieval times were to a large extent. Large quantity of north Indian silk were
[5]
traded through the silk route in China to the western countries. The Indian silks were often
exchanged with the western countries for their spices in the barter system. During the late 17th and
18th century there were large export of the Indian cotton to the western countries to meet the need of
the European industries during industrial revolution, apart from the domestic requirement at the
Indian Ordnance Factories.

The Textile industry was the major component of economic income in India before the English
colonies. "The hand-loom and the spinning-wheel, producing their regular myriads of spinners
and weavers, were the pivots of the structure of that society," described by Karl Marx Due to the
abolishment of slavery in the Americas, England began to search for another source of cheap
cotton, and saw India as a ripe place for this. They convinced many farmers to switch from
subsistence farming to producing and exporting huge amounts of cotton, after a long period of
protectionism over the English textile industry. Eventually, through colonization, the traditional
method of artisan Textile production was destroyed, and replaced with large scale factory
production.

5.2 TECHNICAL PARAMETERS FOR TEXTILE INDUSTRY

Quality is of prime importance for every industry or business, to get increased sales and better name
amongst Consumers & fellow Companies. Generally Quality control Standards for export are set
strictly, as this business also holds the prestige of the country, whose company is doing the export.
Quality standards like ASTM, AATCC, BS, DIN and JIS & ISO must be recognized and agreed by
all levels of management. However quality expectations for exports are related to the type of
customer segments and the retail outlets. For textile and apparel industry product quality is
calculated in terms of quality and standard of fibres, yarns, fabric construction, colours fastness,
Surface designs and the final finished garments products. The present paper was aimed at
investigating the important testing parameters for the textile products and the steps to be taken to
improve these testing parameters.
 Different testing parameters:

a. Tensile Strength

b. Tear Strength

c. Seam Properties

d. Pilling

e. Colourfastness to light

5.2.1Tensile Strength

It is the strength of the fabric which denotes the breaking force required to rupture the fabric.
A tensile tester is used to determine the strength in which central part of the width of the
specimen is gripped in the clamps. It determines the effective strength of the specified width
with the assistance of adjacent yarns. Fabric assistance depends on type of fabric &
construction variables.

5.2.2 Tearing Strength

The tear force required to propagate a single-rip tear of defined length from a cut in the
fabric when a sudden force is applied. This test is performed by measuring the work done in
tearing the fabric through a fixed distance on the tearing strength tester. This test is mainly
applicable for woven fabrics not for knitted fabrics.

5.2.3 Seam Properties

To determine the seam maximum force of sewn seams when the force is applied
perpendicularly to the seam. The test applies to the standard seam applied to fabric samples
or the Production seam as received in finished garments. The major contributors to seam
strength are fabric type and weight, thread type and size, stitch and seam construction,
stitches per inch and stitch balance. Seam Strength in woven and knit is same as fabric
breaking and bursting strength respectively.
5.2.5 Colorfastness to Light:

It is the resistance to degradation of fabric dyes and prints due to light is an important
requirement of a garment because without such resistance, the garment may change colour and
such colour may not be acceptable to a consumer from an aesthetic point of view. The samples
are placed in special holders and exposed to artificial daylight produced by a special light source
which mimics the action of sunlight, but in a more intense manner so as to speed up the fading
effect.

A standard (blue wool reference) is also exposed with the sample and the colourfastness is being
assessed by comparison of the colour change of the exposed portion to the unexposed portion of
the test specimen using scale or blue references used.
 CHAPTER 6
TEXTILE INDUSTRIES IN INDIA

6.1 TEXTILE INDUSTRIES IN INDIA

6.1.1 Maharashtra
It is the leading producer of cotton textile in India. Mumbai is called as ‘Cottonpolis of
India’. The textile industry has also spread to Sholapur, Kolhapur, Pune, Jalgaon, Akola,
Sangali, Nagpur, Satara, Wardha, Aurangabad and Amravati.

6.1.2. Gujarat
It is the second largest producer of cotton textiles after Maharashtra. Ahmedabad is called
‘Manchester of India & Boston of East’ and it is also second largest centre of cotton textile
industry after Mumbai. The other important centres are- Surat, Vadodara, Bharauch,
Bhavnagar, Nadiad, Porbandar, Rajkot, Navsari, mauri and Viramgam.

6.1.3. Tamil Nadu

Chennai, Tirunelveli, Madurai, Tuticorin, Salem, Virudhnagar and Polachi are the major cotton
textile centres. Coimbatore is called ‘Manchester of South India’ because it is the most
important cotton textile centre.

6.1.4. Uttar Pradesh

Kanpur, Etawah, Modinagar, Moradabad, Bareilly, Hathras, Agra, Meerut and Varanasi are the
major cotton textile producing centres in the state. Kanpur is called ‘Manchester of Uttar
Pradesh’.

6.1.5. Karnataka
Bangalore, Belgaum, Mangalore, Chitradurga, Galbarga and Mysore are the major cotton textile
producing centres in the state.

6.1.6. Madhya Pradesh

Indore, Gwalior, Mandasaur, Dewas, Ujjain, Nagda, Bhopal, Jabalpur and Ratlam are the major
cotton textile producing centres in the state.

6.1.7. Rajasthan
Kota, Jaipur, Sriganganagar, Bhilwara, Bhavanimandi, Udaipur and Kishangunj are the major
cotton textile producing centres in the state.

6.1.8. West Bengal

The major cotton textile producing centres in the state are Kolkata, Howrah, Serampore,
Shyamanagar, Saikia, Murshidabad, Hugli and Panihar.
6.2 Top 10 Textile Companies in India 2020

6.2.1. Arvind Ltd

• Revenue: Rs 7,229 Cr
• Employees: 42,000
• Debt: Rs2,700 Cr
• Processing Capacity: 240 MMPA
Arvind Ltd is one of the largest Textile Companies in India. Today, the fabric made by
Arvind can go around the earth 6 times over. 2 pieces of apparel are sold by an Arvind
managed brand, every second in India. The Company is headquartered in Ahmedabad,
Gujarat. It is Largest among the top 10 textile companies in india.

• Market Cap: 1,315 Cr.

• Stock P/E: 5.93
• Dividend Yield: 3.93 %
• ROCE: 8.95 %
• ROE: 7.70 %
• Sales Growth (3Yrs): -3.75 %
Arvind owns 22 global patents for environmental solutions, and is the largest fire protection
fabric producer in the country; Also managing 15 global apparel brands of the likes of Tommy
Hilfiger, US Polo, CK, GAP, Nautica, and Sephora.
42,000 employees across verticals ranging from retail to advanced materials, environmental
and social solutions to real estate, apparel to agriculture. It is No 1 among the top 10 textile
companies in India based on turnover.

6.2.2 Vardhman Textiles Ltd

Vardhaman Textiles is the Second largest Textile Companies in India With more than five
decades of presence, Vardhman is today among the leading textile conglomerates in the
country. Beginning humbly in the year 1965, Vardhman Group has evolved over the years into
a modern-day textile major under the dynamic leadership of its chairman, Mr. S. P. Oswal.
Vardhman Textiles Limited today stands as an epitome of perpetual business growth and rich
industry experience.
• Revenue: Rs 6,706 Cr
• Processing Capacity: 140 MMPA
• Employees: 22939 (Including contractual manpower)
• Debt: Rs 1,975 Cr
Engaged in the business of manufacturing of Yarn, Fabric, Acrylic Fibre, Garments, Sewing
Threads and Alloy Steel, the Group has over the years developed as a business conglomerate
with presence in India and in 75 countries across the globe. Vardhman is one of India’s largest
textile manufacturers, with leading market share and a sustainable business model. It is Second
among the top 10 textile companies in india • Market Cap: 5,160 Cr.
• Stock P/E: 7.50
• Dividend Yield: 1.67 %
• ROCE: 10.90 %
6.2.3. Welspun India Ltd

Welspun India is the third Largest Textile Companies in India in terms of sales. Part of USD 2.7
billion Welspun Group, Welspun India Ltd. is a global leader in home textiles, supplying to 17 of
the top 30 global retailers. The Companies manufacturing facilities, located in India, are equipped
to deliver high-quality products, benchmarked to international standards.
• Revenue: Rs 6,828 Cr
• Employees: 22,194 permanent employees
• Debt: Rs 3,310 Cr
Presently over 70% of the business for advanced textiles comes from exports. So it Third among
the top 10 textile companies in india based on turnover.
• Market Cap: 5,265 Cr.
• Stock P/E: 10.82
• Dividend Yield: 0.57 %
• ROCE: 11.83 %
• ROE: 14.49 %
• Sales Growth (3Yrs): 3.28 %

6.2,4. Raymond Ltd

Raymond is a diversified group with majority business interests in Textile & Apparel sectors as
well as presence across diverse segments such as FMCG, Engineering, and Prophylactics in
national and international markets. It is the Fourth-largest among top 10 textile companies in
india
• Revenue: Rs 6,767 Cr
• Employees: 7087
• Debt: Rs 2,468 Cr
• Processing Capacity: 110 MMPA
Being a vertically and horizontally integrated manufacturer of Textiles, Raymond produces
‘The finest fabric in the world’. With over 1100 exclusive stores spread across 380+ cities and
an expansive network of over 20,000 points-of-sale in India, Raymond and its brands are also
available in tier IV & V cities.
• Market Cap: 3,443 Cr
• Stock P/E: 22.22
• Dividend Yield: 0.53 %
• ROCE: 11.60 %
• ROE: 9.10 %
• Sales Growth (3Yrs): 8.34 %
Raymond has also been a leading player in Shirting fabrics and is the No.1 brand in the OTC
space. A formidable player in the Denim space, Raymond is also the top producer & preferred
supplier of high-quality Ring Denim to world’s leading Jeanswear brands. Raymond Group also
has an extensive presence in the B2B space, through its garment business. Raymond’s state of
the art & wholly-owned subsidiaries such as Silver Spark Apparel Ltd, Celebrations Apparel Ltd
&Everblue Apparel Ltd by crafts suits, trousers, shirts
& Jeans for leading fashion labels across the world and is the only manufacturer of Full
canvas premium Jackets in India.

6.2.5. Trident Ltd

Trident Limited is the flagship company of the US$ 1 billion Indian business conglomerate and
global player, Trident Group, headquartered in Ludhiana. Beginning humbly in the year 1990,
Trident has evolved over the years into one of the world’s largest integrated home textile
manufacturer under the visionary leadership of its founder and Group Chairman Mr Rajinder
Gupta.

• Revenue: Rs 5,394 Cr
• Employees: 13,816
• Debt: Rs 2,436 Cr

The Company is engaged in the business of manufacturing wide variety of yarn, bed, bath
linen, paper, chemicals and captive power. Trident’s state-of-the-art manufacturing facilities
are located in Barnala (Punjab) and Budni (Madhya Pradesh). The Company is one of the
largest exporters of home textile products with significant market share.
• Market Cap: 2,979 Cr
• Stock P/E: 6.83
• Dividend Yield: 5.13 %
• ROCE: 12.05 %
• ROE: 12.92 %
• Sales Growth (3Yrs): 12.51 %

6.2.6. K P R Mill Ltd

KPR Mill Limited is one of the largest vertically integrated Apparel manufacturing companies in
India producing Yarn, Knitted Grey & Dyed Fabric and Readymade Garments.
It is Sixth in the list of top 10 textile companies in india
• Revenue: Rs 3,384 Cr
• Employees: 13,424
• Debt: Rs 856 Cr

The Yarn division has 3,53,616 spindles with a production capacity of 90,000 MT (Capacity
Doubling is underway) per annum. With the most modern machinery of International
Standards, KPR produces Combed, Grey Melange , Carded & Compact yarn meant for
apparels of world’s Leading Brands.
• Market Cap: 4,015 Cr
• Stock P/E: 11.61
• Dividend Yield: 0.14 %
• ECONOMIC IMPACT
•
• It is estimated anywhere between 20 million and 60 million people are employed in
the textile industry worldwide. Employment in the garment industry is particularly
important in developing economies such as India, Pakistan, and Vietnam. The industry
accounts for approximately 2% of global Gross Domestic Product and accounts for an even
greater portion of GDP for the world's leading producers and exporters of textiles and
garments.
•
•
•
•
• GLOBAL TEXTILE MARKET
•
• China is the world's leading producer and exporter of both raw textiles and
garments. The United States is the leading producer and exporter of raw cotton, while
also taking the prize for the top importer of raw textiles and garments. The chart below
shows the global import and export market shares of the top 7 countries in each
category.
• There are many developing countries ready to crack or climb this list in the near
future as their investment into the textile or garment industry increases. Countries such
as Pakistan, Sri Lanka, Samoa, and a number of South American countries have seen
considerable growth in their textile markets in recent years. As China moves towards a
service-based economy, and labor prices continue to rise, it is logical to assume many
garment producers will move away from China and into developing markets where labor
is cheap and readily available.
• GOVERNMENT INICIATIVES TAKEN FOR TEXTILE
INDUSTRY 6.3 EXPORT PROMOTION COUNCILS
•
• 6.3.1. Apparel Export Promotion Council
•
•
•
•
•
•
•
•
•
•
• “Incorporated in1978, AEPC is the official body of apparel exporters in India that
provides invaluable assistance to Indian exporters as well as importers/international buyers
who choose
•
• India as their preferred sourcing destination for garments. A quick look at how the
Apparel Export Promotion Council (AEPC) has been the moving force behind lot of
achievements: From one office in 1978, it has over 12 offices in just a span of 30 years.
•
• From just being a quota monitoring entity, AEPC is today a powerful body for the
promotion and facilitation of garment manufacturing and their exports. For Indian exporters,
AEPC is quite literally a one-stop shop for information advise technical guidance workforce
and market intelligence. Members have access to updated trade statistics potential markets
information on international fairs and assistance in participating at these fairs. It also plays a
large role in identifying new markets and leading trade delegations to various countries.
•
•
• 6.3.2. The Cotton Textiles Export Promotion Council
•
•
•
•
•
•
•• TEXPROCIL - The international face of Indian Cotton Textiles.
• Since its inception in 1954, as an autonomous, nonprofit body dedicated to promotion
of exports, The, popularly known as TEXPROCIL has been the international face of cotton
textiles from India facilitating exports world wide. Texprocil has a membership of around
3,000 companies spread across major textile clusters in India. Its members are well
established manufacturers and exporters of cotton textile products like Cotton, Yarns, Fabrics
and Home Textiles, showcasing a dazzling array of products across the value chain. The
Council connects international buyers with appropriate suppliers and facilitates interaction
that enables them to
• source their specific needs. It also provides information on India's competitive
advantages, its export environment and updated position in the global market place.
•
• Texprocil provides regular updates on international product trends, trade related
issues, advances in technology and the latest developments in the industry, as well as
existing and emerging markets.
•
•
• It also undertakes regular market research, organises participation in international
trade fairs, holds its own Buyer Seller Meets and facilitates international trade missions
in India and other countries.
•
 • The Council enables better understanding of Indian and International trade
policies, emerging trade issues, social and environmental compliances, quality
management and sustainable business practice.
•
•
• 6.3.3.The Synthetic & Rayon Textiles Export Promotion Council
•
•
•
•
•
•
•
• The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC), set up in
1954,
• is one of6 the oldest Export Promotion Councils in India.
• The Council has played a transforming role over the years, inculcating export
culture and promoting exports of Indian man-made fibre and textiles. Exports of these
items, which were negligible in the 1960s, have grown substantially to touch US$6.16
•billion during 2013-14.
•• India exports to nearly 140 countries at present.
• The Council envisages exports to the tune of Rs. 55,000 crores (US$ 9 billion) by
the end of the 12th Five Year Plan (2016-17). The MMF textiles industry contributes
17% of the total Indian textile exports and this share is growing. India is the sixth largest
•exporter of MMF textiles in the world.
•• Vibrant Indian MMF textile industry
• The Indian MMF industry is modern, vibrant and growing. India is the second
leading producer of cellulosic fibre/yarn and the third largest producer of synthetic
fibre/yarn in the world. At present India produces 1263 million kgs of man-made fibre,
2655 million kgs of yarn and 27889 million sqmeters of fabrics annually.
•
• Products under the purview of Council The products under the purview of the
Council are MMF and blended textile items including fibre, yarn, fabrics, made-ups,
accessories, home textiles, technical textiles etc.
SUBSIDY FOR TEXTILE UNITS
• A subsidy of Rs.3 per unit will be provided to co-operative spinning mills for three
years. In these three years, the units are required to set up non- conventional power
projects to satisfy their power needs. The restriction of 1MW is removed from the net
metering scheme. The subsidy fo Rs.3 per unit will be renewed every year and will be
reduced to maintain the overall annual subsidy of state budget within Rs.150 crores.
• A subsidy amount of Rs.2 per unit will be provided to powerlooms using power above
200 HP. The subsidy is given to powerloom units using less than 27 HP, 27 to 200 HP
and more than 200 HP, will also be applicable to garment, knitting and hosiery units.
• A subsidy amount of Rs.2 per unit will be provided to spinning mills except for
processing units, co-operative spinning mills and all other textile units using more
than 107 HP power.
• The textile industry is one of the oldest in India and is intrinsically linked to a range of
traditions and cultures that is a reflection of the diversity that prevails in our country.
The industry has a range of segments under its umbrella – hand-woven, an unorganised
segment on one end, to capital-intensive on the other. One of India’s biggest strengths
lies in it being the largest producer of jute and cotton and the second largest producer of
silk globally.
• One of the segments of this industry that has received significant attention across the
world is technical textiles. Technical or engineered textiles are defined as products that
are used for functional purposes. These textiles have applications in multiple areas of
economic activity, such as aerospace, shipping, sports, agriculture, defense and health
care.

• The technical textiles industry is import-intensive. In the last few years, the industry has
witnessed a rise in imports - it stood at USD 1.4 Billion in Financial Year (FY) 2014-15
with a Compound Annual Growth Rate (CAGR) of 8% since FY 2007-08. Though the
country currently spends a significant amount on imports, the dependence can eventually
be reduced by further investing in technology-heavy products. This presents a huge
scope for import substitution.
• Among all categories, Packtech forms the largest segment and holds 42% of the market
share. This is followed by Indutech, Mobilitech and Hometech. With regard to growth,
Geotech is predicted to grow the fastest at a CAGR of 30%. Some of the examples of
high-growth potential technical textiles include shade nets, crop covers, baby diapers,
sanitary napkins and surgical disposables, among others.
 CHAPTER 7
EXPORT PROCEDURE AND IMPORT PROCEDURE

EXPORT PROCEDURE
The export of the goods is subject to certain legal and procedural formalities before being
permitted clearance by Customs. These would include the submission of prescribed documents
and adherence to the laid down procedures before an order can be given by the competent officer
to clear the goods for the intended purpose.
 1. REGISTRATION:
The exporters have to obtain PAN based Business Identification Number (BIN) from the
Directorate General of Foreign Trade prior to filing of shipping bill for clearance of export
goods. Under the EDI System, PAN based BIN is received by the Customs System from the
DGFT online. The exporters are also required to register authorized foreign exchange dealer
code (through which export proceeds are expected to be realized) and open a current account in
the designated bank for credit of any drawback incentive. Whenever a new Airline, Shipping
Line, Steamer Agent, port or airport comes into operation, they are required to be registered into
the Customs System. Whenever, electronic processing of shipping bill etc. is held up on account
of non-registration of these entities, the same is to be brought to the notice of Assistant/Deputy
Commissioner in-charge of EDI System for registering the new entity.

REGISTRATION IN CASE OF EXPORT UNDER EXPORT PROMOTION

SCHEMES

All the exporters intending to export under the export promotion scheme need to get their
Licenses/DEEC book etc. registered at the Customs Station. For such registration, original
Documents are required.

2. PROCESSING OF SHIPPING BILL – NON-EDI:

In case of Non-EDI, the shipping bills or bills of export are required to be filled in the format as
prescribed in the Shipping Bill and Bill of Export (Form) Regulations, 1991. An exporter need to
apply different forms of shipping bill/ bill of export for export of duty free goods, export of dutiable
goods and export under drawback etc. Shipping Bills are required to be filed along with all original
documents such as invoice, packing list etc. The assessing officer in the Export Department checks
the value of the goods, classification under Drawback schedule in case of Drawback Shipping Bills,
rate of duty where applicable, exportability of goods under EXIM policy and other laws in force. The
DEEC/DEPB Shipping bills are processed in the DEEC group. If the assessing officer has any doubts
regarding value, description of goods, he may call for samples of the goods from the docks. He may
also call for any other information required by him for processing of hipping bill. He may assess the
shipping bill after visual inspection of the sample or may send it for test and pass the shipping bill
provisionally. Once, the shipping bill is passed by the Export Department, the exporter or his agent
presents the goods to the shed appraiser in docks for examination. If the description and other
particulars of the goods are found to be as declared, the shed appraiser gives a ‘let export’ order, after
which the exporter may contact the preventive superintendent for supervising the loading of goods
on to the vessel.
3. EXPORT DOCUMENTATION:
In case, the examining staffs in the docks find some discrepancy in the goods, they may mark
the shipping bill back to export department/DEEC group with their observations as well as
sample of goods, if needed. The export department re-considers the case and decides whether
export can be allowed, or amendment in description, value etc. is required before export and
whether any other action is required to be taken under the Customs Act, 1962 for miss
declaration of description of value etc.

4. PROCESSING OF SHIPPING BILL:

Under EDI System, declarations in prescribed format are to be filed through the Service Centers
of Customs. A checklist is generated for verification of data by the exporter/CHA. After
verification, the data is submitted to the System by the Service Centre operator and the System
generates a Shipping Bill Number, which is endorsed on the printed checklist and returned to the
exporter/CHA. For export items which are subject to export duty, the TR-6 challans for cess is
printed and given by the Service Centre to the exporter/CHA immediately after submission of
shipping bill. The cess can be paid on the strength of the challan at the designated bank. No copy
of shipping bill is made available to exporter/CHA at this stage.

5. OCTROI PROCEDURE, QUOTA ALLOCATION AND OTHER

CERTIFICATION FOR EXPORT GOODS:

The quota allocation label is required to be pasted on the export invoice. The allocation number
of AEPC is to be entered in the system at the time of shipping bill entry. The quota certification
of export invoice needs to be submitted to Customs along-with other original documents at the
time of examination of the export cargo. For determining the validity date of the quota, the
relevant date needs to be the date on which the full consignment is presented to the Customs for
examination and duly recorded in the Computer System. Since the shipping bill is generated only
after the 'let export order' is given by Customs, the exporter may make use of export invoice or
such other document as required by the OCTROI authorities for the purpose of OCTROI
exemption

6. ARRIVAL OF GOODS AT DOCKS:

The goods brought for the purpose of examination and subsequent 'let export' is allowed entry to
the Dock on the strength of the checklist and other declarations filed by the exporter in the
Service Centre. The Port authorities have to endorse the quantity of goods actually received
export documentation on the reverse of the Check List.

7. SYSTEM APPRAISAL OF SHIPPING BILLS:

 In many cases the Shipping Bill is processed by the system on the basis of declarations made by
the exporters without any human intervention. In other cases where the Shipping Bill is
processed on screen by the Customs Officer, he may call for the samples, if required for
confirming the declared value or for checking classification under the Drawback Schedule. He
may also give any special instructions for examination of goods, if felt necessary.
8. STATUS OF SHIPPING BILL:

The exporter/CHA can check up with the query counter at the Service Centre whether the
Shipping Bill submitted by them in the system has been cleared or not, before the goods are
brought into the Docks for examination and export. In case any query is raised, the same is
required to be replied through the service center or in case of CHAs having EDI connectivity
through their respective terminals. The Customs officer may pass the Shipping Bill after all the
queries have been satisfactorily replied to.

9. CUSTOMS EXAMINATION OF EXPORT CARGO:

After the receipt of the goods in the dock, the exporter/CHA may contact the Customs Officer
designated for the purpose present the check list with the endorsement of Port Authority and other
declarations as aforesaid along with all original documents such as, Invoice and Packing list, etc.
Customs Officer may verify the quantity of the goods actually received and enter into the system and
thereafter mark the Electronic Shipping Bill and also hand over all original documents to the Dock
Appraiser who many assign a Customs Officer for the examination and intimate the officers’ name
and the packages to be examined, if any, on the check list and return it to the exporter or his agent.
The Customs Officer may inspect/examine the shipment along with the Dock Appraiser. The
Customs Officer enters the examination report in the system. He then marks the Electronic Bill along
with all original documents and checklist to the Dock Appraiser. If the Dock Appraiser is satisfied
that the particulars entered in the system conform to the description given in the original documents
and as seen in the physical examination, he may proceed to allow "let export" for the shipment and
inform the exporter or his agent.

10. VARIATION BETWEEN DECLARATION & PHYSICAL EXAMINATION:

The check list and the declaration along with all original documents are retained by the Appraiser
concerned. In case of any variation between the declaration in the Shipping Bill and physical
documents/examination report, the Appraiser may mark the Electronic Shipping

Bill to the Assistant Commissioner/Deputy Commissioner of Customs (Exports). He may also

forward the physical documents to Assistant Commissioner/Deputy Commissioner of Customs
(Exports) and instruct the exporter or his agent to meet the Assistant Commissioner/ Deputy
Commissioner of Customs (Exports) for settlement of dispute. In case the exporter agrees with
the views of the Department, the Shipping Bill needs to be processed accordingly. Where,
however, the exporter disputes the view of the Department principles of natural justice is
required to be followed before finalization of the issue.

11. STUFFING OR LOADING OF THE GOODS IN THE CONTAINER:

The exporter or his agent should hand over the exporter copy of the shipping bill duly signed by
the Appraiser permitting "Let Export" to the steamer agent who may then approach the
Preventive Officer for allowing the shipment. In case of container cargo the stuffing of container
at Dock is done under Preventive Supervision. Loading of both containerized and bulk cargo is
done under Preventive Supervision. The Customs Preventive Superintendent (Docks) may enter
the particulars of packages actually stuffed in to the container, the bottle seal number particulars
of loading of cargo container on board into the system and endorse these details on the exporter
copy of the shipping bill presented to him by the steamer agent. If there is a difference in the
quantity/number of packages stuffed in the containers/goods loaded on vessel the Superintendent
(Docks) may put a remark on the shipping bill in the system and that shipping bill requires
amendment or changed quantity. Such shipping bill also may not be taken up for the purpose of
sanction of Drawback/DEEC logging, till the shipping bill is suitably amended for the changed
quantity. The Customs Preventive Officer supervising the loading of container and general cargo
in to the vessel may give "Shipped on Board" endorsement on the exporter’s copy of the
shipping bill.

12. DRAWING OF SAMPLES:

Where the Appraiser Dock (export) orders for samples to be drawn and tested, the Customs
Officer may proceed to draw two samples from the consignment and enter the particulars thereof
along with details of the testing agency in the ICES/E system. There is no separate register for
recording dates of samples drawn. Three copies of the test memo are prepared by the Customs
Officer and are signed by the Customs Officer and Appraising Officer on behalf of Customs and
the exporter or his agent. The disposals of the three copies of the test memo are as follows: -
• Original – to be sent along with the sample to the test agency.
• Duplicate – Customs copy to be retained with the 2nd sample
• Triplicate – Exporter’s copy.

13. AMENDMENTS:

Any correction/amendments in the checklist generated after filing of declaration can be made at the
service center, provided, the documents have not yet been submitted in the system and the shipping
bill number has not been generated. Where corrections are required to be made after the generation of
the shipping bill No. or after the goods have been brought into the Export Dock, amendments is
carried out in the following manners. • If the goods have not yet been allowed "let export"
amendments may be permitted by the Assistant Commissioner (Exports).
• Where the "Let Export" order has already been given, amendments may be permitted only by
the Additional/Joint Commissioner, Custom House, in charge of export section.

14. EXPORT OF GOODS UNDER CLAIM FOR DRAWBACK:

After actual export of the goods, the Drawback claim is processed through EDI system by the
officers of Drawback Branch on first come first served basis. There is no need for filing separate

drawback claims. The status of the shipping bills and sanction of DBK claim can be ascertained
from the query counter set up at the service center. If any query has been raised or deficiency
noticed, the same is shown on the terminal. A print out of the query/ deficiency may be obtained
by the authorized person of the exporter from the service center. The exporters are required to
reply to such queries through the service center. The claim will come in queue of the EDI system
only after reply to queries/deficiencies is entered by the Service Centre. All the claims
sanctioned on a particular day are enumerated in a scroll and transferred to the Bank through the
system. The bank credits the drawback amount in the respective accounts of the exporters. Bank
may send a fortnightly statement to the exporters of such credits made in their accounts. The
Steamer Agent/Shipping Line may transfer electronically the EGM to the Customs EDI system
so that the physical export of the goods is confirmed, to enable the Customs to sanction the
drawback claims

15. GENERATION OF SHIPPING BILL:

After the "let export" order is given on the system by the Appraiser, the Shipping Bill is
generated by the system in two copies i.e., one Customs copy, one exporter’s copy. After
obtaining the print out the appraiser obtains the signatures of the Customs Officer on the
examination report and the representative of the CHA on both copies of the shipping bill and
examination report. The Appraiser thereafter signs & stamps both the copies of the shipping bill
at the specified place. The Appraiser also signs and stamps the original & duplicate copy of SDF.
Customs copy of shipping bill and original copy of the SDF is retained along with the original
declarations by the Appraiser and forwarded to Export Department of the Custom House. He
may return the exporter copy and the second copy of the SDF to the exporter or his agent

16. EXPORT GENERAL MANIFEST:

All the shipping lines/agents need to furnish the Export General Manifests (EGM), Shipping Bill
wise, to the Customs electronically within 7 days from the date of sailing of the vessel. Apart
from lodging the EGM electronically the shipping lines need to continue to file manual EGMs
along with the exporter copy of the shipping bills as per the present practice in the export
department. The manual EGMs need to be entered in the register at the Export Department and
the Shipping lines may obtain acknowledgements indicating the date and time at which the
EGMs were received by the Export Department. Keeping in view the above guidelines and
procedures, one can successfully export goods from India.
 EXPORT DOCUMENTATION

Documentation is a key means of conveying information from one person or company to another,
and also serves as permanent proof of tasks and actions undertaken throughout the
export process. Documentation is not only required for your own business purposes and that of
your business partner, but also to satisfy the customs authorities in both countries and to facility
the transportation of and payment for goods sold. One value of documentation is that copies
can be made and shared with the parties involved in the export process. If the documentation is
complete, accurate, agreed upon by the parties involved and signed by each of these of these
parties (or their representatives), the document will represent a legally binding document.

FUNCTION OF DOCUMENTS

• An attestation of facts, such as a certificate of origin.

• Evidence of the terms and conditions of a contract if carriage, such as in the case of an air
waybill.
• Evidence of ownership or title to goods, such as in the case of a bill of lading
• A promissory note; that is, a promise to pay.
• A demand for payment, as with a bill of exchange.
• A declaration of liability, such as with a customs bill of entry.
• A receipt for goods received.

THE BENEFITS OF DOCUMENTATION

Documentation is a key means of conveying information from one person or company to
another, and also serves as permanent proof of tasks and actions undertaken throughout the
export process. Documentation is not only required for your own business purposes and that of
your business partner, but also to satisfy the customs authorities in both countries and to
facilitate the transportation of and payment for goods sold. One value of documentation is that
copies can be made and shared with the parties involved in the export process (although you
should always ensure that you make identical copies from an agreed-upon master - it is no use
making changes without the other party's agreement and then presenting these as the "latest"
copies). If the documentation is complete, accurate, agreed upon by the parties involved and
signed by each of these of these parties (or their representatives), the document will represent a
legally binding document.
DOCUMENTS REQUIRED FOR EXPORT
There are mainly 3 types of Documents
• Commercial Documents
• Financial Documents
• Government Documents

Documents Prepared by Exporter:

Commercial Documents:

Proforma invoice

A proforma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or

delivery of goods. The invoice will typically describe the purchased items and other important
information such as the shipping weight and transport charges proforma, Latin for “as a matter
of form” or “for the sake of form,” invoices often come into play with international transactions,
especially for customs purposes on imports.
• Most pro forma invoices provide the buyer with a precise sale price.
• No guidelines are dictating the exact presentation or format of a pro forma invoice
A pro forma invoice requires only enough information to allow customs to determine the duties
needed from a general examination of the included goods.
COMMERCIAL INVOICE
It is a formal demand note for payment issued by the exporter to the importer for goods sold
under a sales contract. It should give details of the goods sold, payment terms and trade terms. It
is also used for the customs clearance of goods and sometimes for foreign exchange purpose by
the importer. The commercial invoice is a legal document between the supplier and the customer
that clearly describes’ the sold goods, and the amount due on the customer. The commercial
invoice is one of the main documents used by customs in determining customs duties.

INFORMATION IN COMMERCIAL INVOICE

 • Invoice Information: Refers to the information regarding the commercial invoice
• Invoice Number: The supplier invoice reference number Invoice
• Date: The issue date of the invoice
• Order Number: The customer order number of the goods
• Shipper Information: Refers to the information about the sender of the Goods
• Name: The name of the sender
• Address: The complete address of the sender, which includes the postal/zip code and the
city name
• Telephone: The telephone number of the sender.
• Fax: The fax number of the sender
• VAT Number: The sender Value Added Tax reference Number, for countries, which
apply the VAT.
• Country: The country the sender is located in.
• Consignee Information: Refers to the information about the receiver of the goods
• Name: The name of the receiver
• Address: The complete address of the receiver Telephone: The telephone number of the
receiver. Fax: The fax number of the receiver
• VAT Number: The receiver Value Added Tax reference Number, for countries that apply
the VAT.
• Country: The country the receiver is located
• Notify Party: The name of the party who affects the delivery of the goods.
• Address: The address of the party to be notified
• Shipping Information: Refers to the information about the shipping of the goods
• Bill Number: The Air Way bill number under which the goods are shipped Forwarding
Agent: The shipping company name
Date of Export: The date of which the goods are shipped
IMPORT PROCEDURE

Import procedures

Typically, the procedure for import and export activities involves ensuring licensing and
compliance before the shipping of goods, arranging for transport and warehousing after the
unloading of goods, and getting customs clearance as well as paying taxes before the release of
goods.

1. Obtain IEC

Prior to importing from India, every business must first obtain an Import Export Code (IEC)
number from the regional joint DGFT. The IEC is a pan-based registration of traders with
lifetime validity and is required for clearing customs, sending shipments, as well as for sending
or receiving money in foreign currency.
The process to obtain the IEC registration takes about 10-15 days.

2. Ensure legal compliance under different trade laws

Once an IEC is allotted, businesses may import goods that are compliant with Section 11 of the
Customs Act (1962), Foreign Trade (Development & Regulation) Act (1992), and the Foreign
Trade Policy, 2015-20.

However, certain items – restricted, canalized, or prohibited, as declared and notified by the
government – require additional permission and licenses from the DGFT and the federal
government.

3. Procure import licenses

To determine whether a license is needed to import a particular commercial product or service,

an importer must first classify the item by identifying its Indian Trading Clarification based on a
Harmonized System of Coding or ITC (HS) classification.

ITC (HS) is India’s chief method of classifying items for trade and import-export operations.
The ITC-HS code, issued by the DGFT, is an 8-digit alphanumeric code representing a certain
class or category of goods, which allows the importer to follow regulations concerned with those
goods.
 CHAPTER 8

FINDINGS AND CONCLUSION

8.1 SWOT ANALYSIS

1. STRENGTH
I. Raw material base
India has high self-sufficiency for raw material particularly natural fibres. India’s cotton crop is
the third largest in the world. Indian textile Industry produces and handles all types of fibres.
II. Labour
Cheap labour and strong entrepreneurial skills have always been the backbone of the Indian
Apparel and textile Industry.
III. Flexibility
The small size of manufacturing which is predominant in the apparel industry allows for greater
flexibility to service smaller and specialized orders.
IV. Rich Heritage
The cultural diversity and rich heritage of the country offers good inspiration base for designers.
V. Domestic market
Natural demand drivers including rising income levels, increasing urbanisation and growth of the
purchasing population drive domestic demand.
2. WEAKNESS
I. More dependence on cotton
Due to over specialization in cotton, the bulk of the international market is missed out, synthetic
products in India are expensive and fabric required for items like swimsuit, skywear and
industrial apparel is relatively unavailable.
II. Spinning Sector
Spinning sector lacks modernization and there is a need of introducing new technology.
III. Weaving Sector
India has relatively less number of shuttle-less loom.
IV. Fabric Processing
Processing is the weakest link in the Indian textile value chain, adversely affecting its ability to
compete in exports.
V. Poor Infrastructure

High power costs and long export lead times are eroding India’s export competitiveness across
the textile chain.

VI. Low Labour Productivity

Productivity levels for manufacturing various apparel items are far lower in India in comparison
with its competitors.
OTHER WEAKNESSSES
VII. Less attention on man power training
VIII. Poor quality standards
IX. Distance of the potential market
X. Lower average consumption in domestic market
XI. Lack of professionalism and integration of supply chain
XII. Dependence on quota system
XIII. Very low investment on R&D
XIV. Limited exploitation of economies of scale

3. OPPORTUNITIES
I. Growing Industry
World textile trade would continue to grow at a rate of 3-4% to reach $200-210 billon by 2010.
II. Market access through bilateral negotiation
The trade is growing between regional trade blocs due to bilateral agreements between
participating countries.
III. Integration of Information technology

‘Supply Chain Management’ and ‘Information Technology’ has a crucial role in apparel
manufacturing. Availability of EDI (Electronic Data Interchange), makes communication fast,
easy, transparent and reduces duplication.
IV. Opportunity in High Value Items
India has the opportunity to increase its UVR’s (Unit Value Realization) through moving up
the value chain by producing value added products and by producing more and more
technologically superior products.
4. THREATS
I. Decreasing Fashion Cycle
There has been an increase in seasons per year which has resulted in shortening of the fashion
cycle.

II. Formation of Trading Blocks

8.2TOP TEXTILE PRODUCT EXPORTERS FROM INDIA
• Raymond Ltd
• Arvind Mill
• The Ruby Mills
• Loyal Textile Mills Limited
• Nahar Spinning Mills Ltd
• Sel Group
Mandhana Industries
Conclusion
The profitability and cotton textile industry as compared to other industries as profit
aster tax as percentage of net world is lower because of high depreciation cost which is
due to old and obsolescence technology technological obsolesce is more prominent in
weaving and processing sectors which results in reducing fabrics productivity level
poor quality.
While analyzing the problems in logistics support systems provided for the
readymade garment exporters, it was found that the problem of high cost of
distribution and physical transportation of goods were the first and second major
issues.
 CHAPTER 9

SUGGESTIONS

• The producers in developing country like India face volume restrictions on their exports. They
can enlarge the value of their sales by moving up the market segment into highest quality
lines in their product category.
• The various departments should be supplied with more specialized work force so the
efficiency can be increased.
• The industry should consider exporting its products by collaborating with foreign companies
in technology and marketing in order to keep up with the competition.
• The pricing policy and marketing strategies must be reviewed.
• The top management should monitor the productivity of its employees.
 • CHAPTER 10
•
• BIBLOGRAPHY
•
• Websites:
•
• http://texmin.nic.in/
•
• http://textilescommittee.nic.in/
•
• http://ministryoftextiles.gov.in/sector-industry/cotton
http://www.texmin.gov.in/
•
•