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Impact of Export Promotion On Handicraft Products in C.L Gupta Exports LTD
Impact of Export Promotion On Handicraft Products in C.L Gupta Exports LTD
On
Submitted By:
Fahad Ali
MBA 3rd Semester
Roll No.:- 1870270001
Faculty Guide:
Mr. Priyank Gupta
Asst. Professor, MIT, Moradabad
Submitted to:
1
“IMPACT OF EXPORT PROMOTION ON HANDICRAFTS PRODUCTS IN C.L GUPTA EXPORTS
LTD AT MORADABAD”
By
Fahad Ali
MBA 3rd Semester
SUBMITTED TO
DR.A.P.J ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW(U.P)
Signature of student
MIT Department of Management
Certified By
Mr. Priyank Gupta
Project guide
Accepted by
Director /HOD
MIT Department of Management
2
CANDIDATE’S DECLARATION
I, Fahad Ali hereby declared that the project titled IMPACT OF EXPORT PROMOTION
ON HANDICRAFTS PRODUCTS IN C.L GUPTA EXPORTS LTD AT MORADABAD .
which is being submitted in partial fulfilment of the requirements for the awards of degree of
Master Of Business Administration, is an own record carried out by me under the supervi-
sion of . Mr. Priyank Gupta .The matter embodied in this project has not been submitted so
far for the award of any degree or diploma.
Fahad Ali
3
PREFACE
ment and to get familiar with the various activities in the organization.
I got an opportunity to undergo my summer training in the reputed organization C.L GUPTA
EXPORTS LTD AT MORADABAD I was allowed to work on the project title IMPACT OF
tunity to apply once academic knowledge in the field of substantiated by ones inactive and
lesion capabilities.
The basic purpose of this project is to present the subject matter in simple language and eas-
4
ACKNOWLEDGEMENT
I express my sincere gratitude and thankfulness towards Mr. Priyank Gupta (Project Guide)
I am grateful to all our friends for providing critical feedback & support whenever required.
There are times in such projects when the clock beats you time & again & you run out of en-
ergy, you just want to finish it once & forever. Parents made us endure such times with their
Moradabad
5
TABLE OF CONTENT
1 Introduction
4 Literature Review
5 Company Profile
6 Research Methodology
8 Suggestions
9 Limitations
10 Conclusion
Bibliography
6
CHAPTER 1
7
Introduction
Trade fair is one of the most important promotional tools in International marketing. It is a
place where different types of sellers and buyers gather together under one roof to trade
their products, ideas, and views. In the concept of globalization, no any nation can stand iso-
lated. INDIA was virtually separated from rest of the world before 1951. Its trade was totally
dependent with India because of diversified geographic conditions, longest border with India
and landlocked situation. In recent years the term globalisation hit the business and INDIA
also doesn‟t remain untouched with it. Now, it is seeking the real time participation for de-
velopments of its trade and economics with many countries. There are highly liberal trade
related policies supplemented by important Acts after 1990s. INDIA has a unique compara-
tive advantage on its handicraft products and hand knotted handicrafts productss because of
huge manpower and cheap labour force. INDIA does not have market power on manufactur-
ing final products but most of the products produced in INDIA are used as input product in
INDIAN industries. In recent years INDIA Handicrafts productss and Readymade Garments
are considerably increasing GDP in comparison to other sector apart from tourism. Consid-
ering the history of INDIA trade, its gradual development and liberalization in mind, this
study is conducted to analyze INDIA trade environment with its comparatively advantageous
industry like handicraft, its effort to expand trade relations with various countries by imple-
8
To enter in international market, international trade fair held in different countries helps as
a mediator between the national sellers and foreign buyers. It is said that about 2000 Trade
Fairs are held annually in different part of the world including more than 70 countries
(Shrestha, S.K., 2003:165). Trade fair is an important medium where different sellers gather
together for the sales and exposure of their product and from where buyers can get infor-
There are two perspectives in international trade shows in export promotion one is export
promotion at the macro level (industry level perspective). The other perspective is at the mi-
cro level that means the advantages and difficulties for an individual firm. Overseas, trade
shows play a larger role in the marketing process than they do in own nation. Trade fair
held in international arena can be generally divided into two types. Firstly, trade fair or
general fair where there is no restriction of sellers and buyers. Secondly, specialized fair or
exhibitions where only one type of products or one company exhibits their products. Special-
ized shows, organized to promote a single or related industry category to a particular audi-
ence, are known as "vertical shows". Attendance at these shows may be by invitation only or
upon production of business cards. Admission fees are generally higher. Trade fair can also
be categorized as order fair and cash & carry fair. In order fair, the order for the exhibited
products is made whereas in cash & carry the products are exhibited for the sales of the
product.
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When planning for a trade show, the most important decision a firm must make concerns
theobjectives of attending a show. Two sets of objectives are: selling and non-selling. Non-
selling objectives include identifying new prospects, servicing current customers, enhancing
corporate image and gathering competitive information. Selling objectives include introduc-
ing new products, selling at the show and new product testing.
Participation in international trade fair is not only to promote immediate sales at the exhibi-
tion but it helps new firms to introduce themselves in the international scenario and the firms
already in the market can increase their market share or introduce new products. For new
firms Non-selling objective might be better than immediate sales. For example, perspective
customers can lead by its technical information rather than transactional Information. For
export promotion it also helpful to introduce product with Non-selling Handicraft, craftwork
or simply craft, is a type of work where useful and decorative devices are made completely
by hand or using only simple tools. Usually the term is applied to traditional means of mak-
ing goods. The individual artisanship of the items is a paramount criterion; such items often
have cultural or religious significance. Items made by mass production or machines are not
handicrafts.Usually, what distinguishes the term handicraft from the frequently used catego-
ry arts and crafts is a matter of intent: handicraft items are intended to be used, worn, hav-
ing a purpose beyond simple decoration. Handicrafts aregenerally considered more tradi-
tional work, created as a necessary part of daily life, While arts and crafts implies more of a
10
No official definition of “Handicrafts" is found rather different people and different agencies
concerned with the promotion of handicraft consider it differently. The Export Prompotion
Council For INDIAN Handicrafts (EPCH)in its article 1.4 (i) has defined
"handicraft industry" as "an industry that manufactures a product reflecting the country's
tradition, art and culture, and/or uses labour intensive specialized skills, and/or uses
According to EPCH, INDIA handicrafts cover 42 groups of products out of which, metalcraft
(statue and utensil), Pashmina products, Paubha (Thanka), silver and gold jewellery,stone
carving, wood craft, bags and accessories, basketry products, filigree products, handmade
paper products, handloom products, ceramics, decorative items, leather products, horn and
bone products, macramé (knot crafts), religious goods, crazy/fancy hats, ethnic dolls, paint-
ings, giftware, ethnic costumes, hand knitwear, incense, natural buttons made of small tree
branch, stone, bone and horn, natural fibre products (apparel and non- apparel products
made of Hemp and Allo), puzzles and toys etc. are the major ones. Some raw materials for
such products are only available in INDIA forest, hill and mountain areas. So,to exploit its
comparative advantage on this sector INDIA producers started production commercially al-
so government reformed policy to seek greater share on the world marketplace. And, the
most important outcome of overall effort today is participation of INDIA handicrafts in in-
and pricing.
It is a place where products are demonstrated. Before entering into the market, new
products need to be demonstrated at first. So, trade fair is a perfect place for the
people around the world can know about the company in the fair.
12
CHAPTER 2
13
Objective of the Study
This study focuses on how Indian overseas trade of handicrafts is increasing through
14
CHAPTER 3
15
Scope & Importance
International trade fair helps the entrepreneurs of different countries come together.
Through this, the firms can recognize their competitors and their competitive advantages.
They can share their experiences and ideas with each other. For least develop country like
INDIA, it is more important as they can learn more about the business of the developed
countries. In today‟s competitive world each country has to be strong enough to compete
with other for economic development of the country. Export trade of the country determines
the economic development of the country. INDIA exports its limited products to very few
countries. It‟s major export partners are India, U.S.A., Germany, U.K., Italy, Canada,
France, Japan, Bangladesh, and Switzerland. Due to its limited exportable products, it is
hard for INDIA to be recognized in the international market. So, as to inform about its prod-
pated in international trade fair. By the study of INDIA handicraft products participation in
international trade fair, we can know about the situation of INDIA handicraft business in in-
ternational market. Researchers can do the market research for the INDIA handicraft prod-
ucts as well can explore the other exportable products. Also, government can get advantages
to know about the sector wise comparative advantage in international trade and can impose
16
CHAPTER 4
17
Literature Review
Conceptual Review
In this chapter, an attempt has been made to review the various relevant literatures to sup-
port the study to generate some idea for developing a research design. Literature review is
basically a process of searching the available literature in own field of research to review
and analyze them. The literature survey provides the researcher with the knowledge to the
status of their field of research. That helps the researcher to find out what research studies
have
been conducted in own chosen field of survey and what remains to be done. It provides the
foundation for developing a comprehensive theoretical framework from which hypothesis
can be developed for testing. Handicraft is a type of work where useful and decorative de-
vices are made completely by hand or using only simple handy tools. Items made by mass
production or machines are not handicrafts. What distinguishes the term handicraft from the
frequently used category arts and crafts is a matter of objective: handicraft items are intend-
ed to be used, worn, having a purpose beyond simple decoration (Wikipedia.org). The statute
of Export Promotion Council for Handicrafts (EPCH)
(i) has defined "handicraft industry" as "an industry that manufactures a product reflecting
the country's tradition, art and culture, and/or
uses labour intensive specialized skills, and/or uses indigenous raw material and/or re-
sources". Some major handicraft products produced in INDIA market are Bags & Accesso-
ries, Basketry Products, Ceramics, Christmas Decorations, Craft Paintings, Ethnic Gar-
ments, Hand Knitwear, Horn& Bone Products, Silver Jewellery, Wood carving etc.
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INDIAN Handicrafts,
which have been a part and parcel of the INDIA heritage, depict the great tradition and
proud culture of this nation. Their origin dates back to the Stone Age when human beings
were devoid of tools of any kind. INDIA handicraft products have been well known to the
World for its rich art, crafts and oriental architecture. The skill and techniques of making
handicraft products, which have been handed down from generation to generation,
not only represent the talent and skill of craftsmen but also reflect the social, religious and
cultural values found in different parts of the country. Being a labour intensive product, it is
difficult for one to produce it in large quantity with uniformity and with equal quality stand-
ard. In INDIA, the production of handicrafts is an ageold occupation. Novel handicrafts are
also developed in harmony with changing market taste.In the last 25 years, export of handi-
crafts of the country has considerably grown. Thus, the development of handicraft industry
helps to promote mass export organisable, preserve the national heritage of the country and
also it contributes to eliminating poverty by creating job opportunities. It also has being a
prime source of foreign currency earnings from last couple of years. Handicrafts are preva-
lent in almost all parts of INDIA but handicraft-related works have been adopted as a tradi-
tional occupation by the Trade community of the Delhi
According to DGFT, INDIA handicraft covers 42 groups of products out of which, metal
craft (statue and utensil), Pashmina products, Paubha (Thanka), silver and gold jewellery,
stone carving, wood craft, bags and accessories, basketry products, filigree products, hand-
made paper products, handloom products, ceramics, decorative items, leather products,
horn and bone products, macramé (knot crafts), religious goods, crazy/fancy hats, ethnic
dolls, paintings, giftware, ethnic costumes, hand knitwear, incense, natural buttons made of
small tree branch, stone, bone and horn, natural fibre products (apparel and non- apparel
19
products made of Hemp and Allo), puzzles and toys etc. are the major ones.
The export of INDIA handicrafts started from the mid of 1960's. However, the systematic ex-
port started only from early of 1970's. Handicrafts have being a major line of INDIA
exports, currently; it is the largest overseas export item of the country next to readymade
garments and handicrafts productss. More than 20 handicraft products mainly the Pashmina
products, woollen goods, silver jewellery, handmade paper and paper products, metal craft,
wood craft, cotton goods are being exporting more than 85 countries. USA (which alone ab-
sorbs around 25% of the total export of handicraft products), Britain, India, Canada, Ger-
many, Japan, Italy,France, Australia, Netherlands and China are its major foreign buyers.
The EPCH cumulated the scattered handicraft producers in one roof and has continuously
operating different program for their enhancement.
Trade Fairs, The trade fair is an important source of publicity in those markets where con-
ventional advertising is hard to apply or where an on-the-spot demonstration of equipment is
otherwise impracticable, an obvious example is, in a communist market or in an underdevel-
oped country where it may be relatively difficult for potential buyers or travel abroad. Trade
fair has become the popular means for communicating with the foreign consumers at the
same time one can find the new agent for the foreign market. “Trade fairs are shop windows
in which thousands of firm from many countries display their products and they are market
places in which buyers and seller meets. It offers exporters, who just being entered foreign
market, an excellent place to show what
they have for sale, to make contacts and to learn about a market quickly and easily. But they
can do this only when the exporters choose the right product and shows it at the right fair in
the right way” Originally, fairs were held in conjunction with religious festivals. Because of
the difficulties of travel, it was impossible for purchasers to acquire desired commodities
and for merchants
to renew their stocks continually. Fairs, therefore, gradually developed, taking place when
quantities of goods had been accumulated and where great numbers of potential purchasers
were present. By the 18th century, when the number of shops and markets had increased and
transportation and communication methods were improved, commercial fairs had lost their
importance. Fairs were, however, maintained, because trade could be concentrated in a sin-
gle
place, and market conditions could thus be gauged and prices fixed. The trade fair of the
20th century, were more in the nature of exhibitions. Various industries, such as the automo-
20
bile, broadcasting, office-equipment, and textile industries, continue to hold annual fairs to
display
their latest products and promote sales. A great part of such activity, moreover, was taken
over by the regional, national, or international exhibitions and
expositions .
One of the leading trade fair organizers in Germany “Messe Frankfurt said that,
“International trade fairs in Frankfurt means new products, trends, innovative technologies
and ground breaking concepts and ideas. Suppliers and prospective customers throughout
the world find optimum communication platforms here. Trade fairs in the consumer goods,
textiles, and technology are the core areas of exposure at Messe Frankfurt. The world's top
trade fairs in these areas take place, over 65% of exhibitors come from abroad and 30% of
trade visitors are from foreign countries” (Frankfurt, Messe Oct 2003: 14). International
trade
fairs are important to trade around the world. The organizations prefer to exhibit their
product in the fair because of the number of international visitors gather around likewise the
visitors prefer to go to fairs to buy or see different products around the world.
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Reasons for Going into Fairs
Participating in international trade fair is very advantageous. Many firms are regularly par-
ticipating in international trade fair. It is the place where one can stand to give information
about the product and the organization. According to International Trade
Centre, reasons for going to trade fair are as follows
To, find out a good agent to handle product in one or more foreign countries.
To, support the agent, if you already have one.
To, test out the market.
To, study the competition in your field. Looking at the products on display,
talking to exhibitors, collecting their sales literature and studying it will give you a
good idea of the market – prices, quality, packaging, etc.
To, make sales – direct sales to customers.
To, learn about sales and promotion methods.
(International Trade Centre publication, 2002)
Horizontal Fairs
International horizontal trade fairs are multi- product fairs of a general nature. The objec-
tive of participation in such fairs is to publicize the economic achievement of a country and
expand exports. They have attraction both for business firms and for household buyers.
22
Vertical Fairs
International vertical trade fairs are specialized transactional fairs devoted to a single
product or product group. Such fairs are also known as vertical solo fairs, e.g., the HANO-
VER Engineering fair, the COLONGE fair for international clothing machines, the MU-
NICH fair for cosmetics, the ANUGA food fair at Colonge, which are held annually in Ger-
many. Sometimes, the government of a country may organize a fair or an exhibition of its ex-
port products in a country where the market prospects are bright. An exporting organization,
too may organize a fair or an exhibition to exhibit its products (Saravanavel, P., 1988: 116).
International trade fairs have emerged as most effective tool for knowing consumer taste,
buyer‟s interest, and state of competition, smell the market trends and establish business
contacts. INDIA has been continuously manoeuvrings the participation in various interna-
tional
trade fairs since 1973. Exporters of handicraft products are continuously participating in
trade fair in Europe, USA, Japan, India and Australia. Even though the participation in in-
ternational trade fair is regular, effective and managed participation is lacking. Ignorance
23
and negligence are two major causes for failure in trade fairs. Realizing this, Export Promo-
tion Concil For Handicrafts (EPCH) has been conducting seminars relating to trade fair
participation. Such seminars are of immense important for helping the prospective exhibitors
to correct the situation beforehand. Some suggestions to be followed for effective
International trade fair participation:
Ulak, J. (2001) in the study said that bureaucratic hassles and delays in decision making
concerning the process of certification of origin, GSP and clearance from Department of Ar-
chaeology and customs have been very much time consuming and harassing. Numerous stud-
ies over the years have shown that exporters have been facing the problems of damage and
loss of goods while in the export process. Corrupt officials and harassment are also found to
be a big discouraging factor. The customs officials are not cooperative and harass the
exporters as if latter were exporting goods illegally and earning a lot from illegal means.
The report also found lack of coordination between Customs office, chamber of commerce
and EPCH. Prevailing procedure of duty drawback system and bonded ware house facilities
including bank guarantee release provision are cumbersome and time consuming (IN-
DIA,2005). This study recommended simplification of duty draw back procedures should be
25
started by settling old duty draw back cases as soon as possible. It is better to introduce the
duty suspension scheme i.e. make pass book system simple and predictable and provide it to
all export oriented industries. For example, government should develop a mechanism to in-
clude all producers through export houses to get refund or suspension of taxes not necessari-
ly only big exporters but small producers in the system who by virtue of being below thresh-
old are not registered in VAT and are not able to get refund at the moment.
These small producers are working in handicraft, patinas, and handicrafts products and
garment sectors.
"The handicrafts products industry and export to America" the news recommended that the
mass market in
north America can be tapped by producing Turkish designs add colours. Since the Turkey is
not able to meet market demand this is a relative safe approach it also apprises that INDIA
can produce this type of handicrafts products cheaper than Turks. Machine can easily copy
it and INDIAN handmade handicrafts productss cannot compete with machine made handi-
crafts productss. Even, INDIAN handmade handicrafts productss will be of much higher
quality and can be sold at higher price. It again suggests that an alternative route is to go
for the higher end handicrafts productss according to the American designers. The concept
is the same, as the program handicrafts productss country being sold in Germany but the na-
ture of the handicrafts productss must be changed.
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CHAPTER 5
27
COMPANY PROFILE
We are 50-year-old company, in Moradabad, a city 150 kms. From Delhi. Thus have a great
experience in this field. We have our own infra-structure of 800,000 sq.ft areas
with large number of veteran, professionals, technical staff & more than 1200 skilled labors,
the company combined with design, matrxing, machinery process & as semblance in one
continuous line. Our company follows the principle of honoring the contract, keeping the
best credit & first quality. C.L GUPTA EXPORT LTD is known as a reputed Export House
in India, specializing in various areas of product development. The company offering for
various products all sorts of Handicrafts items. Our items are with the latest trends of Inter-
C.L GUPTA EXPORT LTD is fully prepared to cover the continuing from Brass, E.P.N.S,
Wrought Iron, Copper, Aluminum, S.Steel, Wooden & Bone Handicrafts, specialize in Home
Kitchen Wares, Hotel Wares, Nautical, Costume Jewellery, Home Furnishings & Other
Household product
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Proud Members of:-
COMPANY DETAILS
CHAYDHARPURNUTTARPRADESHN244001
e-mail: inquiry@paramounthomecollections.com
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Infrastructure
Pottery Barn, Ikea, Target Stores, Crate & Barrel, Restoration Hardware, Cost Plus World
Market, Marks & Spencer, Becara Historical Collections, Schubert Varia, Pete Van Roon
etc.
OUR POLICIES
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Quality Policy:
Our Foremost Commitment is to satisfy our customers by providing quality products and on
time services that meet their requirements. It shall be our endeavor to achieve quality and
Service
Sustainablity
Home for staff
Go green
Eco friendly activities
Pallete planning
Competitiveness of product and company
Quality Objective:
Quality Policy & Objectives- Definition: The quality policy and objectives of the company
have been defined by the management in conformity with the corporate objective and chang-
ing customer need & expectation. The company personnel shall be made aware of the impli-
cation of quality policy through training to ensure that is understood & implemented:
31
C.L GUPTA EXPORT LTD is the manufacturer and exporter of Brass, Glass, Wood
and wax items. C.L GUPTA EXPORT LTD is the largest export industry in Morada-
bad city. It has the largest turnover among all the export industries in Moradabad
city. C.L GUPTA EXPORT LTD manufacture & export almost items of everything. It
manufactures different types of candle stand, house hold utensils, cook ware, bath-
C.L GUPTA EXPORT LTD also deals in Glass. It has a separate section of Glass. It
manufactures & export different kinds of Glass items. It also has a separate section
named Mosaic Glass section. In this section different items of Glass are manufac-
tured. Mosaic is called the small pieces of glass; these small pieces are fixed on dif-
ferent Glass items as per customer requirement. Company has a very wide range of
the products that are manufacturing in the company. Although the range of the
products of the company is not fix and it manufactures the products according to the
choice and the order of the customer. Some of the products of the company are-
Hurricane, Votive, Shefali Glass, Vorka Chimney, Vas, Angle Tea Light Holder,
The company can only got make the samples and show it to the buyer. If the buyer
likes the sample then he will give the order to the company to manufacture the rele-
vant product. So we can see that the products of the company are not fix, company
32
PRODUCT PROFILE
33
34
C.L GUPTA EXPORT LTD is an existing unit for manufacturers and export of Brass
wares, Brass art wares, Glass wares and Brass fittings on Crystal, Glass, Wooden art
Brass Art Wares, Wooden Furniture, Aluminum Wares, Crystal Glass Wares, kitchenware
Items: Figurines, Fire fashion, Tableware, Decorative, Clocks, Candle - stands, Wall
Birdbaths etc.
3. Glass: We have Continous Tank furnace with a capacity of 20 tones per day to
make mouth - blown glass, in crackle finish, frosted, seeded in clear & colored glass.
Items: Mostly combinations of Glass with Iron, Brass, Bronze or Silver plated bases
for Bowls, Bath Accessories, Candle holders, Lanterns, Pillar holders, Tumblers &
4. Iron: In house facility to manufacture Wrought & Cast Iron items with in - house
tank Phosphate (rust treatment), Spray Painting, Powder Coating and Hand applied
finishes.
35
Items: Indoor Accent furniture (CKD), Garden Furniture, Bases for Glass Vases &
Items: Colonial Dutch furniture, Neo - Classical furniture & Desk sets, Candle hold-
ers, Pillar holders, Lanterns, Photo - frames, Finials for Windows drapery rods, Photo
Handicrafts including handicraft products of copper, brass, bronze, bidri and bell
metal, wood carvings, artistic walking sticks, articles of horn, bone and corck shell,
costume jewellery, imitation jewellery, hand paintings, papier mache items and other
Brass, iron, steel, brassware, ironware, hardware, copper, rubber and resin.
All kinds of furniture and furniture items made from wood, brass, steel or any other
All type of glassware, leveled and unleveled silvered sheet, curved of flat laminated
and safety glass, toughened glass, fibre glass, welding glass, silver glass, colored
36
glass, float flat glass, lead mirror, gold mirror, decorative glass, ice – flowered glass,
Sports cups, medals and sports goods of every type and description.
E. P. N. S. and German silverware and cutlery and other engineering goods of every
To buy, sell, process, refine, covert and manufacture exportable goods of every de-
The turnover of the Company had been around 120 crores per year exporting mostly
all parts of the world. The production activities are carried out using most modern
equipments in all the divisions i.e. Glass, Brass, Wood and Iron. The Company works
within Complied norms as set by large International buyers with special cognigence
on Pollution Control System and Labour Laws etc. The jobs are carried out by a
professionally qualified team of Engineers, MBAs and CAs engaged in respective sec-
tions.
The objectives of the company would not have been possible with out the prompt
support of the Government and officials of controlling departments (like Central Ex-
37
MANUFACTURING PROCESS
WOODEN ARTWARES
Timber is purchased in the shape of longs. The logs are cut into logs of desire sizes in
the lowing section. These pieces are ponperty treated in a poncess treatment process. The
treated timber is sent to machine shop for suitable sizes / machined pieces. Thereafter
such pieces are taken in the fabrication section for conversion into required designs.
There fabricated pieces are sent to the finishing department for final finish. There af-
ter these final finished pieces are checked as per specifications and sent to are
checked as per specifications and sent to packing department where there are packed
for dispatches.
Monthly company use about 10,000 18000 curt of wood for monthly sale to the tune
38
WOOD DIVISION
LOG YARD
SAWING
TREATMENT PROCESS
SEASONINNG
MACHINING
FABRICATION
FINISHING
PACKING
DISPATCH
And
Figure-1
39
IRON ARTWARES
Square and round rods of different sizes purchased from the market. There are cut
into proper sizes and after conversion into the different designs they are sent for
phosphate for phosphating HCL, caustic soda, Phosphating chemicals can calcite
powders are mainly used. After Phosphating these pieces are sent to the electroplat-
ing powder coating department for finishing. The raw materials used are Nickel
Chloride, Nickel Sulphate, Nickel salt, --- , Boric Acid & Epoxy powders. As per re-
quirements. These finished items are suitably packed for export. The august Sale of such
40
IRON DIVISION FLOW CHART (For Iron Art wares)
41
IRON – PACKING Average sale per month 135 to 150 lacks
Glass tank furnace is a conventional melting furnace for glass articles like table-
ware‟s of different shapes & designs, bottles, tumblers etc. This is and Eng - Fired
which three are currently under operation. The meter is fired for melting and refin-
ing purpose whereas the distributors is for conditioning and refining purpose. The
working ways and the distributors are fired by Propane Gas for a better control of
Temperature.
The major ingredients like Quartz, Soda Ash, and Calcite etc. and the minor ingredients
like Potassium Nitrate, Sodium Sulphate etc. Are mixed in appropriate proportion in a
Pan – Type mixture. The mix and the broken glass (technically termed as cullet) re-
ceived from various inspection points and process rejection are put into the trolleys.
These trolleys are lifted to the Furnace Topper by a hoist and thus charged periodi-
cally with the help of a vibrator and a mechanical pusher into the furnace through
the dog house ( i.e. entry point ) to maintain a constant molten glass level inside the
furnace.
The melting at about 1450 – 1500 C is very complex set of reactions. As the tem-
42
water, Formation of loss of gaseous constituents, formation of liquid phases where all
major constituents are transferred into complex silicates. This molten form of glass is
refined in the distributors as stated above at 1250 - 1260 C and distributed to differ-
Mouth blowers collect the glass from the working bay by a pipe and then blow in
the mould to attain full size & shape of the article. While blowing with pipe precau-
tions are taken that the surface is uniform and polished. Moulds have a coating or
red lead & carbon to avoid metal contact. Some items are pressed machine. The
blown and pressed items are quickly transferred to a chamber called Annealign. Lehr
for removing the stresses and strains developed in these articles during the process.
This is called Annealing and the temperature is maintained at about 530 C ( fired by
H.S.D. ) in the Annealing zone. The exit of the Lehr is kept at ambient temperature.
The articles are inspected for physicals defects and then transferred to wire cutting
where the extra glass is cut off with the help of electrically heated filaments. The
edges are grounded in a grinding wheel itched if required before sending to the
packing department.
For colored glasses the raw materials and cullets are mixed in tray are charged into
the open pot and heated at a temperature of around 1400 C by Propane Gas. The
melting of this mixture takes about sixteen hours and then it is cooled to the work-
ing temperature which takes another two hours. The blowing process starts which is
43
similar to that of tank furnace products. Rest of the process is also following the
Average quantity per month as per annexure attached Average sale per month 170
to 200 lacks.
BRASS ARTWARES
Brass scrap, copper & link purchased from the fact are the major raw materials.
There Ingots are further melted in the small crucibles and pocered in the moulds by
the process of sand coating. These caste products are cleaned and machined with
various tools and machines and are smoothened. There are converted into proper
shapes and site and welding is done if required. There moulds are polished to re-
There pieces are painted / electroplated as per the requirement and sent to the pack-
ing department where after proper checking and cleaning these are suitably packed
for export.
PRESENT RESPONSIBILITIES:
44
Manager HR :- Singing I way compliance commitment, documents, Legal compliance,
Safety Officer :- Prepare & implementing the safety instructions / plan & provide
training, control on hazardous / non hazardous chemical storages & also ensuring the
use of PPE‟s / fire fighting system and equipment, evacuation plan / exit doors etc.
Astt. Manager ( Admn ) :- To Prepare & implementing the safety instructions / plan &
provide training, control on hazardous / non hazardous chemical storages & also en-
suring the use of PPE‟s / fire fighting system and equipment, evacuation plan / exit
doors etc.
To ensure salary / wages / OT / full & final settlements & other, benefits, house keep-
Security Officer: To ensure all security checking from main gate to factory internal,
gate security policies, goods checking & monitoring all the procedures as per ( TPA )
Welfare officers: Implementation of all welfare policies, canteen, labour laws, work-
ing, checking of fair wages, benefits paid, provident fund, Bonus and return of all
45
CHAPTER 6
46
Research Methodology
Research methodology is the process of arriving at the solution of the problem through
planned and systematic dealing with the collection, analysis and interpretation of facts and
figures. Research is a systematic method of finding right solutions for the problem whereas
research methodology refers to the various sequential steps to adopt by a researcher study-
ing a problem with certain objectives in view. In other words research methodology refers to
the various methods of practices applied by the researcher in the entire aspect of the study.
This chapter will cover the methodology used in this research. The selection of methodology
is based on the research problem and stated research questions. The main research question
developed in this paper is: “How international trade fair is helping to promote export of
INDIA handicraft products?” To tackle this research question, an inductive research pro-
cess is adopted to summarize data in general. Inductive approach is selected because the re-
search aims at a detailed description and analysis of the research question with the respec-
tive research area.
Research Design
Research design refers to the overall framework of the research. It is a plan, structure and
strategy of investigation. It is an arrangement of condition for collection and analysis of data
in a manner that aims to combine relevance to research process with economy in procedure.
It is also a plan, structure and strategy of investigation conceived so as to obtain answers to
research questions. The plan is the overall scheme or program of research (Kerlinger, 2000:
301). In other words research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity. There are
many ways to carry out research. Most types of research can be classified according to how
much the researcher knows about the problem before starting the investigation. There are
three classifications of research available when dealing with a research problem: explorato-
ry, descriptive, or explanatory.
47
Observation
The term observation may be loosely applied to any qualitative research project where the
purpose is to provide a detailed, in-depth description of everyday life and practice. Here in
this research I need to find out the transactions of export goods and revenue collected from
trading activities. I did case study of INDIA handicraft products, for that data are also taken
from published videos, individuals and news media regarding export and trade fairs. It is
difficult and very expensive to attend trade fairs around the world but fortunately I had got a
chance to observe South Asian trade fair 2010 held in NEW DELHI. Author has selected ma-
jor export firms from INDIA and did semi-concealed research as well. Semi-concealed re-
search relates to an increasingly popular „critical management studies‟ tradition and in-
volves researchers negotiating access into organisations with research agendas that they do
not always want to reveal to all of the respondents they meet, for fear of being presented
with an image of the company from a particular perspective
DATA COLLECTION
Secondary data: - The Secondary data are those data which have already being
collected by some one else and which have already been passed through the statistical
process ,I have taken the secondary data for this project report since the data is second-
b. Journal
c. Magazines
d. Websites
48
Chapter 7
49
Findings & Analysis of the Study
Major Findings
India is one of the important suppliers of handicrafts to the world market. The Indian handi-
crafts industry is highly labour intensive cottage based industry and decentralized, being
spread all over the country in rural and urban areas. Numerous artisans are engaged in
crafts work on part-time basis. The industry provides employment to over six million arti-
sans (including those in carpet trade), which include a large number of women and people
belonging to the weaker sections of the society.
In addition to the high potential for employment, the sector is economically important from
the point of low capital investment, high ratio of value addition, and high potential for export
and foreign exchange earnings for the country. The export earnings from Indian handicrafts
industry for the period 1998-99 amounted to US$ 1.2 billion.
50
from Kutch. Narsapur in Andhra Pradesh is famous for its Lace and Lace goods. But this is
only a small part of the total product range. India offers much more.
The craftsmen use different media to express their originality. The diversity of the handi-
crafts is expressed on textiles, metals – precious and semi-precious, wood, precious and
semi-precious stones, ceramic and glass.
Hand printed textiles including block and screen printing, batik, kalamkari (hand printing by
pen) and bandhani (tie and die) are used in products ranging from bed-covers to sheets,
dress material to upholstery and tapestry. The famous embroidered articles of silk and cot-
ton, often embellished with mirrors, shells, beads, and metallic pieces are also found in In-
dia. Embroidery is done too on leather, felt and velvet etc. This segment of the industry ac-
counts for almost half a million strong employment in addition to a large number of design-
Brass, copper, bronze, bell metal are used for a variety of wares and in a variety of finishes.
Scintillating ornaments are available in a wide range of patterns, styles and compositions.
Made from precious metals, base metals, precious and semi-precious stones; these orna-
ments have traditional as well as modern styles.
51
Woodwork:
Wooden articles in India range from the ornately carved to the absolutely simple. One can
find toys, furniture, decorative articles, etc. bearing the art and individuality of the crafts-
man. India is known particularly for its lacquered wood articles.
Stone Craft:
The intricately carved stoneware made of marble, alabaster or soapstone, etc., inlaid with
semiprecious stones carry on the heritage of Indian stone crafts.
Glass and Ceramic:
Glass and ceramic products are a fast upcoming segment in the handicrafts from India. The
age-old production process of mouth-blowing the glass instills a nostalgic feeling. The var-
ied shapes of ceramic and glass in a number of colours, would appeal to Western aesthetics
while retaining the Indian touch.
A wide range of handicrafts are produced all over Indian artmetalware / EPNS ware, wood
carvings and other wooden artwares, imitation jewellery, handprinted textiles, shawls as
artwares, embroidered goods, lace and lace goods, toys, dolls, crafts made of leather, lac-
querware, marble crafts etc. Although it is difficult to limit a specific place for the particular
craft, the following places are listed for their particular crafts.
Jodhpur (Raj.) : For Wooden, Wrought Iron and Sea Shell handi-
crafts
53
Hand Printed & Tex- : U.S.A., U.K. , Germany & Canada
tiles & Scarves
Zari & Zari goods : U.K. U.S.A., Japan & Saudi Arabia
U.S.A. U.K.
31% 11%
Switzerland
Others
1%
22%
Test marketing
54
Upgrading equipping facilities
Securing inputs
Physical distribution
In the changing world scenario, craft products exported to various countries form a part of
lifestyle products in international market. The impact is due to the changing consumer taste
and trends. In view of this it is high time that the Indian handicraft industry went into the
details of changing designs, patterns, product development, requisite change in production
facilities for a variety of materials, production techniques, related expertise to achieve a
leadership position in the fast growing competitiveness with other countries.
The 6 million craft persons who are the backbone of Indian Handicraft Industry as provided
with inherent skill, technique, traditional craftsmanship but that is quite sufficient for sec-
ondary platform. However, in changing world market these craft persons need an institu-
tional support, at their places i.e. craft pockets for value addition and for the edge with other
competitors like China, Korea, Thailand etc.
55
Countrywise Export of Handicrafts
1800
1642
1600
1440
1400
1139
1200
Rs. in Crores
954
1000 1997-98
800 1998-99
536 539
600
466 453
400
205 190 195
235 164 117 135
200 151 177 171 122
69 79 108 57 68
0
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an
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Ita
an
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la
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S
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Ja
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Ca
O
iA
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Au
it z
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G
ud
Sw
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Sa
With over 82 million inhabitants, Germany is the largest market for giftware and handicrafts
items in Europe. A member of and situated within the European Union, Germany is supplied
with giftware and handicrafts from Germany as well as the surrounding European countries
such as France, Italy, Switzerland and the United Kingdom and from all other parts of the
world: Russia, Latin America, Africa and Asia.
The size of the total German giftware and handicrafts market varies according to the defini-
tion of giftware and handicrafts. With its present size around DM 29.5 billion it corresponds
to a broad definition of giftware and handicrafts that includes the following items: home fur-
56
nishings, artmetalware, table accessories, Christmas decoration, woodware and furniture,
books, discs/videos, watches/jewellery, certain apparel/textile items and others. The German
giftware and handicrafts market grew from DM 29.1 billion in 1998 to DM 29.5 billion in
The substantial supply of giftware and handicrafts has transformed the German giftware and
handicrafts market into a fiercely price-competitive market place. Nevertheless, innovative
and new to market giftware and handicrafts items place still have good market prospects. It
is essential for the German giftware and handicrafts marketers to find new products to stay
competitive. Although German consumers may be willing to pay a high price for exclusive
items they are very price conscious and want value for money. Among traditional gift items,
candles, festive items, including Christmas decoration, exclusive gift boxes and gift-wrap,
ribbons, nostalgic calendars and all types of scented items have best prospects. The German
market shows a strong demand for low-priced candles. Thus imports from Poland and Chi-
na have increased substantially. The average growth for the overall giftware and handi-
crafts is estimated at 1-2 percent over 1999-2000.
Competitive Situation
German giftware and handicrafts consumption is growing more or less in line with the rela-
tively slow growth rate of income during the last years. Thus, expectations for additional
growth are not very high. Annual growth rates of between 1.5-2 percent are forecast for the
next few years for the overall giftware and handicrafts market. In general the market shows
good business opportunities if prices and quality are competitive and delivery schedules are
fulfilled.
Apart from its own producers, Germany is supplied by giftware and handicrafts from nearly
all of the European countries. German firms often import specific product groups from a
particular country. Major suppliers of pottery are, for example, Spain and Portugal; fine
57
exclusive stationery comes from Italy, France and Switzerland; candles from Poland, China
and Portugal; dried flowers from the Netherlands etc.
Fierce price competition in Germany is intensified by the increasing quantity of Chinese and
Asian made products on the market. For India this situation coupled with the relatively
strong Indian rupee which means that firms proving to be most successful in the recent past
have offered niche market giftware and handicrafts, i.e., exclusive to Indian handicrafts
items or new-to-market products.
Seasonal: Market insiders estimate the total volume of the seasonal items market, including
Christmas, Easter, Valentines Day and the German counterpart of Thanksgiving, at DM 7.7
billion. In 1997, about DM 3 billion were spent alone for Christmas decoration, Christmas
floristic items and Christmas trees only. Christmas items are usually imported from China,
Taiwan, Thailand, Philippines and India. However, Indian Christmas decorations as candle
stands or Christmas tree hangings and soft toys find a ready market in Germany if they are
moderately priced.
58
Hobby and art supplies: The present market volume of hobby and art supplies in Germany is
estimated at about DM 3 billion, while the total European market should amount to DM 12
billion. Insiders believe that this specific market segment still offers some potential for new
products. A recent survey shows that apart from their school days, most of the Germans who
do regular DIY or hobby work are between 60 and 69 years (10.8 percent of the German
adults) old. With the fast ageing of the German population a stronger demand for hobby and
crafts is likely.
Incentive items: From 1992 to 1998, the total German market for incentives increased from
nearly DM 3 billion to DM 6 billion.
Toys: In 1998, annual sales of licensing products amounted to about US$ 4.2 billion in Ger-
many. Also in 1998, the toys market volume expanded to DM 6 billion. Total annual sales
for computer games and learning games alone, increased to DM 2 billion in 1998 compared
to the pre-year level of DM 1.7 billion.
Market Access
EU member states and Asian countries, China and India in particular, are major suppliers
of giftware and handicrafts to the German market. Indian firms making a first approach to
the German market are advised to have comprehensive product literature and data sheets
professionally translated into German. Although English is widely understood, a well-
prepared translation gives an important marketing edge, particularly in the initial presenta-
tion. Indian firms should preferably appoint an agent or distributor who can maintain a
stock sufficient to answer short-notice orders.
Customs Duties
Customs duties vary according to material and product. Though duties are high for a few
items, i.e., dried flowers, potpourri (16.7-20 percent), T-shirts (12.0-13.2) and hand- woven,
woollen blankets (13.4 percent), the majority of customs duty rates falls in the range of 5-8
percent. For example:
Customs Duties (in percent)
In addition, there is a 16 percent sales tax, which is eventually passed on to the consumer in
form of the value-added tax (VAT). But the VAT has to be paid when entering the German
market by the exporter/German importer.
Items that originate from certain animal species, i.e., snakeskin or hides of some animal, it
must be ensured that the export of these products complies with the Convention on Endan-
gered Species (CITES). Regarding sample orders, exporters should be aware that one sam-
ple with a maximum value of DM 50 each or, five identical samples of one product group not
exceeding a total value of DM 50, are usually customs free.
Product Standards
In view of the wide field of products that could be considered as giftware and handicrafts, it
is difficult to name standards. Compliance with EU standards and regulations is strongly
suggested. There are, however, only few product groups in the giftware and handicrafts
field that have to follow standards. It is essential that CE-labelling be observed where re-
quired. The CE-mark (including conformity statement and technical documentation) is
mainly required for toys (88/378/EEC standard). While the quality regulations for candles
are obligatory assuring a certain level of quality, the toy regulation and the electronic
standards have to be observed because of safety considerations:
Wholesalers
Importers/distributors
Commission agents/sales representatives
60
Department stores
Mail-order
Internet sales
Tele-shopping
Wholesalers:
Besides offering wide range of goods to retailers for direct sales, this channel also supplies
large quantities of individual articles. They are very particular in maintaining consistency
in the kind of products and their quality. One of the distinguishing features of wholesalers is
to provide distribution and storage facilities. Specialised wholesalers deal in sales to retail-
ers as well as to final consumers. They maintain high quality standards and but have a nar-
rower and in-depth range of arts and crafts.
Importers/distributors:
Most Indian giftware and handicrafts companies use importers/distributors to market and
sell their giftware and handicrafts lines. They buy and sell on their own account. Thus, the
companies take advantage of the distributor's expertise, his sales force and his existing dis-
tribution channels. Distributors call on giftware and handicrafts retailers, purchasing
groups and supermarkets. The distributors' mark-up varies depending on the giftware and
handicrafts item, but at least 50 percent. While the mark-ups vary according to the distribu-
tor; they usually also depend on the exclusivity of a product and on its competitiveness in the
overall giftware and handicrafts market.
Germany hosts more than 45,000 giftware and handicrafts retailers. Several retailers import
directly from the United States and sell to the German customer. Usually these are small
companies looking for items new to the market and handling small orders only.
Commission agents:
Commission agents provide Indian companies with direct access to the German market and
direct control. Independent commercial agents are normally working on a 15 percent com-
mission and operate on a regional basis. They concentrate on specialist retailers, purchas-
61
ing groups and department stores. Commission agent contracts are based on stringent EU
and German regulations. An Indian firm wishing to appoint an agent should make sure that
such standard contracts meet its expectations. In order to facilitate market entry efforts by
the agents their initial commission is often a few percent higher than the "usual" commis-
sion. These additional payments are to reimburse the agent for substantial advertising and
any special efforts facilitating the new product's market entry.
Department Stores:
Indian companies interested in establishing business contacts with major department stores,
mail-order houses and retailers may also choose the direct approach. Department stores in
particular, prefer to deal directly with manufacturers. Their buyers are very specialized and
only handle a limited range of products. At some occasions department stores also buy
through independent commercial agents. Quite often they have their own buyers as well as a
few agents that usually work with them and who know their assortments. If a department
store decides to import a particular giftware and handicrafts item, it places bulk rather than
small orders.
Mail Order:
On an average, each German consumer buys products totaling to DM 500 each year from
mail-order houses. There are about 200 mail order companies in Germany. In Europe,
Germany is the largest mail order market, followed by Great Britain and France. The total
European market volume for mail order products is estimated at approximately DM 90 bil-
lion. Of the 20 major mail order companies in Europe, 12 have their headquarters located in
Germany. Among them are the world's largest mail order companies: Otto Versand in
Hamburg and Quelle Schickedanz AG & Co. in Fuerth. In addition, several German mail
order companies operate in other European countries, as well.
Internet Sales:
Germany will become market leader among the EU countries with regard to sales over the
Internet by the year 2000. It is anticipated that by then German electronic sales, which are
estimated to reach a volume of DM 500 billion worldwide in 2000, become second in the
worldwide ranking after the United States and before Japan. A typical German Internet user
and a major German mail-order publication is between 20-39 years old, is highly educated
and earns more money than the average German consumer. This age group consists of
about 4.5 million Germans. Seventy percent of these consumers are male. Already today, the
Internet is a major sales channel for German mail-order houses.
62
Teleshopping:
QVC and HOT are the two tele-shopping channels in Germany. They operate all over Ger-
many and offer various types of giftware and handicrafts; jewellery, fashion, health, beauty;
household consumer goods; collectibles and home accessories.
B irthday
37%
Others
17% Christmas
17%
Thank Yo u
Visit to
4% Easter No Special
friends/family
6% Occasio n
10%
9%
63
Strengths
64
SWOT Analysis of the Indian handicrafts industry
Statistical Analysis
Basically descriptive research is followed but sometimes simple statistical tools such as per-
centage,
percentage change, ratio and correlation have been used for analysis of data. A percentage
is the
number of hundredth parts one number is another. This is the simple statistical device used
in the
interpretation of phenomenon. Percentage is equals to value obtain in a particular things di-
vided by
total value and multiplied by hundred.
Percentage = x/ X * 100
Where,
x = small unit of total production, X = total production
Ratio is the quantitative relation between any two variable. Two variables are necessary for
the ratio.
Suppose X and Y are any two variables then ratio relation between these two variables is:
Ratio = X / Y
Research is presented in descriptive and tabular form for as per requirement and clear in-
terpretation
on it. To make report simple and easily understandable chart, diagram and graph have been
used. Statistical analysis deals in generalizing the data from sample data to the entire popu-
lation.
Here, statistical tools like the Mean, and the correlation has been used to find out the aver-
age export of the firms to the total export of the country while participating in the interna-
tional trade fair and the correlation between number of participation and the firm‟s export.
Mean(X) X = Where X = Number of participation of the firm in international trade fairs.
Mean (Y) Y = here Y = Export volume of the firm in currency.
n = Number of exporte
The Correlation ( rXY) = _ ____ __ .__
_____(__)_ _____(__)_
Here, r lies between -1 and +1.
Alrso, Least square linier equation
y = a + bx has been used to find to the export trend of handicraft in relation with consecutive
years. Yc has been calculated that stands the Computed value of Export or Trend Value
65
Analysis of the Study
USA, Japan, India and Australia. The study is done basically on INDIA handicraft products
participation in international trade fairs regarding the number of participation, the products
exhibited in international trade fair, and the impact of trade fair related to the INDIA prod-
ucts. Findings obtained from the above study can be discussed as follows
:
INDIA has been participating in international trade fair since 1968. After the estab-
lishment of EPCH and EPCH the number of participation increases and till date more
and more firms are repeatedly participating in international trade fair every year di-
rectly and through the government and other agencies.
Most of the products exhibited in international trade fair are handicraft products.
Handicraft is the major export item of INDIA. It accounts around 15% - 20% of total
export of the country.
Effective and problem free participation in international trade fair is important rather
than mere representation in the international arena. Even though INDIA‟s participa-
tion in international trade fair is encouraging despite global recession, the exhibitors
have to face different problems regarding the fair, support, and the selection proce-
dure. Non-availability of proper information about the fair and the strategic location
in the fair, inadequate government support, cooperation, market intelligence, mode of
payment for export regarding consignment and document against payment, inconven-
ient and long process of selection are some problems that the INDIA exhibitors had to
face while participating in international trade fair.
From the study it is known that the firms first prefer direct participation in interna-
tional trade fair. Participation through Trade and Export Promotion Centre (or gov-
ernment initiations) is also preferred by the exhibitors.
66
CHAPTER 8
67
Suggestions
INDIA‟s participation, so far, in international trade fair has been very encouraging. It is be-
lieved that participation in international trade fair has helped the exhibitors to introduce
their products in international market facilitating the spot sales and business order. More
and
more participation in international trade fair will help in promoting INDIA‟s external trade.
INDIA‟s meaningful participation in international trade fair is lacking because of many
problems arising including the fair, support and selection process. Suggestions made by
exhibitors to the government of INDIA and EPCH can be listed as follows:
To the Government
information centre.
The cooperation of the agencies like INDIA Rastra Bank, Department of Customs,
Ministry of Foreign Affairs and embassies abroad should be strong for successful
68
Chapter 9
69
Limitations
INDIA is a least developed country and the regulations of government regarding tax and
other social considerations are not so strong. Firms are not abiding the rules and regula-
tions impose
by authorities. Lack of infrastructure, communications and experts, authorities are also not
able to supervise them. So firms may use child labour, low wages and cheap raw materials
and also cheating on tax is common practice in most of the business. To be safe from their
unethical works they don‟t allow stranger to do such kind of research works. If permitted
then They try to hide factual data and contemporary issues. On the other hand there should
be a certain trade secrete to produce quality product. If we generalise the formula then other
firms may copy it so, they don‟t willing to reveal it overtly. In other aspect in this subject
matter, research methodology depended on the size, objective, importance, availability of
data, and time frame of the research project. So, the limitation of methodology is found as
follows:
The secondary data available in different sources may be hypothetical on certain cir-
cumstances.
Data of recent years provided by EPCH and DGFT are not revised and based on
9months provisional data.
The secondary data depends upon the attitude of the respondent so, the data provided
by the respondent may not be correct.
So, the result may not be absolute by ignoring to those firms which reside out of
Valley data to submit annual report but in this research I have collected the data from
market, entrepreneurs, users, agencies and officials. After that I have checked whether
it is similar with outcomes from all sources or not and summarised with findings.
70
Chapter 10
71
Conclusion
As international trade fair is the good medium of direct interaction with international buyers
and personal contracts with clients within the short span of a few days. It maintains the im-
age and goodwill of the company and also strength the existing trade relation. It is a place
where new customers are attracted which increases public relation. The advantages that
INDIA is having after participating in international trade fair are making new customers,
order placement, and increase in export. Participation in international trade fair has helped
the exporters to introduce their products in international market with facility for spot sales
and business order. Government of INDIA and other related associations should be very
supportive from the beginning to the end of the trade fair participation by decreasing official
hassles and by following convenient selection
process. In conclusion it can be said that the effective, meaningful and problem free partici-
pation in international trade fair is important rather than only representation in the world
market. Despite many hindrances INDIA‟s participation in international trade fair is en-
couraging, the exhibitors have to face different problems regarding the fair, support, and the
selection procedure. No availability of proper information about the fair and the strategic
location in the fair, inadequate government support, cooperation, market intelligence, mode
of payment and document against payment, inconvenient and long process of selection are
some problems that the INDIA exhibitors have to face while participating in international
trade fair. Every nation in the world is facing global recession and their export volume is de-
teriorating. Even some renounced institutions had faced bankruptcy during last two years.
In such a financial hardship and no business situation INDIA handicraft exporter keep
standing their position and maintained the overall country‟s export.
From the study of INDIA handicraft products participation in international trade fair, it can
be said that the participation in international trade fair is overall encouraging though man-
aged and effective participation is lacking. INDIA is continuously participating in those fairs
since 1968. After 30 years of participation the firms are not getting the advantages that are
supposed to get from the participation in international trade fair. So, to make the participa-
tion
more effective government and other concerned associations should do the best to support
the firm by providing timely information about the fair to the firms. As well as government
should sponsor more firms to participate in international trade fairs.
72
Some major conclusions can be listed as follows:
As INDIA has been participating in international trade fair since 1968. Till date more
and more firms are repeatedly participating in international trade fair. The study
shows that the correlation between the export and the times of participation is +0.44.
So, the participation should be encouraged by government by helping.
.
Similarly linear equation y = a + bx showed that there is a positive trend in export
promotion due to participation in trade fairs among 7 trade fair countries. While the
total export of handicraft products is deteriorating since 2006/07 but the export to the
countries is satisfactory and steadily increasing.
Most of the products exhibited in international trade fair are handicraft products.
Handicraft export accounts around 15% - 20% of total export of the country. To sus-
tain in international market, the products should be of good quality and it should
change according to the needs and wants of the buyers. So, there should be some
standard maintained by Handicrafts Association of INDIA and the government for the
exhibited products.
From the study it is known that the firms prefer direct participation in interna-
tionalCtrade fair rather than through government as it requires a long process.
ThroughCgovernment participation, first of all EPCH circulates the information about
the fair toCEPCH and FNCCI. Then, EPCH selects and recommends firms for trade
fairCparticipation from among its members and FNCCI again select the firms. Finally
TPCCconfirms the participating and forwards the application form to organizer. Most
of theCproducers feel the process quite long. So, the government should think of ap
plying theCshort and effective process for participation.
International trade fair is a place for spot sales and order placement. It has helped
theCexhibitors to expand their business around the world. In today‟s competitive mar-
ketCone has to be strong enough to compete with the others. For this, the support
ofCgovernment and other associations are needed, but above all the product exhibited
inCthe fair should be competitive enough. It should be of a good quality and should
meetCthe needs of the customers. So, firms participating in international trade fair
shouldCalso be responsible towards international trade fair participation.
73
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