Indian textile industry: The Indian textile industry contributes about 14 per cent to industrial production, 4 per cent

to the country's gross domestic product (GDP) and 17 per cent to the countrys export earnings, according to the Annual Report 2009-10 of the Ministry of Textiles. It provides direct employment to over 35 million people and is the second largest provider of employment after agriculture. The industry is expected to grow from the present US$ 70 billion to US$ 220 billion by 2020, according to Mr Dayanidhi Maran, Union Minister of Textiles. Major Developments The total cloth production has increased by 2.9 per cent during December 2010 as compared to December 2009, according to the Ministry of Textiles. The highest growth was observed in the powerloom sector (3.7 per cent), followed by handloom sector (3.3 per cent). The total cloth production during April-December 2010 has increased by 2.3 per cent compared to the same period of the previous year. The production of spun yarn and cotton yarn increased by 6.0 per cent and 8.6 per cent, respectively during December 2010 as compared to December 2009. The total textile exports during April-September 2010 (provisional) were valued at US$ 11275.58 million as against US$ 10115.78 million during the corresponding period of the previous year, registering an increase of 11.47 per cent, as per the latest data released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), Kolkata. Cotton textiles have registered a growth of 10.8 per cent during April-January 2010-11, while textile products including wearing apparel have registered a growth of 4.3 per cent, as per the Index of Industrial Production (IIP) data released by the Central Statistical Organisation (CSO). India has the potential to increase its textile and apparel share in the world trade from the current level of 4.5 per cent to 8 per cent and reach US$ 80 billion by 2020, as per a Ministry of Textiles press release dated November 2, 2010. Technical Textile Segment According to the Ministry of Textiles, technical textiles are an important part of the textile industry. The Working Group for the Eleventh Five Year Plan (2007-12) has estimated the market size of technical textiles to increase from US$ 5.29 billion in 2006-07 to US$ 10.6 billion in 2011-12, without any regulatory framework and to US$ 15.16 billion with regulatory framework. The Scheme for Growth and Development of Technical Textiles aims to promote indigenous manufacture of technical textile to leverage global opportunities and cater to the domestic demand. Further, the government is set to launch US$ 44.21 million mission for promotion of technical textiles, while the Finance Ministry has cleared setting up of four new research centres for the industry, which include products like mosquito and fishing nets, shoe laces and medical gloves. As per a joint study of the Ministry of Textiles and an industry body, the global technical industry is estimated at US$ 127 billion and its size in India is pegged at US$ 11 billion. Government Initiative According to the Ministry of Textiles, investment under the Technology Upgradation Fund Schemes (TUFS) has been increasing steadily. During 2010-11 (upto June 2010, provision figures), 256 applications have been sanctioned at a project cost of US$ 89.2 million. The cumulative progress as on June 30, 2010, includes 28,302 applications sanctioned at a project cost of US$ 46.71 billion.

The Ministry of Textile has sanctioned a total of US$ 133 million under TUFS during September 2010. The Scheme for Integrated Textile Park (SITP) was approved in July 2005 to facilitate setting up of textiles parks with world class infrastructure facilities. Forty parks have been sanctioned till December 31, 2010 in nine states with total project cost of about US$ 931.1 million with Government contribution of US$ 320 million. When fully functional the parks would have an investment of US$ 4.3 billion. Further, 100 per cent foreign direct investment (FDI) is allowed in the textile sector under the automatic route. The Government has launched the Integrated Skill Development Scheme for the Textiles & Apparel Sector, including Jute & Handicrafts, with an objective of capacity building of Institutions providing skill development & training in Textiles Sector. Under this Scheme, the Government has envisaged skill development of 2.7 million persons with an overall cost of US$ 530 million over the next five years. Investments The textiles industry has attracted FDI worth US$ 934.04 million between April 2000 and January 2011, according to data released by the Department of Industrial Policy and Promotion (DIPP). As part of its strategy of innovative denim products, Arvind Ltd has tied up with Birla Cellulose to exclusively produce excel denim fabric. The company expects excel denim to do business worth US$ 50 million in the next two years. Textiles maker and retailer Raymond plans to invest US$ 5.6 million to US$ 6.7 million in 2011-12 to expand its accessories business and add sunglasses to its range, said Gautam Singhania, chairman and managing director of the company. Technical textile manufacturer SRF Ltd plans to invest US$ 14.9 million on expansion projects, which includes a new plant in South Africa and another in Gujarat. NSL Textiles has set up a textile processing facility at Chandolu near Guntur, Andhra Pradesh with an investment of US$ 64.23 million. TT Ltd, an integrated textile and knitwear manufacturing and exporter, plans to invest US$ 33.46 million to enhance its yarn making capacity and retail venture. Textiles company, Alok Industries will be investing US$ 193.46 million over the next two years to increase capacity across its product portfolio. The amount would be spread equally for the two-year period with an investment of US$ 96.73 million being made each year.

The Road Ahead The Synthetic and Rayon Textile Export Promotion Council (SRTEPC) has set a target to more than double the export of man-made textile from the country. Presently, the global manmade fibre (MMF) trade accounts for 60 per cent of the total trade in textiles. SRTEPC plans to increase exports to US$ 6.2 billion by capturing four per cent market share by 2011-12, as per G K Gupta, Chairman, SRTEPC. With an increased focus on catering to the domestic market, the denim industry is India expects the production capacity to rise by 100 million metres by 2011. According to the Textile Association of India (TAI), the denim manufacturing capacity, which stands at 600650 million metres per annum, is set to witness an addition by another 100 million metres wherein 70 per cent focus will be on the domestic market.

Export Department Export department plays a vital role in any organization. Arvind export department is headed by the export manager. The export manager supervises all the marketing and export activities. Export manager is also responsible for the exploration of local and foreign markets. He is also making efforts for the development and the progress of the company.

Functions following are the main functions of the export department. Export department is responsible for the production planning and the production follow-up with the mill. Customer correspondence as well. Export department also follow-up the local sale and purchase of the yarn. The important function of the export department is to make shipment schedule and the planning. Visiting to the existing and new customer. Providing timely information about the production of the products to the customers which is also providing a service to its customers and promoting the company image. Improving the quality of the products with collaboration with the buyer and the production department. Bank documents preparation and the follow-up. Preparing the custom documents.

 Dealing with the agents and providing timely information to the parties. B/L follow-up with the shipping lines. Export updating system is also the responsibility of department. Preparing the quality analysis report and sending them to higher authorities. Maintaining the complete sale and purchase records. Export department is helping in improving the quality and betterment of the products and the company. Providing timely information to the clients is the main service provided by the Arvind mills Ltd export department.

Export Documentation Export procedure is a very lengthy process. It involves a number of documents required by the importer from the exporter. Arvind mills Ltd export department carefully handle all the steps involve in it. Because a little bit of mistake can cause a great loss to the exporter and the importer. Indent Sales Contract Letter of Credit Custom Documents Packing List Bill of Lading Bill of Exchange Certificate of Origin Inspection Certificate Form E

 Form M Shipping Bill

Description of Export Documentation

Indent Indent is the first export document which is send by the agents to export department. After the careful analysis of all the terms and conditions such as the quality description the selvedge, shipment date, piece length, piece per unit, the packing and payments terms. It also contains the buyer name and the reference number of buyer or agent. Sales Contract The export department after the careful analysis of indent issues the sales contract. As they have the products and condition of the indent, such as the quality, packing, payment terms, commission, shipment date and the price of the product. Issuing sales contract is the confirming the sale of the products to the buyer on the specified price. If there is changing made by the buyer or agent, so the later revised sales contract is issued by the export department. In which they can revised any thing, the shipment schedule, the price and the product specification. Export department handle carefully the steps of that procedure. Also the contract copies are sent to the agent, the buyer, the accounts and the audit department of the Arvind for their record purpose.

Letter of Credit Letter of credit is very important documents in the whole export procedure. Because without

this the process could not be complete. L/C is a written instruction issued by buyers bank, authorizing the export to draw in accordance with the terms and stimulate legal forms that bill will be honored. In the L/C all the term and the conditions are given by the buyer. What documents he needs. In the L/C there are important things mentioned there. The buyer name is there in the L/C. The bank of the importer is also mentioned. The importer name and address is also given. L/C number is mentioned on the top or the L/C. Issuing date of the L/C, the expiry date of the L/C, the amount of L/C, the quantity of the products. The complete description of the products and the rate. The shipment date is also mentioned. The port is given there in L/C. The shipping line is given, so the exporter only sent the goods on that specific shipping line. L/C terms are given; either it is 120 days, 90 days or sight from B/L date. On the L/C the rate per unit and the shipment schedule is given on what date the products would be shipped in what quantity. Trans shipment or the partial shipment allowed or not is also there in the L/C. All the documents such as the invoice, the packing list, the certificate of origin and other inspection certificate are also mentioned as required by the importer.

Custom Documents The custom documents are very important because it provide the evidence that goods have been transported and it enables the importer to receive the goods from the custom authorities. As the order placed by the importer is ready on the due date, the export department issues the

dispatch order to the mill. That the following quality should be dispatched on the containers specified on this L/C. The goods are loaded on the specified containers and they are sent to the Karachi port on the specified line. BT mostly does its shipment through the shipping companies. The shipping lines charge their freight and other charges are paid the agents as well as for clearance of the goods from the port. The agents handover the documents which involve packing list and invoices to the shipping lines. As the trailer number, the container number E form number, quality and the quantity is completely mentioned on this invoices. Mode Document Carrier By sea Bill of lading Shipping lines By Rail Receipt Railway service By Road Road way bill Transporter By Air Air way bill Air lines

Packing List Packing list is a document which involves all the complete list of the goods packed in the particular shipment. It is very important document. It provides a convenience to the shipping and the clearance authorities. Features of packing list It usually shows the marks a number mentioned on the packages. It shows the weight also. Each package is marked by a number. It shows the contents of each package, what is nature, quality and quantity of the package.

 It provides a linkage with the other documents to reference to the invoice number, date, letter of credit number, date and vessel name. Bill of Lading Bill of lading is one of the most important documents in the whole export documents. Because without this the importer cannot receive their goods from the destination port. BT first of all draft the bill of lading and that is sent to the shipping line. Bill of lading also contains the specifications related to the importer and the exporter. The name of the exporter, place, the importer, the bank, the quantity is mentioned, the quality is mentioned, the quality with all specifications required by that, the total value of the goods which are exported. The date of the bill of lading is mentioned. The shipping line and vessel name is given on B/L. Bill of lading is a comprehensive documents that is issued by the shipping line. The date of shipment is also mentioned on that. Without this the importer cant clear the goods from the destination. BT export department also very quick in follow up of the B/L because they have to transfer the information to the parties. Bill of Exchange It is unconditional order in writing, addressed by a person to another, signed by person giving it, requiring the person to when it is addressed to pay on demand or at a fixed determinable future date. When the L/C is opened the B/E must be strictly drawn according to the terms and conditions of the creditor may be drown on the request of the applicant or on the bank request through which the credit is opened. B/E is also a important document of export.

Certificate of Origin Certificate of origin shows that the good which are being exported are originate from a country form which importer is allowed. These are required by the authorities in the importing countries. In order to satisfy and support a claim for the import duty. The certificate of origin may also be made by the consultants of the importing country in the form of consoler invoice or legalize the exporters commercial invoice. When explorer called

for L/C, of is with the other documents by reference to the invoice number, L/C number and by quoting shipping marks and number in order to identify the goods. Inspection Certificate Certificate of inspection is also a important document, it is in those consignments where the importer wants to assure himself, about the shipment of the correct goods, in terms of the quality, description quantity and size. The documents should specifically identify to the goods by having a reference to the marks and numbers of the package and linkage to the other documents by reference to invoice number, the letter of credit number, the vessel name and the shipping line. Form-E Form-E is a document issued by the exporter bank. Through form-E the SBP controls the overall exports of the country. The form-E declares that the export information given on the form-E are correct and will submit the duplicate and triplicate copy of this form to authorized bank. Form-E contains the following important informations. Description of the goods, the quality of the goods exported. The quantity of the goods. The terms of the L/C. Destination of the goods. The consignee bank. The importer bank name through countries the payment would be released. The invoice value of the goods in the exported. The port form where the good are shipped. The place form where good are cleared. Date of the form-E is also on this form.

Form-M

It is also an important. It is used to play the commission to the agents. BT receive this form the agents. On this the amount of the commission is mentioned against invoices. Shipping Bill The customer clearing agents issue the shipping bill. It contains the complete information about the export bank the importer name, the exporter name, the weight of the goods, (Net and gross weight), number of packages, amount in US$, quality of the goods, the container number, the exchange rate and rupee amount.

Core Competencies The core competencies of the firm includes Technology Work Force Facility Market Experience