Chapter 1 Introduction

An Analytical study on Carpet Exports in European Carpet Co.

EUROPEAN CARPET COMPANY

A Project Report submitted in partial fulfillment of the requirements

For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

(Industry Integrated)

TO

MADURAI KAMARAJ UNIVERSITY, MADURAI

BY

ABHISHEK RANJAN SINGH

Enrollment No: A8754903 (2008 – 2010)

Under the guidance of

PROF. Dr. VENU GOPAL

CERTIFICATE

1


This is to certify that the project report

AT


A Project Report submitted in partial fulfillment of the requirements

For the award of the degree of



TO


Is a record of Training carried out by

ABHISHEK RANJAN SINGH

Under my supervision and guidance and that no part of this report has been submitted for the award of any other degree /diploma/fellowship or similar titles or prizes.

FACULTY GUIDE

PROF. Dr. VENU GOPAL

STUDENT’S DECLARATION

I hereby declare that the Project report conducted at


2


Under the guidance of

Prof. Venu Gopal

Submitted in partial fulfillment of the requirements for the degree of



TO


Is my original work and the same has not been submitted for the award of any other degree/diploma/fellowship or other similar titles or prizes

Place: Bangalore ABHISHEK RANJAN SINGH

Date: Enrollment No: A87540903

3


CONTENTS

SL.NO TOPIC PAGE NO.

CHAPTER 1: INTRODUCTION

1.1 General introduction. 11.2 Industry profile. 2-4

a. Origin and Development of the industry. 2b. Growth and present status of the industry. 2-3c. Future of the industry. 3-4

CHAPTER 2: PROFILE OF THE ORGANIZATION

2.1 Origin of the Organization 52.2 Growth and development of the organization 62.3 Present status of the organization 6-112.4 Functional departments of the organization 122.5 Organization structure and organization chart 132.6 Product and service profile of the organization

competitors.14-41

2.7 Market profile of the organization 42

CHAPTER 3: DISCUSSION TRAINING

3.1 Students work profile (role and responsibilities) 433.2 Description on live experience 44

CHAPTER 4: STUDY OF SELECTED RESEARCH PROBLEM

4.1 Statement of research problem 454.2 Statement of research objectives 45-464.3 Research design and methodology 46-494.4 Analysis of data 49-594.5 Summary of findings 59-60

CHAPTER 5: SUMMARY AND CONCLUSION

5.1 Summary of learning experience 61-625.2 Conclusion and recommendations 62-63

Appendix 64-67Bibliography 68

4


CHAPTER 1

INTRODUCTION

5


1.1 General Introduction About The sector

History of the carpet industry in India

Woolen carpets were known in India as early as 500 B.C. References to woven mats

and floor coverings can be found in ancient and medieval Indian literature. But the

most famous type of Indian carpets, pile carpets came to India in the reign of Akbar

in 16th century.

He in 1580A.D. brought certain Persian carpet weavers to India and established

them here. The art grew and flourished here. It was modified as per the royal tastes

and mixed with the Indian arts. The Persian carpets were thus indianized. It spread

to the whole subcontinent with each area having its own specialties.

From the beginning, wool or silks have been the basic material of the knotted

carpets. The wool may have a variety of origins as per the type of carpet being

made. Silk knots are also used in Kashmir region. The patterns varied from vines

and floral patterns, animal and bird figures and geometric and calligraphic patterns.

Rugs from Akbar's reign (1556-1605) used cotton warp and wool pile and color

scheme had multiple shades of blues, greens, and other colors on a red base. The

patterns were an adaptation of Persian style but latter modified to Indian tastes.

Carpets of Jahangir's reign (1605-27) were more refined. Materials like silk and

pashmina were used that allowed greater number of knots to be incorporated.

Patterns resembled miniature paintings. Subtle gradations, and shadings with yarns

were themselves artistic. The patterns were a reflection of manuscript paintings.

They were technically refined in both design and construction. The carpets had

scrolling vines, flowering plants, and more naturalistic animals in pictorial or overall

pattern.

During Shahjahan's reign (1628-58) art of carpets had reached new heights Warps

6


and wefts of fine silk yarns allowed as many as 2,000 knots per square inch. Silk or

Pashmina piles gave the carpets a velvet like texture. Yarn shading was as

sophisticated as in Jahangir's reign. Flowers were now the primary elements of

design.

Though during the reign of Auranzeb (1658 onwards), all crafts saw a downfall of

almost all crafts, carpet craft sustained. Reason may be that they were required for

all religious purposes. The patterns were primarily floral all over with at times

geometric or calligraphic trims.

Chinese and European patterns also influenced the art in their own way. With their

mythical characters finding way in the carpets, it can be clearly seen. Calligraphy

influenced the carpet craft as it did the other crafts.

Though like all other crafts, carpet making also saw a downfall for sometime, the

craft sustained in the traditional families.

The Indian carpets are considered most technically accomplished classical carpets.

The carpet weavers over the time have grown artistically. Indian Carpets are

renowned for their exquisite designs, elegance, attractive colors and workmanship.

AGRA CARPET CLUSTER INTRODUCTION

Agra is known for natural vegetable dyes. Since it was the base of Akbar's empire,

the artists were first established here. The place is known for Persian style carpets.

Agra designs emphasize elegance and simplicity surrounded by bold floral borders.

Turkmen and Abussan varieties are also famous. They are known for realistic bold

patterns. Carpet weaving in India, is also a rural and domestic handicrafts, which is

mostly done for export purpose. Iranian weavers were the originators of carpet

weaving, with Iranian designs, in this country. These designs besides the high quality

of Cashmere wool resulted the flourish of Indian carpet. Dimensions of handmade

carpets depend on

7


order. Carpet industries are skilled based industries. Carpet Industries of Agra is

having its impact over domestic as well as foreign buyers. The main importing

countries / areas are middle East Europe, America etc.. In the radius of 40 km. Of

Agra city there are any small weaver are engaged in city as well as rural areas. Agra

– the city of Taj, is not only a tourist destiny but has its equal importance in the global

trade and industrial production. People feel to visit Agra for its warm hospitality and

also for widen one’s own scope of business and trade.

Carpet manufacturing cities of India

India's silk Carpets are World fame as well as price factor of Indian Carpet is most

competitive beside its durability and long life.

Products-Types of Carpets:_

Carpet means one type of thick fabric equipped with extra yarn on its surface-fabric

which is termed as 'Pile'. This pile is produced by the support of warp yarn or support

of weft yarn. Woven carpets are known 'Ax-minster Carpet', and 'Wilton Carpets,

while Pre-manufactured woven or bonded cloth in case of 'Tufted Carpets' or

'bonded Carpets' etc. Basically, Carpet word may be classified as under in three

categories:

a. One cloth which support the pile with inserting process. It may be woven or

bonded anyone.

b. During continuous weaving, yarn form the pile like Towel cloth Weaving.

Uttar Pradesh - Agra, Bhadohi(Varanasi), Shahjahanpur, Mirzapur and Dehradun are

most renown city but alone MIRZAPUR and BHADOHI are well prominent centre in

world market.

c. To secure the pile in straight position with the help of latex chemical and fabric

termed "secondary backing" to provide long life and stability to Pile life. Woolen

Carpets has monopoly in world market for their outstanding performance and quality

than that of Cotton Carpets, Acrylic Carpets, Synthetic Carpets, Silk Carpets, Jute

8


Carpets and Blended Carpets etc... Therefore in 1979 approximately, 47.00 million

kg. wool was consumed in Tufted Carpet sector

while approximately. 65 million kg. wool was consumed by rest woolen carpets

sector by eight main carpet oriented wool consuming country.

MAJOR CARPET PRODUCING CENTRES IN INDIA

Uttar Pradesh :

Varanasi, Bhadohi,

Gopiganj, Khamaria,

Ghosia, Madhosingh,

Mirzapur, Agra,

Shahjahanpur.

Jammu & Kashmir

:

Srinagar, Baramulla,

Anantnag, Jammu,

Leh.

Rajasthan :

Jaipur, Bikaner, Tonk.

Punjab: Amritsar.

9


Haryana: Panipat.

Madhya Pradesh: Gwalior.

Bihar :

Obra, Danapur, Madhubani

Himachal Pradesh: Dharmshala.

West Bengal :

Dargeeling.

Andhra Pradesh:

Elluru and Warangal

Karnataka:

Bangalore.

Pondicherry:

Pondicherry

Current Status

The textile industry holds significant status in the India. Textile industry provides one

of the most fundamental necessities of the people. It is an independent industry,

from the basic requirement of raw materials to the final products, with huge value-

addition at every stage of processing.

10


Today textile sector accounts for nearly 14% of the total industrial output. Indian

fabric is in demand with its ethnic, earthly colored and many textures. The textile

sector accounts about 30% in the total export. This conveys that it holds potential if

one is ready to innovate.

The textile industry is the largest industry in terms of employment economy,

expected to generate 12 million new jobs by 2010. It generates massive potential for

employment in the sectors from agricultural to industrial. Employment opportunities

are created when cotton is cultivated. It does not need any exclusive Government

support even at present to go further. Only thing needed is to give some directions to

organize people to get enough share of the profit to spearhead development.

1.2 Industry Profile

.

a) Origin and development of the industry

The Carpet industry in India has made substantial progress in the recent past.

Before something is said about the industry it would be interesting to know as to how

the industry was introduced in India. The art of carpet weaving was brought into the

Indian subcontinent by the great Moghul Emperor - Akbar in the middle of 16th

century and carpet weaving was confined to some important cities of Punjab and

later on in Kashmir and UP.

Nevertheless the main concentration of carpet weaving artisans was in city of

Amritsar. Hand knotted carpets a result of research and practice of hundreds of

years and it is basically this fact which makes it a prized item in the international

trade.

Having its origin in the nomadic life, it is as old as civilization itself. the nomads

handed it over to the civilization of settled population. The earliest evidence of and

knotted carpet was found by the Soviet archaeologist - Rudenko - in 1949 in the Altai

11


Mountains in Central Asia. The rug discovered belongs to the 5th century BC, having

360,000 knots per square meter (232 knots to a square inch).

During the reign of Moguls, some immigration of carpet weavers took place from

Persia to India and thus the Persian designs were mixed with the local styles to

produce some of the greatest carpets in history. The Mogul hunting carpets are

famous throughout the world. The Mogul kings had set up royal looms for carpet

weaving in Lahore, Agra and Delhi, some of the splendid products of which are still

preserved in museums.

Today oriental carpets are manufactured all over from Balkan to China and from

Caucasus to Indo-Pakistan sub-continent. The art of weaving has been known to

man since way back in iniquity and the earliest carpet can be traced back to five

centuries before the birth of Christ. It was the orient which specialized in the hand-

knotted rug For the nomad this was an essential convenience. In the carpet, he had

discovered the means for transmitting animal warmth to himself without having to

hunt a wild beast or kill one of his own flock. Carpets were made only in wool. The

use of cotton and silk were symbols of the later refinement of this art and its adoption

by a settled population. For the nomad, the carpet had many uses. It was the ideal

furnishing for a tent. He could sit, eat and sleep on it and also use it and also use it

to perform his worship on. He could also hang a carpet to decorate the walls of his

tent or use it as a saddle-bag. It is therefore not surprising that so much effort and

energy was spent in beautifying these rugs. The Safavi rulers of Iran are given the

credit for making carpets, one of the most sought after of Oriental luxuries.

Europeans had been enchanted by these pieces since they were first taken across

by traders. Carpets frequently found a place in European paintings. This fascination

for the carpet was natural. Their design and color schemes had their own

independent logic and their own unique magic. No two pieces were ever alike.

Carpets freed design from the limitations of space. Intricate patterns could be

repeated infinitely. And this infiniteness could be ordered into finite and intricate

symmetry. Abstract symbols could be woven into dense ornamentation. The

geometric could be combined with the figurative and the floral with the arabesque.

Motifs acquired their own, and often differing meanings. Endless experimentation led

to the perfection of natural dyes. Plants, flowers, vegetables, fruits and even insects

12


were a source of colour. Sour cream was used to tone down colours. The uses of

colour were a part of individual skills, the nature of various dyes often being a

jealousy guarded secret. The large scale production of carpets in India was begun in

the reign of Akbar ( 1556- 1605). Exquisite pieces were produced under the

patronage of the Mogul emperors. The Moguls were very impressed by and strongly

influenced by Persian aesthetic traditions. And as in every other art form that they

patronised, in carpet weaving too, the Indian craftsmen matched their Persian

contemporaries, knot for knot.A new style of carpets appearing around this time was

the pictorial ones. Carpets began to be treated as if they were canvas for painting.

This idea obviously appealed to the Moghuls with their obsessive love for

painting.Carpets appeared as if they were pages of miniature paintings - blown up

but losing none of their details or their impact. The carpet weaver successfully

mimicked the art of the painter. Knots of coloured wool or silk easily replaced the

strokes of brushes to produce monumental enlargements of miniature paintings,

whether the theme be a royal hunt or just a landscape. Today, the carpet industry of

India is one of the largest and most consistent supplier of carpets to the world. The

Mirzapur Bhadohi belt in Uttar Pradesh supports the largest hand-loomed carpet

industry of the world. Carpets continue to be hand made. The nature of the art

precludes the use of machines. There is no machine that can tie knots the way

human fingers can. Hand knotting gives the carpet its essential quality – its

uniqueness. The colour schemes can be the same. The design too can be similar,

knot by knot. Yet no two pieces can be ever alike. Each weaver leaves his own

indelible imprint - as individual as if it were his finger prints or his signature. The tools

that the weaver uses are simple and these have basically remained unchanged with

time. He uses a knife to cut the yarn after it has been knotted and a comb to beat in

the weft and pile tufts. He then uses a pair of scissors to smoothen out the pile level.

With these simple tools and a skill that he has inherited over many generations, the

Indian craftsmen have created the most splendorous of specimens. Skill in carpet

weaving lies in the tying of individual knots. Each knot is an entity and has to be co-

ordinated with hundreds of thousands of other knots to create a masterful design.

The fineness of the weave is reflected in the refinement of the curvilinear designs.

And the skill takes a generation to acquire. Children begin early to learn this craft. A

skilled craftsman can easily tie about ten thousand knots in a day. But we must

13


remember that even a moderate size carpet contains over a million knots, of various

colours, is like, as one admirer of the art has put it, "striking a million knots in such

succession and accord as to produce a sonata". Designs for carpets are conceived

in the mind of the designer and then put on paper so that they can be translated into

wool or silk. Designs are preserved in hieroglyphics to prevent theft or plagiarisation.

Designs, when committed to paper are worked down to the minutest of details - the

colour of each knot in every line of weave is predetermined. In Kashmir, the common

method of design translation (talim) is recitation. The master (Ustad) recites a pattern

that he has committed to memory. He remembers the colour shades of each knot

and while he recalls them, the weavers automatically translates his instructions into

notes. Legends speak of masters who had committed more than fifty such patterns

to memory which they could recall, reduce or blow up at will. A good carpet is

supple, springy and soft to the touch. Its colours are lustrous and its motifs are

delicate and detailed. Indian carpets are all of these and more. The continuity of

superb artistic traditions have made the Indian carpets the product of a living, thriving

art.

b) Growth and present status of the industry.

RECENT TRENDS

Hand-made carpets hold a significant position in the industry worldwide. India, with

a population that is supported by skills or inclination towards such art and craft has

a strong potential for growth. In recent years, the hand-made carpet sector in India

has shown a great progress in areas like capacities, competitiveness, and delivery

time. With proper infrastructural facilities, marketing, commercial support and

government support, this industry has tremendous chances of growth.

To make the process of weaving easier, many developments have taken place in

this sector. At the beginning, only natural dyes were used to obtain subtle and

attractive colours. Madder, a plant which is available almost everywhere, was the

most important colorant of vegetable origin. The roots of the plant provided shades

14


of red and pink; green was taken from the grass and brown from the kicker tree. All

these were extracted and then used as colours for rugs and carpets. Gradually,

with the advent of synthetic colours, chemical dyes were used in place of natural

dyes. These also offered a wide range of colours that the weavers deftly

incorporated in coloring of carpets. Like colorings, patterns crafting is also an

integral part in carpet weaving. The usual procedure followed by the weaver is to

draw his designs and transfer them to a graph paper on which each square

symbolizes a single knot. Then the paper is divided into several parts depending on

whether the pattern is intended for the medallion or center or for a part of a

repeated pattern. These sheets of paper are then passed on to the knotting

workshop. There was another method known as ‘Talim’ followed by the weavers of

Kashmir and Amritsar. A coded colour chart is used which shows the number of

knots to be woven in their respective colours. The master-weaver reads aloud the

chart and the weavers follow his directions carefully. The number of knots to be

woven is indicated by signs.

This was a time consuming procedure and was carried out with utmost care.

Today, designing has become an easier task with the availability of CAD/CAM

software's. Weavers have switched to computer-aided designs which enable them

to create designs in a short span of time. Earlier, it was not always possible for the

carpet weavers to make the perfect carpet or a rug which they had imagined or

were instructed. Now, with the help of computer designing, they can visualize the

carpet even before it is made.

For hand-made carpets, looms play a vital role. One of the most commonly used

loom in India is the roller-beam loom. The simplest of these looms is the one with

two horizontal wooden beams between which the wrapped threads are stretched.

One beam is in front of the weaver and the other behind the first. As the knotting

proceeds, the carpet is rolled to the back of the loom. The loom gives shape to the

carpet-weaver's creative expressions. However, today with advances in production

technology, machine-made carpets are becoming increasingly popular.

Besides this, proper trainings are imparted to both male and female weavers to

come up with new designs and better efficiency. Skill development of the weavers

has been a highlight. The government and various agencies, including carpet

manufacturers also have come up with many facilities for the overall growth of the

15


weavers like regular work, improved working conditions, incentives, health care and

most important of all prevention of child labor.

Products

Value of Exports

April- March

Value in Rupees Crores

April- March

Value in U.S. Dollar Million

2009-

10

2008-

09

Percentag

e increase

(+) /

decrease

(-)

2008-

09

2008-

09

Percentag

e increase

(+) /

decrease

(-)

Handmad

e Woolen

Carpets,

Rugs,

Drug

gets,

Durries

etc.

including

Cotton

Carpets

excluding

Handmad

e

Woolen

Tufted

Carpets

2076.5

7

1451.2

8 (-) 30.11%

515.9

0

321.5

0 (-) 37.68%

Handmad

e woolen

1156.7

0

983.22 (-) 15.00% 287.4

0

217.8

1

(-) 24.21%

16


tufted

carpets

Handmad

e Silk

Carpets 221.87 210.58 (-) 5.09% 55.12 46.65 (-) 15.37%

Handmad

e Staple/

Synthetic

Carpets 69.59 63.65 (-) 8.54% 17.29 14.10 (-) 18.45%

Total

3524.7

3

2708.7

3 (-) 23.15%

875.7

1

600.0

6 (-) 31.48%

Statement of estimated Exports for the month of April- March 2009-10 in

comparison with the April- March, 2008-09

Now In the above table we can see that the growth of the carpet industry

S.

No

. Country 2005-06 2006-07 2007-08 2008-09(Prov.)

Rupee

s

Crores

U.S. $

Millio

n

Rupee

s

Crores

U.S. $

Millio

n

Rupee

s

Crores

U.S. $

Millio

n

Rupee

s

Crores

U.S. $

Millio

n

1 Argentina 5.99 1.35 6.98 1.53 7.20 1.79 10.52 2.33

2 Australia 35.55 8.03 51.08 11.23 62.56 15.54 68.81 15.20

3 Austria 23.47 5.30 27.92 6.13 19.11 4.75 23.7 5.25

4 Belgium 27.50 6.21 33.80 7.43 58.02 14.41 11.56 2.56

5 Brazil 15.80 3.57 17.25 3.79 17.7 4.41 4.69 1.04

6 Canada 41.93 9.47 49.97 10.98 59.33 14.74 40.27 8.92

7 Denmark 21.90 4.95 26.09 5.73 28.36 7.05 18.82 4.17

8 Finland 15.96 3.61 18.74 4.12 16.27 4.04 14.67 3.25

17


9 France 47.93 10.83 56.96 12.52 56.78 14.11 48.84 10.82

10 Germany 585.35

132.2

7 698.22

153.5

2 646.71

160.6

7 613.24

135.8

5

11 Italy 38.25 8.64 45.56 10.01 105.94 26.32 25.5 5.65

12 Japan 54.79 12.38 65.04 14.30 59.83 14.86 48.75 10.80

13

Netherland

s 30.75 6.95 36.38 7.99 44.02 10.94 19.09 4.23

14 Norway 7.53 1.70 8.81 1.93 8.94 2.22 6.41 1.42

15 Sweden 24.37 5.51 29.03 6.38 46.41 11.53 18.28 4.05

16

Switzerlan

d 15.14 3.42 18.00 3.95 9.13 2.27 26.86 5.95

17 Spain 32.87 7.43 38.95 8.56 82.07 20.39 24.38 5.40

18 U.S.A.

1533.5

0

346.5

2

1833.0

2

403.0

4

1668.8

6

414.6

2

1359.2

9

301.1

2

19 U.K. 158.98 35.92 189.25 41.61 183.07 45.48 112.18 24.85

20 Others 364.50 82.36 423.81 93.19 344.42 85.57 212.87 47.20

Total

3082.0

6

696.4

4

3674.8

6

807.9

4

3524.7

3

875.7

1

2708.7

3

600.0

6

Country-wise export data from 2003-04 to 2008-09 (Prove)

The Carpet Export Promotion Council is organizing participation of member-exporters in

the following forthcoming Activities for 2010-11 under the Scheme of O/o. the

DC(Handicrafts), Ministry of Textiles, under the MDA Scheme of Ministry of Commerce as

per details given below alongwith participation charges, in anticipation of Government

grants, for each of the following activities. It is an unique opportunity to showcase your products

before the potential buyer in these exhibitions:

Sl.

No. Activity

Participation charges & other

details

1.

Qinghai Intl. Carpet Exhibition

in, Qinghai Intl. Carpet

Exhibition Centre (China) 20-

23 June 2010.

Rs.22,500/- for 18 sq.m.

Reimbursement of Air fare not

admissible under MDA Scheme

18


2.

Made in India Exhibition

during Decoration + Design

Show in Melbourne

(Australia) 15-18 July, 2010

Rs. 1,20,000/- for approx.12 sq.

mtr. Reimbursement of MDA

Grant will be admissible within

the ceiling of Rs. 1,50,000/-

subject to Government

approval.

3.

Made in India Exhibition

during House & Gift Fair in

Sao Paulo (Brazil) 14-17

August 2010.

Rs. 11,030/- per sq. mtr. for

approx. 12 sq. mtr.

Reimbursement of MDA Grant

will be admissible within the

ceiling of Rs. 1,80,000/- subject

to Government approval.

4.

Ministry of Textiles Scheme

of O/o.DC(H): B.S. Meet

during Textile Hogar in

Valencia (Spain) 28th Sept.

to 2nd Oct. 2010.

Participation charges under

finalization.

5.

3rd INDEXPO, Muscat 2010,

28-30 Sept., 2010 Muscat

(Oman)


finalization.

6.

B.S. Meet during Japantex

17-19 November 2010 in

Tokyo (Japan)


finalization.

7.

MDA Scheme of Ministry of

Commerce: Made in India

Exhibition in Capetown

(South Africa) 24-26

November 2010


finalization.

8.

Made in India Exhibition in

USA in January/February

2011


finalization.

19


9.

MAI Scheme of the Ministry

of Commerce: Domoex Intl.

Trade Fair in Hannover

(Germany) 15-18 January

2011


finalization.

10.

Ministry of Textiles Scheme

of O/o,DC(H): Thematic

Exhibition during Spring Fair

Intl. in Birmingham (U.K.) 6-

10 February 2011.


finalization.

11.

Thematic Exhibition during

Domotex Asia Chinafloor in

Shanghai (China) from 23-25

March 2011.


finalization.

Activities in India :

Sl.

No.

Activity Participation charges

1. India Carpet Expo in Varanasi from 29th

Oct. to 1st November 2010

Participation charges

under finalization

2. Carpet Exhibition in Srinagar (J&K) during

Sept.2010


under finalization

3.

Made in India Show of all Textiles based

EPCs in Pragati Maidan, New Delhi 2-5

February 2011


under finalization

4. India Carpet Expo in New Delhi Feb./March

2011


under finalization

20


SWOT ANALYSIS

Indian Carpet industry is a unique kind of industry. It’s highly unorganized with lack

of proper channels. Still, it has managed to show impressive performance in the

past. What is behind this industry which drives the exports? One can not forget that it

had significant share in Indian exports till early 1990s. SWOT analysis will bring forth

the value drivers and stumbling blocks in this industry.

Strengths

• Artistic skills: Over the period, major carpet centers have built huge

network of artistic weavers. The industry currently is employing millions of people

directly and indirectly. They are highly skilled in this areas

Costs : India has an advantage in terms of costs. The labor costs in India are

comparatively low. Also, total cost of producing a carpet is low compared to

countries like Turkey, Iran with out compromising on quality fronts heavily.

Innovations: Innovations is one of the major criteria for selling carpets. As carpets

are considered as luxury items and consumer trends re changing continuously,

innovation is a key for the success. The countries like China which produce low cost

carpets lack in innovations.

Flexibility: Indian carpet industry can manufacture all kinds of carpets. Other

countries have specialized in particular carpets. Also, the carpets of any size can be

manufactured in hand knotted categories. This is not possible in machine made

carpets. There are several kinds of manufacturers which can take small orders or big

orders. Hence, Indian industry can offer wide options to a customer for carpet

purchases.

Weaknesses

21


• Unorganized: Indian carpet industry is highly

unorganized. Therefore, a lot of activities are duplicated. Hence, it increases the cost

of production. Also, it increases the time of delivery of carpets.

• Marketing Channels: The carpet manufacturers lack the proper marketing

channels. They find it very difficult to access the customers is increase the market.

Therefore, they are heavily dependent upon the buying agents.

• Infrastructure: The infrastructure is very poor leading to higher time for production

and costs. Also, buyers find it difficult to visit places like Bhadohi for looking designs.

Most of the manufacturers do not have showrooms in the cities to showcase their

creations. There is only one institute which provides courses related to carpet

industry.

Professional Approach: Majority of players lack professional approach for doing the

business. They do not respect delivery time and quality issues. Therefore, buyers

like to deal only through buying agents to control them.

Internal Competition: Many players have entered the industry increasing the

competition. There is a tremendous competition among players on price front and

are willing to offer very low prices even though some one has already taken order.

• Intellectual Property Rights: Many players in the industry copy designs from each

others. There is a lack of respect for intellectual property rights. This demoralizes

players from designing innovative products which is an expensive process.

Opportunities

• Globally, Home furnishing market is moving towards Caret industry. Hence, this

movement offers a new market for Hand tufted Carpets which are comparatively

cheaper to hand-knotted carpets.

• Traditionally, the carpets were purchased by old people. The evolution of modern

design has attracted youth market as well. This segment can be further expanded.

22


After dealing with China for some time, many players think that India provide better

option and flexibility. This kind feeling can further be tapped

Carpets are generally considered to be expensive. With use of modern technology,

prices can further be reduced. Also, cutting middlemen will directly benefit the

consumers thereby increasing the demand.

Organized operations can enhance the image of Indian Carpet industry. The

companies like IKEA, Wal-Mart, etc can offer new and larger market to the

manufacturers provided this market is properly tapped.

• Designing skills of India are being acknowledged at global level mainly in garments.

Similar skill set can be developed in the Carpet Industry and used as a marketing

tool.

There is an opportunity for providing stocking and warehousing services to various

players.

Threats

• If not handled properly, current rebound in the industry may not be sustainable.

• Unhealthy competition in the industry kills each other.

• Indian Carpet industry has not completely got rid off of issues like Child labor.

Hence, risk of possible backlash on the industry is a going to be there for

considerable time in the future although some action is being taken on this front.

23


c. Future of the Industry

Low – End Carpets Low end carpets like hand-tufted carpets are currently driving

the growth of industry. These carpets have expanded the market as they are

cheaper and affordable for many consumer segments. These segments are going to

drive future growth for a considerable time.

Modern Designs As in the case of low end carpets, modern designs are expanding

the market. Modern design is attracting young consumers. Also, there are a

significant number of consumers who prefer modern designs compared to traditional

designs. These are prominent in countries like Germany, Scandinavia, etc.

24


New Markets Traditionally, carpets industry is dominated by buyers from USA &

Germany. However, new markets are emerging for carpets and they are growing fast.

These are basically developing countries or lesser developed countries like Spain, etc.

Growth in income level is the major driver for this.

Big Retailers Big retailers like Wal-Mart, Ikea can drive the growth in the carpet

industry. These players have huge network with a large customer base. Low-end

carpets can be a major product that can be targeted by these players.

Cost Management In Today’s competitive market, price has become an important

factor. Hence, better price can be offered through better costs management. Effective

costs management will always be a competitive advantage to any player. The trend is

common in every industry. Carpet industry is no exception. Better cost management

will reduce the price which can lead to increase in volume sales.

Business Process Up gradation As said earlier, the carpet industry is going through

a major change. Timely delivery, better price and high quality products can only help

carpet manufacturers for survival. Business Process Up gradation is the tool for

achieving this. All these factors will definitely improve the present market as well as

expand in to new markets. Otherwise, it’s going to be difficult for the carpet industry to

grow.

25


CHAPTER 2

PROFILE OF THE

ORGANIZATION

2.1 Origin of the organization

European Carpet Company has been established in 1976 founded by late HAJI

MOHD. FORUQUE ANSAARI and late ZAFRUDDIN ANSAARI. In 1984 company

has been registered from govt. authority having start export to Europe. in 1986

company has been registered from govt. authority having start export to USA also.

26


European Carpet Company manufactures carpet and export to European and US

countries companies manufacturing units are located at…..

a. BHADOHI

b. MIRZAPUR

c. SHAHJAHANPUR

d. MAHARAAJGANJ

Companies international showroom located at BHADOHI where several countries

importers come for the business purpose.

European carpet companies started their business with the capital of 5 lakh Rs. And

now the company’s annual turnover is more than 100 cr Rs.

2.2 Growth and Development of the organization

A European carpet company is growing in various sectors according to the global

demand. Company works for betterment of the carpet industry keeping the following

goals in mind:

■ Work towards eradicating social injustices

■ Increase the standard of living of the weavers

■ The promotion of new designs, as per the international demand, so as to bring

more work to the weavers thereby accelerating income and prosperity.

■ Working for the empowerment of women. Empowering women for us implies

influencing strongly not only on their economic life (income and earning potential)

but also their personal life (self-esteem and influence on family decisions). We give

them equal priority on wage levels, participation in decision-making and labor

standards

27


■ Uplifment of the weavers' community by creation of facilities which enhance the

efficiency of the weavers through carpet weaving which in turn lead to the

economic growth of the industry.

■ Enhancing the skill of the workers through training and exposure

■ Non involvement of middlemen, making the weavers free from exploitation and

under payment.

■ Promotion of the research for new technology to brings the Indian carpet weaving

industry closer to the international market.

■ Helping the weavers in becoming productive and contributing members of their

communities.

■ Providing prospects for the overall personality development as health, education,

including children's education etc

■ Welfare schemes through microfinance which help the artisans get motivated for

becoming financially sound and able to hold

assets like their own looms.

2.3 Present status of the organization

1. European carpet company started their business with the capital of 5 lakh

Rs. And now the company annual turnover is more than 100 cr Rs.

2. European carpet companies has started its 1976 as a local marketing

business company but currently company is exporting carpets in European

and US countries.

3. European carpet companies started exporting only PERSIAN CARPETS

but now company is exporting hand tufted carpet , handloom carpet, wool

carpet, and machine woven carpet.

28


4. European carpet companies has more than 200 employees.

Award and achievements:

Our strength lies in consolidating our customer’s imagination and thereby

customizing each process of product creation. We possess an exclusive range of

designs that are quintessentially characterized by authenticity and versatility.

Owing to its exquisite designs and socially appropriate business practices, the

Company has been honored with several prestigious accolades and awards for its

outstanding performance in the carpet industry. These include:

‘Sankalp 2010 : Social Enterprise Awards & Investment Forum’ by

Sankalp Forum (2010)

‘Corporate Social Responsibility Award ’ by FICCI (2010)

‘Indian Achievers Award For Business Excellence’ by Indian Achievers

forum (2010)

‘Award of Excellence - Floor Covering’ by HFN (2009)

‘American Graphic Design Award ’ by Graphics Design USA (2009)

'Best SME for CSR ' by Business Today & Yes Bank (2009)

‘Star Export House’ by Ministry of Commerce, Government of India (2009)

Certification:

9001:2008 Quality is a nerve center of our company without which we won't have

survived in this industry and we know the importance of it. We are an ISO

9001:2008 certified company and our strategies always revolve around quality.

The reason of our progressive growth is our range of quality products, which is

acceptable around the world. Our main area of thrust is quality, which is well

maintained and promoted by highly qualified and dedicated workforce. We have

gained ISO certification for providing high quality services.

We have been using stringent quality measures to check the quality of our

products. We have a quality management team to supervise the quality checkups

by the time of production and before shipment of the products. We always strive

29

http://www.jaipurrugsco.com/STAR_EXPORT_HOUSE.html

http://www.jaipurrugsco.com/awards-of-excellence.html

http://www.jaipurrugsco.com/Indian_Achievers_Award.html

http://www.jaipurrugsco.com/FICCI_certificate.html

http://www.jaipurrugsco.com/Sankalp%20Award%20(2010).html


to provide our clients quality products and get the maximum customer satisfaction

by providing world class customer service. Our worldwide clients have

appreciated the quality of our products.

We do everything it takes to ensure that the gear you buy has the level of quality

you expect. That's the main reason our products are legendary for quality and

durability. Quality is our most successful product. It is the key to our success,

today and tomorrow.

ISO 14001 is an internationally accepted standard that sets out how you can go

about putting in place an effective Environmental Management System (EMS).

The standard is designed to address the delicate balance between maintaining

profitability and reducing environmental impact; with the commitment of your

entire organization, it can enable you to achieve both objectives.

Furthermore, it assists you to ensure compliance with environmental legislation

and reduces the risk of penalties and possible litigation. Demonstrating

commitment to the environment can transform your corporate culture externally by

opening up new business opportunities with environmentally aware customers or

clients. Internally, it can improve employee ethics and the workplace. ISO

14001:2004 compliance can also provide your company with a better use of

energy and resources, and reduce cost.

2.4 FUNCTIONAL DEPARTMENTAION OF THE ORGANIZATION

30


Marketing and sales - will try and maximize the level of sales by carrying

out market research and promoting the goods or service through a

motivated sales team;

Human resources - ensures the business has the best staff for the job and

that they are able to work effectively in a safe environment;

Research and development - will help the business remain competitive by

developing new goods and services and updating the existing one.

Finance - will keep a record of all money coming in and going out of the

business. They have responsibility for securing finances for future

expansion and paying staff and suppliers;

Production – this is the department which needed to an every organization

for efficiently and effectively produces goods and with the help of better

and skilled employees and with the help of services.

31


2.5 ORGANIZATION STRUCTURE AND ORGANIZATIONAL CHART

2.6 Product and service Profile of the Organization Competitors:

There are lots of competitors of the organization in India and across the world.

They are exporting several verities of carpets and they are providing service also.

Along with the demand of varieties of the carpets, service is also needed by the

importers for making customers satisfactions.

Types of Products

Woven

32


The carpet is produced on a loom quite similar to woven cloth and is usually a cut

pile although looped pile carpets of woven construction are not unheard of.[3] Normally many colored yarns are used and this process is capable of producing

intricate patterns from pre-determined designs(although some limitations apply to

certain weaving methods with regard to accuracy of pattern within the carpet). These

carpets are usually the most expensive due to the relatively slow speed of the

manufacturing process.

Needlefelt

These carpets are more technologically advanced. Needle felts are produced by

electrostatic attraction of individual synthetic

fibres forming an extremely durable carpet.

These carpets are normally found in the

contract market such as hotels etc. where

there is a lot of traffic.

Knotted

On a knotted pile carpet (formally,

a supplementary weft cut-loop pile carpet), the structural weft threads alternate

with a supplementary weft that rises at right angles to the surface of the weave. This

supplementary weft is attached to the warp by one of three knot types (see below),

such as shag which was popular in the 1970s, to form the pile or nap of the carpet.

Knotting by hand is most prevalent in Oriental rugs and carpets. Kashmir carpets are

also hand-knotted.

Tufted

These are carpets that have their pile injected into a backing material, which is itself

then bonded to a secondary backing comprising a woven hessian weave or a man

made alternative to provide stability. This is the most common method of

manufacturing of domestic carpets for floor covering purposes in the world.

33


Others

A flatweave carpet is created by interlocking warp (vertical)

and weft (horizontal) threads. Types of oriental flatwoven

carpet include kilim, soumak, plain weave, and tapestry

weave. Types of European flatwoven carpets include

Venetian, Dutch, damask, list, haircloth, and ingrain (aka

double cloth, two-ply, triple cloth, or three-ply).

A hooked rug is a simple type of rug handmade by pulling

strips of cloth such as wool or cotton through the meshes of

a sturdy fabric such as burlap. This type of rug is now

generally made as a handicraft.

(Embroidery)

Armenian embroidery carpet, XVIII c., Echmiatsin, Treasury

Unlike woven carpets, embroidery carpets are not formed on a loom. Their pattern is

established by the application of stitches to a cloth (often linen) base. The tent stitch

and the cross stitch are two of the most common. Embroidered carpets were

traditionally made by royal and aristocratic women in the home, but there has been

some commercial manufacture since steel needles were introduced (earlier needles

were made of bone) and linen weaving improved in the 16th century. Mary

Stewart Queen of Scots is known to have been an avid embroiderer. 16th century

designs usually involve scrolling vines and regional flowers (for example,

the Bradford carpet). They often incorporate animal heraldry and the coat of arms of

the maker. Production continued through the 19th century. Victorian embroidered

carpet compositions include highly illusionistic, 3-dimensional flowers. Patterns for

tiled carpets made of a number of squares, called Berlin wool work, were introduced

in Germany in 1804, and became extremely popular in England in the 1830s.

Embroidered carpets can also include other features such as a pattern of shapes, or

they can even tell a story.

Production of knotted pile carpet

34

http://en.wikipedia.org/wiki/Berlin_wool_work

http://en.wikipedia.org/wiki/Coat_of_arms

http://en.wikipedia.org/wiki/Bradford_carpet

http://en.wikipedia.org/wiki/Mary_Stewart

http://en.wikipedia.org/wiki/Mary_Stewart

http://en.wikipedia.org/wiki/Linen

http://en.wikipedia.org/wiki/Cloth

http://en.wikipedia.org/wiki/Stitch

http://en.wikipedia.org/wiki/Embroidery


Both flat and pile carpets are woven on a loom. Both vertical and horizontal looms

have been used in the production of European and Oriental carpets in some colors.

The warp threads are set up on the frame of the loom before weaving begins. A

number of weavers may work together on the same carpet. A row of knots is

completed and cut. The knots are secured with (usually one to four) rows of weft.

There are several styles of knotting, but the two main types of knot are

the symmetrical (also called Turkish or Ghiordes) and asymmetrical (also called

Persian or Sienna).

Flag of Turkmenistan

Contemporary centers ofcarpet

roductionare: Kashmir, Iran (Tabriz), Afghanistan, Azerbaijan, India, Turkey, Norther

n Africa, Pakistan, Nepal, Spain, Turkmenistan, and Tibet.

The importance of carpets in the culture of Turkmenistan is such that the national

flag features a vertical red stripe near the hoist side, containing five carpet gulls

(designs used in producing rugs).

Kashmir (India) has World Famous Hand knotted carpets. These are usually of Silk

and some woolen carpets are also woven.

Child labor has often been used in Asia. The Rug mark labeling scheme used

throughout Europe and North America assures that child labor has not been used:

importers pay for the labels, and the revenue collected is used to monitor centers of

production and educate previously exploited children.[4]

Fibers and yarns used in carpet

The Pitcher and mug on the background of a carpet.

Carpet can be made from many single or

blended natural and synthetic fibers . Fibers are

chosen for durability, appearance, ease of

manufacture, and cost. In terms of scale of

35

http://en.wikipedia.org/wiki/Synthetic_fibre

http://en.wikipedia.org/wiki/Synthetic_fibre

http://en.wikipedia.org/wiki/Nature

http://en.wikipedia.org/wiki/Mug

http://en.wikipedia.org/wiki/North_America

http://en.wikipedia.org/wiki/Europe

http://en.wikipedia.org/wiki/Rugmark

http://en.wikipedia.org/wiki/Flag_of_Turkmenistan

http://en.wikipedia.org/wiki/Flag_of_Turkmenistan

http://en.wikipedia.org/wiki/Tibetan_rugs

http://en.wikipedia.org/wiki/Nepal

http://en.wikipedia.org/wiki/Pakistan

http://en.wikipedia.org/wiki/Northern_Africa

http://en.wikipedia.org/wiki/Northern_Africa

http://en.wikipedia.org/wiki/Turkey

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Azerbaijan

http://en.wikipedia.org/wiki/Afghanistan

http://en.wikipedia.org/wiki/Tabriz

http://en.wikipedia.org/wiki/Iran

http://en.wikipedia.org/wiki/Kashmir


production, the dominant yarn constructions are polyamides (nylons) and

polypropylene with an estimated 90% of the commercial market.[5]

Nylon

Nylon is the most common material for construction of carpets. Both nylon

6 and nylon 66 are used. Nylon can be dyed topically or dyed in a molten state

(solution dying). Nylon can be printed easily and has excellent wear characteristics.

In carpets Nylon tends to stain easily because it possesses dye sites on the fiber.

These dye sites need to be filled in order to give Nylon any type of stain resistance.

As nylon is petroleum-based it varies in price with the price of oil.

Polypropylene

Polypropylene is used to produce carpet yarns because it is inexpensive. It is difficult

to dye and does not wear as well as wool or nylon. Large looped Berber carpets

made from this fiber are usually only suited for light domestic use and tend to mat

down quickly. Berber carpets with smaller loops tend to be more resilient and retain

their new appearance longer than large looped Berber styles. Commercial grade

level-loop carpets have very small loops, and commercial grade cut-pile styles are

well constructed. When made with polypropylene (also called Olefin) these styles

wear very well, clean easily and are suitable for areas with heavy foot traffic such as

offices. Commercial grade carpets can be glued directly to the floor or installed over

a 1/4" thick, 8-pound density padding. Outdoor grass carpets are usually made from

polypropylene.

Wool and wool-blends

Wool has excellent durability, can be dyed easily and is fairly abundant. When

blended with synthetic fibers such as nylon the durability of wool is increased.

Blended wool yarns are extensively used in production of modern carpet, with the

most common blend being 80% wool to 20% synthetic fiber, giving rise to the term

"80/20". Wool is relatively expensive and consequently a small portion of the market.

Polyester

36

http://en.wikipedia.org/wiki/Wool

http://en.wikipedia.org/wiki/Polypropylene

http://en.wikipedia.org/wiki/Nylon_66




The polyester known as "PET" (Polyethylene Terephthalate ) is used in carpet

manufacturing in both spun and filament constructions. After the price of raw

materials for many types of carpet rose in the early 2000s, polyester became more

competitive. Polyester has good physical properties and is inherently stain-resistant

because it is hydrophobic, and, unlike nylon, does not have dye sites. Color is

infused in a molten state (solution dyeing). Polyester has the disadvantage that it

tends to crush or mat down easily. It is typically used in mid- to low-priced carpeting.

Another polyester, "PTT" (Polytrimethylene terephthalate ) , also called Sorona or

3GT (DuPont)or NorTerra (Shell), is a variant of PET. Lurgi Zimmer PTT was first

patented in 1941, but it was not produced until the 1990s, when Shell Chemicals

developed the low-cost method of producing high-quality 1,3 propanediol (PDO), the

starting raw material for PTT NorTerra Polymers. PTT is similar to polyester, but its

molecules have a "kink", similar to a spring, that makes the fiber more crush

resistant, resilient, and easy to clean. PTT also does not have dye sites, and is

inherently stain resistant because color is infused in a molten state. Carpets made

with PTT dry quickly and are resistant to mold.

The binding in woven carpet is usually cotton and the weft is jute.

Carpet binding

Carpet binding is a term used for any material being applied to the edge of a carpet

to make a rug. Carpet binding is usually cotton or nylon, but also comes in many

other materials, such as leather. Natural binding, in other words, binding not made

from synthetic material is frequently used with bamboo, grass, and wool rugs, but is

often used with carpet made from other materials.

Early carpets

The Pazyryk Carpet, among the oldest surviving carpets in the world

The hand-knotted pile carpets probably originated in southern Central Asia between

the 3rd and 2nd millennium BCE, although there is evidence of goats and sheep

37

http://en.wikipedia.org/wiki/Central_Asia

http://en.wikipedia.org/wiki/Polytrimethylene_terephthalate

http://en.wikipedia.org/wiki/Polytrimethylene_terephthalate

http://en.wikipedia.org/wiki/Polyethylene_terephthalate

http://en.wikipedia.org/wiki/Polyethylene_terephthalate


being sheared for wool and hair which was spun and woven as far back at 6000BC.

[1]

The earliest surviving pile carpet in the world is called the "Pazyryk Carpet", dating

from the 5th-4th century BCE. It was excavated by Sergei Ivanovich Rudenko in

1949 from a Pazyryk burial mound where it had been preserved in ice in the valley of

Pazyryk. The origin of this carpet is attributed to either the Scythians or

the Persian Achaemenids. This richly colored carpet is 200 x 183 cm (6'6" x 6'0")

and framed by a border of griffins.[7]

The earliest group of surviving knotted pile carpets was produced under Seljuk rule

in the first half of the 13th century on the Anatolian peninsula. The eighteen extant

works are often referred to as the Konya Carpets. The central field of these large

carpets is a repeated geometrical pattern. The borders are ornamented with a large-

scale, stylized, angular calligraphy called Kufic, pseudo-Kufic, or Kufesque.[8]

Chinese Carpets

As opposed to most antique rug manufactory practices, Chinese carpets were woven

almost exclusively for internal consumption. China has a long history of exporting

traditional goods; however, it was not until the first half of the 19th century that the

Chinese began to export their rugs. Once in contact with western influences, there

was a large change in production: Chinese manufactories began to produce art-

deco rugs with commercial look and price point.

The centuries old Chinese textile industry is rich in history. While most antique

carpets are classified according to a specific region or manufactory, scholars

attribute the age of any specific Chinese rug to the ruling emperor of the time. The

earliest surviving examples of the craft were produced during the time of Ch'ung

Chen, the last emperor of the Chen Dynasty, which ended when he died in the early

17th century. The Ming Dynasty, the last before the creation of the Chinese

Republic, succeeded the Chen dynasty.

Persian and Anatolian carpets

38

http://en.wikipedia.org/wiki/Chinese_Republic

http://en.wikipedia.org/wiki/Chinese_Republic

http://en.wikipedia.org/wiki/Ming_Dynasty

http://en.wikipedia.org/wiki/Chen_Dynasty

http://en.wikipedia.org/w/index.php?title=Ch'ung_Chen&action=edit&redlink=1



http://en.wikipedia.org/wiki/Commercial

http://en.wikipedia.org/wiki/Art-deco

http://en.wikipedia.org/wiki/Art-deco

http://en.wikipedia.org/wiki/Kufic

http://en.wikipedia.org/wiki/Anatolia

http://en.wikipedia.org/wiki/Seljuk_Turks

http://en.wikipedia.org/wiki/Achaemenid

http://en.wikipedia.org/wiki/Persian_people

http://en.wikipedia.org/wiki/Scythians

http://en.wikipedia.org/wiki/Pazyryk_burials

http://en.wikipedia.org/wiki/Pazyryk_burials

http://en.wikipedia.org/wiki/Sergei_Ivanovich_Rudenko



http://en.wikipedia.org/wiki/BCE

http://www.intercarpets.co.uk/history/timeline.html


The Persian carpet is a part of Persian (Iranian) art and culture. Carpet-weaving in

Persia dates back to the Bronze Age.

The earliest surviving corpus of Persian carpets comes from the Safavid dynasty

(1501–1736) in the 16th century. However, painted depictions prove a longer history

of production. There is much variety among classical Persian carpets of the 16th and

17th century. Common motifs include scrolling vine

networks, arabesques, palmettos, cloud bands, medallions, and overlapping

geometric compartments rather than animals and humans. This is because Islam,

the dominant religion in that part of the world, forbids their depiction. Still, some show

figures engaged either in the hunt or feasting scenes. The majority of these carpets

are wool, but several silk examples produced in Kashan survive.

Iranian carpets are the finest in the world and their designs are copied by weavers

from other countries as well. Iran is also the world's largest producer and exporter of

handmade carpets, producing three quarters of the world's total output and having a

share of 30% of world's export markets. Iran is also the maker of the largest

handmade carpet in history, measuring 60,546 square feet.

Turkish carpets

Carpets, whether knotted or flats woven (kalin) are among the best known art forms

produced by the Turks. They have protected themselves from the extremes of the

cold weather by covering the floors, and sometimes walls and doorways, with

carpets. These are handmade, of wool or sometimes cotton, with occasional

additions of silk. Even technological advances which enable factory-made carpets

has not stopped the production of rug weaving at cottage-industry level. Although

synthetic dyes have been in use for the last 150 years, hands made carpets are still

considered far superior to industrial carpeting.

Turkish carpets in the 15th and 16th centuries are best known through European

paintings. For example, in the works of Lotto (15th century Italian painter) and

Holbein (16th century German painter), Turkish carpets are seen under the feet of

the Virgin Mary, or in secular paintings, on tables. In the 17th century, when the

39

http://en.wikipedia.org/wiki/Kashan

http://en.wikipedia.org/wiki/Silk

http://en.wikipedia.org/wiki/Wool

http://en.wikipedia.org/wiki/Islam

http://en.wikipedia.org/w/index.php?title=Cloud_band&action=edit&redlink=1

http://en.wikipedia.org/wiki/Palmette

http://en.wikipedia.org/wiki/Arabesque

http://en.wikipedia.org/wiki/Safavid

http://en.wikipedia.org/wiki/Bronze_Age

http://en.wikipedia.org/wiki/Weaving

http://en.wikipedia.org/wiki/Iran


Netherlands became a powerful mercantile country, Turkish carpets graced many

Dutch homes. The Dutch painter Vermeer represented Turkish carpets

predominantly to indicate the high economic and social status of the persons in his

paintings. Turkey carpets, as they were known, were too valuable to be put on floors,

except under the feet of the Holy Mother and royalty.

The Turkish carpets have exuberant colors, motifs, and patterns. Because

traditionally women have woven the carpets, this is one art form that is rarely

appreciated as being the work of a known or a specific artist.[17]

Pakistani carpets

The art of weaving developed in the

region comprising Pakistan at a time

when few other civilizations employed

it. Excavations at Moenjodaro and

Harappa - ancient cities of the Indus

Valley civilization - have established

that the inhabitants used spindles and spun a wide variety of weaving materials.

Some historians consider that the Indus Valley civilization first developed the use of

woven textiles.

Carpet weaving may have been introduced into the area of present-day Pakistan as

far back as the eleventh century with the coming of the first Muslim conquerors, the

Ghaznavids and the Ghauris, from the West. It can with more certainty be traced to

the beginning of the Mughal Dynasty in the early sixteenth century, when the last

successor of Timur, Babar, extended his rule from Kabul to India to found the

Mughal Empire. Under the patronage of the Mughals, Indian craftsmen adopted

Persian techniques and designs. Carpets woven in the Punjab at that time (often

called Lahore carpets today) made use of motifs and decorative styles found in

Mughal architecture.

During the Mughal period, the carpets made on the Indian subcontinent became so

famous that demand for them spread abroad. These carpets had distinctive designs

and boasted a high density of knots. Carpets made for the Mughal emperors,

40


including Jahangir and Shah Jahan, were of the finest quality. Under Shah Jahan's

reign, Mughal carpet weaving took on a new aesthetic and entered its classical

phase.

2.7 Profile of the organization

The market segment of the organization=

European Carpet Company has good

market segment. It covers European and U.S. countries.

Product Line =

Company has increased the product line. At Starting time of the

organization they have started exporting only PERSSIAN carpet but now company is

exporting hand knotted carpet, hand tufted carpet, wool carpet etc.

TECHNOLOGY=

EUROPEAN CARPET COMPANY is using new kind of technology for delivery of

current needs of the customers. New technologies are in coloring of carpet, weaving,

marketing etc.

MEARKET SHARE OF THE ORGANIZATION=

EUROPEAN CARPET COMPANY has started it’s business with the capital of 5

lakhs, now annual budget of the organization is approximately 100 crore.

The market share of the organization is increasing consistently.

41


CHAPTER 3:

DISCUSSION ON TRAINING

42


3.1 student’s work profile (roles and responsibilities):

1) Find out buyer’s information:(a) Web site address

(b)Bank record (c)Position in the market

2) Sent the quotation to the buyers and solve the queries of the buyers 3) sent the buyers suggestion to the immediate manager.4) Keep contact with the customers

Initially, the student will be trained for a period of one week, where

(a) a brief introduction to the company ,

(b) details regarding the product and services offered

(c) the work culture, and the

(d) nature of the job etc will be explained

After the successful completion of the training at the company, the students

(trainees) will be asked to start with their field work.

After the trainee has gained sufficient knowledge about the products and the ways to handle a client

Description of live experience:

I am keen to work in carpet Industry and amazed by the knowledge, experience,

incentives could be draw from the industry. The Brand name , Customer Loyalty and

satisfaction and the work environment made me choose to undergo my industry

training in carpet Industry.

43


First I started with my training program which was for 10 days at company

premises. It was a great learning experience. The company knows person engaged

me in various activities that enhanced my knowledge about the carpet Industry.

Soon product training followed I was first introduce to the company and then

was explained the details of the companies various product. At the end of the

session I gave a test of my product knowledge and about the industry. After that our

training ended.

Learning:-

Always be enthusiastic and practice smiling..

Be a pulley person rather a push.

Talk to people, ask the right question and be interesting.

Believe in metamorphism.

Student’s Contribution to the Organization:

The contribution done by a student can be explained in the following ways:

Sourcing of new clients, thus increasing the sales..

Creating the awareness about the company and its products and services.

Bringing back the much needed information about the clients’ needs and

expectations to the company, so that the company can carefully design its

products and services from time to time.

By performing the acts like,

(a) informing the clients about the products.

(b) solving their post-sale queries, if any; would not only increase the

company’s goodwill, but also the client satisfaction level and the brand image of the

company in the market.

44


CHAPTER 4STUDY OF SELECTED

RESEARCH PROBLEM

45


4.1 Statement of the Research Problem

INTRODUCTION

A Research Design is the framework or plan for a study which is used as a guide in

collecting and analyzing the data collected. It is the blue print that is followed in completing

the study. The basic objective of research cannot be attained without a proper research

design. It specifies the methods and procedures for acquiring the information needed to

conduct the research effectively. It is the overall operational pattern of the project that

stipulates what information needs to be collected, from which sources and by what methods.

TITLE OF THE STUDY

“An Analytical study of the European carpet company”.

STATEMENT OF THE PROBLEM

This study was undertaken to identify the problems of the

European carpet company and find the way to overcome. . A survey

was undertaken to understand problem of the organization and suggest the appropriate

suggestion for the improvement of the export performance of the organization.

4.2 Statement of Research Objective

To find out the export benefits of the company.

To find out the export problems of the company.

To find out that organization is utilizing the offered government policies or not.

4.3 Research design and methodology

46


Type of data collected

There are two types of data used. They are primary and secondary data. Primary data is

defined as data that is collected from original sources for a specific purpose. Secondary data

is data collected from indirect sources. (Source: carpet council of india)

Primary sources

These include the survey or questionnaire method, telephonic interview as well as the

personal interview methods of data collection.

Secondary sources

These include books, the internet, company brochures, product brochures, the company

website, competitor’s websites etc, newspaper articles etc.

Plan of analysis

Tables were used for the analysis of the collected data. The data is also neatly presented

with the help of statistical tools such as graphs and pie charts. Percentages and averages

have also been used to represent data clearly and effectively.

Study area

The study area is “European carpet company” located at BHADOHI. .

47


Question:- 1. Is your company exporting products other than Carpet?

Ans:- NO

Analysis:- European carpet companie is only concentrating on the Carpet exporting business.

So, It is specialized in exporting carpets and organization will be insured under the” CARPET COUNCIL

OF INDIA “for the export.

Question:- 2. How long have you been exporting (in years)?

Ans:- 26 Years…….

Analysis:- European carpet companies has very long time experience for exporting. As the result it

has good market in Europe and U.S. it has very loyal customer in the same. And loyal customers give

the good business. Company has good opportunity to gain revenue as well as new market. It has

good market position, stability, and brand image, among carpet industry’s major player.

Question:- 3. Total exports last year (in Rs)----

Ans:- 100 crore

Analysis:- European carpet company has started its business with the capital of 5 lacks Rs.Now the

organization’s last year exporting budget is showing how organization is performing the business

effectively and efficiently. We can assume that organization is enjoying the maturity stage.

Question:- 4. Are you (a) Manufacturer (b) Exporter (c) Both

Ans:- Both

Analysis:- European carpet company is a manufacturer as well as exporter so that he can give good

products and services to his client at reasonable rate. Therefore organization is able to do

the business from past 26 years. Having a manufacture unit organization can deliver the

much needed commodity to the customers.

Question:- 5. Which carpet products you are mainly exporting in the European market and U.S.

Market (Kindly rank them in descending order- 1 for highest value)

Hand tufted Carpet 3 Loop pile carpet X Cut pile carpet X

Cut and pile carpet 5 Cut and loop carpet X Handloom carpet 2

Machine woven carpet X Flat woven carpet X Berber carpet X

48


Broadloom carpet X Outdoor Carpet X Wool carpet 4

Sisal carpet X Persian Carpet 1

Analysis:- On the basis of given data we can find out that European carpet company has good

product line.Persian carpet is the core product for the organization.

Question:- 6. Have you started exporting any new carpet products in last 2 years? If yes,

which products?

Ans:- YES, Wool Carpet

Analysis:- European carpet company got high demand of woolen carpets. Why? Because in that

place wool are easily available into the market and at low cost company give to that good look

and better quality, design to carpets which giving the higher demand.

Question:- 7. Have you stopped exporting your carpet products in any European market and U.S.

market?

Products Countries

Reasons for stopping exports (Please tick whichever applies)

Low

Demand

Erratic

Demand

Competition Fluctuating

Exchange

Rates

Others

(Please

Specify)

49


Hand tuffted

Carpet

Loop pile carpet canada

Cut pile carpet switzerland

Cut and pile

carpet

Cut and loop

carpet

Handloom carpet

Machine woven

carpet

Flat woven carpet

Berber carpet

Broadloom carpet

Outdoor Carpet

Wool carpet

Sisal carpet

Persian Carpet

Analysis:- European carpet company as stopped exporting loop pile Capet to Canada because of low

demand. Dynamic change in the nature of customers, recessions the demand of loop pile carpet has

come down because the prize of loop pile carpet is more than the Persian, handmade etc. carpet.

Organization has stopped exporting cut pile carpet to Switzerland because of low demand and

competition. Wool Carpet is more demanded by the customers because of climate in Switzerland.

8. Are you planning to start export of carpet products to some European and U.S. countries

where you have not been engaged so far?

REASONS (Please tick whichever applies)

50


Products Countries Increasing

Demand

Profitability Less

Competition

Others

Hand tuffted

carpet

Los vegas

Loop Pile Carpet

Cut Pile Carpet

Machine woven

Carpet

Berber Carpet

Broadloom

Carpet

Handloom Carpet

Outdoor Carpet

Wool Carpet

Sisal Carpet

Cut and Loop Pile

Carpet

Flat woven Carpet

Persian Carpet France

Analysis:- European carpet company has expanded its market. Now the company is exporting hand

tufted carpet to LOS VEGAS and PERSIAN carpet to FRANCE. The reasons behind expanding the

market in both countries are same because improvement in per capita income and standard of

living demand has increased in both countries. Both countries have good buying capacity and

economy so there must be profit.

Question:- 9. Which countries are major competitors in the export of Indian carpet products?

(Kindly write the top to down)

Ans:- (a) Pakistan

(b) Afghanistan

(c) China

51


(d) Egypt

(e) Nepal

Analysis:- These above countries are having very much small scale industries in which mostly hand

crafted things are being made. Mostly they are producing high quality products and at their costs

are low than the Indian carpets.

Question:- 10. What are the reasons for declining demand of following products in the

European and U.S. market? (Please tick whichever applies)

Handloom-

Carpet

Persian

Carpet

Machine

Woven

Carpet

Wool

Carpet

Hand Tufted

Carpet

Lack of market demand

Competition

Low export prices

Heavy duties

Lack of Trade contacts

Payment problems

Higher shipping costs

Non-tariff barriers

Lengthy export

procedures

52


Restrictive import

regulations

Inadequate shipping

services

Others (Specify)

53

Analysis:- Lengthy export procedure, restrictive import regulations, inadequate shipping services, are

the some reasons for preventing the export.

Question:- 13. Government has implemented various schemes; please share your experience about

those schemes [1 for yes, 2 for no, don’t Know/ Cannot Say = -9]

Name of Scheme Are you aware

of this scheme

Have you

utilized this

scheme

Has it helped

improve export

performance

External Market Development Assistance Scheme 1 2 2

Rejuvenation, Modernization and Technology Up

gradation of the Carpet Industry

1 1 1

Credit insures policey 1 1 1

Export incentives 1 1 1

Draw back policy 1 1 1

Krupanidhi Institute of Management education, Bangalore

Analysis:- European carpet company has information about available all the important schemes offered

by the govt. for making export more friendly and profitable.

Question:- 14. Who are major buyers of carpet products in Europe and U.S.

Multiple response possible, Kindly rank them; 4 for most important, 3 for important, 2 for average

importance, 1 for less important, 5 for least important and 0 if not applicable.

Ans:- Major buyers of carpet products in Europe and U.S.

Buyers Rank

Importing firms 4

Individual firms 2

Individual buyers 2

Retail chains 3


Analysis:- Importing firms are the major buyer of the carpets in both Europe and U.S..so organization is

concentrating mainly on the prime customers. The most important feature of importing firms are that

they gives order in bulk. Payment is also not a big risk for the organization because organization will

concern with one party regarding payment.

After that retail chain buyers are the secondary they also give order into bulk because they cover the

huge geographical market area in the particular country.

Individual firms and individual buyers are the same in the nature.

Question:- 15. Do you advertise your carpet product in European and U.S. market?

Ans:- NO

Analysis:-European Carpet Company don’t use advertisement because buyer don’t allow to show the

models into the market directly.


Question:- 16. If yes, please rank means of advertising [1 for most important, 2 for important, 3 for

average importance, 4 for less important, 5 for least important 0 if not applicable]

Newspaper 0 Internet 0

Television 0 Sponsoring events 0

Other (please specify

Question:- 17. Do you have a website?

Ans:- YES

Question:- 18. Do you use internet for business?

Ans:- YES

Analysis:- European carpet company use internet for business. Company usually gets the order by the

internet. Organization is using internet because world is changing rapidly and very fast.

Question:- 19. Your past experience in the export markets : [Yes = 1, No = 2, Don’t Know = -9]

Code

Bad Experience 2

Friction with authority 2

Rejection of Consignment 1

Rejected in one country but Accepted in another (if a bloc) 1


Your consignment got rejected but the same from other country with similar specification

accepted 1

Any Other (Specify_______________________________________________)

Analysis:- Experience of the european carpet company is good.organization is achivieng the targeted

goals in fixed time and still growing.

Some time products are rejected by the one country because of some reason(sudden lack of

demand,design,etc) but it can be accepted by the another country.

Question:- 20. Please specify areas in which you would require assistance to

improve export performance. (rank 1 = most important, 5=least important)

Rank

Market information 1

Product improvement / adaptation 5

Market studies 1

Product design 1

Export incentives 1

Quality control 1

Export finance 1

Trade contacts 1

Procurement of raw materials 5

Marketing missions 1

Packaging 5

Export management training 1

Other (Please specify)


Analysis:- For the sales point of view market information or knowledge is very much important because

on the basis of the information organization can set the target market, target customers market

study is required.

Product positioning is also very much determined by the market knowledge. It points out that where

product is existing in the market, where it should move and where organization should make the

strategy for the market penetration.

Product design is also very important because need of the customer is changing rapidly and every

organization wants to deliver the need of the current need of the customersIt also helps in making

the brand into the market because of it’s unique product.

.


Question:- 21. What kind of logistical support / assistance would you want to have from the

Government of India, state government, carpet board to help you in export enhancement?

Problems Expectations

Non imposing of economics zone Government should impose SEZ policy.

Higher interest of income tax Government should give relieve in income tax rate.

Drawback facilities Govrnment should increase drawback rate with 15% .

Analysis:- This is the common expectations for every organization in the industry.Government has

announced the economic zone but it has not imposed till the day .

Organizations have the expectation regarding income tax rate.

Organization has the expectation in increment into the drawback policy of the government.

Question:- 22. What all are the exporting problems you face?

1): Insurance = A long procedure for claiming the insured amount.

Not full claim of the losses.

2): Payments = In payments a lot of risks are there like commercial risks, political risks, transit risks etc.

3): Transport = in transportation some problems are there like

4): Government Policies.

Analysis:- These are the problems which are faced by the European carpet company.

Question:- 23.Do you know about ECGC?

Ans:- YES


Analysis:- EXPORT CREDIT GUARANTEE CORPORATION.Europian carpet company aware about the ECGC

and using the benefits.

Question:- 24.what are the benefits of the ECGC?

Ans:-

Question:- 25. What are the problems of ECGC? Assign the number for the problems (most important =

3, important =2, least important =1)

Ans:-

Problems Number

a) Percentage of coverage. 1

b) Waiting period of claim. 2

c) Resale of unaccepted goods policies. 1

d) High premium rate. 2

e) Exchange rate fluctuation. 3

f) Commercial dispute policy. 1

g) Risks coverage policy 3

Above problems are shown into the graph as under:


Analysis:- Percentage of coverage, Waiting period of claim, Resale of unaccepted goods policies,

High premium rate, Exchange rate fluctuation ,Commercial dispute policy, Risks coverage policy,

these are the problems which organization is facing.

Question:- 26.Do you agree that given reasons are also effecting the export performances of the

organization? Assign the number for the factors (most important = 3, important =2, least important =1)

Factors Number

Quality culture 3

Information technology 2

Human resource 3

Facility center 1

Market intelligence 2


Raw material 2

Analysis:- Quality control, information technology,hrm,facilty center, market intelligence, raw material

are the some factors that effect the organizational export performance.

4.5 Summary of findings

From the survey we find that a European carpet company is exporting Persian, handmade, hand tufted etc. carpet since 26 years in Europe and U.S...

The company is trading in euro and U.S. dollar.

European Carpet Company is performing both business activities manufacturing and exporting. They are delivering the current needs of the customers.

We can find that organization has started exporting some product into the new market because of new positive opportunities and stopped some product to the particular market due to some unfavorable reasons.

Organization is aware about all the major schemes which is offered by the govt. and carpet export council of the India but in matter of some schemes they are not utilizing the schemes up-to the mark.


Organization is exporting the products mainly to importing firm’s retail chains as well as individual firms. Organization is concentrating more importing firms because of the payment. Organization gets bulk order from the importing firms and get the payments from one party it self.

Organization is not advertising the products directly into the market. they send their designs to the council and after the approval they get the from buyer directly because of the maintain the secret of design they don’t advertise.

Organization has own website and they are using internet facility for the business.

Overall past experience of the organization is satisfactory.

Organization has emphasized the market studies, export incentives, trade contact, quality control, etc. for the improvement in the export performance of the organization.

A part from these organizations has some problems and organization wants some assistance from the govt. for the better improvement of the organization.

Along with the benefits which organization is getting by the govt. bank ECGC organization has some problem regarding payments, insurance, transports, and several risks etc.

Organization has some factors that affect the export performance of the organization, e.g. Quality Control, Raw material etc.

If organization will get some reduction in the problem side definitely organization will do better and also enhance small scale companies.


CHAPTER 5

SUMMARY CONCLUSIONS

5.1 summary of learning experience:


Apart from theoretical knowledge I got the practical knowledge about the export

activities.

It also helped me to understand that exporting strategies differ from product to

product.

It is very important to maintain the proper service otherwise the chances of loose

the customers will be high.

I also learnt that communication skills are very necessary for convincing the

customers.

We should follow the code of conduct, riles & regulation and ethical behavior.

I also learnt that the business and market condition are not always favorable for a

product but it is the strategies that are adopted by the company make them excel

in the unfavorable condition.

I also come to know about the various policies and schemes of the govt. for

export promotion.

I also come to know about the procedures and documents of the export

promotion.

I also come to know about the problems which are faced by the organizations in

export.

I also come to know about the various steps of promotion that are adopted

different by the company under different situations.

5.2 Conclusion and recommendation


Export is one of the major businesses for the organization and country. It make the balance of payment of the country. There are lot of problems which wants some attention and action that can decrees the problem and enhance the export performance of any organization and along with this it can increase the foreign trade and currency that can make the balance in balance of payment balance of trade.

In export procedure there are lot of document and procedure are their, if there is any single mistake, then their will be problem for the organization so, export council make some arrangement which can reduce the problem of the organization.

e.g. if some mistakes like customers declaration , registration, etc. will be happen by the both exporters and importers than their will be the problem.

At the time of entering into the new Market some problems are their so embassy should help in this context providing all the assistance. Some time they provide they should update the database of current importers information of that particular country.

There problems in insurance recovery:-

a) Long documentation procedures (invoice, packing list, firm registration, party address etc.)

b) Not fall payment of the claim, some time 10-15% cost deduct from the claim value.

c) Organization should use the warehouse insurance because something misshapen will occur then their will be no risk.

d) Insurance company should take little span of time in the payment of the claim.e) Insurance company should increase the grace period of the commodity.f) Insurance company should decrease the premium on warehouse insurance plan.g) These are the several methods of the payments which depends upon the terms

and conditions.

There are several schemes of payments:a) Payment against FOB value.b) Document against payment.c) Document against sight.d) Document against LC.


Organization should use LC against bank guarantee payment scheme for the affective payment.

Quality culture:

Organization should make brand image. Organization should assured quality through testing and inspection of raw

materials, process and final products. Organization should remove the identified weakness and exploitation of

identified opportunities and removal anticipated threats. Diversification of product range.

Market intelligence:

Organization should create dynamic database of the customers. Organization should keep the information of the important raw

materials.

H.R.:

Organization should recruit qualified workers. To cover the entire work force of the organization, short term and training is

required. Govt. should cover the entire sector’s labor force through knowledge

integration programmers under taken by the local, regional and international level seminars and workshops.

Technology :

Organization should adopt the contact review system through modern technology.

Organization should adopt product upgrading benchmarks. Organization should new pile technology. Organization should adopt modern dyeing equipment for cost effective

and saving time. Organization should adopt modern carpet washing, drying and finishing

system.


Process re-engineering:

Organization should use process re engineering for cost control, productivity enhancement, echo friendly and socially accountable method for production.

National design bank:

Govt. should create the national design bank where in all individuals designers can become members and new design will be developed and it will enhance the carpet Indian image in the world.

There are two govt. policies:

Drawback policy: govt. provides 11% on above1000 sq yard and if its below

than this govt. 6-7 % of export duty to the firm.

For enhancing the export in the country govt. should increase the export duty

rate from 11-15% than SSI will become more competitive.

Import license policy: under the VIKAS KRISHI YOJNA govt. provides 5% import license.Govt. should increase the import duty 5-7%.

Organization should use the existing policy and import the raw materials for making good products.

Transportation:

There is lack of transportation e.g.( there is no rail transportation for the goods from BHADOHI/ MIRZAPUR for shipments. All transported by trucks which are costlier and tax 4-5 days to reach. The wagons should be attached with the passenger trains swift movements daily 4/5 wagons are required for this purpose so govt. should arrange the proper transportation channel.

Organization should insure all the documentation of shipment and cargo deliver the product from warehouse.

Govt. has declared free economic zone but it has not imposed till the day so govt. should impose the free carpet industry.

Govt. should provide free duty for raw material. Govt. should provide 50% tax in relaxation. Govt. should provide global interest rate up-to 365 days period both on post and

pre- shipment.


Exemption from VAT and SALES TAX on the item is all most 100% exported out of country.

Govt. should procure Flexible labor laws: Govt. should open new weaving training centers. Govt. should start some welfare schemes for carpet industries.

Organization should have good infrastructure. Organization should have primary focus on customer needs and satisfaction

which are helpful for the business success Organization should use the ECGC benefits.

RECOMMENDATION FOR ECGC:

Make the policies simple in the terms. Premium is to high as compare to another insurance provider. So decrease the

premium amount. ECGC should insure new export firm. Percentage of recovery should improve. Waiting period should claim for decrease. Deduction in loss due to Re-sale of un-accepted goods. ECGC should provide the schemes for exchange rates fluctuation. ECGC should provide schemes for commercial disputes.

ECGC should provide the scheme for political and commercial risks


Chapter 1 Introduction

Documents

carpet industry

carpet exports

type of carpet

european carpet company

carpet craft

analytical study

organization chapter

certain persian carpet