A Project study Report On Training undertaken at KEJRIWAL INDUSTRIAL CORPORATION Titled “A Study of People’s Perception about Export Business” Submitted in partial fulfillment for the Award of degree of Master of Business Administration Submitted by: - Submitted to:- Himanshu Bohra FMS,MAIET,JAIPUR M.B.A – 3 rd SEM (DIRECTOR)
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A
Project study Report
On
Training undertaken at
KEJRIWAL INDUSTRIAL CORPORATION
Titled
“A Study of People’s Perception about Export Business”
Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration
Submitted by: - Submitted to:-
Himanshu Bohra FMS,MAIET,JAIPUR
M.B.A – 3rd SEM (DIRECTOR)
(2011-2013)
Lachoo Memorial College OF Science & Technology, Jodhpur
Management wing
CERTIFICATE FROM THE COMPANY
Preface /Prelude:
Previously, the handicraft export was not very complicated and people did not face many
problems. There was around 35% to 40% profit margin in business but now it has come
down to just 20% to 25%. Due to change in environment the entire Handicraft export
structure has undergone a major change. As part of the economic reforms, export industry
has been deregulated and made competitive. Due to exposure to global trends after
Information explosion led by Internet, customers- both Individuals and Corporate - are now
demanding better services with more products from their sellers. And after good services
the main problems of handicraft exports are Recession, slow down, lack of capital &
competition.
The problems like recession which came in 2010 and 2012 have changed the total mood of
the handicraft export. In the global market there is no order for the exporters and that has
become a big problem in front of handicraft export. Without any order, no export and no
sale this is just like hell for the exporters and the handicraft export business.
Another problem is a cut-through competition in the handicraft export. There are lot of
export firms in Jaipur and Jodhpur and the Shekhawati area of Rajasthan. There is a big
competition between the export firms and they are ready to do the export at lowest
competitive price.
The philosophy of a customer being king is driving the financial markets as well.
Accordingly, it is no more customers chasing the products; it is the appropriateness of
options chasing the customers.
This study is an attempt to view the problems faced by handicrafts exporters in quantitative
form.
Acknowledgement:
I express my sincere thanks to my project guide, Mr.Amit Shrivastava Mahrishi Arvind
institute of Engineering & technology , for guiding me right from the inception till the
successful completion of the project. I sincerely acknowledge him for extending their
valuable guidance, support for literature, critical reviews of project and the report and above
all the moral support he had provided to me with all stages of this project.
I would also like to thank Mr. Om Prakash Kejriwal, (Owner of Kejriwal industry) for their
help and cooperation throughout my project.
( )
Himanshu Bohra
Index
S.No. Content Page No.
1 Certificate from the Company/Organization
2 Preface/Prelude
3 Acknowledgement
4 Executive Summary
Chapter-I Introduction to the Industry
Chapter-II Introduction to the Organization
Chapter-Ill Export industry and Indian exports
Chapter-IV Research Methodology
3.1 Objective of Study
3.2 Type of Research
3.3 Sample Design
3.4 Data Collection
3.5 Limitation of Study
Chapter-V 4. Facts and Findings
Chapter-VI 4. Analysis & Interpretation
Chapter-VII 7. SWOT
Chapter-VIII8. Conclusion
Chapter-IX 9. Recommendation and Suggestions
Chapter-X Appendix
Chapter-XI Bibliography
Executive Summary:
This project has been made to study the basic problems and analyze factors which affect
the exports of handicraft in Jaipur. This project is totally depending on exporter’s opinion
about the determinants of export problem in this recession time. For defining the research
problem clearly, firstly it was decided to conduct the research in the area of export. As
today many export firms and export houses are opening in the city, so it was thought of
determining the factors influencing the problems and chances of handicraft export through
exporter’s and buyers opinion.
In this research it was needed to find out the characteristics of variables effecting handicraft
export, so this is descriptive and quantitative research. Sampling technique for selecting the
sample in which convenience sampling method has been applied because I didn’t have
sufficient time, money and could not have put lot of efforts.
Sample consists of all those people who are working in export firm, exporters and
managers of the company. Interrogation through schedule interview has been used as a
data collection technique and questionnaire is a data collection instrument which is open-
ended. Tabulation was done after getting these questionnaire filled from respondents. Then
tables were analyzed to reach the conclusion that environment in the export firm is the most
attractive feature in it, buyers generally prefer to do the business of handicrafts in the export
sector and their most preferred location of export firms is in jaipur and Jodhpur.
INTRODUCTION
TO
THE INDUSTRY
Introduction to the Industry:
India is famous for its wooden handicrafts, traditional crafts, antique items and textiles.
People all round the globe but textiles online as silk fabrics, textiles, yarns, bedspreads, bed
sheets, bed linen from Indian handicraft manufacturers and suppliers. These traditional
handicrafts have a huge demand and so are supplied and shipped all over the world.
People from across the world, buy textiles and handicrafts from Indian handicraft and
Textile exporters and suppliers.
India’s rich cultural diversity and heritage provides a unique and huge resource for
developing Handicraft products. The Indian Handicraft Industry is showing continuous
growth rate of 20% every year. The Handicrafts industry is one of the important segments
of business sector in India. The Indian Handicraft Industry is a $100 billion industry
worldwide.
Handicrafts suppliers industry comprises of varied products and there is large variety
available in market. We Supply Handicrafts products as Glass products, Metal ware,
Wooden handicrafts , Hand printed textiles, Embroidered and crocheted goods, Shawls,
Order Percentage10 to 15 815 to 20 1720 to 25 3925 to 30 16above 30 20
10 to 15 15 to 20 20 to 25 25 to 30 above 300
5
10
15
20
25
30
35
40
percentage
percentage
ANALYSIS
&
INTERPRETATION
ANNLYSIS:
As part of the project we had make a survey with the help of questionnaire that has to taken
to different people to get perception towards export product and plans and problems the
questionnaire is passed on the general public & managers of the export field and the
workers of the export firms and requested to give their opinion toward export the
questionnaire Consists of both open and close ended question the main motto behind the
Study is to find out how people react against the exports.
In research methodology we have used random sampling and sample size was 100. Simple
random sampling method is followed where every member of population have equal chance
of been selected. The questionnaire is administrated on sample to find out their perception
towards export products and benefits of the product and problems in that particular field.
After analysis of questionnaire Conclusions were made based on finding from bar charts.
Important points of international exports:
Trade in exports and manufactured goods.
Trade between partners of regional exports agreements.
Developing countries exports.
South-south exports.
Containerized cargo.
Global production network.
Intra firm trade.
E-commerce
Problems in export field:
Recession
Slowdown
Exchange rates
Competitions
Raw material supply
Sizzler houses
High export taxes
High cost of packaging
Transport
INTERPATATION OF BAR CHARTS:
Interpretation 1:-
This bar diagram clearly reveals that the major part of export 44% is exported by the
company in England. And the other big part of export 28% is in U.S.A and the third big part
of 20% of export is in gulf countries and the last 8% part of export is in Asian countries.
That means the major area of export is in Eropein countries and it is the biggest area of
exporters.
Interpretation 2:-
After looking this bar, it can be said the highest number of people (buyers) gives the order
of Rs 50 lakhs to 80 lakhs who are 44%. Some other buyers give the order between 30 to
50 lacks in a year they are 28% and other buyers who gives 20 to 30 lacks order they are
only 20% and who gives below 20 lacks they are 8 %.
Interpretation 3:-
Here we can see by this graph that income level of the exporters are 40% when they do
local sale and when they do exports the profit margin is 25%. That means there is
maximum profit in local sale rather than the exports because there are lots of expenses in
the exports that’s why it is not so much profitable like local sales.
Interpretation 4:-
In this survey I found that 80% exporters said that their businesses have affected by the
recession and 20% exporters said that the business is never affected by the recession.
Interpretation 5:-
In survey I found that most of the people don’t want to do the export business and 45%
people want to do the export business.
Interpretation 6:-
In the survey I found that most of the people and exporters believe that recession is the
most important factor that’s why the export business is affected and 22% people believes
that exchange rates are the main problems in exports and other 33% people believes that
competitions are the main problem in exports.
Interpretation 7:-
In this survey I found that 34% people prefer the handicraft export business and 14%
people prefer the textiles export and 7% people have the interest in raw paper exports and
26% people want to do the marvel exports and 19% people have interest in other exports.
Interpretation 8:-
This graph represents that 25% person would like to take loan of 500000rs for export house
and 13% person can take the loan of 500000 to 1000000rs and 17% people can take loan
of 1000000 to 1500000rs and 19% person can take loan of 1500000 to 2000000rs and rest
of 26% people would like to loan of 2000000 and above for the export house.
Interpretation 9:-
This graph represents that 24% person knows about export credit and 76% person doesn’t knows about export credit.
Interpretation 10:-
This bar is vividly showing that the 8% of the exporters get 10 to 15 export order in a year
and 17% exporters get 15 to 20 export order and 39% get 20 to 25 export order and 16%
get 25 to 30 export order in a year. And 20% exporters get above 30 orders in a year they
are very big exporters in the field of handicraft exports.
S.W.O.T
SWOT ANALYSIS:
STRENGTHS:
All the branches of Kejriwal industries are interconnected which give the unique facility
of export business.
All operations of the business are carried on with the help of computers thus works are
carried with greater efficiency.
Kejriwal group provide after services for the buyers.
Employees have a good relationship with the managers and the owner of the company.
Documentations, production & export process is easily done by managers.
High number of workers who makes the work of production and manufacturing very
convenient.
Maximum unit based in Jaipur & Jhunjhunu; as compared to any export firm. Provide
better quality than any other export units.
There are 5 branches existing as per now including Jaipur and more than 600 workers
in the units.
Kejriwal industries provide various types of product (traditional, modern) in wood and
iron.
WEAKNESS:
Less awareness among general masses about the different and new products provided
by other big export houses.
Buyer’s faith in this particular firm is still not very high.
Dissatisfaction among buyers due to improper and lack of after sales services.
Exchange rates are very much affected.
A weak financial position.
Production unit is weak.
There is no separate marketing cell in jaipur branches for local sales.
No other facility is provided.
OPPORTUNITIES:
People’s dissatisfaction towards other business in the time of recession has turned to be
blessing for export business.
Government is now providing some benefits to the exporters.
Special services can be provided to buyers as the buyer’s role is becoming prominent.
The trust of people is increasing in exports rather than going for other business.
There is vast untapped opportunity which lies for export firm in the international market.
Easy entry in export business due to globalisation and liberalisation.
Local market is now on boom so the export firms can get the maximum profit by sale in
local area.
Now the competitions are going low so this is the chance to get the maximum share of
the market and become the leader.
Due to recession the tax on export is very low and there is export benefit is provided by
the government of India.
THREATS:
Some new export firms have been permitted to increase their number branches and its
entry has taken away some business of the existing export firms.
Cut-through competition.
Growth of Chinese export players has led to shifting emphasis from Indian exporters.
Increase in the number of exporters resulted in taking away business.
Due to recession the market goes very low.
The buyers are now interested in some other items of exports not in traditional.
There was around 35% to 40% profit margin in business but now it has come down to
just 20% to 25%.
Some other countries are increasing the export number.
The export item of China, Japan, & some other countries are very cheap.
CONCLUSION
CONCLUSION:
Finally the conclusion which is generalized after the data analysis is that the export industry
is having lots of problems. It is not very complicated but people face many problems in
export industry. There was around 35% to 40% profit margin in business but now it has
come down to just 20% to 25%. Due to change in environment the entire export structure
has undergone a major change. As part of the economic reforms, export industry has been
deregulated and made competitive. Due to exposure to global trends after Information
explosion led by Internet, customers- both Individuals and Corporate - are now demanding
better services with more products from their sellers. And after good services the main
problems of export industry are Recession, slow down, lack of capital & competition.
If any export firm wants to increase the sales, here is important to constraint on the
behavior of buyer. According to the findings, the money required to manage daily
operations at these firms is extremely high. Higher working capital signals inefficiency,
increases cost of capital, adds to debt and eats into profit.
The export firms are small business and Part of the reason why small firms are in troubles
is high working capital costs. Small business firms, like others big businesses, have been
hit by a lack of credit, falling sales and shrinking profits. The major problems small
businesses are facing can be categorized in three main areas namely problems in terms of
working capital are:
Managing Inventory.
Receivables Management.
Management of Cash.
Funding of Shorter working capital needs.
Major part of day to day decision making for business success and growth.
Problems of over investment and under investment.
Seasonal business fluctuations necessitate constant planning.
Future lies on the successful management of working capital and that needs much
attention of the business mangers.
Pressures to supply goods on credit terms on negotiated pricing.
Fierce competition between sellers put pressures on margins.
Increased cost of production and other expenses makes liquidity problems looming
dangerously all the time.
Despite these pitfalls small businesses are in win situations as compared to their big
counterparts as small setup and shorter productions cycles and flexibity in operations gives
them added advantage over others.
The final conclusion is the problems like recession have changed the total mood of the
export. In the global market there is no order for the exporters and that has become a big
problem in front of exports. Without any order, no export and no sale this is a hard time for
the exporters and the export business. But the government is doing lots of efforts for the
exporters and increasing the export business. And now the recession has gone and the
world is doing best for increasing the exports so the export future is bright.
RECOMMENDATIONS
&
SUGGESTIONS
RECOMMENDATIONS & SUGGESTION:
To the people:
I would like to suggest that the export business is the most hansom work out there so we should not ignore the exports and in this business there are lots of changes.
Recession or slowdowns are temporary so the profit will be high in future in exports so this is the right decision to invest in export business.
Get all the benefits of government policies which are only for exporters.
Always go to the export houses for better and cheap product because they produce the items in a lot.
Be a part of export fairs there are lot of export fair organized by Forex and export authority and Indian government.
Encourage the exporters and export business.
To the Government:
Government should make some relief policies for exporters.
Government should reduce taxes on exports.
The FOREX and ECGC type of programs should be adopted on the higher level that’s why the exporters can be benefited.
To Kejriwal industries:
I would like to suggest that it should try to bring down its prices so as to compete with its nearest competitor.
Use the internet marketing it will help for getting the orders.
For getting the export orders try to go gulf countries and take the participation in international fairs.
Open your own export showroom in the city and start the local sale.
Take the participation in all the export fairs.
Get the all benefits provided by the government and ECGC.
Make your own sizzling houses because the company invest lot of money in sizzle the woods.
Evaluate all the business policies and competitive strategy.
APPENDIX
Questionnaire
Dear Sir/Madam,
I am the student of Lachoo Memorial College OF Science & Technology, Jodhpur. As part
of the requirements for my project study I am required to do a research based project on “A
study of people perception about export business” Kindly spend a few minutes of your
valuable time and fill in this questionnaire. Every information given by you will be only for
Academic purpose.
NAME OF RESPONDENT___________________________________________