lOMoARcPSD|24889315

Project Report on textile industry

Bachelor of business administration

DECLARATION

I, Ashutosh Sharma student of The Technological Institute of Textile & Sciences Bhiwani,

Haryana studying in MBA – III Semester, University Roll No._______________ is here by

Submitting a Summer Training Report on the title “Performance Assessment of Marketing

Agents & A Study of Export Marketing of GBTL Ltd.” For the requirement of partial

Fulfilment to Masters of Business Administration.

I solemnly declare that to the best of my knowledge, the work done by me is original and the

Work does not contain any part of any work which has been submitted for any degree either

In the University, or in any other University/Deemed University.

ASHUTOSH SHARMA
ACKNOWLEDGEMENTS

The Internship opportunity I had with GBTL limited was a great chance for learning and
professional development. I express my deep sense of gratitude, thanks and regards towards
all of those who have directly or indirectly helped me in the successful completion of this
project. I present my sincere thanks to Dr S.K. Sharma (HOD) who allowed me to take
training and also Ms. Charumani who provided her valuable suggestions and precious
time in accomplishing my project report. I am grateful to all faculty members of TIT. I also
thanks to Mr. Bhupesh Sharma (HOD B&R), Mr. Yogesh Sharma (Export Marketing
Manager) who in spite of being extraordinary busy with his duties, took time out to hear
and guide me to carry out my project. Lastly, I would like to thank the almighty and my
parents for their moral support and my friends with whom I shared my day-to-day
experience and received lots of suggestions that improved my quality of work.

TEJAL PAWAR
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PREFACE

Summer training in BBA and study content of such as practical knowledge it makes the
student confident and introduce them about their ability. This idea is to have an insight into
what happen in the practical corporate world and establish a link between theory and
practical. However, one month is a short period to analyses and understand very vast
corporate world. I have done my training from Grasim Bhiwani Textile ltd.
Grasim Bhiwani textile limited allows me to work in B&R department to study the working
of Export Marketing of the company. Company offered me a project on Performance
Assessment of Marketing Agents.
Exports are incredibly important to modern economies because they offer people and firms
many more markets for their goods. One of the core functions of diplomacy and foreign
policy between governments is to foster economic trade, encouraging exports and imports for
the benefit of all trading parties.
The export marketing agents refers to a person who acts as an intermediary between buyer
and seller in the international market. An export agent enables both parties to execute internal
transactions. An export broker brings the two interested parties together and facilitates the
transaction.
 Table of content
1. Introduction
1.1 Textile industry
1.2 Company profile
2. Project profile
2.1 Study of export marketing
2.2 Marketing Agents
2.3 Performance Assessment
2.4 Performance assessment of export agents
3. Objective of study
4. Research methodology
5.Analysis & Interpretation
5.1 Analysis
5.2 Interpretation
6. Conclusion & Recommendations
7. References
8. Annexures
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CHAPTER-1 1.1 TEXTILE INDUSTRY

Introduction
The textile industry is primarily concerned with the design, production and distribution
of yarn, cloth and clothing. The raw material may be natural, or synthetic using
products of the chemical industry.

India’s textiles sector is one of the oldest industries in the Indian economy, dating back to
several centuries. The textile industry in India traditionally, after agriculture, is the only
industry that has generated huge employment for both skilled and unskilled labour in textiles.
The textile industry continues to be the second-largest employment generating sector in
India. It offers direct employment to over 35 million in the country.

Indian Textile Industry occupies a very important place in the economic life of India. 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
agriculturally based raw-material production like cotton and related trade and handling could
be stated to be around another 60 million.

The industry is extremely varied, with hand-spun and hand-woven textiles sectors at one end
of the spectrum, while the capital-intensive sophisticated mills sector on the other end. The
decentralised power looms/ hosiery and knitting sector forms the largest component in the
textiles sector. The close linkage of textiles industry to agriculture (for raw materials such as
cotton) and the ancient culture and traditions of the country in terms of textiles makes it
unique in comparison to other industries in the country. India’s textiles industry has a
capacity to produce wide variety of products suitable for different market segments, both
within India and across the world.

The share of the India’s textiles and apparel exports in mercantile shipments was 11% in
2019-20. Textiles industry has around 4.5 crore employed workers including 35.22 lakh
handloom workers across the country.

India is first in global jute production and shares 63% of the global textile and garment
market. India is second in global textile manufacturing and also second in silk and cotton
production. 100% FDI is allowed via automatic route in textile sector. Rieter, Trutzschler,
Saurer, Soktas, Zambiati, Picanol, Bilsar, Monti, CMT, E-land, Nisshinbo, Marks & Spencer,
Zara, Benetton, and Levi’s are some of the foreign textile companies invested or working in
India.

Investment
The textiles sector has witnessed a spurt in investment during the last five years. The industry
(including dyed and printed) attracted Foreign Direct Investment (FDI) worth US$ 3.75
billion from April 2000 to March 2021.
In May 2021, Indo Count Industries Ltd. (ICIL), announced an investment of Rs. 200 crore
(US$ 26.9 million) to expand its production capacity.
The production-linked incentive (PLI) scheme for man-made fibre and technical textiles will
help boost manufacturing, increase exports and attract investments into the sector.

Road Ahead
India is working on major initiatives, to boost its technical textile industry. Owing to the
pandemic, the demand for technical textiles in the form of PPE suits and equipment is on
rise. Government is supporting the sector through funding and machinery sponsoring. Top
players in the sector are attaining sustainability in their products by manufacturing textiles
that use natural recyclable materials.

The future for the Indian textiles industry looks promising, buoyed by strong domestic
consumption as well as export demand. With consumerism and disposable income on the
rise, the retail sector has experienced a rapid growth in the past decade with the entry of
several international players like Marks & Spencer, Guess and Next into the Indian market.
High economic growth has resulted in higher disposable income. This has led to rise in
demand for products creating a huge domestic market.

Uses of Textiles
Textiles have an assortment of uses, the most common of which are for clothing and for
containers such as bags and baskets.
In the household they are used in carpeting, upholstered furnishings, window shades, towels,
coverings for tables, beds, and other flat surfaces, and in art.
In the workplace they are used in industrial and scientific processes such as filtering.
Miscellaneous uses include flags, backpacks, tents, nets, handkerchiefs, cleaning rags,
transportation devices such as balloons, kites, sails, and parachutes textiles are also used to
provide strengthening in composite materials such as fiberglass and industrial geotextiles.
Using textiles, children can learn to sew and quilt and to make collages and toys.
Textiles used for industrial purposes, and chosen for characteristics other than their
appearance, are commonly referred to as technical textiles.
Technical textiles include textile structures for:
• Automotive applications e.g., tyre cord, seat belt; Medical textiles e.g., implants;
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• Geotextile’s reinforcement of embankments,

• Agro-textiles for crop protection,
• Protective clothing e.g., against heat and radiation for fire fighter clothing, against
molten metals for welders, stab protection, and bullet proof vests.

• Bio-textiles (Medical textiles) e.g., Breathing masks, wound care, wipes etc.
In all these applications stringent performance requirements must be met. Woven of
threads coated with zinc oxide nanowires, laboratory fabric has been shown capable of
"self-powering Nano systems" using vibrations created by everyday actions like wind or
body movements.

MINISTRY OF TEXTILE AND ORGANISATION

Government of India passed the National Textile Policy in 2000. The major functions of the
ministry of textiles are formulating policy and coordination of man-made fiber, cotton, jute,
silk, wool industries, decentralization of power loom sector, promotion of exports, planning
& economic analysis, finance and promoting use of information technology. The advisory
boards for the ministry include All India Handlooms Board, All India Handicrafts Board, All
India Power looms Board, Advisory Committee under Handlooms Reservation of Articles for
Production and C o-ordination Council of Textiles Research Association. There are several
public sector units and textile research associations (such as NITRA, SITRA, etc.) across the
country.
 1.2 COMPANY PROFILE
GBTL limited – formally known as Grasim Bhiwani Textile Ltd.

1.2.1 Introduction

GRASIM BHIWANI TEXTILE LIMITED (GBTL) was established in 1931 by Dr G.D.

Birla earlier it was named as Bhiwani Textile Mill (BTM), then in 2007 it was undertaken by
Aditya Birla Group and named Grasim Bhiwani Textile Limited (GBTL).

Fig. 1.2.1 Admin Block (GBTL)

GBTL limited, a wholly owned subsidiary, to Donear group of Mumbai. GBTL has been
primarily engaged in the business of manufacturing and marketing of Polyester-Viscose
Fabric. This divestment is the outcome of the business portfolio review exercise from time to
time. It is in the direction of consolidation and greater focus on core businesses of the
company. Given the size of Grasim’s total operations, GBTL’s divestment will have a
negligible impact on the company’s financials. GBTL sells fabric both in the domestic as
well as in the international market across geographies. The Domestic OTC division operates
in Domestic over the counter (OTC) formal menswear fabric market by offering Ready to
Stitch suiting. The Brands & Retailers division caters to domestic as well as international
customers by supplying fabric and also acts as full-service Provider by offering one stop
solution of fabric to garmenting.
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GBTL is the country’s largest manufacturer of PV and PW suiting, selling its products under
the “Grado” and “Graviera” brands in India in over 25 countries. The biggest strengths of
GBTL are its quality-conscious trade partners and global customers. GBTL caters to
international fashion houses in the US, UK and Europe, supplying fabric to them for making
garments which are available in some of the largest retail chain stores. The Donear Group
aims to build further on GBTL’s existing strengths.
1.2.2 PRODUCTS

 PRODUCT RANGE OFFERED BY GBTL

 Polyester-Viscose (P/V)
 Polyester-Viscose-Lycra (P/V/L)  Polyester-Viscose-Wool(P/V/W)
 Polyester-Viscose-Linen(P/V/L)
 Polyester-Viscose-Nylon(P/V/N)
 Polyester-Viscose-Spandex(P/V/S)
 Polyester-Cotton(P/C)
 Polyester-Viscose-Cotton(P/V/C)
 Polyester-Viscose-Elastane(P/V/EL)

 NEW PRODUCT DEVELOPMENT (NPD)

 VALENO (TR)
 SEER-SUCKER
 KNITTER LOOK
1.2.3 MANAGING DIRECTOR

Mr. Ankit Arun Jogani is registered with Ministry of Corporate Affairs (MCA). Their DIN
is 09103541 and holding active directorship in 1 Company. From 12 march 2021, the first
company ANKIT ARUN JOGANI was appointed as Director is GBTL LIMITED and the
most recent directorship is with GBTL LIMITED. The total paid up capital of all companies
where ANKIT ARUN JOGANI holds active directorship is Rs 20,05,00,000.00 ( 20.05 ₹ ₹
Cr.). The company utilizes strong manufacturing facilities comprising of Fiber Dying, Yarn
Spinning, Weaving, Processing and Folding with state-of-the-art machines, processes and
professional environment. The company also has strong presence in international market
catering to the fabric need of international brands. The company has strong Design and
Development team which conceptualizes and develops designs as per fashion standards and
market Needs. The Company also has its product range of RMG Readymade Garments with
exclusive design and qualities.
1.2.4. BRAND AMBASSADOR OF GRADO

GBTL & OCM, two heritage brands, have launched a New-Age Brand called ‘GRADO’.
With the advent of ‘GRADO’ and the combined star wattage of the greatest celebrity of
Indian cinema, Mr. Amitabh Bachchan as the Brand Ambassador, Brand ‘GRADO’ is all set
to usher a successful new wave in the Luxury Fabrics & Apparels industry.

GRADO caters to maximum product segments and across a range of price points so there is
something for everyone under the brand name ‘GRADO’.

From an end-consumer viewpoint, the composite Power Brand ‘GRADO’ offers a rich
repository of fabrics and apparels to choose from, namely, Wool, Wool blends, PV, PV
blends and Cottons.

Fig. 1.2.4. Mr. Amitabh Bachchan

GRASIM BHIWANI TEXTILES LIMITED IS EQUIPPED WITH

1. World Class spindles. (With the capacity of 30,000 spindles)

2. Picanol looms (Air jet), Dornier Looms (Germany) and Sulzer Looms (Switzerland).

3. Computerized matching systems and sophisticated jet-dyeing machines in its Processing Unit.

4. Computer Aided Design packages in its Fabric Development Section.

5. It has Italian machinery for making perching and dying the cloth

6. Fabric production capacity – 36000 Meters /day

1.2.5. OBJECTIVES OF THE COMPANY

Objectives establish the goals and the aims of the business and determine the shape of future
events. Objectives are the way of achieving motives for profit of social service. Main
objectives of GBTL LTD as in its Memorandum of Association are:
1) Increasing Productivity of workforce.
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2) To introduce new products and create new markets.

3) Customer service and customer satisfaction.
4) Improving work culture among the employees.
5) Capitalizing on company strength and use of corporate assets.
6) Continuous innovation.
7) To provide growth rate of about 10% p.a.
8) Improve the advertising effectiveness.

Vision
To be a profitable company offering sustainable clothing solution through product
innovation, design and deliver superior value to all the stakeholders.

Mission
• To deliver leadership through operational excellence in quality, cost and
services.
• To deliver break through products through in house manufacturing and
strong outsourcing with speed.
1.2.6. DONEAR GROUP OF INDUSTRIES

Started by the late Vishwanath Agarwal, Donear is a well-recognised fashion brand and also
supplies fabrics to major players like Louis Philippe, Van Heusen, Peter England,
Blackberry, Arvind, Wills Lifestyle, and Future Group.
The late Vishwanath Agarwal was a textile trader for 18 years. He built a strong network in
the industry and was also on the boards of some Indian textile businesses.

In the 1970s, Vishwanath saw that the textile industry in India was poised to become more
enterprising and attain a global outlook. At the same time, he was also facing strategic and
management challenges with the companies he was associated with as a board member.

One day, after a particularly discordant board meeting, he decided he wanted to tap into the
growing textile industry himself. He made up his mind to start his own textile manufacturing
facility.

This resolve led to the foundation of Donear Industries in Mumbai in 1977.

Today, Donear Industries is a well-recognised clothing and textile business brand in India. It
claims to have a turnover of Rs 1,300 crore and a team strength of 5,000 employees.
At the GBTL (Grasim Bhiwani Textiles Limited*) factory in Bhiwani, owned by the
promoters of the Donear Group, GBTL manufactures poly-viscose. Grasim Industries in
2017 entered into a share transfer agreement for the divestment of its 100 percent holding of
GBTL, a wholly owned subsidiary, to Donear Group.
DONEAR is an active supplier of fabrics to India’s largest brands such as Louis Philippe,
Van Heusen, Peter England, Blackberry, Arvind, Wills Lifestyle, Future Group, and more.

In retail, Donear Group has a network of over 200 stores, marketing its apparel under the
D’Cot and Donear NXG brands. Donear as a fashion brand has a product portfolio
comprising Donear Suiting and Shirting,

Presently, Donear also exports fabric to over 28 countries.

1.2.7. Major Brands under DONEAR

• D’Cot (Donear Cottons)
• GRADO
• OCM (ORIENTAL CARPET MANUFACTURE)
• NXG
• GRAVIERA  DONATI

• Royal Classico

• Ferrino Mizzoni

• iTR
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• Bronson

MAYUR


 2. Project Profile

2.1 Export Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large. It is one of the primary components of business management and commerce.
Marketers can direct their product to other businesses (B2B marketing) or directly to
consumers (B2C marketing).
Marketing as a discipline involves all the actions a company undertakes to draw in customers
and maintain relationships with them. Networking with potential or past clients is part of the
work too, and may include writing thank you emails, playing golf with prospective clients,
returning calls and emails quickly, and meeting with clients for coffee or a meal.
At its most basic level, marketing seeks to match a company's products and services to
customers who want access to those products. Matching products to customers ultimately
ensure profitability.

Export Marketing
In the simplest terms, “exports” are the sale of goods or services to a country other than your
own. There are 195 countries in the world for you to choose as buyers, but dealing with each
of them is a different ballgame entirely. It is easier to trade with certain countries with whom
your country has either a multilateral or bilateral trade agreement. These agreements reduce
or remove barriers that exist in the trade relationship between countries.
Export marketing is the practice by which a company sells products or services to a foreign
country. Products are produced or distributed from the company’s home country to buyers in
international locations. But there is a difference between products that are available to
foreign countries and products that are specifically marketed to foreign customers.
Definition of export marketing,
According to B.S. Rathor,” export marketing includes management of marketing
activities for product which crosses the national boundaries of the country.”
Businesses today are often doubling or tripling products by expanding to product sales on an
international level. But you can’t assume that foreign markets will be as interested in your
product as local customers. Cultural differences, shipping costs and transit time, politics, and
international trade policies all contribute to a marketing communication barrier between
suppliers and foreign buyers.
As we know that garment industries are the major customers of the textile industries and have
to establish contact with the textile industries for their raw material (fabric or yarn) to make
the garments.
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Fabric selection is a crucial step in designing a project because fabrics are designed for
specific applications, a fabric manufactured for one purpose, may not be adaptable for
another use. Therefore, selecting the appropriate fabric is only the first step in
providing serviceable fabrics for apparel manufacturing. Designers specify the fabric
as part of their design concept. Designers may develop new styles for fabrics that have
been successful.

The apparel producer is interested primarily in the characteristics of a fabric. Although

fabric characteristics are related to fabric properties, a fabric property is of no interest
to the apparel manufacture unless it controls a fabric characteristic or cost factor vital
to him, or unless the property itself such as thickness or weight, has definite utility or
style value.

There are three viewpoints to stipulating fabric selection

• The consumer’s viewpoint

• The fabric producer’s viewpoint
• The garment producer’s viewpoint
2.1.1 GBTL - EXPPORT MARKETING

IN GBTL EXPORT MARKETING, the department named BRAND & RETAIL (B&R).
The Brand & Retail department is sub-divided into 5 divisions i.e.

• BRAND DOMESTIC (BD)

• CORPORATE WEAR (CW)
• UNITED KINGDOM (UK)
• UNITED STATE (US)
• REST OF WORLD (ROW)

1. The Brand Domestic (BD) deals with the domestic market and supply the fabric to
the customer in India.
GRADO is an active supplier of fabrics to India’s largest brands such as Louis Philippe, Van
Heusen, Peter England, Blackberry, Arvind, Wills Lifestyle, Future Group, Pantaloon and
more.

2. The Corporate Wear (CW) deals with the domestic market usually for corporate
wears in all over India and they supply the fabric as per the customer requirement or
produces by the company itself.
They are the active supplier of fabric to India’s largest brands such as Blackberry,
Spice Jet, Vistara, Indigo, Maruti, Renault, SRF, Karnataka Police, Whirl-pool,
PDlite, MRF, Manipur Police, etc.

3. The UNITED KINGDOM (UK), deals with the customers in UK market. The
process of order generation will be by the existing customers and sometimes there is a
dealer or we can say a middle man who take the orders from the UK market and pass
on to the marketing team which handles the UK market in GBTL.
Active suppliers of NEXT men’s wear, NEXT women’s wear, J.S. Marketing, M&S,
TOPMAN, etc.

4. The UNITED STATE (US), deals with the customer of US market. The process of
order generation process is same as the UK market. They got the order requirement
from the existing customers and also there are the agents, they pick the orders from
the market and hand-over to the marketing team of GRADO. Active suppliers of
Hagger, GAP, etc.

5. The REST OF WORLD (ROW), deals with the rest of countries except UK and US.
Also, some countries of Europe. They got the order requirement either direct from the
customers or from the agents’ end.
Active suppliers of Yale, Haber, Vanity, Uroneck, ADA (Australia Defence Apparel),
Wisco, WWG, etc.
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2.1.2. PROCESS OF EXPORT MARKETING

ORDER GENERATION PROCESS

ORDER EXECUTION PROCESS

ORDER COMPLITION PROCESS

1. Order Generation Process

The order generation process is the first step and very crucial step. The customer puts off
their requirement of fabric with some quality parameters with a fabric sample called
swatches. As soon as the marketing team got the offer from the customer’s side, they
assigned a unique code (HL****) and sent the swatches to the Design & Development
(D&D) department to find out further information of sample and make the small sample
same or similar as they received.
After development of the new sample, they compare the quality range. And send the
developed sample and its quality parameters to the marketing team, so as they can confirm
the order from the customer.
Marketing team calculate the production cost of product to be produced and send it to the
customer via e-mail.
As they got the confirmation. It steps toward the next process.

2. Order Execution Process

The next step is the execution process, when the order is confirmed by the customer, the
marketing team assigned a unique code (GR****) for the bulk production. They forward the
details such as the delivery date, length of fabric etc. to the Production, Planning &
Controlling (PPC) Department.
The PPC department plan and control the whole production process (Ex-mill) so as to
achieve the requirement of customer and deliver the order in specific time period.
The whole data tracking is running on SAP, from here each and every department of the
company can track the production process of their respective orders.
When the finished fabric is ready. The packing process is carried out and the sent to
warehouse. The goods (fabric rolls) are ready to deliver to the customer¸

3. Order Completion process

Here, in the order completion process. It covers 3 main and the crucial steps:
 Shipment  Feedback
 Payment

All these three steps are very crucial for marketing process. The delivery of the goods to the
customer within the prescribed period of time, receiving the payment from the customer and
also the feedback.

 SHIPMENT

 Pro-forma

A pro forma invoice is an important document used as a negotiating tool between the seller
and the buyer prior to an export shipment. This document should be used by the seller to
quote at the beginning of an export transaction and it will eventually become the final
commercial invoice used when goods are cleared through customs in the importing country.
The document contains a description of goods (e.g., quantity, price, weight, kind and other
specifications) and is a declaration by the seller to provide the products and services to the
buyer at the specified date and price.

• Commercial Invoice

The commercial invoice is a legal document between the exporter and the buyer (in this case,
the foreign buyer) that clearly states the goods being sold and the amount the customer is to
pay. The commercial invoice is one of the main documents used by customs in determining
customs duties. A commercial invoice is a bill for the goods from the seller to the buyer.
These documents are often used by governments to determine the true value of goods when
assessing customs duties. Governments that use the commercial invoice to control imports
will often specify its form, content, number of copies, language to be used and other
characteristics.

• Packing List

Considerably more detailed and informative than a standard domestic packing list, an export
packing list lists seller, buyer, shipper, invoice number, date of shipment, mode of transport,
carrier, and itemizes quantity, description, the type of package, such as a box, crate, drum, or
carton, the quantity of packages, total net and gross weight (in kilograms), package marks
and dimensions, if appropriate. Both commercial stationers and freight forwarders carry
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packing list forms. A packing list may serve as conforming document. It is not a substitute
for a commercial invoice. In addition, U.S. and foreign customs officials may use the packing
list to check the cargo so the commercial invoice should reflect the information shown on the
packing list.

• Transportation Documents

Air Waybill

Air freight shipments require airway bills. An air way bill accompanies goods shipped by an
international air carrier. The document provides detailed information about the shipment and
allows it to be tracked. Air waybills are shipper-specific and are not negotiable documents.

 Payment

To be competitive in business today, business owners need to think globally.

To sell internationally, its critical to offer appropriate payment methods that are safe and
have favourable terms for the buyer (importer) and the seller (exporter). The risks involved in
international trade. Importers want to receive their goods before making payment, and
exporters want to be paid before they release the goods. This is why reliable payments are
important.
There are 4 main types of payment methods:

Usually cash in advance & letter of credit are frequently used in GBTL.

1. Cash in Advance /TT (telegraphic transfer)

The cash in advance method is the safest for exporters because they are securely paid
before goods are shipped and ownership is transferred. Typically, payments are made
by wire transfer or credit cards.
This is the least desirable method for importers because they have the risk of goods
being shipped and it is not favourable for business cash flow.
Cash in advance is usually only for small purchases. No exporter who requires only
this method of payment can be competitive.

2. Letter of Credit/Documentary Credit (Frequently used in GBTL)

A documentary credit or letter of credit, is basically a promise by a bank to pay an
exporter if all terms of the contract are executed properly. This is one of the most
secure method of payment. It is used if the importer has not established credit with
the exporter, but the exporter is comfortable with the importer’s bank.
This payment process is highly secured, the bank gives the guarantee of the customer
and bank will pay the whole amount as per the deal.

Here are the general steps in documentary credit transaction:

 The contract is negotiated and confirmed.
 The importer applies for the documentary credit with their bank.
 The documentary credit is set up by the issuing bank and the exporter and the
exporter’s bank (the collecting bank) are notified by the importer’s bank.
 The goods are shipped.
 Documents verifying the shipment and all terms of the sale are provided by the
exporter to the exporter’s bank and the exporter’s bank sends the documents to the
importer’s issuing bank.
 The issuing bank verifies the documents and issues payment to the exporter’s bank. 
The importer collects the goods.

3. Documentary Collection
A documentary collection is when the exporter instructs their bank to forward
documents related to the sales to the importer’s bank with a request to present the
documents to the buyer as a request for payment, indicating when and on what
conditions these documents can be released to the buyer.
The importer may obtain possession of goods if the importer has the shipping
documents. The documents are only released to the buyer after payment has been
made.

4. Open Account
An open account is a sale in which the goods are shipped and delivered before
payment is due usually in 30, 60 or 90 days.
This is one of the most advantageous option to the importer, but it is a higher risk
option for an exporter.
Foreign buyer offer want exporter to offer open account because it is much more
common in other countries, and the payment after receipt structure is better for the
bottom line.

5. Consignment & Trade Finance

Consignment is similar to an open account in some ways, but payment is sent to the
exporter only after the goods have been sold by the importer and distributor to the end
customer.
The exporter retains ownership of the goods until they are sold.
Exporting on consignment is very risky since the exporter is not guarantee any
payment.
Consignment, however, helps exporter become more competitive because the goods
are available for sale faster.
Selling on consignment reduces the exporter’s costs of storing inventory.

 Feedback
The feedback is the last important step in marketing. When the shipment is placed and
the importer received the order. Then he/she analyse the product and comment on the
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product, either its good or there is some defect or any other issue. Then the payment
settlement can be done.
2.2. Marketing agents/ Export Broker

An export broker or agent is a person who acts as an intermediary between buyer

and seller in the international market. An export broker enables both parties to
execute internal transactions. An export broker brings the two interested parties
together and facilitates the transaction. She charges a commission for brokering the
transaction.
Export/Import commission: The export or import broker can make money by using
different areas to facilitate exports and imports. The commission varies from product to
product and volume of trade.
An agent is similar to a distributor in that he’s a middleman. However, an agent does not take
title to the goods and provides fewer services than a distributor does. The agent’s role is to get
orders and (usually) earn a commission for his services. The following figure illustrates the
relationship among the agent, the supplier, and the buyer.

Fig.5.1.1. Export agent’s role

What exactly does the export agent do?

The agent may travel abroad, do research, prepare an export plan, advise the exporter on how
to adapt their marketing mix, make contact with potential buyers, negotiate deals with the
buyers, take care of all promotional activities, handle the logistics and documentation, and
much more. All of these tasks, the export will do on the exporter’s behalf. The exporter
normally pays the agent for the expenses they have incurred marketing the firm’s products
and handling the export administration, and will generally earn a commission on any sales
generated.
 lOMoARcPSD|24889315

Using an agent is a relatively easy and painless way for a local company to enter the export
market, as they generally have to do very little – the agent does all (or at least some) of the
export marketing on the firm’s behalf.
The agent thus will do most of the marketing of the principle (i.e., the export firm) and the
firm’s products.

Objectives of Export Trade

The important objectives of the export include the subsequent.

• Facilitating the selling of products to countries that desperately need such goods
 Expanding the marketplace for goods by producing them on an outsized scale.
• Earning exchange through exports
• Helping a rustic increase the value
• Creating employment opportunities in a country by promoting export-oriented
and export-related enterprises.
• Generating revenue for the govt within the sort of customs and excise duties.
• Promoting mutual affection and co-operation among the nations.
• Achieving optimum utilization of resources by large scale production of
products

Skills required for a marketing agent

• Highly organised to maintain correct information about the product

• Knowledge of different markets, various companies and trading
• Interact with both the local and international market and people in those
markets.
• Keep up with trade/ product/ material.
• Need to understand global economic trends, legal formalities and local
regulations.
• Know how to quickly and effectively find the solution and resolve problems in
a timely manner.
• Need to have market knowledge (present scenario) and future prediction.

Features of export marketing

• Earning foreign exchange

• International relation
• Balance of payment
• Reputation in the world
• Employment opportunity
• Higher profit
2.3 Performance appraisal / assessment

An employee performance appraisal is a process—often combining both written and oral

elements—whereby management evaluates and provides feedback on employee job
performance, including steps to improve or redirect activities as needed. Documenting
performance provides a basis for pay increases and promotions. Appraisals are also important
to help staff members improve their performance and as an avenue by which they can be
rewarded or recognized for a job well done. In addition, they can serve a host of other
functions, providing a launching point from which companies can clarify and shape
responsibilities in accordance with business trends, clear lines of management-employee
communication, and spur re-examinations of potentially hoary business practices.

PERFORMANCE APPRAISAL AND DEVELOPMENT

While the term performance appraisal has meaning for most small business owners, it might
be helpful to consider the goals of an appraisal system. They are as follows:
1. To improve the company's productivity
2. To make informed personnel decisions regarding promotion, job changes,
and termination
3. To identify what is required to perform a job (goals and responsibilities of
the job)
4. To assess an employee's performance against these goals

TYPES OF APPRAISALS AND ASSESSMENT TERMS

Traditional

In a traditional appraisal, a manager sits down with an employee and discusses performance
for the previous performance period, usually a single year. The discussion is based on the
manager's observations of the employee's abilities and performance of tasks as noted in a job
description. The performance is rated, with the ratings tied to salary percentage increases.
However, as David Antonioni notes in Compensation & Benefits, "The traditional merit raise
process grants even poor performers an automatic cost of living increase, thereby creating
perceived inequity'¦. In addition, most traditional performance appraisal forms use too many
rating categories and distribute ratings using a forced-distribution format." Antonioni
suggests the appraisal form use just three rating categories—outstanding, fully competent,
and unsatisfactory as most managers can assess their best and worst employees, with the rest
falling in between. Self-Appraisal
Somewhat self-explanatory, the self-appraisal is used in the performance appraisal process to
encourage staff members to take responsibility for their own performance by assessing their
own achievements or failures and promoting self-management of development goals. It also
prepares employees to discuss these points with their manager. It may be used in conjunction
 lOMoARcPSD|24889315

with or as a part of other appraisal processes, but does not substitute for an assessment of the
employee's performance by a manager.

Employee-Initiated Reviews

In an employee-initiated review system, employees are informed that they can ask for a
review from their manager. This type of on-demand appraisal is not meant to replace a
conventional review process. Rather, it can be used to promote an attitude of selfmanagement
among workers. Adherents to this type of review process contend that it promotes regular
communication between staff and managers. Detractors, though, note that it is dependent on
the employees' initiative, making it a less than ideal alternative for some workers with quiet,
retiring personalities or confidence issues.

360-Degree Feedback

360-degree feedback in the performance appraisal process refers to feedback on an

employee's performance being provided by the manager, different people or departments an
employee interacts with (peer evaluation), external customers, and the employee himself.
This type of feedback includes employee-generated feedback on management performance
(also known as upward appraisals). As a company grows in size, a small business owner
should consider using 360-degree feedback to appraise employees. Communication in a
business of ten people varies wildly from that of a company of 100 persons and 360-degree
feedback ensures that an employee's performance is observed by those who work most
closely with him. Small business owners or managers can either include the feedback in the
performance review or choose to provide it informally for development purposes.
2.4 Performance Assessment of Marketing agents

In GBTL, we go for the performance assessment of the export marketing agents on the
basis of gathering information by survey using the questionnaire.

i. Comparison of their previous year (2019) performance and their current

year (2021) performance (sales order)
ii. Comparing previous year (2019) and current year (2021) average price of
fabric
iii. Adding new customers in every new financial year iv. Product
knowledge v. Market knowledge vi. Timely payments vii. Repeat
orders viii. Customer acquisition ix. And many more.
 3. Objective of study

Objective of study

1. To study the performance of marketing agents as per the observation of marketing

executive of GBTL.

2. To study influence of agents on export marketing.

3. To study the working of export marketing.

 lOMoARcPSD|24889315

4. Research Methodology

Research methodology is the way to find out the result of a given problem on a particular
problem. In methodology, the researcher uses many criteria for solving the research
problem. If the researcher does not work properly on a given problem, then there would
be very less probability to get the final result. It provides the researcher criteria by which
we can decide which techniques and procedures will be applicable to a given problem. At
the same times it helps the researcher to clearly state what course of action he should
select at the time of conducting the research so that they can be evaluated by others also.

Data collection methods:

i. Primary research method-

Primary research involves gather the new data that has not been collected before.
• Questionnaire
• Personal interview
• Observation

ii. Secondary research method-

Secondary research involves gathering the existing data that has already been
produced by some other people.
Example: reports, studies by the government agencies, etc.

To achieve the objectives, primary data has been used. Primary data was collected from the
company’s export marketing team, their feedback, etc.

The present study has been conducted in GBTL, Bhiwani (Haryana). In present study, the
survey is conducted on the export marketing agents in different countries like UK, Mexico,
Australia, Europe, etc.
Limitation of study

During conducting this research, I come across the following limitations:

i. Lack of time
One of the major limitations of the study was limited time period. The
allocation of the study was inadequate. Because in this short period of time
one intern student had to both attend the office. For the scarcity of time, I
could not communicate largely with the concern persons and authority,
which would be very helpful for preparing, the report could be made much
more comprehensive.

ii. Scarcity of adequate information

Scarcity of adequate information caused hamper in report generation.
Primary and secondary data wasn’t up to date to deal with.
 iii. Wide area to study
There was the wide scope of the study but couldn’t be covered completely
due to lack of time and resources.

However, in spite of these limitations all efforts have been put to make the report correct,
genuine, and fulfilling the objectives of the study. 5.
5. ANAYSIS & INTERPRETATION

5.1. Analysis

i. ROW Market Agent – TOBIMAX & SCOPE TEXTILES

Average price of Tobimax & Scope Textiles

187
scope textile
185

127
tobimax
123

0 20 40 60 80 100 120 140 160 180 200

average price 2019 average price 2021
 lOMoARcPSD|24889315

 Total Average Price of ROW Market agents

Total Average Price

157.5
157
157
156.5
156
155.5 Total Average Price
Linear (Total Average Price)
155
154.5
154
154
153.5
153
152.5
2019 2021
 Orders given by different agents

ORDERS

300000
TOBIMAX 600000

0
0

600000
SCOPE TEXTILES 900000

0 200,000 400,000 600,000 800,000 1,000,000

2019 2021

In ROW (Australia, Mexico) market, the agent named TOBIMAX and SCOPE textiles. Both
the agents are from past 5 years with GBTL and offered repeat orders from customers of
approx. 9 lac meters of fabric order up to till date with a good average price of INR 157 in
2021, with an increment of price of 2 INR Which is higher than the previous (2019) year.

Major customers are:

In Mexico: Yale, Haber, Vanity, Uroneck etc.
In Australia: ADA (Australia Defence Apparel), Wisco, WWG, etc.
Overall rating 5 stars out 5 to both the agents.
ii. UK Market Agent- Ian Cussons

 Orders

 Average Price

avg. price
250

214
200

150

100

50

0
2021
avg. price

In UK market, GBTL hire a new agent from April 2021. Initially he adds 5 (in nos.) new
customers to GBTL.

UK market executive rates him:

• 4 out of 5 in market knowledge and product knowledge as well as timely payments.
• Overall rating is 5 out of 5.
 lOMoARcPSD|24889315

• His performance is excellent, because he gave a very good business of approx. 15 lac
meters order up to till date to GBTL in UK market.
• And also increases profitability and trying to penetrate in market.

Major customers are:

NEXT, J.S. Marketing, TOPMAN, M & S (Marks & Spencer), etc.
 iii. Corporate Wear (CW) Market Agent – Durai Subramaniam

 Average Price

 Orders
orders
120000

100000
100000
80000
80000

60000

40000

20000

0
2019 2021

CW agent named Duari Subramaniam, be with GBTL from past 5 years and above. He
connects GBTL with a lot of customers from the domestic market for a corporate wear. Up to
till date the agent gave an order of 80,000 meters of fabric for corporate wear.

Over all 4 stars rating out of 5.

 lOMoARcPSD|24889315

Brand domestic agents – Mittal Agency & Ashoka

 Average Price

Average Price in INR

205
200
200
195
195
190
190
186
185

180

175
Mittal Agency Ashoka
2019 2021

 Orders

Orders in mtrs.
350,000
300,000
300,000

250,000 225,000
200,000
200,000
150,000
150,000

100,000

50,000

0
Mittal Agency Ashoka
2019 2021
Brand Domestic have 2 agents named Mittal Agency and Ashoka.
Both the agents are in contact with GBTL from last 5 years.
 • The Mittal agency has 3 customers in 2019 and he add on one more customer in 2021.
He opts an order of 3,00,000 meters of fabric up to till date to GBTL, with an average
price of 190 INR.

• The agent named – Ashoka, have only one customer. And opts an order of 2,25,000
meters of fabric up to till date with the average price of 200 INR, which is 5INR
higher than the price in 2019.

The marketing executive rated both the agents with 4 stars out of 5.
 lOMoARcPSD|24889315

5.2 Interpretation

From the above data we find that:

AVERAGE PRICE OF AGENTS IN 2019

average price 2019

195
185 186
200
180
160 133.5
140 123
120
100
80
60
40
20
0
s0 AX S ka cy m
on LE ho en ia
ss IM TI s g an
Cu B EX A A
n TO E
T al ra
m
Ia it ub
COP M i S
S ra
Du

In 2019,

UK : There was no agents in UK market

ROW : In case of Tobimax, there is a very high competition in the market. Purchasing power
of the Mexico is not so good, as compare to Australia. So, the company recovers its
profit margins from other market (Australia).

BD : Both Mittal and Ashoka are the agents of domestic markets and they cover a large
area of Indian garment industry with a profitable price of 195, 186 respectively
although in the competitive market.

CW : Durai Subramaniam, in 2019 as the market in on boom level. In corporate wear

market compromises with the price (133.5 INR) because they ordered in bulk
quantity.
AVERAGE PRICE OF AGENTS IN 2021

average price 2021

250 214
200 190
187
200
140
127
150
AVERAGE PRICE

100

50

0
s AX S ka cy m
on LE ho en ia
ss IM XTI s g an
Cu TO
B
T E A
a lA am
n
Ia E it br
OP M S u
SC ra
i
Du
AGENTS

in 2021,

UK : Ian Cussons, grab deals with NEXT (women’s, men’s, boys wear) garment
house with a great profitable amount of 214 INR.

ROW : TOBIMAX, high competition market and also the market in still in growing
stage so the average price (127 INR) may not increase as much as expected due to
COVID-19. For Scope Textile it increases up to 190 INR.

BD : Ashoka & Mittal Agency, they both increases the profitability for GBTL, by
increases the average price up to 190 & 200 INR per meter of fabric.

CW : Durai Subramaniam, he also serves GBTL a great hike to average price of

corporate wear market up to 140 INR. As the market is in growing stage.
 lOMoARcPSD|24889315

COMPARE AVERAGE PRICE OF AGENTS (2019 & 2021)

COMPARE AVERAGE PRICE OF AGENTS

240
200
160
120
80
40
0
s ka y
s on A
X
L ES o nc i am
us IM TI sh ge an
C B X A lA m
n ti ta ra
Ia TO TE u b
M S
PE rai
O u
SC D

average price 2019 average price 2021

UK : Ian Cussons, a new agent grabs a deal of average price of 214 INR in UK market, in a
highly competitive market. The average price is higher than the other countries are due to the
purchasing power of the country. Although the agent has no experience of product – PV
suiting but he connects one of the major brands with GBTL named NEXT.

ROW : TOBIMAX, as compare to 2019, the average price of 2021 is 127 INR, it hikes with
4 INR. The Mexico-city has low purchasing power and there is high competition, they
compromise with the quality. The market is highly price sensitive. The company plays for its
existence in the market they compromise with the price and profit margin.

Scope Textiles, the average price in 2021 is 187 INR which is 2 INR more than the average
price of 2019. Here in Australia the purchasing power is a bit higher than the Mexico market
so the average price of fabric is more profitable / there is a high profit margin for GBTL. And
from this market the ROW recovers its all profit, which it loses in Mexico market.

BD : Mittal Agency & Ashoka, both the agents deal with the domestic market in India.
They give a hike in price with 4 & 5 INR respectively. They both have contact of more than
5 years with the GBTL ltd. Also give the good order quantity as well as price range.

CW : Durai Subramaniam, have the relations with GBTL since more than 5 years. He deals
with the corporate wear segment and as compared to 2019 gave the hike of approx. 7 INR
with the price of 140 INR. Also offered a bulk quantity of fabric for the renowned customers
like Black-Berry, SRF, Whirlpool, MRF, Maruti, Renault, Airlines - Vistara, Spice Jet,
Indigo, etc.
AVERAGE ORDERS OF AGENTS IN 2019

average Orders 2019

900,000
900,000
800,000
700,000 600,000
600,000
500,000
400,000
300,000 200,000
150,000
200,000 100,000
100,000
0
s0 AX S ka cy m
on ILE ho en ia
ss IM T s g an
Cu B EX A lA
n TO E
T a ra
m
Ia it ub
COP M i S
S ra
Du

In 2019,

UK : there is no agent n UK market IN 2019.

ROW : Tobimax & Scope Textiles, as in 2019 the market was on its boom level so
they place order of 6 lac and 9 lac meters of fabric. Which is the highest form all the
segments of export marketing.

BD : Mittal Agency & Ashoka, they placed the order of about 2 lac and 1.5 lac
meters of fabric in domestic market.

CW : Durai Subramaniam, for corporate wear segment he grabs the order limit of
1 lac meters of fabric for the company.
 lOMoARcPSD|24889315

ORDERS BY AGENTS IN 2021

Orders in 2021
1,600,000 1,500,000
1,400,000
1,200,000
1,000,000
800,000
600,000
600,000
400,000 300,000 300,000
225,000
200,000 80,000
0
s AX S ka cy m
on LE ho en ia
ss IM XTI s g an
Cu TO
B
T E A
a lA am
n
Ia E it br
OP M S u
SC ra
i
Du

UK : Ian Cussons, as he was appointed as an agent of GBTL from April, 2021.

He adds on some major customers and get the order of about 15 lac meters of fabric,
which the highest in the segment of marketing of GBTL up to till date (Oct. 2021) and
also have the possibility of getting more orders.

ROW : TOBIMAX & Scope Textiles, as it’s the growth stage of the market in all
over the world after COVID. So, they get the orders of about 3 lac and 6 lac meters up
to the till date, and have the possibility of getting more orders in this financial year.

BD : Ashoka & Mittal Agency, they get the orders of about 2.25 lac and 3 lac
meters.

CW : Durai Subramaniam, he placed the order of about 80, 000 meters of fabric
in this year and might have the possibility of getting more orders like that, so as to
achieve a new record.
 COMPARE ORDERS OF AGENTS

Chart Title
1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0
s AX S ka cy m
on ILE ho en ia
ss IM T s g an
Cu B EX A A
n TO T al am
Ia E it br
COP M i S u
S ra
Du

average Orders 2019 average Orders 2021

UK : The agent (Ian Cussons) was assigned on April, 2021 and till date he got the order of
15 lac meter form different customers and order execution process is still going on.

ROW : Due to covid the market is not on boom, it is on growing stage so Tobimax placed
the order of 3 lac and scope textile placed the order of 6 lac meters and some more orders are
in pipeline.

BD : Both Ashoka & Mittal Agency, are placed the order of 2.25 lac and 3 lac meters
respectively. And more new orders are in pipeline.

CW : Due to the impact of covid many of the corporate houses trying to save its expenses by
not offering their employee benefits like their uniforms. So, it is the main factor of declining
the order volume.
Product knowledge

Product Knowledge Rating

5
 lOMoARcPSD|24889315

0
ka cy m
ho en ia
ns AX LE
S
As A g an
s so IM TI a l m
Cu B E X it ra
n TO T M S ub
Ia E i
OP ra
SC Du
According to the marketing managers of different markets they rated the agents out of
5 stars:
UK :
• Ian Cussons : 4 Stars
ROW :
• Tobimax : 3 Stars
• Scope Textiles: 3 Stars
BD :
• Ashoka : 4 Stars
• Mittal Agency : 4 Stars
CW :
• Durai Subramaniam: 4 Stars
Timely Payments

Timely Payments Rating

5
According
4 to the
marketing
managers
3

ka cy m
ho en ia
ns AX S s g an
so IM ILE A
al
A m
Cu
s B XT it ra
n TO TE M S ub
Ia E i
OP ra
0 SC Du
 of different markets they rated their agents for timely
payments. In export marketing they usually got
the payment in letter of credit or in advance payment format which is the secured
mode of payment.
In domestic market only sometimes, there is an issue generated in payments.
 lOMoARcPSD|24889315

Overall Rating

Overall Rating
6

0
ka cy m
S ho en ia
AX ILE As g an
IM lA am
ns B XT it
a
br
s so TO TE M S u
Cu E i
n OP ra
Ia S C Du
According to the marketing managers of different markets they rated the agents as
sown in the above chart.
In domestic market, Durai Subramaniam, Ashoka and Mittal Agency got 4 stars out of
5, because there are sometime payment issues such as delay in payment.
RECOMMENDATIONS

 ROW- Rest of World

The agent’s name – TOBIMAX have to increase his average price with time and
have to increase his order capacity from the Mexico market.
At present his average price is 125 INR and also the order capacity of 3 lac meter of
fabric.

 BD – Brand Domestic

The agent’s name – Ashoka have to introduce more customers to the marketing team
of GBTL and trying to add on more customers so as to increase the orders. As from
past 2 years, he has only one customer.

I. Increase product knowledge

II. Hiring more agents in all over the world, so as to penetrate the market or have
to contact with the customer directly in foreign market
III. Directly connects with the customers in domestic market to inc. the profit
level
IV. Agents should add more new customers
V. Introduce New product range to the customers