Summer Training Project

OnCRM Practices And Problems Faced By Textile Exporters

Case Study on Knitwear Exporters of LudhianaUnder Guidance Of presented by:Mr. Gautam Bansal Karan deep kaur(Deputy Dean 94972238279Management Block)

◦ Knitwear industry in India is a century old. Originated in Calcutta.

◦ The two main areas of the knitting industry are as follows:One area produces knitted goods for apparel manufacturers, for sewing centers, for consumers and others.The other area manufactures completed garments like sweaters, hosiery etc.

◦ The knitting industry in India is concentrated in Tirupur (Tamilnadu) and Ludhiana(Punjab). Tirupur produces 60 percent of India's total knitwear exports.

◦ Knitted garments account for almost 32 percent of all exported garments from India.

Important Knitwear Centers:

 1. Ludhiana in Punjab for woollen and synthetic knitwear.

 2. Tirupur in Tamil Nadu for cotton knitwear.

 3. Delhi (Gurgaon & Noida included) for synthetic knitwear.

4. Bangalore for cotton and synthetic knitwear.

 

5. Mumbai for cotton and synthetic knitwear. 

The origin of knitwear industry in Ludhiana may be traced back to 1902.

Market for Ludhiana hosiery products is comprised of basically three segments as under: -

i. Domestic market.

ii. Defense forces and allied government purchases.

iii. Global market of exports

The most important destination for exports from Ludhiana were erstwhile USSR and other countries, Middle East followed by European countries and USA

A company originally formed for export of high quality fabrics and high fashion garments.

An integrated garments manufacturing unit which is having knitting, dyeing, finishing, stitching facilities under one roof and equipped with ultra modern and advanced technology or machinery from Germany, Italy, Japan, and Taiwan.

ISO 9001:2008 Certification

Star Export House

At Present company is working with United (Germany) , Cosmotex (Germany), Argee America (U S A ), Av Trading(UAE), Give And Take(UAE) Hat (Saudi Arabia) Planet Sports (India For International Brands Like Puma ,Converse, 

Speedo And Spalding) , Koutons( Indian Retail Chain).  

MISSIONMISSION

The company’s spirit of enterprise and dedication to quality symbolize their corporate culture where commitment leads to achievements.

The mission of the company is of continual improvement and sustained growth and of a family of workers who are given the best

benefits andworkingenvironment. 

VISIONVISION

Improving market reach out, particularly in the export markets through better networking.

This would be required to be clubbed with skilling of labor through

industry matched linkages with local institutions to induce quality production and cost efficiencies through better inventory control.

PRODUCT RANGEPRODUCT RANGE T-Shirts

POLO Shirt

Sweat shirt

Track suits

KID’S wear

Ladies top with hand & Crohet embroidery

Strengths Good technological base High quality standards at affordable price Company’s culture and philosophy Commitment for growth

Weaknesses Lesser degree of professionalism. Small size companies lack economies of scale. Low investment in research and development.

Opportunities Market is expanding day by day, so the opportunity is there to expand the

business. Removal of international trade barriers.

Threats Introduction of better products by rivals/ competitors. Less prices charged by the competitors. Marketing will be the most problematic area where improvements are called

for. Continuous quality improvement will be the need of the hour.

FINANCIAL ANALYSISFINANCIAL ANALYSIS

Liquidity Ratios:

Current Ratio:

Particulars 2006-07 2007-08 2008-09

Current Assets

44,328,351.24 44,448,435.33 45,597,596.15

Current Liabilities

16,294,972 15,382,087.15 3,808,070.47

Current Ratio2.72 2.89 11.97

Quick Ratio:

Particulars 2006-07 2007-08 2008-09

Quick Assets 31,788,097.24 33,470,276.33 35,261,196.15

Current

Liabilities 16,294,972 15,382,087.15 3,808,070.47

Quick Ratio 1.95 2.18 9.25

Absolute Liquid Ratio:

Particulars 2006-07 2007-08 2008-09

Absolute Liquid

Assets7,969,963.24 6,245,686.03 4,809,477.19

Current

Liabilities16,294,972 15,382,087.15 3,808,070.47

Absolute liquid

Ratio0.49 0.40 1.26

Operating Ratios:

Debtor Turnover Ratio:

Particulars 2006-07 2007-08 2008-09

Sales 174,251,543 180,560,549 218,046,890

Average Debtors 19,049,424 22,565,289 25,035,563

Debtor Turnover

Ratio

(in times)

9.15 8 8.70

Creditor Turnover Ratio:

Particulars 2006-07 2007-08 2008-09

Purchases 148,358,163 144,390,396 168,293,379

Average

Creditors 12,679,319 11,623,557 14,781,934

Creditor

Turnover Ratio

(in times)

11.70 12.42 11.39

Profitability Ratios:

Gross Profit Ratio:

Particulars 2006-07 2007-08 2008-09

Gross Profit 21,023,265 20,791,850 27,225,412

Sales 174,251,543 180,560,549 218,046,890

Gross Profit

Ratio (%)

12.06 11.52 12.49

Net Profit Ratio:

Particulars 2006-07 2007-08 2008-09

Net Profit1,736,522

3,555,265 3,919,854

Sales174,251,543

218,046,890 180,560,549

Net Profit Ratio

(%)

0.1 1.80

1.96

Operating Ratio:

Particulars 2006-07 2007-08 2008-09

Operating Cost 156,713,935 163,284,112 201,251,499

Sales 174,251,543 180,560,549 218,046,890

Operating Ratio

(%) 90 90.43 92.3

Trend of Turnover/ Sales

Trend of Net Profit

INTRODUCTION TO PROJECTINTRODUCTION TO PROJECT

TITLETITLE

CRM Practices

and

Problems faced by Textile exporters.

Case Study of Knitwear exporters of Ludhiana

Objectives of the StudyObjectives of the Study

To study various practices followed by exporters to retain their customers.

To know the various factors affecting the business of knitwear exporters in Ludhiana.

To study the problems faced by the knitwear exporters in Ludhiana.

Research design: The exploratory research design and descriptive research design

Data Collection Primary Data

Using Questionnaires

Secondary Data

From Internet,Newspapers

Sampling Design:

Universe: All Textile Exporters Population: All textile exporters in Ludhiana Sampling Unit: Any knitwear exporter of Ludhiana Sampling Technique:

Convenience Sampling Sample size: 25

4.1Knitwear Product exported

4.2Annual Production in terms of Sales

4.3Major Problems of Industry

4.4Satisfaction level of Quality of infrastructure

Mean=-0.84

-2 -1 0 1 2 |____________|____________|____________|____________|Highly Dissatisfied Neutral Satisfied Highly Dissatisfied Satisfied

4.5Physical infrastructure that requires improvement

4.6Satisfied with government policies

Mean=-1.04

-2 -1 0 1 2 |____________|____________|____________|____________|Highly Dissatisfied Neutral Satisfied Highly Dissatisfied Satisfied

4.7Subsidies expected from government

1.To control frequent fluctuations in prices of raw materials

2.To improve the infrastructure

3.To reduce Export Duties and to provide more incentives

4.8Problems in Procuring Raw Materials

4.9Problems in getting payments from importers

4.10Export Promotional Measures followed

4.11Type of Export Promotional Measures being Followed

4.12Export Promotion Budget

4.13Branding of Export Products

4.14Export Production share out of Total Production

4.15Export Performance in terms of sales

4.16Government Policies affecting the business

4.16Impact of Problems in Maintaining Customer Relationship

4.18If CRM strategies followed

4.19Strategies followed

1.ERP used

2.Training of Employees to understand customer demands

3.Maintaining database and analyzing it regularly

◦ The most of the exporters in sample size do not follow any of the CRM Practices which are very necessary to retain and maintain good and long lasting relationship with the customers.

◦ The exporters face many problems in their daily business which they feel to some extent even affect in maintaining their customers.

◦ That the hardest thing to start international business was related to the export formalities and arranging for finance and the rigid government policies and laws.

◦ That most of the exporters have to search for international markets by visiting their personally that they do not have advance technology for their promotions.

◦ The government that should provide the major aid to the exporters is the biggest hurdle or the factor affecting their business.

◦ Poor infrastructure of the city especially the power cuts and no airport facilities are the other major problems.

◦ Shortage of labor and rigid labor laws are also affecting the business.

Export formalities should be made simple and exporters should be made aware of the procedures and provided assistance by the government.

Government shall also work on improving the image of brand India by ensuring quality of manufactured goods and also make manufacturers aware of different quality standards followed by various countries.

Facilitating organizations should step forward to guide and help exporters.

Internet as channel for internationalization should be promoted.

Online databases need to be marketed and international companies must be made aware of there use.

The documentation process, which has been found cumbersome by many exporters, should be simplified so as to reduce the time, though the government has tried to initiate this with the aligned documentation system (ADS). The process still needs further simplification so as to reduce unnecessary paper work.

The excise and custom authorities should be made more effective and efficient.

More R&D and infrastructural facilities should be developed.

The government should provide easy credit facilities to exporters at reasonable rates of interest. The interest rates in most of the developed countries are far less compared to those prevalent in India. This makes the final product expensive and hence less competitive in the international markets.