IMR Handicrafts

8/7/2019 IMR Handicrafts

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Handicrafts Exports to USA

Saurav Mittal

MIB



Executive Summary

� Handicraft, also known as craft work 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 making

goods.



About Handicrafts Industry

� 14% of the industrial output and 30% of the

export market share is contributed directly by

the Indian Handicrafts industry. It is also the

largest industry when it comes to employment

� As per a recent survey the Handicrafts

industry is going to contribute 12 million new

jobs in India by 2011 itself.



What Constitutes Handicrafts

� Wooden Handicrafts

� Cotton Handicrafts

� Silk Handicrafts� Readymade Handicrafts

� Jute and Coir

� Man made Handicrafts� Hand Crafted Handicrafts, Like Carpet



Advantage India

� High availability of raw materials

� Highly skilled economical labour

� Largest producer of cotton yarn contributing 25%

towards worlds cotton� Availability of all kinds of fibers like silk, cotton, wool

and even high quality synthetic fibers

� Flexibility of the readymade garment industry in terms

of sizes, fabric variety, quantity, quality and cost� Huge Growth is expected

� EPCH-Export Promotion Council For Handicrafts



EPCH

� Export Promotion Council for Handicrafts (EPCH) under the aegis of Development Commissioner (Handicrafts), Ministry of Textiles,Government of India is a non-profit organization, established underthe EXIM policy of Government of India in the year 1986-87.

� It has created necessary infrastructure as well as marketing andinformation facilities, which are availed both by the memberexporters and importers. The Council is engaged in promotion of handicrafts from India and project Indias image abroad as a reliablesupplier of high quality handicrafts.

� Councils continued pursuit of excellence and the objective of achieving the hallmark of quality assurance by extending excellentservices to all the members and stake holders has led the Council tobecome an ISO 9001 : 2000 certified organization.



Why USA



Type of Data

� All secondary data can be found from theinternet.

� The EPCH website has almost all the required

datas to gauge the trend of US Exportshttp://www.epch.in/ministry.htm

� There are research papers also available on UShandicrafts exports

http://www.epch.in/ministry.htm

Research Paper by Bun & Bradstreet for EPCH



Secondary Research

� Secondary research can be performed by

company personnel as it consist mainly of

desk research, access of data bases of various

trade sites like Export promotion council of

handicrafts, UN comtrade, US stats, India

stats, etc. Secondary research involves cost as

for:� The access of databases

� Salary, remuneration of employees of firm



Cost

� As in this case, mostly companies have access

to these databases and if not, cost for having

access to these databases is:

� Indian stats: INR 20000

� US stats: $200 (INR 9200)

�

Total: INR 30000� Time: 15 days



Primary Research

� The Primary Research will have to be done in

three phasesThe Final importers perspective

The Sellers perspective

The USA consumers perspective

� To conduct the Primary Research the buyers,

sellers and the final consumers need to beinterviewed. The trends, tastes and

preferences need to be analysed.



Interviews of people, trade bodies etc.

present in India who can provide insight

about trade related issues, problems.

Costs of interviews include:Preparation of Questionnaires

Travel charges

Employee salary

� Time: 1 week

� Daily allowances: INR 500 per day� Total: INR 3500

� Employees salary wont add any pressure on

company as they are already a part of firm.



FOR IMPORTERS AND CONSUMERS

PERSPECTIVE� If employees are sent to USA(5 people)



Other Expenses

Total for seven days

� 850*15 = $12750

Air Travel� 2500*5 = $12500

Total Charges for seven days

� $25250



� Therefore it is better to outsource the primary

research to an Expert Research Agency as they

charge about $10000 for a research project.

They would also have the following advantages

� They know US market better than employees

of the firm

� They are more experienced in this field, so can

frame interviews in a better way



Conclusion

� Handicrafts has a lot of potential and India has

a lot of advantage.

Documents

IMR Handicrafts