Summer Training Project

On “Exporters’ perception towards Government role in

promoting textile exports”

Under Guidance Of

Ms. Asha Sharma

Presented By

Sandeep Singh

94972238308

◦ It contributes about 14% industrial production.

◦ It contributes 3% to the total GDP.

◦ Second largest employer after agriculture.

◦ It contributes 25% of the total exports from India.

◦ Indian textile industry ranks 2nd after China.

Main Markets Main Markets Europe North America

SHARMAN SHAWLS

Company SiteCompany Site

Established in the year 1984, Sharman shawls pvt. Ltd., is a remarkable manufacturer, supplier and exporter of Textile Yarns and Fabrics.

Their product line reaches out to the clients spread across Argentina, Central America, Portugal, South Africa, Mexico, Spain, Jordan, Italy etc.

They manufacture yarns and fabrics from highly efficient machines, imported from Germany and Italy.

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 and working environment. 

VISIONVISION

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

Strengths

Good technological base

High quality standards at affordable price

Commitment for growth

Large variety

Weaknesses

Lesser degree of professionalism.

Small size companies lack economies of scale.

Low investment in research and development.

Labour shortage

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.

FINANCIAL ANALYSISFINANCIAL ANALYSIS

Liquidity Ratios:

Current Ratio:

Particulars 2006-07 2007-08 2008-09

Current Assets

154751200.09 143441742.87 165560678.33

Current Liabilities

46270458.17 44575153.33 46203459.82

Current Ratio3.34 3.22 3.58

Quick Ratio:

Particulars 2006-07 2007-08 2008-09

Quick Assets 36840682.21 23197151.63 36669025.81

Current

Liabilities46270458.17 44575153.33

46203459.82

Quick Ratio 0.80 0.52 0.79

Absolute Liquid Ratio:

Particulars 2006-07 2007-08 2008-09

Absolute Liquid

Assets34003863.21 16185330.13 16588698.31

Current

Liabilities46270458.17 44575153.33 46203459.82

Absolute liquid

Ratio0.73 0.36 0.36

Operating Ratios:

Debtor Turnover Ratio:

Particulars 2006-07 2007-08 2008-09

Sales392593028.

00

397041321.

00

493120756.

50

Average Debtors

2836819.00

4924320.00

13546074.5

0

Debtor Turnover

Ratio

(in times)

138.39 80.63 36.40

Creditor Turnover Ratio:

Particulars 2006-07 2007-08 2008-09

Purchases238601768.3

6

224483660.3

9

302094979.7

7

Average

Creditors

27168283.10

30096428.00

30888335.00

Creditor

Turnover Ratio

(in times)

8.78 7.46 9.78

Profitability Ratios:

Gross Profit Ratio:

Particulars 2006-07 2007-08 2008-09

Gross Profit141394469.6

3

139544330.9

2

155583523.3

4

Sales392593028.0

0

397041321.0

0

493120756.5

0

Gross Profit

Ratio (%)36.02 35.15 31.55

Net Profit Ratio:

Particulars 2006-07 2007-08 2008-09

09Net Profit 29682796.53 45010843.28 48323156.13

Sales392593028.0

0

397041321.0

0

493120756.5

0

Net Profit Ratio

(%)7.56 11.34 9.80

SALES

Trend of net Profit

INTRODUCTION TO PROJECTINTRODUCTION TO PROJECT

TITLETITLE

“Exporters’ perception towards Government role in promoting textile exports”

Objectives of the StudyObjectives of the Study

To know the satisfaction level or perception of textile

exporters towards various policies and services of

Government.

To know the different problems being faced by

exporters.

Research design: Descriptive research design

Data Collection Primary Data

Using Questionnaires and unstructured interviews.

Secondary Data

From Internet.

Sampling Design:

Universe: All Textile Exporters

Population: All textile exporters in Ludhiana

Sampling Unit: Any textile exporter of Ludhiana

Sample size: 25 textile exporters.

Limitations of studyLimitations of study

Lack of professionalism among exporters.

Sample size was small.

Non cooperation by some exporters.

Continent or region wise Continent or region wise exports of textileexports of textile

%age of exporters exporting in diff continents

3244

12 12

52

160

102030405060

continents

%ag

e o

f exp

ort

ers

%age of exporters

Satisfaction level towards govt. Satisfaction level towards govt. support in promoting exportssupport in promoting exports

Options No. of respondents FactorHS 4 5 20SS 12 4 48N 7 3 21SD 2 2 4HD 0 1 0

Mean= 3.7

Response regarding Response regarding continuing the exports in continuing the exports in near futurenear future

%age of exporter want to continue exporting

76

0

24

0

10

20

30

40

50

60

70

80

Yes No Not sure

%ag

e o

f exp

ort

ers

%afe of exporters

Response regarding Response regarding planning of extending the planning of extending the exports in near futureexports in near future

%age of expoters want to extend their exports in near future

48

52

0

46

47

48

49

50

51

52

53

yes no

option

%ag

e o

f exp

ort

ers

Response regarding Response regarding availability of sufficient availability of sufficient subsidiessubsidies

52

48

0

46

47

48

49

50

51

52

53

yes no

option

Government’s efficiency to Government’s efficiency to control the export-import of control the export-import of restricted textilesrestricted textiles

Govt.'s efficiency to control export-import of restricted textiles

92

8

0

0

20

40

60

80

100

yes no

option

%ag

e o

f ex

po

rter

s

Satisfaction level with respect Satisfaction level with respect to EPCto EPC

Options No. of respondents FactorHS 2 5 10SS 11 4 44N 10 3 30SD 2 2 4HD 0 1 0

Mean= 3.5

Difficulty involved in Difficulty involved in obtaining export licenseobtaining export license

difficulty involved in obtaining export license

28

720

01020304050607080

yes no

option

%ag

e o

f exp

ort

ers

Satisfaction level with respect to EXIM Satisfaction level with respect to EXIM policypolicy

Option No. of respondents FactorHS 1 5 5SS 10 4 40N 10 3 30SD 4 2 8HD 0 1 0

Mean= 3.3

No. of exporters also No. of exporters also involved in importinginvolved in importing

%age of exporters involved in importing

5644

0

0

10

20

30

40

50

60

yes no

option

%ag

e o

f exp

ort

ers

Satisfaction level of exporters Satisfaction level of exporters regarding duty drawback regarding duty drawback provisionsprovisions

Option Factor No. of respondentsHighly satisfied 5 2 10Somewhat satisfied

4 4 16

Neutral 3 6 18Somewhat dissatisfied

2 2 4

Highly dissatisfied

1 0 0

Mean= 3.4

Maximum time limit allowed Maximum time limit allowed to re-export unused to re-export unused imported goodsimported goods

Time allowed before re-exporting the unused imported goods

79

21

0

0

20

40

60

80

100

less than 2 years more than 2 years

Time limit

%ag

e o

f exp

ort

ers

Time limit allowed before Time limit allowed before re-exporting the used re-exporting the used imported goodsimported goods

Time limit before re-exporting used imported goods

21 21

58

0

0

010203040506070

less than 1year

1-2 year 2-3 year more than 3years

Time period

%ag

e o

f exp

ort

ers

Satisfaction level of exporters with Satisfaction level of exporters with regard to public/ government regard to public/ government warehouseswarehouses

    

Option No. of respondents factorHS 1 5 5SS 9 4 36N 10 3 30SD 4 2 8HD 1 1 1

Mean= 3.2

Ranking of Satisfaction Ranking of Satisfaction level towards various level towards various warehouse serviceswarehouse services

satisfaction towards different warehouse services

3.2

3.48 3.523.68

0

2.93

3.13.23.33.43.53.63.73.8

safety rent &charges

convenience clearance

services

mean

sco

re

Findings Findings

Europe and north America are the most preferred

destination of textile exporters.

Lack of professionalism in the industry

Large number of exporters are not satisfied with various

govt. policies.

Government is not providing up to the mark warehouse

facilities.

contd/contd/

Exporters have to depend upon importing quality inputs

Business of textile exports is quite profitable.

suggestionssuggestions

Better warehouse facilities should be provided by the

govt.

Exporting units should adopt more professionalized

approach.

The government should try to provide quality inputs.

.

contd/contd/

Exporters view point should be taken into

considerations, while framing major policies.

Exporters should try to equip themselves with latest

knowledge in the related field.

Thank you!!!!!!