working of an export house

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Working of an Export House A Case of Ahuja Overseas

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Introduction:

Company’s profile:

AHUJA OVERSEAS was established in 1986 in Jaipur, India. It is run by Mrs Archana Ahuja, Mr Vijay Ahuja and Mr Ashish Ahuja. It is primarily manufacturers and exporters of women's, kids garments and home furnishing.

It is an ISO 9001:2000 certified (Quality Management System) and WRAP certified (Certification of lawful, humane and ethical manufacturing) company. It is located in Malviya Nagar Industrial Area, Jaipur and have a manufacturing capacity of 1,00,000 units per month.



Cont’d

Infrastructure:• 500 Sewing machines on site.

• 25 Ari Embroidery Machines

• 25 Chicken Embroidery Machines

• 650 conveyer belt needle detector Machine

• It has its own washing, dry cleaning and finishing units

• Total workforce includes 230 people and an additional 200 people

working on contractual basis.

Major Countries of export:

• Europe • Australia

• Japan • Argentina

• USA • Switzerland



Cont’d

AHUJA OVERSEAS Customers:

Customers Countries

Rapsodia 95 Alex Benditopie Eachet Natura Lelisblanc Funky People Tamachi Adventure group:

- Capri- Gloria- Wagan

Argentina Argentina Argentina Argentina Switzerland Spain Brazil US Japan

Japan



Cont’d

Background of the problem task undertaken:

1. It is an opportunity to do the summer internship in AHUJA OVERSEAS which is a manufacturer & exporter of Woven garments and Knitted garments. Project on Export house is uncommon & that on an Apparel Export House is rare.

2. Learning the step-by-step processes & procedures to be followed in an export contract is a crucial activity in export procedure. So, selecting a project on export procedure & documentation is an obvious & important decision.



Cont’d

Project Objectives:

a) To understand the Apparel Business Processes.

b) To understand the working of various departments of AHUJA

OVERSEAS contributing towards processing of an export order.

c) To understand the role of Merchandisers in AHUJA OVERSEAS.

d) To study the Export procedure and Documentation in AHUJA

OVERSEAS.



Cont’d

Research Methodology:• Our primary objective of doing this project is to get the first hand

knowledge of functioning of an export house. Since we are not comparing two different entities on the basis of their financial results, rather we are learning the export procedure. Hence exploratory research design is the need of the hour.

• Further there are few reasons which made me to use Exploratory Qualitative research:

• It is not always desirable or possible to use fully structured or formal methods to obtain information from respondents.

• People may be unable & unwilling to answer certain questions or unable to give truthful answers.

• People may be unable to provide accurate answer to question that tap their sub consciousness.



Cont’d

Thus, project research methodology is as follows: • In Primary data, Qualitative research through In-Depth Interviews has been

adopted. For interviews non– structured open-ended questions were used.

• In Secondary data, both internal & external research was done. For internal

research Ready to use documents available with the organization were used. For external research Internet website & published books were consulted.



Cont’d

Limitations:

1. Concern about the validity.

2. Labour intensive data collection.

3. Conclusion & interpretation of qualitative research.

4. Need for training in qualitative research.



Analysis and Findings

1. To understand the Apparel Business Process/ work flow.

2. To understand the working of various departments of Ahuja Overseas contributing towards processing of an export order.

3. To understand the role of Merchandisers in Ahuja Overseas.

4. To study the Export procedure and Documentation in Ahuja Overseas.

a) Pre – Shipment procedure

b) Post – Shipment procedure



Cont’d

1. To understand the Apparel Business Process/ work flow:



Cont’d

A. Description of the Buyer Side of the Apparel Supply Chain:• Apparel Design• Production of samples and order collection• Apparel Retail

B. Description of the Supplier Side of the Apparel Supply Chain:• Fibre and Yarn Production• Accessory Production

C. Description of the Manufacturer Side of the Apparel Supply Chain:• Fabric production• Apparel Production• Cutting and stitching• Finishing, Packaging and Dispatch of Apparel



Cont’d

2. To understand the working of various departments of Ahuja Overseas contributing towards processing of an export order.

A. Departments Functions and Operations:

• Fabric (Gray) Department

• Washing and Dyeing Department

• Fabric Checking Department

• Cutting Department

• Stitching Department

• Finishing and Packaging Department

• Production Planning and Control (PPC) Department



Cont’d

B. Manufacturing Process and Production:

Garment Process Flow Chart:



Cont’d

3. To understand the role of Merchandisers in Ahuja Overseas.

A. Merchandising Department

B. Marketing Design

• Spring

• Summer

• Fall/Autumn

• Holiday/Winter



Cont’d

4. To understand the Export Procedure in Ahuja Overseas.

A. Pre-Shipment Procedure:

• On receiving the requisition & purchase order from merchant, documentation department issues an invoice. Two invoices are prepared i.e. commercial invoice& custom invoice.

• Packing list is prepared which details the goods being shipped.

• GSP certificate is prepared if the consignment is exported to EU or

countries mentioned in the GSP list.• Buying house inspects the goods & issues an inspection certificate. • Certificate of origin is also issued and attached, if required.



Cont’d

B. Post-Shipment Procedure:

• TT (telegraphic transfer) i.e. Wire Transfer – (Advance payment, as

per the clause– 50% advance & remaining 50% on shipment)

• Letter of Credit: A letter of credit can be defined as “an undertaking by

importer’s bank stating that payment will be made to the exporter if the required documents are presented to the bank within the variety of the L/C”.



Cont’d

Export Documents:

1. Invoice (Commercial invoice & Customs invoice)

2. Packing list

3. Certificate of Inspection

4. Certificate of Origin

5. GSP(Generalized System of Preference)

6. IEC Certificate

7. Wearing Apparel Sheet

8. Bill of Lading

9. Airway Bill

10. Mate's Receipt

11. Shipping Bill

12. Letter of Credit



Learning’s

• International Trade process.

• Working in various department of an Export House.

• The role of the merchandiser in different department.

• Learnt about garment industry.

• Apparel production process.

• International trade documentation.

• Learnt about working of an Export House.



Conclusion

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

• The other basic objective of the study is to know about the merchandiser’s role in the export house and it is found that they play a very important and wide role from the starting of the order generation to the shipment and provide linkage between various departments.

• The export procedure of the firm has been seen clearly and other related aspect has been known. The documents that are required for the export are very much in numbers.

• This makes the export procedure complex but with this study we are able to know about the export procedure and the various documents that are required for the export.



Bibliography:

• Puri, V. K., Exporters’ Guidelines, A Basic Book on How to Export as per Govt. Policy & Procedures, 2nd Edition, JBA Publishers, 2008-09.

• Paul, Justin & Aserkar, Rajiv, Export Import Management, 2nd Edition, Oxford University Press, 2009, Chapter – 2, pp. 17-29.

• Malhotra, Naresh K., Marketing Research, An Applied Orientation, Fourth Edition, Pearson Prentice Hall, 2005, Part II, pp. 71-340.

• Balagopal T.A.S, “Export Management”, Himalaya Publishing House, nineteenth edition 2007 • Jeevanandam.C., “Foreign Exchange- practice, concepts and control”, Sultan Chand and Sons, tenth

edition 2007 • Kothari C.R., “Research Methodology, Method & techniques”, New Age International. Pvt. Ltd,

Second Edition, 1985 • Mahajan M.I.,” A guide on export policy, procedure and documentation”, Tata McGraw hill

publishing company ltd, Third Edition 2005 • Dr.Varma.M.M. & Aggarwal R.K, “Foreign Trade Management”, King Book, second edition 2006 • Puri, V. K., “Exporters’ Guidelines, A Basic Book on How to Export as per Govt. Policy &

Procedures”, 2nd Edition, JBA Publishers, 2008-09 • Paul, Justin & Aserkar, Rajiv, “Export Import Management”, 2nd Edition, Oxford University Press,

2009, Chapter – 2, pp. 17-29. • http://www.slideshare.net/kavi7689/36247756-exportproceduredocumentation


http://www.slideshare.net/kavi7689/36247756-exportproceduredocumentation


Thank you.. Presented by

Vishal Asauliya

MFM 2011-2013


working of an export house

Business

apparel export house

export order

case of ahuja overseas

export procedure documentation

export contract

dispatch of apparel

apparel supply chain

control ppc department