A Feasibility Report of doing Blue Pottery business in India

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Pakistan-India Trade

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ACKNOWLEDGMENT

“It is not possible to prepare report without the assistance & encouragement of other people. This

one is certainly no exception.”

We have taken efforts in this project. However, it would not have been possible without the kind

support and help of many individuals and organizations. We would like to extend our sincere thanks

to all of them.

We take this opportunity to express our profound gratitude and deep regards to our guide Ma’am

Huma Jamshaid for her exemplary guidance, monitoring and constant encouragement throughout

the course of this project. The blessing, help and guidance given by her time to time shall carry us a

long way in the journey of life on which we are about to embark.

We also take this opportunity to express a deep sense of gratitude to the President of Multan

Chamber of Commerce for his cordial support, valuable information and guidance, which helped us

in completing this task through various stages.

We are obliged to the owner of Multan Craft Bazar for the valuable information provided by them in

their respective fields. We are grateful for their cooperation during the period of our assignment.

Lastly, we thank Almighty ALLAH, our parents, brother, sisters and friends for their constant

encouragement without which this assignment would not have been possible.

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CONTENTS Introduction ............................................................................................................................................. 4

Why invest in India? ............................................................................................................................... 4

India — An Overview ............................................................................................................................. 5

Venture Description ................................................................................................................................ 9

Indian Pottery Industry ....................................................................................................................... 9

Artisans Blue Pottery Project ............................................................................................................ 10

Overview of Project .......................................................................................................................... 10

Project Objectives ............................................................................................................................. 10

About us ............................................................................................................................................ 10

Work Culture and Practices at Artisans ............................................................................................ 11

Vision ................................................................................................................................................ 11

Mission .............................................................................................................................................. 11

Growth Opportunities ....................................................................................................................... 11

Location ............................................................................................................................................ 11

The Business Environment ................................................................................................................... 12

1. Political Environment ................................................................................................................... 12

2. Legal Environment ........................................................................................................................ 13

3. Economic Environment ................................................................................................................ 14

4. Monetary Environment ................................................................................................................. 15

5. Trade Environment ....................................................................................................................... 17

6. Cultural Environment .................................................................................................................... 20

7. Business Environment .................................................................................................................. 22

8. Key Success Factors ..................................................................................................................... 23

Project Estimation ................................................................................................................................. 24

Competitive Advantage Matrix ............................................................................................................. 26

Products ................................................................................................................................................ 28

Marketing & Sales Strategy .................................................................................................................. 29

Management & Personnel Requirements .............................................................................................. 30

Important Points from Other Trade Stories. .......................................................................................... 30

Every Product Has A Story, So Share It. .......................................................................................... 30

A Good Cause Does Ensure A Sale. ................................................................................................. 30

Long Term Trade Relationships Are The Key To A Sustainable Business. ..................................... 30

Conclusion ............................................................................................................................................ 31

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Introduction India is one of the growing economy among the economies of Asia. In fact, global investment

firm, Moody‘s, says that driven by renewed growth in India and China, the world economy is

beginning to recover from the one of the worst economic downturns in decades.

In 2008-09 the growth in real Gross Domestic Product (GDP) at factor cost was 6.7 per cent.

In agriculture, forestry and fishing, the sector-wise growth of GDP was at 1.6 per cent in 2008-

09, industry witnessed growth to 3.9 per cent of the GDP in 2008-09.

The Prime Minister, Dr. Manmohan Singh, on August 15, 2009, in his address to the nation on

its 63rd Independence Day, said that the Government is struggling to increase the GDP to 9 per

cent. Further, the World Bank has projected an 8 per cent growth for India in 2010, which

would bring India to a top on the list of fastest growing economies, overtaking China‘s expected

7.7 per cent growth.

A number of leading indicators, such as increase in hiring, freight movement at major ports

and encouraging data from a number of key manufacturing segments, such as steel and cement,

indicate that the downturn has bottomed out and highlight the Indian economy's resilience.

Recent indicators from leading indices, such as Nomura's Composite Leading Index (CLI),

UBS Lead Economic Indicator (LEI) and ABN Amro Purchasing Managers' Index (PMI), too

bear out this optimism in the Indian economy. Industrial output as measured by the index of

industrial production (IIP) clocked an annual growth rate of 6.8 per cent in July 2009, according

to the Central Statistical Organization.

Significantly, among the major economies in the Asia-Pacific region, India's private domestic

consumption as share of GDP, at 57 per cent in 2008, was the highest, according to an analysis

by the McKinsey Global Institute. FIIs inflows into the Indian equity markets have touched

US$ 10 billion in the April to September period of 2009-10. Foreign direct investments (FDI)

into India went up from US$ 25.1 billion in 2007 to US$ 46.5 billion in 2008, achieving an

85.1 per cent growth in FDI flows, the highest across countries, according to a recent study by

the United Nations Conference on Trade & Development (UNCTAD).

According to the Asian Development Bank's (ADB) 'Asia Capital Markets Monitor' report, the

Indian equity market has emerged as the third biggest after China and Hong Kong in the

emerging Asian region, with a market capitalization of nearly US$ 600 billion.

Why invest in India? In South Asia region, India is ranked as one of the best countries for business and investment.

India has succeeded in attracting the world’s largest companies to establish their plants here.

This includes some of the largest firms in the global technology, information technology,

pharmaceutical, biosciences, and manufacturing and financial services industries.

These firms have generated profits and are looking forward to invest more in India. They are

in India because:

Fast economic growth: India is likely to be one of the fastest growing large economies in

the current decade with at least 7% GDP growth in real terms.

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Vibrant economy: India is the largest democratic country in the world and there has been

a remarkable continuity in direction of policy

Favorable demographics: A young population (under 25 years) accounts for about 50%

of India’s total inhabitants. Meanwhile, labor costs, as a percentage of value added, are among

the lowest among Asian companies.

Consumption: India’s GDP per capita in Purchasing Power Parity terms has crossed the key

threshold of USD 3,000 in 2013

Balanced markets: The Indian stock market is well-balanced in terms of export and

domestic-oriented sectors. The Indian market has a strong link to the global cyclical upturn,

but at the same time it does not rely exclusively on the health of the Western world.

Rapid export growth: India’s exports have grown sharply over recent months, clocking

37% for the year ending 31 March, 2013, according to the Indian Ministry of Commerce and

Industry

Attractive FDI destination: At USD 32 billion in financial year 2010, India attracted

more foreign direct investment (FDI) as a percentage of GDP than China

India — An Overview India- An important strategic country of South Asia and the most populous democracy in the

world shares its borders with Pakistan, Bangladesh, China, Nepal, Bhutan and Burma. Being a

home to the ancient Indus Civilization and a region of historic trade routes and vast empires,

Indian sub-continent was identified with its commercial and cultural wealth for much of its

long history. The Indian economy is the world's eleventh-largest by nominal GDP; it is

considered a newly industrialized country.

However, it continues to face the challenges of poverty, corruption, malnutrition, inadequate

public healthcare, and terrorism. India is also a part of SAARC. It has the third-largest standing

army in the world and ranks eighth in military expenditure among nations. India is

a federal constitutional republic governed under a parliamentary system consisting of 28 states

and 7 union territories. India is a pluralistic, multilingual, and a multiethnic society. It is also

home to a diversity of wildlife in a variety of protected habitats.

Many notable companies are operating in India. These companies are doing business in various

sectors including aerospace & defense, automotive, banking, biotechnology, information

technology, insurance, power, real estate, retail, telecommunications. The attraction of India as

a positive investment location can be attributed to the positive approach of successive Indian

governments to the promotion of inward investment, a very favorable corporate tax rate and a

skilled and flexible labor pool.

This report provides a complete and comprehensive detail to the major commercial and legal

issues to be considered by international investors establishing business operations in India.

Particular businesses or industries may also be subject to specific legal requirements and

specific advice may be required in these circumstances.

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Region South Asia

Capital New Delhi

Population 1.27 billion

Area 3,287,590 km²

Language Hindi and English

Political system The 1950 constitution provides for a parliamentary system of

government with a powerful parliament and three independent

branches: the executive, the legislature and the judiciary

GDP $1.946 trillion (nominal)

GDP growth 4.986% (2013–14)

Currency Indian Rupee (INR)

Ease of doing

business rank

132nd

Cumulative FDI

inflows

$198.68 billion

Foreign

exchange

reserves

$292.33 billion

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Venture Description

Indian Pottery Industry India is one of the important suppliers of handicrafts to the world market. The handicraft export

business is increasing at a consistent pace and is spreading its wings to the various nations. In

2012–13, Indian handicrafts exports stood at US$ 3.3 billion, registering a growth of

approximately 22% over the previous year. Exports of Indian handicrafts have grown at a rate

of around 7% since 2001–02. The Handicraft industry is a major source of income for rural

communities. India along with several other developing countries of Asia is considered as one

of the first Asian countries to manufacture as well as export pottery products. The important

markets for Indian pottery products are USA, Mexico, Hong Kong, Japan, Germany, Italy and

France.

Pottery industry is economically important for its low capital investment, high ratio of value

addition and high potential for export and foreign exchange earnings for the country. It is highly

labor intensive cottage based industry and decentralized, being spread all over the country in

rural and urban areas. Numerous artisans are engaged in crafts work on part-time basis. The

industry provides employment to over six million artisans, which include a large number of

women and people belonging to the weaker sections of the society. The pottery industry in

India provides mass employment along with betterment of the living standards; both the village

and city people comprise the work force of the industry.

India pottery industry, over the years, has bravely battled several hindrances and emerged as

the proud winner. This profit-earning industry of India is without any application of modern

day technical support; most of the technologies are outdated and are also inefficient at the same

time. It has been estimated that over 40 lacs rural potters still work with the help of conventional

pottery wheels. Of the 15 lacs traditionally skilled potters, about 95% are involved in the work

of conventional red local pottery. In addition, the products made in the village pottery are only

sold to a restricted part of the society. The products of artisan are branded as ‘local’, ‘primitive’,

‘ethnic’ and similar adjectives that can denote qualitatively inferior products when compared

with machine-made, mass-produced objects of uniform quality.

Artisans can start their unit by availing of the Composite Loan scheme, where they need not

contribute any of their own capital. Maximum loan limit is Rs. 25.00 lacs. The most important

are the partial tax holiday for newly established small scale industrial undertakings. Promotion

Council for Handicrafts (EPCH) is a non-profit organization, with an object to promote,

support, protect, maintain and increase the export of handicrafts. The Council has created

necessary infrastructure as well as marketing and information facilities. EPCH is offering

professional advice and services to members in areas of technology up gradation, quality and

design improvement, standards and specifications, product development, innovation etc. The

opportunities in this sector are enormous due to less capital intensive, extensive promotion &

support by Government, funding - finance & subsidies, raw material procurement, technical &

managerial skills, export promotion, growth in demand in the domestic market size due to

overall economic growth and increasing export potential for Indian products.

The Ministry has a number of programmers to help and assist entrepreneurs and small

businesses. If you are planning to set up business, you may contact National Institute for

Entrepreneurship and Small Business Development (NIESBUD ), National Institute for Micro,

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Small and Medium Enterprises (NI-MSME), Indian Institute of Entrepreneurship (IIE) or the

Development Commissioner (DCMSME) for details about their programmers.

Artisans Blue Pottery Project Multan has the historical and cultural heritage of Blue Pottery and “Multani Mitti” (Clay) is

traditional local craft of the area. This approach will provide employment opportunities to the

existing artisan and the newly created workforce trained through R&D at their doorsteps. The

resultant sustainable livelihood will be a key for poverty alleviation and preservation of the

heritage. For effective implementation of the concept, it is imperative to focus on backward

areas of the country, and develop indigenous products

Overview of Project Proposed project is a Public Private Partnership for the preservation of Multan’s legendary

heritage of Blue Pottery and generation of economic activity through skill development, job

opportunities and access to local/international markets. The project will lead to the

establishment of a research, development and training facility for Blue Pottery craftsmen and

trial production of products utilizing modern technologies. Furthermore a well-equipped

business center would locate the potential domestic and international markets. This will be a

pilot project and later on the activity can be extended for bigger scopes of education, training

and production.

Project Objectives ֎ Revival of traditional craft of Blue Pottery industry/sector.

֎ Enhancing Competitiveness and Productivity of the Blue Pottery Industry in India

֎ Economic Empowerment of marginalized section of society including women, and

landless village artisans, through skill development and provision of opportunities for

income generation

֎ Training of artisans on modern lines in Blue Pottery

֎ Establishment of state of the art R&D center

֎ Product development and diversification

About us Artisans is the well renowned Manufacturer of Blue Pottery. It’s Warehouse and Showroom

are housed in the city of Multan. Artisans date back to 2005 and was founded by an

enthusiastic team. Owing to their entrepreneurial zeal, Artisans has been instrumental in

creating more than 300 Blue Pottery Products and 1000 unique designs of their own vision and

imagination. The Company supports hundreds of Blue Pottery craftsmen and their families in

Multan and work jointly to create a self-reliant atmosphere in the villages where this craft is

still professed.

A lively and vibrant persona exemplified – that is what Artisans is all about. One can see the

magnitude, grace and fortitude instilled in this powerhouse of Artisans whose goal is to work

for the glory and stature of Blue Pottery. The resurrection journey of Blue Pottery commenced

during the year 2005, when Artisans was inaugurated in Multan. Artisans instantly attracted to

the vibrancy, grace, feel and demure kind of styling of the traditional Blue Pottery merchandise

on display. Artisans is well aware of the fact that the craftsmen had no means of marketing

their products and had to sustain on the meagre sum of money that they made when a sale was

made by them, which was by no means a regular feature for them.

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At that time, the traditional Blue Pottery items consisted of big vases, pots and other heavy

items. This naturally needed a big and rich customer owing to the size and material cost of the

products. Artisans pondered on the possibilities of innovating away from the well-trodden path

of Blue Pottery items and envisioned small, delicate and day-to-day useful items made with the

same materials. The result of the ingenious vision and dedication to the craft brought forth

beauty and intricacy in the form of beads, curtain rods, ashtrays, candle stands, lanterns,

coasters, decanters, perfume bottles and other astonishing but useful items.

Work Culture and Practices at Artisans Artisans work culture and practices are based on building self-reliant innumerable units right

at the place of residence of the artisans itself. Since the time that Artisans started going to the

villages, the whole concept was to let the craftsmen live at their own abode and do farming

along with making pottery. Artisans always wanted the craftsmen to be at their homes and farm

lands rather than coming to live in a cramped room in the city.

This helps the crafts people to work at their own will and wish with no pressure of time and

money, to shed. Neither do they have to take the trouble of coming to a factory workshop or

some other place for creating Blue Pottery items. They can stay at home and work as well as

cater to the need of the family and farming.

The company promotes new and innovative designs and items on a regular basis for the Blue

Pottery items. The company appreciates and encourages new streams of thoughts and ideas

from its creative artists which give rise to new business opportunities and gains for the company

as well as the craftsmen.

Vision If your eyes like it, your heart will love it.

Mission Our mission is about exceptional style, outstanding services and exceeding customer

expectations. At Artisans, we believe that it takes two major principles to provide customers

with the best service. First is pride in the quality of our product. Second is making sure we

provide you with the most reasonable price

Growth Opportunities Market in India is quite attractive and there are almost no competitors. The market where

Artisan will firstly show up lies in Delhi known as “Dilli Haat”. The market is famous for its

shops of handicrafts and clay pottery particularly Jaipur pottery. But those are just the shops

and no particular firm is operating there. So, Artisan would be facing quite relaxing

environment in the market and there are very attractive growth opportunities as well.

The factors promoting our company are:

֎ Low labor cost

֎ Innovative and unique designs

֎ Talented and expert workers

֎ Skillful management

Location Our goal is to target the general people, so we have chosen to open our outlet in a very

traditional market, “Dilli Haat”. DILLI HAAT is located in the commercial centers of South

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Delhi. The 6 acres of land on which this complex is situated was salvaged as part of a

reclamation project and transformed into a plaza. Extensive foundation work, small thatched

roof cottages and kiosks give the plaza a village atmosphere Dilli Haat, INA Market is accessed

through INA underground station of Delhi Metro, Dilli Haat INA is open to public, 10.30 am

to 10.00 pm., seven days a week, at a nominal entrance fee, Rs. 20 (Adult), and Rs. 10

(Children) but our edge in that market would be our own outlet. In Dilli Haat there are a few

shops and mostly are the stalls, the stalls are for 15 days and they are kept rotating. So a fix

location is also going to be an edge for Artisan.

The Business Environment The government of India is looking forward to improve their economy’s regulatory

environment for the business. World Bank has ranked India at 134th number for doing business.

For policy makers, knowing that where their economy stands is of great importance. Also

useful is to know where they stand in providing an ease of doing business and where their

comparative economies stand. This ease can be provided by the analysis of various

environmental factors that influence the economy of India and which an investor considers

before entering for business in India market.

1. Political Environment The term Political environment involves the elements that are related to government affairs

such as type of nature of ruling government, government view towards different societies,

policy changes implemented by different governments etc. The political environment has direct

and strong influence on the business transactions and business proceedings. So businessman

must scan this environment very carefully.

India's financial system, the largest in South Asia, is characterized by heavy government

involvement. The national policies of India have always depended upon the policies of a

political party. In this way political environment of a country has great impact on the business

houses. In short, important economic policies such as industrial policy, foreign capital policy,

fiscal policy and import policy are made under the umbrella of ruling government mandate

which establishes a great impact of political & legal environment on the business houses. A

stable and dynamic political environment is way too much important for the business growth.

In India, there are three political structures or institutions. These political institutions i.e.

Legislature, Executive and Judiciary play a vital role in economic policies as well as in

development of country whereas the legislature is vested with most vital powers like policy

making, budget making and executive control. Every decision made by the legislature directly

affects the business sectors. The purpose of legislature is to ensure that the businesses are

generating justifies profits and their activities are not hazardous to the society. The second

important political institution is executive. The rules, policies made by the legislature are

maintained and supervised by the executives. In this way, the functions of executive also effects

the economic development. Sometimes there rises a conflict between the executives and

business houses regarding the implementation of the policies made by the legislature. Such

conflicts are resolved by the third institution- judiciary. Judiciary interrupts in such conflicts

for the justified settlement among the both parties.

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It is a universal phenomenon that state controls economy. In the modern era, two most

powerful institutions in the society are ‘business’ and government which work on a common

motive i-e., economic development of the country and work with mutual co-ordination in

making the foreign and domestic policies for a nation. Normally government plays an

important role in an economy and in making the rules and regulations of the economy. The

reservation of industries to small scale, public and cooperative sector, licensing system, import

and export regulations, the subsidies for different sectors are some examples of regulatory

measurements of the governments.

A well planned economic plan is necessary to be designed and followed by the government

which ultimately may lead a country on the path of development. Government plays a vital role

in planning economy. How to manage resources in order to achieve the goal within the time

frame set etc. are the basic needs for economic and proper planning is most important tool for

the same.

2. Legal Environment Legal environment constitutes the laws and various legislations passed in the parliament. The

businessmen cannot overlook the legislations because they have to perform their business

transactions within the framework of legal environment. The common legislation passed by the

Indian governments and enforced by the executives are Trade Mark Act, Essential Commodity

Act, Weights and Measures Act, etc. Most of the time legal environments put constraints on

the businessmen but sometimes they provide opportunities also.

In India, it takes an average of 35 days to start a company, which is very small as compared

with the world average of 48 days. Obtaining a business license and closing a business can be

very difficult because of the sluggish bureaucracy and corrupt officials. All businesses must

contend with extensive federal and state regulation as well as an infamously slow bureaucracy.

The overall freedom to start, operate, and close a business is significantly restricted by the

national regulatory environment.

The government of India under the Essential Commodities Act of 1955 applies price controls

at three levels: factory, wholesale, and retail on "essential" commodities; electricity, some

petroleum products and certain types of coal, and pharmaceuticals.

India's weighted average tariff rate was 14.4 percent in 2005. Non-tariff barriers include

excessive bureaucracy, strict licensing requirements, export subsidies, import taxes and

certifications on many goods, and a negative import list that bans or restricts many goods.

India's tax rates are moderate. Both the top income tax rate and the top corporate tax rate are

33 percent (a top rate of 30 percent plus a 10 percent surcharge). Other taxes include a dividend

tax, a property tax, and a tax on insurance contracts. In the most recent year, overall tax revenue

as a percentage of GDP was 10.2 percent.

India controls foreign investment with limits on equity and voting rights and mandatory

government approvals. FDI is kept at a certain level by the imposition of complex rules and in

some sectors, even prohibits it. Rules established in 2005 maintain restrictions on most existing

joint ventures but allow new ones to negotiate their own terms on a commercial basis. Central

bank approval is required for residents to open foreign currency accounts, either domestically

or abroad, which are subject to significant restrictions.

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India also provides protection to Intellectual Property Rights (IPRs) in accordance with its

obligations under the Trade-Related Aspects of Intellectual Property Rights (TRIPS)

Agreement of the WTO. India has also made amendments in its Patents Act 1970, three times

since 1999. Indian Patents Act is fully compliant with India's obligations under the TRIPS

Agreement of the WTO.

India's copyright law, laid down in the Indian Copyright Act 1957 as amended by Copyright

(Amendment) Act 1999, fully reflects the Berne Convention on Copyrights, to which India is

a party. India also provides trademark protection for marks of goods and services, collective

marks, certification trademarks and well-known marks under the Trademarks Act 1999.

Application for registration of a trademark should be filed with the trademark registry.

Trademark is registered after publication in the trademarks journal to invite opposition and

after further examination.

3. Economic Environment An economic system is the system of producing and distributing of goods and services and

allocating resources in a society. There are various economic systems like market economy

where consumers decide which goods and services they want and businesses provide these. So

in this economic system individuals own and operate different factions of production, for

example free enterprise and capitalism. Second type of economy is command economy where

the government decides what and how much will be produced. So in this economic system

government owns and operates all factions of production, for example Socialism and

communism. Third type of economy is called mixed economy. A mixed economy is actually

an economic system with elements of both the above economic systems. It contains the features

of both market economy and command economy.

India has a mixed economic system. Neither socialist nor capitalist, but somewhere in between.

India's mixed economy combines features of both capitalist market economy and the socialist

command economy. The public sector generally covers areas which are deemed too important

or not profitable enough to leave to the market, including such services as the railways and

postal system.

The Indian economic policy after independence was influenced by the colonial experience.

These policies included a strong emphasis on import substitution, intervention of the state in

labor and financial markets, industrialization, central planning, large public sector, business

regulation. Five-Year Plans were introduced. In the mid-1950s, industries such as electrical

plants, water, insurance, mining, telecommunications, steel, machine tools were nationalized.

Between 1947 and 1990, regulations and licenses were needed to set up businesses in India.

This was termed as License Raj. There were restrictions on foreign direct investment (FDI).

The Green Revolution in India was introduced with high-yielding seeds varieties, fertilizers

and irrigation after 1965. This helped in making the country self-sufficient. The government in

the late 80's relaxed restrictions reduced corporate taxes and removed price controls.

From 1947 to 1991, the India Economic System was based on social democratic-based policies.

The policies feature extensive regulation and public ownership which led to slow growth and

corruption. But the economy moved to a market-based system with economic liberalization.

Economic liberalization was initiated in 1991. The reforms abolished the License Raj, ended

public monopolies which allowed automatic approval of foreign direct investment in various

15 April 25, 2014

sectors. Economic liberalization refers to a country "opening up" to the rest of the world with

regards to trade, regulations, taxation and other areas that generally affect business in the

country. As a general rule, you can determine to what degree a country is liberalized

economically by how easy it is to invest and do business in the country. Liberalization policies

include partial or full privatization of government institutions and assets, greater labor market

flexibility, lower tax rates for businesses, less restriction on both domestic and foreign capital,

open markets etc. From that period, India has become one of the fastest growing developing

economies since 1990. It is projected that in 2035, India will be the third largest economy of

the world after US and China.

Economic Risks

High inflation and lack of fiscal discipline at the government level are the important economic

risks in doing business in India. Huge transfer payments to the rural poor, subsidies for food

and fuel, and disproportionate raises for state employees and retirees have bled the economy

from time to time. Furthermore, foreign companies need to watch exchange rate risks and

interest rate risks carefully to do business in India. Another risk is lack of resources, particularly

in the energy sector. The country is heavily dependent on resources imported from other

countries. There is also a need to improve the infrastructure. India has a huge young population.

Multinationals entering India assume that India has a large workforce. However, most of Indian

population resides in rural areas and illiteracy rates are still high in India. In India, customer

requirements change by each state and within the state. The staple food of North Indians is

wheat, and of South Indians is rice. Due to differences in religion, culture, language, weather

and infrastructure, customer demands changes nearly every 100 kilometer. This means,

multinationals have to enter a number of niche markets and may not enjoy the large economies

of scale for selling a single product across the country. Most of the growth has been because

of consumer demand within the country and by lots of travelers coming to India for health

tourism.

4. Monetary Environment Indian monetary system is managed by Reserve Bank of India. It is based on inconvertible

paper currency. The internal purposes are met by currency notes and coins. For external

purposes it can be converted into foreign currencies. The main features of Indian currency

system can be divided into two heads: internal features and external features.

Internal Features of Indian Currency System

The following are the features of currency system of India:

1. The unit of money in India is Rupee.

2. The present monetary standard of India is the managed paper currency standard and

currency is not convertible into gold.

3. The Rupee coin in India is standard token coin whose intrinsic value of the metal is less

than its face value. The rupee coin is an unlimited legal tender in which payment of any

amount can be made. There are also a two rupee coin and a five rupee coin in circulation

since 1990.

4. There are also subsidiary coins in India to assist the token money. At present, coins of

the denominations of 1 paisa and 3, 5, 10, 20, 25 and 50 paisa are in circulation. The 50

paisa coin is unlimited legal tender. But all coins from 1 paisa to 25 paisa are limited

16 April 25, 2014

legal tender for which payment can be made only up to Rs.25 in India. The minting of

1, 3 and 5 paisa coins has been stopped since 1996.

5. Paper Currency in India consists of notes of various denominations which are issued by

the RBI and the Government of India. The one rupee note is issued by the Ministry of

Finance and bears the signature of the secretary. All currency notes are legal tender.

Currency notes of the denominations of 2, 5, 10, 20, 50, 100 and 500 are issued by the

Reserve bank of India. Printing of Rs. 1, 2 and 5 notes has been stopped and Rs. 1000

notes are started. RBI had issued Rs. 1000 note after 22 years in October, 2000.

6. The present system of note issue in India is the Minimum Reserve System: Under this

system, the RBI (Reserve Bank of India) is authorized to issue notes up to any extent

but it must keep a statutory minimum reserve of gold and foreign securities. The RBI

is required to keep minimum reserve of Rs. 200 crores. Of this, Rs. 115 crores must be

in gold and Rs. 85 crores in foreign securities.

External Features of Indian Currency System

Since January 1976 with the signing of Jamaica Agreement, India is following the policy of

floating exchange rates. According to this, the external value of Indian rupee is linked to a

basket of currencies of those countries with which India has large trade.

Important Terms Related To Indian Currency

Hard Currency: A currency traded in a foreign exchange market for which is persistently

high relative to the supply. e.g., Pound, Euro and Dollar.

Soft Currency: A currency whose exchange rate is tending to fall because of persistent

balance of payments deficits or because of the building up of speculative selling of currency is

expectation of a change in its exchange rate. Governments are unwilling to hold a soft currency

in their foreign exchange reserves.

Reserve Currency: A currency which government and international institutions are willing

to hold in their gold and foreign exchange reserves and finance as significant proportion of

international trade.

Fiat Money: Currency which is legally decreed as valid means of financing transactions. It

is legal tender.

Hot Money: Funds which flow into a country to take advantage of favorable rates of interest

in that country. They influence the balance of payments and strengthen the exchange rate of

the recipient country.

Indian Rupee Exchange Rates

Currency exchange rates for the Indian rupee (INR) converted to other foreign currencies.

These rates show what INR1 would be exchanged for in the foreign currency.

Pakistani Rupees: Rs. 1 Equal to Indian Rupees: Rs. 0.62

India Profit Repatriation

Though a FDI attraction, for its huge demand potential, India is lagging a little behind with

economic liberalization and reforms, but is actually very good when it comes to profit

repatriation. India allows free repatriation of profits once all the local and central (tax) liabilities

are met. In fact, throughout history, there has never been an incident that India has failed to

provide foreign exchange for repatriation. Investment exit decisions are also fairly simple, and

17 April 25, 2014

profits can be repatriated once all the tax debt and other obligations are satisfied. Problems

only arise when people evade or circumvent the already simple rules, or do so out of ignorance.

Managing Currency Risk

This is applicable for international businessmen running franchises for blue pottery in India.

Their first investment is normally done in international currency while the initial earnings are

in INR. There is a risk in these cases that the INR might lose value with respect to an

international currency.

They can adopt some protection against these risks by short selling futures valued in INR or

investing small amounts in the futures markets of their respective countries. However, in case

of currencies that are worth more than the INR, such protection is not always required.

One of the added uncertainties of conducting trade on an international basis is the fluctuation

of in exchange rates among currencies. The relative value between the Indian Rupee and the

foreign currency may change between the time the deal is made and the payment is received.

A devaluation or rise in the foreign currency against the rupee causes either a windfall or loss

to one party or the other involved in the transaction.

Terms and Concepts

International trade and the other transactions involving cross border flows of funds require the

participants to enter the world of foreign exchange. Foreign exchange is defined as claims

payable in a foreign country in a foreign currency. As a rule businesses and individuals operate

using their own national currencies – money recognized and legally acceptable for transactions

with in the particular currency zone.

5. Trade Environment The issue of granting Most Favorite Nation status to India by Pakistan under the World Trade

Organization provisions had been in the limelight lately. India gave the MFN status to Pakistan

in trade since 1995-96. The question arises that whether the principle of reciprocity is so

fundamental to trade under the multilateral trade regime that not granting MFN status to India

will amount to against the WTO Agreements by Pakistan.

Unfortunately, the history of trade relations between the two countries has been disappointing.

Immediately after independence, India was Pakistan’s most important trading partner. In 1948-

49, 56% of Pakistan’s exports were to India and 32 % of its imports came from India. Under

the present trade policy 678 items come under permissible imports from India. Pakistan

government has cleared 78 items for tariff concessions to India under SAPTA as a CBM.

Although the new expanded list of importable items includes several important items like milk

powder, unsweetened milk, ferrous products, urea, super phosphates, marble and granite tiles,

graphite electrodes, wrist watches and wall clocks, yet it does not include items like

automotive, consumer durable, heavy engineering goods, cement, computer software and most

drugs and pharmaceuticals which have high potential. If this policy were maintained, none but

Pakistan would be the ultimate loser in the long run. Moreover, by providing the MFN status

Pakistan can claim access to the huge Indian market without any reservations. Raw materials

required for Pakistan’s industry could be cheaply imported from India instead of the far off

developed countries. Indian economy is not as big as compared to US, Canada, EU, Japan, etc.,

which are allowed to have normal trade with Pakistan on almost all items.

18 April 25, 2014

Those who oppose Pakistan’s granting MFN status to India are of the opinion that there is a

danger that by doing so, India will flood Pakistan’s domestic markets with Indian commodities

killing Pakistani entrepreneurs. Even the Production Ministry is of the view that allowing

concession of customs duties would hurt the local industry, especially milk powder,

unsweetened milk and ferrous products as tariff is low on the import of these items. But,

Pakistan has to ensure that an MFN treatment is meted out to the products coming from India.

Otherwise, import duties imposed by the Government of Pakistan will just be another form of

taxation on Pakistani consumers. Import duties are not paid by Indian exporters but come out

of Pakistani importers who then pass the duties on to Pakistani consumers. It is hoped that with

the passage of time India would further reduce its tariffs and completely eliminate the non-

tariff barriers, which is the ultimate goal of the international trade regime under WTO.

In the year 2001-02, Indian exports to Pakistan were $ 186.521 million, while Pakistan exported

$ 49.227 million in goods to India. And, during the first eight months of the financial year

2002-03, Pakistan's exports stood at $39.903 million against imports of $106.932 million from

India during the same period. Thus, despite enjoying MFN status Pakistan is suffering from a

trade gap which was more than $137 million for the last year and India despite being a non-

MFN state earned that much from its exports to Pakistan. Last year’s figures also show that the

official trade despite being as low as $ 235 million.

Actually, Pakistan – India’s informal trade has two components. One, illegal trade transacted

through the land borders, secondly circular or informal trade which is carried out through third

countries and re-exported from there to Pakistan. Even without granting MFN status, Indian

products are being smuggled into Pakistan markets through the porous border between the two

countries. Pakistan loses more than $500 million annually in custom duties to smugglers. This

trade includes chemicals, industrial machinery, cement, tires, tea, medicines, and videotapes,

cosmetics and viscose fiber. There are other goods that also find their way through third

markets such as Dubai and Singapore. Pakistan and India usually trade about 4000 items each

year.

India and Pakistan have also recently signed agreements addressing three key issues that have

long plagued business in the region: standards and testing, custom clearance and dispute

resolution. Major political parties and other influential stakeholders have become aware that

Pakistan has not taken advantage of its strategic location between two most populous and high

performance economies i.e. China and India. With the signing of the Free Trade agreement

with China, Pakistani markets and producers have already adjusted to relatively cheaper

imports from China. India can augment its exports to Pakistan in three categories – machinery,

mechanical appliances and electrical equipment, and chemicals and textiles. These three

categories account for 54 percent of India’s export potential.

19 April 25, 2014

The present situation of India – Pakistan Trade, Direction of Trade Flows and their trading

patterns can be seen in Table 1 – 4.

Table 1: India Pakistan Trade (USD in millions)

Year Pakistan’s exports

to India

India’s exports to

Pakistan

Total trade flows

2004-05 288 547 835

2005-06 293 802 1095

2006-07 343 1235 1578

2007-08 255 1701 1956

2008-09 320 1914 2234

2011-12 313 1659 1972

Table 2: Direction of Trade Flows from India and Pakistan

Trade flows

from

Within

Region

To other developing

countries

To high income

countries

India 4.2 4.5 17.5

Pakistan 4.5 12.4 12.0

Table 3: India’s Trade with Pakistan & the Rest of the World (USD in millions)

Exports to Pakistan 1,914

India’s total Exports 189,000

Percentage Share of Pakistan 1.01%

Imports from Pakistan 320

India’s Total Imports 257,600

Percentage Share of Pakistan 0.12%

Trade from Pakistan 2,234

India’s Total Trade 446,600

Percentage Share of Pakistan 0.50%

20 April 25, 2014

Table 4: Pakistan’s Trade with India & the Rest of the World (USD in millions)

Exports to India 320

Pakistan’s total Exports 19,121

Percentage Share of India 1.7%

Imports from India 1,914

Pakistan’s Total Imports 31,747

Percentage Share of India 6.0%

Trade from India 2,234

Pakistan’s Total Trade 50,868

Percentage Share of India 4.39%

Major Risks to Trade Relations

First, there exists a huge Trust Deficit between the two countries for the reasons that are well

known. Second, the South Asian political parties when in opposition behave quite differently

and diametrically opposed to their policies when in power. The third risk arises mainly from

the possible ascendency of the losers lobby. It must be realized that in the short run there will

be some losers and some winners from opening up of the trade. Fourth, the media and the civil

society in both India and Pakistan have become quite powerful. Fifth, there would be constant

need for the validation of the new popular narrative that the idea of India- Pakistan Trade are

espousing. Sixth, the Composite Dialogue on outstanding political issues should continue with

seriousness, commitment and constructive attitude. Seventh, other areas of economic

cooperation such as subcontracting by Indian IT Firms to Pakistani Companies, Tourist

Packages, and collaboration in Higher Education, Agriculture, Health, Research and

Development between the two countries would be highly beneficial.

6. Cultural Environment The province of Punjab is the land of art, culture, heritage, civilization, history and various

innovative skills that the people of this fertile zone are blessed with. When we talk about

ceramic art of Pakistan, Multan is the most worth mentioning area and is the cultural, historic

and artistic city of Punjab.

The history of ceramic art in Multan is as old as the history of this city, in 1853, during an

excavation on Qillah Kohna Qasim Bagh, Alexander Cunningham a famous British

archeologist of his time, found glazed tiles which were made in 900 A. It was a remarkable

discovery by Alexander; since it gave evidence that the tiles were used in a masjid built during

the Mohammed Bin Qasim era, when he arrived in Multan.

The ceramic tiles of this area gained popularity with the passage of time and were frequently

used in shrines, masjids, and other buildings to give a fascinating look and tribute to the origin

of this art. The remarkable example of Multani Ceramic Art is seen in the form of Talpur

Tombs, Shrine of Uchh Sharif in Cholistan, Masjid Nawaban and Shrine of Shah Yousaf Qadri

(1153). Other classic and finest pieces of art created with Multani Ceramic Art are found in

Shrines of Sachal Sarmast, Shah Abdul Latif Bhittai, Eidgah Multan, Lahore Museum and even

some artistic work are displayed in London Museum to represent the rich ceramic art of

Pakistan.

21 April 25, 2014

The centuries old art and craft tradition is also known as Multani pottery, Blue Pottery or

Multani Kashi. The blue pottery is very famous and a center of attraction for the interior

designers, therefore it is proudly displayed and used for the interior of important buildings like,

President house, Prime Minister Secretariat, Culture Mission of Pakistan and Pakistan

embassy.

India has one of the richest and most exciting cultural tradition in the world. Indian culture

goes back several thousand year. That is why it is known as one of the oldest civilization in the

world. People of many different religions live in India. Among the major religion in India,

Hinduism is the largest, followed by Islam, Christianity, Sikhism, Buddhism and Jainism. The

constitution of India recognizes 18 major languages. Hindi is the official language of India.

Before Independence English was the official language of India. Dance & Music are an

important part of the culture. The people tell stories about their history through these forms of

arts.

When people think of India, they think of its architecture. The ruins of the Indus valley

civilization tell us how advanced we were even 5000 ago. The Kailash temple at Ellora, the

Meenakshi temple at Madurai, Qutub Minar, and the forts of Agra, Gwalior and Chittorgarh,

the Victoria Memorial at Kolkata are the finest specimens of Indian architecture.

India is a land of festivals. People in India celebrate festivals like Holi, Diwali, Eid, Onam,

Bihu, Guruparb and Pongal. These festivals speak of the cultural unity of country.Most Indian

values are Indian and follow Hindu tradition. Family integrity, loyalty and unity are

emphasized in the Indian culture.

Education in is divided into primary level, elementary level, secondary level, undergraduate

level and postgraduate level. Due to the low quality of Indian public schools approximately 27

% of all Indian students attend private schools.

Hofstede Model

Hofstede’s Cultural Dimensions: India vs. World Average

Power Distance Index PDI (India 77 v/s World Average 56.5)

Some tips to for the high PDI workplace…

֎ As status is recognized by age, university degree and profession, use of a person’s title

is important. Address someone as Dr. or Professor whenever possible. Do not call

someone by their first name until they ask you to.

֎ Put your university degree or any accreditations on your business card

֎ Deploy senior staff members to communicate and make announcements to general staff

֎ Respect is based on seniority and not necessarily on proficiency, skills or knowledge

֎ Lay out clear instructions and procedures to employees

Individualism IDV (India 48 v/s World Average 40)

Some tips for the low IDV workplace…

֎ Aim to build lasting relationships

֎ Expect low job turnover

֎ Reward/recognize the whole group/team, not individuals

֎ Avoid asking pointed questions

֎ Do not expect decisions to be made at meetings, as meetings are merely forums for exchange of

information

֎ Allow time in meetings for team members to consent and consult

֎ Be prepared to be asked personal questions or to be invited to family events by peers

22 April 25, 2014

Some tips for the low UAI workplace…

֎ Present a bottom line, an objective, then build your case around questions

֎ Expect frequent rescheduling of meetings

֎ It is a good idea to confirm a day before the scheduled meeting

֎ Be prepared for ambiguity and vagueness

7. Business Environment SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in a project or in a business venture. It involves specifying

the objective of the business venture or project and identifying the internal and external factors

that are favorable and unfavorable to achieve that objective.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT

analysis may be incorporated into the strategic planning model. Strategic Planning has been

the subject of much research.

Strengths: Characteristics of the business or team that give it an advantage over others in

the industry.

Weaknesses: Characteristics that place the firm at a disadvantage relative to others.

Opportunities: External chances to make greater sales or profits in the environment.

Threats: External elements in the environment that could cause trouble for the business.

The aim of any SWOT analysis is to identify the key internal and external factors that are

important to achieving the objective.

Indian industry has a developing economy. With improved investment and government

continual support, the industrial performance is expected to do better. But in large run, the

performance depends on how well the reforms of government are initiated. The investment and

growth in infrastructure, the continued availability of natural resources avail of low-cost, high

skill workforce and global market have huge impact on the economy.

S – Strengths

֎ Low investment infrastructure.

֎ It is a symbol of Craft Heritage.

֎ Scope of blending Blue Pottery with other crafts

֎ Traditional motifs: Traditional motifs the most important element of this craft, which

adds the value to this craft.

֎ Non communal craft, community such as Rajput, Prajaapt, Natt, Kumhar and Muslims

are involved in this trade.

֎ Raw material is available at low cost.

W - Weaknesses

֎ Presence of lead in glass cullet used in body composition make it unfit to use for

eatables items and export market.

֎ Regular degradation in the quality of design and painting at production level.

֎ Completion of orders not on time due to laborious and time taking process.

֎ Presence of moisture absorbing component in body.

֎ Fragileness of products creates difficulty in transportation.

23 April 25, 2014

֎ Lack of infrastructure for storage of raw material, non-fired finished products and fired

products.

֎ No testing lab for research and technical suggestion.

֎ No costing idea about the product. Sudden changes in prices.

֎ Appropriate process of costing is not followed by some artisans.

O - Opportunity

֎ There is an urgent requirement of new design interventions in the field of Body

composition, tools and machines.

֎ Scope to develop new surface design patterns according to the current market.

֎ More scope in handicraft export market.

֎ Provision of loan and profitable policies for small units.

֎ More scope of employment by involving other crafts in Blue pottery like Patwa, iron,

wood work.

֎ Vocational training of making small utility products like Jewellery and lifestyle

accessories products could be helpful to provide employment during monsoon.

T - Threats

֎ Lack of Unity

֎ Unhealthy competition with Jaipur Pottery. Similar looking products are available in

market.

֎ Young generation not interested in taking this craft as their profession.

֎ Leaving work: Due to no reasonable wages, laborious work, and regular craftsmen are

migrating to other regular jobs in nearby cities

֎ New trend of using clipart and other foreign

֎ No alternate of wood kiln.

8. Key Success Factors Some key success factors or practical tips are given below:

1. Conceive the “Wining” Concept

A well-defined concept stands a much better chance of long-term success than some

vague notion. To start, it is wise to first set specific goals and decide on the framework

you will use to measure your company’s success.

2. Longevity

This can be described as the art of being able to maintain success over time while

adjusting to meet the changing periodic market demands according to the brand’s short

term objective and long term goals. To open Artisan successfully and become profitable

is one thing, but to maintain that success over a long period of time is “winning.”

3. Consistency

The main goal must be to truly develop a winning concept which requires implementing

systems and procedures to ensure consistency of quality and operations.

4. Expandability

Consistency of quality service, from out of the box ideas till executions can result in

further exploring opportunities while strengthening your image in the market place.

24 April 25, 2014

5. Service Costing

The most important factors in the strategic planning of a business is the development

of service portfolio and the corresponding cost. It involves designing service mix and

selection of quality human resources. Service costing is a very tricky task because you

need to quote project wise prices so that you can operate profitably and, just as

important, offer your targeted customers a good price/value relationship. The costing

would include the time input of the human resource which would be involved with the

client.

6. Market Research

This is probably the most critical factor for running a successful business. You need to

visit market; see how your ‘concept’ would fit into the sector you are planning to target.

Talk to customers to learn about their demands. The important point to note is that a

concept that has worked well in a particular geographical area may or may not work in

the other. Another point to note and take into consideration is competition. If your

market is saturated with similar companies and the client base may not be large enough,

you may want to rethink your concept.

Project Estimation The start-up cost of the blue Pottery named “Artisan” consists primarily of firing equipment

and establish franchise. Active partner and a silent partner will invest equally. Artisan will also

secure a long-term loan.

Start-up Requirement

Start-up Expenses INR

Legal

Stationary

Broachers

Insurance

Warehouse rent

Decoration

50,000

150,000

60,000

300,000

50,000

250,000

Total Start-up Expenses 860,000

Start-up Assets

Start-up Assets INR

Cash Required

Building

Start-up Inventories

Delivery Vehicles

Furniture

1500,000

4,000,000

2500,000

700,000

250,000

Total Assets Require 8,950,000

Total Start-up Requirement 9,810,000

25 April 25, 2014

The following table and charts present projected profit and loss for the next three years.

Pro-Forma Profit and Loss

Year 1 Year 2 Year 3

Sales

Direct Cost of Sales

Gross Margin

6,200,000

3,160,000

3.040,000

7,400,000

3,400,000

4,000,000

8,800,000

3,750,000

5,050,000

Expenses

Manager Salaries

Payrolls

Sale & Marketing Expenses

Transportation Expenses

Utilities

Insurance

Rent

400,000

200,000

70,000

45,000

200,000

25,000

500,000

420,000

290,000

80,000

55,000

300,000

25,000

560,000

450,000

360,000

95,000

62,000

330,000

25,000

620,000

Total Expenses 1,440,000 1,730,000 1,942,000

Profit 1.600,000 2,270,000 3,108,000

Tax 240,000 340,500 466,200

Net Profit after Tax 1,360,000 1,929,500 2,642,300

The following table and charts present projected Balance Sheet for the next three years.

Pro-Forma Balance Sheet

Year 1 Year 2 Year 3

Assets

Current Assets

Cash

Inventories

Other current assets

1,530,000

2,830,000

500,000

1,840,000

3,460,000

650,000

2,375,000

3,985,000

780,000

Total Current Assets 4,860,000 5,950,000 7,140,000

Fixed Assets

Building

Delivery Vehicle

Furniture

4,000,000

700,000

250,000

4,000,000

1,400,000

360,000

4,600,000

1,700,000

480,000

Total Fixed Assets 4,950,000 5,760,000 6,780,000

Total Assets 9,810,000 11,710,000 13,920,000

Capital & Liabilities

Capital

Net profit

Liabilities

8.240,000

1,360,000

210,000

9,240,000

1,929,500

540,500

10,250,000

2,642,300

1,027,700

Total Capital & Liabilities 9,810,000 11,710,000 13,920,000

26 April 25, 2014

Competitive Advantage Matrix Since we are providing low cost product so we have a competitive edge on that and also we are

providing bit differentiation on that so we have an edge in that.

27 April 25, 2014

Process

28 April 25, 2014

Products ֎ Ashtrays of various type ֎ Candle stands of various form

֎ Bangle Holder ֎ Hukkah

֎ Boxes ֎ Coasters

֎ Beads ֎ Container with lids

֎ Bowls of various type ֎ Various animal shapes

֎ Bottle (Surahi type) with narrow mouth ֎ Incense stick holder

֎ Flower vases ֎ Jug

֎ Beer Mug ֎ Napkin ring

֎ Pen Holder ֎ Trays

֎ Pin Plate ֎ Trinket Box

֎ Soap Dish ֎ Wall Hangings

֎ Bathroom Sets ֎ Tumbler and many more

29 April 25, 2014

Marketing & Sales Strategy We will allocate budget of 0.3 million for marketing activities every year. We will use

pamphlets and brochures to create awareness about our services in our target market. We will

also launch a website of our company, where customers can place order directly. We will use

electronic media, Facebook pages and other social networking sites to reach our target market

through internet.

Innovative Ideas

Innovative ideas for advertisement will be the top most priority of our agency.

Online advertisement

Online advertising is a form of promotion that uses the Internet and World Wide Web

for the expressed purpose of delivering marketing messages to attract customers.

Examples of online advertising include contextual ads that appear on search engine

results pages, banner ads, in text ads, Rich Media Ads, online classified advertising,

advertising networks and e-mail marketing, including e-mail spam.

Social networking

Social networking websites like face book, twitter etc. can be the place for advertising

the brand, while targeting the customers of our target market.

Product placements

Covert advertising, also known as guerrilla advertising, is when a product or brand is

embedded in entertainment and media. For example, in a film, the main character can

use an item or other of a definite brand.

In-store advertising

In-store advertising is any advertisement placed in a retail store. It includes placement

of a product in visible locations in a store, such as at eye level, at the ends of aisles and

near checkout counters (aka POP—Point Of Purchase display), eye-catching displays

promoting a specific product, and advertisements in such places as shopping carts and

in-store video displays.

30 April 25, 2014

Street advertising

Working with products such as Reverse Graffiti, air dancer's and 3D pavement

advertising, the media became an affordable and effective tool for getting brand

messages out into public spaces.

Radio advertising

Another advertising idea you may not have thought of is radio advertising. Running ads

on a local radio station can be both effective and relatively inexpensive.

Trade show participation.

One of the main reasons to participate in trade shows is to be seen and get known. While

participating in big trade shows can be quite expensive, there are a lot of smaller

opportunities that may work well for your business, from trade shows put on by local

business associations through trade shows focused on particular industries.

By choosing several of these advertising ideas and focusing on them, you’ll be able to grow

your customer base much more quickly than you would by relying on word-of-mouth alone.

Like any kind of marketing you do, of course, your small business advertising will be most

effective if you plan your advertising campaign and track your results.

Management & Personnel Requirements ֎ Manager

֎ Cashier

֎ 3 Salesmen (2 Men + 1 Woman)

֎ Others (Guard + Helper)

Important Points from Other Trade Stories.

Every Product Has A Story, So Share It.

Many fair trade crafts sold on the market today have informative story cards attached or nearby

them on the shelf, and there is a reason why. Including story cards with the products, it is simple

yet effective way of informing consumers about what makes your product special.

Cards often contain information on where the product was made and by whom, the artisan

groups’ mission and what material the craft is made of. If the Craft groups develop a website,

consider that as well, so the people interested in learning more about this craft may do so.

A Good Cause Does Ensure A Sale.

It is difficult to convince strangers to feel as passionately about our craft group’s mission. So

it is wise not to rely solely on charity to sell your crafts. Otherwise, we are limiting the amount

of people who will buy your products and restricting your own success. Instead, focus on the

merits of your products, including quality and aesthetic appeal.

Our products are handcrafted by village people but they sell because they are well made,

practically and aesthetically pleasing to customer.

Long Term Trade Relationships Are The Key To A Sustainable Business.

Building long term trade relationships is one of the core criteria. The goal in marketing should

be align with buyers who are interested in purchasing from your group on a continual basis,

otherwise, we may do our group more harm than good. For example:

31 April 25, 2014

If we make a sale of 50 plates, but are used to selling plates one at a time, we may need to hire

additional people and purchase more tools and supplies to fulfill the orders. If there are no

future orders, then you are left with increased overhead costs without the sales to support them.

By developing long term trade relationships, we encourage repeat business from which we can

utilize the consistent income to invest in and grow your business. Through personal

relationships with buyers over time, we can gain valuable insight about product design,

consumer demand, pricing and other important factors that will contribute to the future success

of your business.

Conclusion India may be a complex and challenging market but it is one that cannot be ignored because

India is the second fastest growing economy, after China. The rising income and savings levels,

investment opportunities, huge domestic consumption and younger population will ensure

growth for decades to come. There has been strong growth in recent years as the government

has made a concerted effort to improve the economic strength of the nation. There is however

still a long way to go. Unfortunately it is also one of the poorest countries in the world.

Many organizations think they can simply transplant their normal ways of doing things into

India and expect it to work – it probably won’t! Understanding the Indian mindset, adapting

how your offering fits into Indian needs and keeping your eyes open to the rapid changes that

are happening in India on a daily basis – these are the keys to success in India.

One of the biggest obstacles to overcome when entering the India market or doing business

with India is definitely the cultural differences you will undoubtedly encounter. They do things

differently in India. India, therefore, represents a huge business opportunity but it also

undoubtedly presents risks. As painful as these political and bureaucratic barriers might seem,

India is definitely open for business and those companies and organizations that approach the

India market with the right mindset. India is the world’s largest potential market for goods and

services.

India along with several other developing countries of Asia is considered as one of the first

Asian countries to manufacture as well as export products of pottery. The story of Indian

handicrafts dates back to one of the oldest civilizations of the world. Indian pottery Industry

spread all over the country in rural and urban areas. The pottery industry in India provides mass

employment along with betterment of the living standards. Indian pottery products are very

much demanding in India, as they are a perfect mixture of traditional designs with modern

techniques. Despite of these modern technology and advancement India has not lost the charm

of its handicraft products.

32 April 25, 2014

Brochure Side A

33 April 25, 2014

Brochure Side B

34 April 25, 2014

35 April 25, 2014

36 April 25, 2014

West Kidwai Nagar, Delhi

Artisans Blue Pottery Program

[email protected]

www . artisan - bluepottery.co m

Shop 34, Dilli Haat, Sri Aurobindo Marg,