Beruflich Dokumente
Kultur Dokumente
PROJECT
HIND AND HIND BROS.
(Kaftan and Sarees Exporters)
GROUP A2
Shifa Dhorajiwala- 9
Dhruvi Doshi 10
Shamin Fernandes 12
Rohil Gandhi 13
SYBMS GROUP A2 EXIM PROJECT
Jay Gogri 14
Omkar Hinduja 15
CONTENT
1. EXECUTIVE SUMMARY
2.BUSINESS HISTORY
3.MARKET RESEARCH AND EXISTING DEMAND
4.MARKETING DECISIONS
5.LEGAL DECISIONS
6.MANUFACTURING AND OPERATIONS
7.PERSONNEL STRATEGIES
8. FINANCIAL DECISIONS
I.
EXECUTIVE SUMMARY:
Target markets:
Africa Nigeria and Senegal
These countries however pose some risks due to local currency rate
fluctuation, civil war threats and market fluctuations.
Note: Arabic Kaftans are the most common form of clothing worn by the Arabs.
The unique advantage of Hind and Hind Bros. lies in its expertise in designing for
African countries, thus their core expertise lies in their workmen who are
specialists in embroidery and designing which caters to these markets.
C. Production Facilities:
The firm is not a full-fledged manufacturing unit but rather a
manufacturing workshop which caters to embroidery. The workmen
(embroidery specialists) get the suits from their respective workshops
and bring it to the Byculla office which has an adjacent warehouse
wherein the goods are worked on andthen packed and made ready for
export. As soon as the consignment is ready for exporting, they are
dispatched and sent for storage to Mohatta Market warehouse. It is
then transported from the warehouse on the day of shipment and sent
to the Mumbai Port trust for shipping. After all the necessary
documentation has been done, the goods are shipped to their
destination. After arrival at the destination port, they are transported to
the importers warehouse. Hence, Hind and Hind Bros. does not store
the goods in warehouses of the importers country; the agent collects
the goods and delivers it to the importer.
Embroidery
Specialist
Workstations
Office
Packaging &
Storage Area
Back exit
Hind and Hind Bros. faces stiff competition in the foreign markets
from both, local as well as international players. In the embroidered
sarees and kaftans sector, their main foreign competitors are from
China and Thailand.
China has been a major player in the African textile market from
2005 onwards. But because of the Credit act and the global
economic crises during that time, the African economy slowed down
during the latter part of 2008 and during 2009, with the resultant
decline in demand for clothing products. China, however, is still the
major source of the clothing market to Nigeria.
Target Market
Our Primary target market are the African countries of Nigeria and Senegal. 65%
of our Kaftans exports are to these markets. The secondary markets for our
products would be the Middle Eastern countries such as Dubai and Saudi Arabia.
Tertiary markets would be other Arabian countries or countries with a lot of
Islamic population as our product is most widely used only by them.
B.
The products of Hind and Hind Bros. has a great demand, but at the same
time faces healthy competition from its rivals. The major foreign
competitors are from China and Pakistan.
PEST FACTORS
There are high foreign exchange fluctuations. Hind and Hind Bros.
importers sell their goods in local currencies and invoicing is done in USD.
Thus Eurofluctuations versus the USD do impact sales, demand and the
local competition. Apart from this, recent fluctuation of the Indian Rupee
(INR) has also affected the companys costing.
Hind and Hind Bros. are given orders and paid in USD and in Euros. Hence,
if the exchange rate while placing the order is high, but during actual
payment is lower, then the company loses out on that difference. Suppose
the exchange rate during payment is higher than that at the time of order
placement, then the company earns more than they expected or were
supposed to get. Hence, exchange rate repatriations affect the companys
revenues.
Hind and Hind Bros. uses two channels of distribution. it uses agents all over
Africa who use the DTH selling method. Its products are sold in a large
number of retail outlets including single stores.
Documentation:
The main documents used for exports are:
1. Commercial invoice
2. Packing list
3. Certificate of inspection
4. Insurance certificate
5. Bill of lading
6. Airway bill
B. PRICING STRATEGIES:
Hind and Hind Bros. uses a cost-plus pricing strategy. The percentage
profit on each item however varies from item to item depending on terms
or trade and costs of raw materials. However, profit on each product
ranges from 2-12%. The price elasticity of its products can be quite high,
since even though its products are of extremely high quality local as well
as international future competition is possible.
This is because their products are used by the masses in most countries.
C. PRODUCT STRATEGIES:
Raw materials are sourced from Bombay, Surat, and Varanasi. Embroidery is
done in the Mumbai workshops.
D.PROMOTION STRATEGIES:
V. LEGAL DECISIONS:
A. AGENT/DISTRIBUTOR AGREEMENTS:
While exporting goods there is only one agreement with the distributor or the
agent and that is forward contract which is at the time of negotiation. 40% of
the agreements are done with Advance Payment terms, and 10% are done
with letter of Credit terms. Sometimes, on sight Documents against Payment
through banks is also used.
B. CERTIFICATIONS:
To export to Africa no certification is required whereas to export to MiddleEast a certificate of origin is required and also a legalized document from the
local consulate of the country in India is required. For example to export to
Dubai a legalized document is required form Dubai consulate in India and
same follows with many Arabic countries.
D.
EXPORT IMPORT REGULATIONs
Export Countries and EXIM Laws:
The company is into exports and its major exports cater to African Markets of
Nigeria and Senegal. 65% of the exports go to Western, Central and Eastern
parts of Africa which includes Nigeria and Senegal whereas 35% goes to
middle-eastern markets such as Dubai and Saudi Arabia. The EXIM laws
require payment of import duty on the product as well as the VAT. But it is the
responsibility of the importer to take care of the laws as terms of Forward
Contract states that all duty is to be paid by the importer.
E. DISPUTE RESOLUTION:
There have been no disputes so far, however if at all they occur, they are first
resolved through mutual understanding. If not resolved through mutual
understanding, an arbitration clause is available in the agreement signed by both
parties, which can be done through the Indian Merchants Chamber (IMC).
E.Transportation
. All our consignments are transported to the port by Mars Shipping
Agency, who handles all our domestic contracts. Hind and Hind Bros.
export their goods to the following places:
Africa Nigeria, Senegal
Hind and Hind Bros. exports their goods by ABC Cargo services which offer air
and sea cargo services which always results in time and cost
efficiency.After the goods have arrived at the destination port, they are
transported to the importers warehouse.
Hind and Hind Bros. gets the normal incentives that the Government gives to
all exporters.
A.
Pro forma financial statements and
projected cash flows assuming export activity
B.