INDIA’S TEXTILE INDUSTRY

The Textile Industry occupies a vital place in the Indian economy and contributes
substantially to its exports earnings. Textiles exports represent nearly 30 per cent of the
country's total exports. It has a high weight age of over 20 per cent in the National
production. It provides direct employment to over 15 million persons in the mill, power
loom and handloom sectors. India is the world’s second largest producer of textiles after
China. It is the world’s third largest producer of cotton-after China and the USA-and the
second largest cotton consumer after China. The textile industry in India is one of the
oldest manufacturing sectors in the country and is currently it’s largest.

The Textile industry occupies an important place in the Economy of the country because
of its contribution to the industrial output, employment generation and foreign exchange
earnings. The textile industry encompasses a range of industrial units, which use a wide
variety of natural and synthetic fibers to produce fabrics. The textile industry can be
broadly classified into two categories, the organized mill sector and the unorganized mill
sector. Considering the significance and contribution of textile sector in national economy,
initiative and efforts are being made to take urgent and adequate steps to attract investment
and encourage wide spread development and growth in this sector.

COTTON PRODUCING INDIAN STATES

Current Scenario of Textile Industry

The Indian textile industry contributes substantially to India’s export earnings. The export
basket consists of wide range of items containing cotton yarn and fabrics, man-made yarn
and fabrics, wool and silk fabrics, made-ups and variety of garments. India’s textile
products, including handlooms and handicrafts, are exported to more than hundred
countries. However, USA, EU Member States, Canada ,UAE., Japan, Saudi Arabia,
Republic of Korea, Bangladesh, Turkey, etc are the major importers of our textile goods.
During the year 2005-06, the share of textiles exports including handicrafts, jute, and coir
in India’s total exports was 16.63%. India’s textiles exports have registered strong growth
in the post quota period. Textiles exports grew from US$ 14.03 billion in 2004-05 to US$
17.08 billion in 2005-06, recording a growth of 21.8 per cent. Therefore, the Government
has fixed a higher target of US$ 19.73 billion for the year 2006-07.

Production of Yarn

In India production for the textile group of industries showed a surge in the entire sector.
There was a significant increase in respect of textile products 16.4 per cent and cotton
textiles 8.5 per cent yarn production increased by 5.1 per cent due to increase in cotton
yarn manmade filament yarn production nevertheless, there was a decline in respect of
blended and 100 per cent Non-cotton yarn and manmade fibers. The share of textile sector
in FDI was 1.02 per cent (in terms of amount) during 2005-06 as against 4.29 per cent in
the year 2004-05.
Textile Exports
Textile exports are targeted to reach $50 billion by 2010, $25 billion of which will go to
the US. Other markets include UAE, UK, Germany, France, Italy, Russia, Canada,
Bangladesh and Japan. The name of these countries with their background can give
thousands of insights to a thinking mind. The slant cut that will be producing a readymade
garment will sell at a price of 600 Indian rupees, making the value addition to be profitable
by 300 %.Currently, because of the lifting up of the import restrictions of the multi-fibre
arrangement (MFA) since 1st January, 2005 under the World Trade Organization (WTO)
Agreement on Textiles and Clothing, the market has become competitive; on closer look
however, it sounds an opportunity because better material will be possible with the
traditional inputs so far available with the Indian market. At present, the textile industry is
undergoing a substantial re-orientation towards other then clothing segments of textile
sector, which is commonly called as technical textiles. It is moving vertically with an
average growing rate of nearly two times of textiles for clothing applications and now
account for more than half of the total textile output. The processes in making technical
textiles require costly machinery and skilled workers. Within Textiles Cotton Textiles
account for almost 50% of exports (USD 5.08 BN) indicating the importance of the Cotton
Textile sector in the Indian Textile industry. Global trade in cotton textiles recorded a
growth of around 4% in 2008, which is higher than the export growth of textiles of all
fibers (3.70%), indicating a higher demand for cotton-based textile products. The export of
cotton fabrics and cotton made-ups recorded growth rates of 3.52% and 8.35%
respectively in the year 2008. India exported US$ 21.6 Billion Textiles & Clothing in the
year 2008-2009. The top ten markets were USA, UK, UAE, Germany, France, Italy,
Spain, Netherlands, Bangladesh and China.

INDIA’S TEXTILE EXPORTS

Percentage Vision of India 2010 for Textiles

 Textile economy to grow to $85billion by 2010

 Creation of 12 million new jobs in textile sector.
 To increase India’s share in world trade to six per cent by 2010.
 Achieve export value of $40 billion by 2010.
 Modernization and consolidation for creating a globally competitive industry.

Prospect
Considering the continual capital investments in the textile industry, the Govt. of India
may extend the Technology Up gradation Fund Scheme (TUFS) by the end of the 11th
Five Year Plan (till 2011-2012), in order to support the industry. Indian textile industry is
massively investing to meet the targeted output of $85bn by the end of 2010, aiming
exports of $50bn. There is huge development foreseen in Indian textile exports from the
$17bn attained in 2005-06 to $50bn by 2009-10. The estimation for the exports in the
current financial year is about $19bn. There is substantial potential in Indian exports of
technical textiles and home-textiles, as most European companies want to set up facilities
near-by the emerging markets, such as China and India.

The global demand for apparel and woven textiles is likely to grow by 25 percent by year
2010 to over 35mn tons, and Asia will be responsible for 85 percent output of this growth.
The woven products output will also rise in Central and Southern American countries,
however, at a reasonable speed. On the other hand, in major developed countries, the
output of woven products will remain stable. Weaving process is conducted to make
fabrics for a broad range of clothing assortment, including shirts, jeans, sportswear, skirts,
dresses, protective clothing etc., and also used in non-apparel uses like technical,
automotive, medical etc...

It is been forecasted that the woven textile and apparel markets will sustain their growth
from current till 2010. The imports of apparel and textiles will rise from developed
economies like the USA and the western countries of Europe and Japan, along with some
newly emerged economies, such as South Korea and Taiwan. Certainly, import growth has
been witnessed vertical rise in the previous year.

COMPANY PROFILE

Name – P.R.P Textiles PVT Ltd

Business Type - Exporter, Manufacturer, Supplier.

Product Range- 100% Cotton Shirting Fabric

Export percentage - 30%

Monthly Production Capacity-35,000 meters per month

Export Markets - Vietnam, Bangaldesh , Sri lanka

Product Range
Product range

 Plain Weave Cotton Shirting Fabric

 Twill Weave Cotton Shirting Fabric
 Satin Weave Cotton Shirting Fabric
We are a major Manufacturer, Exporter and Supplier of Shirting Fabrics that are brought
to the clients in a wide variety. Our Shirting Fabrics are made available to match the
preferences of the clients. Made using yarns of the finest quality, our Shirting Fabrics are
manufactured by experts who closely evaluate them on different aspects. We provide
Shirting Fabrics in bulk quantities at the most affordable prices in the industry.

COST OF THE PROJECT

SET-UP AND ESTABLISHMENT COST

(Rs.in Lakhs)

       
S. PARTICULARS TOTAL
N.    
       
       
     
1 COST OF LAND   5.00
     
2 COST OF BUILDING CONSTRUCTION   20.29
     
3 PLANT & MACHINERY   49.86
     
4 MISCELLANEOUS FIXED ASSETS   17.35
 
5 PRE-OPERATIVE EXPENCES   4.58
     
 6 MARGIN MONEY FOR WORKING CAPITAL   1.21
     
7 CONTINGENCY @ 1 %   0.72
     
     
       
     
  TOTAL   99.00
       

MEANS OF FINANCE in lakhs

PROPERIETER EQUITY 70%

BANK LOAN 30%

PROPERIETER EQUITY 69.30

BANK LOAN 29.70

SALARIES & LABOUR WAGES PER YEAR

DESCRIPTION NO.S/DAY WAGE/MON. TOTAL RS.

PROD. TECHNICIAN 1 15000 180000

PROD.CLERK 1 2500 30000
A/C CLERKS 2 2500 60000
WATCHMEN 3 1800 64800
7 334800

LABOUR
WEAVERS 7 2400 201600
 ASISTANTS 3 2000 72000
LOOM GAITER/ WEFT CARRIER 2 3000 72000
FITTER 2 3000 72000
DRAWING-IN 2 2000 48000
OTHER S 3 1800 64800

ELECTRICIAN ( CONTRACT BASIS ) 1 3000 36000

SUB TOTAL 20 566400

TOTAL WAGES & SALARIES

PER YEAR IN RS. 99 01200.00

STORES & MAINTENANCE EXPENSES

     
S. P ARTICUL ARS  
N.      
   
     
1 LOOM MAINTENANCE COST/LOOM/SHIFT IN RS. 40.00  
     
2 TOTAL LOOM SHIFTS / YEAR   8977.50  
     
3 LOOM MAINTENANCE COST/YEAR IN RS. LAKHS   3.59  
     
4 ELECTRICAL MAINTENANCE / YEAR   0.24  
   
5 OTHER MISCELLANEOUS COST /YEAR   0.12  
     
6 TOTAL MAINTENANCE COST / YEAR IN RS.   3.95  
 LAKHS
             

COST OF FACTORY & NON FACTORY CONSTRUCTIONS

(Rs.in Lakhs)

        AREA COST TOTAL

SR   IN PER COST
NO SQ.
. PARTICULARS   FEET SQ.FEET  

             

           

           

           

1   LOOM HALL   3450.00 350.00 12.08

           

2   YARN GODOWN   440.00 350.00 1.54

           

3   FABRIC MENDING/FOLD & GODOWN   400.00 350.00 1.40

           

4   OFFICE   240.00 350.00 0.84

           

5   BEAM STORAGE,DRAWING-IN   300.00 350.00 1.05

           

6   HUMIDIFICATION PLANT   720.00 400.00 2.88

           

7   OTHERS   200.00 250.00 0.50

           

           

           

           

           

             

    TOTAL       20.29
             
 ANNUAL FABRIC PRODUCTION PARTICULARS

        4 COLOUR  
CHECK
SR. PARTICULARS DOBBY  
NO
.       SHIRTING  

           

  PRODUCTION DETAILS    

1 LOOM RPM. 350.00

2 100% Mtrs./SHIFT OF 8 HRS. 59.27  

3 LOOM EFFICIENCY. 78.00  

4 UTILISATION % 95 IN 3RD YEAR --- 95  

  --IST YEAR 75 % & II ND YEAR 85 %    

5 ACT.Mtrs./SHIFT.IN SINGLE WIDTHS 43.92  

       

6 ACT.Mtrs./DAY. 131.75  

7 WORKING DAYS/YEAR. 350.00  

8 NO.OF LOOMS 9.00  

9 ACT.Mtrs./DAY. 1185.75  

10 ACT.Mtrs./MONTH. 34584.39  

11 ACTUAL METRES PER YEAR 415012.70  

12 ACTUAL METRES PER YEAR ( LAKH METRES) 4.15  

13 TOTAL LOOM SHIFTS/YEAR 8977.50  

           
 ELECTRICAL POWER CHARGES

  NO. OF H.P. KW TOTAL EFFICIENCY TOTAL

ITEMS MACHINES PER PER H.P. & HP HOURS
    MACHINE MACHINE   UTILISATION PER DAY

LOOMS 9.00 8.00 5.97 72.00 74.10 1280.45

HUMIDIFICATION 1.00 30.00 22.38 30.00 90.00 594.00

OTHERS 1.00 5.00 3.73 5.00 80.00 32.00

           
           
             
  11.00 43.00 32.08 107.00 244.10 1906.45

TOTAL H.P.
REQUIRED 107.00
TOTAL KVA 36.09
KVA CHARGES PER MONTH @
250 RS. 0.09

POWER UNITS PER YEAR IN LAKHS 4.48

POWER COST IN RS/ UNIT FOR LOOMS 1.06
POWER COST IN RS. LAKHS/ YEAR 4.75

POWER COST IN RS. LAKHS/ YEAR 4.84

 YARN COST PARTICULARS
         
PARTICULARS   360 CMS 360 CMS
      COTTON DRILL COTTON DRILL
         
WT. OF WARP & WEFT.      
WARP/DAY Kgs.   166.20 0.00
WARP/YEAR Kgs.   58168.48 0.00
WEFT/DAY Kgs.   83.82 0.00
  WEFT/YEAR Kgs.   29336.06 0.00
     
WARP + WEFT/DAY Kgs.   250.01 0.00
WARP + WEFT/ MONTH Kgs.   7292.05 0.00
WARP + WEFT/YEAR Kgs.   87504.55 0.00
     
YARNS PURCHASE    
     
WARP YARN PRICE/Kg.   148.00 134.00
WEFT YARN PRICE/Kg.   148.00 134.00
WARP COST/Mtr.   20.74 0.00
WEFT COST/Mtr.   10.46 0.00
TOTAL YARN COST/Mtr.   31.21 0.00
TOTAL YARN COST/DAY(Lakhs)   0.37 0.00
TOTAL YARN COST/MONTH(Lakhs)   10.79 0.00
TOTAL YARN COST/YEAR(Lakhs)   129.51 0.00
         

COST OF MENDING & FOLDING

 
 

SR.

P ARTICUL ARS

NO.

FABRIC PRODUCTION LAKH MTRS / YEAR

4.15
 

 
  

MENDING & FOLDING COST IN RS / METER

0.15
 

TOTAL FOLDING & MENDING COST/YEAR IN LAKHS

0.62
 

 
 
 
 
 
 
 

COST OF PACKING & HANDLING

 
 
  

S.

P ARTICUL ARS

N.

 
 

FABRIC PRODUCTION IN LAKH MTRS / YEAR

4.15
 
  

PACKING COST /METER( RS.)

0.20
 
  

TOTAL PACKING COST PER YEAR IN RS. LAKHS

0.83
 

 
 4

COST OF LABOUR FOR LOADING OF FABRIC,YARN -

0.24
 

- & BEAMS

 
  

TOTAL COST OF PACK.& HANDLING/YEAR IN LAKHS

1.07
 

 
 
 
 
 
 
 
ANNUAL FABRIC PRODUCTION PARTICULARS
 
 
 
 
4 COLOUR
 SR.
PARTICULARS

CHECK DOBBY
 NO.
 
 
 
SHIRTING

 
 
 
 
 
  
PRODUCTION DETAILS

 
 1
LOOM RPM.

350.00

2
100% Mtrs./SHIFT OF 8 HRS.

59.27
 3
LOOM EFFICIENCY.

78.00
 4
UTILISATION % 95 IN 3RD YEAR ---

95

 
--IST YEAR 75 % & II ND YEAR 85 %

 
 5
ACT.Mtrs./SHIFT.IN SINGLE WIDTHS

43.92
  
 

6
ACT.Mtrs./DAY.

131.75
 7
WORKING DAYS/YEAR.

350.00
 8
NO.OF LOOMS

9.00

9
ACT.Mtrs./DAY.

1185.75
 10
ACT.Mtrs./MONTH.

34584.39
 11
ACTUAL METRES PER YEAR

415012.70

12
ACTUAL METRES PER YEAR ( LAKH METRES)

4.15
 13
TOTAL LOOM SHIFTS/YEAR

8977.50
  
 
 
 
 
 MARGIN MONEY FOR WORKING CAPITAL

(Rs. in lakhs)

 
 
 
 
 
 
 
 
 
 
 
 
 

SR.
 
 
NO.OF
 
BANK
 

 
AMOUNT
 
MARGIN

NO.
 
ITEMS
 
MONTHS
 
FINANCE
 
AMOUNT
 
OF BANK
 
MONEY

 
 

 
REQD.
 
AVAILABLE
 

 
FINANCE
 
REQD.

 
 
 
 
 
 
 
 
 
 

 
 

 
  

 
 

 
 

 
 

1)
 
RAW MATERIAL YARN
 
1
 
75.00
 
----
 
----
 
----

 
 

 
 

2)
 
CONSUMABLE STORES & SPARES
3
 
60.00
 
0.99
 
0.59
  
0.40

 
 

 
 

3)
 
OTHER MFG. EXPENSES.
 
1/2
 
----
 
0.82
 
0.00
 
0.82

 
 

 
 

4)
 
STOCK OF FINISHED GOODS
 
1/2
 
75.00
 
----
 
----
 
----

 
 
 

 
 

5)
 
STOCK OF GOODS IN PROCESS
 
1/3
 
60.00
 
----
 
----
 
----

 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
TOTAL :
 

 
1.81
0.59
1.21
 
 
 
 
 
 
 
  

DETAILS OF LEASED LAND

(Rs.in Lakhs)
       
SR PARTICULARS  
NO.    
       
     
     
1 COST OF THE LAND 5.00
  21000 SQ. FEET LAND  
  (LAND COST @ RS. 5.0 PER SQ. FEET )  
     
     
     
       
  5.00
       
.

COST SHEET

12000 meters
Costing Per meter Total cost
Raw material cost 30.835 370020
Labor cost 2.145 25740
Prime cost 32.98 395760
Overheads 3.330 39960
Packing expenses 0.254 3048
Ex-works cost 36.564 438768
Exporter margin of 10.969 131628
30% of Ex works
costs
Ex work cost 47.5322 570398.4

Forwarding expenses
Handling 1250
Warf age 1250
Trucking 5000
Palletisation 5000
Documentation 5000
ECGC 1500
19000 19000
FOB price (Rs) - 589398.40
(USD)- 13097.74
 PRODUCT SPECIFICATION

Cotton Shirting Fabric

Matching international standards of quality, we are proud to offer a range of Cotton
Shirting Fabric in the national and international markets. Made using premium cotton, the
Cotton Shirting Fabrics provided by us are repeatedly demanded because of their beautiful
weaves and availability at reasonable prices.

Primary Competitive Advantages

 Unmatched quality
 Superior texture
 Lint proof weave
 Smooth finishing
 Easy maintenance
 Attractive designs
 Highly economical prices
 Premium grade fabrics
 Variety of colors
 Timely deliveries

Packaging Material - Plastic rolls

Apt for -Ladies Wear , Gents Wear

Customization Facility
We offer the facility of customization, in which customers' specifications are considered
while manufacturing the products. Our customized solutions include the following:
  Fabric combination
 Design and pattern
 Colors and Shades
 Length and width of the yarns

Plain Weave Cotton Shirting

We are pleased to offer premium quality Plain Weave Cotton Shirting Fabric, which are
made from premium quality cotton yarns that offer soft and smooth texture to the fabric.

Width : 44” to 72”

Count : Any count from 30s to 80s

SPECIFICATIONS

Quality Name Weave

67" 108*118 50*50 Plain
67" 120x96 40sx40s Plain
67" 128x104 60x60 Plain
67" 64X56, 40S X 40s Plain
67" 72x44 10x450 Plain
72" 88*88, 60s*60s Plain
63" 128x76 40sx40s Plain
63" 84*84 50s*50s Plain
 Twill Weave Cotton Shirting Fabric

The Twill Weave Cotton Shirting Fabric provided by us, has been termed as the best
available Shirting Fabric in the market because of the elegant looks.

Width : 44” to 72”

Count : Any count from 30s to 80s

SPECIFICATIONS

Quality Name Weave

67" 108*118 50*50 Twill
67" 120x96 40sx40s Twill
67" 128x104 60x60 Twill
67" 64X56, 40S X 40s Twill
67" 72x44 10x450 Twill
72" 88*88, 60s*60s Twill
63" 128x76 40sx40s Twill
63" 84*84 50s*50s Twill
 Satin Weave Cotton Shirting Fabric

We provide premium quality Satin Weave Cotton Shirting Fabric that is fabricated from

cotton yarns. Woven in unique stain pattern, our Satin Weave Cotton Shirting Fabric, has
become very popular among our clients.

Width : 44” to 72”

Count : Any count from 30s to 80s

SPECIFICATIONS

Quality Name Weave

67" 108*118 50*50 Satin
67" 120x96 40sx40s Satin
67" 128x104 60x60 Satin
67" 64X56, 40S X 40s Satin
67" 72x44 10x450 Satin
72" 88*88, 60s*60s Satin
63" 128x76 40sx40s Satin
63" 84*84 50s*50s Satin
 MANUFACTURING PROCESS

RAW MATERIAL ARRIVAL(WARP AND WEFT YARNS)

WARPING AND SIZING

WEAVING PROCESS

QUALITY INSPECTION

FOLDING

PACKING AND DESPATCH

Raw Material Arrival

Raw material is delivered at the factory premises and is supplied by a local manufacture in
Kolhapur.

Pranavaditya Spinning Mills Ltd.

Address Village Alte Hatkana gate Pb No-2., Kolhapur - 416109, Maharashtra, India
Warping or Beaming
A Warper

Racks of bobbins are set up to hold the thread while it is rolled onto the warp bar of a
loom. Because the thread is fine, often three of these would be combined to get the desired
thread count.

Sizing

Slasher sizing machine needed for strengthening the warp by adding starch to reduce
breakage of the yarns .

Looming
The process of drawing each end of the warp separately through the dents of the reed and
the eyes of the healds, in the order indicated by the draft.

Pirning (Processing the weft)

Pirn winding frame was used to transfer the weft from cheeses of yarn onto the pirns that
would fit into the shuttle

Weaving-fabric manufacture
The weaving process uses a loom. At this point, the thread is woven. Depending on the
era, one person could manage anywhere from 3 to 100 machines. The length way threads
are known as the warp, and the cross way threads are known as the weft. The warp which
must be strong needs to be presented to loom on a warp beam. The weft passes across the
loom in a shuttle, that carries the yarn on a pirn. These pirns are automatically changed by
the loom. Thus, the yarn needs to be wrapped onto a beam, and onto pirns before weaving
can commence. The three primary movements of a loom are shedding, picking, and
beating-up.

Shedding

The operation of dividing the warp into two lines is done so that the shuttle can pass
between these lines. There are two general kinds of sheds-"open" and "closed." Open
Shed-The warp threads are moved when the pattern requires it-from one line to the other.
Closed Shed-The warp threads are all placed level in one line after each pick.

Picking

The operation of projecting the shuttle from side to side of the loom is done through the
division in the warp threads. This is done by the overpick or underpick motions. The
overpick is suitable for quick-running looms, whereas the underpick is best for heavy or
slow looms.

Beating-up

The third primary movement of the loom when making cloth, and is the action of the reed
as it drives each pick of weft to the fell of the cloth.

Measurements
Ends and Picks: Picks refer to the weft, ends refer to the warp. The coarseness of the cloth
can be expressed as the number of picks and ends per quarter inch square, or per inch
square. End is always written first.

Quality Inspection
The next step in the production process is the quality inspection. It is conducted within the
factory premises and here the quality, the texture and the smoothness of the cotton fabric is
tested and checked as per the customer’s specifications.

Packaging and dispatch

Packaged roll of textile fabric and method of packaging same-Packaging rolls and a
method of packaging rolls of textile fabric are provided in which a roll of textile fabric
having first and second transverse ends and a longitudinal length is inserted within a
polymeric bag disposed over the roll. The polymeric bag includes a re closable closure
strip comprising at least one rib and one groove oppositely disposed on an inner surface of
the polymeric bag proximate to the bag opening. The polymeric bag is designed to provide
water and abrasion resistance to rolls of textile goods of about 3–16 feet in length and
about 6–24 inches in diameter. The bag can also be reused for partially used rolls.

After the textiles are rolled in the polymeric bag, they are packed into cartons.

Packaging & Delivery

PET Strap Polyester Strap Packing Band For Cotton Bale

FOB Price: US $1.2 - 1.5 / Kilogram

Packaging
cardboard wrapped in film
Detail:
Specifications

These PET straps:

Cost: saving 50% cost for packing cotton bale
Operation: Do not have sharp edges when tensioned or cut.

PET strap is very light and can be carried to any place easily. Comparing with steel strap,
PET strap is easily operated and has high efficiency. Operator doesnt need to wear gloves
and clip strap beforehand. It is good for the cotton bale.

PET strap Features:

1) No sharp edges when tensioned or cut
2) Safe to use

3) Saving packing cost 50%

REGISTRATION OF THE COMPANY

SETTING UP AN EXPORT FIRM:

Setting up of an export firm is completed in two stages. These stages are as follows:

I. Establishing a business firm and

II. Obtaining importer exporter code number in the name of the business firm.

Name of the firm: PRP fabric Textile ltd.

Approval of the name: The name of the company has to be registered under the Regional
Licensing Authority

According to the requirements under law. The process for approval of the name includes:

 Application form with the relevant details.

 Partnership deed along with the details of the partners.
 The required fees for processing.

Ownership of the Company: PRP Fabric textile ltd firm is owned by p.r.p.raheja.it is a
sole proprietorship firm and is registered under
Proprietor – P.R.P Raheja

Capital investment – 80 percent of the capital by the proprietor and 20 percent by the
loan from the bank.

Profit and loss – Solely liable to profit and loss

Responsibility – Solely on the proprietor.

Location of the firm - The manufacturing unit is situated in

H.No. 5975; Gat No. A1/1A - 3,

Laxmi Process Road,

Behind M.S.E.B., Ichalkaranji, Kolhapur,

Maharashtra,

India

The shirting’s are supplied or transported from Kolhapur in trucks and then packaged in
the factory premises. The transport facilities from factory premises to the port are well
developed.

Trade name and logo - The name of the product we export is PRP Cotton Shirting. All
the business trade is done under this name only.

Infrastructure - Our business is “Manufacturing” and we are extending cotton shirting’s

fabrics for exports. We have operational unit in Kolhapur.

Pan Number: The last step is to apply for Permanent Account Number (PAN) in income
tax department. This is a requirement to open the bank account in the name of the business
or company and also to apply for IEC (Import Export Code).

Current account with the bank: one should now open an account with a scheduled
commercial bank. Initially, one may open an account with the branch of the bank where
the requirement of minimum balance is the minimum. It is important to open the account
with the branch that deals in foreign exchange and also accepts the export-import
documents for negotiation and other related dealings.

PROCEDURE FOR THE ALLOTEMENT OF IEC CODE:

Under section 7 of the foreign trade development act 1992, a business firm can enter into
exports imports only if it has been allotted importer exporter code number by the
competent licensing authority. The chief licensing authority of India is the office of the
director general foreign trade(DGFT).under ministry of commerce, government of India,
with its headquarter located at Udyog Bhavan,New-Delhi. The regional offices of the
DGFT know as the regional licensing authority is located in different parts of India.

Importer exporter code number

Registration under the sales tax/value added tax law: Goods exported from India are
exempt from central and state sales tax. However, for getting exemption of such taxes or
claiming their refund, wherever permissible under Foreign Trade Policy, the exporting unit
should be registered with sales tax authorities.

Application for IEC

Documents Required: Request letter own my companies letter hed for issue of IEC.

Application fees Challan/DD- Rs 1000 in favor of the licensing authority that is DGFT

Certificate from the Bank:

Bank of Maharashtra

Self certified copy of permanent account number issued by income tax authorities.

Profile of exporter/importer will be in the 1st part of AAYAT NIRYAAT form.

DGFT Maharashtra shall examine the application and if it is satisfied it would allot the
IEC no. to our company.

REGISTRATION OF EXPORT FIRM:

Besides registration of a business firm with the trade control authority in the form of
importer-exporter code number, an entrepreneur should also complete the formalities as
regards registration of the firm with the sales tax/value added tax authorites, export
promotion councils and the central excise authorities.

Registration-cum-membership certificate (RCMC) from Export Promotion

Council/Commodity Board:

Procedure for Obtaining RCMC-

Now a day there is facility to apply RCMC online on the Export Promotion Council
website. So I applied through cotton textile Export Promotion Council of India
(TEXPROCIL) and these are the following steps -

1. I entered my export import code (issued by DGFT) and 1st three letters of name of
my organization to excess my co. detail at TEXPROCIL website.
2. I entered the request details in the prescribed form after entering the IEC.
3. I scanned uploaded the requisite document as per the criteria

PRESHIPMENT FINANCE:

A pre shipment credit or packing credit is a loan or advnce guranted to a exporter for
financing the purchase processing manufcturing or packing of goods meant for export or
working capital expenses.

Elgibilty:

1. On the strength of LC.

Quantum of advance:

Preshipment finance sould not exceed FOB price or the domestic cost of
production.margin may also be stipulated dependig upon party worth and the commodity
to be exported.

VARIOUS EXPORT DOCUMENTS

Performa Invoice

A Performa invoice is a quote in an invoice format that may be required by the buyer to
apply for an import license, contract for pre-shipment inspection, open a letter of credit or
arrange for transfer of hard currency. A Performa may not be a required shipping
document, but it can provide detailed information that buyers need in order to legally
import the product.

Performa invoices basically contain much of the same information as the formal quotation,
and in many cases can be used in place of one. It should give the buyer as much
information about the order as possible so arrangements can be made efficiently. The
invoices inform the buyer and the appropriate import government authority’s details of the
future shipment; changes should not be made without the buyer’s consent. As mentioned
for the quotation, the points to be included in the Performa are:

1. Seller’s name and address

2. Buyer’s name and address

3. Buyer’s reference

4. Items quoted

5. Prices of items: per unit and extended totals

6. Weights and dimensions of quoted products

7. Discounts, if applicable

8. Terms of sale or Incoterm used (include delivery point)

9. Terms of payment

10. Estimated shipping date

11. Validity date

Packing List

This itemizes the contents of each package (box, pallets, skids, etc.) This document
includes weights, measurements and detailed contents of each package. It should be
attached to the outside of a package and/or included inside the package. This document is
used by shippers and forwarders to determine freight costs. It is also used by U.S. and/or
foreign customs officials to check the contents of any specific package.
GR FORM (EXCHANGE CONTROL DOCUMENT)

This is a declaration by the exporter in the format prescribed by RBI to be submitted along
with the shipping bill to customs. The declaration must contain the information about
sender, consignee, description of goods, and full export value of goods in foreign
currency, etc. The exporter submits a duplicate of GR form with the bank along with
shipping documents. The bank endorses the copy after realization of sales proceeds and
sends it to RBI. The original copy submitted at customs is also directed to RBI by the
customs. The RBI confirms the realization of the proceeds as per full export value after
comparing the two copies

Shipping Bill

This is a statutory document prescribed for processing in customs for shipment of goods.
Generally four copied of shipping bills are submitted in difference colors each having
specific significance and use. Such documents for import are called Bill of Entry. While
filing the Shipping Bill, additional documents required depending upon the case are:
Invoice, packing list, copy of L/C, export license, quality control certificate, GR form,
drawback claim application form, AR 4 form, etc.

Bills of Lading

This is the principal shipping document between the shipper and the ocean career, shipper
and consignee and carrier and consignee. It functions as receipt for shipment of gods,
defines the term of contract between the shipper and the carrier and helps pass the title of
ownership of goods to consignee. It is a negotiable instrument and a document of
ownership of goods.

EGM .Export General Manifest is a document to be filed by steamer agents on behalf of

the master of vessel within seven days of the sailing of vessel. This contains complete
detail of the cargo loaded. The EGM is filed with the Export Documentation Center along
with the copies of shipping bill.

Certificate Of Origin

Certificates of origin - Various countries have limitations on the introduction of

commodities from certain other countries, and may apply duty to these commodities or
ban them altogether. On the other hand, there may be tax benefits on items from specific
supply sources. In such cases, an exporter will require to present a Certificate of Origin,
which is certified by a designated regulatory authority.

Identification Of Customer In Exports Market

To find potential Buyers for shirting to focus on various data provided by Govt. and other

Private agencies. There are many Nodal Agencies are set up by Ministry of Commerce,
Ministry of Industries, Ministry of Foreign Trade and Affairs and TEXPROCIL (Export
Promotion Councils). On the basis of published data I focus on those markets where these
products are in great demand.

These are the ways that I opted to find potential buyers–

1. Extensive Tour to Potential Overseas Market and to meet Potential Buyers at Door to
Door and inter-act with customers directly.

2. To find through Internet

3. To contact through respective Nodal Agencies

4. To Appoint Commission Agents in Potential Overseas Countries, who can find the
buyers those, required the respective Stone Materials.

5. through Export Promotion Councils.

6. through participation in international trade fairs.

Promotional Measures

A. Focus Market Scheme (FMS)

 26 new countries have been included in the list of countries eligible for the benefit
under “Focus Market Scheme”.
 The incentive (Duty Credit Scrip) provided under Focus Market Scheme has been
increased from 2.5% to 3%.
 A significant increase in the outlay under 'Market Linked Focus Product Scheme'
by inclusion of more markets (specially in Africa and Latin America) and products.
B. Focus Product Scheme (Fps)

 The incentive (Duty Credit Scrip) available under Focus Product Scheme (FPS) has
been raised from 1.25% to 2%.
 A large number of products from various sectors (including Technical Textiles &
Vegetable Textiles) have been included for benefits under FPS.

C. Market Linked Focus Product Scheme (MLFPS)

 Market Linked Focus Product Scheme (MLFPS) has been greatly expanded by
inclusion of products (including Textile made ups, Knitted and Crocheted fabrics,
Synthetic Textile fabrics). Benefits to these products will be provided, if exports are
made to 13 identified markets (Algeria, Egypt, Kenya, Nigeria, South Africa,
Tanzania, Brazil, Mexico, Ukraine, Vietnam, Cambodia, Australia and New
Zealand).
 MLFPS benefits also extended for export to additional new markets for certain
products, including apparels among others.

D. Market Development Assistance (MDA)

 Higher allocation for Market Development Assistance (MDA) and Market Access
Initiative (MAI) schemes is being provided.

E. STATUS HOLDER

 Additional duty credit scrip @ 1% of the FOB of past export to the “status holders”
shall be granted for specified product groups including textiles. This duty credit
scrip can be used for import of capital goods by these status holders. [ subject to
exclusions of current beneficiaries under Technological Up gradation Fund Schemes
(TUFS)].
 This facility shall be available up to 31.3.2011.

Duty Entitlement Passbook (DEPB) Scheme

 Duty Entitlement Passbook (DEPB) Scheme is extended beyond 31-12-2009 till

31.12.2010.
 DEPB rate shall also include factoring of custom duty component on fuel where fuel
is allowed as a consumable in Standard Input-Output Norms.

Advance Authorisation Scheme

To encourage value added manufacture export, a minimum 15% value addition on
imported inputs under Advance Authorisation Scheme has been stipulated.

Export Promotion Capital Goods (EPCG) Scheme

 EPCG Scheme at zero duty has been introduced to aid technological up gradation of
export sectors including apparels & textiles products (subject to exclusions of
current beneficiaries under Technological Up gradation Fund Schemes (TUFS),
administered by Ministry of Textiles and beneficiaries of Status Holder Incentive
Scheme in that particular year).
 The scheme shall be in operation till 31.3.2011.

Relaxations in EPCG Scheme

 To increase the life of existing plant and machinery, export obligation on import of
spares, moulds etc. under EPCG Scheme has been reduced to 50% of the normal
specific export obligation.
 The facility of Re-fixation of Annual Average Export Obligation for a particular
financial year in which there is decline in exports from the country, has been
extended for the 5 year Policy period 2009-14.

 Other Measures To Facilitate Exports

 Enhanced insurance coverage and exposure (upto 95%) for exports through ECGC
Schemes has been ensured till 31st March 2010.
 Promote Brand India through at least six 'Made in India' shows to be organized
across the world every year .
 For upgradation of export sector infrastructure, ‘Towns of Export Excellence' &
units located therein would be granted additional focused support and incentives.
 Transit loss claims received from private approved insurance companies in India
will now be allowed for the purpose of EO fulfillment under Export Promotion
schemes.
 In cases, where RBI specifically writes off the export proceeds realization, the
incentives under the FTP shall now not be recovered from the exporters subject to
certain conditions.
MEASURES TO REDUCE TRANSACTION COST TO EXPORTERS

 No fee shall now be charged for grant of incentives under the Schemes in Chapter 3
of FTP. Further, for all other Authorisation/ licence applications, maximum
applicable fee is being reduced to Rs. 100,000 from the existing Rs 1,50,000 (for
manual applications) and Rs. 50,000 from the existing Rs.75,000 (for EDI
applications)
 To further EDI initiatives, Export Promotion Councils/ Commodity Boards have
been advised to issue RCMC through a web based online system. It is expected that
issuance of RCMC would become EDI enabled before the end of 2009.
 Electronic Message Exchange between Customs and DGFT in respect of incentive
schemes under Chapter 3 will become operational by 31.12.2009. This will obviate
the need for verification of scrips by Customs facilitating faster clearances.
 For EDI ports, with effect from December ’09, double verification of shipping bills
by customs for any of the DGFT schemes shall be dispensed with.
 In cases, where the earlier authorization has been cancelled and a new authorization
has been issued in lieu of the earlier authorization, application fee paid already for
the cancelled authorisation will now be adjusted against the application fee for the
new authorisation subject to payment of minimum fee of Rs. 200.
 An Inter Ministerial Committee will be formed to redress/ resolve problems/issues
of exporters.

Procedural Simplification

 A common simplified application form has been introduced for taking benefits
under FPS, FMS, MLFPS and VKGUY.
 Payment of customs duty for Export Obligation (EO) shortfall under Advance
Authorisation / DFIA / EPCG Authorisation has been allowed by way of debit of
Duty Credit scrips. Earlier the payment was allowed in cash only.
 Import of restricted items, as replenishment, shall now be allowed against
transferred DFIAs, in line with the erstwhile DFRC scheme.
 To facilitate duty free import of samples by exporters, number of samples/pieces has
been increased from the existing 15 to 50. Customs clearance of such samples shall
 be based on declarations given by the importers with regard to the limit of value and
quantity of samples.
 To allow exemption for up to two stages from payment of excise duty in lieu of
refund, in case of supply to an advance authorisation holder (against invalidation
letter) by the domestic intermediate manufacturer. It would allow exemption for
supplies made to a manufacturer, if such manufacturer in turn supplies the products
to an ultimate exporter. At present, exemption is allowed upto one stage only.
 Greater flexibility has been permitted to allow conversion of Shipping Bills from
one Export Promotion scheme to other scheme. Customs shall now permit this
conversion within three months, instead of the present limited period of only one
month.
 To reduce transaction costs, dispatch of imported goods directly from the Port to the
site has been allowed under Advance Authorisation scheme for deemed supplies. At
present, the duty free imported goods could be taken only to the manufacturing unit
of the authorisation holder or its supporting manufacturer.
 Disposal of manufacturing wastes / scrap will now be allowed after payment of
applicable excise duty, even before fulfillment of export obligation under Advance
Authorisation and EPCG Scheme.
 Acceding to the demand of trade & industry, the application and redemption forms
under EPCG scheme have been simplified.

Directorate Of Trade Remedy Measures

To enable support to Indian industry and exporters, especially the MSMEs, in availing
their rights through trade remedy instruments, a Directorate of Trade Remedy Measures
shall be set up.

Terms of trade:
Payments terms: LC

INCOTERM: FOB

Type of cargo handling vessel:

Port of Shipment: JNPT

Port of Destination: Danang Port of Vietnam

Cost sheet: