CHAPTER-1

INTRODUCTION

1 1.1) HISTORY

The Salishan, Athabasca and other different group live along the competitors and coast line of British Columbia. The Europeans reach first time in the North America nearest from green land at AD 1000. But no one knows until around 1480 to 1500 AD. But after some time it was spread on the basis of the English claim to Canada. Stand in the market and bite the competitors are the main goal of the European who settle in the Canada. But it also includes the Hudson‘s Bay Company, which is grounded on the economic activity but the competition spread from Europe to North America and number of dispute can fight up to the treaty of ultreach in 1713. But this situation not stands in long time period about 1745 to 1760. But after the sometime period this situation was again started between Anglo- French and British. But at the time of 1763 treaty of parish pick up the rule to the area which is known to the America. But the pressure arises between the French and English speaking Society.

It can also affect the colony upto the war 1812 between the Americans most Canadian side with the British army. At the defected of what was as upper and lower Canada But the development of USA come a movement for the unification of the colonies of British North America. It called with new nation named was Canada. It was created by the British North America Act of 1867 and proclaimed in Canada on 1 July and1867. The Federation included Nova Scotia, New Brunswick, Quebec and Ontario. But prince Edwards Island and New found land refused the join. The Yukon Territory Joined Canada at 1898.

But before many years ago the Canada known the name of ―Kanata‖ Word for Village, French Navigator Jacques Cartier Christened Canada with its name in 1535. In the early days of 20th – century, Regional economies Depend on Fishing, farming, lumbering, mining, and manufacturing were Canada mainstay. But this country goes globally from national to international markets due to the Effect of technological change and commercial policies.

2

―A Mari usual ad Mare‖ (From Sea to Sea):

Canada has to the Unique Characteristic like old rocks, mountains, lakes, rivers and other important resources. In the world, Canada is the 2nd largest country by the area vise. Canada have large geographical area, it spread 10 million square kilometers. According the one Expert, Canada is the land of crude petroleum and the Natural gas, iron ore, Nickel, Zinc, copper, gold, lead, molybdenum, potash, diamonds, silver, fish But the European traders change the society. But the Canada becomes an independent nation at the time of 1867, when the three provinces of British North America united to form the nation. The Canada country is both a constitutional monarchy and an independent democratic system led by Elizabeth II, who is a queen of Canada. And the Canada has a stable political system with the sound policy. And the US and Canada cooperate on various military exercises and campaigns, but the Canada maintains its policy. And it maintains the relationship with cubs and it has kept away from the Iraq war. But due to the vast stretches of Unwelcoming wilderness towards the north, and the 90% of Canadian people live within 200 kilometers of the united state.

People roaming from Asia. Probability crossing the bearing strait, first time settled in the North America. They form in number of types that can be unique by language. The biggest group was the Algonquian, often change, who inhabited the eastern the eastern sub – article and maritime areas but by the 18th century had waded into the parties and plains of the mid – west. The Iroquoian lived in mostly in the 1st Lawrence valley and around lakes Ontario and Erie.

3 1.2) GEOGRAPHIC

Location: northern north America, bordering the north Atlantic ocean and north pacific ocean, north of the conterminous US

Area: total 9984670 sq. km

Land: 9093507 sq. km

Water: 891163sq km

After Russia, Canada is the 2nd largest country in the world with a strategic location between Russia and US via NORTHPOLAR route. it is slightly larger than the US . Approximately 85% of the population is concentrated within 300km of the US/Canada border.

Land boundaries: total -8893 km; border countries- US 8893 km (includes 2477km with Alaska).

Cost line: 243791 km

Climate: varies from temperate in south to sub-arctic and arctic in north.

Terrain: mostly plains with mountains in west and lowlands in south-east.

Elevation extremes: lowest point – Atlantic Ocean 0 m ; highest point –mount Logan 5959m

Natural hazards: continuous permafrost in the north is the serious obstacle to development. Cyclonic storms form east of the Rocky Mountains, a result of the mixing of air masses from the arctic, pacific and North American interior, and produce most of the country‘s rain and snow.

4 1.3) DEMOGRAPHIC

Population: estimated population is 34.03 million (July 2011)

Population growth rate:

Population growth in Canada increase from 1990 to 2008 with 5.6 million and 20.4%.

Life expectancy: total population 81.23 years.

Male: 78.69 years

Female: 83.91 years

Age structure:

0-14 years: 16.1 % (male 2761711/female 2626836)

15-64years: 68.7 % (male 11633950/female 11381735)

65 above: 15.2 % (male2220189/2862787)

Capital city: Ottawa

People: Canada is multicultural country with the people all over the world who have now made Canada their home. Ethnic groups (wholly or partly): north American origin 40%, British origin 33%,french origin 16%, other European 29%, aboriginal peoples 4%, south , east & south-east Asian 9%, other ( mostly Caribbean, Arab, African, Latin/central/south American and west Asian)6%

The total comes to more than 100% because many Canadians (approximately 38%) have a mixed background.

Languages:

5 In 2006, about 17.4 percent of the population were reportedly bilingual.

Language Percentage

English 57.8%

English and French 17.4% (Bilingual)

French 22.1%

Canada has two official languages, English-57.8%, French- 22.1%, Other languages -17%

Religions:

Religions Percentage

Roman Catholic 43%

Protestant 23% (united church 9%, Anglican 6%, bapist 2%, Lutheran 2%)

Other Christian 4%

Muslim 1%

Other and 11% unspecified

None 16%

Currency:

Canadian dollar (known as the ‗‘loonies‘‘ –a native bird). 1 dollar is made p of 100 cents.

Major political parties:

Federal levels are: Conservative party

Liberal party

Bloc Quebecois

6 New Democratic Party

Notable provincial parties: The progressive conservative party

The party Quebecois in Quebec

The Saskatchewan party

The Yukon party

Government: Canada is a constitutional monarchy and a federal state with a democratic system of government based on Westminster model.

Head of state: Queen Elizabeth 2 (since February 1952)

Head of government: Prime Minister Stephen Harper (since 6 February 2006)

Foreign minister: the honorable john Baird (May 2011)

Membership of international grouping:

Member of commonwealth

NAFTA, NATO, OAS, WTO,G8, G20,La francophonie

1.4) ECONOMY:

Basic economic facts

Nominal GDP US$ 1737 billion

GDP per head US$50436(2011 EST.)

GDP growth 2.1 %( April 2012 Est.)

Inflation 2.9 %( 2011)

7 Labourforce 19 million (2011 Est.)

Unemployment: 7.5 %( 2011)

:

Major industries: auto of fossil fuels,, forestry and agriculture. Mobile manufacturing, pulp and paper, iron and steel work, machine and equipment manufacturing, mining, extraction of fossil fuels, forestry and agriculture.

Major trading partners: United States, UK, Japan and china.

Exports: US$462.4billion (2011)

Exports-commodities: Automobiles and parts, machinery and equipment, high-technological product, oil, natural gas, metals, and forest and farm products.

Imports: US$493billion (2011)

Imports – commodities: machinery, electric machinery and equipment, industry goods, mobile and vehicles and parts, minerals fuels and oils, plastics

Gross government debt: C$1460 billion (2011)

Government debt (% of GDP):85 %( 2011)

Exchange rate: C$1.58(Sep. 2012)

8 1.5) POLITICS:

Canada is divided into 308 electoral districts. Voters have to elect Member of Parliament to send to the House of Commons. There are mainly two chambers in Canadian parliament that are the house of commons (308 seats) and the senate (only 105 senators). The house of commons is for five year terms that are elected by popular vote. The senate members are selected by prime minister for the time until 75 of age. Recent political developments: The conservative party of Canada won the country‘s federal election in 2011 which is led by Stephen Harper. Human rights:

 International covenant on economic, social and cultural rights

 International covenant on political and cultural rights

 Optional protocol (for individual complaints)

 Second optional protocol (death penalty)

9  Convention for the rights of children

 Amendment to article43 (2)

 Convention on the punishment and prevention of crime

ECONOMY

A strong resource rich country

An abundance of natural resources gives Canada a core advantage. Mining, forestry and oil have formed the bastion of Canadian exports and trade for few sometime.50% of total resources of energy resources in Canada, as per the timber and mineral resources. Some of the metallic minerals Canada produce consist of gold, nickel, uranium, bismuth, zinc, cobalt, and cadmium. Potash, diamond, and cement constitute the country‘s non-metallic mineral production as well as coal. Canada‘s not only the forestland but also the pulp and paper business largest manufacturing sector. The economy of Canada is forestry, which include 1 out of every 44 jobs. Canada possesses 10% of the world‘s forest measuring. it is one of the largest exporters of forest products; it‘s consist of essential amount of its surplus balance of trade. 1.6) Culture:

Drooping fertility rates The country population 3.1 million, with a population of only three inhabitants per square kilometer, one of the lower in the world. The low population is the great challenges on the future growth of the country especially the low birth rate is the challenged. Only a fifth it‘s under population is under age of 15 and fertility rate stands at 2.1. The life expectancy of Canadian is the high at 80.22 due to the pristine environment and universal health care provided by the government. Canada has been a literacy rate of 99%, the people are more concise to environment. The front of human development, Canada is under 4th rank among 182 countries.

10 Home to immigrants

Canada‘s population is a multi-ethnic one, with Canada holding the largest per capital immigration rate due to liberal immigration policies. Under the high rate of immigration, Canada is the vibrant mixture of cultures. As per the latest sample census on immigration and citizenship, the period from 2001-2006, Canada has been 6.18 million foreign-born people, which is 19.8% of the total population. In this timeframe, the number of people under Canadian origin grows by 3.3%. The census also enumerated that 1.1 million immigrants moved into Canada in the five-year period.

11

CHAPTER-2

PESTEL ANALYSIS

12 2.1) Political aspect of the country: Type of government: parliamentary democracy and federal system of parliamentary government with solid democratic traditions. Canada has a multi-party system in which many of the country‘s legislative practices initiative from the unwritten contracts of and precedents set by the United Kingdom‘s Westminster parliament. Canada has grown variation: party discipline in Canada is tougher than in the united kingdom and more parliamentary votes are considered motions of confidence, which tends to weaken the role of non-cabinet members of parliament(MPs).such members, in the government caucus, and junior or lower-profile member of opposition caucuses, are known as backbenchers. The two leading political parties in Canada at present are, the conventional party of Canada and the liberal party of Canada, but smaller parties such as the social democratic, new Democratic Party, and the green party of Canada can exercise their own influence over the political process. Cabinet: Ministers (usually around 30) elected by the prime minister and appointed by the Governor General to lead various ministries and agencies, generally with regional representation. Usually most, if not all, cabinet ministers will be members of the leader‘s own party in the house of commons; yet this is not legally or constitutionally authorized, and occasionally the prime minister will appoint a cabinet minister from another party.

2.2) ECONOMICAL ASPECT OF THE COUNTRY: One of the wealthiest nations of the world, Canada is a member of the organization of the economic cooperation and development (OECD) and the G- 8. Canada‘s economy is dominated by the service sector. Once of the few nations in the world to be net exporter of energy, Canada finds its place amongst the top ten trading nations in the world.

13 Canadian inflation rate rose less than expected in December, ending the year at 2.4% January 25, 2011 Canadian inflation rate ended 2010 at 2.4%, shy of market expectations for a 2.5% increase although higher than the 2.0% recorded in November. The bank of Canada‘s measure of core inflation also moved higher in December to 1.5% relative to a year earlier from 1.4% in November. Market forecasts were for the core rate to rise to 1.6%. Nearly 70% of Canada‘s gross domestic product (GDP) is contributed by its service sector, which employs over 75% of the country‗s population. The country‘s agriculture sector contributes only 2% of GDP, employing a similar proportion of its people. The North American nation‘s industry contributes nearly 28% of its GDP, while employing around 27% of its population. The country‘s services segment includes retail, communication, real estate, financial service, health and education, entertainment, technology and tourism. A large portion of the country‘s natural resources, including oil, nickel, gold and uranium and agricultural products like wheat and other grains, are exported to the US, Europe and East Asian. Canada‘s trade and economic integration with the United States has witnessed a dramatic increase, the US is Canada‘s largest trading partner, besides being its largest foreign investor through investment in mining, smelting, petroleum, chemical and machinery segments. This has linked the Canadian economy policy even more to the United States. Even a minor change in the US invest rate has repercussions in Canada. One important distinction between the economic structures of Canada and the US is that the former is a net exporter of supplies while the latter is a net importer. Canada‘s banking segment is also quite conservative in contrast to the United States.

14 2.3) SOCIAL ASPECT OF COUNTRY: INCOME The average family income I Canada in 2011 was $78800; top 20% of families obtain 43.6% of the income, while the bottom 20% receives only 5.2% of the income. This level of dissimilarity has been maintained for 45 years. Canada has less income disparity that the United States. SCHOOLING Education is an important determinant of labor force participation, occupation and income, and it is highly valued is Canada and other industrial societies. Women have completed more schooling than men. GENDER Women earn less income, accumulate less wealth and enjoy less occupational prestige than men. SOCIAL CLASSES IN CANADA:

Upper class 3 to 5% of Much of their wealth is natural, their Canadians. children go to private schools and they exercise great power in occupational positions. This group has historically been primarily of British origin, it is now more widely spread. Upper- One percent belongs Primarily of ―old money‖. uppers to an upper-uppers level distinguished Lower- The remaining 2-4% Depend more on earning than natural uppers wealth. The middle Roughly 40-50% Because of its size it has incredible class influence on patterns of north American culture. There is significant racial and ethnic diversity in this class and it is not

15 categorized by exclusiveness and familiarity The working 1/3 of the population Have lesser income than the middle- class class and virtually no added wealth. Their jobs provide less personal satisfaction. The lower 20% of population There are 15% of the population was class labeled as poor. many are maintained entirely by welfare payments while other are among the ―working poor‖ whose incomes are insufficient to cover necessities like shelter, food and clothing etc.

POVERTY IN CANADA: About 4.4 million Canadians live below the ―poverty line‖, that point below which people spend approximately 55% of pre-tax income on food, clothing, and shelter. A recent United Nations report has criticized Canada for making no measurable progress in alleviating poverty. A ―wealth‖ society finds 2 million people regularly making use of food banks and soup kitchens. Children are more likely to be poor than any other age group. 15.6% of people under the age of eighteen are officially classified as poor. Canada is on average very low but improves over time as they acculturate to Canadian society. The poverty rate for the elderly has been declining but as the boomers retires; we will see a rise in the absolute number of elderly poor.

2.4) Technological aspect Internet The internet becomes an important source of information, marked by the popular sites as Wikipedia and Google. many articles have been contributed to

16 both English and French language versions of Wikipedia by Canadian and many of these relate to There are thousands of Canadians who uses service every day in English and French, Google earth, are an on line feature offer by Google since 2005. It provides aerial views of the earth, including Canada and is viewed by thousands of web users every day including many Canadians. Another internet information service, a telephone directory, Canada . Canada has become very popular since introduce in recent years, so that the delivery of the residential paper telephone book which were introduce to Canada in 1878,will cease in major cities in 2010. Digital communication / HD TV (Delivery) Two torono-based companies, Sirius Canada and XM Canada introduced direct to home/car, digital satellite radio service in December 2005 and 2008 have 750000 and 400000 subscribers respectively. In 1999 telesat launched first of four nimia direct broadcast satellites which provide space based satellite transmitters for services. In 2003 bell Canada introduced an improved speech recognition system for its 310-2355 customer routing service in Ontario. Bell Canada users speak with program me through ―Emily‖ a young female sounding artificial voice, in 2005, Skype, a voice and moving picture over internet technology becomes available to users around world, including Canadians. The technique which bypasses the traditional telephone network, a allows people to use the internet as a type and to both talk to and see each other during calls. It used mainly for long distance communication. Digital courts The university of montreal have recently experimented with ways to improve the administration of justice by creating a digital court room in which mock trials were held using modern technology to speed the proceedings. The ―courtroom‘ have facilities for filling documents electronically. Witnesses can testify by video link or holographic ally from a remote location. Documents can be served on parties through social media. According to these involved with the

17 project, barriers to its application in real courtroom settings were not technological but rather emotional, with judges and lawyers being resistant to change. 2.5) Environmental aspect of the country Environment Canada , legally incorporated as the department of the environment with under the department of the environment act, are department of the government of Canada with responsibility for coordinating environmental policies and programs as well as preserving and enhancing the natural environment and renewable resources. duties includes (a)the preservation and enhancement of the natural environment, including water, air and soil quality(b) renewable resources, including migratory birds and other non domestic flora and fauna (c) water (d) meteorology (e) the enforcement of any rules or regulations made by the international joint commission and (f) the coordination of the policies and programs of the government of Canada respecting the preservation and enhancement of the quality of the natural environment. Under the Canadian environmental protection act , environment Canada become the lead federal department to ensure the clean up hazardous waste and oil spills. the department are also responsible for international environmental issues(e.g. Canada – USA air issues.) The responsibility for environmental management in Canada is a shared responsibility in the federal government as well as provincial/territorial governments. E.g., provincial governments has been primary authority for resource management consist of permitting industrial waste discharges (e.g. air). The federal government has responsible for the management of toxic substances in the country (e.g., benzene). Environment Canada provides warden ship of the Environmental Choice Program, which provides consumers with an eco-labeling for products manufactured indicates Canada or services that meet international label standards of (GEN) Global Eco labeling Network. Environment of Canada consist of (2005) to structural transformation to

18 centralize authority and decision making, and to standard policy implementation.

2.6) LEGAL ASPECT OF COUNTRY The Canadian legal system has been basis in the British common law system, inherited from being a former assembly of the U.K and later a member of the commonwealth of nations. QUBEC, still holds a civil system for issues of private law. Both legal systems are focus to under the Constitution of Canada. Legal structure of the country indicates Legal traditions which include two main as well as some other areas of laws: Main laws: Common law and Civil Law Others Areas of law Aboriginal Law, Administrative Law, Civil and Human Rights Law, Contract Law, Constitutional Law, Copyright Law, Criminal law, Evidence Law, Family Law, Immigration and Refugee Law, Labor and Employment Law, Patent Law, Procedural law, Property Law, Tort Law, Trade-mark Law Common law All provinces and territories inside of Canada, excluding Quebec, follow the common law legal tradition. Similarly, courts have also power under the provincial Judicature Acts to apply equity. The Supreme Court of Canada has authority to bind all courts in the country with a single rule system. The harder courts, such as the Court of Appeal for Ontario, for example, are looking for guidance on many local matters of law outside the area, especially in matters such as evidence and criminal law. Due to Canada‘s historical connection with the United Kingdom, decisions of the House of Lords before 1867 are technically still binding on Canada unless they have been overturned by the Supreme Court of Canada, and Canada is still bound by the decisions of the Privy Council before the elimination of appeals to that entity in 1949. Criminal

19 offences are found within the Criminal Code of Canada or other federal/provincial laws, with the exception that contempt of court is the only remaining common law offence in Canada Civil Law Due to past experience, Quebec has a hybrid legal system. Private law follows the civil law tradition, originated in the Coutume de Paris. Nowadays, the jus commune of Quebec is codified in the Civil Code of Quebec. As per public law, it was made that of the conquering British nation after the fall of New France in 1760, which is the common law. It is important to note that the difference between civil law and common law is not based on the division of powers established in the Constitution Act, 1867. Hence, legislation passed by the provincial legislature in matters of public law, such as the Code of Penal Procedure, should be understood following the common law tradition. Likewise, legislation passed by the federal Parliament in matters of private law, such as the Divorce Act, is to be taken following the civil law tradition and in harmony with the Civil Code of Quebec.

20

CHAPTER-3

Comparative Analysis of Indian and Canadian Market

21 3.1) Overview of the sports industry  The US is the largest market for sports products (equipment, apparel, footwear and Accessories and accounts for around one-third of the global market  In most countries the contribution of the sports sector to the GDP is small and usually Less than five per cent of the GDP.  Asian countries like China and India have a large population base, the sports market in Asia is currently less than 25 per cent. The per capita consumption of sports goods in developing countries is low for three reasons  first, the per capita purchasing power is lower than that in developed countries.  second sports is treated as a luxury commodity.  Third the government‘s priority is to provide basic necessities, such as infrastructure, water and sanitation, healthcare and education rather than development of sports.  In developing countries such as China and in Developed countries such as Canada it accounted for only 1 per cent of the GDP in 2000  The world‘s major exporters of sports goods are China, Hong Kong, France, Italy, Germany and the US.  The major importers are the US, Japan, Germany, France, the UK, Italy, Canada and Hong Kong.  Developing countries like India and China have now become important production hubs for companies from developed countries. All the country not focuses on all the game but they only focus on the some specific game.

Country Name Popular game

India  Cricket

Canada  Ice-hockey

22 Contributation in the sports industry of the country in the GDP

 In most countries the contribution of the sports sector to the GDP is small and usually less than five per cent of the

3.2) Canadian Import to India

Title Canadian Imports

Products HS-95 toys, Games, sporting goods and other goods for amusement

Origin India

Destination Canada

Period Latest 5 years

Units Value in thousands of Canadian dollars

Years 2007 2008 2009 2010 2011

India 6395 6285 6293 6014 5778

3.3) Canadian export to India

Title Canadian total Exports

Products XI – TEXTILES AND TEXTILES ARTICLES

HS 95 – toys, games, sporting goods and other goods for amusement

Origin Canada

23 Destination India

Period Latest 5 years

Units Value in Canadian dollars

Years 2007 2008 2009 2010 2011

India 160148 1376595 753762 671805 959983

3.4) Export Competitiveness of Indian Sports Goods Industry

Introduction Indian Sports Goods industry has been responding well to international challenge over the years, hence it has a bright future ahead. Globally, sports goods demand is on the rise and offers immense potential for growth. As it is in other sectors, competition is ever increasing in sports goods markets with price, product cycles and shelf life of products continuously declining. By mainstreaming the important aspects of product development and innovation combined with aggressive marketing and promotion, the Indian sports goods industry is emerging as a leading supplier of sports goods to global markets. The sector continues to walk the path of overall expansion. The international market awareness has seeped into the industry, instigating a spurt in product development and diversification trends.

According to industry sources, ―Indian Sports Goods sector is maintaining global standard and can compete for all range of Sports Goods products. However due to the lack of government supports like tax exemptions, efficient transportation, infrastructure facilities, raw material availability etc., the exports to USA, UK, Canada, Australia etc., are declining. Due to

24 environmental considerations many countries have already started using biodegradable (biodegradable plastics are plastics that will decompose in natural aerobic (composting) and anaerobic (landfill) environments) products like polyethylene but Indian Sports Industries are not using any such products and it is not easily available in markets also.‖ Despite global recession, sports goods industry has been able to achieve double digit growth (in Rupee terms). However in US dollar terms, there is decline of around 1% during 2008-09. As per the figures recorded by the Sports Goods Export Promotion Council (SGEPC), Indian sports goods sector is diversifying its export markets and are exporting to more countries in 2008-09 as compared to 2007-08.

Overall Export Performance of Sports Goods from India Total sports goods export recorded by the SGEPC, based on the export returns submitted bytes members, for the year 2008-09, it is over Rs.586 Crore. This indicates a growth of around 13% over the previous financial year. The top items of exports as are Inflatable Balls, Hammocks, Cricket Bats, Boxing Equipment & General Exercise Equipment. General Exercise Equipment is a new addition to the top 5 category during 2008-09. The share of top 5 items in overall exports continues to be around 60%. Hammocks registered a growth of 76% in rupee terms. Other items which registered notable growth are Golf balls, Carom Boards, Chess and Table Tennis Equipment. The top five destinations of exports of Indian Sports Goods are U.K, USA, Australia, South Africa and Germany.

Export of Sports Goods from India Of the 20 main items exported from India, 14 items registered positive growth in their exports from India . Hammocks recorded the highest annual growth (24.33%) while Rackets recorded the lowest annual growth (-34.79%) during 2002-03 to 2008-09. The largest exported item in sports goods sector remains inflatable balls with a share of almost 30% of total exports of sports goods

25 India’s Export of Major Sports Goods - 2002-03 to 2008-09

(Rupees Crores)

Items of Export 2002-03 2005-06 2008-09 CAGR % from 2002-03 to 2008-09

Inflatable balls 124.70 168.85 170.28 5.33

Hammocks 14.91 26.46 54.81 24.23

Cricket Bats 24.00 35.14 44.60 10.88

Boxing 25.18 31.28 38.37 7.27 Equipments

General Exercise 12.52 22.44 38.31 20.49 Equipment

Protective 30.29 34.16 35.34 2.60 Equipments for Cricket

Golf Balls 15.87 13.63 26.58 8.98

Toys & Games 5.86 8.04 19.07 21.73

Nets 0.00 6.94 14.47 14.82

Carrom Board & 8.78 6.37 11.88 5.17 Chess

Cricket and Hockey 6.53 8.64 11.15 9.33 Balls

TT Equipment 3.71 7.12 10.95 19.77

26 Protective 8.65 10.60 -0.28 Equipment for Football

Bladders 5.56 6.97 9.35 9.05

Fishing Equipment 7.33 5.73 7.36 0.07

Protective 2.55 3.11 3.22 3.96 Equipment for Hockey

Hockey Sticks 4.20 3.15 1.74 -13.66

Sports Badges & 0.13 0.52 0.44 22.53 Insignias

Racket 0.13 0.13 0.01 -34.79

Other Sports goods 25.94 59.65 78.36 20.23

Total 318.19 456.98 586.89 10.74

Country Wise Export of Sports Goods The export destinations of Indian Sports Goods have increased from 127 countries in 2007-08 to 137 countries in 2008-09. The top 5 export destinations continue to hold the share of more than 70%. Among the top 5 export destinations of Indian sports Goods, France got replaced by South Africa. Other 4 countries continue to be U.K., USA, Australia and Germany. U.K. Continued to occupy the top slot, however, with a lower share of 25%., USA (22%), Australia (14%), South Africa (4%) and Germany (4%). The top ten markets accounted for more than 80% share of sports good exports from India. Among top ten markets, maximum increase was reported from countries like

27 U.S.A (26.4%), Ireland (20.40%), South Africa (12.07%) and France (10.92%) during 2004-05 to 2008-09.

India’s Export of Sports Goods - 2004-2005 to 2008-09

Country 2004- 2005-06 2006- 2007-08 2008-09 CAGR % 05 07 (2004-05 to

2008-09)

Australia 65.15 61.16 82.86 78.04 83.17 6.29

Canada 9.77 8.89 12.13 9.26 9.64 -0.36

France 14.87 17.35 20.49 29.06 22.51 10.92

Germany 17.26 34.08 21.74 27.09 25.16 9.87

Ireland 5.10 7.23 6.56 9.04 10.71 20.40

Italy 16.58 15.01 12.34 10.47 7.99 -16.69

New 8.41 14.81 8.73 11.83 11.40 7.92 Zealand

South 16.00 18.95 29.67 26.55 25.24 12.07 Africa

28 UK 124.77 130.58 150.78 154.74 150.29 4.76

USA 52.04 64.52 81.41 78.01 132.84 26.40

Other 65.15 84.39 82.35 85.17 107.94 13.45 Country

Grand 395.11 456.97 509.0 519.26 586.89 10.40 Total 4

3.5) Major Sports Goods Manufacturing Clusters in India

Sl. Location Major Product Categories No. /

Cluster

1. Jalandhar  Inflatable ball ( Soccer/Rugby/Volley/Net/Hand & Basket ball)in PU & PVC  Boxing Equipment  Cricket Equipment  Sports ware  Track and Field Equipments  Sports Training equipment  Hockey Equipment  Hockey Foam Moulded Goalie Range & Shipguards  All kinds of Nettings 2 Meerut  Weight Lifting Equipment  Cricket Equipments

29  Athletics Equipments  Boxing Equipments  Table Tennis  Badminton  Carrom board  Fitness and Exercise equipment  Lane Markers  Basket ball  Netball rings  TT accessories  Sports Apparel 3 Jammu &  Cricket Bats

Kashmir

4. Delhi  Football  Carrom Board  Chess  Cricket Equipment  Billiards/Snooker/Pool Tables  Accessories  Football Bladders  Boxing equipment  Punching  Sports Helmets  Educational Puzzles  Board Games 5 Gurgaon  Golf Equipment  Board Games 6. Mumbai  Water Park Slides

30  Carrom Board  Playground  Fitness Equipment  Sports Nets  Helmets 7 Kolkotta  Skipping rope  Carrom Board  Magic tricks & magic apparatus, 8 Chennai  Tennis Balls, Sports Shoes and Apparels

9 Bangalore  Bowling Equipments  Sports Medals & Trophies  Gym & Health Equipments

3.6) International Relations

Relations with Neighbors

Canada has particularly close relations with its immediate neighbor, the United States of America. US President Barrack Obama made his first official overseas visit to Canada in February 2009. The United States is Canada‘s main trading partner and with Mexico, comprise the North America Free Trade Association (NAFTA). Canada and the US are both members of NATO. The United States remains Canada's most important bilateral relationship, which includes joint Canadian and US membership of the NORAD defense alliance.

Canadian relations with the international community

Canada is a strong supporter of the World Trade Organization and of expanded free trade areas. Other foreign policy priorities include the promotion of international peace/security through multilateral bodies and respect for human rights/human security (e.g. on landmines, where the Canadians were instrumental, strongly supported by UK, in concluding the Landmines Treaty

31 in 1997). Canada has made a substantial contribution to stability in Afghanistan and was a key member of the 2011 NATO mission in Libya. Following the withdrawal of combat troops earlier in the year, Canadian Forces began a training mission in Afghanistan in November 2011.

Canadian relations with the UK

The UK/Canada bilateral relationship is strong. Both countries work together across a wide range of bilateral and international initiatives. The Prime Minister David Cameron and the Canadian Prime Minister Stephen Harper endorsed a UK-Canada Joint Declaration on 22 September 2011, which sets out the framework for our future strategic partnership. The Foreign Secretary and Canadian Foreign Minister John Baird will endorse an annex to the Declaration on 24 September 2012 containing new commitments.

Statistical summary of sport industry Canada

% Economic Change CAAGR 2006 2007 2008 2009 2010 Indicators 2009- (%) 2010*

Apparent Domestic 2,034.3 2,073.6 2,118.8 1,936.6 2,012.2 3.9% -0.3% Market

Shipments 1,197.3 1,136.0 985.2 854.1 866.5 1.5% -7.8%

Gross Domestic 535.2 496.5 421.8 393.6 n.a. -6.7% -9.7% Product

Manufacturing 44.7% 43.7% 42.8% 46.1% n.a. 7.6% 1.0% Intensity Ratio

32 Total Imports 1,302.0 1,355.0 1,500.0 1,391.0 1,420.0 2.1% 2.2%

Domestic Exports 465.0 417.5 366.5 308.5 274.4 -11.1% -12.4%

- - - Trade Balance -837.1 -937.5 5.8% 8.2% 1,133.5 1,082.6 1,145.6

Import Penetration 64.0% 65.3% 70.8% 71.8% 70.6% -1.7% 2.5%

Export Orientation 38.8% 36.7% 37.2% 36.1% 31.7% -12.3% -5.0%

Domestic Market 36.0% 34.7% 29.2% 28.2% 29.4% 4.5% -4.9% Share

Labour Productivity 74.2 73.9 75.7 69.6 n.a. -8.1% -2.1%

Employment 7.2 6.7 5.6 5.7 n.a. 1.5% -7.8%

33 CHAPTER-4

PORTER’S FIVE FORCE MODEL

34

4.1) Threat of new entrants to an industry

 If we have to entrants move into an industry we will gain market share & rivalry will intensify.  The position of existing firms is stronger if there are barriers to entering the market  barriers to entry are low then the threat of new entrants will be high, and vice versa There are so many company’s engaged with the sports tools. The companies are  Baseball  Basketball  Bicycle  Bicycle Helmets  Bicycle Racks  Bicycles and Bicycle Components  Bowling

35  Hockey  Field Hockey  Goaltender Equipment  Hockey Equipment and Accessories  Hockey Rink Equipment  Hockey Skates  Hockey Sticks  Hunting, Shooting and Fishing  Sports Apparel  Athletic Clothing and Outdoor Wear  Boots and Shoes  Cycle Apparel  Hunting, Fishing and Hiking Apparel  Ski, Snowboard and Snowmobile Apparel  Swimwear  Apparel for Other Sports  Sports Medicine and Performance Aids  Sports Nets  Table Sports  Tapes and Adhesives  Toboggans and Sleds  Volleyball

Capital Requirements to Enter

The significant total dollar investment needed by an individual to enter the market either successfully or unsuccessfully. In the absence of government tax incentives, the investments are made in after-tax dollars making them almost twice as expensive given the income brackets of many of the kinds of individuals investing. Though a number of provincial and federal tax incentives apply, clearly, allow level of wealth is necessary to enter the market.

36

Government Interventions & Incentives

To motivate the investment, governments can act in two ways. Government can inspire investment by actively intervening and supplying venture capital, becoming supply agent and training entrepreneurs. they can incite individuals to action by providing tax breaks and eliminating income tax. it is not clear the tax initiatives, designed to motivate individuals to invest. the ask able efficacy of current policies

Market Entry Canada‘s distribution and sales channels for Sporting Goods equipment and related accessories are similar to those in other industrialized countries. Large multinational firms dominate the Canadian market. Sales of sporting goods equipment and related accessories to Canadian companies are handled through relatively short marketing channels and in some cases, products move directly from manufacturer to end-user. While some manufacturers choose to sell directly to clients with their own sales force and distribution operations, others use different combinations of distributors, general sales agents, and manufacturers‘ representatives. Canada is an exceedingly large country and demographics; culture and language requirements vary greatly from one coast to the other. Approximately 31 percent of all sporting goods sold in Canada are purchased through sporting goods retailers.

4.2) Bargaining power of suppliers

If a firm‘s suppliers have bargaining power they will:

 Exercise that power

 Sell their products at a maximum price

 Gain industry profits

37 If the supplier forces up to the price paid for inputs, profits will be decrease. It follows that the more powerful the customer, the lower the price that can be achieved by purchasing from supplier.

Suppliers find themselves in a strong position when:

 There are few suppliers

 The resource they supply is limited

 The switching cost to an alternative supplier is high

 The product is easy to difference and loyal customers are not to switch

 The customer are small and not important

 There are no alternatives and small number of substitute resources available

Key Suppliers  Adidas AG (Germany) o Adidas o Reebok o Taylor Made-adidas Golf  The Forzani Group Ltd. (Canada) o Sport Check o Sport Mart o Coast Mountain Sports o National Sports o Athletes World  Mountain Equipment Co-Operative (Canada)  NIKE, Inc (USA) General Economic Forces

Interest rates in general will influence how ready the investors engage in informal investments. When interest rates are maximum on minimum risk

38 bearing instruments, investors will tend towards the lower risk options. When interest rates are low, higher risk ventures will likely attract more dollars.

Top 10 supplier of Canadian sports industry

Athletics Kits [India]

Stranger Sports Wears are renowned manufacturer and supplier of world class Athletics Kits at affordable prices.

Badminton Rackets I [India]

Gymnasium Items [India]

Ice skate blade guard [China]

Magnum Pool Table [India]

Accessories list for Magnum Pool Table 1. Folding cues imported 4 Nos.

2. Canvas dust cover 1 Nos. 3. Cue stands

39 Playing Kits [India]

Rugby Ball [India]

boat life jackets [China]

Snooker Table (SBA Snooker) [India]

Table Tennis Table [India]

4.3) Bargaining power of buyer

Powerful buyer are capable to exert pressure to drive down prices, or increase the required quality for the same price, and therefore deduct profits in an industry.

Customers tend to enjoy strong bargaining power when:

 There are only a few costumer

40  The customer buy a significant portion of output of an industry

 Customer possess a credible backward integration threat – that is customer threaten to buy the producing firm or its competitors

 buyer can select from a broad range of supply firms

 customer find it easy and inexpensive to switch to other suppliers

Prospective Buyers

In general, Canadian buying behavior with sporting goods tends to apply the U.S. model. The average Canadian consumers are becoming more demanding, seeking maximum performance and attractive styling in their equipment. Canadians are looking for value of money as they experience a crunch for their leisure dollar. The U.S. affection on the Canadian sporting goods market is very strong and U.S. firms will benefit from strong brand recognition.

4.4) Threat of substitute products

A substitute product can be regarded as something that meets the same requirement Substitute products are those product that produced in a different industry –but crucially satisfy the same customer requirement. there are number of credible substitutes to a firm‘s product, they will limit the price that can be charged and will deduct the industry profits.

The extent of the threat depends upon

 The extent to which the price and performance same

 The readiness of customers to switch

 Customer are not loyal so that switching costs is high

If there is a threat from competitive goods the firm will have to improve the performance of their products by minimizing costs and therefore prices and by differentiation.

41 Degree of competitive rivalry

If there is intense rivalry in an industry, it will encourage businesses to engage in

 Price wars (competitive price reductions),

 Investment in innovation & new products

 Intensive promotion (sales promotion and higher spending on advertising)

All these activities are likely to increase costs and lower profits.

Number of Competitors – Regionalism and Secrecy

In attempting to gain information about reports, research and the activities of trade associations and chambers of commerce regarding angels, contacts were made with the directors of these associations from across the country. Few offered any published or other information about the topic except the significant efforts of the Newfoundland and Labrador Chamber of Commerce. The Newfoundland and Labrador Chamber of Commerce hosted a four-location detailed seminar series with well-developed materials, speakers and substantial promotion

Informational Infancies

In some industries, rivalry is focused on price competition. In other industries, performance features, product innovation, quality, durability, after-the-sale- service, or brand image are the key determinants by which competitors differentiate themselves. In the formal venture capital market, the VCs' specialization and ability to successfully contribute and add value are features by which they attempt to differentiate themselves. There are no similar differentiating qualities amongst informal investors.

There are few avenues by which angels can systematically exchange information. Other than infrequent media coverage and some word of mouth, angels have no way of knowing what competitive practices other angels are

42 employing. Angels do not know about the offerings of other angels, their deal structures, expected returns or governance practices. Therefore, lack of an information transmission system, irregular angel communication and the resulting lack of knowledge of other angels' activities works to keep rivalry at a minimum.

4.5) Swot analysis of Canada sports industry.

Strengths:

 People will continue to desire personal service, particularly as more and more people are choosing to live alone.  The need to be served coupled by the need to experience ―social activities‖ will provide an avenue for growth in small sized leisure, recreation and sport organizations.  The coming of work age of the ―millennium busters‖ will once again crowd the work force enticing the expansion of small sized enterprises.  More people will mean new opportunities for small sized leisure, recreation and sport services.  The expansion of suburban communities is a growing phenomenon in Canada as people are choosing to live outside of the urban centre.  The growth of immigration will enhance the number of small sized enterprises as ―new Canadians‖ have always pursued the entrepreneurial dream.

Weaknesses:

 The expansion of large corporations and ―mega-stores‖ will make it difficult for small enterprises to survive.  Lack of skill, knowledge and experience by young entrepreneurs may lead to the closing of small sized enterprises.

43  Cutbacks in government social programs may lead to reduced public sector support (i.e., grants) for the expansion of small sized enterprises.  The fact that the more senior sector of society may lack computer skills may limit the magnitude of the type of small sized enterprises created by the younger sector of society.  The diversity of experiences and services offered by large corporations will entice society, particularly the ―haves‖ to experience the services of larger enterprises.

Opportunities:

 The trend of ―contracting out‖ by the public sector will present some opportunities to small sized enterprises.  The fact that more and more Canadians are becoming higher educated will aid in the creation of new, innovative small sized enterprises.  Mass media bombards us with new ideas, new experiences and new knowledge.  ―Downsizing and amalgamation‖ will cause loss of public sector jobs and will lead individuals toward creating small sized enterprises.

Threats:

 Inflation and rising costs may limit the spending power of society and the potential to experience private sector small sized leisure, recreation and sport enterprises.  The lack of discretionary income may limit the amount allotted to spending on small sized leisure, recreation and sport enterprises.  Since the 1970s, the start of each decade has experienced an economic recession. This trend may threaten parts of the next 20 years, possibly, the onset of the 2010s and the 2020s.  The ongoing threat of terrorism has hindered the growth and existence of many small sized tourism enterprises.

44

CHAPTER-5

COMAPARATIVE ANALYSIS OF SPORTS INDUSTRY IN INDIA AND CANADA

45 5.1) About Sport Sport – from games and physical activity to organized competitive sport – has an important role in all societies. For the individuals, it enhances fitness, improves general health and enables a person to be self – confident. At the national level, sport and physical education contribution to economic and social growth, improves public health, and bring different communities together. Indian Sports: The sports goods industry of India has its roots in Sialkot, Pakistan. When India was partitioned in 1947, many of Sialkot‘s skilled Hindu craftsmen migrated across the border into Punjab, setting in Jalandhar, where the Indian sports goods industry is now based. The Indian sports goods industry has expanded to include the areas of Meerut, (Uttar Pradesh) and Gurgaon, (Haryana). In the recent years, India is hosting a large number of international events. Since Delhi hosted the Commonwealth Games in 2010, the prime focus of the government is on infrastructure development including transportation, power, etc. Sports retailing has boosted the manufacturing industry in countries like India and China Which are global manufacturing hubs for sports products. Event Organized by India Cricket World Cup 2011 Commonwealth Games 2010 Men‘s Hockey World Cup 2010 Commonwealth Youth Games 2008 Indian Popular Federation: BCCI is the most successful and popular federation in Indian sports The BCCI is the most active Indian federation and the richest cricket Board in the world. It has played a major role in popularizing the game not only in India but also globally, and in involving corporate, large business houses, the entertainment industry and multinationals in this game. It is one of the most successful federations in roping in manufacturers and retailers of sports goods

46 into the game cricket. Apart from the usual formats (test matches and one – day matches), it has come up with innovative formats such as the T – 20 (twenty-over game), BCCI Corporate Trophy (September 2009), and most importantly, the IPL (Indian Premier League) which was launched in 2008. Companies like Reebok India Company, Puma Sports India Pvt. Ltd, Nike India Pvt. Ltd, Sports Lifestyle Pvt. Ltd, Shiv Naresh Sports Pvt. Ltd., Lotto Sports Italia S.P.A, and Sports (Future Group) are involved in sports goods production, distribution, sourcing, retailing, branding, promotion and sponsorship. 5.2) Top five Indian sports manufacture company:  Metco Sport Private Limited  National Sports  Stag International  Monica Sports Industries  Bhalla International

Some of the details regarding these top companies in the sport goods sector in India are given below: Sr Company Situated and Sports Products Sports . name Industry Produce Goods N experience Manufactur o. ing OR Export 1. Metco Sport  Meerut in Uttar Cricket Equipment, Sports Private Limited Pradesh Sports Mat, Goods  More than 60 Goal Posts, Manufacturi years experience Athletics Equipment, ng  Brand name is Sport Nets, ―Metco‖ Pool Table, Snooker and billiards table, and Table Tennis Tables 2. National Sports  City of Meerut Fitness Equipments, Sports  55 years of Cricket Equipment, Goods experience Carry Bags, Manufacturi Swimming ng and Accessories, Export more Gymnastics than 50

47 Equipment, countries Physical Education Equipment, Tennis Equipment, Athletics Equipment, Rugby, Netball, Basketball Rings, Goal Posts, Sport Nets and Speed Training Equipment 3. Stag City Meerut Archery, Sports International Hockey, Goods Badminton, Manufacturi Athletics, ng Gymnastics, Weight Training, Tchoukball, Basketball, Carom Board, Table Tennis, Goal Posts, Sport Mats, Inflatable balls, Flooring and Training Equipment 4. Monika Sports  City of Jalandhar Basketball, Sports Industries in Punjab Football, Goods Netball, Manufacturi Rugby Ball, ng and Soccer Ball, Export in Baseball Gloves, different Baseball Bat, countries Baseball, Hokey Turf, Sticks, Complete Range of Boxing Equipment

Information about the Manufacture Place The sports goods industry of India has its roots in Sialkot, Pakistan. When India was partitioned in 1947, many of Sialkot‘s skilled Hindu craftsmen migrated across the border into Punjab, settling in Jalandhar, where the Indian

48 sports goods industry is now based. The Indian sports goods industry has expanded to include the areas of Meerut, (Uttar Pradesh) and Gurgaon, (Haryana). Most of India‘s sports goods are exported to the United Kingdom, The United States of America, Germany, France and Australia. The industry is mainly concentrated in Jalandhar and Meerut. Sports goods industry of Jalandhar In Jalandhar, about 60 per cent of the sports goods that are manufactured comprise of different kinds of inflatable balls. Besides inflatable balls, the other sports goods that are largely manufactured are badminton racquets and shuttle cocks, cricket bats and balls, different kinds of gloves and protective equipment. A Jalandhar rank second in India in the rate of urbanization and has the highest density of population at 598 persons per square km, as per the 1991 census. The reason for this is growing industrialization. Industrial production of sports goods began on a small scale during the late forties. Over the years, the sports goods industry has grown at an impressive rate and of late Indian sports goods are also exported to different countries. Rough estimates suggest that today Jalandhar has more than one hundred major industries and about 20,000 small-scale industries with a most conservative estimate of an turnover of approximately Rs 450 crores. World’s Top Manufacture Company Adidas Apeks AEO sports Aqua lung Amer sports Deelux Andl

5.3) Canadian Sports Industry The Canadian sporting-goods industry has grown and diversified a great deal in the past 60 years, as a result of the increasing amount of leisure time available to Canadians. As early as 1929, 30 manufacturers, employing 1212 people,

49 produced goods (eg, skates, lacrosse equipment, snowshoes) worth $4.8 million. List of the game to played by ball  Basketball  Soccer  Baseball  Football  Tennis  Rugby  Lacrosse  Squash  Raquetball  Golf  Volleyball  Dodgeball  Tetherball  PingPong  Pool/Billiards  Water Polo

50

Curling: this is a sport I had never heard of before I came to Canada. To me, curling is like playing darts horizontally on ice…! Basically, curling is a sport in which teams take turns sliding heavy, polished granite stones down the ice towards a target. This sport is most popular in the prairies. Baseball: although more strongly associated with the United States, baseball is also popular in Canada. The only Major League Baseball team are currently The Toronto Blue Jays, since the Montreal Expos moved to Washington. Lacrosse: this is a true original Canadian sport, since First Nations started playing it some 500 years ago. Today, it is a widespread sport among autochtones and Canadians of all backgrounds, and it has been recognized as Canada‘s official summer sport. Football: not soccer (one of Canada‘s weak points!), but US style football. Canada has eight football teams: the B.C. Lions, Calgary Stampeders, Edmonton Eskimos, Saskatchewan Roughriders, Winnipeg Blue Bombers, Toronto Argonauts, Hamilton Tiger Cats, and Montreal Alouettes. Basketball: it is a popular sport in Canada, especially in Nova Scotia and Southern Ontario. Currently, the only professional team is the Toronto Raptors. Cricket: although not as big as in India or Pakistan, cricket was the most popular sport in Canada until the early 20th century. It is still played today by a number of fans. The match between the USA and Canada the oldest international fixture in cricket, having first been played in 1844. Auto Racing: who hasn‘t heard of Gilles Villeneuve, the famous Grand Prix Driver? It was a huge deal when the Circuit Gilles Villeneuve in Montreal has been dropped from the Formula One calendar in 2008, but it is scheduled to return in 2010. Indeed, the Canadian Grand Prix was the most watched Formula One GP in the world in 2005.

51 Running: although it is not really a professional sport in Canada, running is something that a lot of Canadians enjoy doing. It is a popular activity and it‘s not rare to spot courageous soul jogging in a blizzard (I even took a picture once!). Marathons, semi-marathons and various races are also often organized to fund raise for various charities and participation is surprisingly large. Field Hockey: what do you do in the summer? You play field hockey, a fun substitute to ice hockey, very popular in many countries including Canada. Ice Hockey: Canada‘s official pastime is best watched live, among other fans who will cheer during each fight. Many stereotypes are associated with hockey, starting with the toothless bloodshot-eyed players cliché. But in fact, the sport is surprisingly graceful. It is also fast-paced and quite fascinating, not only for the game itself but for the skating skills of the players.S

Major sports of Canada  Ice Hockey  Curling  Skiing  Rugby Union  Canada Sporting Success

Canada has dominated ice hockey at the Winter Olympic Games  Athletes from Canada  Donovan Bailey (athletics)  Wayne Gretzky (ice hockey)  Jacques Villeneuve (F1 driver)  Canada Sports trivia

52 Canada at major events  Canada at the Summer Olympics  Canada at the Winter Olympics  Canada at the Commonwealth Games  Canada at the FIFA World Cup

5.4) Top 10 supplier of Canadian sports industry

Athletics Kits [India] Stranger Sports Wears are renowned manufacturer and supplier of world class Athletics Kits at affordable prices.

Badminton Rackets I [India]

Gymnasium Items [India]

Ice skate blade guard [China]

Magnum Pool Table [India] Accessories list for Magnum Pool Table 1. Folding cues imported 4 Nos.

2. Canvas dust cover 1 Nos. 3. Cue stands

53 Playing Kits [India]

Rugby Ball [India]

boat life jackets [China]

Snooker Table (SBA Snooker) [India]

"Canadian Sports Bag Manufacturers & Suppliers "

4875 Des Grandes Mr. Holiday Group Inc. Holiday Group Inc Prairies St. Leonard, Telephone : +1-514- Quebec H1r 1x4., 325-0660 Quebec, - H1R1X4, Fax No : +1-514-325- Canada 4259

Halton Distribution 2394 - 46th Avenue, Mr. George Lutfy Lachine, Québec, H8t Telephone : 514-316- 2p3, Quebac, - 0000, 3544 Canada

International Fashion 15-525 75th Ave Sw, Mr. Norman Brennan

54 Boutique Maternity Canada Telephone : 001-403-

Clothes 4578120

Cochrane Street Mr. Keith Butler K W Trading Whitby, Canada Telephone : 1-647- 928-9856 Fax No : 1-416-438- 4950

Licence For Style 165 E Beaver Creek Philip Lam Road,Unit 35 - Telephone : +1-905- Richmond Hill, Ca, 886-1988 Ontario, - L4B 2N2, Fax No : +1-605-214- Canada 3840

55 Chapter-6 Import & Export Procedure and Documentation

6.1) Overview

56 6.1) overview Sports industry is a market in which people, activities, business and organization involved in producing facilitating, promoting, or organizing any activity, experience, or business enterprise focused in sports. it is the market in which the business are product offered to its buyer are sports related and may be goods, services, people, places, or ideas.

The sports goods industry is in small scale sector which is highly unorganized and primarily established in utter Pradesh and Punjab (India) since 1947, after partition of India/Pakistan.

That the sports goods are produced totally biased on ancestral craftsmanship by the artisans and craftsman hence the industry is not so much mechanized even in present scenario of modernization globally. The major‘s production of sports goods industry is totally hand-crafted and made in accordance to national/international standards which are used in India market and also exported to various countries of the world due to its quality of craftsmanship.

That this industry provides employment 4 lakhs of skilled, semi-skilled and unskilled labor from urban and rural areas as specially from SC/ST and backward class and economically weaker section as well widows and disabled person of society but free from child labour.

Indian sport accessories marketed has experience strong growth in recent years. The Indian sports equipment market has total revenue of $ 2069.1 million in 2009. Representing com-pound annual growth rate of 7.1 % for the period spanning 2005-2009. The performance of the market is forecast with an anticipated of 5.5% for the five-year period 2009- 2014,which is expected to drive the market to a value of $2705.1 million by the end of 2014.

57 Key highlight  Market analysis of India fitness industry- market analysis of India‘s sports equipment industry by product types, market players etc.  Competitive analysis of the India sports equipment industries vis a vis asia pacific sector  Market forecast of indies‘ sports equipment industry by revenue till 2014  Import duty on sports equipment in India and pricing structure for treadmill equipment  List of prospective buyers  List of fitness related tread shows in India  Covered more than 13 company profile covering their performance, key financials, swot analysis and investment analysis

In the recent year, India is hosting a large no. of international event since Delhi hosted the commonwealth game in 2010, the prime focus on the government is on infrastructure development including transportation, power etc. Sports retailing has boosted the manufacturing industry in countries like India. Which are global manufacturing hubs for sports products.

Moreover India is organizing major sporting events since 2008, like cricket world cup 2011, Commonwealth games in 2010, man‘s hockey world cup 2010,the commonwealth youth games 2008 to names a few which increase the government and private sector focus on the sector. It shows Indies‘ active participation in international sporting events such as Olympic Games, commonwealth game, Asian games and cricket world cup.

58 6.2) MAJOR PARTICIPANT IN INDIA SPORT INDUSTRY

COMPANY NAME PRODUCTS Metco sport private Cricket Equipment, Sports mat, Goal Limited posts, Athletics Equipment, Sport Nets, Pool table, Snooker and Billiards table and Table tennis table.

National sport Fitness Equipment, Cricket Equipment, Carry bags, Swimming Accessories, Gymnastics Equipment, Physical education equipment, Tennis equipment, Athletics equipment, Rugby, Netball, Basketball rings, Goal Posts, Sport Nets and Speed training equipment.

Stage international Archery, Hockey, Badminton, Athletics, Gymnastics, Weight training, Tchoukball, Basketball, Carom board and Table tennis, Goal post for different games, Sport mats, Inflatable balls, Flooring and Training Equipment, Dress materials for sports like sports footwear, Track suits, T-Shirts, and shorts.

Monica sport industries Basketball, Football, Netball, Rugby ball, Soccer ball, etc..... and their accessories. They offer other items like baseball Gloves, Baseball bat, Baseball, Hockey turf and sticks and complete range of Boxing

59 Equipment.

Bhalla international Whistles and Referee Accessories, Tchoukball Frame, Tents and Tunnels, Table tennis equipment, Carrying and storage accessories, Skipping ropes, Gymnastics equipment, Primary Education & accessories, all types of goals, Soccer and Football Accessories, Coaching Clipboards, Boxing equipment & accessories, Board Games, Beach toys are some of them.

Hans Raj Mahajan Sport Balls, Cricket Accessories, Sports Worldwide shoes, Boxing equipment & accessories, Hockey accessories, Hurling, Baseball Bat, Cycling Accessories, Tri Kid Scooters, Skate Boards, and Swimming Accessories.

Em Cee Cee Sports Cricket Accessories, Boxing Accessories, Agencies Pvt. Ltd. Sports Balls, Sports Shoes, Badminton Rackets, Roller Skates, Skateboards, Wooden Hockey sticks.

Meerut Gym & Gymnastic All type of Gym Equipment, All type of Works Gymnastic Equipments, Athletic Equipment, All type of children park Equipments, All Synthetic Sports Surfaces.

Legend International Rugby Balls, Soccer ball and Footballs, PU

60 Footballs, Pvc Soccer Ball, tic Synthetic Soccer Balls, Vintage Ball, Volleyballs, Basket Balls, Sports wears, Sports Shoes, Bags and Accessories, Protection Equipments Handballs, Field Accessories.

Sports and Sports Training Bibs and Vest, Track & Field International Equipment, Agility Speed Training Equipment, Badminton Racquets, Boxing Equipment, Carrom Accessories, Chess Game, Sports Balls, Fitness Equipment, Gymnastic Equipment, Hockey Equipments, Sports Nets, Rhythmic Gymnastic Equipment, Table Tennis, Cricket Equipments, Sports Wear, Sports Miniatures.

6.3) MAJOR PARTICIPANT IN CANADA SPORT INDUSTRY

COMPANY PRODUCTS Vaughn Custom Sports Goal pads, Arm & Chest pads, Catch Custom Canada ltd Gloves, Blocker Gloves, Goal Masks, and Goal pants, Goal Sticks, Goal Cups, Goal Bags, Accessories.

Viking Alexander Metal Heavy Duty hockey Goals, Gymnasium Products Ltd. Mats and jumping pits, Volleyball end post, Hand Trucks, Tennis posts, Basketball

61 Backstop, Scoreboards and Short Timers, Net Ball posts, Clamps, Ball Dollies, Casters, Divider Curtains, Floor sockets and plats, Balance benches, Cafeteria Table, Stages, Badminton post, Floor sockets.

Rustic Outdoor Supplies Sporting Goods, Pet Supplies, Harness, Pet Inc. Food, Humane Animal Traps-Canoes, Snowshoes, Dogsleds, Packsocks, Wholesale/Retail Convas Product.

Laurentian Gymnastic Badminton, Ballet Bar, Benches, Field & Industries Ltd. Team Sport Goals, Mats &Wall Padding, Protective Netting, Soccer & Football, Tables, Track & Field, Volleyball, Ball Carriers, Basketball, Bleachers & Grandstands, Floor sockets, Player Benches, Scoreboard, tennis, Trestles.

Genesport Industries Boxing, Judo & Karate Equipment, Tatamis Wrestling, Football, Gym Equipment, Yoga, MMA.

Sherwood- Drolet Corp Ltd Hockey Sticks, Sherbrooke, Quebec, Bags, Bottles, Pucks, Mini sticks.

Spieth-Anderson Gymnastic apparatus, Mats & Floor International Inc. Surfaces, Wrestling mats, Volleyball, Tennis & Badminton Standards, pre-school &

62 development equipment, Wall padding, Sports Nets & Aluminum Goals.

H D Brown Enterprises Athletic Apparel, Tennis, Squash, Badminton, Golf, Street Hockey, Baseball, Soccer Accessories, Softball.

Watson Jack Sports Inc Archery, Badminton. Baseball, Basket ball, Cricket, Field Hockey, Floor hockey, Football, Golf, Handball, Hockey, Lacrosse, Rugby, Shuffleboard, Soccer, Tennis, Table tennis, Volleyball, Squash and racquetball, Boxing, Gymnastic, Letherball, Winter sport.

Frikon Industries Ltd. Sporting goods, Screen Enclosures, Pop-up Screen Rooms, Outdoor Games, Street Hockey Accessories, Skate Boards & Helmets, Snow Boards & Helmets, and Inflatibles.

63 6.4) INDIA'S FOREIGN TRADE POLICY 2009-2014 Meaning of Foreign Trade Policy In every five year the Union Commerce Ministry, Government of India declares the Integrated Foreign Trade Policy. It's also called EXIM Policy. This policy modifies & updated every year. Any new Schemes implement on the 1st April. On August 28, 2009 announced. The EXIM policy for the time period 2009-2014.

Objectives of FTP for 2009-2014:  The main aim of this policy is turn round failing trend of exports.  To increase India's exports of goods and services near 2014.  The future purpose of this policy is to twice India's Share in global products trade near 2020.  Simplification of procedure for application for gating various benefits.  To set the strategies and policy for the measures the growth of exports. With a "mix of measures including financial incentives, institutional Changes, procedural rationalization and efforts for increase market access all over the world and diversifications of export markets etc are to promote exports. Targets:  Target Export for 2010-11 : $200 Billion  Target Export Growth 15% for after that two year and 25% for next. EPCG Scheme:  Responsibility under EPCG scheme uninterrupted.  In export sector aid technological up gradation & introduced this new Scheme at Zero duty.

64  Under EPCG Scheme Export duty on import of spares & moulds etc has been decreased by 50%. Announcements for FPS, FMS & MLFPS:  FPS added 26 new markets in this plan.  Under FMS (Focus Market Scheme) Plan raised incentives from 2.5% to 3%.  Focus Product Scheme (FPS) incentive rise from 1.25% to 2%.  Additional products included under FPS  Under Market Linked Focus Product Scheme (MLFPS) extended of new products like pharmaceutical, textile fabrics, rubber products, glass products, auto components, motor cars, bicycle and its parts etc.  Under FPS advantage extended for export of green product and various products from the north east. Towns of Export Excellence (TEE): The following cities have been known as towns of export excellence Handicrafts : Jaipur, Srinagar and Anantnag Leather merchandise : Kanpur, Dewas and Ambur Horticultural merchandise: Malihabad Extension of Income Tax Exemption to EOU and STPI: Under Income Tax Act: Income tax exemption to 100% EOUs and to STPI units. Extension of ECGC: In December, 2008 the adjustment assistance scheme provide enhanced ECGC cover 95%, to the negatively affected sectors, and this is continue till the march, 2010. Announcements for Marine Sector  Under EO & EPCG Scheme Fishing Trawlers, boats, ships and other related items shall not be approved for this exemption.

65  Provide additional flexibility Plan for the marine sector under Target plus Scheme / Duty Free Certificate of Entitlement (DFCE). Announcements for Gems & Jewellery Sector:

 On Gold Jewellery exports duty drawback is allowed.  Planning to establish "Diamond Bourse‖ with an aim to create India and International trading centre announced.  The perimeter in case of personal carriage has also been increased from US$ 0.1 million to US$ 1 million for export encouragement tours.  Extended period of 60 days to 90 days for re-import of exported gems and Jewellery Products, for contribution in exhibitions in case of USA. Announcements for Leather Exports:  In leather sector is approved re-export of unsold imported new materials and semi finished Leather of payment of 50% valid for export duty. Announcements for Tea Exports:  Under advance authorization scheme for export of tea is 100%. It has been decreased from the existing 100% to 50%.  Domestic Tariffs Area (DTA) increase sale boundary of instant tea from 30% to 50% by EOU. Announcements for Pharma Exports:

The advance authorization issued for Pharma exports obligation period improved from existing 6 months to 36 months.

 EOUs (Export oriented units) have been allowed to sell products that in its place of 75% these units can sell up to 90% of their products in the domestic markets.

66  Under the EOUs scheme also to procure finished goods for consolidation with their manufactured goods.

 EOUs also allowanced CENVAT credit facility for the education cess on DTA (Domestic Tariff Area) sale.

 Under the Advance Authorization Scheme for value added manufacturing (VAM) export minimum 15% value addition on imported goods (inputs).

 DEPB (Duty Entitlement Passbook) also Advance Authorization include factoring of custom duty on fuel payment of customs duty of export obligation under Advance Authorization/ DFIA or EPCG Authorization was allowed in cash only but now these payment can be done in the way of debit of duty credit scripts.

 Another facility duty of samples products that is free import of samples by exporter.

 Most benefit that greater flexibility has been permitted to allow

 Conversion of shipping bills from one export promotion scheme to other scheme.

 To reduce transaction costs, dispatch of imported goods directly from the port to the site has been allowed under advance authorization scheme for deemed supplies.

 Free the sale certificate has been simplified and the validity of the certificate has been increased from 1 year to 2 year

Reduction in Transaction cost:

Maximum applicable fee for 18 authorization/licenses application has been reduced Rs. 100000 from the existing Rs. 150000 (for manual

67 applications) and Rs. 50000 from the existing Rs, 75000 (for Electronic Data Interchange applications).

 Making payment of applicable excise duty disposal of mfg. scrap will be allowed and under advance authorization consider fulfillment of export obligation and EPCG ( Export Promotion Capital Goods) scheme.

 Licenses for the import of sports weapon will be issued now by regional authorities provided a NOC (No Objection Certificate) is issued by ministry of sports and youth affairs.

 Medical device industry-the validity of the certificate has been increased from 1 year to 2 years.

 For the Automobile Industry their R&D establishment will be allowed free import of reference fuels (Petrol and Diesel).

 Exports promotion councils and commodity Boards have been advised to issue RCMC (Registration-Cum-Memberships Certificate) through a web based online system.

 In cases of old authorization has been cancelled and a new authorization has been issued in lieu of the earlier authorization and for the new authorization application fee to payment of minimum fee Rs.200.

 Now, restricted items can be imported now against transferred DFIA (Duty Free Import Authorization) as the present DFRC (Duty Free Replenishment Card) scheme.

6.5) Export Procedure and Documentation Export Procedure: There are 18 steps for export procedure.

68  Exports have to examine export order.  Exporters have to place an order with the supplier as well as factory.  Supplier has to make arrangements for inspection and also excise clearance for the goods.  Supplier has to dispatch of inspection certificate, Railway receipt, and packing lists goods to the export division.  They have arranged insurance clam.  Export Division/Department has to prepared document and dispatched to Carrying and Forwarding Agent with the inspections details.  Carrying and Forwarding Agent taking delivery of goods and place in warehouse.  Carrying and Forwarding Agent takes documents for Clearances.  If documents are clear next procedure for physical examination of goods. After physical examination next process done by dock Supervisor. They gave duplicate bills to Carrying and Forwarding Agent for present to loading of goods from dock.  Prevention officer granted the approval 'Let Ship'. After that shipping Bill given to the agent of the Company.  After Loading Goods, Carrying and Forwarding Agent pays port charges and take Receipt (Exchanged of Bills of lading)  All documents forwarded to the Exporter.  Now, Exporter takes steps for original certificate.  Shipment information is send to Exporter.  Export document present to bank for negotiation.  Documents are critically inspecting form bank side. If they found negotiation, they agree to issue certificate.  Exporter claim for repayment from central excise.

69  Exporter Starts actions for claiming export remunerations.

Briefly description Export Procedures 1. The first step is to examine the export contract and/or the credit to ensure that the terms and conditions stipulated in these documents are in accordance with those originally propose, and/or the amendments subsequently agreed to, by the exporter. 2. Instruction to Factory/Supplier: A delivery note (in duplicate) containing the specifications and other details of the order is sent to the factory for the manufacture and dispatch of export cargo to the shipment the port of shipment. 3. Pre-Shipment Inspection and central Excise (Clearance): As soon as the goods are ready for dispatch the factory office arranges to complete the following formalities: o Make out an application to the export inspection agency for conducting pre-shipment and quality control inspection. o Secure clearance of export consignment from Excise Authorities. o Dispatch of consignment to the port of shipment by rail and obtaining railway receipt or by road and obtaining lorry way bill. 4. The factory office prepares a 'Dispatch Advice' and sends it to the export department along with following documents. o Railway Receipt to issue an insurance policy in duplicate o AR4 form (original and duplicate copies) o Duplicate copy of Delivery note duly signed o Certificate of Inspection 5. On receipt of these documents the export department makes an application to the Insurance Company for marine insurance cover

70 and requests them to issue an insurance policy in duplicate with appropriate risk coverage. 6. At the same time, the export department prepares a note for the forwarding agent at the port of shipment giving detailed instructions regarding the shipment of the consignment. This note is sent to the forwarding agent with the following documents: o AR-4 Form (original and duplicate copies) o Commercial Invoice o packing List (one copy) o GR Form (original and duplicate copies) o Customs-Invoice (where required in the importing country) o Original Letter of Credit/Contract o Quality Control Certificate (0) o Purchase Memo o Railway Receipt/Lorry-way Bill 7. On receipt of the documents, the Forwarding agent takes delivery of the consignment from the railway station or from the road transport at the port of shipment and arranges its storage in the warehouse. 8. Forwarding Agent prepares four/five copies of the relevant 'Shipping Bill' and presents it along with the above mentioned documents (as in Step 6) to the Export Department of the Customs House. The Customs Appraiser examines these documents and appraises the value having regard to the following considerations: o That the value and the quantity declared in the shipping bill is the same as in the export order/letter of credit. o That the formalities regarding exchange control, pre- shipment quality control inspection etc. have been duly completed. After examination of documents and appraisement of value, the Customs Examiner/Appraiser

71 makes an endorsement on the duplicate copy of the shipping bill giving directions to the Dock Appraiser about the extent of physical examination of the cargo to be conducted at the Docks. All the Documents, except GR(O) Form, the original Shipping Bill and a copy of the Commercial Invoice are returned to the Forwarding Agent to be presented to the Dock Appraiser. 9. After taking delivery of documents from the Export Department the Forwarding Agents presents the Port Trust Document (Port Trust copy of Shipping Bill at Bombay; Dock Challan at Calcutta and Export Application at other ports) to the Shed Superintendent of the Port and obtains carting order for bringing the export cargo to the transit shed for physical examination by the Dock Appraiser. He then presents the following documents to the Dock Appraiser for conducting Physical examination of the cargo: o Duplicate triplicate and export promotion copies of the Shipping Bill. o Commercial Invoice o Packing List o AR-4 Form- original and duplicate copies o Inspection Certificate (0) o GR Duplicate The Dock Appraiser after conducting physical examination records examination report and makes "Let Export Endorsement" on the duplicate copy of the Shipping Bill and hands it over to the Forwarding Agent along with all other documents to be presented to the Preventive Officer of the Customs Department who supervises the loading of the cargo on Board the vessel. 10. The Preventive Officer makes an endorsement 'Let Ship' on the duplicate copy of the shipping Bill. The duplicate copy of the Shipping Bill is then handed over to the agent of the shipping

72 company. This constitutes an authorization by the Customs to the shipping company to accept the cargo on board and vessel. 11. After the goods are loaded on board the vessel, the Captain of the ship issues a receipt known as the "Mate's Receipt" to the Shed Superintendent of the port. The Forwarding Agent then makes a payment of the port charges and takes delivery of the Mate's Receipt. He presents the Mated Receipt first to the Preventive Officer who records the Certificate of Shipment on all the copies of Shipping Bill, original and duplicates copies of AR-4 form and returns the Export Promotion copy, a copy of Drawback Shipping Bill and duplicate AR-4 to the Forwarding Agent. The latter then presents the mate's Receipt to the Shipping Company and requests it to issue the Bill of Lading (2/3 negotiable and a few non- negotiable copies as required). 12. Dispatch of Documents by Forwarding Agent to the Exporter: After obtaining the Bill of Lading from the Shipping Company the Forwarding Agent sends the following documents to the exporter. o One copy of the commercial invoice duly attested by the Customs' o Export Promotion copy of the Shipping Bill o Drawback copy of the Shipping Bill o Full set of clean on-board bill of lading together with a few non-negotiable copies o Original letter of credit/contract order o Copies of Customs Invoice o AR-4 form (duplicate) and Gate Pass o GR Form (Duplicate) 13. Certificate of origin: On receipt of the above documents, the exporters make an application to the Chamber of Commerce and obtain a 'Certificate of origin' in duplicate.

73 In case of export shipment to countries offering GSP concessions, the GSP Certificate of origin will have to be procured by the exporter from the concerned authority like Export Inspection Agency or others. 14. Shipment Advice to importer: The exporter then sends 'Shipment Advice' to the importer intimating the date of shipment of the consignment by a named vessel and its expected time of arrival (ETA) at the destination port. The following documents are also sent along with the shipment advice so that the importer may start making arrangements for taking delivery of the consignment: o A non-negotiable copy of the Bill of Lading o Commercial Invoice o Packing List o Customs Invoice 15. Presentation of Documents to Bank: The exporter presents the following documents to the bank for negotiation/collection: o Commercial Invoice-(with requisite number of copies) o Certificate of origin-two copies o Customs Invoice-(with requisite number of copies) o GR Form (Duplicate) o Packing List- (with requisite number of copies) o Full set of Clean-on-board Bill of Lading negotiable plus non negotiable copies as required. o Original Letter of Credit / Export Contract o Additional copies of the Commercial Invoice for Certification by the Bank o Bank Certificate in the prescribed form in duplicate o Marine Insurance Policy/Certificate o Bill of Exchange o Quality Control/Pre-shipment Inspection Certificate

74 16. At the Bank, these documents are processed in the following manner.  The documents are examined with reference to the term and conditions of the original order and also that of the letter of credit.  A set of the following documents is transmitted to the bank of the imported by the first air mail followed by the second set of these documents by the second air mail to ensure that in case the first set is lost or delayed, the importer or his bank can take delivery of the consignment on the basis of the second set of documents. o Commercial Invoice o Customs Invoice o Packing List o Certificate of Origin o Negotiable Bill of lading o Insurance Policy Certificate o GSP Certificate of Origin (in necessary) o Bill of Exchange o Certificate of Inspection  The exporter receives payment against the above documents.  Duplicate copy of the GR form is transmitted to the Exchange Control Department of the Reserve Bank of India on receipt of payment from abroad.  The original copy of the Bank Certificate as applied for by the Exporter along with attested copies of the Commercial invoice are returned to the exporter. 17. Rebate of Central Duty & Duty Drawback: Simultaneously, the exporter files a claim with the Maritime Collector of Central Excise, for rebate of Central excise duty or for getting credit in his

75 Bond Account and also for duty drawback in accordance with the procedure laid down in this regard. 18. Export Benefits: The exporter initiates action for claiming benefits against export made by him as per as the procedure outlined under the Policy for Registered Exporters.

Export documents:

Following documents are required for export business.

1) Commercial Invoice:

It is basic document. They give us full details about the shipment. this document is used for foreign trade. it is used for declaration given by the person or business that the exporting items across international border. also include invoice is true and signature. it is used for custom purpose and calculates tariffs.

Check list of items and details are below:

 Name and address of shippers invoice and date

 Buyer‘s order no. seller's order no.

 Name and address of customer(buyer)

 Insurance details

 Payment terms

 Packages declaration

 Quantities of commodity, description of commodity

 Net weight and gross weight of units.

 Packing specification

76  Bill of lading no

 Import license no and date

 Letter of credit no and date

 Performa invoice

2) Packing list:

Exporter has to prepare packing list. In the packing list details about description of goods quality per package net and gross attaché gross weight, measurement number of packages etc. It is helpful to receiver to know which item carrying in shipment.

3) Marine Insurance Certificate:

This certificate is document of shipment of goods in trade insurance under taken to cover loss of goods damage of goods due to hazards in shipment this certificate required cover all risk and satisfied the condition of letter of credit.

4) Bill of Exchange:

Bill of exchange is similar to check and promissory note it is a legally defined unconditional order in righting address to one person to another person.

5) Letter of credit:

Letter of credit is a written under taken by banks. The company issues a seller of goods which gave details that the issuers will pay seller for goods the seller delivers to third party buyer. It‘s most used method in international transaction. In international business letter of credit, confirmed and unconfirmed letter of credit, with resource and without resource, sight and usance, transferable, straight and resources and

77 without resource, revolve letter of credit, green clause credits, back to back letter of credit.

6) Bill Of Lading:

Bill of lading is important document between the shippers of a particular goods and details about quantity and type of goods carried. These bill issued by shipping company. Details in bill of lading are;

 Acknowledgement of cargo delivered for transportation.

 A contract of freightment between the shipper and the carrier specifying their respective responsibility and obligation.

 A document of little to goods and provides interested parties including banks with title to the goods mentioned terrine.

7) Export Inspection Certificate:

It is used by government agency. It‘s an entrusted the task of inspection of goods. It‘s an import for importer because the quality of seller is agreed with the contract. In India it is compulsory to inspection of export items.

8) Shipping Bill:

Shipping bill is main document required by custom authority. It contains details about description of goods, number of packages, quantity of goods defined by sea custom act. Stamped in shipping bill, cargo is allowed to cart to port shed and docks. It is used to transportation from one country to another country.

9) Consular Invoice:

A printed form of contains details particulars, description, quantity, grade and value of sellers shipped. it is certified by import country.

78 10) Certificate of Origin:

Certain nation required a signed statement as to the origin of the export item. Such certificates are obtained trough a semi-official organization such as a local chamber of commerce.

11) Inspection Certificates:

Some purchasers and countries may require a certificate of inspection attesting to the specification of the goods shipped, usually performed by a third party. It has been obtained from independent testing organization.

12) Dock Receipt and Warehouse Receipt

It is used to transfer accountability when the export item is moved from by the domestic carrier to the port of embarkation and left with the international carrier for export.

Export Benefits:

 Market diversification

 Additional source of revenue

 Use of excess production capacity

 Leverage on purchasing power

 Business operational stability

 Product life cycle extension

 Product improvement

 Lower unit cost

 Economics of scales

79  Minimize the effect of sectional fluctuation in sales

 Untapped market

6.6) Import procedure and documentation

Import procedure:

Import trade procedure differs from country to country depending upon the existing policy of that country. The general procedure for import trade in India involves the following stages:

Step-1: Making Trade Enquiry and Receiving Quotation Offer:

The first stage in the import trade is to make trade enquiry from the intending exporters or their agents. An enquiry is a request by the intending importer to supply the following information:  Specification of goods such as quality, size, design, etc.

 Unit price.

 Quantity of goods available.

 Terms of shipment

 Terms of payment

 Delivery schedule

In response to his enquiry, the importer may receive different quotation offers, for different suppliers.

Step-2: Obtaining Import License:

Where the importer an item which import license is required. He must first obtain import license. To obtain an import license, the intending

80 imports makes an application in prescribed form and submits it to the licensing authority along with the following documents:  Treasury receipt for import license fee  Certificate of the value of goods imported by the applicant in the previous year  Income tax verification certificate

Step-3: Obtaining Foreign Exchange:

After obtaining the import license, the intending importers makes an application in the prescribed from the foreign exchange management act and submits it to the exchange control department of RBI after getting it forwarded by his exchange bank.

Step-4: Placing the Indent Or Order: After obtaining the import license and requisite amount to foreign exchange, the importer should place the order directly or through ―indent Houses‖ An indent is an order sent abroad for the import of goods. Step-5: Arranging Letter of Credit:

As per terms of payment if the importer is required to arrange a letter of credit, the importer instructs his bank to issue a letter of credit. Depending upon the deposits or creditworthiness of the importer, the importer‘s bank may issue a letter of credit.

Step-6: Getting Shipping Documents:

In case of D/A (Document against Acceptance), importer gets the shipping documents on the acceptance of the bill. In case of letter of credit agreement, importer gets the shipping documents from his bank. Step-7 Appointing Clearing Agent:

81 After getting the shipping documents, the importer who does not want to complete further formalities in this regard himself, appoints clearing agent. Step-8: Function Performed By the Clearing Agent:  Getting bill of lading enclosed for delivery: when the ship arrives at the port of destination, the agent gets the bill of lading endorsed by the shipping company by his favor after making the payment of freight if not paid earlier.  Filling-up bill of entry: the agent is required to fill-up 3 copies of bill of entry. A bill of entry is a document which shows the details of goods imported and is used by custom authority for determines import duty.  Payment of dock charges: the agent is required to fill-up two copies of port trust receipt and to submit these copies along with three copies of bill of entry and necessary dock changes, to the landing office at destination port.  Getting custom clearance: the agent is required to submit one copy of port trust receipt and two copies of the bill of entry along with other required documents to the custom authorities and make payment of import duty.  Dispatching goods to importer by rail/road: after taking delivery of goods from the dock authority, the agent dispatches goods to his principal by rail or by road and receiver railway receipt or lorry receipt.  Sanding advice to the importer: after dispatch of the goods, the agent informs the importer about the dispatch of goods other related matters and sends railway receipt along with a statement showing his expenses and remuneration to the importer. Step-9: Taking Delivery of Goods from Railway/Carrier:

82 After receiving the advice from the clearing agent, the importer takes the delivery of goods from railway/carrier surrending railway receipt and carries them to his godowns. Step-10: Making Payment: The mode of payment for the importer depends upon the agreement between the importer and the exporter.  In case of documents against acceptance (D/A bills), the importer gets the shipping documents on giving the acceptance of bill of exchange and make the payment on the maturity date.  In case of documents against payments (D/P bills), the importer gets the shipping documents on making payment of bill of exchange.  In case of letter of credit, the importer gets the shipping documents after payment. Import Documentation: 1) Import Invoice The govt. of India announces the import and export policy of the country from time to time. one has to obtain a valid import license for the import of required quantity and value of goods by completing various formalities with the RBI and concerned authorities. License is the document which enables the importer to import goods up to a specified quantity and value from a specific country. 2) Bill of Entry It is a document which acts as a proof that the goods of stated value and description in specified quantity are being entered into the country from abroad. Three copies of these documents are prepared in which the importer has to give each and every detail of goods imported. Separate bill of entry forms are used for:

83  Free goods, i.e. those goods on which customs duty is not payable,

 Bonded goods or dutiable goods which are subject to payment of customs duty.

3) Bill of Sight

If the importer or his agent does not have details of the goods to complete the form of bill of entry, he has to file a document called bill of sight. The bill of sight gives him permission to examine the goods in the dock in the presence of customs officers and collect the detail about the goods to be recorded in the bill of entry form.

If the goods are not subject to custom duty, this bill of sight is converted into a free entry and delivery of the goods is given to the importer. 4) Dock Challan It is document which acts as proof of payment of dock charges on the imported goods. This document is issued by the dock authorities in the imported country to the importer. 5) Indent It is an order placed for importer of goods. It is sent to the exporter for supply of goods. It contains full information regarding the goods to be imported- quantity, quality, mode of packing and marking, period of delivery, mode of payment and other instructions regarding shipment and insurance etc. 6) Insurance Policy The insurance policy is issued by the insurance company to cover the risk of loss or damage to goods due to specified causes. if there is no insurance then the loss will have to be borne by the owner of the goods, the exporter or importer.

84 7) Letter of Advice

A letter of advice is also prepared by the clearing agent and sent to the importer stating that all the formalities for clearing the imported goods have been completed. Along with this letter, the clearing agent sends the railway receipt as proof of goods sent to importer as well as his statement of account for expenses incurred and commission charged.

Import Benefits:

 Help in improving economy

 To meet shortages

 For better living of standards

 Improving quality of production

 Comparative advantage: lower priced goods

 Many governments actively support trade relations

 Importing grants access to regionally exclusive resources

Various benefits stemming from trade agreements

85 Chapter 7

Supply chain plan

86 7.1) Supply chain management

Supply chain management is the management network of interconnected businesses, involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, work- in- process of inventory, and finished goods from point of origin to point of consumption.

The supply chain includes suppliers, distributors, retailers and customers. The customers are the main focus of the chain since the primary purpose of the existence of any supply chain is to satisfy customers need.

A characteristic supply chain may involve a verity of stages, these supply chain‘s stages are: • Customers • Retailers • Wholesalers/distributors • Manufacturers • Component/raw material suppliers. DIAGRAM OF SUPPLY CHAIN

87 7.2) "CANADA" Sports Products Manufacturers and Suppliers

1. Hollandia Sports Net Mfrs Ltd.

The company‘s products are Sports hockey, padding goals, net protectors, divider nets, soccer frames nets, tennis posts, windscreens, baseball nets, , safety nets, gym mats, box lacrosse frames, volleyball posts, badminton posts, cages golf nets, locker benches, handball goals, handball nets, gym div curtains, floor mats, soccer goals, lacrosse goals, baseball cage, golf cage, tennis nets, divider curtains. Its business type is wholesale\suppliers, manufacturer. Above company is established on the year of 2000. Their no. of employees worked around 50-100.

2. Force Sports Technologies Inc.

Product of the company is Roller Hockey & roller Jerseys. Its business type is wholesale suppliers of roller hockey and roller jerseys. Company is established on the year of 2000. The Company‘s turnover is 1 to 5 million USD (approx.). Their no. of employee are 20 to 50.

3. Zim-ex Inc.

The company is exporting sports hockey, padding goals, nets, tennis posts, net protectors, soccer frames, windscreens, cages golf nets, divider nets, baseball nets, safety nets, gym mats, volleyball posts, box lacrosse frames. So company is exporting all sports equipement.

4. Ammar Enterprises

The company is Manufacturer / Exporters / Importer / Wholesale Suppliers of sports hockey padding goals, net protectors, soccer frames, nets, tennis posts, windscreens, divider nets, baseball nets, cages golf nets, safety nets, gym mats. Their business type is Manufacturer / Exporters / Importer / Wholesale Suppliers

88 5. Pro Kicker

The company is manufacturer of soccer balls, takraw ball, haversack bags. The above company‘s business type is Manufacturer. The company is est. in the year of 1985. Their turnover is in US$ is 0.5 to 1 Million approx., In company, employees are worked 20 to 50.

6. International Canada Inc.

The company is manufacturer of golf product .So their business type is Manufacturer. The company is established on 1999. Their turnover is in US$ is 0.1 to 0.5 Million ( approx.).Employees worked in company are 20 to 50.

7.3) "INDIA" Sports Products Manufacturers and Suppliers

1) PIONEER INTERNATIONAL

The Pioneer International is well established Company ,which are manufacturer, wholesale supplier, exporters of sports goods, sportswear and sports equipment. Pioneer International is one of the well-established names in manufacturing and exporting of a wide range of sports goods in international market. Their products are indoor batting gloves, cricket helmets, cricket keeping gloves, skipping ropes, cricket batting pads. The company has Good market position in domestic as well as international country. Company have been exporting successfully in many overseas countries like UK, USA, Canada, Srilanka, Australia, England, Bangladesh, South Africa, etc.

Supply chain of pioneer international company:

89 2) V.K ENTERPRISE V.K Enterprise is a leading name as manufacturer and exporter of a range of quality sports helmets. With innovative, scientific and in-depth study in the field of manufacturing .V.K Enterprise has expanded its domain of manufacturing of Helmets, Leg guards and Sports Accessories. The company is produce their products are as given below : Helmets ,skating helmets, Cricket Helmets, Ice Skating Hurley .As an established house, they have their customers across the international country V. K. Enterprise is exported their product in USA, Canada, UK and many more European countries.

Supply chain system.

3) JAY EXPORT HOUSE

The company Manufacturer / Exporters / Wholesale Suppliers Of sports goods, wooden carom board, carom striker, carrom powder, football or soccer equipment, gloves, cricket equipment, willow cricket bats, agility equipment, boxing equipment, basketball ring, Frisbee,

90 football equipment, soccer equipment, football pump. The company‘s business type is Manufacturer / Exporters / Wholesale Suppliers. Company is estd. In year of 1985. Company‘s Turnover is below Rs. 0.5 Crores (appox.) The company‘s business market is spread up in Worldwide. Their products are: carom equipment, Cricket equipment, Boxing equipment, Football equipment. They have established an ongoing, harmonious, and promising relationship, not just with their clients in the domestic markets but also with their numerous clients in the international markets also. They export their expedient products to countries like Israel, Canada, Australia, New Zealand, Sri Lanka, South Africa, U.K, West Indies, Greece and Bangladesh.

Supply chain management system:

91 7.4) INDIAN SUPPLY TO CANADA

These are the supplier of raw material, which is supply the raw product to the manufacturer in India. RAW MATERAIL SUPPLIERS 1. M/s. K.C. Verma & Co., Basti Nau, Jalandhar – 2. 2. M/s. Avtar Singh and Sons, Basti Sheikh Road, Jalandhar – 2 (Punjab) 3. M/s. Girdhari Lal, Model House Road, Near Ravidas Chowk, Jalandhar – 3. 4. M/s. E.K. Omkar Leather Tannery, Nurmahal Road, Phillaur, Dist. Jalandhar

MANUFACTUER COMPNIES. 1)Aj Sports

AJ SPORTS manufacturers of cricket balls, cricket bats, leg guards, tennis balls, soccer ball, etc .The company‘s business type is Manufacturer & the company is stayed in Meerut, Uttar Pradesh- India.

92 2) UV Sport

UV Sports is manufactured of cricket ball. Their business type is manufacturer and its address is Vivak Vihar, Delhi- India.

3) HANGU IMPEX

Hangu Impex is manufacturers of sport goods like field hockey balls & hockey sticks, boxing and martial art items, footballs, volleyballs, badminton shuttlecocks and rackets, softballs, roller skates, inline skates, basket balls, cricket balls, bats & computer accessories. Its business type is Manufacturer and it is cover the country like Netherland, USA, UK, Holland, Canada, Australia, China, Singapore, Taiwan, Vietnam, Ireland, Africa and the company is deal with Jalandhar, Punjab –India.

4).Dk Sports

DK SPORTS is manufacturers of cricket ball. Its business type is Manufacturer and its address is J 81 Prashant Nagar, delhi India.

93

Supply chain of india to canada manufacturer to end user.

MANUFACTURER OF INDAIN MARKET  LALIT SPORTS: The company Manufacture of cricket bats, badminton rackets, cricket ball and sports goods etc. the company. The company‘s business type is Manufacturers. Company cover whole Indian Market. Company‘s address is S/87, 88-II Industrial Area, Jalandhar, Punjab India

 R. L. Bhatia & Company

The company Manufacture cricket bats, batting gloves, batting legguards ,cricket balls, cricket kit, cricket dress, cricket equipment‘s, footballs, volleyballs, shooting balls, sports nets, volleyball nets, weight lifting, Their type of Business is Manufacturers & stayed in Meerut, Uttar Pradesh India.

94 Wholesaler of India

 A.P.G SPORTS INDUSTRY

A.P.G are manufacturers of sports balls, keyrings, polo t- shirts, badminton equipment, cricket equipment, footballs, volleyballs, cricket ball hockey balls. Their Business type is Manufacturer / Wholesale Suppliers/ Exporters /Market Cover by the company is India & their Address is 261, Dilbagh Nagar, Basti Guzan, Jalandhar, Punjab India

 Raj International Exports

RAJ INTERNATIONAL are manufacturers of sports balls, leather cricket balls, soccer balls, rugby balls, volley balls, promotional products, promotional football, promotional rugby ball, promotional keychains, promotional pens, promotional table clocks, net hammocks etc. The Business Type is Wholesale Suppliers / Exporters / Manufacturer & their Address is No. 1372, Sector- 44- B, Chandigarh India.

EXPORTER OF INDIA TO CANADA  A.P.G SPORTS INDUSTRY  P.J MAHAJAN& SON

The company‘s Business Type is Manufacturer / Wholesale Suppliers/ Exporters. The company is exported about 60%- 70%, The company cover the market in U.S, U.K., Germany, Europe , France , Japan, Russia, Singapore, Canada, Gulf countries and many other parts of the world.

95

SUPPLY CHAIN INDIA TO CANADA:

SUPPLY CHAIN MANAGEMENT: Leather is a row material product, which is process in the final product by its supply for the labeling, policing and then it is supply to the manufacturer. Indian Manufacturer are supply to the wholesaler of the Indian market. Wholesaler are exported their product to the Canadian retailer and sale to the customer of Canadian market.

96 7.5) Supply chain of sport goods in Canada (1) Baseball supply chain in Canada Base ball material  Leather  Rubber etc

97 1. RAW Material Supplier Company:-

(a) Leather (I) DURABLE LEATHER COMPANY INC. The company Lead RAW Material Supplier of Fine Leather Goods & Accessories by Offering an Extensive Selection of Executive Cases, Pad Folios, Sport Kit, Wallets, Cd Cases, Passport Cases, Travel Bags, Luggage and Ladies Handbags.

(b) Rubber

(I) Graham Rubber Company Limited

Custom molded rubber products Custom extruded, die- cut, and flash-cut rubber products Country of Ownership by Canada, the company was established in 1972, Business Activity of company is Manufacturer/Processor/ Producer . Their total Sales ($CDN) is $1,000,000 to $4,999,999 & their Export Sales ($CDN) is $1 to $99,999 .15 employees worked in company.

Oceaner Sporting Goods Canada Inc. The Oceaner Sporting Goods Canada Inc. is manufactyrer of oceaner wetsuits and drysuits to the scuba diving and in watersports market. It is also produce leather of base ball , foot ball product. Company is established in the year of 1986. It is also exporting goods to other countries.Their primary business activities are manufacture / processor / producer. Company‘s total sales in $ CDN is $ 200,000 to $ 4,99,999. In company, employees worked is 35.

2. Manufacturing Unit Company

(I) SGS SPORTS INC.

Country of Ownership of campany is Canada Primary Industry (NAICS): 339920 - Sporting and Athletic Goods Manufacturing, Primary Business Activity of company Manufacturer / Processor / Producer.

98 II)ATF SPORT A.T.F. Sports company is manufacturer of base ball, foot ball and other sports equipment for home and GYM. Company is established in 1978. Company is exporting their product in other countries. Company‘s primary business activity is manufacturer / processor/ producer

3. WHOLESALER

(I)HOLLANDIA SPORTS NET MFRS LTD.

Above company is Wholesale Suppliers / Manufacturer Of sports hockey, padding goals, net protectors, tennis posts, soccer frames, nets, windscreens, divider nets, baseball nets, safety nets, cages golf nets, gym mats, box lacrosse frames, volleyball posts, badminton posts, locker benches, handball goals, handball nets, gym div curtains, floor mats, soccer goals, lacrosse goals, baseball cage, golf cage, tennis nets, divider curtains and sports net . Their business type is Wholesale Suppliers / Manufacturer. Company is estd. in the year of 2000 and their Turnover is US$ 5 to 10 Million(approx.).Under the company , employees worked are 50 – 100.

(II) FORCE SPORTS

The Force Sports Technologies Inc is a wholesale suppliers of roller hockey‘s, roller jerseys, base ball equipment. Their business type is wholesale suppliers and it was established at 2000.Company‘s turnover is in USD 1-5 million (approx. ). Their employees worked in company is 20 -50.

99 4. DISTRIBUTER (I)THE INFINITY SPORTS GROUP

Based near Vancouver, British Columbia, Infinity distributes some of the best known brands in the world to a network of more than 1500 Canadian sporting goods retailers and to most of the important Canadian retail chains and buying groups. Internationally, Infinity designs, produces and markets outdoor and sporting goods products to customers in more than 30 countries. In the camping and outdoor industry, Infinity‘s own Woods and Outbound brands are Canada‘s oldest and most successful camping brands. Under license agreement with Asolo spa Infinity produces high quality hiking and backpacking equipment under the Asolo Gear brand. Asolo Gear products, designed, produced and marketed by Infinity are sold throughout North America and in parts of Asia and Europe. Infinity is also the Canadian distributor for Lowe Alpine equipment and for Asolo hiking, backpacking and climbing footwear.

5. RETAILER (I)THE FORZANI GROUP LTD. (FGL) Canada‘s largest national retailer of sports goods offering a comprehensive assortment of brand name and private brand products.FGL employs over 14,000 people in communities across Canada and operates stores under the following corporate and franchise banners. Their products are sports chck, Sport Mart, Athletes World, National Sports, Intersport, Sports Experts, Atmosphere, Sportsphere, Tech Shop, Nevada Bob‘s Golf, Hockey Experts, The Fitness Source, and S3.

100 Browning Canada Sports Ltd/Ltee

The company is established in 1958 The company‘s type is distributer and their products are sporting goods firearms. The company‘s discription Is wholesaler of sporting goods. The company‘s no. of employees worked are 1 -19

101

CHAPTER 8 FEASIBILITY STUDY ON HAND GLOVES

102 8.1) Company profile

Company Name: SOFTEK Location: CHENNAI Address: D.R. Abdulkalam road, Nagalkeni, Chormpet Chennai- 6000044 Tamil Nadu- India. Company Objective: To develop profitable business, providing a formidable sports gloves with customer satisfaction. Company Vision: To provide best quality with efficient cost to everyone. Company Mission: To become a leading player in sports industry. About Chennai: We are going to produce hand gloves from the Chennai location. Chennai is the megacity of India. It is the part of south India.

103 Advantages:  It is the capital city of the tamilnadu.  It is nearer to the Bay of Bengal.  It is having facilities like airport, shipping port and having connection with national highway of India.  Climate of the Chennai is hot and humid throughout the year. There is no more variation in temperature.it is the stable state in economy and political.  Labour is easily available in the Chennai.  In the Chennai Chormpet is the best location for industry. It is south part of Chennai.  It is well connected with road and railways and 4km away from the airport.  Land rent for industry: Rs.22 per sq.ft.  Easy availabilities of resources.  For the development of industry we require 2000sq.ft land. It would be around 44000 for one month. But it would be around 35000(negotiable price).  Acceptable quality  Technological oriented 8.2) Product: Hand Gloves (Ice Hockey) Features of Product:  Comfortable wear  Highly protective  Long lasting  Stretchable

104 Color of Product: Black and Red

Plant Layout: Process Plant Layout

Storage Packaging

Raw Material

Labeling

Comp ounding Cutting Stitching Quality Control

Canadian Company: Companies Name Price (cs $) Alkali (CA9 Hockey Gloves) $35 Alkali (CA5 Hockey Gloves) $20 Bauer(Supreme total one NXG $29.99 Hockey Glove) Bauer (Vapor 3.0 Hockey Glove) $41.99 Bauer Vapor 7.0 Limited edition HS $30

105 8.3) Introduction of Hand Gloves: It is widely used merchandise in each and every sport. The main purpose of hand gloves is protection. As the time passes lots of innovation and development comes in production and designing of hand gloves. Different sports require different type of hand gloves. In particular sports different fielder requires different type of hand gloves. Thickness and flexibility varies from one fielder to another fielder. In fielder like smaller gloves in which they can easily throw ball while outfielder like larger gloves. It requires a high level of craftsmanship to produce. Gloves were and are a labor-intensive product and call for large amount of individual attention.

Types of hand gloves:  Cotton hand gloves  Nylon hand gloves  Leather hand gloves  Rubber hand gloves  Jeans hand gloves  Hosiery hand gloves Uses:

 It is useful for every player to protect their hands while playing and to fee l comfortable.  It helps in catching the ball or stick  It gives flexibility to movement  It reinforces the thumb to prevent them from bending backward.  It enhance the performance There are three types of gloves worn by ice hockey players. Skaters wear similar gloves on each hand, while goaltenders wear gloves of different types on each hand.

106 Types of Ice Hockey Gloves in:  Skaters‘ gloves  Goaltender‘s gloves

8.4) Organizational Structure:

Chair man

Manufacturing Finance H.R. Marketing Department Department Department Department

Supervisor Supervisor Supervisor Supervisor

Worker Worker Worker Worker Worker

107 8.5) Production Department: In Production Department there are three main things important.

Production Department

Raw Material Equipment Labour Skill

Step: 1 Raw Material The Raw Material utilizes in make an ice hockey hand gloves.  Leather  Nylon Thread  Pad  Plastic  Velcro  Brown craft paper box

Leather: Leather is a durable and flexible material created by the tanning of animal rawhide and skin, often cattle hide. It can be produced through manufacturing processes ranging from cottage industry to heavy industry. Leather is main ingredient for sports hand gloves.it provides flexibility to the hand gloves. It is water proof material which prevents moisture of cold temperature in Canada. Leather is available in different types like cowhide, deerskin. These both type of leather is perfect for making of sports equipment. Cowhide is widely available in India.

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Supplier: Price

Product Price (Sq.ft) Requirement Supplier Name (25000 Pairs) & Address Cowhide 57.00 Sq.ft 10,000 Sq.ft Sri guruji Leather Chennai leathers, Nagalkeni, Chrompet, Chennai

Nylon thread: Nylon was developed in the 1930‘s. Almost eighty years later it is still one the most widely used synthetic threads in the world. Its high strength-to- thickness ratio, abrasion resistance, ease of sewing, and relatively low cost are the key reasons for this success. The bottom-line is that nylon seams last ―forever‖. Nylon thread is used for the stitching of different part of hand gloves together. It must be strong to hold everything together.

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Supplier: price: Product Price Requirement Supplier Name & (KG) (25000 Pairs) Address Nylon Sewing 210/kg 600 kg Balaji Fiberss Treads Chennai No. 9, West Singnal Office Road, Annanagar, Pammal, Chennai- 600 075

Pad: Pad is used for protect against the damages. It gives hardness to palm and also prevent thumb and fingure from bending backward.

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Supplier: Price

Product Price Requirement Supplier Name (25000 Pairs) & Address Pad 8.50(9‖6inch) 30000 Grinwee Norton limited,chennai

Plastic: The first commercial attempts to prepare resins from epichlorohydrin were made in 1927 in the United States.

Plastic reinforcement is done at the thumb and little finger to provide support to the gloves.

Supplier: Price Product Price (KG) Requirement Supplier Name (25000 Pairs) & Address Epoxy resin 134.5/kg 450 kg Katariya private ltd, Chennai.

111 Velcro: Velcro is a company that produces the first commercially marketed fabric hook-and-loop fastener, invented in 1948 by the Swiss electrical engineer George de Mestral. Variations on the standard Velcro hook and loop fasteners include hooks on both faces, buttons, zippers, laces, and buckles. It is used for the tighting of hand gloves at the hand wrist.

Particular Price Requirement Supplier Name & (25000 Pairs) Address Velcro 4.50/meter 15000 meter Sri Selavambal traders,coimbtore

Brown Kraft paper box: Big brown Kraft paper box is used for the packaging purpose.

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Supplier: Price

Product Price Requirement Supplier Name (25000 Pairs) & Address Small kraft 2/pair 30000 boxes Jay veer traders, paper box Chennai

Big kraft paper 27(4‖6) 300 boxes jay veer traders, box Chennai

113 Step: 2 Equipment Sewing Machine: Sewing Machine use in stitching the raw material to make final product.

Particular Price (per unit) Requirement Supplier Name & Address India sewing 32000 20 Macro agency machine private ltd mahadevpura banglore

Features of Machine: Total output: 2500 pieces per month. Maximum sewing speed: 5500rpm. Maximum stich length: 5mm Lubrication: automatic Power requirement: single phase: 100-120v, three phase: 200-240v Power consumption: 650VA Total weight: 82k

114 Cutting Machine: Cutting Machine used in cutting the raw material to give a appropriate shape. Product Price (Per unit) Requirement Supplier Name & Address Multi cutting 85000 2 Shanghai xinao Machine numeriacal control ltd.china

Labeling Machine:

Particular Price Requirement Supplier Name & Address Automatic label 75000rs/machine 1 Jota machinery printing industrial machine ,china

115 Trolley: It is suitable for moving material between warehousing or store to the production line and can also be used to move objects.

Particular Price Requirement Supplier Name & Address Trolley 1700 20 Aarudhra Industrial Fabricators No. 66b, Plot No. 20, Tass Industrial Estate, Ambatture Chennai- 600098, Tamil Nadu.

116 Computer and Printing:

Computer and Printing use in company for accounting, recording Purpose.

Product Price requirement Computer and printing 24000 6

117 8.6) Manufacturing process:

Raw Material

Cutting in four Pieces (Shell, Web, Lining, Pad)

Stitching (Inside to Out)

Insertion of pad

Plastic at the thumb and toe finger

Web fabricated with pieces of leather

Palm and Back are sewn together and then joined with other pieces wwwwwwithwithwithother

Lay Off

Quality Control

Packaging

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Step: 1: Raw Material Raw materials are taken to the location in Chennai plant. All the raw material is separated as per their process. They are checked for the standard quality.

Step: 2 Cutting of leather:

Cutting process:

119 Sizing pattern of the gloves:

Step: 3 Stitching Now all the pieces are stitch together with the help of nylon thread. It is done from inside to outside.

Step: 4 Insertion of Pad Pad is cut in to the palm shape and size. Now that pad is inserted into the hand gloves.it gives hardness to the hand gloves in palm. Gloves have two-part pads that make it easier for the glove to flex in the correct direction when squeezed.

Step: 5 Plastic Reinforcement Plastic reinforcement is done at the thumb and toe finger.

Step: 6 Web Fabrications Now web is fabricated with the leather.

Step: 7 palm and back are sewn together and then joined with another pieces. Final product is ready for sale.

120 Step: 8 Lay off Final product quality compare with the standard Quality.

Step: 9 Quality Control All the prepared hand gloves are tested for quality. They are tested for the perfect standard size. If any hand glove does not meet the standard they are taken back from the lot.

Step: 10 Packaging Pack the final product after labeling the company Name. It is ready to shipping the goods.

8.7) Human Resource Department Meaning of Job Analysis: Job Analysis is the process of analyzing jobs. It is very broad concept. Therefore Before describing the meaning and nature of the job analysis, it is important to discuss about the meaning of the job. Job is the bundle of related task for example; inspecting resume of a job seeker is a task. The Whole lot of tasks relating to recruitment constitutes job.

Job Analysis: It is the process of collecting job related information. Such information helps in the preparation of job description and job specification.

121

From the above figure we can see that the process of job analysis results into job description and job specification:

Job Description: Company indicates what all a job involves. For Example; job title, location, job summary, duties machine, tools, equipment, material and forms used, supervision given and received and working conditions. Our company focuses on daily operation as well as providing authority and responsibility to employees to know their work done in efficient manner.

Job Specification: The capabilities that the job holder should possess form part of job specification. For Example; education, training, experience, judgment, initiative, physical effort, physical skills, communication skill and emotional characteristics. In context of company have two types of worker skilled worker and unskilled worker.

122 Compensation:  Wage rate for managers and supervisors 10000- 20000rs/month.  Wage rate for laborer and worker and bottom level management 180rs/day.  Wage rate for sales man and accountant 7000- 15000rs/month.  Wage rate for technician‘s 12000rs/month.

Proposed employees hiring: We plan to hire total 62 employees. The summary is as follows:

NO. OF TOTAL PARTICULARS SALARY MANPOWER SALARY ADMINISTRATIVE STAFFS OFFICERS [A] Manager (Finance) 1 25000 25000 i) Accountant 1 15000 15000 ii) Clerk 1 9000 9000

[B] Manager (HR) 1 25000 25000 i) Receptionist 1 8000 8000 ii) Admin staff 4 8000*4 32000

[C]Manager(Marketing) 1 25000 25000 i) Export Officers 2 25000* 2 50000 ii) CRM 3 16000* 3 48000

[D]Manager(Production) 1 25000 25000 i) Supervisors 4 14000 * 4 56000 ii) Labour 30 7000*30 210000 iii) Technician 4 10000*4 40000 iv) Helper 4 5000*4 20000

[E]Other Security Guard 2 4000*2 8000

123 Peon 2 5000*2 10000

Total 62 606000

Skilled V/s unskilled labour: The skilled labour required for our operational activates. Admin staff, human resource department and marketing department must possess basic knowledge about the unit. And unskilled labour is useful for the bottom level activities. Like security. Training:  On the job training: This method is familiar types of on the job training is the couching or under study coaching. This may involves acquiring skills by the observing supervisors or having the supervisors or job experts shows the new employee the ropes, step by step. On the job rotations, in which an employee‘s moves from job to job at planned intervals, is another on the job training.

 Advantages of the on the job training:  It is the save time and the cost.  Trainees can learn more effective ways.  No need for the expensive facility like classrooms or programmed learning devices.  Trainees can learn at the time of the production process.

124 8.8) Marketing Department: We are exporting our hand gloves in Canada for which we require great distribution channel. Marketing mix for hand gloves:

Product: Product is mainly those physical goods which give satisfaction to customer. Hand gloves are identified with these product characteristic:  Features  Quality  Design  Packaging  Differentiation

Price: Price is money that is charged to customer for the product. Hand gloves price must meet these criteria:  It must be sustain in the market.  It must be acceptable by the customer.  It must be lower than the competitor.  It must be recover the cost.

125 Place: Hand gloves would be available to the main populated city of the Canada.

Name Population

1 Toronto , Ontario 4,612,191

2 Montréal , Quebec 3,268,513

3 Vancouver , British Columbia 1,837,969

4 Calgary , Alberta 1,019,942

5 Ottawa , Ontario 812,129

6 Edmonton , Alberta 712,391

7 Mississauga , Ontario 668,549

8 North York , Ontario 636,000

9 Winnipeg , Manitoba 632,063

10 Québec , Quebec 528,595

126 Targeted City: Toronto, Montreal and Vancouver are highly populated city. We are planning to make available hand gloves in these cities. Main stores of Canada to which are targeting for selling hand gloves: Sport chek - Carborough, Ontario Canadian tire-it is available in toranto, Montreal, Vancouver. Just hockey source for sports-toranto MEC-Montreal Wall-mart-Toronto

127 Distribution channel for hand gloves:

Manufacturing End (india) Distributor Wholesaler Retailer consumer

Canada country

List of Retailer:  Wall mart  Canadian tire  Sport chek  Sport mart  National sport List of Wholesaler:  Ammar enterprise  Vsports Inc.  Ks golf cars  Reaction sports equipment Inc.  Blue Mountain sports Inc. Promotion: It is the main aspect of marketing to make aware about hand gloves to Canadian people. We are mainly using direct marketing, advertising and sales force. Direct marketing: It is done by direct mail and website.it can be beneficial for both seller as well as consumer. We have our official website: www.softek.in

128 Consumer can directly contact us for the product online.it would help us to direct come in to contact of consumer and know their perception towards our hand gloves. Sales force: We have hired sales force for the promotion of hand gloves. The main tasks for sales force includes:  Prospecting  Targeting  Communicating  Selling  Servicing  Information gathering  Allocating

For all these tasks, sales force are well trained and motivated for achieving objective of company. Advertising: There are different types of media available in the Canada.  Newspaper  Television  Radio  Magazine  Yellow pages  Internet  Brochures  Telephone

Advertising is useful to communicate large amount of population at the time. We are using media like television, radio and print media such as newspaper and magazine. Television Channel:

129

In Canada English and French channels are available. CBC (Canadian Broadcasting Corporation) City (national) English Channel CTV Global TVA

CBC French channel RDI CBC and global are commercial network and are available throughout to the country. City: It is a privately owned television network which is available in Ontario, Quebec, Alberta and British Columbia. Newspaper: It is useful to get good local market coverage.it is flexible and timeliness.it is widely accepted by Canadian people.

130

Canada has mainly two “NATIONAL” newspapers: 1) the globe and mail 2) National post

These two are English newspaper which is daily in Canada. Union jack is another widely accepted newspaper which has 75000 customers. Cost for advertisement in union jack is from $500 to 600 for one month period. These price changes as the size, color, place and design change. Big advertise charges higher cost than the small one. There is online advertisement in union jack is also available which charges $99 per month. Radio: Canada has more than 2000 radio station on both AM and FM.

131 It provides high geographic coverage and low cost which help us to maximize the profit of company. The stations in different cities are:  CBC radio-Toronto  CFMI 101.1FM-vancouver  CHOM 97.7-montreal

We are mainly targeting bigger cities radio station for the promotion of hand gloves. Magazine: In canada english and french magazine are available.

Name of Magagine:  Reader‘s digest  Canadian living  Hello!  The hocky news

We are planning to target this highest selling magazines in canada.it costs $500 for month.

132 8.9) Finance Department

Financial Plan: Required capital The initial investment is to purchasing material raw, material and other fix assets. We have decided to provide a best environment to over workers in contexts of anti-pollution equipment wroth RS 1063000. Investment requirements of RS 1,25,00,000 their include 60% bank loan, 30% venture capital, 10% owner fund. Financial arrangement

Sources of fund Rs. Weight

SBI 75,00,000 0.6 Aditya Birla real-estate fund 37,50,000 0.3 Owner fund 12,50,000 0.1 Total 1,25,00,000

Source Cost of capital SBI 13.5% 0.135 Aditya Birla real-estate fund 20% 0.20 Own fund 8% 0.08

WACC: = 0.6*0.135 + 0.3*0.20 + 0.1*0.08 = 8.20%

133 Financial projection We assume that the useful life of the machinery will be 10 year with SLM deprecation used. So there for deprecation will be 20% Financial statement highlight The financial figher presented in our proforma statement prepare by monthly.

134 Per Pair Cost: (25,000 Pair) Particulars Hand Gloves PER UNIT Purchase of Raw materials 1507000 60.28 Purchase Expenses 53000 2.12 Direct Wages (Labour) 81500 3.26

Prime cost (1) 1641500 65.66 Add :- Factory Over Heads: Plant cost 118750 4.75 Factory Power 82000 3.28 Indirect Wages 98000 3.92 manager‘s salary 25000 1.00 worker‘ salary 326000 13.04 Factory Insurance 350000 14 Machinery cost 1771.67 0.07

Works cost Incurred 2643021.67 105.72 Add:- Administration Over Heads:- General Charges 302000 12.08 Electricity Charges 35000 1.4 Audit Fees 32500 1.3 Bank Charges 84375 3.375 Salary 132000 5.28 Cost of Production (3) 3228896.67 129.16 Add:- Selling and Distribution OH: Manager‘s salary 25000 1.00 Other‘s salary 98000 3.92 Traveling Expenses 955000 38.2 Advertisement expenses 505000 20.2 Promotion charges 107000 4.28 Delivery expenses 160000 6.4 Custom duty 75000 3 Loading charges 45000 1.8 Other expenses 309000 12.36 Total 5507896.67 220.32

Wholesaler Price 1376974.168 275.4

135 Retailer Price 1376974.168 330.48

Selling price 8261845.006 330.48

If selling 100% Pair

Particular Amount Particular Amount Purchase 16,41,500 Sale Wholesaler @ 34,42,500 275.4 Rs Retailer @ 41,31,000 330.48 Rs Gross profit 59,32,000

Total 75,73,500 Total 75,73,50 0

Expenses Factory O/H 17,19,271.67 Gross profit 59,32,00 0 Administrative 3,69,500 O/H Selling & 21,56,000 Distribution O/H H.R. cost 6,06,000 Interest payment 84,375 Net profit 9,96,853.33 Total 59,32,000 Total 59,32,00 0

136 If Selling 75% (18750 pairs)

Particular Amount Particular Amount Purchase 12,31,125 Sales (75%) Wholesaler @ 25,81,875 275.4 Rs Retailer @ 30,98,250 330.48 Rs Gross profit 44,49,000

Total 56,80,125 Total 56,80,125

Expenses Factory O/H 17,19,271.67 Gross profit 44,49,000 Administrative 3,69,500 O/H Selling & 21,56,000 Distribution OH H.R cost 6,06,000 Interest payment 84,375 Net profit 1,19,853.33 Total 4,44,9000 Total 4,44,9000

137

Pricing strategy:- 1 Cost + pricing: Firm are using a cost+pricing strategy, here profit % margin at production cost 2 Market- oriented pricing: Setting this price based on analysis and research of the market. 3 Price skimming: s It‘s a psychological effect on customer as, we are giving a product at price of $9.99 instead of $10.

138

CHAPTER 9: FEASIBILITY ON SPORTS BAG

139

9.1) COMPANY PROFILE Name of Company: “CANINDIA BAGS PVT. LTD.” Address: Address : House No.10, Shop No.8, Near Adarsh Nagar, Jalandhar City, Punjab-144001 Website: www.canindia.com Email Id: [email protected]

Company’s Objective To develop a highly successful, profitable sports bags business, providing upmost and quality products at an affordable cost for the community. Company’s Vision ―A commitment to provide best quality light weight sports bags experience to everyone at an affordable cost.‖ Company’s Mission ―To be one of the leading player in the sports bags manufacturing industry in next 5 years.‖ Advantages  Low cost to consumers.  Opportunity to reach mass market across all towns and cities.  Optimum utilization of the infrastructure shall be ultimately boost the Return on Investment(ROI).

140

9.2) Production Plan: Demand forecasting: As it is compulsory for any new company to forecast its demand for products and services and the resources necessary to produce we have forecasted our demands in following way. Long-range forecast: As designing and building a new factory or designing and implementing a new production process may take as long as five years or even more, keeping in mind that we have forecasted for next five years.

We have implemented this forecast for below functions:  New product planning,  Capital expenditure planning,  Planning for factory location,  Research and development.

For better prospects to our product we have undertaken One of the quantitative method Moving average method.

Moving average = ∑ Demand in previous 5 years n for that, demand in last 5 years in canada for sports bags were as below.

141

(source:www .canecos.com)

Year Demand (%) 2008 16 2009 19 2010 26 2011 28 2012 39

.’. moving average = 128 = 25.6 5 From above calculation it can be assumed that the demand for the sports bags will remain around 25 to 30 % in next years.

There are three very common terms that are linked to each other in production department. They describe particular stages in information handling input, processing and output.

142

Input: Row fabrics: Availability: Address : kochar woolen mills pvt. ltd., p.o. golden temple, katra ahluwalia , amritsar.-143006, punjab, india

AirMesh knitting fabrics: Availability: Address: C – 124, Focal Point, Phase - 5, Ludhiana - 141 010, Punjab, India

143 Nylon tatron polister: Availability: Address : House No.14, Shop No.4, Near Adarsh Nagar, Jalandhar City, Punjab, India.

Zipper: Availability: Address: House No.14, Shop No.4, Near Adarsh Nagar, Jalandhar City, Punjab, India.

Fancy fitting: Availability: Address : House No.14, Shop No.4, Near Adarsh Nagar, Jalandhar City, Punjab, India.

144

9.3) Processing:

Manufacturing Process: Manufacturing Flexible Intermediate Bulk Containers (FIBC, Jumbo Bag, Big Bag, Tote Bag, Bulk Sack or Super Sack) involves various types of key steps along with our skilled operation performed. Here in this process the PP granuels which is the basic raw material is being converted in to a FIBC Bag after undergoing various lines of process. The total process involved are of 11 steps. The brief note is being below mentioned regarding each and every step.

145 » Step 1 - Extrusion: Here the virgin PP granules are being melted and made as tapes which are wound in bobbins of required size. This is the first stage of process which determines the tensile strength of the tape. » Step 2 - Weaving: Extruded tape bobbins will be loaded in the Circular weaving machine or Flat weaving machine. Here the tapes will be woven to fabric of required specification and will be would in roll form. These fabrics will become the body fabric of the Bags (FIBC, Jumbo Bag, Big Bag, Tote Bag, Bulk Sack, Super Sack). » Step 3 - Optional Step: Polypropylene fabric is being coated for making the fabric moisture proof. This is optional process as per the requirement of the customer. » Step 4 - Cutting: The woven Polypropylene fabric in rolls will be fed in the automatic cutting machine and will be cut in to cut bit of required size. This Automatic process is adopted to get better accuracy in cut size. » Step 5 - Printing: The cut bits that is the body fabric will be fed in to the heavy duty printing machine to make the printing impression on the fabric. We are equipped with heavy duty printing machine, which gives the best impression with maximum of three colours. » Step 6 - Webbing : Heavier Polypropylene Tapes are woven in to webbing which forms the lifting loop of the Jumbo Bags. » Step 7 - Sewing Unit : Here all the components used to manufacture Jumbo bags are brought together along with the printed body fabric. All the gathered parts are assembled to a Jumbo bag by highly skilled labours under the supervision of technically qualified supervisors.

146 » Step 8 - Inspection: Here each and every bag we manufacture will be inspected by a technically qualified person from the quality control department to ensure that each and every bag delivered from Virgo is of good quality. » Step 9 - Burst Test : Random bags will be selected from a particular lot and will be tested in the testing ring to ensure the Safe Working Load of the bag is achieved. Generally this test is conducted with the sample bag before commencing the production. But after completion of the production also, random samples are taken for burst test to ensure the Safe Working Load. » Step 10 - Packing / Bailing: Here the bags which has been produced will be compressed with the help of the bale press and neatly packed as per the requirement of the customers. » Step 11 - Storage: Once the bag is baled, it will be immediately shifted to a clean storage room, from where the dispatches are affected.

Sports Bag Features:

 Black or White- The bags are available in shiny white vinyl which is easy to clean or durable black nylon. Both bags feature the Heavy Sports logo embroidered on all four sides. The white vinyl bag is very unique and easy to clean; dirt and grease easily wipe off with a cleaning wipe.  Approx. dimensions: 19"L x 9"W x 11"H (55cm x 25cm x 30cm)--will vary when filled with items.  Thermal-lined storage compartment that keep beverages or hot/cold packs hot or cold for up to three times longer. Easily fits three 16oz sports drinks in zippered storage compartment.

147  Shoe storage sleeve- Keep your gym or court shoes separated from your gym clothes with our innovative shoe sleeve that is accessible through dual usage zippered compartment. (sleeve is located the length of the bottom of the gym-bag when shoes are inserted)  Side-Zip storage compartment--12" x 7" zipped compartment along length of bag. (contains shoulder-strap)

 Shoulder Strap- Padded for comfort with adjustable length and easily attached or removed with metal clasps.

 High Quality- All zippers, snaps and clasps are metal ensuring years of use for all types of athletes. Each bag is embroidered with the Heavy Sport logo on all four sides. Dual-zip main compartments with Velcro-tab to ensure bag remains closed under all sorts of conditions.

9.4) Marketing Department:

4 P’s of marketing

Product :

148

Product is major concern to define its feature and attribute. If it is not take proper place and market then it will gone out of market. It is also include STP analysis: In our report we prepared sports bag, for this product we have to identify different segment, target area and also define where to fix position of marke

s

Figure: STP process

The first thing one needs, if want to start a business, is a product. Therefore Product is also the first variable in the marketing mix. Product

149 decisions are the first decisions one need to take before making any marketing plan. A product can be divided into three parts. The core product, the augmented product and the tertiary product. Before deciding on the product component there are some questions which you need to ask yourself.  What product are you selling?  What would be the quality of your product?  Which features are different from the market?  Whether the product will be branded as sub brand or completely new?  What are the secondary products which can be sold along with primary (Warranty, services)

Based on these questions, several product decisions have to be made. These product decisions will in turn affect the other variables of the marketing mix. For that we have prepared “Sports Bag” with is to have the highest quality. Thus the pricing, promotions and placing would have to be altered accordingly. Thus as long as you dont know your product, you cannot decide any other variable of the marketing mix. However, if the product features are not fitting in the marketing mix, you can alter the product such that it finds a place for itself in the marketing mix.

150 Pricing :

Pricing of a product depends on a lot of different variables and hence it is constantly updated. Major consideration in pricing is the costing of the product, the advertising and marketing expenses, any price fluctuations in the market, distribution costs etc. Many of these factors can change separately. Thus the pricing has to be such that it can bear the brunt of changes for a certain period of time. However, if all these variables change, then the pricing of a product has to be increased and decreased accordingly. Along with the above factors, there are also other things which have to be taken in consideration when deciding on a pricing strategy. Competition can be the best example. Similarly, pricing also affects the targeting and positioning of a product. Pricing is used for sales promotions in the form of trade discounts. Thus based on these factors there are several pricing strategies, one of which is implemented for the marketing mix.

151 Place :

CANINDIA BAGS PVT.LTD.

Address : House No.10, Shop No.8, Near Adarsh Nagar, Jalandhar City, Punjab-144001 Website:WWW.canindia.com

Place refers to the distribution channel of a product. If a product is a consumer product, it needs to be available as far and wide as possible. On the other hand, if the product is a Premium consumer product, it will be available only in select stores. Similarly, if the product is a business

152 product, you need a team who interacts with businesses and makes the product available to them. Thus the place where the product is distributed depends on the product and pricing decisions, as well as any STP decisions taken by a firm. Distribution has a huge affect on the profitability of a product. Consider a FMCG company which has national distribution for its product. An increase in petrol rates by 10 rs will in fact bring about drastic changes in the profitability of the company. Thus supply chain and logistics decisions are considered as very important costing decisions of the firm. The firm needs to have a full proof logistics and supply chain plan for its distribution.

Promotions:

Firm can make their good image through the using different promotional tools like sales-promotion, media, internet ads, trade show, personal selling etc. We used promotion media like radio; TV; internet and also used hoardings and banner etc. for prompt our product. In Canada people are more aware and highly educated so customer accept promotion frequently and regularly. There lesser effort requires passing ads in more time.

153

Figure: Promotional tools

Promotions in the marketing mix include the complete integrated marketing communications which in turn includes ATL and BTL advertising as well as sales promotions. Promotions are dependent a lot on the product and pricing decision. What is the budget for marketing and advertising? What stage is the product in? If the product is completely new in the market, it needs brand / product awareness promotions, whereas if the product is already existing then it will need brand recall promotions. Promotions also decide the segmentation targeting and positioning of the product. The right kind of promotions affect all the other three variables – the product, price and place. If the promotions are effective, you might

154 have to increase distribution points, you might get to increase the price because of the rising brand equity of the product, and the profitability might support you in launching even more products. However, the budget required for extensive promotions is also high. Promotions is considered as marketing expenses and the same needs to be taken in consideration while deciding the costing of the product.

Marketing Feasibility: In this department promotional aspect of firm should be conducted in context of customer satisfaction and market code. Company enables to use different promotional tools at different area of segment. In our study we use marketing manager as head of product promotion and he should be responsible for sales persons reporting and also for holding their work. We require only one probationary manager of region for our product sports bag. Promotional tools uses and its requirement also perform big roll in front of marketer and customer. Advertising:

Basically advertising refers to the paid form of non-personal communication of publicity. Advertising presents the most persuasive possible selling message to the right prospects for the product or service at the lowest possible cost. Advertising may cost a lot of money but that

155 cost is justified if it works in effective and economic manner. In addition it increases and stabilizes the sales turn-over.

Objectives:  To educate the mass public at the same time  To build a strong brand  To increase the demand  Building brand image and reputation

Being a paid form of promoting a product advertising is mandatory for every new enterprise to aware huge population at the same time. With a view of creating a unique image of our product we have prepared to go with advertisement in spite of huge money to be spent over it. Following are the sources through which we have planned to advertise our product.  Television advertisement  News papers & Magazines  Internet advertisements

Direct Marketing:

Any medium that can be used to deliver a communication to a customer can be employed in direct marketing, including:

156 Email Marketing:

Sending marketing messages through email or Email marketing is one of the most widely used direct-marketing methods. One reason for email marketing's popularity is that it is relatively inexpensive to design, test, and send an email message. It also allows marketers to deliver messages around the clock, and to accurately measure responses.

Therefore This is been our one of marketing source for sports bag we have prepared.

Display Ads are interactive ads that appear on the Web next to content on Web pages or Web services. Formats include static banners, pop ups, videos, and floating units. Customers can click on the ad to respond directly to the message or to find more detailed information. According to research by eMarketer, expenditures on online display ads rose 24.5% between 2010 and 2011.

Social Media Sites, such as Face book and Twitter, also provide opportunities for direct marketers to communicate directly with customers by creating content to which customers can respond.

Mobile

Through mobile marketing, marketers engage with prospective customers and donors in an interactive manner through a mobile device or network, such as a cell phone, Smartphone, or tablet. Types of mobile marketing messages include: SMS: (short message service) — marketing communications are sent in the form of text messages, also known as texting. MMS: (multi-media message service) — These messages use elements such as images, video, and audio; Mobile Applications: Smartphone-based mobile apps contain several types of

157 messages. Push Notifications are direct messages sent to a user either automatically or as part of a campaign

Couponing

Couponing is used in print and digital media to elicit a response from the reader. An example is a coupon which the reader receives through the mail and takes to a store's check-out counter to receive a discount.

Direct Selling

Direct selling is the sale of products by face-to-face contact with the customer, either by having salespeople approach potential customers in person, or through indirect means such as Tupperware parties.

Internet Marketing:

Internet marketing, or online marketing, refers to advertising and marketing efforts that use the Web and e-mail to drive direct sales via e- commerce as well as sales leads from Web sites or emails. Internet marketing and online advertising efforts are typically used in conjunction with traditional types of advertising like radio, television, newspapers and magazines. Internet marketing can also be broken down into more specialized areas such as Web marketing, email marketing and social media marketing:

158 Web marketing includes e-commerce Web sites, affiliate marketing Web sites, promotional or informative Web sites, online advertising on search engines, and organic search engine results via search engine optimization (SEO) Email marketing involves both advertising and promotional marketing efforts via e-mail messages to current and prospective customers.

9.5) Financial Plan Financial Features Required Capital - The major investment initially is of the machinery purchasing raw material and other amenities development and fixed assets purchasing for unit. - The machinery cost around 25,00,000/- and the other machinery cost would be 5,00,000/- - Further the capital will be utilize for purchasing fixed assets like a truck transport, Auxiliary Equipment, Plant and Machinery, Furniture and Fixtures etc. - We purchase our raw material from consistently quality supplier - Required of an investment of Rs.20,00,00,000/- that include 50% of bank loan, 40% venture capital, and 10% owners fund.

Financial Arrangement Source of fund For this project there are three source of fund which are following. Following are combination of the Bank loan, Venture Capital, & Owner Fund. SR. No. Source Amount 1 Bank loan, FCICICI 10,00,00,000 &HDFC,other 2 Ventute capital 8,00,00,000 3 Owner Fund 2,00,00,000 Total 20,00,00,000

On above sources we taken,1) ICICI Bank Loan (business Loan)&HDFC @ 9.50%  Financial Projections We assumed the useful life of the Production Machinery and plant will be of 10 years and the straight line method of depreciation will be

159 used.. Here we take manufacturing unit as rent for 10 year contract based.

Financial Statements Highlight The financial figures presented in our pro forma statements are statements are extremely encouraging in that it is prepared by monthly, yearly and by various occupancy level. We have used various occupancy levels because market dynamics can vary. It is important to note that in our presentation of the financial statements, We endeavoured to be conservative in our revenue calculations and liberal in our expense calculation. This approach was intentionally adopted to ensure that we maintained cautions, if not slightly pessimist approach to the evaluation of our new venture liability. Pricing strategy:

To set the specific price level that achieves their pricing objectives, firm can use of several pricing methods. These methods include:

 Cost-plus pricing - set the price at the production cost plus a certain profit margin.  Target return pricing - set the price to achieve a target return-on- investment.  Value-based pricing - base the price on the effective value to the customer relative to alternative products.

Here, we have using cost plus pricing and determined our price 851.73 per unit

9.6) Management Team

Responsibilities: One manager will be focus on daily operation of business, including employee hiring, development to the employee as well as other task .the other manager would be focus on community relation, taxes, payable, and receivable.

Compensation:  Wages of worker 5000 - 6000/-  Salary to the supervisor Rs.8000/-  Salary to manager Rs.15000-18000/-  Wages to the cleaner/sleeper Rs.4000/-  Salary of Accountant/admin Rs.10000/-  Salary to sales man & driver Rs.8000-10000/-  Salary to security Rs. 4500/-

160

Proposed Employee Hiring We plan to hire 36 employees. The summary is as follow :- Particular No of People Cost annually in Rs./- Labour/worker 15 900,000/- Supervisor 3 2,88000/- Manager 2 3,60000/- Sleeper& cleaner 1 42,000/- Accountant& admin 3 3,60000/- staff Salesman+ driver 10 9,60000/- Security 2 10,8000/- Total 36 30,18000/-

 We are hiring potential staff to our buisness ,admin and accountant should possess knowledge about basic as well as operation of business , and able to manipulate such a worker in organisazation.  Training to the employee: We will provide on the job training to the employees ,once we will hiring theme then we will provided 15 days training to the employee for how to operate machine , basic rules regulation of the company and other information about them role in organization. Benefits of on the job training:-

 Its relatively inexpensive.  There is a no need of special requirement of trainee as well as expert.  Overall cost of training of the company lower. Product

We are addressing sport bag in our production unit, because we are seeing the opportunities in sport industy that is to provide good quality bag to the customer as affordable price with consistency in quality. Especially we are producing MultiPurpouse bag in sport industry.

Toady as we know that the people are demanding a different bag for sport equipment caring ,so the they are expecting a good quality as well as satisfaction to the product.

Product Name: “ sport bag” multi purpouse

161

Product row material:

Number Row material Contain in (meter)/per bag 1 Row farbric 1-meter 2 Mess 2.5-meter 3 Nylon Woven 1.5-meter 4 Polyster 1-meter 5 Zipper 5-zipper 6 Fiber 2.5-meter 7 Black slider .5-meter

Cost used for one bag production

Number Row Contain in (meter)/per Amount material bag 1 Row 1-meter * 55 55/- farbric 2 Mess 2.5-meter*130 325/- 3 Nylon 1.5-meter*40 60/- Woven 4 Polyster 1.5meter*25 37.5/- 5 Zipper 5-zipper*60 60/- 6 Fiber 2.5-meter* 50 125/- 7 Black 1.5-meter *10 15/- slider Material cost 667.5/-

We are estimated that company operating cost is 10% on total cost of production and we are adding 10% profit margin on total cost

8 Material cost =667.5 66.75/- +operating Expences @10% Machinery depreciation Admin &advertising Power & electricity

Total cost 734.25/- 9 Profit Margine@16% 117.48/- 10 851.73/- SELLING PRICE (INR)

162 SELLING PRICE(Canadian dollar) $16.34 $1=52 INR Per day production:-  1500 units of bag  Per month 45000 bags

Cost of production:-  Per day 735*1500=1,10,2500/-  Per month 33,075000/-

9.7) ABOUT SELL OF BAG:- We are are assume that our product will sale on market near 80% per month, because of we are make effective add as well as expected by demand forcast.  So our net selling of bag per month would be 100% 0f 45000 bag that is 45000 bag per month, so yearly = 5,40,000 unit of bag.

So estimated revenue statement for quarterly bag manufacture and sales of bag Particular Quarterly Half yearly Yearly Production (unit) 135000 270000 540000 Cost of 98,55,0000/- 19,7100000/- 39,4200000/- production Rs.@730/- Selling Rs.@850/- 11,47,50000/- 22,9500000/- 45,9000000/- 100% Total profit 1,6200000/- 3,2400000/- 6,4800000/- before tax

Raw material purchasing detail Our target is to purchase row material in bulk quantity so we can easily reduce our cost of production as well as the total cost of the product. So our plan to purchase in bulk quantity to the supplier, detail as follow. We are purchasing this material for four month production in bulk quantity, because we are getting the benefit of cost reduction.

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FOUR MONTH PROJECTION FOR MATERIAL USED PER MONTH 45000 BAG PRODUCTION

Particular Rate in Rs.(per Quantity in Total amount meter) meter Row fabrics 55 40000 22,00000/- Mess 130 35000 4550000/- Nylon woven 40 26000 1040000/- Polyster 25 25000 625000/- Zipper number 5zipper=50Rs. 50000 2500000/- Fiber 50 45000 2250000/- Black slider 10 60000 600000/- Total cost 1,37,65000/-

TRADING AND PROFIT&LOSS ACCOUNT…..100% SALES...QUARTELY

PARTICULAR AMOUNT PARTICULAR AMOUNT Purchase 90,180000/- Sales 11,47,50000/- (135000 unit@850)

GROSS PROFIT 2,45,70000/- TOTAL 11,47,50000/- 11,47,50000/-

GROSS PROFIT 2,45,70000/- OPERATING EXPENSES Rent of building 1,50,000/- Depreciation 75,000/- Power &electricity 50000/- Salary 75,4500/- Interest on loan @ 7,91700/- Advertisement 15,00,000/- Expense Other admin 100,00,0/- expense Export import duties 30,00,00/- Transportation cost 18,00,00/- Excise duty 100,000/- NPBT 1,89,57800/- Tax [email protected]%, for 14,64490/- 3 month that is NPAT 1749331o/- Total 2,45,70000/- Total 2,45,70000/-

164

CHAPTER 10

SUMMARY

165 Canada is developing country with political as well as economy stable system. Regional economy depends on fishing, farming, lumbering, mining and manufacturing. It is 2nd largest country with area 9984670 square km. Canada, the name come from ―KANATA‖. Canada has a stable political system with sound policy consist of mainly two parties like conservative and liberal party. It has constitutional monarchy and independent democratic system which is led by ELIZABETH 2. It is Economic stable with nominal GDP US$ 1737 billion. The important distinction between economic structure of Canada and U.S is that the former is net exporter of supplies and the latter is net importer of supplies. Japan, China, UK and U.S are main trading partners of Canada. Canada is socially multicultural and multi religious with population 34.03 million. English and French are the main languages‘ which are spoken by Canadian. Education is the important determinants for labor force occupation and income. 80% of Canadian prefers high technology like internet and digital court. The legal system of Canada is based on British system which has mainly two law; common law and civil law. It consist of major industry like mobile manufacturing, pulp and papers, iron and steel work, machine and equipment manufacturing, auto of fossil fuel.

The comparison between Canada and India in regards of sports industry entails the statistics of comparative position of each country. Further, the import and export of both the country refers to the fluctuation caused due to growth in sports industries in both the countries. Current scenario of sports utilities produced in both the countries have reached to maturity stage. Almost both the countries have adopted modernized equipment and instruments in their respective markets. Compare to Canada, India is having higher potential of growth in the sports industry as India is having higher percentage of core area of

166 sports goods non-utilization. At present India has decreased the amount of import from Canada as wide array of companies are boosted in. The figures of both the countries states the comparison of Canada and India in terms of import-export, revenue generation in sense of GDP, consumption of sports goods in both the countries. Indian government is also giving priority to the sports industry now a days by providing ease in all the sectors of producing sports goods. Such land allocation, financial subsidies, lesser import-export duties, easy administrative procedures for infant companies, etc. Canadian import to India in 2007 was 6395 cr, and 2011 was 5778cr, so compare to 2007 Indian sports condition was good. Canada export to India in 2007 was 160148cr and in 2011 was 959983cr.

PORTER‘S FIVE FORCE:

Porter‘s five forces model refers to the macro environment as well as the micro environment in the Canadian country. This model helps to introduce new sports product in Canadian market so there bargaining power of buyer and supplier is high. and threat of new entrance is high. Substitute product is available in Canadian market so customer switching cost is also high. Perfect competition in Canadian market so it‘s tuff condition to survival.

SWOT ANALYSIS:

Strength of Canadian market is, people have technical and analytical skill with highly educated, health conscious as well as availability of technology. Weakness is difficult to small medium enterprise to survive because of mega store, lack of government support and lack of computer knowledge to senior citizen. Opportunities is highly educated people in Canada so creativity and innovation useful to entrance of small medium enterprise. Inflation is biggest threats in Canada.

The study of Canadian sport industry supply chain concludes that Canada used five level chain of supply. Which is mention in the diagram of supply chain.

167 Study of sports supply chain mentions the no, of supplier, manufacturer and wholesaler from India to Canada. Namely v.k enterprises, jay house export, and pioneer international.respectevly their main product helmets, cricket tools and cricket bats and gloves.

Raw material suppliers are ms k.c verma and co., girdharilal sons and e.k omkar limited which is supply goods to hangu imlex and uj sports and dk sports and they are manufacture sports equipment. They are finally sent to exporter of Canada apj mahajan sons and pj sons.

Canadian supply chain like

Raw material supplier manufacturer wholesaler

Distributer retailer end user

Conclusion about feasibility It is found that our company, softek have great opportunity in Canada market. Ice-hockey is the national game for the Canada which give us positive market environment to establish market share in Canada. We are providing best quality with acceptable price to satisfy our customer needs and attract new customers. Efficient management from the operation to sale helps us to maximize profit. We have created a value for our brand in Canadian sports market. We have a benefit of our cost of the product which is lower than the other competitor.

168 CHAPTER 11 BIBLIOGRAPHY

169 http://www.ccsd.ca/factsheets/demographics/ http://www.cbc.ca/news/canada/story/2012/05/29/census-data- release.html http://www.canada.gc.ca/aboutcanada-ausujetcanada/sym/menu- eng.html http://www.canada.gc.ca/aboutcanada-ausujetcanada/arts/menu- eng.html http://www.canada.gc.ca/aboutcanada-ausujetcanada/money- argent/menu-eng.html http://www.canada.gc.ca/aboutcanada-ausujetcanada/hist/menu- eng.html http://www.canada.gc.ca/aboutcanada-ausujetcanada/enviro/menu- eng.html http://www.canada.gc.ca/aboutcanada-ausujetcanada/peace- paix/menu-eng.html http://www.canada.gc.ca/aboutcanada- ausujetcanada/population/menu-eng.html http://www.canada.gc.ca/aboutcanada-ausujetcanada/sport/menu- eng.html http://www.quickmba.com/strategy/porter.shtml http://canada.gc.ca/home.html http://www.canadabusiness.ca/eng/page/2856/ http://www.sportanddev.org/ http://www.ic.gc.ca/eic/site/026.nsf/eng/h_00078.html http://www.ic.gc.ca/eic/site/026.nsf/eng/h_00004.html http://www.reportlinker.com/d014163423/Sport-Sector-Overview.html

170 http://www.canada.exporterindia.com http://www.srigurujileathers.com/cow-milled-leather.html http://simple.wikipedia.org/wiki/File:Hockey_gloves.jpg http://www.thethreadexchange.com/miva/merchant.mvc?Screen=CTGY&Categ ory_Code=nylon-thread-information http://en.wikipedia.org/wiki/Ice_hockey_equipment

http://www.indiamart.com/balaji-fibress/_ http://yellowpages.eindiabusiness.com/sportsaccessories/sports-goods-equipment.html http://www.eindiabusiness.com/sportsequipment/index.html#clients http://eindiabusiness.com/cricketequipments/index.html#clients http://www.exportersindia.com/indian-exporters/ http://www.globalsuppliersonline.com/Canada/Sports http://www.exportersindia.com/ammar-enterprises/ http://haryanaforest.gov.in/Act%20and%20Rules/WoodbasedIndustriesAct.aspx http://haryanaforest.gov.in/Home.aspx http://begincricket.blogspot.in/p/cricket-ball.html http://www.dcmsme.gov.in/reports/leather/PPCRICKETBALLS.pdf http://www.ajsports.in/company-profile.htm http://www.ec21.com/companies/cricket_ball.html http://www.indianyellowpages.com/india/manufacturers/c/cricket-ball.htm http://www.exportersindia.com/indian-manufacturers/cricket-ball.htm

171

172 Executive Summary

The major Industries in Canada are Automobile manufacturing, pulp and paper, iron and steel work, machinery and equipment manufacturing, mining, extraction of fossil fuels, forestry and agriculture.

Canada is the second-largest country in world with a good strategic location. it is One of the wealthiest nations of the world, Also a member of the Organization of the Economic Cooperation and Development (OECD). It has good economic stability. The imports are higher than the exports from other country.it has tenth largest economy in the world.

The Canadian economy is dominated by the service sector. Canada is a democratic country with a parliamentary Government. The inflation rate of Canada is 2.9% at the end of the year 2011, Canada has the multicultural people from all over the world. The social class included the upper class 3-5 %.upper uppers 1%, lower upper 2-4%,middle class 40-50%,working class 1/3,lower class 20% out of total population. Technical aspect included the very wide usage of internet and new technology over the country. Government of Canada with responsibilities for coordinating environmental policies and programmes as well as preserving, serving and enhancing environment.

Canadian legal aspects included the both common law and civil law.the business relation between india and Canada are good. Canada also welcome‘s the business Investment.

Examining the overall industrial strength, weaknesses, opportunities, and threats will weigh the potential for success or failure. Strengths and weaknesses study the internal factors influencing the organization while opportunities and threats provide insight into the external factors.

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We Are Going to Compare Handicraft Industry of Both the Countries India and Canada, so as per Our Study We Are Find out The Current Situation of Both the Handicraft Market India As well As Canada. India Having A Great Market Potential, Skilled Workforce And Diversify Market As Compare To Canada. And Canada Having Better Facility Of Technology And R & D And Government Support As Compare To India. By The Supply Chain Management We Are Come To Know That How Our Product Reach To The Final Customers With Their Satisfaction. By The Import-Export Analysis We Can Know The Rules And Regulation Of Both The Countries. According To The Rules An Regulation We Can Easily Trade And Establish New Business In Canadian Handicraft Market.

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Part I: Country Profile

1.1 Introduction

India, alongside Brazil, Russia and China – the four highly touted ―BRIC‖ countries – is one of the world‘s most promising markets, and the country is a priority both for the Government of Canada and for many of the provinces. Yet, the potential for Canadian business has never been fully realized, either in terms of trade or foreign direct investment. Canadian corporations have been slow to embrace the Indian market – and have had a number of memorable stumbles –though that appears to be changing with the entry of some powerful new players. That has been never realized by any of the country without entering there with new and innovative ideas.

The United States will remain Canada‘s top financial partner, but the downbeat impact the modern economic disaster had on our southern neighbor has made Canadian businesses understand that they must diversify their trade and investment. Many Canadian companies are looking to do business with Asia. While Asia is isolated and alien to many Canadians, its booming demand for Canadian commodities, services and high-tech products make it appealing. It is a source of opportunities and challenges that Canada cannot afford to overlook.

This study examines why performance has not been better and makes recommendations on what needs to be done both by government and by business. The goal is to produce a piece of research that is timely and valuable

3 | P a g e both to the business community and to the federal and provincial governments, although it is not necessarily reflective of their views.

1.2 Geographic Profile of Canada

Location Northern North America, bordering the North Atlantic Ocean and North Pacific Ocean, north of the conterminous US

Area Total - 9,984,670 sq km; land – 9,093,507 sq km; water - 891,163 sq km. Canada is the second-largest country in world (after Russia) with a strategic location between Russia and US via north polar route. It is slightly larger than the US. Approximately 85% of the population is concentrated within 300 km of the US/Canada border.

Land Total - 8,893 km; border countries - US 8,893 km (includes 2,477 boundaries km with Alaska). Coastline 243,791 km

Climate Varies from temperate in south to sub-arctic and arctic in north.

Terrain Mostly plains with mountains in west and lowlands in south-east.

Elevation Lowest point - Atlantic Ocean 0 m; highest point - Mount Logan extremes 5,959 m

Natural Continuous permafrost in the north is a serious obstacle to hazards development. Cyclonic storms form east of the Rocky Mountains, a result of the mixing of air masses from the Arctic, Pacific, and North American interior, and produce most of the country's rain and snow.

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1.3 Economic Overview of Canada

An abundance of natural resources gives Canada a unique advantage. The country produces more than 60 minerals and metals, which comprise approximately a sixth of its total exports. Some of the metallic minerals Canada produces include gold, nickel, uranium, bismuth, zinc, cobalt, and cadmium. Potash, diamonds, and cement constitute the country‘s nonmetallic mineral production. Coal also forms a substantial portion of Canada‘s mineral assets.

Nominal GDP US$ 1,737 billion (2011) GDP per head US$ 50,436 (2011 est.) GDP growth 2.1% (April 2012 est.) Inflation 2.9% (2011) Labour force 19 million (2011 est.) Unemployment 7.5% (2011) Automobile manufacturing, pulp and paper, iron and Major industries steel work, machinery and equipment manufacturing, mining, extraction of fossil fuels, forestry and agriculture. Major Trading United States, UK, Japan and China Partners Exports US$462.4 billion (2011) Automobiles and parts, machinery and equipment, high- Exports – technology products, oil, natural gas, metals, and forest commodities and farm products. Imports US$493 billion (2011) Machinery, electric machinery and equipment, industry Imports – goods, motor vehicles and parts, minerals fuels and oils, commodities plastics. Gross Govt. Debt C$1460 billion (2011) Government debt 85% (2011) (% of GDP) Exchange rate £1 = C$1.58 (September 2012

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1.4 Demographic dividend:

The societies of developed nations, led by Japan, and some developing nations, such as China, are aging. Their populations will decline and the cost of looking after retirees will soar, falling on the shoulders of fewer and fewer working age citizens. In sharp contrast, India has a very young and desirable demographic (except for the country‘s ancient political class). By 2020, the average age will be 29, compared to 45 in Western Europe and 48 in Japan. That means that in India there will be lots of working age people for many decades to come and relatively few older people to support, so that the already low ―dependency ratio‖ will drop even further. There is also the intangible value of younger people with fresh ideas, an acceptance and intuitive understanding of technology and a greater willingness to take risks.

Area 9,984,670 million sq km Population (estimated population) is 34.03 million (July 2011 est) Capital city Ottawa People Canada is a multicultural country with people from all over the world who have now made Canada their home. Ethnic Groups (wholly or partly): North American Origin 40%, British Origin 33%, French Origin 16%, Other European 29%, Aboriginal peoples 4%, South, East & South-East Asian 9%, Other (mostly Caribbean, Arab, African, Latin/Central/South American and West Asian) 6%. The total comes to more than 100% because many Canadians (approximately 38%) have a mixed background. Languages Canada has two official languages, English (59%) and French (23%). 17% of the population has another language as their ‗mother tongue‘. Religion(s) Roman Catholic 43%; Protestant 23% (including United Church 9%, Anglican 6%, Baptist 2%, Lutheran 2%), other Christian

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4%, Muslim 1% other and unspecified 11%, none 16%. Currency Canadian Dollar (known as the ―Loonie‖ - a native bird). 1 Dollar is made up of 100 cents. Major The main political parties at federal (i.e. national) level are: political Conservative Party, Liberal Party, Bloc Quebecois (in Quebec parties Province only) and New Democratic Party (NDP). The Liberals and NDP are also represented at provincial level. There are also some notable provincial parties, e.g. the Progressive Conservative Party, the Parti Quebecois in Quebec, the Saskatchewan Party and the Yukon Party Government Canada is a constitutional monarchy and a federal state with a democratic system of government based on the Westminster model.

Head of Queen Elizabeth II (since 6 February 1952), represented by State Governor General David Lloyd Johnston (since 1 October 2010). Head of Prime Minister Stephen Harper (since 6 February 2006) Government Foreign The Honorable John Baird (May 2011) Minister Membership Member of the Commonwealth; North America Free Trade of Association (NAFTA); North Atlantic Treaty Organization internationa (NATO); Organization of American States (OAS); G8; G20; World l Trade Organization (WTO); La Francophone. groupings/o rganizations

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1.5 PESTEL Analysis of Canada

A: - Political Analysis

Canada is a democracy with a parliamentary Government. There Government consists of three parts: Federal, Provincial and Municipal. Canada has a multi- party system in which many of the country's legislative practices derive fromthe unwritten conventions of and precedents set by the United Kingdom's WestminsterParliament.Canada has evolved variations: party discipline in Canada is stronger than in the UnitedKingdom and more parliamentary votes are considered motions of confidence, which tends todiminish the role of non- Cabinet Members of Parliament (MPs). Such members, in thegovernment caucus, and junior or lower-profile members of opposition caucuses, are known as backbenchers.

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House of commons Conservative (165), new democratic(101), liberal(35), bloc Quebecois (4), Green (1), Independent (1)

Senate Conservative (61), Liberal (41), Progressive conservative (1).

Other parties Canadian action, Christian heritage, communist, first people, Libertarian, marijuana, pirate, progressive Canadian, united, western block.

Notable historic parties Anti – confederate, bloc popular, labour.

B: - Economic Analysis Canada has tenth largest economy in the world. One of the wealthiest nations of the world, Canada is a member of the Organization of the Economic Cooperation and Development (OECD) and the G-8. Canada‘s economy is dominated by the service sector. One of the few nations in the world to be a net exporter of energy, Canada finds its place amongst the top ten trading nations in the world. Canadian inflation rate rose less than expected in December, ending the year at 2.4% January 25, 2011.

Canadian inflation rate ended 2010 at 2.4%, shy of market expectations for a 2.5% increase although higher than the 2.0% recorded in November. The Bank of Canada's measure of core inflation also moved higher in December to 1.5% relative to a year earlier from 1.4% in November. Market forecasts were for the core rate to rise to 1.6%. Nearly 70% of Canada‘s Gross Domestic Product (GDP) is contributed by its service sector, which employs over 75% of the country‘s population. The country‘s agriculture sector contributes only 2% of the GDP, employing a similar proportion of its people.

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C: - Social Analysis  Social Class in Canada Much of their wealth is inherited, their children go to private schools and they exercise great power in The Upper 3 to 5% of Canadians fall occupational positions. Class into this class. Although this group has historically been primarily of British origin, it is now more widely distributed. One percent belongs to Upper- One percent belongs to an an upper-upper level uppers upper-upper level distinguished Lower- The remaining 2-4% falls Depend more on earnings uppers into the lower-upper level than inherited wealth Because of its size it has tremendous influence on patterns of North American culture. There is considerable racial and ethnic diversity in this class and it is not Roughly 40-50% of the The Middle characterized by familiarity. Canadian population falls Class The top half of this category is into this category termed the "upper-middle" class with family incomes of $50,000 to $100,000 earned from upper managerial or professional fields. The rest of the 6middle class (average

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middles) typically work in less prestigious white-collar occupations or highly skilled blue-collar jobs. According to the SocialDiversity, the middle class dominate the Calgary Stamped Have lower incomes than the This class comprises middle-class and virtually no The Working about one-third of the accumulated wealth. Their Class population jobs provide less personal satisfaction In 2001 roughly 15% of the Canadian population was labeled as poor. Many are The remaining 20% of supported entirely by welfare The Lower our population is payments while others are Class identified as the lower among the "working poor" class. whose incomes are insufficient to cover necessities like food, shelter, and clothing.

 Income The average family income in 2000 was $66,160; Top 20% of families receive 43.6% of the income, while the bottom 20% receives only 5.2% of the income. This level of inequality has been maintained for 45 years. Clearly, Canada has less income disparity than the United States

 Schooling

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Education is an important determinant of labor force participation, occupation and income, and it is highly valued in Canada and other industrial societies. Although education is generally conceived to be a right, there has not always been equal participation by women. Lately, women have completed more schooling than men.  Gender Women earn less income, accumulate less wealth and enjoy less occupational prestige than men  Poverty in Canada Approximately 4.4 million Canadians live below the "poverty line," that point below which people spend approximately 55% of pre-tax income on food, clothing, and shelter. A recent United Nations report has criticized Canada for making no measurable progress in alleviating poverty. A "wealthy" society finds 2 million people regularly making use of food banks and soup kitchens. Children are more likely to be poor than any other age group. 15.6% of people under the age of eighteen are officially classified as poor. Canada is on average very low but improves over time as they acculturate to Canadian society. The poverty rate for the elderly has been declining but as the boomers retires; we will see a rise in the absolute number of elderly poor.

D: - Technological Aspect

 Internet

The internet becomes an important source of information, marked by the popularity of such sites as Wikipedia and Google Earth. Many articles have been contributed to both the English and French language versions of Wikipedia by Canadians and many of these relate to important aspects of Canadian life. There are thousands of Canadians who use the service every day in both English and French. Google Earth, a virtual globe, is an on-line feature offered by Google since 2005. It provides aerial views of the earth,

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including Canada and is viewed by thousands of web users every day including many Canadians. Another internet information service, a telephone directory, Canada 411.ca has become very popular since introduced in recent years, so much so that the delivery of the residential paper telephone book which was introduced to Canada in 1878, will cease in major cities in 2010.

 Digital Communication / HD TV (Delivery)

Two Toronto-based companies, Sirius Canada and XM Canada introduced direct-to home/car, digital satellite radio service in December 2005 and by 2008 had 750,000 and 400,000 subscribers respectively. In 1999 Telesat launched the first of four Nimiq direct broadcast satellites which provide the space-based satellite transmitters for these services.

E: - Environmental Aspect

Environment Canada (EC), legally incorporated as the Department of the Environment under the Department of the Environment Act (R.S., 1985, c. E- 10), is the department of theGovernment of Canada with responsibility for coordinating environmental policies and programsas well as preserving and enhancing the natural environment and renewable resources.Duties includes  The preservation and enhancement of the quality of the natural environment, including water, air and soil quality;  Renewable resources, including migratory birds and other non-domestic flora and fauna;  Water & meteorology;  The enforcement of any rules or regulations made by the International Joint Commission;  The coordination of the policies and programs of the Government of Canada respecting the preservation and enhancement of the quality of the natural environment.

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F: - Legal Aspect

The Canadian legal system has its foundation in the British common law system, inherited from being a former colony of the United Kingdom and later a member of the Commonwealth of Nations. Quebec, however, still retains a civil system for issues of private law. Both legal systems are subject to the Constitution of Canada. Legal structure of the country consists of Legal traditions which include 2 main and some other areas of laws:

Main laws:

Common law and Civil Law

Others Areas of law:

Aboriginal Law, Administrative Law, Civil and Human Rights Law, Contract Law, Constitutional Law, Copyright Law, Criminal law, Evidence Law, Family Law, Immigration and Refugee Law, Labor and Employment Law, Patent Law, Procedural law, Property Law, Tort Law, Trade-mark Law

Common law: All provinces and territories within Canada, excluding Quebec, follow the common law legal tradition. Equally, courts have power under the provincial Judicature Acts to apply equity. Only the Supreme Court of Canada has authority to bind all courts in the country with a single ruling. The busier courts, such as the Court of Appeal for Ontario, for example, are often looked to for guidance on many local matters of law outside the province, especially in matters such as evidence and criminal law.

Due to Canada‘s historical connection with the United Kingdom, decisions of the House of Lords before 1867 are technically still binding on Canada unless they have been overturned by the Supreme Court of Canada, and Canada is still bound by the decisions of the Privy Council before the abolishment of appeals to that entity in 1949. Criminal offences are found within the Criminal

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Code of Canada or other federal/provincial laws, with the exception that contempt of court is the only remaining common law offence in Canada.

Civil Law

For historical reasons, Quebec has a hybrid legal system. Private law follows the civil law tradition, originally expressed in the Coutume de Paris as it applied in what was then New France. Today, the jus commune of Quebec is codified in the Civil Code of Quebec. As for public law, it was made that of the conquering British nation after the fall of New France in 1760, which is the common law.

It is important to note that the distinction between civil law and common law is not based on the division of powers set out in the Constitution Act, 1867. Therefore, legislation enacted by the provincial legislature in matters of public law, such as the Code of Penal Procedure, should be interpreted following the common law tradition. Likewise, legislation enacted by the federal Parliament in matters of private law, such as the Divorce Act, is to be interpreted following the civil law tradition and in harmony with the Civil Code of Quebec.

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Part II: Comparative Study of Business environment Between Canada & India

2.1 Introduction

As it looked outward, and the world has come to do business with the South Asian dynamo. India‘s merchandise trade with the world increased more than six-fold over the past decade, from US$86 billion in 1999 to more than US$470 billion in 2009, with growth of imports outperforming that of exports.7 In 2008, India was the 16th largest importer and the 27th largest exporter in the world, and it has a minor trade deficit equivalent to two per cent of GDP. The balance between India‘s imports and exports attests to that country‘s home-grown economic dynamism. Compared with regional neighbors‘, India‘s composition of GDP is more healthily tilted toward domestic consumption. India is also a major trader and net exporter of services, with exports of US$123 billion and imports of US$116 billion in 2011. Increasing trade in goods and services points to Indian companies globalizing.

Over the past five years, India has made strides in both labour-intensive manufacturing and high-value-added production in sectors such as biotechnology and pharmaceuticals. Corporate investment in new plants and equipment, human capital and access to global supply chains is sowing the seeds of a successful Indian manufacturing sector that will develop over the coming decades. Improvements to transportation and utilities infrastructure get products to end markets at home and overseas with greater efficiency than in the past, though much more remains to be done

2.2Canada-India Relations

Someone not familiar with the history of Indo-Canadian relations might assume that a democracy like Canada with roots in the British Empire and the

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Commonwealth would be a natural partner for India, though not with authoritarian, Communist China. Someone assuming this would be wrong. Relations were not only poor for decades, but there was a mutual feeling of betrayal, which grew out of the different world views of the two countries during the Cold War. Non-aligned India was sympathetic to the Soviet Union while Canada was an ally of the United States. The two clashed as members, alongside Poland, of the long-running (1954-1973) International Commission for Supervision and Control, established to oversee the end of the war in Indo- China. There was an even longer and bitterer battle over nuclear weapons. Canada felt deceived when India carried out a nuclear test in 1974, which was made possible by technology that Canada had provided.

India refused and still refuses to sign the Non-Proliferation Treaty, arguing with some good reason that the treaty favours the original nuclear powers, who have failed to meet their promise to disarm. India under the nationalist BJP carried out more tests in 1998, provoking an outraged reaction from Canadian Foreign Minister Lloyd Ax worthy as well as sanctions. Commented the minister, ―India‘s recent nuclear tests constitute a clear and fundamental threat to the international security regime and, thus, to Canada‘s security. Because of these tests, and the danger that Pakistan will give in to the enormous political pressure it is now facing at home to do likewise, the clock has been turned back to where we were 40 years ago – facing a world in which proliferation is an immediate threat.‖ Ax worthy was right about the threat from Pakistan, which exploded five underground nuclear devices two weeks later. (In retrospect, it would have been better for Canada and India to ―agree to disagree‖ on the nuclear issue, and make progress in other areas of the relationship).

In November 2009, after many months of negotiation, and holdups because of a disagreement over visas for Indian scientists (which were military and which civilian?) and Canadian concerns about the possibility of future nuclear tests, Canada and India came to agreement on a Nuclear Cooperation Agreement.

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Canadian firms would be allowed to export and import previously controlled technology, equipment and materials with India. With the nuclear question off the table, a cloud that had hung over relations for decades had finally been lifted, with the result that there are no significant issues between the two powers.

2.3Canada-India ties

India is a vast country with assorted climate, terrain, culture, language and economic profile across its states and unification territories. It is a assemblage of markets centered on rapidly increasing in metropolitan areas. There are a dozen or so large Indian cities, mostly in the western and southern parts of the country, which are already well associated with the global economy. The number of large centers is growing. In contrast, India‘s vast rural areas and population are poorer, more isolated and the source of a growing influx of migrants into urban areas.

A number of mostly larger Canadian businesses have been very active in India for years and are familiar with the country and its markets. Beyond that, Canadian businesses‘ familiarity with India remains limited. Just as problematically, India‘s businesspeople, media and middle class have only a limited awareness of Canada. For some, Canada is thatcountry next to the United States—full stop. There are exceptions. Parts of wealthy states, such as Gujarat and Punjab from where immigrants to Canada have come, are more aware of our country. Real efforts are needed on the part of Canadian companies to market themselves in India‘s other hotbeds of growth.

Successful Canadian companies pitch their products and services to help Indians meet their needs. They have adapted their offer to match those needs. What are the strengths Canada has relative to other countries?

 Financial services: India and other developing economies appreciate Canada‘s conservative approach to financial services.

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 Mining: Canada‘s mining sector—the raw materials, the engineering, the environmental and legal services associated with mining, as well as mining finance—is a true Canadian cluster of expertise.  Energy: Canada has plentiful and reliable energy. It is a huge and politically reliable producer of fossil fuels that can be exported by sea. It has high-grade uranium for peaceful energy production.  Agri-food: The Canadian agri-food sector can answer India‘s need for reliable food imports to feed its growing population and better technologies for producing, processing and delivering food domestically.  Healthcare: India‘s healthcare needs have become prominent and the country‘s healthcare and pharmaceuticals sectors are developing briskly.  Infrastructure: India‘s infrastructure development needs are massive. The country will be spending upward of a trillion dollars over the next five years building and upgrading everything from roads, airports and seaports to railways, bridges and urban architecture.  Machinery and equipment: India‘s manufacturing sector is developing rapidly. Demand for cutting-edge industrial machinery and equipment and the engineering talent to produce them is outpacing what India can provide itself.  Logistics: On logistics, Port of Halifax and Canada‘s Pacific ports are uniquely positioned as entry-exit points for goods transiting between America and India. The ports have the potential of being North American trade gateways to India.  Post-secondary education: India has traditionally sent more students, and many of its best students, to the United Kingdom, the United States and Australia. Yet many Canadian universities rank high in sciences, engineering and business education, and our country has a network of colleges that train highly competent people in a range of trades

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2.4Benefits of India doing Business in Canada

Canada's business costs are the second-lowest recorded in the study, and 5 percent lower than in the USA. Canada leads all G7 countries in ease of doing business, according to the 2009 IMD World Competitiveness Yearbook. Also, the Economic Intelligence Unit forecasts Canada as the #1 place to do business in the G7 for the next five years (Invest in Canada).

Among the competitive advantages you can enjoy doing business in Canada, the Invest in Canadawebsite highlights:

 Canada's stability – Canada has "banks you can bank on" and, according to Dun & Bradstreet's Global Risk Indicator, Canada is considered one of the world's safest countries to invest.

 Canada's highly-skilled work force – Canada has the most highly-educated population in the OECD and "attracts the best and brightest from every corner of the globe".

 Canada's industry strengths – "Cutting-edge American producers recognize Canadian leadership in industries such as fibre optics, aerospace and biopharmaceuticals." The country is also a world leader in fields as diverse as medical devices, digital gaming, and agri-food.

 Canada's strategic location – Canada is the "crossroads between the North American marketplace and the booming economies of Asia".

 Canada's lifestyle advantage – Clean, calm and spectacular sums it up. It's a stellar place to work, live and raise a family.

And to top off the list of advantages to doing business in Canada, Canada offers businesses low tax rates. Today, Canada has the lowest payroll taxes among the G7 countries and by 2012 Canada's corporate income tax rate will fall from 18 percent in 2010 to 15 percent in 2012 - less than half of the U.S. rate (Invest in Canada).

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Perhaps one of the best reasons to consider doing business in Canada, though, is that Canada welcomes business investment. Continue on to the next page to read about the Canadian government's special services for foreign investors and sources of information on Canadian industries.

One of the site's most useful features is its Global Investment Network. The Invest in Canada site is designed as a one-stop resource for foreign investors. It provides "immediate, accurate, and personal responses" to requests for information, and will develop international and NAFTA business cost comparisons, including taxes and wage rates, for your business scenario. The government's network of world-wide contacts can be invaluable in getting investment advice and developing the market for your product or service.Servicesare free of charge and confidential.

The Canadian Trade Commissioner Service (provided by Canada's Department of Foreign Affairs and International Trade), is another outstanding service for non-Canadians seeking to do business in Canada. This global network of business professionals with offices in over 130 cities around the world will help you find Canadian suppliers, put you in contact with Canadian companies so you can develop business relationships, and help you invest in Canada or expand your Canadian investment.

Need information on a specific industry? The Invest in Canada website provides profiles of Industry Sectors such as Aerospace, Information and Communications Technologies, and Agri-Food. Statistics Canada is another outstanding source of industry information. On this page, you'll find free statistical information on the Canadian economy, including primary industries, communication, transportation and trade, and international trade.

The most complete index of Canadian industry information online is on Industry Canada's Strategis website; you can search their Business Information by Sector alphabetically or by industrial category, or go directly to the Canadian Industry Statistics. Made your decision and want to get down to

21 | P a g e doing business in Canada? The next page of this article explains how to establish a business in Canada.

Subsidiaries and branches are treated differently in terms of taxes, the ability to raise capital, and the extent of the parent company's liability. Generally, a Canadian subsidiary may not be consolidated with other operations for foreign tax purposes, so establishing a branch operation may be beneficial to offset initial losses. Steven W. Smith and Frank Zaid of Osler, Hoskin, and Harcourt LLP discusses the issue of Branch versus Subsidiary in "Forms of Business Ownership In Canada".

The next decision is whether to incorporate your company federally or provincially. If you incorporate federally, your business will be empowered to conduct business throughout Canada. Although your corporation will still be subject to provincial regulations, and will have to pay a license or registration fee in some provinces, no province will be able to prevent your company from conducting business under its corporate name. A provincially incorporated company, on the other hand, may not be able to operate under the same name in another province, if another corporation with a similar name already exists in that province.

One disadvantage of federally incorporating your company is that the composition of your company's board of directors must meet the requirements of the Canada Business Corporation Act. Under this Act, a majority of the directors of a federally incorporated company must be resident Canadians, unless "a holding corporation earns in Canada directly or through its subsidiaries less than five per cent of the gross revenues of the holding corporation and all of its subsidiary bodies corporate together, then not more than one-third of the directors of the holding corporation need be resident Canadians" (...Incorporation Kit, Corporations Canada).

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Industry Canada's Small Business Guide to Federal Incorporation provides detailed information on how to federally incorporate your company. Federal incorporation costs $200 (if done online) plus fees for other steps of the process, such as a NUANS (name search). If you incorporate your company provincially, you'll have to register and license your company through the appropriate provincial Registrar in each province and territory you wish to do business in, outside of the original incorporation jurisdiction. (See my incorporating a Business in Canada library for information on incorporation procedures for different provinces.) So if you incorporate your business in Ontario, and then want to operate in New Brunswick as well, you'll have to register your business with the New Brunswick Registrar as well, and pay the appropriate additional fees. Incorporation fees vary from province to province. Whichever form of business you choose, you will have to comply with the Investment Canada Act. Continue on to the next page to learn how this Act will affect your doing business in Canada.

2.5Canadian Companies that do Business in India

It is no surprise that Canadians are more risk-averse than their neighbors to the south, whose nation, unlike Canada, was created out of revolution and a frontier culture. Americans had a war of independence against Britain, while Canadians had the Loyalists, who fled to Canada out of fealty to the British Crown. And more than in the US, Canadian business has been dominated by powerful families – the Montreal and Toronto Bronfmans, the Desmarais‘, the Westons, the McCains and the Irvings – who generally have been more interested in preserving what they have gained for the next generation than in taking outsized risks.

However, in an increasingly globalized world, in which most of the growth is coming from Asia and emerging economies, and in which prospects for the US are in question, this conservatism is going to have to come to an end if Canadians want to maintain their extraordinarily high standard of living. That

23 | P a g e is perhaps most apparent in Ontario, where the traditional mainstay of the economy, the auto and auto parts industries, are in sharp and seemingly long- term decline. On the resource side, tellingly, many of the iconic companies such as MacMillan Bloedel, Falconbridge and Inco are now owned by foreign firms; indeed, Inco is owed by Brazil‘s Vale S.A. The greatest corporate symbol of Canada, Canadian Pacific Ltd., whose railway united Canada in the late 19th century, was broken up between 1996 and 2001.

Fortunately, both the perception and the reality are changing. Some powerful new Canadian players are investing in India or scouting out possibilities. The federal and provincial governments are finally engaged, tripping over one another as they rush to the airport to catch flights to Delhi (visits by the Prime Minister, the Ontario Premier and the Quebec Premier followed in quick succession starting in November, 2009). The EDC vastly increased its business volume to $1.8 billion in India in 2008, up from only $200 million in 2001. Though the reform process has a long way to go in India, Prime Minister Singh has a freer hand than before the 2008 election to make changes. The country is opening itself up, aware that it needs diverse economic partners. And after more than three decades, the troublesome nuclear issue is finally off the table and relations are improving.

2.6The Early Years in India: A Bleak Landscape

Few Canadian companies ventured to India before the 1991 reforms. As a Globe and Mail reporter wrote from a village near Pune in September 1989, when the ―Licence Raj‖ was still in full swing, New Delhi ―does not bend over backwards to make it easy to set up collaborations. It has a rigorous and very choosy licencing process for determining whom it will let in and where, and what they will be allowed to manufacture.‖ The Canadian High Commission said that only five or so of every 35 or 40 projects actually materialized. And when Canadians went to Asia, even after the reforms, they generally preferred China or elsewhere in East Asia. As a Canadian businessman quipped in

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December 1993 from New Delhi, after a visit to Beijing, ―The difference between India and China is that when you pay a bribe in China, something gets done.‖Even then, Canada was missing the boat, amidst the growing realization that the India market, despite its problems, had great potential (and despite good reporting from The Globe and Mail‘s New Delhi-based development reporter John Stackhouse, who is now the paper‘s editor-in-chief). There was a complete lack of marketing. On a 1995 trade mission, Raymond Chan, Canada‘s Secretary of State for Asia, discovered that some of those he met thought the Dash 8, which was made by de Havilland in Toronto, was a Polish plane. This at a time when the US Commerce Secretary was arriving in a White House jet with 200 CEOs and the British foreign secretary was visiting with executives in a Concorde.

Canada‘s profile was lifted, at least temporarily, by Prime Minister John Chrétien‘s January, 1996 Team Canada visit along with seven premiers, and claims that $700 million in contracts was signed with another $2.2 billion in the pipeline. Chrétien said he was ―delighted we have overachieved on this trip.‖ However, there was little corporate follow-up and the claims turned out to be wildly exaggerated.

Only a handful of Canadian companies, including Nortel, Alcan Aluminum Ltd. And engineering concerns such as Acres and Agra, and especially SNC-Lavalin, did business in the sub-continent. Bata had been there successfully since the 1930s. Sun Life Financial arrived in 1892, was thrown out when insurance was nationalized in the 1950s, and made a successful return in 1999. The banks made a foray, in a great sweep of optimism in the

1980s and 1990s, with varying degrees of success. Trade and investment were negligible. As recently as 2005, the federal minister of international trade, Jim Peterson, who was leading a trade mission to India, admitted that ―India is a country of over a billion people, the world‘s largest democracy and we have a

25 | P a g e very small – let me say miniscule – commercial presence in India today.‖And Alan Rosling, executive

2.7Why India?

No one denies that it is tough place in which to do business, but many say problems such as dealing with the government can be managed. As predicted, many cited as advantages the widespread use of English, the rule of law and the familiarity of some of India‘s laws, advantages not shared by China.

Once a company has decided to enter the market, the question is how to proceed. While some simply create and manage a wholly-owned subsidiary, most choose to work with an Indian partner. Corporate Canada has had the good fortune to have teamed up with some of India‘s most storied families. Sun Life Financial has a joint venture with the Aditya Birla Group; TD Bank teamed up with Tata Finance Securities Ltd.; Bell Canada International had an agreement with the Tatas; consulting engineer Acres International had an arrangement with The Mahindra Group; and Minaean International formed a strategic alliance with Tata Iron and Steel.

2.7Distinctive features of Canadian management style :-

Business management is the process of the planning, co-ordination and control of a business. To survive in the long run, a business must be profitable and liquid. To do so, it must create sufficient value for its customers so that its revenues exceed its total costs. The overall task of business management is to address successfully the problems that confront a business in its role as a value-creating organization.

In addition to their problem-solving abilities and skills, business managers must have knowledge and expertise in the seven functional areas of business: production, marketing, finance, accounting, human resources, management information systems, and product research and development. Moreover, top

26 | P a g e management must be able to co-ordinate these activities within the business so as to maximize the value of the business to its shareholders and its other stakeholders, such as employees, suppliers, customers and the surrounding community.

2.8Areas of Business Management Production managers purchase and take inventory of raw materials and semi finished inputs, manage the use of these inputs in the production process, and control final goods inventory and the shipping, transportation and distribution of final products.  Marketing managers conduct of market research to determine which products, at which prices and quantities and with which characteristics, will create value for consumers. They also manage the advertising, promotion and sales of the firm's products.  Finance managers raise capital for the firm from external sources, such as the stock market (see STOCK AND BOND MARKETS), banks (see BANKING), individuals and the PUBLIC DEBT market, and manage the internal allocation of funds within the firm. They also evaluate capital expenditures for plant and equipment and for research and development.  Management accountants collect and evaluate cost data on the wages and salaries of a firm's employees, equipment and materials inputs, and its various sources of capital. They combine these data with revenue data to determine the firm's profits, its assets and liabilities, fund-flow needs and tax liabilities (See ACCOUNTING).  Human resource managers help make hiring decisions, conduct training, co-ordinate the evaluation and reward systems within the firm, and chart and manage the careers of the firm's employees.  Research and development managers develop new process technologies to increase production efficiency and new product technologies to expand the range, quality and performance of the firm's products

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(See INDUSTRIAL RESEARCH AND DEVELOPMENT; SCIENTIFIC RESEARCH AND DEVELOPMENT).  Information systems managers manage information flows within the firm and between the firm and its suppliers and customers. Increasingly, they also provide access to the wealth of data available via the INTERNET.

The firm's overall business strategy and how it is implemented are crucial to its success. Top managers assess the strengths and weaknesses of the firm in relation to other firms in its industry (or industries) both at home and abroad; set the firm's objectives and goals; formulate and implement the firm's strategy; assess the success of the firm in creating value for its various stakeholders relative to its competitors; and, if necessary, over time revise its basic competitive strategies.

One of the most important aspects of business management is to ensure that all employees possess the information, skills, attitudes and motivation to use their full potential to achieve the firm's strategic goals. Top management influences the corporate management style, the corporate culture of interpersonal relationships and values within the firm. Top management, sometimes with the assistance of the firm's government and community relations departments, is also responsible for the management of the firm's relations with the various levels of government and the general public.

2.9Importance of Business Management to the Canadian Economy Business management is vitally important to the Canadian ECONOMY. In the mid-1990s, 80% of the Canadian work force of 15.5 million were employed in the private sector: private business accounted for almost 80% of nonresidential gross fixed capital formation; and over 90% of exports and imports. Good business management is also important for the efficient and effective operations of government-owned enterprises, such as CANADA POST, the

28 | P a g e hydro companies (BC HYDRO, ONTARIO HYDRO, HYDRO-QUÉBEC), the CBC and AIR CANADA.

Unless Canada's business sector is efficient and competitive on a global basis, Canada's economy will stagnate and its standard of living will fall. The past successes and failures of business management in Canada are reflected in Canada's rank in terms of GDP per capita (adjusted for purchasing power parity) of eighth in the world in the mid-1990s (down from fourth a decade before); its evaluation by the United Nations as the country with the highest quality of life in the world; its rank of eighth among world exporters; and its relatively poor performance in increasing its productivity over time and in developing new products and processes through research and development (R&D). In the coming decades, Canadian businesses and Canadian managers will come under increasing pressure from businesses in the US, Europe, South America and on the PACIFIC RIM.

Although each aspect of business management is important, the relative emphasis on each within a firm depends on the firm's competitive strategy and the industry and country in which it operates. Business management differs among banks, retail stores (see RETAIL TRADE) and MANUFACTURING firms, as well as among firms from Canada, the US, Japan and China. Business management in Canada has developed several unique characteristics because of Canada's geography, economy, its political, social and cultural systems, and its history.

2.10Business Management in Canada

Because Canada covers a large geographic area, but has a small, dispersed population, government has been involved extensively in infrastructure development: roads, railways, airlines (see TRANSPORT) and ELECTRIC POWER - and in INDUSTRIAL DEVELOPMENT. In Canada, government influence is more pervasive in business, industry and the economy than in the US. The decisions of business managers in Canada are more circumscribed by

29 | P a g e government regulations, but Canadian business managers are also more likely to seek government assistance than are their American counterparts.

Canada's relatively small, dispersed, but, until recently, highly protected markets and its proximity to the large, high-income US market explain several features of Canadian business management. In general, Canadian managers are more averse to risk than are managers in the US. There is a high level of foreign direct investment in Canadian industries (see FOREIGN INVESTMENT).

Some critics of the high level of foreign ownership in Canada have charged that it has reduced the scope, independence, authority and flexibility of Canadian business managers in foreign-owned subsidiaries over key decisions for their firm. They also attribute the relatively low level of R&D in these Canadian subsidiaries to the centralization of R&D activities in the home countries of the multinational enterprises (MNEs) that own them. The subsidiaries of MNEs may also be perceived by Canadian entrepreneurs as threatening due to their technological and marketing expertise, their size and global reach, and their deep financial pockets. (See MULTINATIONAL CORPORATION.)

Compared with US firms, Canadian firms have a lower percentage of managers with university educations and with formal training in business and commerce at the undergraduate and master's levels. In the past, in Canadian-owned firms, promotion to the top ranks of business management tended to be more based on years of experience with the firm and family background than on educational achievement, performance and initiative (see BUSINESS ELITES).

This situation has been changing over recent decades. Yet, by the mid-1990s, Canada still had a disproportionately small number of bachelor's, master's and PhD graduates in commerce and business administration compared to the US (see BUSINESS EDUCATION).

INDUSTRIAL RELATIONS is another distinctive feature of business management in Canada. Canadian business has a generally poor record of

30 | P a g e days lost to STRIKES. A relatively high percentage of workers, especially in the public sector (see PUBLIC-SERVICE UNIONS), are unionized in Canada, and unions tend to be more militant in Canada than in the US. Canadian management tends to be more formal, rigid and confrontational and less progressive in its relations with workers than management in the US, Europe (except the UK) and Japan. This situation has led not only to a higher level of strikes, but also to a greater rigidity of work rules, over manning and lower productivity, and to high wage costs in some industries (see LABOUR RELATIONS; WORKING-CLASS HISTORY).

2.11Future of Business Management

Canada is a trading nation with about 30% of GDP exported. Over the past decade, there have been three major changes in Canada's INTERNATIONAL TRADE environment. First, the Canada-US FREE TRADE Agreement was signed; second, the North American Free Trade Agreement was signed, and third, the WORLD TRADE ORGANIZATION (WTO), which incorporates the GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) and extends its scope and powers, was created. All three of these events have already reduced trade protection in Canada and in many of its major trading partners and will continue to reduce it in the future. As well, firms around the world have moved increasingly toward global competition.

These events have presented extreme challenges for Canadian firms and business management in Canada. Usually, business managers can undertake only one major initiative at a time. But, in order to survive and prosper, over the past decade and into the future, Canadian managers will have to undertake initiatives on three fronts: to increase efficiency and reduce costs, often by expanding to attain scale efficiency and to rationalize production among fewer products; to develop new products and processes that will enable them to compete on international markets; and to penetrate international markets in manufactured products and services.

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In response to these challenges, Canadian firms and their managers have forged strategic alliances with firms abroad and joined strategic alliance groups. They have restructured Canadian firms and whole industries so as to compete in a global economy. Subsidiaries of foreign MNEs have had to integrate themselves into the parent firm's global operations rather than act as free-standing units oriented solely toward the Canadian economy.

In general the ultimate success of these initiatives cannot be assessed. As of 1997, Canadian UNEMPLOYMENTrates were above those in the US, but below those in Europe. The growth of the Canadian economy has lagged behind expectations and its past performance during the 1970s and 1980s. Canadian EXPORTS of goods and services, however, have boomed, and, for the first time in many years, Canada ran a surplus on its current account in 1996. Not only have exports expanded rapidly, the product diversity of Canada's exports has increased dramatically (the export concentration fell by 50% from the 1980s to the 1990s) and the percentage of manufactured products in Canada's exports increased by 40% from 1980 to 1996. This trade performance represent a remarkable achievement for Canadian firms and Canadian managers.

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Part III: Industry Profile & Porters’ Five Force Model

3.1Micro/Macro Environment

Macro Environment

A market overview and PESTLE (political, economic, social, technology, legal and environmental) analysis will provide insight into macro environment trends and uncertainty that may assist an organization in their strategic direction. That we already discussed in the country profile and its study.

 Markets Canada‘s domestic oil production increased 8% in the last four years and is expected to continue growing at ~2% per annum through the remainder of this decade (EIA, 2012, p. 1). Growth is supported by direct foreign oil sands investment. Oil and natural gas capital spend, in Canada, is forecasted at $18.5 billion in 2012, of which oil sands investment accounts for 27% (Hussain, 2012). Future oil availability and pricing uncertainty have Organization for Economic Cooperation and Development (OECD) countries and emerging nations securing supply by investing in the oil sands. Current oil demand is driven by OECD countries, whereas demand growth is looming with emerging nations. Developing countries can absorb high oil prices by factoring into their economic calculation, while developed countries economies are based on cheap oil. All importing nations need low oil prices to help stimulate their economies. Short term volatility does not support long term stability and growth.

Micro Environment

The oil sand industry‘s micro-environmental factors are analyzed using Porter‘s five forces of competitive, SWOT evaluation and the competitor review.

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3.2 Porters Five Forces

Porter‘s five forces of competition is a framework that is useful in examining competition and profitability in the various industries. The five competitive forces discussed are: threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers and competitive rivalry.

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3.3 SWOT Evaluation

Examining the overall industrial strength, weaknesses, opportunities, and threats will weigh the potential for success or failure. Strengths and weaknesses study the internal factors influencing the organization while opportunities and threats provide insight into the external factors.

Strengths Weaknesses

 Diversified operating portfolios

 Development potential  Large capital commitments  Focus on high return, long term  High electricity pricing projects  Trade labor shortage  Capital discipline  Contractor availability  Scalability through improved  Knowledge drain with attrition execution  Lengthy regulatory process  Multiple construction  Shifting approval process methodologies  Long lead times to production  Optimization of existing  Energy intense production infrastructure  Environmental constraints  Operating experience  First Nation consultation  Strong operating cash flow  Upgrading and refining  Cogeneration  Reputation and image  Evolving and new technologies

 Continuous improvements  Manufacturing approach  Relationship building Opportunities Threats

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 Canadian port strategy

 Develop trade with emerging  Recession markets  Political policy uncertainty  Foreign investment –  Regional divisiveness JV/partnerships  Unbalanced national energy  Technology sharing strategy  Long term profit potential  Significant industry growth  Employment and immigration  Limited resources policy  US market monopoly  Employ First Nation and idle  Lack of supporting public Canadians infrastructure  US unemployment opportunity

 Foreign trades workers

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PART4: AN OVERVIEW OF INDIAN HANDICRAFT INDUSTRY

 India is known globally for its rich heritage of Art and Craft, it is one of the it‘s competitive advantage to make the handicraft products which ultimately shows the Indian culture‘s tradition.  Handicraft industry generates the employment and earnings of foreign exchange through exchange.  Many agricultural and other communities depend on their traditional craft skills as secondary sources of income other than farm harvesting.  There are 23 million craftspeople in India by which the handicraft industry is run.  Indian handicraft industry is the second largest employment sector of India.  Indian handicraft industry having 63% of export turnover.  India having 9 items who dominate exports of handicraft which are mention below.  Art metal ware  Wood ware  Hand printed textile  Hand-knotted textiles  Embroidered textiles  Leather goods  Stoneware  Carpets  Floor coverings

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4.1 HISTORY INDIAN ART AND HANDICRAFT  Indian handicraft was emerging above 5000 year ago. The art of spinning and weaving of cotton was known to the Hardpans sanskriti.  Even Vedas have references of artisans involved in various handicrafts of India like pottery making, weaving, wood crafting etc. The Rig Veda in particular refers to a variety of pottery made from clay, wood and metal.  In addition there are also the name of some great empires like Mauryan, Ashok under which the different things are build including SanchiStupa and various sculptures of Bharhut, Mathura, Amravati and Vaishali‘s iron pillers.  Indian Arts and Crafts of each age reflect the culture, traditions of that particular era. Every ageand empire has its influence to those times, its making India's heritage diverse and culturally rich.  The beauty of Indian textiles spread far and wide even during the ancient trade. They were very popular for their fine quality and excellent embroidery done on them.  The Buddhist religion played an important role in the style the stone sculptures.

4.2 CLASSIFICATION 0F HANDICRAFT INDUSTRY

There are two types of handicraft in India

 Article of everyday use  Decorative items  Textile based handicraft  Clay metal and jewelry  Wood work  Stone craft

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 Glass and ceramic

4.3 Craft concentration area:-

 Artmetalware: Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Rewari, Thanjavur, Madras, Mandap, Beedar, Kerala &Jagadhari, Jaselmer  Wooden Art wares:Saharanpur, Nagina, Hoshiarpor, Srinagar, Amritsar, Jaipur, Jodhpur, Jagdalpur, Bangalore, Mysore, Chennapatna,Madras,Kerala&Behrampur  Hand printed Textiles & Scarves:Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru&Sanganer  Embroidered Goods:Kutch (Gujarat), Jaisaimer, Baroda, Lucknow, Jodhpur, Agra, Amritsar, Kullu, Dharmshala / Chamba& Srinagar  Marble & Soft Stone Crafts:Agra, Madras, Baster, Jodhpur  Papier Mache Crafts:Kashmir, Jaipur  Terracotta:Agra, Madras, Baster, Jodhpur  Zari&Zari Goods:Rajasthan, Madras, Baster  Imitation Jewellery:Delhi, Moradabad, Sambhal, Jaipur, Kohima  Artistic Leather Goods:lndore, Kolhapur, Shanti Niketan

4.4 Comparison of Indian and Canadian industry

 Indian handicraft industry having large diversifying and potential market compare to Canada because India is the developing country.  Because of the diversifying culture of India as compare Canada it‘s having low barrier to new entrance.  India having the cheap labour rate as compared to Canadian industry.  Canada having strong infrastructure facility as compare to India.  Canada having better communication facility as compare to Indian industry.

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 Canada having good co-ordination between govt. and private players as compare to Indian industry.  Canada having a good promotion of product because of the technology as compare to Indian industry.  Canada facing tough competition with Indian industry because the origin of handicraft industry is India.  India having low skill labour compare to Canada.  India facing inadequacy about the technology and market trend as compare to Canada.  Canada having less flexibility of the production as compare to India.  India having great opportunity about the product demand in developed country.  Canada having better technology and R & D facility as compare to India it is the major reason thatIndian industry is not growing more.  Indian industry having more flexibility in availability of raw material as compare to Canadian industry.

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CH-5 Supply chain management

5.1 Canadian exporting rules and regulation.

The information of export goods from Canada is help to small and medium size business. Theoverview of exporting process is provides by the information and it is not replace existing rules, references and acts. Memoranda Series D1 to D22 in guideline is explained all rules, references, regulation and programs. Proof of export, Canadian ownership, and destruction of commercial goods are explained by memorandum D20-1-4.

5.2 Before Exporting

Following information keep in your mind if you want to export goods from Canada.

1.For an import and export you must obtain a number of businesses from Canada revenue agency.

2.We can export goods which are identified. Give accurate description of the goods for planning of export proceeding.Regulation related to the exportation of various commodities are applying by The Canada Border Services Agency assists other government departments and agencies (OGDs). The determination of export goods are controlled by the OGDs. And it also says about the permit and certificate if it is required.

3.Origin of goods is determining country wise. Permit requirement is affect by the nature and origin of the goods. Detail information of origin is described in memorandum series D11 of general tariff information.

As an example:

 General export permit is requiring if the value is more than 2000$.

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 The good which is origin by United State is not required permit to export into United States.

You can also visit Export-Import control, foreign affairs and international trade Canada for information of export permit.

4. To make the goods can be exported. There is some prohibition for export.

As an example:

 The drugs act specially for controlling drugs and narcotics.

5. It should be determine that whether the goods are not restrictions or other requirement.

As an example:

 To Control exports:

Following are the information.

To visit a foreign affairs and international tread Canada export and import controls and export controls online.

 To permit the export:

The export and import act prepared for control and permit export.

 The area control list.

According to B of Memorandum D19-10-3 with the help of export and import permit act to list out the countries for administration.

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6. The receiving country must permit exporting goods. The product of the export country must be meet the requirement of the product of the import country.

The Process for exporting.

7. It has three main objective of CBSA.

 Export statistics must collect the information in timely and accurate.

 To control the dangers goods as well as other control and regulated goods.

 Also the Control the movement of in transit goods. 8. To verify that the good is not required to be reported on an export declaration.

According the act of parliament the export declaration says that the good is being exported to another country.

The following are the example of exempted goods as per the sec 6 and 7 of memorandum D20-1-0.

 The consumption of the goods is United States. Goods

 Good should be less than 2000$ CAN.

 The goods should be diplomatic.

9. It should be noted that goods are not controlled regulated and prohibited by other government department.

It must be reported to the CBSA when;

 The commercial good should me more than 2000$ CAN.

 The destination of the goods is united states, U.S Virgin islands.

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It should not required of declaration is you are exporting to United States.

10. According the act of parliament all goods controlled or prohibited and also must be reported to CBSA regardless of their value.

The requirement of all permits lcience or certificates as per the rules given by govertment department and agency.

11. Note: The electronic reporting system is started by CBSA and it would be effective on 1st April 2012.

12. The exporters has to submit their report to the export to the prior notice of the CBSA.

Least time for reporting;

 By plane- the goods should be weighed down minimum before two hour.

 Highway - earlier to export;

 sea - forty-eight hours previous to goods are weighed down;  Rail - two hours previous to goods are weighed down.

13. It should be verify that the goods should be reported at it’s selected export office which is situated inland or at the boundary.

With the rules and regulations of export permit license and certificate should be presented to the site will be indicate on the allow.

6.3 Before Importing

Goods are imported into Canada must be.

1.With the help of Canada revenue agency it should be find a business number for and import export account.

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2.To recognize goods planning for importing. Previous to the procedure it must have sufficient explanation of goods which planning to import.

3. Find out import and export countries

4.To ensure that goods are not illegal from coming into Canada.

Following goods are illegal to bring in Canada.

 Material which is measured to be obscene, rebellious, disloyal, misinformation, or kid pornography;

 All kinds of used material.  Goods should be protected by copyright.

5.To give the explanation about the goods which may or may not be to import that is subject to control and other requisite.

For an example;

 To control imports

 The drugs is used for human

 scarce natural world and plant life:. .

 explosive:.

 firearm, arms, and strategy.

 dangerous goods:  Import license:

For getting license of importing you must visit foreign affairs trade, export controls and import controls.

6. Explanation of tariff classification number (10digit) compulsory for all items.

It can be explain by:

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 To visiting CBSA office, and

 To requesting an advance ruling for tariff categorization from CBSA client services office.

7.It must tariff classification number.

Most Favoured Nation (MFN) Tariff

Under this MFN tariff goods are delivered all the countries except North Korea.

8.To give the explanation about the goods which are subject to services tax.

9.To give the explanation about the duty.

To make sure that vendor has to provide with a receipt and sales invoice and this include complete information about the goods are to be sealed price and rules and regulation of sales.

The duties basically the price which paid for the selling price transformed into Canadian funds.

10.To analyze duties and taxes:

To convert the Canadian dollar using the trade price from the date of direct consignment.

11. To make sure that the good is reported.

Cargo control document and electronic data interchange system has to statement to the CBSA.

If the value of consignment is more than 1600$ CAN.

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 When the goods arrived has to be notified.

 The information must be provided to the courier services about the arrival of consignment should be more Canadian dollar 1600$.

12.be sensitive that your shipment may be examine:

 Boundary services officers may assess your consignment to check compliance with CBSA necessities or other government department limitations. we are responsible for the limitations

13. The CBSA offers other service options to further the handing out and free of goods. Above of these processes involve electronic data interchange technology and has replace some paper free options.

14. they may be revenue unbiased or they also give refund it.

We are required to accurate the information inside 90 days later than we discover the mistake where the vary is returns or you owe us money. you must pay that amount and the valid interest.

15. It has to keep all the documents related of the importation following six year.

16. Adjustments by the CBSA:

If we regulate that accounting document, will be issue a Detailed Adjustment Statement (DAS) that outlines the amendment and you must pay taxes and duties within 30 days.

17. Dispute resolution process and right to appeal:

According to the importer it has to check and ask for the fair review of most decision that taken by the tariff classification.

18. It has to decrease custom, duties on qualified goods. Duties relief program:

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20. Remissions and impermanent importations.

In this rules specify that some good should be penetrate duty free in Canada.

21. Designated commercial offices provide 24 hour service 7 days a week for the coverage and clearing of viable goods.

22. To obtain CBSA publication refer to CBSA Forms and Publications. You may also order publications by visiting the Government of Canada Publications Web site.

23. The information regarding about the federal departments included in the commercial importing process.

24. For more information related to CBSA requirements, contact BIS or your regional CBSA Client Services Office.

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Company Profile

Name of the Company : Super-Nova

Location : 235 E. Main Avenue, Ontario, CA 91761

Excellent Manufacturing / Warehouse / Woodworking Building / Fire Sprinklers / 1,200 amps 277/480v power / Building also features apx. 3,500 of mezzanie storage space not included in total building square footage. Fenced in yard area / Dock high and ground level loading. M3 Industrial zoning. Excellent West Ontario Location. Easy acess to both the 10 and 60 frwys via Euclid Avenue. Located just blocks from Down Town Ontaio's City Hall, Public Library & Fire Department. Located near the Euclid Ave and Holt Blvd.

Punch-line : To Enlighten your night with Bear and light

Vision : Appearance of our product in each and every house

Mission : kaizen(continuous improvement)

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LITERATURE REVIEW

In consultation with the associate officer of Visual and Media Arts and Craft, several sources were identified for the initial phase of the Literature Review. In reviewing these sources and speaking with Thought Leaders who brought new themes to light, further pertinent materials were consulted. Unfortunately materials in some areas of interest were not readily available: new generation artist issues and critical literature on Ontario-based practice. Ultimately, a diverse array of sources was consulted, including essays in journals and books, magazine articles, blog posts and discussions in comment sections, exhibition catalogues, conference proceedings and podcasts of panel discussions. The following is a synthesis of emerging themes, trends and practices in crafts as described in the collected literature.

DESIGN & TECHNOLOGY

 Craft, design and ―the hand‖

The importance of the hand emerges as a contentious issue in discussions about the intersection of craft and design, particularly where production is assisted by digital technology. Some traditionalists do not believe production aided by digital technology qualifies as craft practice because the ―making process‖ is mediated by technology. Contemporary theorist Rafael Cordoso questions this view by pointing out that many traditional crafts do not require the maker to handle his or her materials directly. He points to glass blowing as an example. Glenn Adamson offers a definition of craft that describes technology as just another tool in the maker‘s box: ―Craft is almost always a matter of triangulation between maker, tool and material (after all, the naked hand might be considered a tool), and there is no obvious reason why any particular type of tool should be considered ineligible for this relation.‖

 Craft‘s impact on design

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While design-oriented processes may be supplementing some elements of traditional handwork in craft production, designers are emulating craft attributes such as uniqueness to endear wares to customers. Many contemporary designers employ texture, demonstrate evidence of process and make reference to domestic crafts in their designs, often using materials produced or enhanced by skilled workers (Cochrane, Victoria). In experimental factory production, designers are exploring ways to make pieces unique in serial runs, for example using computer algorithms to generate varying surface geometries. The Autonomatic Group at Falmouth University uses the technologies of mass manufacture to mimic handwork in the craftsperson‘s studio as part of a broad shift away from craftsperson ship for its own sake. Tavs Jorgenson, a member of the Autonomatic Group, uses an animator‘s motion-capture glove to translate physical movements into three-dimensional modeling data. His pieces are output through industrial processes such as digital printing and computer-numerical control (CNC) milled wood (Parsons).

 The new craft skills

In the OCAD panel on craft and design, Lily Yung argued that one technique or tool—for example, embroidery versus computer-aided design (CAD)—does not hold more value than another (―Craft: Shifting Directions‖). Approaches to practice should be determined on the basis of which practices are most appropriate for a particular piece or project. In the same discussion, Eric Nay, associate dean of the Faculty of Liberal Studies, OCAD, says disciplinary definitions are ―our worst enemy.‖ If specialized expertise in a particular craft medium is no longer essential for the contemporary maker, what skill sets are required?

 Technological innovations and applications

Developments in digital technology have opened up many doors for craft practitioners in ways that frequently intersect with design practice. Textiles is one area that has embraced digital techniques and tools, with digital printing

51 | P a g e facilitating greater freedom for experimentation as designers are freed from concerns about repeat patterns and colour separation (Bowles and Isaac). Digital printing allows for one-off production, smaller print runs and prints engineered fitting the form of the garment. Advantages afforded by this technology include: the speed of translation from design to fabric, greater levels of detail and increased number of colour possibilities, the ability to produce very large-scale images, and reduced effect on environment.

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OVERVIEW OF CNADIAN HANDICRAFT INDUSTRY

 Canada is the second largest country in the world and it‘s having two official languages in English and French. Canada‘s culture heritage is a mosaic a society originally influences by the people.  Canadian handicraft industry also having a diversify culture as India. Canada has one of the highest levels of economic freedom in the world and it closely resembles the U.S. in its market-oriented economic system, and pattern of production.  The handicraft emphasis a wide range of artifacts. The informal sector, which includes handicraft, has been described by the International Labour Organization (ILO).  The handicraft industry as certain features like ease of resources and skill, small scale operation, labour intensity, traditional technology.  The sector yields a number of economic, social and cultural benefits such as :-  High output to investment ratio.  High employment potential in relation to capital employed.  Highly labour intensive, especially helping weaker sections of society.  Generation of foreign exchange from exports.  High ratio of value addition.  Large-scale involvement of women, weaker section of minorities.  To develop and spread all over the country in rural and urban areas

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Handicraft processing sector overview in Canada

The Crafting market of America is one of the most important and largest markets for craft in the world. The craft industry of America is very large as compared to the domestic market of Canada. The art & craft industry in United States accounts for about US$13.8 billion. More than 127000 people are currently employed in the American art and craft sector.

The craft industry of Canada is highly diversified sector, comprising of individual craft persons, studios, enterprises, media guilds, public and private galleries, retail and wholesale shows, and industrial organizations. It accounts for over $100 million exports and employs about 22,597 persons in the various establishments.

 Ceramics: It is prepared with the help of clay bodies and then fired into the hardened ceramic form. America produces brick, sewer pipe, roofing tile, clay floor and walls tiles, flue linings, dinnerware, sanitary ware, electrical porcelain, decorative ceramics, Flat glass, glass fibers etc, the market of the same product is lower than the other countries  Glasswork: It involves wide range of activities such as glass bead making, glass blowing, glass fusing etc. Canada is well known for manufacturing strong glass paperweights. The hardly used product with a good production and selling has a scope in American market.  Jewelry: Native American silver jewelry occupies a dominant position in the American craft industry. The principal silver jewelry manufacturing countries are Arizona, New Mexico, Utah and Colorado.  Beadwork: The contemporary American beadwork can usually be visible on handbags, pouches, clothing, moccasins, etc. Arizona, Montana and Dakotas are all famous for producing bead-based objects.

In that case to expand the handicraft business in Canada, The handicraft industry is showing signs of growth due to increases in:

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 The number of people who want to personalize their surroundings with original handmade items which are often functional as well as eye-catching and more affordable than other types of artwork such as paintings.

 The number and variety of handicraft courses which grant an appreciation for the skill, time and money needed to produce high quality craftwork.

 Tourists who are now purchasing unique cultural items for their own personal use, rather than small souvenirs for family and friends.

The aim of preparing the new product and get them enter into the market we wish to produce two new products.

1) Night-lamp (Standing/hanging) 2) Bear Stand

SERVICE SECTOR IN CANADA

 The service sector in Canada is vast and developing. It employing about three quarters of Canadians and accounting for 78% of GDP. The largest employer is the retail sector, employing almost 12% of Canadians.  The retail industry is mainly concentrated in a small number of chain stores together in shopping malls.  The second largest portion of the service sector is the business services, employing only a smaller percentage of the population. It includes the financial services, real estate, and communications industries.  This portion of the economy has been rapidly growing in recent years. It is largely concentrated in the major urban centers; especially Toronto, Montreal and Vancouver.  The education and health sectors are two of Canada's largest, but both are largely under the control of the government. The health care industry has been quickly growing, and is the third largest in Canada.

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IMPORT –EXPORT OF CANADA IN YEAR 2011-2012

Crafts Imports(cr.) Exports(cr.)

Wood manful. 391 1633.1

Works of art 0 117.3

Toys 2118.5 0

Floor covering 501 0

2500 2118.5

2000

1500 import

1000 export 501 391 500 0 0 wood mafu. woks of art toys floor covering

 Now a day‘s Canada is more focusing on handicraft sector and Waterhouse for Human Resources Development Canada (HRDC) and the Cultural Human Resources Council (CHRC), also study about the development of crafts in Canada before few years.  Quebec is the crafts sector as an important part of the heritage, culture, and economy who provide significant resources and development for the sector.

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DISTRIBUTION OF ARTISANS AND CRAFTSPERSONS

craftpersons distribution 35% 35% 30% 25% 20% 20% 14% 15% 10% 10% 5% 4% 4% 2% 2% 4% 5% % 0%

The above data shows that the distribution of artisans and craft persons for Canada country from overall handicraft production area is around 4%, where if we go for the division of various places the higher rank is Ontario with 35%, while newfondland and territiries is lowest with 2% each. After Ontario the craft people‘s distribution shows the wealthy and healthy environment in British Columbia with 20% and Alberta with 10%.

In short, here the place where we get skilled labour and industrial space more at Ontario, we would like to establish our business over there with the available resources. In that case we will go for identifying the various aspects of our production and identifying the feasibility for various activity like,

 Production plan  Marketing plan  Human Resource plan  Operational plan  Financial plan & Finally supply chain management

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BEFORE STARTING

After analyzing the Handicraft sector in Canada, we reach to the conclusion that the possibility and advantage of establishing handicraft business is somewhat higher than the others. Here, whether part-time or full-time, starting a craft business offers two possibilities:

1) The production of handicrafts, 2) The selling of handicrafts.

This factsheet focuses on producing handicrafts. However, before starting either type of operation:

 Know with some certainty that people will want and will buy your handicrafts.

 Understand all the requirements and have reserve capital to meet expenses before you are able to produce sales and earn a profit.

 Understand the basics of managing, bookkeeping, purchasing and advertising.

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PRODUCT PLAN

Raw Material for manufacturing process:

There are three very common terms that linked to each other in production department. They describe particular stages in information handling input, process and output.

Input Process Output

Use tools Storage

Dispatch

To expand the handicraft business and show the product into the global market, here we launching two product in the market of Canada

1).Night Lamp

2) Beer Stand

Useful raw material

 Common tools for process Product A Product B used Wood Wood  Hammer & Gum Wooden polish Wooden polish  Chisel  Round carving Bulb Iron Rings  Tracer or line Copper Wires Colour  Pitcher or handset Colour

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For preparing any product there is a need of some basic raw material, labours and equipment. With the expert hands and their skills, as well as without using the technology, here we will introduce this two products under the business category of handicraft industry .

Manufacturing process of night lamp (Product A):

1. Wood: here we purchase furnished wood for making the night lamp which used as stand for designing purpose it shapes the design which make our product strong and attractive. 2. Carving: carving take place because to gives the shapes actually carving is a form of working wood by means cutting tool is one hand or chisel and one hand mallet, resulting in a wooden figure. Tools like……….

 Hammer  Chisel  Round carving  Tracer or line  Pitcher or handset

3. Polishing: polishing on wood which shaped by carving tools with colors and make brighter and attractive by the polishing the wood which designed by the carving tools. 4. Bulb fitter: we just fit the bulb in the night lamp after polishing and carving on it. It may be LED light or can have CFL light. it is depends on the consumer willing. 5. Finishing: it is the final stage finishing the product overall manufacturing process is complete here with help of various tools and labor which work under the supervisor.

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Manufacturing process of beer stand (Product B):

1. Wood: we purchased furnished wood from wholesaler of the wood in the Canada especially Ontario where the wood is easily available, because of forest area near by the place. In bulk we purchase wood to make a beer stand the majorly beer stand of wood. Which will be useful in the operation 2. Carving: shaping the wood and design the wood with the help of carving tools like chisel hammers and labors here wood shape gives of elephant its having 7 trunk under the trunk we make a space to put ice-cubes and beer bottle.

Our design of beer bottle is very unique its work two things look antics as well as beer stand also. This is like one product with two benefits. 3. Polishing: polishing with colors and polish material used to make more beautiful our product which looks more attractive and unique. 4. Finishing: same way finishing the product overall which was used in night lamp with the help of labor we make our product in finished form to send in the market.

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Quality Control (Product A): before sending finished good again we check the product it is properly shaped or not .after checking the quality if any default again we re-shaping the product and send in the market for sale.

Quality Control (Product B): rechecking the product before sending for selling if any default we put aside the product for repairmen after checking the quality and overall shape of the product then send to the market.

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MARKET PLAN

OVERVIEW OF CANADIAN CONSUMER

Unique characteristics of Canadian people strongly influence their buying attitude, preferences, taste and design, response to marketing promotion etc. summarizing the characteristics of Canadian people, it is able to be divided it into some categories

1) They tend to agree with the opinion of other person, rather than to insist their own. Therefore, they tend to be affected by the reputation among their colleagues, friends, neighbors and the recommendation by a salesman as well. 2) Their charectristics to be modest not appealing themselves affects the merchandises they prefer. They prefer humble design not gaudy and too much appealing.

Prevailing consumer life-styles and the resultant actions in a country indicate how consumers live, think, behave, and act. This, in most cases, is determined by consumers‘ demographic background, experiences, socio-economic characteristics, behavioral tendencies, and current situation or action. This proto-typing attempt to paint a more realistic multi-dimensional portrait of a consumer that represents a sub-segment for a particular product/brand. It suggests answers to the deeper motivations and aspirations behind the purchase and consumption of a product and service

 Canada is one of the world‘s most developed countries, a political and economic power with one of the highest standards of living of any nation.  Steady economic growth, a stable political atmosphere and well-educated and skilled labour force contribute to a positive business and trade environment for both small and large companies in many sectors.  It is the second largest country in the world, covering nearly 10 million square kilometers, but with approximately 33.9 million people, (statistics

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Canada, 2009) it ranks only 36th in terms of population (Central Intelligence Agency, 2009).  The resulting lower population density has created strong regional variations in most socio-economic, health, cultural, and customer preference patterns. Nations, based on a more urbanized citizenry that is older and more affluent than previous generations.  While Canada is a significant player in international trade, the market within the country itself is extremely diverse and brings opportunity. Immigrants from all around the world are building a multicultural population.  This portion provides information on Canadian consumers, highlighting the demographics, behaviours attitudes that influence their demand for products. A comprehensive understanding of customers can improve the odds of successfully introducing a new product to the market. In addition to recognizing new opportunities, businesses that monitor trends over time can better respond to potential shifts in the demand for their current products.  An companies as they market their products domestically and from competitive advantage strategies. The country is following similar to many industrialized.

DEMOGRAPHICS:-

 Data related to the size and geographic distribution of the population, as well as gender, age, income, education and ethnicity, provided an overall picture of market potential and, perhaps more importantly, the ability to identify the groups that are most receptive to different types of products.  In Canada, an affluent and aging population, increased immigration from Asia, the Middle East and Africa, and a population that is generally settled in the southern regions of the country, are significant demographic characteristics affecting product.

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MARKETING STRTEGY OF CANADA

In Canada, There is Different Buying patterns, so we have to launch strategy for emerging technology companies looking to open a market in Canada.

We use different marketing strategy named go-to-market.

 Start with retail  Expand to small regional retail  Finally, move on to the larger retailers and store chains.

―stay away‖, we warn, ―from the huge retail chains with hundreds of stors in the beginning before you have build up demand‖ because of the associated expense and risk.

If you are launching a product in Canada however, forget all that. Canadians are still a few years away from widely embracing ecommerce in substantial numbers. A larger percentage of the population prefers to shop in physical stores.

ENTRY STRATEGY

EXPANSION:

 Manufacturers have options as long as to expand business within the Canadian borders. Entering markets can be make-it-or-break-it situation; a key to avoid the latter comes down to choosing the right entry strategy. Direct versus indirect export, entering a joint venture compared to working with a distributors, or simple investing in the market by establishing a location.

 Manufactures need to consider local laws and regulations in the new market that may pose problems, such as local center rules. If the obstacles are minimal-or not-existent the next step is to determine how best to get into the market.

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DIRECT EXPORT:

 Likely the first through to cross most manufacturers‘ minds, direct export has a lot to offer financially—as long as it‘s a vibal option.

 If you go direct and you‘re in a market that allows you to go direct export there‘s a cost-saving potentially. In the manufacturing business, the day decide going to export as a first might be the best thing to do.

INDIRECT EXPORT:

 Indirect export—the option of working with local distributor or importer in the market targeting-offers eyes and ears on the ground in what may be unfamiliar territory.

 Accessing potential client bases much quicker than your own is beneficial, but the choice dose come with a warning: the selection of that distributor is obviously the critical part in that type or business arrangement.

JOINT VENTURE:

 Establishing a joint venture with business pro can work to your advantage, particularly in those markets with local content or assembly requirements.When establishing a partnership in some of these markets a percentage has to be assembled in the market, option becomes very important in terms of your ability to remain competitive or simply access that market.

 Indirect export is important to choose the right partner who will represent you well in the market. Consider whether your partner is going to maintain the quality of the product, which as is often the case for manufacturers, is the brand. You want to ensure that the quality that comes out of that joint partnership in as good if not better than what you‘re able to produce on your own.

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MARKET INVESTMENT:

 Establishing oneself in a market by setting up operations is another option to explore, particularly if local content regulations get in your way. While it forces a larger up-front investment, the last number of years is acquisition opportunities that offer a foot in the door, so to speak, in untapped markets.

 There‘s a double advantage to that, people that already know the market place and you‘re bringing along a new element to the culture. Indeed, in the world of export market development, it‘s ultimately made, or break business.

Margin Requirements in Canada. Margin requirements can be higher in Canada. Prepare to offer the channel from 55% to 65% margin on your product. If you go to a retailer offering 25% to 35% margin, you‘ll have time getting placement.

Raise your MSRP for Canada.

You can change Canadian more for your product. They will absorb up to 10% or even $5 to $10 on lower price products. American like specials price offers, but Canadians are less likely to shop around for lower prices thus, they can and often expect to absorb a slightly higher retail price. That may be because they are not yet fully embracing retail which drives prices down and many areas of Canada have few retail outlets competing so they expect relatively low price disparities between resellers.

Adjust For Sell-In Time Tables.

Canadian retailers can make product selection several months out, Because of the business, plan-o-grams, open-to-buys, etc.,. The sell-in lead time may be much longer than you expect and you may find yourself missing entire seasons and more if you are late.

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OTHER STRATEGIES IN CANADA

PRICING STRATEGY:  The pricing strategy portion of the marketing plan involves determining how you will price your product or service; the price you will charge has to be competitive but still allow you to market a reasonable profit.  Every product there‘s a limit to how much the consumer is willing to pay. Pricing strategy needs to take this consumer threshold into account. Small business people have about the pricing strategy section of the marketing plan is, ―how do you know price to change?‖  Set price through a process of calculating your costs, estimating and benefits to consumers, and comparing products, services, and prices to others that are similar.  Price examining by how much it cost to produce the product or service and adding a fair price for the benefits that the customer will enjoy. Examining what others are charging for similar products or services will guide when figuring out what a ―fair‖ price for such benefits would be.  The pricing strategy outline in marketing plan will answer the following questions:  What is the cost of product? Include all fixed and variable costs when calculating this; the cost of labour and materials are obvious, but also need to include freight costs, administrative costs, and/or selling costs.  Hoe dose the pricing of the product compare to the market price of similar product?  Explain how the pricing of your product is competitive. If the price plan o charge is lower, why are to do this? If it‘s higher, why would customer be willing to pay more? This is where the ―strategy‖ plan of the pricing strategy comes in to play; will business be more competitive if charge more, less, or the same as your competitors and why?  What kind of ROI are expecting with this pricing strategy, and within what time frame

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SALING STRATEGY:  What types of salespeople will be involved (commissioned salespeople, product demonstrators, telephone solicitors, etc.)?  Describe expectations of these salespeople and how sales effectiveness will be measured.  Will a sales training program be offered? If so, describe it in this section of the marketing plan.  Describe the incentives salespeople will be offered to encourage their achievements (such as getting new accounts, the most orders, etc.)  Lastly, when writing marketing plan, need to develop an Advertising and Promotion plan.  We also offered the consumers that they can made their night lamp on their own demand or the shape what they want. We provide such a variety to consumers that they can‘t refuse our products. They can told the shape of their choice and we provide them the lamp of their choice. Our designers are so skilled that they can prove you the best model of what you demand us for.

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Strategic marketing:

Strategic Marketing is a Canadian based sales and marketing agency which is specializing in developing consumer products and selling to home centers. Our own marketing strategy is based on one simple philosophy: That all business is about relationships. To our success and developing good relationships is crucial. Since our Incorporation in 1988 we have introduced 100‘s of new products to the Canadian Market.

RETAIL VISION: major customer and product line

We view the buyer‘s role as a landlord – his responsibility is to allocate to our factories product shelf space. Our role to maximize the business within that area. In businesses, We take care of all aspects of the business: competitive market research, retail pricing, product knowledge, training and, for many factories and packaging design. We do not feel our job is done until a customer takes our product off the shelf and puts it into their shopping cart. opportunities

The first quality player in a new market segment or category ends up being the market leader, is our belief. It is for this purpose that we have created a new division within the company. This division is devoted to finding new market opportunities and to work closely with our factories to develop them further.

Through these partnerships with factories, we are able to combine our resources and take advantage of quickly emerging markets

Export marketing strategy

Planning your marketing strategy will go a long way in helping you reach clients in international markets. Because of factors like cultural and language differences, you may need to make adjustments to your current marketing approach. Learn more about international marketing in the Step-by-Step Guide to Exporting.

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 Step-by-Step Guide to Exporting

Find out what you need to know about exporting, including international market research, export planning, marketing, finances, logistics and legal aspects.

 Marketing basics

Brush up on key marketing concepts, learn how to develop a marketing plan, and assess strategic marketing options for your company.

 Country Insights

Get cultural, demographic and political information on countries you would like to conduct business with.

 Trade shows and missions

Trade events can be a valuable way to market your business abroad.

 Canadian Trade Commissioner Service (TCS)

Get market and sector-specific information, access to Canadian trade commissioners‘ coordinates and list of events through the TCS website.

 BDC Consulting

Find out how BDC's customized consulting services can help your business at all stages of development.

 Canada Brand

If you produce, package or market Canadian agri-food, agriculture products, fish, or seafood, you can make your goods stand out by adopting this strategy.

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Advertising And Promotion Plan

Advertising – which media is most effective for acquiring your target market, and this is based on the budgeting of your marketing. You have to consider , What percentage of your annual advertising budget will you invest in each of the following:

 the Internet  television  radio  newspapers  magazines  telephone books/directories  billboards  bench/bus/subway ads  direct mail  cooperative advertising with wholesalers, retailers or other businesses?

Include not only the cost of the advertising but your projections about how much business the advertising will bring in.

Sales Promotion - If you may want to incorporate sales promotion activites into your advertising and promotion plan, such as:

 offering free samples

 coupons

 point of purchase displays  product demonstrations

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Marketing Materials – In promotional plan, Every business will include some of these. The most common marketing material is the business card, but brochures, pamphlets and service sheets are also common.

Publicity - every business should use. Describe how you plan to generate publicity,nue of promotion. it is the another av. While press releases spring to mind, that's only one way to get people spreading the word about your business.

Your Business' Web Site – If business has own Web site, describe how your Web site fits into your advertising and promotion plan.

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Places list for Advertising in Canada

1) Ontario

Population City Geographic area (2011)

Barrie Simcoe 136,063

Brant Brant 35,638

Brantford Brant 93,650

Cambridge Waterloo 126,748

Dryden Kenora 7,617

Elliot Lake Algoma 11,348

Guelph Wellington 121,688

Kenora Kenora 15,348

Kingston Frontenac 123,363

Markham York 301,709

Mississauga Peel 713,443

Niagara Falls Niagara 82,997

Norfolk County Norfolk 63,175

North Bay Nipissing 53,651

Orillia Simcoe 30,586

Oshawa Durham 149,607

Ottawa Ottawa 883,391

Owen Sound Grey 21,688

Pembroke Renfrew 14,360

Peterborough Peterborough 78,698

Quinte West Hastings 43,086

St. Catharines Niagara 131,400

St. Thomas Elgin 37,905

Thunder Bay Thunder Bay 108,359

Timmins Cochrane 43,165

Toronto Toronto 2,615,060

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2) Alberta  Airdrie  St. Alberta 3) British Colambia  Abbotsford  Burnaby  Duncan  Richmond  Prince George 4) Manitoba  Brandon  Steinbach  Winnipeg 5) New Bruswick  Moncton  Saintjohn

Average Costs of Advertising Newspaper : - $1500 per week for 3‖ x 3‖

Television : - $ 1, 30,000 for 19 to 30 second commercial (overall Canada)

Direct Mail : - As per the collection of database (Little cost)

Magazines : - $ 2500 to $ 6000 per month or per issue

(Depends on Ad size and Demographics)

. 24 images- in French language

. Canadian Business- in English Language

Online: -

$ 0.30 pay-per-click or $1300- $2000 a month for aggressive campaigns or $200 to $1200 per month per banner

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Media to be used

Television Network List

Television Type of Network Language Owned & Operated Network Station

CBC Commercial Network English 07

SRS Commercial Network French 13

CTV Commercial Network English 22

Global Commercial Network English 13

TVA Commercial Network French 06

APTN Commercial Network Multicultural 02

News Paper List

Alberta

. Calgary - Calgary Herald, Calgary Sun, Metro Calgary . Edmonton - Edmonton Journal, Edmonton Sun, Metro Edmonton . Lethbridge - Lethbridge Herald, Lethbridge Sun Times, Lethbridge Journal . Medicine Hat - Medicine Hat News . Red Deer - Red Deer Advocate

British Columbia

. Kamloops — Kamloops Daily News . Kelowna — The Daily Courier . Penticton — Penticton Herald . Prince George — Prince George Citizen

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. Prince Rupert — The Daily News . Trail — Trail Daily Times . Vancouver — The Province, Metro Vancouver, The Vancouver Sun, 24 Hours . Victoria — Times Colonist

Manitoba . Beausejour - Beausejour Review . Brandon - Brandon Sun . Flin Flon - The Reminder . Portage la Prairie - Daily Graphic . Winnipeg - Winnipeg Free Press, Winnipeg Sun, Metro Winnipeg

New Brunswick . Caraquet - L'Acadie Nouvelle . Fredericton - The Daily Gleaner . Moncton - Times & Transcript . Saint John - Telegraph-Journal

Ontario . Barrie - Barrie Examiner . Belleville - Belleville Intelligencer . Brampton - Brampton Guardian . Brantford - Brantford Expositor . Brockville - The Recorder and Times . Chatham–Kent - Chatham Sun, Chatham Daily News . Cobourg - Cobourg Daily Star . Cornwall - Cornwall Standard Freeholder . Guelph - Guelph Mercury . Hamilton - The Hamilton Spectator . Kawartha Lakes - Lindsay Daily Post . Kenora - Kenora Daily Miner . Kingston - Kingston Whig-Standard

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. Kitchener - Waterloo Region Record . London - London Free Press, Metro London . Niagara Falls - Niagara Falls Review . North Bay - North Bay Nugget . Orillia - Orillia Packet and Times . Ottawa - Ottawa Citizen, Ottawa Sun, Le Droit, 24 Hours, Metro Ottawa . Owen Sound - Owen Sound Sun Times . Pembroke - Pembroke Daily Observer . Peterborough - Peterborough Examiner . Sarnia - Sarnia Sun, Sarnia Observer . Sault Ste. Marie - Sault Star . Stratford - Stratford Beacon-Herald . Sudbury - Sudbury Star . Thunder Bay - The Chronicle-Journal . Timmins - Timmins Daily Press . Toronto - Toronto Star, Toronto Sun, Metro Toronto, 24 Hours

List of Advertising Agencies

AdHack AGENCY59 Bleublancrouge Clicksor Cossette, Inc. Due North Communications

Fuel Industries Groupaction Idea Rebel

Kaboose Lifecapture Interactive Lowe Roche

McMillan (agency) Mindblossom Mindblossom Onestop Media Group Oxygen Design Agency Oxygen Design Agency

Due to different buying patterns of Canadians versus that of Americans, we recommend a dramatically different launch strategy for emerging technology companies looking to open a market in Canada. Direct marketing by yourself utilizing internet facilities and direct mail marketing etc.

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A. Online marketing

Though there are many media such as News paper, Magazines, Television, Radio, and many more, we recommend internet advertising as the most cost saving way in current advanced Canadian internet environment and can sell products at the same time. As it was found that there are more then 54% Canadian people use internet every day. Here the pop-up option in internet is the best media to be used.

B. Offline marketing

By the way of joining the retailer shopping mall of Canada in various areas, by identifying the various retailers from that place, as well as by the way of using another media tool like News paper, Magazines, Television, Radio, and many more, we will go further as a promotional activity

By adding more we will use all Integrated Marketing communication tools to introduce our product into the Canadian market.

1) Direct marketing 2) Indirect marketing 3) Personal selling 4) Advertising

You Need A Different Go-To-Market Strategy For Canada. . If you want to start to develop a market in Canada, we typically recommend the following go-to-market strategy:  Start with retail  Expand to small regional retail  Finally, move on to the larger retailers and store chains.  ―stay away‖, we warn, ―from the huge retail chains with hundreds of stors in the beginning before you have build up demand‖ because of the associated expense and risk.

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 If you are launching a product in Canada however, forget all that. Canadians are still a few years away from widely embracing ecommerce in substantial numbers. A larger percentage of the population prefers to shop in physical stores. Also consider than the market is just smaller- just over one tenth the size of the US market (34 million vs. 313 million) so in terms of hard numbers, you‘ll be reaching out to a smaller percentage of a much smaller overall number.

Margin Requirements in Canada.

Margin requirements can be higher in Canada. Prepare to offer the channel from 55% to 65% margin on your product. If you go to a retailer offering 25% to 35% margin, you‘ll have time getting placement.

Raise your MSRP for Canada.

You can change Canadian more for your product. They will absorb up to 10% or even $5 to $10 on lower price products. We have seen and also scientific studies (i.e. Lifestyle Orientation Of Canadian Consumer By Talha Harcar, Ph.D And Eradner Kaynak, Ph.D.;D.Se) have shown that Canadians are not as deal hungry as Americans. They like specials price offers, but Canadians are less likely to shop around for lower prices thus, they can and often expect to absorb a slightly higher retail price. That may be because they are not yet fully embracing retail which drives prices down and many areas of Canada have few retail outlets competing so they expect relatively low price disparities between resellers.

Adjust For Sell-In Time Tables.

Because of the business, plan-o-grams, open-to-buys, etc., Canadian retailers can make product selection several months out. The sell-in leadtime may be much longer than you expect and you may find yourself missing entire seasons and more if you are late.

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ADVERTISING

A reputation for fine work is the best form of advertising. When getting started however, consider these methods:

 Rent display space at a shopping mall for a weekend.

 Hold open houses which can also be helpful for developing mailing lists.

 Design business cards and pamphlets which describe and illustrate your work.

 Send press releases to the feature editors of newspapers and magazines.

 Build a portfolio of photographed pieces, which can be particularly effective when meeting with gallery owners, retailers, architects or interior designers.

 Enter competitions which offer exposure and often some compensation.

Copyright, Trademarks, Industrial Design and Safety Standards

Contact the Canada/Manitoba Business Service Centre for more detailed information. Copyright - If you produce an original craft piece, you must reproduce its design at least 50 times in order to register it under the Industrial Designs Act. If you produce an original artistic work, it is automatically protected under the Copyright Act for the life of the artist and 50 years after the artist's death. It is still recommended that you register for copyright in order to prove the work symbol and the owner's name and year of registration. Trademarks - A trademark is a word, mark, distinctive colouring or finishing method that distinctly identifies the origin or ownership of an item and is legally reserved for the exclusive use of the owner. Safety Standards - Safety standards apply to all products sold and made in Canada. Labelling - Federal and provincial laws apply to:

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Management team

Responsibilities:

The manager will be focus on daily operation of business including employee hiring and development to the employee as well as the salary structure of the company.

Compensation: (per hour rate)

 Salary to manager = 20$  Salary to the supervisor= 15$  Salary of Accountant/admin = 12$  Salary to sales man & driver = 10$  Wages of labours, worker and bottom level mgt.= 8$ - 10$  Salary to trainer(maximum 2 hour training per day) = 6$  Wages to the cleaner/sleeper = 4$

TIMING OF THE COMPANY- 10:00AM TO 6:00PM

BREAK TIME- 12:00 TO 1:00 HOUR

COPANY WORKS IN 1 SHIFT

On the training to the employee:-

We will provide on the job training to the labours ,once we will hiring theme then we will provided maximum 2 hours per day training to the employee for how to make the craft product , basic information of our product which give them idea about the product and other information about the organization.

Benefits of on the job training:-

 It‘s relatively inexpensive.  There is a no need of special requirement of trainee as well as expert.  We can reduce our total cost of training of the company.

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Proposed Employee Hiring:-

We plan to hire 45 employees.

Particular No of People Cost annually in $ Labour/worker :- Total-30 537600$\- Skilled-20 labours 20 Skilled-10$ 384000$ unSkilled-10 labours 10 Unskilled-8$ 153600$ Supervisor 2 57600$ Manager 1 38400$ Sleeper& cleaner 1 7680$ Accountant& admin staff 1 23040$ Salesman+ driver 8 153600$ Trainer 2 5760$ Total 45 823680$

If your handicraft business expands, you must be able to hire and keep excellent employees. Educate yourself in all areas of human resources -- how to recruit, interview, motivate, train and develop personnel policies (wages, benefits). Promote continuous training and upgrading through related courses and programs. Refer to the Human Resources factsheet for more information.

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Supply Chain

Indian handicraft Industry is a cottage based industry and provides employement to millions of artisans including both men and women. Besides high employementpotential,the handicraft sectors is also important economically because of factors like needing low capital.investment with high potential for exporting foreign exchange earnings.these factors have helped in helping india emerge as a leading suppliers of handicraft in global market.

Product standards:

Craftmen in india make use of different media to express creativity.these includes textiles,metals(previous & semi-precious),wood,ceramics,glass and others materials with Indian handicraft products finding a global market,the manufactures also need to comply with standarads like those of EU,CE- labelling, CE-MARK (mainly required for toys).Mainly these standarads need to be met by the manufacture because of the safety consideration involved.

Major crafts center:-

 The major craft centers in india are Moradabad known for brass work  Sahranpur known from wooden articles  Ferozabad known for glass work.  Rajasthan known for quilts,printed textile & wooden/iron furniture.  Gujarat known for embroid articles.

Opportunities:

The Indian market has seen rising demand for handicraft products for many developed countries like Canada,USA,Britain,Germany,France Italy………. Etc.Some of others factors behind this rise include fast developing fashion industry that uses handicraft products development of retail and real estate sector and development of e-commerce that has helped Indian handicraft industry to emerge as a preffered choice of global buyers.

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Some of the main-factors that makes indiafavourite destination for sourcing include presence of abundant and cheap labor,low capital investment, handicrafts products high aesthetic and functional qualities,exclusive handmade finish and exporters willing to handle small orders.the other reasons include large products variety that allows buyers to matchup with the products as a per their expectations.

Before conducting the work over the supplying goods or products identification of the market Prototype design and development/adaption and refinement . Segmenting the market and its scope ,upgrading equipping facilities,hiring and training for accomlping the target.

 Production quality control and packaging.  Costing budgeting quoting the prices  Physical distribution  Market development.

To supplying the goods as per the order , marketer or retailer is direct contact with the customer .retailer receive the order through the electronic media or e- mail placing information to dealer to wholeseller to manufacturer

Supply chain management of Indian handicraft supplying various product to Canada:

Information flow chain: Itsto way information chain of flow customer either direct contact to manufacturer or wholeseller

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Indian handicraft supply chain for supplying products to Canadian handicraft indusrty:

Customer order: customer may be end user or retailer, business buyer who demands the various products and place the order on that basis further process is start. Customer interlink with the activity like credit check, inventory, production scheduled.

Credit check: producer or manufacturer check credibility of the customer in the market and it is trustworthy to receive the order and to make business relation.

Inventory available: how much material or product available in stock on that basis production scheduled is decided.

Production schedule: scheduled regarding the production process of customer order and the activity like shift, labour to hire the work ,time management, what kind of production process to conduct depend upon the product nature. On the basis of the inventory availability ,credit check, production scheduled prepared inventory file which is record in the system.

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On the basis of inventory decides how much raw material has to purchase and check back the order.

Production: the actual production of the product according to the order and inventory availability information.

After completing the activity of the production process send to warehouse through the transportation , transportation scheduled decides on the basis of product nature and proximity. When fulfilling the order supplying the product to Canada either use shipping mode or airway and generally in the india truck, airway for non preservative items.

Shipping to final destination storage of the goods in the warehouse and withdrawal of the goods and through the transportation.

Customer order status: here under this category reaching the goods on the basis of customer order Again the Indian handicraft adopt various marketing activity for expanding its market through the promotion exhibition of the various products and activity of selling conducted.process is continuously flow.

After producing the product there is a need to put it into the market. If we gone through the Indian style of distribution than it include the aspects of zero level, one level, two level, three level and more. When we identify the location of Canada for our handicraft production unit, we collect the information about selling the craft. Here we will sell our crafts directly from your studio, or through:

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Manufacturing Consumer 0 Level

1 Level

Manufacturing Craft market Consumer

2 Level

Manufacturing Craft market Agent Consumer

3 Level

Manufacturing Craft Agent Distributors Consumer market

Retail stores

Specialty craft, gift, or department stores are the most popular ways of selling crafts, especially if you produce in limited quantities. Stores usually sell your work at double your price. Craft stores have traditionally sold mostly on consignment they pay you only after they sell your work, keeping 30-40%. This is changing though as artisans gain more business experience. Be careful with terms and conditions of consignment sales.

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Galleries

Choose respected, well-known galleries. Put all agreements in writing before delivering your work. Ask for an individual showing. These are usually done on a consignment basis, with the gallery keeping up to 50%. You may be asked to pay for invitations or refreshments.

Craft markets

Check with professional craft associations and the Manitoba Department of Culture, Heritage and Citizenship for information about craft shows and markets, such as the annual Manitoba Christmas Craft Show and the Old Market Place in Winnipeg.

Agents Agents are not commonly used for handicrafts but in certain cases, they can help to promote and expose your work. Commissions usually range between 20 and 50%.

The various Level of selling the product as per the supply chain analysis are as follows

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COSTSHEET

Particulars Night lamp $ Amt per year Bear stand $ per unit Amt per year per unit

Purchase of Raw 3.64 436800 13.69 1642800 materials

Direct Wages 2.912 349440 2.912 349440 (Labour)

Prime cost 7.07 848640 17.12 2054640

Add :- Factory Over Heads:

Factory Power 0.2 24000 0.2 24000

Repairs 0.723 87360 2.74 328560 maintanance work cost 7.27 872640 17.32 2078640

Add:- Adm. Over Heads:- office staff salary 0.52 62400 0.52 62400

General Charges 0.1 12000 0.1 12000

Stationary 0.05 5855 0.05 5855

Cost of Production 7.37 884640 17.42 2090640 (3)

Cost of Goods Sold

Add:- Selling and Distribution OH:-

Advertise 0.6 72000 0.6 72000

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Magazine 0.6 72000 0.6 72000

Total 9.543 1145855 21.56 2593055

25% PROFIT ON 2.387198 286463.8 5.402198 648263.8 COST

SALES PRICE 12 1432319 26 3241319

INITIAL INVESTMENT

INITIAL INVESTMENT AMOUNT

Land & Building 500000

Furniture 4000

Tools 4800

Total 508800

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WEBLIOGRAPHY

 http://canada.gc.ca/home.html  http://www.canadabusiness.ca/eng/page/2856/  http://1305932.r.msn.com/  www.craftclustersoindia.in  http://www.fairtradevancouver.ca/  http://www.biztradeshow.com/canada/  http://www.indiamart.com/

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CHAPTER 1:

INTRODUCTION OF COUNTRY & PESTAL ANALYSIS

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1.1 Country Introduction

In July 1, 1867, the British North America Act declared Canada a country. On 1867, Ontario, Quebec, New Brunswick and Nova Scotia formed a confederation. On July 1, 1867, the British North America Act declared Canada a country.

The capital of Canada is Ottawa. Canada the largest country in North America, second in the world overall (behind only Russia).Renowned worldwide for its vast, untouched landscape, it is unique blend of culture and multifaceted history.

1.2 Canadian textile industry

Canada is a major textile and clothing producer of the North America market, with its main strengths across a range of specialized product lines such as sports and active wear.

The textile and clothing industry in Canada also have been rank by Business Monitor International as the 8th biggest in the world in terms of textile and clothing manufacturing value add. The chart below shows the annual revenue of Canadian textile industry.

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As above the report shows BMI, the overall Canadian textile and clothing value added contracted by 6.7% in 2009 and by a further 1.5% in 2010, reflecting very difficult international economic conditions.

A reasonably strong recovery was expected setting in 2011, with growth of 5.4%. The industry‘s trade performance would also reflect the especially difficult international economic situation.

Combined textile and clothing exports will drop 20.1% this year to US$3.4 billion, with textile and clothing imports falling by 13.8% to US$11.5 billion. As a result, the textile and clothing deficit was marked US$8.1 billion in 2010. Following chart indicates the Canada‘s textile trade.

After two years of decrease, the Canada‘ textile and apparel industry is expected profit of $13 million on 2011. The volume of production is hope to increase in 2011, which will be a two year increases for the first time from the 2000.

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1.2 PESTEL Analysis

What it mean?

PESTEL analysis derives from the form of P-political, E-economical, S- social, T-technology, E-environment, L-legal or law that is the factor which indicate as PESTEL. Lets we discuss these factor how that related to Canada.

1.2.1 Politics

The Government

Canada is a democracy with a parliamentary Government.

There Government consists of three parts: Federal, Provincial and Municipal.

Major Parties in Canada

House of Conservative (165), new democratic(101), liberal(35), bloc commons Quebecois (4), Green (1), Independent (1) Senate Conservative (61), Liberal (41), Progressive conservative (1). Other parties Canadian action, Christian heritage, communist, first people, Libertarian, marijuana, pirate, progressive Canadian, united, western block. Notable historic Anti – confederate, bloc popular, labor. parties

Canada have a parliamentary system within the context of a constitutional monarchy, the monarchy of Canada being the foundation of the executive, legislative, and judicial branches. The sovereign is Queen Elizabeth II, whoare also serves as head of state of 15 other Commonwealth countries

R.H. PATEL INSTITUTE OF MANAGEMENT-GOBLAJ 4 | P a g e and each of Canada's ten provinces.Canada‘s Marginal Propensity to consume is 0.6, that means Canadian spend and save 40% of their total income.

[Parliament Hill in Canada's capital city, Ottawa]

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1.2.2 Economy Canada has tenth largest economy in the world.

1. Rank: 10th (Nominal)/14th (PPP) 2. Currency: Canadian Dollar 3. Fiscal Year: 1st April – 31st March 4.Trade Organizations: NAFTA, OECD, WTO & others STATISTICS 1. GDP: $1.758 trillion (2011) 2. GDP Growth: 2.4% (2011) 3.GDP Per Capita PPP: $51,147 (2011)

Inflation (CPI) 1.6% (2010)

Population below 10.8% (2006) Poverty Line

Labour Force 18.53 million (2010)

Labour Force by Agriculture 2%, Manufacturing 13%, Construction 6%, Services Occupation 76%, Others 3% (2007)

Unemployment 7.2% (July 2011)

Main Industries Transportation Equipment, Chemicals, Processed & Unprocessed Minerals, Food Products, Wood & Paper Products, Fish Product, Petroleum & Natural Gas

Ease of Doing 13th Business Rank

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Public Finances

Public debt $519.1 billion (2010)

Budget deficit $55.6 billion CAD (Federal, 2009-10) Revenues $218.6 billion CAD (Federal, 2009-10) Expenses $274.2 billion CAD (Federal, 2009-10)

GDP (2011) By Sectors

80 Services, 71.5 70 60 50 40 30 Industry, 26.3 20 10 Agricultur, 2.2 0 Agriculture Industry Services

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1.2.3 Demographics/Social factor In 2011, total population of 33,476,688, an increase of around 5.9%. The main drivers of population growth are immigration and, to a lesser extent, natural growth. About 4/5thof the population lives within 150 kilometres of the United States border. 80% of Canadians live in urban areas. In common with many other developed countries, Canada is experiencing a demographic shift towards an older population, with more retirees and fewer people of working age. The average age was 39.5 years, in 2006.By 2011; it had risen to approx. 39.9 years.

About 85% of Canadians reported their sense of belonging to Canada as being ‗very strong‘ or ‗somewhat strong‘. Overall, 53% of Canadians said that in general people can be trusted, whereas 43% said that one cannot be too careful in dealing with other people. Quebeckers were less inclined to trust people but more likely to express confidence in institutions.

A research on seniors, widowers is 70% more likely to die than men who are married or living with a partner. The protective effects of marriage for men—an indicator of social support and social integration—with respect to mortality has been widely observed.

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1.2.4 Technology  A new study says 80 per cent of Canadians aged 16 and older, or 21.7 million people, used the Internet for personal reasons last year.

 That's a big increase over 2007, when the figure was just 73 per cent.

 Canadian 15-year-old students use of information and communication technologies at home and at school.

 The agency says Internet use was highest at 85 per cent in both British Columbia and Alberta, followed by 81 per cent in Ontario.

 Calgary and Saskatoon were the most online-savvy cities, with web- usage rates at 89 per cent apiece.

 They were followed by Edmonton, Ottawa—Gatineau, Vancouver and Victoria, each at around 86 per cent. 2, 40, 37,372 are mobile phone users among the 3,42,38,035 people of Canada.

 2, 69, 60,000 are internet user, 79.2% of the population, as of march 2011.

Canada was a participant in the International Space Station (ISS), and is a pioneer in space robotics, having constructed the Canadair, Canadarm2 and Dexter robotic manipulators for the ISS and NASA's Space Shuttle. Since the 1960s, Canada's aerospace industry has designed and built numerous marquees of satellite, including Radarsat-1 and 2, ISIS and MOST. Canada has also produced a successful and widely used sounding rocket, the Black Brant; over 1,000 Black Brants has been launch since the rocket's introduction in 1961.

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1.2.5 Environment

 Canada is the world‘s second largest country after Russia by covering the northern two-fifths of Northern America. The capital of this country, which stretches 4.600 km from north to south and 5.380 km from east to west, is Ottawa. However, Canada is one of the most thinly populated countries. The highest mountain of Canada, Mount Logan is situated in the Canadian Cordillera.  Canada‘s rivers and lakes are sensations, Too.5 Rivers, the St. Lawrence River, the Mackenzie River, the Yukon, the Fraser and the Nelson river, are among the world‘s largest 40. Lake Superior, Lake Huron, both shared with the USA, the Great Bear and the Great Slave belong to the 11 biggest lakes in the world. Canada‘s climate is dominated by extreme long and cold winters. With the exception of the Pacific coast.  Just 8% of Canada‘s land area is farmland; more than 30% of Canada is forest. The forest between Newfoundland and the Yukon is one of the world‘s biggest. More northern areas are occupied by tundra and the arctic islands are covered by permanent ice cap

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1.2.6 Law

 Canada is a federal state with a parliamentary political system.Governmental structure is based on both the British North America Act of 1867 and unwritten customs. Britain´s influence ended with the Constitution Act of 1982

 Supreme political authority rests with Canada‘s bicameral Parliament, Which consists of a Senate and a House of Commons. The leader of the majority party becomes automatically the ‗Prime Minister‘.  Canada's constitution is its supreme law, and any law passed by any federal, provincial, or territorial government that is inconsistent with the constitution is invalid.

 Laws passed by the federal government are initially announced in the Canada Gazette, a regularly published newspaper for new statutes and regulations

 Only the Supreme Court of Canada has authority to bind all courts in the country With a single ruling.

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CHAPTER 2:

COMPETETIVE STUDY OF CANADA & INDIA

TEXTILE INDUSTRY

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2.1 Introduction

India‘s presence in the international market is significant in the areas of fabrics and yarn.

 India is the largest exporter of yarn in the international market and has a share of 25% in world cotton yarn exports  In textile fabric and yarn accounts for 12% of the world‘s production in India  In terms of spindle age, the Indian textile industry is ranked second, after China, and accounts for 23% of the world‘s spindle capacity  Around 6% of global rotor capacity is in India  The country has the highest loom capacity, including handlooms, with a share of 61% in world loom age.

2.2 Import Trends in Canada

The USA had the highest 31% share in leading supplier of textile and clothing to Canada its followed by china 21% and EU 8%.india was got fourth position and also fast of other exporters like Mexico, Bangladesh and turkey and it had market share of 5.2%.

Canada‘s US$4 billion total merchandise trade with India in 2008 appears modest, but Canada‘s trade in merchandise with India has been expanding rapidly over the past ten years. Canadian merchandise exports to India increased at an annual compound rate of 24% over this period, while imports from India grew by 13%. India was Canada‘s 16th merchandise trade partner.

Accounting for more than 70% of total Indian merchandise exports to Canada, in that textile sector of export in 2008 come down 46% to 24.9%.

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India's Exports in (US $ Billions) Year 2003-04

Countries/Region Export of Textiles Export of garments World 6.47 6.10 Quota Countries 2.86 4.19 EU 1.64 2.35 USA 1.12 1.60 Canada .098 .239

In that overall world India export textile 6.47. In that India export to Canada textile 0.098 and garment 0.239. In the year 2003-04 the share of textile and garment exports raised 20%, amounting to US $ 12.5 billion in India‘s total exports. Canada, USA, EU and the quota countries accounted for approximately 70% of India‘s garment exports and 44% of India‘s textile exports. In Indian textiles and garment UAE is the largest market among non - quota countries. Indian textiles and garments. In India‘s total textile exports, the portion of UAE accounted 7% and 10% of India‘s garments exports.

In exports Cotton yarns, fabric, made ups etc. made largest chunk with US$ 3.33 Billion or 26.5% in textiles category, and Ready Made garments (RMG)-cotton including accessories made largest chunk with 4.67 Billion US $ or 37.1 % of total exports. Whereas, manmade yarn and fabrics and RMG–Manmade fibers constituted second position in the two categories, respectively. Carpets and woolen garments are other items exported from India.

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2.3 India's Exports of Textile

0.098 Export of Textiles 2%

1.12 19% Quota Countries EU

2.86 USA 50% Canada 1.64 29%

India’s Export of garments

0.239 Export of garments 3%

1.6 19% Quota Countries EU USA 4.19 50% Canada 2.35 28%

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Between Canada and India, there remains much untapped potential in the relationship. In 2002, based on revised statistics Canada industry grouping, Canada‘s textile industry shipped $6.6 billion worth of fibers, yarn, fabrics and textile articles. In the Indian Economy, Indian textile industry is the one of the biggest industry. The portion of textile and garment industry accounted 14% of industrial output, 27% of export earning, 4% of GDP and 18% of industrial employment.

India has an impressive growth path with real gross domestic product increasing 8% around in 2003-08 as compare to Canada. In 1998 to 2008 the Canadian GDP increasing 2.6 is% it low as compare to India.

Percentage share of Canadian import market

2002, Others, 39.35

2002 2001 2002, China, 31.23 2000 2001, Others, 41.37

2001, China, 26.24 2002, US, 11.03

2002, Hongkong, 6.47 2001, US, 12.23 2000, Others, 39.92 2002, India, 6.84 2001, Hongkong, 8.72 2002, Mexico, 5.08 2000, China, 25.22 2001, India, 6.53 2001, Mexico, 4.912000, Hongkong, 9.65 2000, US, 14.44 2000, India, 6.88 2000, Mexico, 3.89

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In Canadian import market Mexico is the lowest importing textile country. In 2000 the portion of India exporting to Canada 6.88% it decrease 6.53% in 2001 and 2002 it again raised 6.84%. Highest portion of Canadian import market is to be China. In 2000 it has to be 25.22% which is raised 31.23% in 2002.

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CHAPTER 3:

PORTER’S FIVE FORCES OF CANADIAN TEXTILE INDUSTRY

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3.1 Introduction

If you decide to start a new business, you will need to spend some time developing your business idea. One of the greatest advantages of being an entrepreneur is being able to work on something that interests you and that you are passionate about. Unfortunately, passion does not always translate into profits.

The more information you can gather about the potential demand for your product or service, about your competitors, about the needs and wants of your prospective customers, the more successful you are likely to be.

Before starting a business, you need to evaluate your idea and determine what your chances are of making a profit from that idea. This document lists some things that you should consider and provides links to additional information to help you assess your idea

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3.2 Threat of new entrance

• The industry's drive to sustained international competitiveness depends on securing new export markets and shifting production increasingly to high value-added textiles.

• High-performance textiles opportunities are available in agro textiles, building textiles, geotextiles, home textiles, industrial textiles, medical textiles, transportation textiles, ecotextiles, packaging textiles, protection textiles and sports textiles.

• Despite indications that many of the economies throughout the world have experienced recent improvements, a lack of consumer confidence, persistent unemployment, and mixed economic forecasts will likely contribute to a subdued textiles market, particularly in the US, in the balance of 2009 and through 2010, thereby negatively impacting Canadian exports.

• The increase in the price of raw materials, coupled with a decline in the accessibility of raw materials in North America, is an ongoing issue for Canadian textile manufacturers.

Government subsidies and incentives

• In addition to labor rates, certain countries china provides export rebates to their manufacture based on items exported.

• According to the American textile manufacture institute management of china‘s rebate is currently set at 10%. The ATMI further states.

3.3 Bargaining power of buyer

• Customer is king of the market

• CTT Group has invited buyers and or large-scale local and international technological partners to meet with Quebec and Canadian manufacturers at EXPO HIGHTEX, the annual rendez-vous of Canadian textile industry experts, and ADVANCED WORKWEAR

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CANADA, the largest Canadian tradeshow in the protective clothing and advanced uniforms industries.

• BUYTEX has became known as a unique B2B trade networking activity across Canada, and overseas.

• Based on Canadian capacities and expectations, BUYTEX‘s organizing committee has been scoping out, identifying and courting international buyers. Thanks to EDC and DFAIT collaboration programs, qualified buyers receive a unique package:

• Reimbursement of 50% of their round-trip economy-class air fare.

• Complimentary lodging program

• VIP passes to BUYTEX‘s conferences and networking activities (cocktails, banquet and others)

• Possibility of industrial visits (on request)

• Onsite transportation

• Business meetings with targeted and qualified locals manufacturers and suppliers

3.4 Threat of substitute product

• Textile and clothing are two distinctive Canadian industries.

• The textile industry manufactures a wide variety of threads filaments and fabrica.

• It is also produces felts carpets, blankets, disapers hygiene products, fire hoses, ropes and parachutes.

• The clothing industry produces men‘s women‘s and children‘s wear as well as fares, foundationgarments, hosiery, gloves, sweaters and occupational clothing.

• Here also we can see that in Canadian country occupational clothing are more producing so it would also become substitute of product.

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• Canadian country also produces product through using new technology and innovation so that they would compete with other country.

3.5 Bargaining power of supplier

• This is how much pressure suppliers can place on a business. • Here are a few reasons that suppliers might have power: • There are very few suppliers of a particular product • There are no substitutes • Switching to another (competitive) product is very costly • The product is extremely important to buyers - can't do without it • The utilisation of scientific and technical resources; the implementation of dynamic research and development cooperation platform innovation; commercialisation; business networking.

• The aim of this initiative is to help the industry to compete in the international market place and develop a critical mass.

• Consequently, its image will improve in the eyes of the public, the business community and the financial community, and the industry will be taken more seriously when major public and private clients are structuring their projects.

• The Canadian apparel industry supplies a wide range of apparel to domestic consumers and, increasingly, to foreign markets.

• The industry includes companies that produce consumer, industrial and institutional clothing.

• They design, draft patterns and cut and sew fabrics, and knit yarns into garments and finish them for sale.

• The major subsectors include men's, women's and children's clothing, fashion goods, fur goods, occupational clothing, technical

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outerwear, survival wear, active wear, foundation garments, tourism- related goods, backpacking and camping products, gloves, hats and caps, hosiery and knitted goods.

• Volume production methods were developed in the US they were soon adopted in Canada, and local craftsmen became entrepreneurial employers.

3.6 Rivalry among the competitors

• The Canadian textile industry is internationally competitive with other developed countries in price, quality and product variety.

• The primary industry is as technologically efficient and productive as any in the world.

• Major technological advances have been introduced to accompany the shift from natural to synthetic fibres and blends, including the adoption of advanced spinning, weaving, knitting, nonwoven and finishing machinery, electronic and computerized control equipment and methods of reducing energy consumption.

• Canada was a pioneer in introducing a new open-end type of yarn spinning and is a leader in the use of shuttle less weaving machines.

• Canadian textile industry has lost much of its competitiveness since the global elimination of quotas at the end of 2004, particularly in mass markets.

• Between 2005 and 2009 total factory sales by textile mills and textile product mills fell by 44% while sales by the clothing manufacturing industry dropped by 50%.

• The textile industry has faced a number of challenges, including: competition from developing countries; offshore manufacturing by its

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traditional main customer, the clothing industry; availability, retention and training of the workforce; the strength of the Canadian dollar; trade regulation; capital availability; and access to specialised markets.

3.7 Industry growth

• Canada remains a relatively open market for textile and clothing imports from developed and developing nations.

• Canada's consumption of textiles and clothing by volume is about 2% of the world's total, and Canadian mills now supply less than 50% of this amount.

• The largest proportion of textile imports comes from developed countries (although in recent years this proportion has decreased somewhat as more come from developing countries)

• The largest proportion of clothing imports from developing countries.

• Despite substantial import-restraint legislation, Canada accepts 9 times more per capita in textiles from developed countries than the US and 3 times as much as the European Economic Community.

• Steps by the Canadian government, assuring the textile industry of the continuation of special protection measures, have created a fairly stable climate of confidence and have stimulated investment.

• However, it would favour free trade with the US if "the adjustment and transition conditions are adequate" to retain this level of confidence.

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Statistical Summary:

(Figure in millions of Canadian dollars)

Economic 2004 2005 2006 2007 2008 2008- CAAGR Indicators 2007 (%) Apparent 9,906.3 9,556.6 8,536.9 8,243.6 7,821.6 -5.1% -5.7 Domestic Market Shipments 7,129.3 6,647.2 5,585.9 5,236.8 4,621.6 - -10.3 11.7% Gross 2,731.2 2,463.8 2,156.1 2,064.2 1,814.2 - -9.7 Domestic 12.1% Product Manufacturing 38.3 37.1 38.6 39.4 39.3 -0.4% 0.6 Intensity Ratio Total Imports 5,731.6 5,633.3 5,367.5 5,192.8 4,999.0 -3.7% -3.4 Domestic 2,954.6 2,724.0 2,416.4 2,185.9 1,799.1 - -11.7 Exports 17.7% Trade Balance 2,777.0 2,909.4 2,951.1 3,006.9 3,199.9 6.4% 3.6

Import 57.9% 58.9% 62.9% 63.0% 63.9% 1.5% 2.5 Penetration Export 41.4% 41.0% 43.3% 41.7% 38.9% -6.7% -1.6 Orientation Domestic 42.1% 41.1% 37.1% 37.0% 36.1% -2.5% -3.8 Market Share Labour 61.1 65.6 67.2 63.2 74.7 18.2% 5.1 Productivity

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CHAPTER 4:

SUPPLAY CHAIN MANAGEMENT

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4.1 Introduction

Supply chain management is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, work- in- process inventory, and finished goods from point of origin to point of consumption.

Supply chain management as the ―design, planning, execution, control, and monitoring of supply chain activities with the objectives of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.‖

Supply chain management (SCM) are the coordinated set of techniques to plan and execute a steps in the global network used to acquire raw materials from vendors, transform them into finished goods, and deliver both goods and services to customers. It includes chain wide information sharing, planning, resource synchronization and global performance measurements.

The supply chain includes suppliers, distributors, retailers and customers. The customers are the main focus of the chain since the primary purpose of the existence of any supply chain is to satisfy customer needs. Supply chain management was initially related to the inventory management within supply chain. In the course of time, the most considerable benefits to industry with advance supply chain management capabilities will be radically improved customer responsiveness, developed customer service and satisfaction, increased flexibility for changing market condition, improved customer retention and more effective marketing. A supply chain is the chain of the process which is included their facilities, functions and activities that are involved in producing and delivering a product from supplier(s) to customer(s).

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Supply chain management concept is made possible as a conventional management tool for all manufactures are to strive improve their product quality, to reduce their product and service cost and to shorten their product delivery and response time in a highly competitive market.

Textile industry is a long chain including raw materials production, complement production, clothing production and so on. So it really makes sense to apply supply chain management to textile industry. Supply chain management in textile industry is not only a new concept, but also the weakness. However, it is the edge tool for textile industry to enhance its competence. What‘s more , it is the important stage for textile industry to advance and upgrade its position in global industry chain.Outsourcing is one the major trends in industry for reducing cost and allows industry to concentrate on the core industry. Organizations outsource when they decide to buy the product they had been making in house.

A supply chain are system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform raw material and components into a finished product that is delivered to the end customer.

A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. Within each organization, such as manufacturer, the supply chain includes all function involved in receiving and filling a customer request. These functions include, but are not limited to, new product development, marketing, operations, distribution, finance, and customer service.

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A typical supply chain may involve a variety of stages .these supply chain stages include: • Customers • Retailers • Wholesalers/distributors • Manufacturers • Component/raw material suppliers

The overall concept of supply chain is useful for the product needs and its distinctive features ro reach towards the final users. Here, the concepts of Supply Chain Management include the combination of overall blueprint of the starting to end aspects. There are some points, which are needed to addressing Lifestyle product needs. Which include,

• Identification of market opportunities

• Prototype design and development / adaption and refinement

• Test marketing

• Upgrading equipping facilities

• Securing inputs

• Entrepreneurial hiring, training, managing

• Costing and pricing

• Physical distribution

• Market development

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4.2.1 Chemical work

Step: - 1

The businesses involved in the textile and clothing supply chain starts with the identification of chemical industry and ends with the logistic to the waste. The sub material which includes before the production and operation management activity includes, the fiber, chemical, yarn formation, after the suitable working activities, with the combination of Chemical, Manmade fiber, Natural gas, Farmers and growers, fertilizers and seeds together enters with the farm formation including fiber preparation, texturising, spinning the goes to the Fabric Formation Department

Step: - 2

The fabric formation includes the activities like warping, weaving, knitting (made for the textile products manufacturing., then it goes to the various stages through the various intermediaries like treaders, merchants & agents involved at various stages, and it will continuos to the second last stage of the whole process.

Step: - 3

After fabric formation process, and to make the textile products it will goes to the wet processing for Preparation, Dyeing, Finishing, Printing activities, which may include multinational chemical industry and/or local suppliers provide day-stuff and chemical inputs, after completion of the wet processing will then goes towards the fabrication process

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4.2.2 Clothing work

Step: - 1

The actual fabrication process for the fabric manufacturing activity starts after all chemical inputs, here the fabrication for the clothing activity include the cutting and sewing aspect, then it goes towards the storage and distribution activity.

Step: - 2

After the process of fabrication, there is a need to analyze the proper and actual management activity, for that the sub points like location analyses, inventory, management, warehousing, transportation and packaging will analyze. The needs of all these activities are for the storage and distribution forward, and afterwards the products work starts

4.2.3 Product work

Step: - 1

The product work starts from the distribution activity towards the use of the final users, after using it it may be reusable, remanufactuarable, disposal or towards the waste. The reverse logistics were work for the remanufacturing activity. If it will be ready for the further process, then it goes to the vendor, and the process starts once again. Here the products were gone for the clothing and retailing.

Step: - 2

The final step includes here the two entities whether for the Use or Disposal

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CHAPTER 5:

EXPORT

AND

IMPORT

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5.1 Canadian exporting rules and regulation.

The information of export goods from Canada is help to small and medium size business. The overview of exporting process is provides by the information and it is not replace existing rules, references and acts. Memoranda Series D1 to D22 in guideline is explained all rules, references, regulation and programs. Proof of export, Canadian ownership, and destruction of commercial goods are explained by memorandum D20-1-4.

Before Exporting

Following information keep in your mind if you want to export goods from Canada.

1. For an import and export you must obtain a number of businesses from Canada revenue agency.

2. We can export goods which are identified. Give accurate description of the goods for planning of export proceeding.Regulation related to the exportation of various commodities is applying by The Canada Border Services Agency assists other government departments and agencies (OGDs). The determination of export goods are controlled by the OGDs. And it also says about the permit and certificate if it is required.

3. Origin of goods is determining country wise. Permit requirement is affect by the nature and origin of the goods. Detail information of origin is described in memorandum series D11 of general tariff information.

As an example:

 General export permit is requiring if the value is more than 2000$.

 The good which is origin by United State is not required permit to export into United States.

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4. To make the goods can be exported. There is some prohibition for export.

As an example:

 The drugs act specially for controlling drugs and narcotics.

5. It should be determine that whether the goods are not restrictions or other requirement.

As an example:

 To Control exports:

Following are the information.

To visit a foreign affairs and international tread Canada export and import controls and export controls online.

 To permit the export:

The export and import act prepared for control and permit export.

 The area control list.

According to B of Memorandum D19-10-3 with the help of export and import permit act to list out the countries for administration.

6. The receiving country must permit exporting goods.

The product of the export country must be meet the requirement of the product of the import country.

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The Process for exporting:

7. It has three main objective of CBSA.

 Export statistics must collect the information in timely and accurate.

 To control the dangers goods as well as other control and regulated goods.  Also the Control the movement of in transit goods.

8. To verify that the good is not required to be reported on an export declaration.

According the act of parliament the export declaration says that the good is being exported to another country.

The following are the example of exempted goods as per the sec 6 and 7 of memorandum D20-1-0.

 The consumption of the goods is United States. Goods

 Good should be less than 2000$ CAN.  The goods should be diplomatic.

9. It should be noted that goods are not controlled regulated and prohibited by other government department.

It must be reported to the CBSA when;

 The commercial good should me more than 2000$ CAN.

 The destination of the goods is united states, U.S Virgin islands.

It should not required of declaration is you are exporting to United States.

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10. According the act of parliament all goods controlled or prohibited and also must be reported to CBSA regardless of their value.

The requirement of all permits licence or certificates as per the rules given by government department and agency.

11. Note: The electronic reporting system is started by CBSA and it would be effective on 1st April 2012.

12. The exporters have to submit their report to the export to the prior notice of the CBSA.

Least time for reporting;

 By plane- the goods should be weighed down minimum before two hour.

 Highway - earlier to export;

 sea - forty-eight hours previous to goods are weighed down;

 Rail - two hours previous to goods are weighed down.

13. It should be verify that the goods should be reported at it’s selected export office which is situated inland or at the boundary.

With the rules and regulations of export permit license and certificate should be presented to the site will be indicate on the allow.

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Before Importing

Goods are imported into Canada must be.

1. With the help of Canada revenue agency it should be find a business number for and import export account.

2. To recognize goods planning for importing. Previous to the procedure it must have sufficient explanation of goods which planning to import.

3. Find out import and export countries

4. To ensure that goods are not illegal from coming into Canada.

Following goods are illegal to bring in Canada.

 Material which is measured to be obscene, rebellious, disloyal, misinformation, or kid pornography;

 All kinds of used material.  Goods should be protected by copyright.

5. To give the explanation about the goods which may or may not be to import that is subject to control and other requisite.

For an example;

 To control imports

 The drugs is used for human

 Scarce natural world and plant life:. .

 Explosive:

 Firearm, arms, and strategy.

 dangerous goods:  Import license:

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6. Explanation of tariff classification number (10digit) compulsory for all items.

It can be explain by:

 To visiting CBSA office, and

 To requesting an advance ruling for tariff categorization from CBSA client services office.

7. It must tariff classification number.

Most Favoured Nation (MFN) Tariff

Under this MFN tariff goods are delivered all the countries except North Korea.

8. To give the explanation about the goods which are subject to services tax?

9. To give the explanation about the duty.

To make sure that vendor has to provide with a receipt and sales invoice and this include complete information about the goods are to be sealed price and rules and regulation of sales.

The duties basically the price which paid for the selling price transformed into Canadian funds.

10. To analyze duties and taxes:

To convert the Canadian dollar using the trade price from the date of direct consignment.

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11. To make sure that the good is reported.

Cargo control document and electronic data interchange system has to statement to the CBSA.

If the value of consignment is more than 1600$ CAN.

 When the goods arrived has to be notified.

 The information must be provided to the courier services about the arrival of consignment should be more Canadian dollar 1600$.

12. be sensitive that your shipment may be examine:

 Boundary services officers may assess your consignment to check compliance with CBSA necessities or other government department limitations. we are responsible for the limitations

13. The CBSA offers other service options to further the handing out and free of goods. Above of these processes involve electronic data interchange technology and has replace some paper free options.

14. They may be revenue unbiased or they also give refund it.

We are required to accurate the information inside 90 days later than we discover the mistake where the vary is returns or you owe us money. you must pay that amount and the valid interest.

15. It has to keep all the documents related of the importation following six year.

16. Adjustments by the CBSA:

If we regulate that accounting document, will be issue a Detailed Adjustment Statement (DAS) that outlines the amendment and you must pay taxes and duties within 30 days.

17. Dispute resolution process and right to appeal:

According to the importer it has to check and ask for the fair review of most decision that taken by the tariff classification.

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18. It has to decrease custom, duties on qualified goods. Duties relief program:

20. Remissions and impermanent importations.

In this rules specify that some good should be penetrate duty free in Canada.

21. Designated commercial offices provide 24 hour service 7 days a week for the coverage and clearing of viable goods.

22. To obtain CBSA publication refer to CBSA Forms and Publications. You may also order publications by visiting the Government of Canada Publications Web site.

23. The information regarding about the federal departments included in the commercial importing process.

24. For more information related to CBSA requirements, contact BIS or your regional CBSA Client Services Office.

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SUMMARY

CHAPTER 1: PESTEL analysis and introduction of country

PESTEL analysis derives from the form of P-political, E-economical, S-social, T- technology, E-environment, L-legal or law that is the factor which indicate as PESTEL. Queen Elizabeth II is the Head of State. The Governor General appoints the Prime Minister as well as the Ministry Just 8% of Canada‘s land area is farmland; more than 30% of Canada is forest. Lake Superior, Lake Huron, both shared with the USA, the Great Bear and the Great Slave belong to the 11 biggest lakes in the world

CHAPTER 2: Study of Canada and India Textile Industry

In the comparative environment study there is comparison of import export trade between Canada and India. The USA had the highest 31% share in leading supplier of textile and clothing to Canada it‘s followed by china 21% and EU 8%. India] was got fourth position. In the Indian Economy, Indian textile industry is the one of the biggest industry. The portion of textile and garment industry accounted 14% of industrial output, 27% of export earning, 4% of GDP and 18% of industrial employment.

CHAPTER 3: Porter’s five forces

Porter‘s five forces model refers to the macro environment as well as the micro environment in the Canadian country. This model helps to introduce new product in Canadian market and also helps to identify the customers and competitors. This model helps the firms to gain core competency and apply business model and to achieve a profit above the industry average.

CHAPTER 4: Supply chain

The supply chain management helps to identify the major building blocks, major functions and major decision about the networks in supply chain. It also describes the supply chain components.

CHAPTER 5: Export and Import

In Canadian country the rules regulation of the export and import very liberal to the country so we can easily import or export the goods and raw material one country to another country.

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PART 1.

FEASIBILTY STUDY ON WOOLEN JACKET

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1. Production department  Production department in textile industry

Our product is related with the woollen in that we would get wool for making the woollen jacket. we can also easily available wool from the Ludhiana from Punjab. And India is the 5th rank for producing the wool in the world. Ludhiana is producing 90%of wool. so we would get raw material from Ludhiana.

 Production department in Ludhiana

We have selected our production location in Ludhiana. because of some better opportunity we would get from Ludhiana. as per the below given:

 Easily labor available from Uttar Pradesh, Bihar, Orissa.  Transportation facility also easily avialavle because of national highway-9 is near to industrial area.  Water is also available from the Sutlej river 13 k.m from industrial area.  Ludhiana‘s population is 34,87,882.  As per the 1996 government policy of Ludhiana is liberal.

THE HISTORY OF WOOL

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History of woollen

Wool was probably the first animal fiber to be made into cloth. The art of spinning wool into yarn developed about 4000 B.C. and encouraged trade among the nations in the region of the Mediterranean Sea The first wool factory in England was established in 50 A.D. in Winchester by the Romans. In 1797, the British brought 13 Merino sheep to Australia and started the the country's Merino sheep industry.

There are 40 different breeds of sheep in the world producing a rough estimate of 200 types of wool with varying standards. The major wool producers in the world are Australia, Argentina, China and South Africa.

Indian tribes are famous yet today for their magnificent woollen rugs and colourful wall hangings. Although pelts may have been worn in Britain as early as the late Bronze Age England‘s ―empire of wool‖ peaked during the 1509-47 reign of King Henry VIII. He seized the flocks of the monasteries and redistributed them to court favourites. This caused unemployed shepherds to be sent to prison for non-payment of debts and was one of the unfair treatments which incited immigration to America.

Raw Materials

While most people picture only sheep when they think of wool, other animals also produce fine protein fiber. Various camels, goats, and rabbits produce hair that is also classified as wool.

Wool fiber is hydrophilic—it has a strong affinity for water—and therefore is easily dyed. While it is a good insulator, it scorches and discolours under high temperatures. Each fiber is elastic to an extent, allowing it to be

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Design

While some of the characteristics of wool can be altered through genetic engineering of sheep, most of the modifications of design are implemented during the manufacturing of the fabric. Wool can be blended with any number of natural or synthetic fibers, and various finishes and treatments can also be applied.

These wools and others can be used in the production of two categories of woollen fabrics: woollens and worsteds. Woollens are made up of short, curly fibers that tend to be uneven and weak. They are loosely woven in plain or indistinct patterns. Usually woollens have a low thread count and are not as durable as worsteds. They do, however, make soft, fuzzy, and thick fabrics that are generally warmer than their counterparts.

THE PRODUCTION PROCESS

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 Wool manufacture begins with shearing the sheep.  After grading and sorting, the fleece is scoured in a series of alkaline baths containing water, soap, and soda.  Next, the fleece is carded- passed through a series of metal teeth that straighten and blend the threads into silvers. 1. Shearing

While most sheep are still sheared by hand, new technologies have been developed that use computers and sensitive, robot-controlled arms to do the clipping

2. Grading and sorting

Grading is the breaking up of the fleece based on overall quality. In sorting, the wool is broken up into sections of different quality fibers, from different parts of the body.

3. Cleaning and scouring

Wool taken directly from the sheep is called "raw" or "grease wool." It contains sand, dirt, grease, and dried sweat the weight of contaminants accounts for about 30 to 70 percent.

4. Carding

Next, the fibers are passed through a series of metal teeth that straighten and blend them into slivers. Carding also removes residual dirt and other matter left in the fibers.

5. Spinning

Thread is formed by spinning the fibers together to form one strand of yarn; the strand is spun with two, three, or four other strands. Since the fibers

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6. Weaving

Next, the wool yarn is woven into fabric. Wool manufacturers use two basic weaves: the plain weave and the twill. Woollen yarns are made into fabric using a plain weave, which produces a fabric of a somewhat looser weave and a soft surface with little or no lustre. The napping often conceals flaws in construction.

7. Finishing

After weaving, both worsteds and woollens undergo a series of finishing procedures including: fulling, crabbing, decanting and, occasionally, dyeing.

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MANUFACTURING PROCESS OF JACKET FROM BY PRODUCT Washing

Dying & Printing

Bleaching

Design & Sketch

Cutting

Stitching

For sleeves For collar Middle part

Finished product

Button and stitching

Packing and labeling

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BY PRODUCTS

The use of waste is very important to the wool industry. Attention to this aspect of the business has a direct impact on profits. These wastes are grouped into four classed

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Machinery need for production:

Dyeing machine printing machine

Bleaching machine

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Stitching machine Labelling machine

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2. HR DEPARTMENT

The function of HR department in Textile Industry plays a vital role in maintaining the utilization of machinery and labour productivity. It has been noticed that in most of textile industry, the HR department is managed by graduates and post graduates without legal background.

HR department in to that working most of persons are lacking the legal knowledge in textile industry.

Responsibility:

Manager must some hoe use influence to encourage doing good work. If they are succeed manager must possess the ability to influence organization member.

Authority:

Authority is seen as the legitimate right of a person to exercise influence or the legitimate right to make decision to carry out actions and to direct others.

Like manager expect to have authority to assign work hire employees and supplies.

Supervisor has been an analysis all departments and gives instruction for the further work

Human resource shall maintain the organization structure of the project and should have assignment of each member in the organization structure. Organization structure shall be maintained for the entire officer cadre employee.

HR should maintain all the records of the personal which are currently at the assignment. Information shall be segregated in two categories.

1. Officers 2. Workmen

HR should be aware of the exact brief role of each officer in the department.

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NO. OF TOTAL PARTICULARS SALARY MANPOWER SALARY OWNER 1 ADMINISTRATIVE STAFFS 1. OFFICERS [A] Manager (Finance) 1 25000 25000 i) Accountant 1 15000 15000 ii) Clerk 1 9000 9000

[B] Manager (HR) 1 25000 25000 i) Receptionist 1 8000 8000 ii) Admin staff 2 8000*2 16000

[C]Manager(Marketing) 1 25000 25000 i) Export Officers 2 20000 x 2 40000 ii) CRM 6 15000 x 6 90000 iii) R & D 2 15000 x 2 30000 [D]Manager(Production) 1 25000 25000 i) Supervisors 5 14000 X 5 70000

2. WORKMEN ii) Operators (Production) TOTAL Operator + SALARY SALARY Helpers 5000 x 5=25000 a) Washing 5+5 45000 4000 x 5=20000 5000 x 2=10000 b) Dying & Printing 2+2 18000 4000 x 2=8000 5000 x 1=5000 c) Bleaching 1+1 9000 4000 x 1=4000 8000 x 1=8000 d) Design & Sketch 1+1 13000 5000 x 1=5000 iii) Operator (Stitching) a) Cutting Masters 8 10000 x 8 80000 b) Stitching (Sleeves, Collars, middle 120 8000 x 120 960000 part) c) Button Stitching 6 5000 x 6 30000 d) Production 5 4000 x 5 20000 dispatch labor iv) Cleaners 7 4500 x 7 31500 v) Sweepers 5 4500 x 5 22500 vi) Watchmen 2 4500 x 2 9000 vii) Peon 2 5000 x 2 10000

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3. Marketing department

 What is marketing?

―Marketing is defined as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging product and value with others‖

―Marketing is an organizational function and a set of process for creating, communicating and delivering value to customer and managing customer relationship in ways that benefits the organization and its stakeholders‖

STP Analysis  Market segmentation, target and positioning

Segmentation

The first step in the process of product promotion is Segmentation. The division of a broad market into small segments comprising of individuals who think on the same lines and show inclination towards similar products and brands is called Market Segmentation. Market Segmentation refers to the process of creation of small groups (segments) within a large market to bring together consumers who have similar requirements, needs and interests.

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Following are the ways to divide whole market in to small group of market.

Geographic segmentation

By the way of nation, region, state, cities.

Our product is woollen jacket and we take a divide the market according to cities we sell our product in to following Canadian cities those capture the 90 % of population of Canada.

Population Percent of Name (2011 national Census) population

Ontario 12,851,821 38.4%

Quebec 7,903,001 23.6%

British 4,400,057 13.1% Columbia

Alberta 3,645,257 10.9%

Manitoba 1,208,268 3.6%

1,033,381 3.1% Saskatchewan

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Target

After evaluating different segments, the company must decide which and how many segments it will target.

But we only segment the market according to the geographic way so in the geographic way following people is our target customer.

We divide our market according to the cities. But the question is that in the cities which type of the customer we will target for our product. Our product is woollen jacket and basically we manufacture this woolen jacket for the age of people who pass the 18 year.

And we make all size in the jacket like small, medium and large so no issue about the size of the people.

Positioning

Organization decides on its target market, it‘s hard to create an image of its product in the minds of the consumers. The marketers create a first impression of the product in the minds of consumers through positioning. Positioning helps organizations to create a perception of the products in the minds of target audience.

We are positioning our product in the mind of the consumer by the way of product quality and his price. We use here focus strategy means we focus on to things the price of the product and its quality

The price of our woollen jacket is very much less then from the other competitors because we are export the product and our total manufacturing expense are less as compare to the other competitors.

And the Ludhiana which was famous for the woolen we are use the Ludhiana woolen material so our quality defiantly very much better.

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Developing the Marketing mix

―The marketing mix is the set of controllable, tactical, marketing tools that the firm blends to produce the response it want in the target market‖.

The marketing mix consists of the variable, product, price,, place and promotion well know four ps of marketing.

Product

Stand for the goods and service offered by a company to target market, to satisfy needs and wants. In the product following things are included.

 Variety  Quality  Design  Features  Brand name  Packaging  Our product is woollen jacket they have all above the point.

Price

Refers to the money value that the consumers have to pay to buy the product or service.

Our product is the woolen jacket and its price not higher than the similar product available in Canada. But we compete in the market with price basis so our product price is lower as compare to other similar product available in the market.

We also give the following facility to the intermediary customer like wholesaler or retailer and they gave this facility to ultimate consumer.

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 Discount if they purchase in bulk.

 Stretches the payment period.  Also give the credit if they are loyal with us.

Place

Stand for physical distribution activities through which the product moves from factory to the customer. Channel of distribution, logistics, warehousing, transportation etc. come under the place variable.

We manufacture the product in the Ludhiana (Punjab) and sell out the Canada. For that we export the product in Canada. For that we use the road transport facility from Ludhiana to Mumbai. And then shipping the product in the boat to transfer the product in Canada.

The following are the procedures to export the final product in Canada.

Firstly we are dispatch all the goods in the truck form the go down for that we choose the (agarwal pakers and movers transportation company) which was shifted in Ludhiana nearby our industrial location.

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Name Area Address Phon no Agarwal Focal Opposite 09356006516 pakers and point sail, near movers sherpur, company focal point, ludhiana

Cost of transportation

Unit One Total Truck No of Charges Total charges dispatch unit weight capacity truck each weight needed truck 15000 2 kg 30000 7500 kg 4 40000 160000 kg

After the goods come arrive in the Mumbai we are directly ship all the goods in the port yard warehouse.

Here the most important thing is that how we shipping our good in the port but we resolve this by giving the contract to the ocean shipping company.

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Ocean shipping company is the most reliable & experienced business house providing complete logistics services with our wide range of domestic and worldwide network. Industries for their logistics requirements with innovative solutions. Our Offices strategically located to facilitate the easy movement. our worldwide partners associates are well established and reputed organizations and have the same philosophy of rendering you the unmatched services all times.

They do all the things for us which related with the transportation of the goods from Mumbai to Canada. For giving this service they charge money from us.

 Like following service

 Dispatch the goods in warehouse.

 Dispatch the goods in steamer or boat.

 Clear the all custom duty in India as well as Canada.

 Prepare the all document related with the transportation.  Mark or package our goods or product for save the damage.

For providing the above service they charge following.

We use the following container because their capacity are match with our goods capacity and our all goods dispatch in this one container

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Ocean shipping company charge money according to occupied space of the container here this container occupied space is 3072 feet (8*9.6*40=3072 feet) And they charge 45 Rs per feet so total expense of shipping is (3072*45) Rs 1, 38,240.

Then custom duty is about Rs 15000. And other expense and labors expense approx 25000.

After that goods came in to Canada the ocean company put all the goods in his warehouse near by the port and after that they dispatch all goods to in transportation vehicle of our customer which was leave in the Canada it means our intermediary customer.

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Following are the intermediary customer with the help of them we will reach our ultimate customer.

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Promotion

Refers to activities of personal selling, advertising, and communicating product benefits and attributes to target consumers to persuade them to purchase.

In Canada the following are the major media when we put our advertising

To aware the customer and make a long lasting relation with them to make a loyal customer.

We choose the social media for the advertising the product because Canada loves social media! From business to politics and healthcare, social media has been embraced with open arms by Canadians. When it comes to using social media for business gains, Canada leads the worldwide charts with nearly 90% Canadian businesses adopting social media tools.

Nearly 21 per cent public-sector executives and 14 per cent private-sector executives said that social media is their most important means of public engagement. Almost 90 per cent private-executives admit that their business uses social media in one some way or the other. However, nearly 50 per cent of all private and public organizations believe that they do not have the required resources to monitor social media.

It‘s unsurprising that Face book and Twitter are the most popular social media tools amongst Canadian businesses. For that we use the social media like face book and Twitter for promoting our products.

We also promote our product by the way of advertising and for that we contact the major advertising agency which was situated in the those cities which are the our target market

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Following the advertising agency which was prepare the advertising for our product. Push this advertising in the market by the way of the media and also done the R&D for us.

Name of Address City name advertising agency Zero gravity Inc 322 11 Ave Sw suite 201, Alberta Calgary, Canada Elevator strategy 1505 2nd Ave W Suite 300, Britis coimba advertising and design Inc. Vancouver, Canada Digital north 665 Superior Dr Unit B, Ontario media Inc. Waterloo, Canada

Enterprises 5035 Rue perras, Canada Quebec Ideales, Les

We also do the trade show and event of our company for promoting the product. For doing this things we earn the customer trust and they also believe in our product.

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Distribution channel:

(One Level)

Manufacturer:

Retailers:

Consumers:

Manufacturer:-

Manufacturer is the person who made the product. He is father of the product. His task is to produced the goods according to needs and wants of the consumers. Timely and accurately production is in the hand of manufacturer.

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Retailers:-

Thy are the mediators of end users and manufacturers of the product. They are the men who takes actively part in selling the goods. Retailers provides goods to the consumers at their favourable time and place.

Consumers:-

Consumer is the king of the market. market change when mood of consumers change. They are the end users of the product. Their needs and wants are depends on the production.

Marketing strategy:-

 Market penetration strategy  Market capture strategy  Low cost strategy  Advertisement strategy

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Supply chain management

It is already describe in above chapter.

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4. FINANCE DEPARTMENT

The major investment initially is the machinery purchasing, raw material other amenities development and fixed assets purchasing for units. the machinery cost around RS .22, 87,000.after we have utilized our capital for the purchasing like mini truck and shipping for transport the final goods to the customer.we need to use best quality of raw material for sustain in the market for long time. so we purchase our raw material from Ludhiana. The packaging material we use is best.

Financial arrangement

Sources of fund

For this project they are three source of fund which are following.

Investment:80,00,000

Own fund 1600000 Relatives 3600000

Bank loan 2800000 Bank of baroda

Financial projections

We assumed the the useful life of the production of machinery will be 5 years.here we can purchase the land and we assume that cost for the 10 years.

Financial statement analysis

Financial figure presented in our Performa statement are extremely preapared by monthly,yearly,and by various levels.

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Financial data

Start up cost

We have calculated the initial strart cost to be 80,00,000

Per Pair Cost: (15000 Pair)

Particulars WOOLEN PER JACKET UNIT

Purchase of Raw materials 15,00,000 100

Purchase Expenses 20000 1.33

Direct Wages (Labour) 95000 6.33

Prime cost (1) 16,15,000 107.66

Add :- Factory Over Heads:

Plan cost 20833 1.39

Factory Power 57083 3.805

Indirect Wages 85000 5.67

manager‘s salary 25000 1.67

worker‘ salary 1153000 76.87

Factory Insurance 150000 10

Chemical expenses 34375 2.29

Machinery cost 38117 2.54

Works cost Incurred 31,78,408 211.89

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Add:- Administration Over Heads:-

General Charges 24400 1.63

Audit Fees 5000 0.33

Bank Charges 345800 23.053

Salary 77000 5.13

Cost of Production (3) 3630608 242.04

Add:- Selling and Distribution OH:-

Manager‘s salary 191000 12.73

Traveling Expenses 414720 27.648

Advertisement expenses 36000 2.4

Promotion charges 55200 3.68

Delivery expenses 160000 10.67

Custom duty 15000 1.00

Loading charges 25000 1.67

Other expenses 14400 0.96

Total 4541928 302.79 profit 908386 60.56 selling price 5450314 363.35

If selling 100% Pair

Particular Amount Particular Amount

Purchase 1615000 Sale

Wholesaler7500@ 2458425

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327.79

Retailer 2533425

[email protected]

Gross profit 3376850

Total 4991850 Total 4991850

Expenses

Gross profit 3376850 administeration 106400

Selling and 911320 distribution expenses

H.R. cost 1626000

Bank charge 345800

Net profit 387330

Total 3376850 Total 3376850

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Budget of the invest through WACC

Budget Weight Interest rate WACC

Own fund 0.25 8.24 2.06

Relatives fund 0.30 5.00 1.50

Bank loan 0.45 12.35 5.56

TOTAL 9.12

Budget Weight Interest rate WACC

Own fund 0.20 8.24 1.648

Relatives fund 0.40 5.00 2

Bank loan 0.40 12.35 4.94

TOTAL 8.588

Budget Weight Interest rate WACC

Own fund 0.20 8.24 1.648

Relatives fund 0.45 5.00 2.25

Bank loan 0.35 12.35 4.32

TOTAL 8.2205

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PART 2.

FEASIBILTY STUDY ON Wooden carpet

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Feasibility Study in Textile Industry

Product name: woolen-textile carpet

Export : canada

Organization department:

Figure: organization chart

Head of organisation

Department controller

H.R. Marketing Production Department Finance & Department accounting Department

Supervisior Supervisior Supervisior Supervisior

Worker Worker Worker Worker Worker Worker

In this structure it include head of department such top-level management, director, president, CEO, CFO etc. it decide that product policy and market of product.

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In our report it include in small scale of industry so app. 2 or 3 member are in top-level management they define strategic decision.

Department controller

Department controller is person or place from where managing control should conduct. It means that function manager is representing their roll to department controller.

In our study we include different four type of department

A. Marketing Department

In this department promotional aspect of firm should be conducted in context of customer satisfaction and market code. Company enables to use different promotional tools at different area of segment.

In our study we use marketing manager as head of product promotion and he should be responsible for sales persons reporting and also for holding their work. We require only one probationary manager of region for our product wooden carpet.

B. Finance & accounting

Financial and accounting department recognize work of monetary term such loan, fundamental of accounting, cash-flow, balance-sheet, ROI, ratio, auditing, Govt. tax and income tax etc.

We prepared budgeted amount of statement that consist amount of product available into market that showing as under. We also look-out import and export policy of both country India as well as Canada for our product wooden carpet. For reporting of this department we used here one financial manager as our product.

C. Production Department

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This department consists with production of the product or brand. Product procedure start with raw-material and ends with finished goods. Such as raw material, man-power, money etc. convert into process and it will become as product, finished goods, brand and effort or performance.

In our product it defines main three stages that will helps complete of product. Here in this department staff required that one production manager and app. 3 or 4 man of operation and for processing.

Figure: production process

Input operation & Finished goods •Textile(Wool, Polyst process •Product er) •Wooden carpet •Bamboo •Cleaning •Deying

H.R. Department

In this department that acquiring employee as per product demand and supply. H.R. manager should responsible to hire standard employee and fire them when they not perform better than expected level of work.

Here we could use one H.R. manager and his under taken staff. Means that this department required total 3 or 4 person.

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(A) Production department

Production facilities

1. Location

Location is major concern for any infant firm that has to decide from where there firm can easily produce their product in minimum cost.

Here in our report we selected surat at India. because in this country raw- material availability make ease as well as transportation, labor, and machinery also easiest available.

2. Layout

Layout is factory area and its preferable measured area. That inducts land covered of firm and machinery structured into process of operation.

In project we studied for wooden carpet, for manufacturing of carpet machinery take ……..mt land and company‘s surrounding area in ….mt.

3. Capacity

Here capacity in the sense of firms production capability that how much unit production department produce in hour, day, week and month.

In project we studied for wooden carpet, for manufacturing of carpet machinery take long time to make input into output form. It means in…….hrs that carpet completed as product.

4. Raw-material

Raw- material is rough entity that use for making final product or brand.

In our feasibility it consists with bamboo, chemical, textile like polyester, wool etc. so we looked-out those area wherein raw-material availability is cheap and ease to transport.

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5. Production process

Process to making wooden carpet

Figure: Manufacturing process ]

Bamboo sheets Finishing the Preparing the binding with carpet yarn textile

Design the Dyeing the yarn carpet Final finishing

Dyeing the Tufting the tufted carpet carpet

(1) Preparing the yarn:  In the process of carpet firstly prepare yarn. In that we have to use material nylon, ofelin, polystere, wool, etc, In that yarns arrive at the carpet manufacturer in either staple fiber or bulk continuous filament form.in preparing the yarn we use all type material. The fibers which average 7 inches long, are loose, individual stands that arrive in bales.  All bales blended together into one batch. After that yarn are steamed to bulk them, and then heated to 270-280°F. this heat setting causes the yarn to maintain its shape by fixing its twist. After cooling, these yarns are wound into tubes and transported to dyeing machine.

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(2) Dyeing the yarn:  After preparing the yarn we have to dyeing the yarn. Most carpets are dyed after tufting, yet sometimes the yarns are dyed first. The methods include putting 227-455 kg of fiber into pressurized vats through which treated dyes are circulated, or passing the fiber continuously through the bath, or passing skeins of yarn through the vat of dye. The yarn can also be put on forms, and the heated dyes can then be forced under pressure from inside the forms to color the yarn. Another method passes the yarn through printing rollers, while yet another involves knitting the yarn onto a form that is then printed with dyes before the yarn is

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unraveled. All yarn that has been dyed is then steamed, washed, and dried.

(3)Tufting the carpet:

The yarn is put on a creel (a bar with skewers) behind the tufting machine, then fed into a nylon tube that leads to the tufting needle. The needle pierces the primary backing and pushes the yarn down into a loop. Photoelectric sensors control how deeply the needles plunge into the backing, so the height of the loops can be controlled. A looper, or flat hook, seizes and releases the loop of yarn while the needle pulls back up; the backing is shifted forward and the needle once more pierces the backing further on. To make cut pile, a looper facing the opposite direction is fitted with a knife that acts like a pair of scissors, snipping the loop. This process is carried out by several

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hundred needles (up to 1,200 across the 12 foot [3.7 ml width), and several hundred rows of stitches are carried out per minute. One tufting machine can thus produce several hundred square yards of carpet a day.

(4)Dyeing the tufted carpet

 For solid color carpeting, carpet of several standard roll lengths is sewn together to make a continuous roll, which is then fed into a vat. The vat is filled with water, which is first heated before dyes and chemicals are mixed in. The mixture is then slowly brought to a boil and cooked for four hours. Another method of making solid color carpet is to sew several rows together to make one continuous roll, which is then fed under rods that bleed the color into the pile. After dyeing, the carpet is then steamed to fix the color, excess color is washed off, and the carpet is dried and put on a roll.

(5)Design the carpet

 To make printed carpet of various designs, white carpet passes under screens in which holes in the desired pattern have been cut. The desired color is squeegeed through the holes in the screen, and the carpet is advanced 36 inches (91 cm) to a different screen that applies a new color in a different design through the screen. Up to eight colors can be applied with this method.

(6) Finishing the carpet:

 The ends of the dyed carpet are first sewn together to form a continuous belt. This belt is then rolled under a dispenser that spreads a coating of latex onto the bottom of the carpet.

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At the same time, a strong secondary backing is also coated with latex. Both of these are then rolled onto a marriage roller, which forms them into a sandwich and seals them together.

The carpet is then placed in an oven to cure the latex.

 The completed carpet is then steamed, brushed, vacuumed, and run through a machine that clips off any tufts that rise above its uniform surface. The carpet is then rolled into 120 foot (37 m) lengths that are then packaged in strong plastic and shipped to either the carpet manufacturer's inventory warehouse or to a retail carpet store.

(7). Binding:

After finishing the carpet we have to binding bamboo sheets to the carpet and making the wooden carpet. In that we have to use solution to binding the carpet. We have to done final finishing the carpet.

6. Market availability

Market that consist with selling and buying aspect. In market there firm easily find their customer and sell-out product to theme.

We include Canada as exporter country and country having good market of carpet. In hospital, hotel, colleges, library, function etc are frequently used this same product.

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Machinery

 Automatic weaving machinery

 Dyeing machinery

 Tufting machinery

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(B) Human resource department

MANAGEMENT TEAM Responsibilities One manager will focused on daily operations, including employee hiring , building maintenance, property maintenance, and equipment maintenance, employee pay and benefits. The other manager will focus on marketing, advertising, and community relations, taxes, payables, receivables. Other employees of group will provide support to the owners with regard to their specific area of expertise. Compensation:-  Wage rate for managers and supervisors 20,000 and 10,000 respectively  Wage rate for laborers and workers and bottom level management 5400 per month  Wage rate for salesman and accountant 7000+incentive and 9000 per month  Wage rate for technician 7500 per month  Wage rate for trainer 6500 per month

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Proposed Employees Hiring We plan to hire total 45 employees. Their summary is as follow: Particulars NO. of people Cost Annually

Labors 15 9,72,000

Dealer 10 840000

Security 2 57,600 Technician 5 4,50,000 Accountant 2 2,16,000

Supervisors 6 7,20,000

Managers 2 4,80,000 Total 45 37,35,600

Training The person who provides the training is from the company/ from the home country. His method is familiar type of on the job training is the coaching or understanding coaching. This may involve acquiring skills by observing the supervisor or having the supervisor or job expert shows the new employees step by step. On the job rotation, in which on employees work from job to job at planned intervals is another. Over 40% of wooden carpers are self-employed, which is almost double the average number of self-employed people for all construction workers. Most individuals in this industry do not have formal training, but gain practical experience on the job. Of these areas, carpet installation is the biggest, and so will offer the best opportunities. Most areas of construction are very sensitive to economic conditions, but carpet is less susceptible to those.

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(C) Marketing Department

In this department promotional aspect of firm should be conducted in context of customer satisfaction and market code. Company enables to use different promotional tools at different area of segment.

In our study we use marketing manager as head of product promotion and he should be responsible for sales persons reporting and also for holding their work. We require only one probationary manager of region for our product wooden carpet. Promotional tools uses and its requirement also perform big roll in front of marketer and customer.

Before analysis of 4 P‘s of marketin we analysis STP:

•Identifying meaningfully differnt group of customer in canadian Product Segment market

• selecting Which segment(s) to serve Product • such in canada user of carpet are Hotel Tardeting cahin, library, hospital, etc that segmented area

•Implementing chosen image and appeal to chosen segment •such in canada there are different market available but Product Positioning position by joint with shopping-malls and retailor make it more comfortable.

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Product Segment

• Identifying meaningfully different group of customer in Canadian market

• Here we choose geographic area as our segment.

• Ontario, Ottawa, Toronto city our target area.

Product Targeting

• Selecting Which segment(s) to serve

• Such in Canada user of carpet are Hotel chain, library, hospital, etc that segmented area

Product Positioning

• Implementing chosen image and appeal to chosen segment

• Such in Canada there are different market available but position by joint with shopping-malls and retailer make it more comfortable.

We also here analyze 4 P’s of marketing:

Product

Promotion 4 P’s of marketing Place Mix Price

Promotion

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Product

Product is major concern to define its feature and attribute. If it is not take proper place and market then it will gone out of market. It is also include STP analysis:

In our report we prepared wooden carpet, for this product we have to identify different segment, target area and also define where to fix position of market.

Product feature:

Our product providing different color, style, quality, and maintainability. That makes it different into market.

Color and style

We make product that have quality and color like follow:

Quality

Here we used polyester, wool and bamboo that are major material in carpet. Bamboo is make product different because of its durability.

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Place

Place is nothing but market or a positioning area where product its place. Canada having good market for textile industry especially for product wooden carpet, dealing with different area of segment, it will helps to capture good positioning into market.

In our product we dealing with shopping malls and retailer so infant company‘s position should well define into Canada.

We should sell our product to retailer and wholesaler as well as shopping mall that are as follows:

Promotion

Firm can make their good image through the using different promotional tools like sales-promotion, media, internet ads, trade show, personal selling etc.

We used promotion media like radio; TV; internet and also used hoardings and banner etc. for prompt our product. In Canada people are more aware and highly educated so customer accept promotion frequently and regularly. There lesser effort requires passing ads in more time.

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Figure: Promotional tools

2.Sales Promotion

(Through intenet, Radio, mailing etc.)

1.News papers 3.Magazine and (The globe and booklates mail, National post)

Promotional Tools (that are used to prompt our product in Canada)

Advertising is useful to communicate large amount of population at the time. We are using media like television, radio and print media such as newspaper and magazine

Internet marketing:

1. we developed our own official website: https://www.madrscarpet.com 2. other source of internet marketing are mailing and E-marketing Newspaper:

It is useful to get good local market coverage. it is flexible and timeliness. it is widely accepted by Canadian people.

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Canada has mainly two “NATIONAL” newspapers:

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1) The globe and mail 2) National post

These two are English newspaper which is daily in Canada.

Union jack is another widely accepted newspaper which has 75000 customers.

Cost for advertisement in union jack is from $500 to 600 for one month period. These price changes as the size, color, place and design change. Big advertise charges higher cost than the small one.

There is online advertisement in union jack is also available which charges $99 per month.

Radio:

Canada has more than 2000 radio station on both AM and FM.

It provides high geographic coverage and low cost which help us to maximize the profit of company.

The stations in different cities are:

1. CBC radio-Toronto 2. CFMI 101.1FM-vancouver 3. CHOM 97.7-montreal

We are mainly targeting bigger cities radio station for the promotion of hand gloves.

Magazine:

In canada english and french magazine are available.

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Name of Magagine:

 HOUSE & HOME  CANADIAN INTERIOR  HOME WORK-SHOP  Wood Wrking  Canadian living  Hello!  The hocky news

We are planning to target this highest selling magazines in canada.it costs $500 for month.

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Price

Price is major aspect to define in context different entity like customer, competitor and marketer.

We charge price different at different customer that means charging price should be penetrate market. in market that other company provide carpet in RS.1800-1900 but our provide it in RS.1000 only. here in competitor price higher then as in every aspect suitability of price is lover as compare to competitor.

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(D) Finance department

Cost sheet

Particular Wooden carpet Per Unit Purchase of Raw materials 20,00,000 333.33 Purchase Expenses 25000 4.16 Direct Wages (Labour) 81000 13.50 Prime cost (1) 21,06,000 350.997 Add :- Factory Over Heads:  Plan cost 333333 55.56  Factory Power 41667 6.94  Indirect Wages 70000 11.67  manager‘s salary 40000 6.67  worker‘ salary 42300 7.05  Factory Insurance 100000 16.67  Chemical expenses 30000 5.00  Machinery cost 33017 5.50

Works cost Incurred 27,96,317 466.05 Add:- Administration Over Heads:-  General Charges 22000 3.67  Audit Fees 7000 1.17  Bank Charges 3000 0.50  Salary 118000 19.67 Cost of Production (3) 29,46,317 491.05 Cost of Goods Sold 29,46,317 491.05 Add:- Selling and Distribution OH:-  Manager‘s salary 70000 11.67  Traveling Expenses 500000 83.33  Advertisement expenses 30000 5.00  Promotion charges 70000 11.67  Delivery expenses 96000 16.00  Custom duty 200000 33.33  Other expenses 10000 1.67 Total Cost 39,22,317 653.78 Profit 2077320 346.22 Sales Price 60,00,000 1000

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Budgeted amount

Budget Weight Interest rate WACC Owner‘s fund 0.20 8.24 1.648 Relative 0.50 6.00 3.00 Bank loan 0.30 11.30 3.39 Total 8.038

Budget Weight Interest rate WACC Owner‘s fund 0.20 8.24 1.648 Relative 0.45 6.00 2.7 Bank loan 0.35 11.30 3.95 Total 8.303

Budget Weight Interest rate WACC Owner‘s fund 0.20 8.24 1.648 Relative 0.40 6.00 2.4 Bank loan 0.40 11.30 4.52 Total 8.566

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REFERENCES & RESOURCES

 http://canada.gc.ca/home.html  http://www.canadabusiness.ca/eng/page/2856/  http://1305932.r.msn.com/  www.craftclustersoindia.in  http://www.fairtradevancouver.ca/  http://www.biztradeshow.com/canada/  http://www.indiamart.com/

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