CHAPTER 1

INTRODUCTION

1
INTRODUCTION

This Report is based on my experience in the field of Logistics where I did my

internship during the month of April and May. As a part of the curriculum every
MBA students must use their summer holidays in a fruitful manner by utilizing
those days in an organization and knowing in and out of it ,organization structure,
gaining work experience, not only all these but also making them to adopt to work
places, their culture. This experience will really help them in the future when they
are put up into job. An internship is a period of work experience offered by an
organization for a limited period of time. The position of a student or trainee who
works in an organization, sometimes without pay, in order to gain work experience
or satisfy requirements for a qualification. Here in this report we can able to known
about garments industry manufacturing, export and import and the documentations,
ect.

BENEFITS OF THE INTERNSHIP

 Some students may think that an internship is a waste of time when they are
learning everything they need to know in the classroom. But I say that is
wrong. An internship gives so much more than a classroom setting can ever
offer. The main advantage of an internship is the on-hand training in a
particular field that occurs with being out of the classroom setting.
 An internship is advantageous because it is in a business setting which
allows the student to use the knowledge that they gained in the classroom
towards practical applications. Not only do they put into practice the
information and skills developed in the classroom, but they learn other skills
not taught in the classroom, like particular shortcuts used in the specific
industry, like GARMENTS industry.  Being in a business setting also gives
the student “real-world” experience that enhances the student’s resume. This
in turn, makes the student more marketable and increases their chances at
being hired directly after graduation.

2
ABOUT EXPORT PROCESS IN FIRST GARMENTS
MANUFACTURING(FGM)
A first garments manufacturing private limited is one of the leading garments
manufacturing industry in Tamilnadu.Textile Industry has been playing a pivotal
role in Indian economy. Textile sector alone presently provides for nearly 28% of
the total organized manufacture sector’s employment in India. About 93 million
people directly and indirectly are engaged in this industry. Indian Textile Industry
enjoys inherent comparative advantages because it is almost self-reliant from the
stage of production of raw materials to the delivery of finished products-from
cotton growing, ginning, spinning, and weaving to manufacturing of clothing
items. The world is fast moving towards natural products and as a result of this
trend, demand for cotton garment is increasing. The demand for hosiery garments
is increasing at a fast pace because of the comfort and soft feel of the product.

3
CHAPTER 2
OBJECTIVES

4
OBJECTIVES

 To learn about export process

 To know about exporting of garments

 To get knowledge about generation of export documentation

 To known about generation of E way bill

5
 CHAPTER 3
INDUSTRY PROFILE

6
INDUSTRY PROFILE

INDUSTRY OVERVIEW

Introduction

India’s textiles sector is one of the oldest industries in Indian economy dating back
several centuries. India's overall textile exports during FY 2017-18 stood at US$
39.2 billion. The Indian textiles industry is extremely varied, with the hand-spun
and hand-woven textiles sectors at one end of the spectrum, while the capital
intensive sophisticated mills sector at the other end of the spectrum. The
decentralized power looms/ hosiery and knitting sector form the largest component
of the textiles sector. The close linkage of the textile industry to agriculture (for
raw materials such as cotton) and the ancient culture and traditions of the country
in terms of textiles make the Indian textiles sector unique in comparison to the
industries of other countries. The Indian textile industry has the capacity to
produce a wide variety of products suitable to different market segments, both
within India and across the world.

The term trade is commonly refers to exchange of goods and services among
business organization or individual. Trade may be internal trade or external trade.
When transactions are taking place within geographical boundaries of a nation it is
called as internal trade or domestic trade.

7
The Indian textile industry has a great legacy, which is perhaps unmatched in the
history of India’s industrial development. India’s textile industry evolved and
developed at a very early stage and its manufacturing technology was amongst the
best. Prior to colonization, India’s manually operated textile machines were among
the best in the world, and served as a model for production of the first textile
machines in newly industrialized countries such as Britain and Germany. Indian
textiles were sought after for their finesse, quality and design.

According to Chouta-Kuan, the Chinese observer preference was given to the

Indian weaving for its and delicacy’ Prestige trade, textiles such as Patola from
Patan and Ahmedabad, the coast was sought after by the Malaysian royalty and
wealthy traders of the Philippines. Textiles have historically formed an important
component of India’s exports. Marco Polo’s records show that Indian textiles used
to be exported to China and South-East Asia. Textiles also comprise a significant
portion of the Portuguese trade with India. These included embroidered
bedspreads, wall hangings and quits of embroidered wild silk on a cotton or jute
ground

The archaeological surveys and studies have found that the people of Harriman
civilization knew weaving and the spinning of cotton four thousand years ago.
Reference to weaving and spinning materials is found in the Vedic Literature.
There was textile trade in India during the early centuries. A block printed and
resist-dyed fabric, whose origin is from Gujarat was found in the tombs of Fostat,
Egypt. This proves that Indian export of cotton textiles to the Egypt or the Nile
Civilization in medieval times were to a large extent. Large quantity of north
Indian silk were traded through the silk route in China to the western countries.
The Indian silks were often exchanged with the western countries for their spices
in the barter system. During the late 17th and 18th century there were large export
of the Indian cotton to the western countries to meet the need of the European
industries during industrial revolution

Clothing (also known as clothes, apparel and attire) is a collective term for items
worn on the body. Clothing can be made of textiles, animal skin, or other thin
sheets of materials put together.

8
 The wearing of clothing is mostly restricted to human beings and is a feature of
all human societies. The amount and type of clothing worn depend on body type,
social, and geographic considerations. Some clothing can be gender-specific.

In the clothing industry, the world trade has developed 58 times between 1995 and
1996. Whereas the exports of India has developed only by 18 times in the same
period of time i.e. strengthening the reduction of the share of clothing exports in
India in the global trade sector (Niosi, 1991). Clothing is the major heart of
development in the textile industry sector in the upcoming future. Given that the
developed countries are likely to remain deficit countries and developing ones are
where textile and clothing would be overflowing. It is of paramount importance for
the developing countries to ensure a meaningful market access to the developed
country markets. The textiles growth rate into India was swifter before World
Trade Organization came into occurrence than after the commitments of India to
slow down their tariffs of import which come into effect.

Garmenting

Garmenting is the process of manufacturing readymade garment. It is the final link

in the entire textile value chain, where processed fabrics are converted into ready
to wear apparels. Readymade garment include shirts, trousers, T-shirts, and jeans
for men, women, and kids, and the garment is used interchangeable with apparel.

The domestic readymade garment is highly fragmented and dominated by the

unorganized player. Among the various segments, women’s wear has witnessed
the fastest growth, reflecting the changing consumer base. India is emerging as a
regional sourcing hub. India, Sri Lanka and Bangladesh have helped in the
emergence of South Asia as the most preferred sourcing hub for apparels of all
types. The fragmented processing facilities and the reservation within the
garmenting industry had led to a highly fragmented garmenting industry in India.
So far, the Indian garment industry has successfully leveraged the flexibility
offered by the small production units. Buy fragmentation has also led to lower
productivity, lesser investment in technology, non-integrated supply chain and few
industry leaders for reference points.

9
Export department

In the past two decades, the Indian textile industry in terms of home textile,
garments and accessories have a witnessed a complete transformation in terms of
quality, market and product development as well as the expansion, In this scenario
export house plays the major role in the growth and conduct of exports. Looking
from this perspective FIRST GARMENTS MANUFACTURING COMPANY
is a very good and important organization in its work.

Internship at FIRST GARMENTS has been a great exposure for the practical
application of my learning. I gained knowledge about actual work culture of the
company and how to deal with the people at workplace. I did my internship in
EXPORT Department

Indian Garment Export

Indian garment exporters cater to the customers all across the country and the
world with an unmatched collection of garments. These are designed as per the
latest market trends and are offered at cost effective rates. The entire spectrum of
garments includes casual and formal wears for men as well as trendy outfits for
women and children.

These are thoroughly tested for ensuing seamless quality, durability, fine stitch,
shrink proof and color resistance. Crafted from superior quality fabrics, these are
manufactured in tune with the International standards. Fashion conscious people
worldwide look for such designer outfits that can best define their taste and
persona. Stitched to perfection, these are easy to wash and maintain and are perfect
to be worn for all occasions. Offered in attractive designs and shades, these are
available in standard sizes that suit the style statement of the wearer. The repertoire
adorned with embellishments is a perfect gift option for dear ones.

India has successfully entrenched their market stand. Their professional websites
have helped in reaching out to millions worldwide.

10
The easily navigable sites showcase the wide variety of designer wears offered by
the company. One can have detailed information about the products and services
offered by the apparel manufacturers and also avail latest discounts and offers. A
great variety of apparel for kids are also available. These lend a chirpy look to the
little ones.

Readymade Garment Industry in Madurai

There are around 1000 Micro tailoring and Readymade Garments units in and
around Madurai. The Madurai integrated textile park consists six Readymade
Garments units and three household garment unit.89 It fulfil the needs of the
domestic market consumers and export readymade garments to various countries.

Readymade Garment Industry generates employment opportunities in Madurai

city. Moreover, in Madurai area, unskilled labors are available with reasonable
labour cost.

Wholesaler and retailer of readymade garments having their own manufacturing

unit in Madurai, namely A.K. Ahamed, Pothys, Ramaraj Cottons, Sri Krishna,
Rajmahal, suxuz, prestiage and the others.

Trends in Domestic Market

Domestic Apparel Market is growing at the rate of ten per cent per annum. Urban
consumers are increasingly seeking branded and lifestyle products. Semi-urban and
rural Indian markets are growing faster than expected.

Tax Structure Related Challenges in exporting of garments

A complicated tax regime is in place which places several challenges on the

logistics industry. Payment of multiple state and central taxes results in

 Considerable loss of time in transit for road freight in order to pay such taxes

 Fragmentation of warehousing space especially for low margin products

thereby providing a disincentive to create large integrated warehousing
spaces

11
 A uniform tax structure to be introduced through the GST is being highlighted as a
panacea for the existing situation. If implemented in spirit GST will enable
logistics services to be provided without consideration for tax boundaries.
However while the introduction of GST looks fairly certain several companies
have already started raising doubts about the final shape the bill will take, given the
deep divisions between several state governments and the central government on
the issue.

Logistics Management in Garments

Meaning

It is important to know about logistics management. Logistics involve the flow of

things from its point of origin to the point of consumption usually general
customers or businesses. The selection of vendors, transportation means, routes
and delivery methods constitute an important part of logistical operations.

Logistics management is a part of the supply chain that uses planning and
implementation to store and deliver goods and services to the customer. It
coordinates several key activities of the supply chain that ranges from the
development of the product to its commercialization.

Typically a logistics management system includes the following:

 Inbound and outbound transportation management

 Warehouse management

 Fleet management

 Processing orders

 Inventory control

 Managing third-party logistics service providers

 Planning supply and demand

12
 Logistics management constitutes several functions such as production
planning, sourcing, procurement, packaging, and dispatching. It also involves
finding the right means to deliver goods and services to the end user.

Inbound and outbound traffic is vital in logistics management. Inbound logistics is

a linear flow of raw materials from suppliers into a warehouse and then a
production unit.

Shifting the products from the warehouse inventory into the hands of the customers
falls under outbound logistics. An example of inbound and outbound logistics at
play is that of a manufacturer of electronic goods, which requires several raw
materials in the form of components, nuts and bolts, cables, casting, packaging
cartons etc. to build products.

Challenges in Logistics Management in Garments

Logistics is prone to several issues that occur mostly due to simple human
errors or other factors. Weak decisions usually result in delays in the transport or
delivery of goods leading to dissatisfaction among the customers. Besides, another
challenge that logistics usually face is in the safe transport of goods. The goods can
become damaged or faulty if not handled accordingly while in transit.

Customer demand has also become higher as they want more transparency in the
delivery process. Moreover, logistics and supply chain are facing the still unsolved
issue of cost control. The rise of fuel charges combined with a steep increase in
energy, freight, and labor rates have put further pressure on logistics providers.

Logistics software has become wider in its scope and functionality to deal with a
wider array of operations and processes. It shares similarities with a supply chain
management software (SCMS), which contains a set of tools that help deal with
transactions, processes, and suppliers. The functionality of a logistics management
software extends to areas such as:

 Processing customer requests

 Processing purchase orders

 Inventory Management

13
 Suppliers Management

 Sales and Distribution

Advantages of Logistics Management Software

In the area of logistics, handing over the process to a logistics

management software has its own advantages. With logistics management
software, a company or 3PL could avail the following benefits.

 Refine Transportation – Transportation being a pivotal area of logistics

incurs the most charges in the form of fuel, energy, labor, tolls and shipping
fees. Relying on logistics software can help manage the various
transportation means and leverage the data to automate the process. This
allows for easy analysis, which a company can utilize to make relevant
decisions for maximizing efficiency and reducing costs.

 Faster Delivery – Logistics being a linear flow of goods and services come
across several issues that affect delivery and cause delays. By incorporating
a logistics software, a singular benefit that businesses derive is in the faster
delivery of products to the customers. A logistics management software can
improve the speeds in delivery by interfering in the production cycle and
selecting the right shipping service, which cuts short any delays to a large
extent.

 Minimize Human Errors – The other notable advantage of having a

logistics management software is in reducing human error. Analysis of
transportation data results in huge quantities of data that is difficult, time-
consuming and prone to errors when processed manually. A logistics
software can process these data without any errors in less time, which will
seamlessly push forward the operations with zero chances of delays.

 Automates Functions – Automation is another boon to integrating a

logistics software to deal with the processes. Certain functions like creating
shipment routes, load planning, and tendering of load to carriers are easily
automated and managed by using a logistics software. Moreover, it
eliminates paperwork, which helps deal with the processes in a more
efficient and timely manner.

14
  Reduce Costs – Savings is the other end result as the logistics software can
automatically compare different shipping services, delivery agents and
transportation methods to find ones with the least pricing.

The other way by which logistics software reduces costs is by lowering the
expedited shipments through improved planning of the shipments

Trends Reshaped Logistics Management Using Software:

Logistics is on a forward growth and several trends have changed it

remarkably. The demand for logistics has peaked with the widespread popularity
of e-commerce.  

As a result, logistics is constantly evolving to accommodate the rising demands of

each industry that depends on it. One area where logistics clearly transformed is in
the digitization of its processes and resources.

With the introduction of logistics management software, the entire nature of

logistics changed allowing a business owner to supervise the operations across
different levels. Digitization combined physical devices and software solutions to
streamline the entire cycle of logistics by putting the owner at the center.

Software as a service (SaaS) is clearly gaining the upper hand as this model
continues to find widespread acceptance in logistics management and supply chain.
It is a reliable model since it offers the security and convenience that logistics
managers can depend upon along with the benefits of cloud computing.

The use of AI is another significant trend in logistics and supply chain. It holds the
most potential to disrupt the field of logistics in the near future. Some of it is
already a reality now such as in the automation of specific tasks and is slated to
advance further with gesture recognition and autonomous delivery via self-driving
vehicles.

Moreover, the trends also clearly hint at an improved collaboration in the processes
that govern the logistics and supply chain.

Emphasis is also given on managing risks and promoting resilience in the supply
chain, which increases the dependence on logistics software for dealing with the

15
processes more effective than before. With, the trends shifting logistics
management in a progressive direction.

The need for software solutions in the field has become indispensable. Businesses,
whether focusing on e-commerce or delivering services, can benefit from having
logistics management software. However, the real question is finding the right kind
of logistics software since the requirements vary for each business.

Important.processes.in.exporting.the.Garments

Bill of Lading (B/L): An evidence of contract between the shipper of the

goods and the carrier. The customer usually needs the original as proof of
ownership to take possession of the goods. 

Invoice: Commercial invoice is a key document in the international trade. In

addition to playing an essential role in the commercial transaction, it has an
important function as a source of information and supporting document for
administrative procedures in the importing and exporting countries. 

GSP: GSP means Generalized System of Preferences (GSP), which provides

garment manufacturers with duty-free access. Actually, GSP is an
instrument by which developed nations help the poorer countries foster more
trade. 

16
 CHAPTER 4
COMPANY PROFILE

17
COMPANY PROFILE

FIRST GARMENTS MANUFACTURING group of Ammayyapar

M/s.Ammayapper Roadways is the Proprietorship concern, established in 1968 by

Thiru.V.Haridoss and for over Four Decades been serving the Logistics
requirements of the country. Having its Head Office in Chennai and the
establishment is having Branches in Tamil Nadu, Andhra Pradesh, Kerala &
Karnataka State.

TOP 10 GARMENTS MANUFACTURING COMPANIES IN TAMILNADU

1. First Garment Mfg Co

2. Home Textile Manufactu rer and Exporter- Linenwings- Balavigna Group of

companies

3. PKS GARMENTS

4. Eastman Exports Global Clothing Private Limited

5. Vogue Sourcing, Uniform, Sportswear, School Wear, Corporate Wear, T-

Shirt, Garments Manufacturer in India

6. Corporate Uniform, School Uniform, T-Shirt, Poloshirt, Clothing

Manufacturer in Chennai - Vogue Sourcing

7. Aruna Clothing Company

8. Poomex Clothing Company

9. JJ Software

10.Rasul Garments

Chairman Profile

18
 Haridoss Karthikeyan is registered with the Ministry of Corporate Affairs
with a DIN (Director Identification Number) of 00892659, and is currently
associated with 3 companies.

Thiru.V.Haridoss and for over Four Decades been serving the Logistics
requirements of the country. Having its Head Office in Chennai and the
establishment is having Branches in Tamil Nadu, Andhra Pradesh, Kerala &
Karnataka State.

 He is the director of First Garments manufacturing company.

 He also acts as a director of Ammayapper Textiles private limited

from 2005.

 Mr. Haridoss is also the director of Ammayapper Paper Mills private

limited in 2018.

History of the First Garments Manufacturing

First Garment Manufacturing Company (India) Private Limited is an unlisted

private company incorporated on 04 March, 1997. The total paid-up capital is INR
8.68 cr. The last reported AGM (Annual General Meeting) of the company, per our
records, was held on 30 September, 2018. Also, as per our records, its last balance
sheet was prepared for the period ending on 31 March, 2018.

Thiru.H.Karthikeyan, the eldest son of Thiru.V.Haridoss, is a Master Graduate in

Information Technology from Australia University. He is Young and Dynamic
person, curious to diversify the Transport Business. As per his wishes & thoughts,
during the end of 2002, the concern diversified the logistic activities into Cement
and Dry Fly Ash transportation through specially designed Bousher Tankers.
Thiru.H.Karthikeyan was the main tool for adding the Bousher Tankers to the
existing Fleet & Promoted largely the Cement & Fly Ash Transportation of
M/s.Ammayapper Roadways

Thiru.H.Senthilvelu, the youngest son of Thiru.V.Haridoss, is vivid and brilliant

Personality and acquired business Techniques from his father. He is also a Master
Graduated in Business Administration from U.K. University. The thirst for

19
business induced him to join in M/s.Ammayapper Roadways during May-2007.
After his entry, the progress achieved in this line is aggressive and the combined
Fleet strength of vehicles of various categories increased to 600.

Vision

To manufacture products comparable to international standards, to be

customer-focused and globally competitive through better quality, latest
technology and continuous innovation

Mission

 To manufacture world-class products of outstanding quality that

give our customers a competitive advantage through superior
products and value, so we can make every customer smile.
 To encourage people's ownership, empowerment and working
under team structure.
 To attain highest level of efficiency, integrity and honesty.

Objectives

 Customer's satisfaction and delight.

 Superior quality of performance.
 Concern for the environment and the community.
 Passionate about excellence.
 Fair to all.
 To provide a safe workplace and promote healthy work habits.

Quality Policy

20
 As a company policy, we believe in living and practicing internationally
approved business ethics and norms that distinguish Globe from its counterparts.
Values – honesty, integrity and human dignity, besides ethical approach in
engagements with all connected stakeholders; customers, suppliers, employees and
others, remain close to our hearts resulting in our hard earned repute and success.

Products

Leading manufacturers and suppliers of men’s wear, men’s casual wear,

men’s formal wear, men’s cargo pants, men’s jeans, men fashion jeans, men crop
jeans, designer crop jeans, and men wrinkle free trousers, designer men’s apparel,
and fashionmen’s garments

Future Plans

The future plan of the first garments company is to become the first
company in textile industry, to increase the productivity level and to increase the
varieties of the products produced in the company. The company mainly works in
new invention of products in terms of competing with the other companies

Customer Profile

The customers of the company are two companies they are

1. Decathlon

2. Hennas&Maritz 

Decathlon  

21
Is a French sporting goods retailer. With over 1500 stores in 49 countries it is the
largest sporting goods retailer in the world. The location of the company are the
following countries,Belgium, France, Netherlands, Hungary, United Kingdom,
Germany, Turkey, Hong Kong, India, Japan, Italy, Singapore, Spain, Brazil,
Portugal, Romania, Ireland, Mexico, Australia, and recently, Malaysia, Egypt,
Vietnam and Thailand. In India, Decathlon products can be bought directly through
their stores subsequent to change in India's FDI policy and approval for Decathlon
in February 2013. In addition to this, Decathlon products are also available online
through their online resellers.

In late 2016, an online only delivery service was introduced in Tunisia in

preparation of the opening in Tunis of its first store. The first store opened in
November 2017 in Tunis City commercial center in Tunis. A second location
opened in April 2018 in the country situated in La Maras.

In February 2017, they opened the first store in Bogota, Colombia in the mall
ParquetLa Colima. In July 2017, Decathlon has opened its doors to the Filipino
people located at Festival Mall in Filinvest Corporate City, Alibiing, and
Muntinlupa, Philippines. Their first Australian store opened in Tempe, Sydney,
NSW, in December 2017.

In August 2017, the company announced it would open its first Canadian store
in Brossard, Quebec during the spring of 2018.

In April 2018, the company announced it would open its first Serbian store
in Belgrade, Serbia during the spring of 2019, as well as in Kyiv, Ukraine in the
first months of 2019.

In January 2019, the company announced it would open 9 stores in Ireland, starting
in Ballymun, north Dublin with features will include a rollerblading track, bike
circuit and AstroTurf pitch.

Hennas&Maritz AB [H&M] 

22
Is a Swedish multinational clothing-retail company known for its fast-
fashion clothing for men, women, teenagers and children. H&M and its associated
companies operate in 62 countries with over 4,500 stores and as of 2015 employed
around 132,000 people. It is the second-largest global clothing retailer, just behind
Spain-based Indicted (parent company of Zara). The company has a significant
online presence, with online shopping available in 33 countries.

The company was founded by ErringPerson in 1947, when he opened his first shop
in Västerås, Sweden. The shop, called Hennas (Swedish for "hers"), exclusively
sold women's clothing. A store was opened in Norway in 1964. In 1968, Person
acquired the hunting apparel retailer Mauritz Widforss,which led to the inclusion
of a menswear collection in the product range and the name change to Hennes &
Mauritz.

The company was listed on the Stockholm Stock Exchange in 1974.Shortly after,
in 1976, the first store outside Scandinavia opened in London. H&M continued to
expand in Europe, and began to retail online in 1998, when it was able to buy the
domain hm.comfrom a company called A1 in a non-published domain
transaction. The two-letter domain was registered in the early 1990s, but data on
the first registration is lost. The opening of the first U.S. store on 31 March 2000,
on Fifth Avenue in New York marked the start of the expansion outside of Europe.

In 2008, the company announced in a press release that it would begin selling
home furnishings. Initially distributed through the company's online catalog, there
are now H&M Home stores located internationally.

H&M operated 2,325 stores at the end of 2011, and 2,629 stores at the end of
August 2012. Its 3,000th store opened in September 2013 in Chengdu, China.

23
 CHAPTER 5
FIELD OF STUDY IN FIRST GARMENTS
MANUFACTURING (FGM)

INTRODUCTION

24
FIRST GARMENTS MANUFACTURING is the leading Garments manufacturing
company in Tamilnadu. FGM export garments throughout the world. The buyer of
the FGM is DECATHOLAN. DECATHOLAN is one of the sportswear company

The functional areas of the FGM Company are the following departments,

 Human Resource department

 Merchandising department

 Planning department

 Purchase department

 Production department

 Quality department

 Finishing department

 Logistics department

25
 VP

GM

HR PL MER PUR PRO QUALITY FIN LOGIC

HUMAN RESOURCE DEPARTMENT

The Human Resource Department is the strategic approach to the effective

management of people in an organization so that they help the business to gain a
competitive advantage. It is designed to maximize employee performance in
service of an employer’s strategic. HR’s overallpurpose is to ensure that the
organization is able to achiee success through people. They manage human capital
of an organization and focus on implementing policies and process.

The Human Resource Department is taken over by Mrs. Bala. She handles over
the process of recruiting labours and employees. Employees of this company are
found to be much attached to the HR since the relation between the department and
labours are in fine manner.

MERCHANDISING DEPARTMENT

Merchandiser is the interface between Buyer & Exporter. He is the responsible

from order analysis to shipment. So Merchandising is the very valuable department
in the Apparel Industry. This Article explains the main responsibilities of
merchandisers.

Merchandising is the department which mediates marketing and production

departments. Sometimes, merchandising department will have to do costing and

26
pricing also. In any case, the merchandiser is the person whose responsibility is to
execute the orders perfectly as per the costing and pricing. So it is a very valuable
department

The main responsibilities of Merchandisers

 Internal & external communication,

 Sampling,

 Lab dips,

 Accessories & trims,

 Preparing internal order sheets,

 Preparing purchase orders,

 Advising and assisting production,

 Advising quality department about quality level,

 Mediating production and quality departments,

 Giving shipping instructions and following shipping,

 Helping documentation department,

 Taking responsibility for inspections and Following shipment.

The merchandising department is handled by Mr. Venkatesan and Mr.

Silamparasan. Mr. Venkatesan is the senior person of the company. They both
handle the process of merchandising functions of the FGM Company.

FUNCTIONS OF MERCHANDISING DEPARTMENT

27
 OBTAIN ORDER

DO COSTING FOR THAT PARTICULAR STYLE

NEGOTIATION WITH BUYER

ORDER FABRIC AND TRIMS

RECEIVING BULK FABRICS AND TRIMS

SEND SAMPLES TO PRODUCTION

SUPERVISING THE ORDER TILL SHIPMENT

PLANNING DEPARTMENT

28
Production planning is the very important department in garments industry.
Production planning is the controlling aspect of garments industry. It is involves
everything & every task in the process to execution the delivery of goods within
time frame. So, production planning is the controlling of production &
manufacturing process determined by time frame.

Planning department plan every style to execution the order within time limit.
Each order has a delivery date & production plan department follow production
plan on the base of delivery date. They know when fabric & trims in-house in
factory will. Basically some of fabric & trims come from Local & internationally
.So, they plan both option on the base of delivery date. The Planning department
follows the major actions of the company, the functions are the following,

1. Capacity planning,

2. Time & action,

3. Scheduling,

4. PP meeting,

5. Order allocation,

6. Man power & M/C allocation,

7. Execution of tasks.

29
Capacity planning:

Production planning department make production capacity of a factory because

capacity determined need order or not. If order capacity is full whole the year then
do not take over capacity order because it is needed over cost to make extra
capacity order. On the other hand, if capacity order is not full then take more order
to fill the capacity otherwise factory will be loser by financing. Production
planning department must be inform forecast capacity order to merchandisers &
management so they can inform to buyer for order.

30
Time & Action:

Planning department must follow every style as per schedule. Every order has own
time frame & meet delivery time. Every style follow product development to
shipment. It is job task for planning department otherwise they cannot meet
delivery as per plan schedule. So, Planning department take action very style
follow up within time & Action calendar.

 Scheduling: 

Production planning department take decision when a style input into line. On the
schedule they cheek fabric & trims with store department & Merchandising
department. If get on time in-house every items they can input into line. on the
other hand if not get fabric & trims on time they can change line plan to reduce the
cost.

PP Meeting:

 Production planning department cheek particular style fabric & trims status with
store & merchandising department. If every items & approval is done then they co-
operation with all related department like as Merchandising, Production, store,
cutting, Finishing, quality & buyer representative to make clear understanding for
particular style for production. Before PP meeting they can cheek all approval,
production file, trim card & ready size set.

Order allocation:

Planning department does line allocation for every style. When got any order from
buyer they must allocation line plan. Without line plan an order cannot smoothly
run for production. So order allocation is very important for planning department.

Man power & M/C allocation:

Production planning department take decision how many operators need for
particular style to output. They can take decision line layout for a particular style.
And also take decision how many machine need to operate the line. Then they can
take effective decision for productivity for particular style.

31
7Execution of tasks:

Planning department must be execution every task for effective planning. Without
effective execution it cannot smoothly production. So they must execution every
style planning order placement to shipment.

Mr. Muthu velaiutham, Mr.Gopi and Mr. Kavi are the persons who handles the
planning department of the FGM Company. The above seen works are taken by
these persons in general

PURCHASE DEPARTMENT

The purchase department of the company is divided into two departments they are
the following

1. Fabrics department

2. Trim purchase

Both of these departments are considered to be a separate departments in this

company but both of the departments are interlinked to each other.

FABRICS DEPARTMENT

The Fabrics department is handled by Mr. Raghavan and the trim purchase is
handled by Mr. Nellaiyappan.

The process of the fabrics department are the following,

1. Fabric dispatched from supplier

2. Fabric receiving

3. Fabric checking

4. Fabric lot rejection

5. Kept in store

32
Fabric dispatched from supplier

After the fabrics had been ordered by the fabrics department to the supplier for a
specific quantity and design the fabrics is dispatched to the company by the
supplier

Fabric receiving

Garment factories receive fabric from overseas textile manufacturers in large bolts
with cardboard or plastic centre tubes or in piles or bags. The fabric typically
arrives in steel commercial shipping containers and is unloaded with a forklift.
Garment factories often have a warehouse or dedicated area to store fabric between
arrival and manufacturing.

Then the fabrics are received by the company on the delivered date of the fabrics to
the company.

Fabric Relaxing

“Relaxing” refers to the process that allows the material to relax and contract prior
to being manufactured. This step is necessary because the material is continually
under tension throughout the various stages of the textile manufacturing process,
including weaving, dyeing, and other finishing processes. The relaxing process
allows fabrics to shrink so that further shrinkage during customer use is minimized.

Garment manufacturers perform the relaxing process either manually or

mechanically. Manual fabric relaxing typically entails loading the bolt of fabric on
a spinner and manually feeding the material through a piece of equipment that
relieves tension in the fabric as it is pulled through. Mechanical fabric relaxing
performs this same process in an automated manner.

Many garment manufacturers will also integrate quality assurance into this process
to ensure that the quality of the fabric meets customer standards. This step is
performed by manually spot-checking each bolt of fabric using a backlit surface to
identify manufacturing defects such as colour inconsistency or flaws in the
material. Fabrics that fail to meet customer standards are returned to the textile
manufacturer.

33
Fabric checking

Then the process of checking the fabrics is followed by the fabrics receiving. Here
the received fabrics are checked by the labors of the department and then the fabric
is kept ready for production.

Fabric lot rejection

Fabrics lot rejection involves in the process of rejecting the garments that are not
suitable for the garments production. The fabrics are rejected on the consideration
of several defects. The defects are the following. If the defect of the fabric is more
than 20 marks then the fabrics is rejected and it is returned back to the supplier.

Kept in store

After the process of checking the fabrics then the fabrics that are expect from the
rejection are kept in store for the process of production.

Spreading, Form Layout, and Cutting

After the fabric has been relaxed, it is transferred to the spreading and cutting area
of the garment manufacturing facility. The fabric is first to cut into uniform plies
and then spread either manually or using a computer-controlled system in
preparation for the cutting process. The fabric is spread to:

 Allow operators to identify fabric defects;

 Control the tension and slack of the fabric during cutting; and
 Ensure each ply is accurately aligned on top of the others.

The number of plies in each spread is dependent on the fabric type, spreading
method, cutting equipment, and size of the garment order.

Next, garment forms—or patterns—are laid out on top of the spread, either
manually or programmed into an automated cutting system. Lastly, the fabric is cut
to the shape of the garment forms using either manually operated cutting
equipment or a computerized cutting system.

34
TRIM PURCHASE

Trims are the materials that are necessary for producing a garment. Trim includes
the threads, elastics, zips, buttons, stickers, tags, barcodes, and size tags and
additional that are required for a garment. The trims are ordered exactly for the
production. Trim store is maintained separately by the company.

PRODUCTION DEPARTMENT

The production department is the prime of a garment company. The following are
the departments that comes under the production department they are the following

 Sampling department

 Cutting department

 Industrial engineering

 Sewing department

 Washing department

35
Sampling department

The sampling department involves in the process of preparing the sample of

garment those mentioned by the buyer in the technological package
(techpack).Techpak is the detailed description of the garment of the particular style
by the buyer. After the sample is prepared by the sample department then it is sent
to the buyer for the approval in case if it has any corrections the corrections made
by the sample department and then the master sample are prepared. Then the
sample layout and the sample is sent for the cutting and sewing department.

Laying

Lying of paper pattern helps one to plan the placement of the pattern pieces in a
tentative manner.

Lay large pieces first and then fit in the smaller ones

It is very economical in laying the pattern and cutting. Even a small amount of
material saved in a single layer will help to bring about a large saving of money as
hundreds of layers of fabric will be laid and cut simultaneously.

When laying, the length of the garment should be parallel to the selvedge of the
material. Be sure the pattern is placed in the correct grain. Fabrics drape and fall
better on the lengthwise grain and also last longer.

Parts that have to be placed on the fold should be exactly on the edge of the fold.

All laying should be done on the wrong side of the material.

When laying the paper pattern, consider the design of the fabric. Care should be
taken to see that the design runs in the same direction throughout the garment. All
checks and strips should match the seams both lengthwise and across.

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Marking

This can be a manual or a computerized technique

The marker planner uses full-size patterns and arranges them in an economical
manner on marker paper.

This is a specially printed paper having symbols on it which enable the marker
planner to visually control the positioning of components according to specified
grain lines.

Markers produced on paper are fixed to fabric with pins, staples or on an adhesive
paper which is heat sealed to the top layer of the fabric.

Marker planning provides details of the spreads. In the cutting room, the fabric is
laid manually or a spreading machine is used to arrange fabric inlays 100 (layers)
and markers for the production, any in orders planned. Here planning is done also
for fusible, linings, trims, pocketing etc.

The supervisors of marker planner plan and allocates the cut orders to various
operations to be carried out in the cutting room.

Cutting department

This is the major operation of the cutting room when they spread and cut into
garments. Of all the operations in the cutting room, this is the most decisive,
because once the fabric has been cut, very little can be done to rectify serious
defects.

A first planning consideration is whether the totals arrived at in the cutting room
are the same as those required to maintain full production in the sewing room and
subsequently the planned delivery schedule. Any cloth problems created in the
cutting room can affect the output in the sewing room. Assuming all components
of fabric, design, and trims are acceptable and correctly planned and cut, the next
stage is to extend the cutting room programme to the sewing room.

All cutting operations are carried out by straight knife cutting machines.

37
After the planning department plans the schedule for the production of the garment
of the particular style. Then the planning authority allows the fabrics department
for the process of production. Then the fabrics department sends the fabrics to the
cutting department. The layout for the process of cutting the fabrics will be given
by the sample department itself.

Industrial engineer

Industrial engineer is the person who plans the target for the sewing department.
He schedules the day to day targets and then he handles the sewing department.

Sewing department

Sewing is the process of stitching the garment according to their style. The
operator of the sewing department varies according to the style.

Garments are sewn in an assembly line, with the garment becoming complete as it
progresses down the sewing line. Sewing machine operators receive a bundle of
cut fabric and repeatedly sew the same portion of the garment, passing that
completed portion to the next operator. For example, the first operator may sew the
collar to the body of the garment and the next operator may sew a sleeve to the
body. Quality assurance is performed at the end of the sewing line to ensure that
the garment has been properly assembled and that no manufacturing defects exist.
When needed, the garment will be reworked or mended at designated sewing
stations. This labor-intensive process progressively transforms pieces of fabric into
designer garments.

 The central process in the manufacture of clothing is the joining

together of components
.
 Stitching is done as per the specification is given by the buyer.

 High power single needle or computerized sewing machines are

used to complete the sewing operation. Fusing machines for fusing
collar components, button, and buttonhole, sewing machines for
sewing button and buttonholes are specifically employed.

38
Stitching or sewing is done after the cut pieces are bundled according to size, color
and quantities determined by the sewing room.

The following are the person, who comes under the sewing department,

1. Line leader

2. Operator

3. Assistant leader

4. Jumper

5. Quality checker

6. Industrial engineer

7. Feeding persons

8. Maintenance in charge

Line leader

Line leader are the person who takes over the particular of the sewing department.
Line leader are appointed according to their performance and the take
responsibilities of the line respectively.

Operator

These are the workers who work in the process of stitching the garment of the
particular style. The operators are trained by the training department the company
when they are new. Training department is handled by the HR department of the
company.

Jumper

They are the people who can operate at any style of the garment. These jumpers
are appointed on the performance in the training.

39
Quality checker

They involve in the process of checking the quality of the garment after it is
completed. The garments are checked individually by the quality checker. If any
defects arise then the garment is sent back into the line for the correction. If the
defects are more in number then it is rejected.

Industrial engineer

For every line there is will be an IE. They are appointed by the IE department.
They control over the line in all. They set the targets for the line in individual as
per the due date.

Feeding persons

Feeding persons are the persons who involves in the process of collecting the trims
and the fabrics for the sewing line.

Maintenance in charge

They are the people who are appointed for every line for the process of
maintaining and repairing the machines that are in involved in the process of
production.

Embroidery and Screen Printing

Embroidery and screen printing are two processes that occur only if directly
specified by the customer; therefore, these processes are commonly subcontracted
to off-site facilities.

Embroidery is performed using automated equipment, often with many machines

concurrently embroidering the same pattern on multiple garments.

40
Each production line may include between 10 and 20 embroidery stations.
Customers may request embroidery to put logos or other embellishments on
garments.

Screen printing is the process of applying paint-based graphics to fabric using

presses and textile dryers. Specifically, screen printing involves sweeping a rubber
blade across a porous screen, transferring ink through a stencil and onto the fabric.
The screen printed pieces of fabric are then dried to set the ink. This process may
have varying levels of automation or may largely be completed at manually
operated stations. Like embroidery, screen printing is wholly determined by the
customer and may be requested to put logos or other graphics on garments or to
print brand and size information in place of affixing tags.

Washing department

The finished garment is placed in the hub of the production department and then
the garments are sent to the washing process and then the goods are sent to the
packing.

QUALITY CONTROL DEPARTMENT

The quality department involves in the checking the quality of the garment that are
finished by the production department. Though there quality controllers involved
in the production department the goods are checked once again for confirmation of
the quality of the goods.

Checking

It is realistic to assume that however well checking or quality control procedures

operate within a factory there will always be a certain percentage of garments
rejected for some reason or other. The best way to carry out quality checks is by

Establishing a standard as a criterion for measuring quality achievement.

Production results can be measured and compared to the planned quality standard.

Corrective measures to be carried out if there are any deviations in the plans

41
Ideally, any system should detect possible deviations before they occur through
forecasting. Work produced with minus defects will produce quality products,
enhance economy and productivity.

Spot Cleaning and Laundry

In addition to identifying manufacturing defects, employees

tasked with performing quality assurance are also looking for cosmetic flaws,
stains, or other spots on the garment that may have occurred during the cutting and
sewing processes. Spots are often marked with a sticker and taken to a spot-
cleaning area where the garment is cleaned using steam, hot water, or chemical
stain removers.

Some customers request that a garment be fully laundered after it is sewn and
assembled; therefore, garment factories often have on-site laundry or have
subcontract agreements with off-site laundry operations. Commercial laundry
facilities are equipped with at least three types of machines: washers, spinners, and
dryers. Some facilities also have the capability to perform special treatments, such
as stone- or acid-washing.

Laundering is done by highly sophisticated washing machines if any articles are

soiled during the manufacturing process. However, this step is required only if the
garments are soiled.

Fusing and Pressing

Fusing and pressing are two processes which have the greatest influence on the
finished look of a garment. Fusing creates the foundation and pressing put the final
seal of quality on the garment.

42
 After a garment is fully sewn and assembled, it is
transferred to the ironing section of the facility for final pressing. Each
ironing station consists of an iron and an ironing platform. The irons are
similar looking to residential models but have steam supplied by an on-site
boiler. Workers control the steam with foot pedals and the steam is delivered
via overhead hoses directly to the iron. In most facilities, the ironing
platforms are equipped with a ventilation system that draws steam through
the ironing table and exhausts it outside the factory
The basic components of pressing are:

Steam and heat are necessary to relax the fabric and make it pliable enough to be
molded by manipulation.

Pressure: when the cloth has been relaxed by steam, the pressure is applied which
sets the fibers into their new positions.

Drying:

 After the application of steam and pressure, the component or garment must be
dried and cooled so that cloth can revert to its normal condition. This is done by a
vacuum action which removes surplus water from the fabric and at the same time
cools it. For some pressure operations hot air or infrared heating is used instead of
vacuum for drying;

Machinery used for pressing and finishing are

 Hand irons with a vacuum press table

 Scissors press
 Carousel machines
 Steam dolly

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FINISHING DEPARTMENT

The finishing department involves in the process of packing the goods and making
it ready for the shipment. The goods are packed under the basis of buyer request
and according to the size of the goods. Here the SHU stickers are pasted according
to the goods that are made for shipment. The garments are packed by scanning.

SCANNING PROCESS

The effect of digitalization is everywhere, in apparel industry different electronic

devices are used to collect information, keep records and also use these records to
increase the operational efficiency. Because of operational benefit, in garments and
stores you may find that people are using it and it gives them operational
advantage. In this article you will know about scan and pack system in apparel
industry and what are the advantages we can get. You will also see the process of
scan and packing system.

Scan and pack system is an Electronic Data Interchange (EDI) system, tag/sticker
barcode scanning uses on Garments product SKU information and customer order
details to complete the scan packing requirements for retailers.

Advantages of Scan and Pack System in Garments Manufacturing

 Remove packing error and keep accurate pack SKU

 Save time and cost, increase work efficiency
 Auto-generating packing list
 Auto-generating case label
 Add value to the customer

44
Scan and Packing Process

Main Objectives for scan and pack system is to keep packing accuracy, giving the
right units of shipping carton to the customer and saving time. Every Garment will
be scan by barcode scanner before packing. If any garment barcode can’t read by a
scanner, GMTS will put away, marking unable to pack, for example, if there a
carton of 20 pcs solid SKU, after completing the scan of every pcs, GMTS to be
pack immediately. After completing 20 pcs scan, the carton will be closed. After
completing every carton, scanner reset to count every GMTS for the individual
carton to keep accurate solid SKU. By this way, no need to count GMTS to keep
the right amount of stock keeping unit in any carton. By this way, time will save.

PACKING PROCESS IN FGM

Garment packaging is the process of wrapping, compressing, filling or creating of

goods for the purpose of protection and their appropriate handling. This is the final
process in the production of garments, which prepares the finished merchandise for
delivery to the customer. It is an important part of the garment manufacturing
process. Garment packaging is also use to get lot of attention from the customer.
These operations come under the materials handling methods and are no less
important than other systems used in the factory. After completing the entire
manufacturing task, apparel is required to be packed. After packing, it is placed in
cartons as per instructions and then it is stored in a store section before it is
delivered to the respective buyer.

Packaging refers to the container that carries a product. Two basic objectives of
packaging are preventing any damage to the product during transportation and
enhancing the features of the product to the consumer for a sale of it. 

The main purpose of distribution packaging is packaging the garment in a way that
it allows the garment manufacturers to transport the garment at a minimum cost
and in the shortest time to the retailer or purchaser, without deteriorating the
quality of the product. The merchandising function deals with showcasing the
garment product in a way that it stimulates consumer desire for purchasing the
particular product.

45
G
L
A
D
S
C
O
I
N
M
P
X
E
T
R
LOGISTICS DEPARTMENT
Flowchart of Garment Packaging:

Received garments from the finished section

↓
Hang tagging
↓
Folding with inserting back board, tissue
↓
Poly Bagging
↓
Cartooning
↓
Applied adhesive tape on the pack
↓
Bar-coding
↓
Packing complete

Then finally it comes to logistics department. Logistics department in the process

of scheduling the shipment of the goods and the mode of transport. Logistics
department involves in export and import.

46
INTRODUCTION ABOUT IMPORT AND EXPORT

The Export Import of Garments Products is a vital matter of a Garments company.

It increases the opportunity for entrepreneurship development in garment sector.
Thus it helps the unemployed people as well as the government to remove
unemployment problem and also play an important role in the economic
development of the country.

The overall approach of the report is to focus on the Export Import Activities of

Garments Products strategy and the way by which it attracts the foreign customers
to sale products abroad. TM Fashion is a 100% export oriented company. Export
Import process provides to increase the reputation of the company.

The domestic market for readymade garment was virtually non-existent in

Bangladesh until the sixties. Large scale production of readymade garments
(RMG) in organized factories is a relatively new phenomenon in Bangladesh. Until
early sixties, individual tailors made garments as per specifications provided by
individual customers who supplied the fabrics.

IMPORT

An import is a good brought into a jurisdiction, especially across a national border,

from an external source. The party bringing in the good is called an importer.

 An import in the receiving country is an export from the sending country.

Importation and exportation are the defining financial transactions of international
trade.

In international trade, the importation and exportation of goods are limited

by import quotas and mandates from the customs authority. The importing and
exporting jurisdictions may impose a tariff (tax) on the goods. In addition, the
importation and exportation of goods are subject to trade agreements between the
importing and exporting jurisdictions.

47
IMPORTS OF FGM

Import involves in the process for procurement of raw material for the process of
production. The raw materials are fabrics and trims

The various types of fabrics are imported from various countries, fabrics colors are
selected by the buyer choice

The trims are imported from various countries trims are like threats, rope, button,
etc

EXPORT DEPARTMENT

48
INTRODUCTION

An export in international trade is a good or service produced in one country that is

bought by someone in another country. The seller of such goods and services is
an exporter; the foreign buyer is an importer.

Export of goods often requires involvement of customs authorities. An export's

reverse counterpart is an import.

EXPORT DEPARTMENT INCHARGE IN FGM

Export involves in the process for shipment of goods to the location of the buyer.
The export is handled by Mr. Suresh, Mr. Pandiyarajan and Mr. Jeyakumar

FGM EXPORT PROCESS

Export procedure of readymade garment means all the processes required from
order receiving to shipment. Export process of garments products is a vital matter
of a garment company. In this case, commercial invoice is an evidence or record of
the transaction between the importer and the exporter which is a mandatory
document

The merchandiser dealing with foreign buyers is expected to know the procedure
of exporting garments to the buyer. The knowledge on export procedures will only
help the merchandiser to negotiate and manage the foreign buyers properly.

It is imperative to understand the procedure of exporting and various allied

documents used for it as he / she is the one point contact for the buyers and should
be proficient in answering the questions of the buyers related to export of
materials. In this post I have try to give a basic idea about readymade garment
export procedures and formalities. This export process is same in almost all
countries with slight variation. I hope this post helps you in getting a basic training
on how to export garment products.

Normally the documents which are to be submitted by a C & F to the customs

authority for exporting goods are called export documents. In this post I have try to
give a basic idea about export procedures and formalities for garment export. This

49
export process is same in almost all countries with slight variation. I hope this post
helps you in getting a basic training on how to export various products.
When garment manufacturers or exporters of garment buying house want to
garment goods to other countries they need to prepare export documentation. For
exporting apparel goods to the buyer's country normally following documentation
are required.

Process Sequence of Garments Export Process:

Contact with the buyer

↓
Order collection
↓
Sample development
↓
Sample approval
↓
Costing
↓
Confirmation of order
↓
Consumption
↓
Fabric& accessories booking
↓
MasterL/C
↓
Back to back L/C
↓
Preparing T&A calendar
↓

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 Fabric & trims in House
↓
Pre-production meeting
↓
Pattern and marker making for bulk production
↓
Cutting
↓
Numbering, bundling & sorting
↓
Productionlineset-up
↓
Sewing
↓
Finishing
↓
Pre-final inspection
↓
Final inspection
↓
Ready for shipment
This the flow chart of export department by exporting the garments.
Exporting

Many manufacturing firms began their global expansion as exporters and only later
switched to another mode for serving a foreign market. Exporting refers to sending
of goods and services from the home country to foreign country.

In the last steps of making a product retail-ready, garments are folded, tagged,
sized, and packaged according to customer specifications. Also, garments may be

51
placed in protective plastic bags, either manually or using an automated system, to
ensure that the material stays clean and pressed during shipping.

Lastly, garments are placed in cardboard boxes and shipped to client distribution
centers to eventually be sold in retail stores.

Most garments are packed in plastic bags, either at the end of production or when
they enter the finished goods store. Products like shirts and underwears are usually
bagged and boxed directly after final inspection and enter the stores in prepacked
form.

For these and similar types of products, many automatic machines are used.Other
hanging garments such as Jackets, dresses & skirts are usually bagged by manual
machines, semi-automatic machines, and fully automatic machines. Some of these
automatic machines bag, seal, and transport in trolley; some 500 garments per
hour.

When the boxed or hanging garment has to be transported in bulk the garment or
boxes are packed into cartons which can be sealed by adhesive paper or plastic
Manual and automatic machines are available for both.

Process

Methods of exporting a product or good or information include mail, hand

delivery, air shipping, shipping by vessel, uploading to an internet site, or
downloading from an internet site. Exports also include distribution of information
sent as email, an email attachment, fax or in a telephone conversation.

Barriers

Two barriers are government laws, regulations, policy, or practices that either
protect domestic products from foreign competition or artificially stimulate exports
of particular domestic products. While restrictive business practices sometimes
have a similar effect, they are not usually regarded as trade barriers. The most
common foreign trade barriers are government-imposed measures and policies that
restrict, prevent, or impede the international exchange of goods and services.

52
Advantages of exporting

 Exporting has two distinct advantages. First, it avoids the often substantial
cost of establishing manufacturing operations in the host country.

 Second, exporting may help a company achieve experience curve effects and
location economies.

Ownership advantages are the firm's specific assets, international experience, and
the ability to develop either low-cost or differentiated products within the contacts
of its value chain.

The locational advantages of a particular market are a combination of market

potential and investment risk. Internationalization advantages are the benefits of
retaining a core competence within the company and threading it though the value
chain rather than to license, outsource, or sell it.

In relation to the eclectic paradigm, companies that have low levels of ownership
advantages do not enter foreign markets. If the company and its products are
equipped with ownership advantage and internalization advantage, they enter
through low-risk modes such as exporting. Exporting requires significantly lower
level of investment than other modes of international expansion, such as FDI. The
lower risk of export typically results in a lower rate of return on sales than possible
though other modes of international business. In other words, the usual return on
export sales may not be tremendous, but neither is the risk. Exporting allows
managers to exercise operation control but does not provide them the option to
exercise as much marketing control. An exporter usually resides far from the end
consumer and often enlists variousintermediaries to manage marketing activities.
After two straight months of contraction, exports from India rose by 11.64% at
$25.83 billion in July 2013 against $23.14 billion in the same month of the
previous year.

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Disadvantages of exporting

Exporting has a number of drawbacks:

 Exporting from the firm's home base may not be appropriate if lower-cost
locations for manufacturing the product can be found abroad. It may be
preferable to manufacture where conditions are most favorable to value
creation, and to export to the rest of the world from that location.

 A second drawback to exporting is that high transport cost can make

exporting uneconomical, particularly for bulk products. One way to fix this,
is to manufacture bulk products regionally.

 Another drawback is that high tariff barriers can make exporting

uneconomical and very risky.

For small and medium enterprises (SMEs) with fewer than 250 employees, selling
goods and services to foreign markets can be more difficult than serving the
domestic market. The lack of knowledge of trade regulations, cultural differences,
different languages and foreign-exchange situations, as well as the strain of
resources and staff, interact like a block for exporting. Indeed, there are some
SMEs which are exporting, but nearly two-thirds of them sell to only one foreign
market.

Export motivations and perceptions

Motivational factors are "all those factors triggering the decision of the firm to
initiate and develop export activities". In the literature, export barriers are divided
into four large categories: motivational, informational, operational/resource-based,
and knowledge. In addition, export motivators are divided into five dimensions;
reactive, marketing, export, technological, external. Research shows that exporters
are more favorable to motivators than non-exporters.

Importer Exporter Code

Any bonafide person/ company starting a venture for International trade

of Export and Import. If any foreign transfer on account of business, IEC number
is mandatory.

54
IEC Code and Import Export Code number:

I have explained briefly about Import Export Code number under my article  -
How to set up an export import firm in India.  However, some of the readers need
more clarifications about IE code and here,  I have included their doubts about IEC
number explain below about Import Export Code number in detail. 

Code.number.Used.in.Export.Import.Business:
IEC Stands for importer exporter code which contains 10 digit number issued
by Director General of Foreign Trade, Department of Commerce, Government of
India.

Export/Import.Be.Made.without.Importer.Exporter.Code:
IEC forms a primary document for recognition by Govt. of India as Exporter
/ Importer.  However, if value of goods is very law, the concerned customs officer
may permit first export (only one time)   by imposing penal charges.

Benefits of Importer Exporter code

Import Export Code number is the primary proof of a firm as an

Exporter/Importer in India. IEC number can be submitted with government
authorities as a proof of exporter/importer to obtain various benefits on their
exports / imports from DGFT, customs, Export Promotion Council etc.

AD Code - Authorized Dealer Code - Registration With Customs:

Once you obtained IEC if you intend to do export or import, you need to
register your IEC and Authorized dealer code details with the port through which
you are exporting or importing. If you are going to export by sea, you need to
register with sea port customs and if by air, with airport customs also. You can
appoint a customs house agent to get the job done on behalf of you.

The Formalities for AD Code and IEC Registration with customs; Documents
For Registration:

Along with the Authorized AD code letter received from your bank though
which you are going to transact your foreign trade; you need to attach a copy of
IEC with a covering letter on your letter to be applied with customs officials. The
customs officials normally finish these formalities within an hour.

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The international chamber of commerce had an idea of forming international
commercial terms (Inco terms) in the year 1921 at first time globally for smooth
and uniform handling of international trade. However, the first set of international
commercial terms rules was published in 1936 followed by second publication in
1953. Additional expansions and amendments have been in 1967, 1976, 1980,
1990, 2000 and 2010. Currently 8th version of Inco terms is commonly used which
is Inco terms 2010 with effect from 1st January,2011.Ok, let us again come back to
CFR,C&F,CNF – which term is best to use. The C&F and CNF terms are modified
with CFR terms in Inco terms 2000. There is no further modification on CFR in
Inco terms 2010 which has been being followed by all domestic and international
traders.

Although C&F had been removed in Inco terms 2000, the term C&F has been
being used widely even after 13 years of revision of Inco terms. As I have
informed above, the term C&F or CFR is allowed to use wherever required,
subjected to the mutual sale contract between buyer and seller on mentioning
which Inco terms are applied in the contract. I personally suggest using CFR
instead of C&F or CNF terms of delivery, as CFR is the latest version of
publication of international commercial terms 2010.

Processes of Export Bills Clearance:

Step: 1

The clearance of exports bills are starts with receiving the documents from
the shipper relating to the concerned cargo, such documents are

1. Commercial Invoice

2. Packing List

These two documents that the shipper should provided to the CHA agent

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Commercial Invoice:

It is a document of contents, which has the full details about the cargos. The
invoice is the basic documents that the exporter should prepare. The invoice should
be based on the purchase order (PO). Generally the invoice has the details such as,

 Name & address of shipper and his business

 Invoice date and invoice number

 Country of origin of goods

 Country of final destination

 Consignee (buyer) name and address and his business

 Terms of delivery and payment

 Name of bank of shipper

 Purchase order number

 Mode of transport (by sea/ by flight)

 Port of loading and port of discharge

 Container number

 Nature of goods/cargo

 Color of goods (if have)

 Size/shape of goods

 Quantity of cargo

 Price of cargo

 Seal and signature of authorized person

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Packing list:

Packing list is also kind of document which contains the nature of goods
and its mode of packing, whether the cargo has packed in pallet or rolled or boxes,
etc. The packing list should be based on the commercial invoice. Generally the
packing list has the details such as,

 Shipper (exporter) name and address and his business

 Consignee name and address

 Invoice number and date

 Purchase order number (PO)

 Line code and style number

 Color of cargo (if have)

 Quantity of goods/cargo

 Total pieces

 Gross weight

 Net weight

Step: 2

After receiving all needed documents from the shipper, the next process is to get
the shipping bill number from the customs through filling the cargos details
(invoice, packing list) with (www.icegate.gov.in) it is authorized website which is
created by the customs for generating the shipping bill number (SB. NO). For
generate shipping bill number, RITC code number is very must to submit while
filing the cargos details.

RITC code number is the number which is allotted by the Ministry of

Commerce/Shipping with the Act of Foreign Trade Policy (FTP) to the each
exported products.

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(if wrongly select the RITC code that the export will be difficult Ex: the RITC
code no. for women babies garment (girl’s trousers) is 62092000 but if anyone
select RITC code as 62063000, that the particular bill will queried by the customs
officer because the RITC code 6203000 is relating to ladies blouse)

Shipping Bill Number:

Shipping bill number is allotted by the customs through electronic devices

to regulate and control the movements of the cargo (shipping bill no. is like code
number, if any one enter this number in customs website [www.icegate.gov.in] that
will show the full details about the goods and its current movements /activities
relating to the export). CHA agents should generating shipping bill number and
along with that, they should generate the checking list for customs formalities.

Step: 3

The next processes of export documentation department is to prepare all

needed documents which demanded by the customs for clearing the bills of cargo.
Those documents are attached with invoice and packing list, such documents are,

 Annexure C

 Check list

 Commercial invoice

 Packing list

 Purchase order (if needed)

 Form SDF

 Annexure 1

 Annexure A

Annexure C:

Annexure C is the document which is prepared by the CHA for customs

officers convenient, generally this document is prepared based on the check list.
Annexure C should be filed ICD/CFS sites only.

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The annexure C should contains the details such as, shipping bill number and date,
nature of cargo, total number of package, total number of containers, FOB value
(Free On Board), drawback value (DBK), gross weight & net weight, unit
measurement.

FOB (Free On Board):

The seller’s responsibility ends the moment the contracted goods are placed on
board the ship, free of cost to the buyer at a port of shipment named in the sales
contract. On board means that a ‘Received for shipment’ bill of lading is not
significant. Such B/L, if issued, must be converted into ‘shipped on board B/L’ by
using the stamp ‘shipped on Board’ and must bear signature of the carrier or his
authorized representative together with date on which the goods were ‘boarded’.

Check List:

Check list is generated while filing the cargos details with customs web site. Check
list is very important document to clear the bills of cargo from the customs (the
check list does not have shipping bill no., so the documentation staff or operation
staff has to write with date). A check list has the details such as, SB NO. & date,
invoice number, job number, CHA license number and name of CHA agent,
exporter name and address, importer name and address, purchase order number,
RITC code number for product, scheme code/drawback code and its percentage
with values as well as all invoice details.

Form SDF:

The form SDF is the declaration under the Foreign Exchange

Management Act, 1999. This document is prepared by the exporter for the
purposes of bank evidence (generally this document is prepared by CHA on behalf
of shipper). This document contains the details of shipping bill number and date,
exporter bank name, due date of payment along with signature of exporter and this
document is verified by the customs officer.

Annexure 1:

Annexure 1 is attached for drawback purpose which is declared by the

exporter along with his address, signature, shipping bill number and date.

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Annexure A:

Annexure A is used to assess the value of goods and it is submitted to the customs
officers for examination purpose, which contains the details of shipping bill no. &
date, invoice no. & date, nature of transaction (whether sale or gift or sample),
method of valuation, terms of payment and delivery.

Annexure 2:

Annexure 2 also same like annexure 1, but annexure 2 is used in scheme bill as per
scheme license.

Export Operation:

Step: 1

The export operation processes starts with receiving all the needed documents
from the Export Documentation Department/staff, that all the needed documents
are called as set of documents which is used to clear the cargos from the customs
(ICD/CFS).

 Annexure C

 Check list

 Commercial invoice

 Packing list

 Purchase order

 Form SDF

 Annexure 1

 Annexure A

 Annexure 2

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The above documents are called as set of documents

Finally the exporter will arrange the transport by road ways for the shipment
process.

Every Tuesday the garments will stuffed, loaded and sent to the Chennai port for
export

The goods will be transported through a container by roadways,

During the time shipment E way bill will be generated by the exporter of the
company

E way bill contains garments details and transport details

The exporters are the in charge of the garments on the time shipment if any loss
occurs on the time of shipment process

INCOTERMS (International Commercial Terms)

 FOB – Free on Board (named port of shipment) 

 CPT – Carriage Paid To (named place of destination) 

 CIP – Carriage and Insurance Paid to (named place of destination)

 DAT – Delivered At Terminal (named terminal at port or place of

destination)

 DAP – Delivered At Place (named place of destination)

 DDP – Delivered Duty Paid (named place of destination)

 CFR – Cost and Freight (named port of destination) 

 FCA – Free Carrier (named place of delivery)

62
 CHAPTER 6
SWOT ANALYSIS

63
INTRODUCTION

SWOT analysis is an analysis framework used to evaluate a company’s

competitive position and stands for strengths, weakness, opportunities and threats.
It is a tool that identifies the strengths, weakness, opportunities and threats of a
business

SWOT ANALYSIS

A huge number of non standardized fashion products, non harmonized sizes and
quality of production are a danger for gaining access to the global market. SWOT
analysis can be of a special importance in apparel manufacturing industry when
used for designing a new article of clothing, i.e. collection. This article has
presented a details discussion on SWOT analysis of apparel industry

INTRODUCTION OF STRENGHT

The Indian textile industry has several strengths. First is the availability of low cost
labour. Interviewee D says that, the nation has skilled manpower at very low prices
which in turn reduces the cost of production. Nine interviewees said that India has
availability of abundant raw material which helps to control the costs and reduces
the lead time. India is very rich in resources like jute, cotton, silk, cotton yarn man-
made fibre in the world. India also has large varieties of cotton fibres which make
is distinct from other countries. They further add that the Indian textile industry is a
self-reliant industry. It has complete value chain from the procurement of raw
materials to the production of finished goods.

Another strength which India possesses is flourishing domestic market. This allows
producers to mitigate risks and be competitive in the market. Interviewee A
believes that India is performing remarkably in the spinning sector. As a result the
export of cotton yarn to other countries is increasing enormously.

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STRENGHT OF FGM

 Continuous production.

 Continuous employee.

 Regular working.

 Systematic flow of work.

 Good Management.

INTRODUCTION OF WEAKNESS

Presently, the Indian textile industry is facing a problem to compete in the

world textile market. This is because of weaknesses like fragmented
infrastructure, rigid labour laws, technology obsolescence and many others.
Due to fragmented infrastructure, India is unable to diversify. In fabric
production large part of the industry is engaged in unorganized sectors like
power looms and handlooms. Many interviewees considered inflexible
labour laws of India to be the major reason for the low labour productivity.
Another drawback of the Indian textile industry is use of outdated
technology which resulted in low production capacities as compared to
China says interviewee K and L.

Interviewee H feels that Indian industry has the longest supply chain in the
world. The average time taken by all the nations from the procurement of
raw material to production of finished goods and finally exporting it is 45
days, whereas India takes around 80 days. Another area where India lacks is
cost competitiveness. The Indian industry does not have efficient economies
of scale therefore unable it is incapable of competing with China. Also the
expenses like indirect taxes, power and interests are comparatively high in
India.

65
WEAKNESS OF FGM

 Unstilted labors.

 Insufficient labors.

 Pressure work.

 Improvised working.

INTORDUCTION OF OPPORTUNITIES

The Indian textile industry has various opportunities like technical textiles, product
development and diversification, FDI and brand recognition. Technical textiles
offer the opportunity to the Indian textile industry to maintain the present current
growth and flourish in near future. It will also help in advancement of the industry.
India is not using technical textiles much.

Both nonwoven and woven technical textiles will thrive in India in coming years
adds Interviewee D. The Indian companies need to focus on product development
and diversification in order to capture new markets globally. They need to invest in
design centres and investment labs.

Specialized and smart fabrics should be introduced. Another opportunity for the
Indian textile industry is elimination of quotas. Interviewee C and H said that after
the removal quotas there is increase in the exports of textiles and clothing to the
United States and European Union but not as much as China. Five out of fifteen
interviewees said that the industry has also taken some steps to improve the brand
value of India

OPPORTUNITIES OF COMPANY

 Increase in customers.

 Expansion of the company.

 Increase in variety.

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INTRODUCTIONS OF THREATS

China is the biggest threat to the Indian textile industry in the global market says
interviewee L. India also has a threat from low cost producing countries like
Pakistan and Bangladesh which may hinder Indiana exports demand in the future.
Another disadvantage of India is its geographical distance from major global
markets of US, Europe and Japan in contrast to its rivals like Mexico, China etc.
which are comparatively nearer. Big geographical distance results in high shipping
expenses and lengthy lead-time. The removal of MFA quotas has given the
opportunity to all the countries to enter the textile sector. As a result many big
players are entering the textile sector (Equitymaster.com, 2006). The Indian textile
industry is not able to maintain balance between price and quality. Therefore most
of the big companies in the United States and the European Union are shifting their
manufacturing orders to China.

THREATS OF COMPANY

 Single buyer.

 Competition issues.

 Shipment issues.

 Supplier issues.

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 CHAPTER 7
OBSERVATION

68
OBSERVATION IN FIRST GARMENTS MANUFACTURING

 Each employee was given unique task no works are similar to each other

 Employees relationship with their higher official were smooth

 Each employees maintained good relationship with their department and

their line

 Hierarchy was well structured in the organization

 Sometimes conflict occurs between employee

69
CHAPTER 8
LEARNINGS

70
LEARNINGS FROM THE INTERNSHIP

1. The first thing I learned from this internship is the organization

structure

2. Gained knowledge in the field of logistics

3. Gained knowledge about export documentation

4. A clear map about export process (EXPORTER TO BUYER)

5. Observed how the documents are prepared and also prepared the
entire document for export

6. I Learnt, how to create invoice

7. I learnt, how to generate E Way bill

8. I learned how to make a purchase order

71
 CHAPTER 9
SCOPE OF TRAINING

SCOPE OF TRAINING

72
 The main scope of the training is to gain work experience.

 To analysis the organization structure.

 Observe what are all the operations and real time happenings.

 To gain knowledge in the field of logistics

 To seek experience in garments exports and imports

 To make documentations of our own

 To prepare the E Way bill

 Real time experience in manufacturing industry

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 CHAPTER 10
SUGGESTIONS

SUGGESTIONS

74
 The company shall provide separate room for scanning the garments

 The company shall increase number of buyer

 Avoiding double entry of invoice

 The company shall provides rewards to employee when they achieve their
day target

75
 CHAPTER 10
CONCULUSION

CONCULUSION

76
 It was a great experience to working in First Garments
manufacturing Industry. The positive environment in FGM has given me full
opportunities to learn and know myself as a worker. This experience brought out
my strength and also the areas I needed to make up. It added more confidence and
positive attitude in my career. The Primary objective of an internship is to gather
the real life working experience .

This Internship Program has helped me to gain practical knowledge and new form
of experience gave me an opportunity to learn new things. I was assigned to Export
Department in FGM which helped me to known about export documentation
process.

I am thanking First Garments Manufacturing for giving me this opportunity to

work as intern, and showing me the path of knowledge and experience. I hope this
will help me to succeed in my career and enter into a bright future.

BIBLIOGRAPHY

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www.textiles.indiabizclub.com

www.textilescomiittee.nic.in

www.textilesindia.com

https://www.indiamart.com/first-garments/

https://www.justdial.com › Yarn Manufacturers in Valayankulam

www.esuppliersindia.com/first-garments-manufacturing.../

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