Company

LOGO

ABC Apparel Export

Pvt. Ltd
Textiles export firm

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Indian
Company
Apparel and Textile Industry
LOGO

• One of the earliest industries to come into

existence in the country,
• conduces to about 30% of the total exports and is
the second largest employment creator after
agriculture.
• The Indian apparel and textile industry employs
around 35.0 million people contributes 4 % to the
GDP .
• The sector aims to grow its revenue to US$ 85bn,
its export figures to US$ 50bn and employment to
12 million by the year 2010.

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Indian
CompanyExports of Apparel & Textile – Facts &
Figures
LOGO

• Current share in world export of textiles – 3.5 - 4 %.

• Current share in world clothing export – 3 %.
• Major export market – Europe (22% share in textiles &
43% share in apparel).
• Single largest buyer – US (10% share in textiles and
32.65 share in apparel).
• Other major export markets include - UAE, Saudi Arabia,
Canada, Bangladesh, China, Turkey and Japan.
• Largest export segment – Readymade Garments (45%
share in textile exports and 8.25 share in India's total
exports).

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Product-wise
Company
LOGO
Export Share

• Readymade Garments 6038.69

• Cotton Textiles 3290.31
• Man-made Textiles 1948.72
• Wool & Woolen Textiles 66.57
• Silk Textile 406.82
• Total 11751.11

(Fig In Mn US $)

Source : Apparel Online

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Trend
CompanyIn International Trade of Apparel Sector
LOGO

Commodity Apr-Mar  2008 Apr-Mar  2009(P) %Growth %Share

A) PLANTATION 3,906.44 4,943.39 26.54 0.59
B) AGRI & ALLIED PRDTS 54,510.53 65,769.38 20.65 7.83
C) MARINE PRODUCTS 6,926.67 7,064.11 1.98 0.84
D) ORES & MINERALS 36,716.93 35,874.05 -2.3 4.27
E) LEATHER & MNFRS 14,101.30 16,351.11 15.95 1.95
F) GEMS & JEWELLERY 79,227.74 127,424.33 60.83 15.17
G) SPORTS GOODS 539.94 660.12 22.26 0.08
H) CHEMICALS & RELATED 90,040.06 109,592.65 21.72 13.05
PRODUCTS
I) ENGINEERING GOODS 135,719.27 183,975.64 35.56 21.9
J) ELECTRONIC GOODS 14,131.50 32,781.90 131.98 3.9
K) PROJECT GOODS 584.06 626.05 7.19 0.07
L) TEXTILES 74,399.19 88,498.38 18.95 10.54
M) HANDICRAFTS 2,046.21 1,375.48 -32.78 0.16
N) CARPETS 3,797.91 3,564.09 -6.16 0.42
O) COTTON RAW INCL WASTE 8,865.39 2,865.85 -67.67 0.34
P) PETROLEUM PRODUCTS 114,191.68 123,397.98 8.06 14.69
Q) UNCLASSIFIED EXPORTS 16,158.71 35,213.45 117.92 4.19
  Total 655,863.50 839,977.94 28.07 100

(Fig In US $ Mn)

Source : Ministry of Commerce and Industry

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Top 5 Export
Company
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Destinations.

Apr-Mar  Apr-Mar 
Rank Country %Growth %Share
2008 2009(P)
1 U.A.E 62,915.03 110,021.10 74.87 13.1
2 USA 83,388.07 95,750.58 14.83 11.4
3 CHINA 43,597.41 42,661.32 -2.15 5.08
4 SINGAPORE 29,662.23 37,746.56 27.25 4.49
5 HONG KONG 25,385.25 30,639.15 20.7 3.65
  Total 655,863.50 839,977.94 28.07 100

(Fig In US $ Mn)

Source : Ministry of Commerce and Industry

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Company BUSINESS PLAN
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ABC Apparel Exports.

(Company Profile)
• Year Of Incorporation-2000
• Place: Ludhiana
• Firm Type - Proprietorship
• Nature of Business – Manufacturer and Exporter.
• Level to Expand - International
• Export Markets- Asia Oceania Region (Australia &
New Zealand)

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Company
LOGO ABC Apparel Exports Pvt Ltd.

• Focus Product is Woolen Jackets (Menswear).

Parties Involved
• Production Centers located in (Punjab)
Ludhiana.
• ABC Global Ltd - Indenting Agency in Delhi.
• Export Destination– “McLaren Store” Sydney
Australia.

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Company
LOGO ABC Apparel Exports Pvt Ltd.

– Factory Location – Ludhiana “MUB”

– Import Requirements- Synthetic fibre (MLFPS).
– Number of samples can be extended to 50.
– Export Location – Australia & New Zealand [Focus
Market Scheme (FMS) ]

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Company Processes Involved
LOGO

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Company
LOGO Governing Agencies In India

Apparel Export Promotion Council

• Incorporated in1978, AEPC is the official body of apparel
exporters in India that provides invaluable assistance to
Indian exporters as well as importers

• For Indian exporters, AEPC is a one-stop shop for

information, technical guidance to work force and market
intelligence.
– Members have access to updated trade statistics, potential markets,
information on international fairs and assistance in participating at
these fairs.

Source : Apparel Export Promotion Council

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Company
LOGO

• Indian Cotton Mills' Federation (ICMF) – CITI in May 2005

• Chairman of Cotton Textiles Export Promotion Council

(Texprocil), Synthetic and Rayon Textiles Export Promotion
Council (SRTEPC) and Apparel Export Promotion Council
(AEPC) are members to the Committee of CITI.

• Confederation established a Young Entrepreneurs Group (YEG)

in March 2003. The Group comprises young entrepreneurs in the
textile industry holding executive positions.
– Its objective is to harness the inherited textile knowledge and
new ideas and initiatives of the young entrepreneurs in the
industry.
– Provides a forum for interaction among these new players in
the Industry and supports the activities of ICMF and the
industry.

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Company
The highlights of FTP 2009-2014 wrt Textile
LOGO Sector
1. Promotional measures
• Incentives to status holders – Status holders will be entitled to
Duty Credit Scrip equal to 1% of their export of specified product
groups to upgrade technology and reduce cost of production.
This facility shall be available for sectors of leather (excluding finished
leather), textiles and jute, handicrafts, engineering (excluding Iron &
steel & non-ferrous metals in primary and intermediate form, automobiles
& two wheelers

• Expansion of FMS – Focus Market Scheme (FMS) has been

expanded by adding 26 new markets, out of which 16 are in Latin
America and 10 in Asia-Oceania. Incentive under the scheme has
been enhanced from 2.5% to 3%.

• Expansion of FPS – Incentive under the scheme has been

enhanced from 1.25% to 2%.
A large number of products from various sectors have been included for
benefits under FPS. These include Technical Textiles.

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Company
The highlights of FTP 2009-2014 wrt Textile
LOGO Sector
• Market Linked Focus Product Scheme - Market Linked Focus
Product Scheme (MLFPS) has been expanded by adding 153
new products and 13 markets.
Some major products include; Pharmaceuticals, Synthetic textile fabrics,
value added rubber products, value added plastic goods, textile
madeups, knitted and crocheted fabrics
Benefits to these products will be provided, if exports are made to 13
identified markets (Algeria, Egypt, Kenya, Nigeria, South Africa,
Tanzania, Brazil, Mexico, Ukraine, Vietnam, Cambodia, Australia and
New Zealand)

• Free imports of samples by exporters - Number of free

samples allowed is increased from 15 to 50 as per para 49 of
Highlights of Foreign Trade Policy announced on 27-8-2009. It
seems the change will be effective after relevant customs
notification is suitably modified.

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Company
The highlights of FTP 2009-2014 wrt Textile
LOGO Sector
2. Duty exemption and remission schemes
• The Government has been taking various steps for augmenting the export
of textile and clothing products as a whole, including man-made fibre
based products. Some of the important measures taken by the
Government are as follows:-

i) Extension of the Duty Entitlement Pass Book (DEPB) Scheme upto

December 31, 2009;
ii) Increase in Duty Drawback rates on knitted fabrics and on specified
categories of yarn;
iii) Providing pre and post-shipment credit assistance in rupees as well as
in dollars;
iv) Reduction in import duties of raw materials; and
v) Reduction in interest rates on export finance; etc.

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Company
The highlights of FTP 2009-2014 wrt Textile
LOGO Sector
3. EPCG scheme

• Zero duty EPCG scheme - A ‘zero duty’ EPCG scheme has been introduced
in FTP 2009-14 for a limited period i.e. upto 31-3-2011 vide para 5.1 of FTP
2009-14
The scheme is available for exporters of engineering and electronic products, basic
chemicals and pharmaceuticals, apparels and textiles, plastics, handicrafts,
chemicals and allied products and leather and leather products, except those
excluded in HBP Vol. 1.

4. Manufacture under Bond

Under the Manufacture under Bond Scheme, all factories registered to

produce their goods for export are exempted from import duty and other taxes
on inputs used to manufacture such goods. Against this the manufacturer is
allowed to import goods without paying any customs duty. The production is
made under the supervision of customs or excise authority.

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Company
The highlights of FTP 2009-2014 wrt Textile
LOGO Sector
FOCUS PRODUCT SCHEME

Under these 4 digit codes various items are covered at 8 digit level and all such items are
eligible for duty free credit.
• 4203 10 Articles of apparel:
• 4203 10 10 Jackets and jerseys
• 4203 10 90 Other Gloves, mittens and mitts :4203 21Specially designed for use in
sports:
• 4203 21 10 Gloves
• 4203 21 20 Mittens and mitts
• 4203 29 Other :
• 4203 29 10 Gloves for use in industry
• 4203 29 20 Other gloves
• 4203 29 30 Mittens and mitts
• 4203 30 00 Belts and bandoliers
• 4203 40 Other clothing accessories :
• 4203 40 10 Aprons
• 4203 40 20 Semi chrome grain garments
• 4203 40 90 Other

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FTP Provisions Disappoints Apparel Exporters.
Company
LOGO

• Problems Faced By Apparel export

– Falling sales in Europe & US lead to many job losses

this year which will stagnate the apparel export this
fiscal year.
– Duty free scrips still at 2%, it will not work as these are
provided to the units which are not taking the benefit
under TUFS(Technology upgradation fund scheme)
and most of the units take benefits under TUFS.
– Addition of 26 new markets under focus market
scheme yield marginal results in short run.
– Foreign Trade Policy end up speaking of clothing and
textile industry but doing very little to it.

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Company
LOGO

THANK YOU.

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