NIFT, HYDERABAD

REPORT ON INTERNSHIP IN AN EXPORT HOUSE A.S. Fashion Private Limited

By Anupma Saroj Batch 2012-2014 Master of Fashion Management

Under the guidance of Mr. SHIV KUMAR BELLI

Department of Fashion Management Studies (FMS) National Institute of Fashion Technology (NIFT) HYDERABAD

NIFT, HYDERABAD

NIFT, HYDERABAD

Certificate
This is to certify that the internship report in internship in an export house A.S. Fashion Pvt. Ltd is a bona fide work of Anupma Saroj, Master of Fashion Management, National Institute of Fashion Technology, Hyderabad. It is submitted in fulfillment of the curriculum requirements of Master of Fashion Management. The work is found to be genuine and satisfactory.

Mr. Shiv Kumar Belli Masters of Fashion Management NIFT, HYDERABAD (Signature) Date:

NIFT, HYDERABAD

DECLARATION
I declare that I have completed the report of Fashion Industry Internship & Training in A.S. Fashion PVT. Ltd., Noida. also declare that all the data taken has been acknowledged by me. I have put all of my efforts to complete this internship report successfully. Any information from secondary data has been duly acknowledged. If found otherwise this degree research project would be rendered null and void.

Anupma Saroj Masters of Fashion Management NIFT, HYDERABAD ( 2012-2014) (Signature) Date:

NIFT, HYDERABAD

Acknowledgement

The internship report seems to be an individual effort is in fact teamwork. Summer internship at A.S. Fashion Pvt. Ltd. has been an enriching experience for me. It would have been impossible to gain this experience without the help and guidance that I received from different quarters at shahs export house. I would like to express my gratitude and sincere thanks towards Mr. Dheeraj Jha (the owner of A.S. Fashion Pvt. Ltd.) who gave me the opportunity to let me do my internship and for his guidance throughout the period Mr. Sayed Munavverali ( the Merchandiser for Desigual) for his support, help and guidance in completing my internship successfully. I am also grateful to my college mentor Mr.Shiv Kumar Belli for his undying support and motivating me to do my internship successfully without failing.

Anupma Saroj MFM (2012-2014) NIFT, HYDERABAD

NIFT, HYDERABAD

Executive Summary
A.S. Fashion Private Limited is an export house l o c a t e d i n N o i d a develops styles for some international brands. It is just 10 year old export house which has a turnover of ru pe ss 4 0 c ro r e t h is y e ar . Its customers include Desigual, Sfera, Didi, SuperStar, Cream and Colveta which is buying house. The brands Didi and SuperStar deals with A.S. Fashion Pvt. Ltd through Colvetta.

The internship done in A.S. Fashion Pvt. Ltd. to observe what is a export house and how it functions. Along with this understanding, as the difference between a export and a house buying house was also learnt. The internship was also done with a motive to learn how a export merchandiser works and what are his/her roles and responsibilities. .

The merchandisers in any other export house mainly have two roles to play Product Development and Production of styles for a particular brand. That includes receiving fabric swatch from the buyer, studying it, developing it to factory, fabric development as per the requirements of the buyer, receive and study of techpak, develop prototype samples, follow factory, meet the deadlines committed to the factory, do the costing for the styles, order fabric for sales sample as per the requirements of the buyer, develop visual samples, doing the reviews, taking bulk order, performing quality checks, making shipments etc. In other words, the merchandiser acts as a link between the buyer and the company. They have the responsibility of ensuring that the product is developed as per the requirements of the buyer so in between they have the responsibility of sourcing, sampling and communication with the buyer. The production merchandiser on the other hand acts as a link between production and buyer merchandiser. They have the responsibility of ensuring that the production goes as per the schedule and as per the requirements and the goods are shipped at the right place, at right time, at the committed price and quantity. This internship helped achieve the motive. It helped in learning the function of a export houseand what is the role, responsibility and function of a export merchandiser and what is the process of style development for the brand, along with the documentation done

NIFT, HYDERABAD

Content
Certificate

Declaration. Acknowledgement Executive Summary.

PART 1: Introduction
i

Companys overview. Literature review Objective. Research methodology..... PART 2 : Role of merchandiser Product development process... Production process Shiping ... Documentation Conclusion. Learnings SWOT .. Limitations Bibliography

NIFT, HYDERABAD

PART:1
INTRODUCTION: following this part consist of the
Company Review Literature review Objective Research methodology

NIFT, HYDERABAD

INTRODUCTION
Company overview
History:
A.S. Fashion Pvt.Ltd started in 2003 located in Noida by Mr. Dheera Jha with partners Mr. Yogesh Rastogi. Later on in 2009 Mrs. Manju joined the company with an expereiance of 20 years. The export house has faced some problem in the beginning but after the first year they have never looked back now survived 10 years. The export house was started with only one motive and still belives in that

Satisfaction for the customers

Manufacture: A.S. Fashion manufactures both woven and knited garments and it produces 1 lakh pieces of high quality wovens & knits per month that caters to all segments in the apparel industry. The manufacturing unit is located in three place currently in Noida. Design & Product Development: The export house deals with the international brands who specifies in the techack what design they want and how it should be and according to the specified designs the products are developed. They have a dedicated knowledgeable product design team, travels worldwide to take the best of the trends and transforming to design creation with mood boards, samples and given added advantage to the customers. They believe to become partners in the progress of our customers, we have to understand the needs and deliver the latest design & product development inputs to make the journey a success. Infrastructure : The entire organization works on a single ERP system, which unifies all the departments working. This not only makes them one of a kind but also gives us the superiority of efficient functioning. This allows them to typically handle the manufacturing, logistics, distribution, inventory, shipping, invoicing, and accounting for a company. This also synchronizes them business activities like sales, delivery, billing, production, inventory management, quality management, and human resources management.

NIFT, HYDERABAD

Embroidery: A.S. Fshion Pvt. Ltd. Has introduced modern technique for the embroidery work which is Chinese Embroidery machine . This machine has a provision of using 9 color threads but their only 1 thread can be used at a time. Also new embroidery addition can support sequencing and special operations in the machine, with the above capacity they can turnaround time of an order can be shorter. The machines are computerized which means firstly the designs are developed through a sepecial software called the embroidery design software.The khakha designs are made by the hand itself and our tradit ional adda work is done
in the organization itself.

Washing: They have state-of-the art front loaded micro-process controlled washing facilities with a expertise of washing for various brands . They do the following washes in fabric & garment form Enzyme wash Acid wash Potassium permanganate wash Aged wash Vintage wash Rubber ball wash Tea stain wash Garment Dyeing is not done in the organization. The dyeing required for the garment is done from the outside deying factories on frequent basis.

NIFT, HYDERABAD

The Chinese Computer Embroidery Machine

The Adda Work done by a worker

NIFT, HYDERABAD

Special Process
Sequencing / beadwork Smocking/Shirring They are capable of producing various smocking/shirring styles with the following machines and to name a few: Manual/Hand Embroidery: Company have in-house capacity of hand embroidery to handle big orders. Sampling: Company always concentrates and spends manpower/money in sampling, they have dedicated sampling units all over 300 machines for knits, woven-Men & woven-women and turning around 15,000 samples every month. The sampling units are equipped with the latest technology machines and well-experienced tailors to handle all kinds of samples with a short lead-time.They have a huge library for wovens / knit which can support the latest trends in the market and the buyers can select the fabric and make the samples with a quick turnaround time. Added to that they got a huge library of trims/accessories to support the sampling. Woven products: Kids range Womens range Fashion concepts Quality: Pre Production activities: Process development department analysis issues a file to Quality and Production. Suggests batch layout/folders/guides and egronomic as per GSD to be used for bulk production Changes in design / construction suggested to the buyer for improved quality / productivity Fabrics: 4 Point system for fabric inspection by professionally trained manpower. In house lab for testing various fabric parameters like shrinkage, spirality, wet and dry rub, colour fastness to washing etc.

NIFT, HYDERABAD

Cutting: State of the art cutting room equipped with latest CAD/CAMS to provide precision cutting consistent Fabric is relaxed to control shrinkage In majority of cases panel wash is done to arrest shrinkage, and spirality (in knits) On line inspection to address issues related to laying, spreading, cutting Lot wise GSM / Shade continuity cards maintained in cutting section. Sewing Stress on process standardization to enhance quality Deskilling Operation by using folders / guides / pattens to get consistent quality. SPF concept enables minimum wip in the lines thereby making it easier to control quality. In line inspection points to weed out issue as close as possible to the needle. An independent audit team audits pcs after end line inspection @ 1.5 AQL Pcs are moved to fng only after their certification. Feedback from Audit on daily basis for further improvement Finishing Clear SOP for processing of a style in finishing. Strong independent internal audit to certify quality before final shipment

Product Range Shahi export house product range includes all categories of knitted and woven garments, which includes: Outerwear, partywear, All customer categories Kids wear, Women, in all sizes & styles. All types of Fashion High fashion, Casual, Semi-formal & Formal.

NIFT, HYDERABAD

COUSTOMERS OF A.S. FASHION PRIVATE LIMITED A.S. Fashion Pvt. Ltd caters to some international brands which targets mid to high end market. The following are the customers of A.S. Fashion Pvt. Ltd and turnovers of top ten customer.

S.NO.

CUSTOMERS

COUNTRY

1. spain

2.

Dutch

3.

4.

Spain

5.

denmark

NIFT, HYDERABAD

NIFT, HYDERABAD

Literature Review
Indian Textile Industry The Indian textile industry has a complex structure. On one hand it is marked by the presence of large-scale production organized players, while on the other hand are the numerous small scale independent units. It is the second largest employer after the agriculture sector in both rural and urban areas. India has a large pool of skilled lowcost textile workers, experienced in technology skills. The textile industry covers a wide range of economic activities, from growing its own raw material ( cotton, jute, silk and wool), to making synthetic fibres (nylon, polyester) to process and provide value added products to consumers (fabrics and garments). It also includes employment generation in both organized and unorganized sectors. The industry is manufacture driven with spinning having large scale operations and the retailing as the weakest link, which is growing slowly and steadily as more and more players are entering into this industry. Besides natural fibres such as cotton, jute and silk, synthetic raw, material products such as polyester staple fibre, polyester filament yarn, acrylic fibre and viscose fibre are produced in India Indias textiles and clothing industry is one of the mainstays of the national economy. It is also one of the largest contributing sectors of Indias exports worldwide. The report of the Working Group constituted by the Planning Commission on boosting Indias manufacturing exports during 12th Five Year Plan (2012-17), envisages Indias exports of Textiles and Clothing at USD 64.41 billion by the end of March, 2017. The textiles industry accounts for 14% of industrial production, which is 4% of GDP; employs 45 million people and accounts for nearly 11% share of the countrys total exports basket.

NIFT, HYDERABAD

Indian Garment Industry

The textiles and garment industry is one of the largest and most prominent sectors of Indian economy, in terms of output, foreign exchange earning and employment generation. Small scale fabricators dominate the garment manufacturing sector. Most of the manufacturing units are medium technology level. The garment industry comprises manufacturers of ready-made garments for either the domestic or export markets or, in certain cases, both. The constituents of this segment are very diverse in terms of their size, production facility, the type of apparel manufactured, the quality of output, fabric requirement, price sensitivity etc. The segment is extremely fragmented, with an estimated 27,000 domestic manufacturers, 48,000 fabricators (job

contractors) and around 1000 manufacturer-exporters. Cotton apparel accounts for the majority of Indian apparel exports. Ownership of the firms in the apparel

industry, are by and large either proprietorship / partnership. In the manufacturing base, fabricators dominate the scene with a share of 72% of the estimated manufacturing capacity of 1.5 million machines Garment Manufacturing Technology The garment production processing steps and techniques involved in the

manufacturing garments for the large scale of production in industrial basis for business purposes is called Garments Manufacturing Technology.

Garments factories are classified according to their product types are as follows: 1. Woven Garment Factory. 2. Knit Garment factory 3. Sweater Garment Factory

NIFT, HYDERABAD

Garment Manufacturing Process Various steps are included in the manufacturing of a garment. Initially a design or style is sketched and the garment is designed as per this design. After the style is sketched the pattern is designed on a paper with the help of CAD (Computer Aided Design). After the pattern is made a sample is made followed by production pattern. Since the pattern is made of middle size, therefore grading is done to proportionally increase (for larger sizes) and decrease (for smaller sizes) the size of the pattern, without changing its original shape, fit, balance and scale. After grading, marker is made, and the fabric is spread along the plies and cut with the flat or round blade. After cutting, ticketing or sorting & bundling is done to keep the cut pieces of different styles and shapes together. After this, sewing and assembling takes place. Fixing of trims, embroidery or printing are done after this. Then the fabric goes for inspection. Washing of fabric, pressing and finishing of fabric is done after this. The garment is finally inspected and packed and dispatched forward.

NIFT, HYDERABAD

NIFT, HYDERABAD

Objective
To understand the Apparel Business Processes. To understand the working of various departments of A.S. Fashion Pvt. Ltd.contributing towards processing of an export order. To understand the role of Merchandisers in A.S. Fashion Pvt. Ltd. To study the Export procedure and Documentation in A.S. Fashion Pvt. Ltd.

Research Methodology:
Our primary objective of doing this project is to get the first hand knowledge of functioning of an export house. Since we are not comparing two different entities on the basis of their financial results, rather we are learning the export procedure. Hence exploratory research design is the need of the hour. Further there are few reasons which made me to use Exploratory Qualitative research: It is not always desirable or possible to use fully structured or formal methods to obtain information from respondents. People may be unable & unwilling to answer certain questions or unable to give truthful answers. People may be unable to provide accurate answer to question that tap their sub consciousness.

Thus, project research methodology is as follows: In Primary data, Qualitative research through In-Depth Interviews has been adopted. For interviews non structured open-ended questions were used. In Secondary data, both internal & external research was done. For internal research Ready to use documents available with the organization were used. For external research Internet website & published books were consulted.

NIFT, HYDERABAD

PART:2
ROLE OF MERCHANDISER IN PRODUCT DEVELOPMENT
AND PRODUCTION PROCESS : Role of merchandiser Product development process Production process Shipping Logistics

NIFT, HYDERABAD

Roles of Merchandisers
Merchandisers have various roles to play, of which the following are the most important ones. They are: Product Development Production Product Development Product development is a process that involves creating and developing each individual style within the line. A product developer is involved through the entire process from concept to delivery. In general terms, product development is defined as creation of products with new or different characteristics that offer new or additional benefits to the customer. It may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer want or market niche. The product development includes idea generation, then screening of the idea and check its feasibility and sale ability, create prototype and test or inspect it, make costing, and take orders for bulk. In short, product development merchandiser acts as a link between the buyer and the factory or manufacturer. They have developed as per the responsibility of ensuring that the product is

the requirements of the buyer. Thus, they shoulder the

responsibility of sourcing, sampling and communication with the buyer. Production The production merchandiser takes over when the bulk order for samples starts getting booked. They have the responsibility of ensuring that the production goes as per the schedule and requirements of the buyer. They are also responsible for developing the fit sample and take the closure quantity and cost. After this they develop the final sample for visual approval and then the production for bulk starts. Here they see the production process goes on time and there is no delay in the process so that the buyer gets the goods at committed time, committed quantity, at right place and right cost.

NIFT, HYDERABAD

Design presentation The b u y e r s p e c i f i s e s t h e d e s i g n t h e y w a n t i n t h e t e c h p a c k . E v e r y single details like the sequencing if required then how should it be e c t . a r e g i v e n b y t h e b u y e r i t s e l f . B a s e d o n t h e s p e c i f i e d d e s i g n the samples are developed.

Range development and allocation of styles by On the basis of different design presentations given to buyer by different vendors, they finally launch a collection. This collection may include styles which was given by the vendor, or make slight changes in them or pick up the concept and blend it with some other design or make an altogether new style. Once they finalise the styles, they allocate the styles to different vendors of which is one of them. Along with the styles they specify which fabric is to be used and of what colour, for a particular style. Once we get the styles from the buyer, we have to allocate them to factories for fabric and prototype development.

NIFT, HYDERABAD

Decoding styles The buyer assigns alphabets to different seasons starting from the letter. Thus, the first letter in the style represents the season. The second represents the gender i.e. if the style has number 5, it means its Women style and if it has number, 6, it is men style. The third letter describes the apparel. It could have any of the following letters: M represents Top, X represents Tees, H represents Bottom, W represents Sweater and R represents Dress , J for Denim and S for Shorts. The following three numbers after this letter is the style number. For eg:

W5M851
Season Gender Description The above style no signifies the style is for Summer 2013. Its a womens garment. Since it has a M, it means its a top. Therefore, its a womens top for the seasonsummer 2013. Style no

Receive fabric swatch After buyer allocates the style, they dispatch fabric swatch for different styles. The fabric swatch is a reference which is to be studied and the fabric yardage is to be developed as per the swatch following the fabric type, content, count, GSM, gauze, etc. The fabric developed has to be duplicated from the swatch.

NIFT, HYDERABAD

Analysis of swatch After the swatch is received, the product development merchandiser analyses the fabric swatch. They observe the fabric type whether it is knits or woven, if its knit, then what is its construction, content, count, GSM, gauge etc. and if it is woven then what is its count, construction and content. If the garment is knit then its construction is whether the garment is single jersey or double jersey or has rib construction. The yarn count expresses the thickness of the yarn. The yarn count number indicates the length of yarn in relation to the weight. GSM measures the weight (in grams) of the per square metre of the garment. This signifies how fine or thick/heavy fabric is to be used. Gauge refers to the number of stitches per inch. The gauge is measured by counting the number of stitches (in hand knitting) or the number of needles (on a knitting machine bed) over several inches then dividing by the number of inches in the width of the sample. Similarly, in woven garments, construction refers to the type of weave and content refers to the composition of the fabric. Since as per the swatch the fabric is to be developed, therefore they study the swatch and make the allotments to factory style wise as per their capability of producing it.

Allocation of styles to factory After the swatch is studied, the styles are allotted to different factories as per the fabric requirement and factory capability.

Fabric Sourcing in A.S. Fashion the fabrics are not produced on the other hand being a new and small export house it sources from outside. The fabric is sourced according to the specification given by the buyer with each style it mentions the fabric quality that it wants, it may be 100% modal or PIMA cotton or slub jersey etc. With the help of the swatch send byv buyer, the fabric sourced maintains the count, construction, gsm, gauge etc. Also the buyer provides company with a colour standard reference which has a swatch for each colour required by them. If for a particular colour mentioned by the

NIFT, HYDERABAD

buyer, the company has no reference, then buyer or buying house give them a cutting of the colour standard for reference. Also, the buyer mentions, for a particular style, what all combo (colours) does it want the pieces. Now, according to the specification given by the buyer, we have to source that kind of fabric. It has to follow the colour standards provided and accordingly develop the fabric. After the fabric is sourced, the company is expected to send buying house two swatches for colour approval. If the colour is approved, we send one card to the buyer for approval and maintain the second card in the file. And if it is not approved, buying house or buyer sent its to back with comments and we redevelop it and send again to buying house. For colour approval, swatch is matched with the color standards provided by the buyer in the light box. The fabric should be enough to develop 3-5 samples. If not much, at least 3 samples has to be developed as 1 sample has to be sent to the buyer, 1 sample has to be sent on buying office and 1 sample is kept as a counter with the factory.

Receive and study of techpak

After the allocation of styles to the company and the fabric sourcing the buyers send company the Techpak which the factory is suppose to follow for the 1st prototype development. As soon as techpak is ready, a mail comes to the merchandisers saying that the techpak is ready with comments. The the techpak keeps

merchandiser downloads the techpak from the site also

getting revised with new comments for design or washing etc. Whenever the new revised techpak is ready the buyer uploads it on the site and sends us a mail notifying about the new techpak. The company is expected to follow the most recent and updated techpak. The techpak has all the information, right from specifications (measurements), fitting, printing, washing and trim details. If there is an artwork they upload it to on the site and we get to download from there. The artwork also has the measurements written on it and the colour to be used.Once the merchandiser receives the techpak, they are expected to study them and note any special requirements or needs so that they can emphasize on them when the prototype gets developed or to verify all the specifications when the prototype is ready.

NIFT, HYDERABAD

Develop Prototype samples After the company receives the forwarded techpak, it is expected to develop prototype samples. Buyers needs only 1st prototype and 2nd prototype samples. If there is any fitting issue, then we have to send a fitting sample which is inspected by fitting it on dummy.

1st Prototype development Following the most revised techpak the first prototype is developed from the fabric which was developed by the factory. The company has to initially make at least three samples, one it keeps with itself as counter for further reference and two it sends to buying office. If the sample is approved then we start further process but if rejected we redevelop it. The sample is inspected by the technical team, which matches the specification sheet with the actual measurements and if the fluctuation, if any, falls in the tolerance range, it is approved but if it fails it is rejected. Also, if the measurements of the non-critical points (like sleeve length or front body length etc.) vary and not fall in the tolerance range, it is passed but for critical points (like chest width, cuff width etc. which essentially affect the garment fitting), the fluctuations should fall in the tolerance range or else it is failed. If the corrections can be incorporated in the same sample, then it is modified and resend to us and if it cannot be done, then new sample is made and two pieces send to us and one is kept as their counter. Costing Once all the 1st prototype samples are dispatched, we do the costing.The buyer always gives us a price target and accordingly we have to negotiate the price with the factory as well as the buyer. Here in this step the merchandiser has to analyse and compare the cost for various things. In simple words the merchandiser has to compare the prices on the basis of different types of fabric, trim density, size of logo, type of embroidery, embroidery type, print type etc.

NIFT, HYDERABAD

The two cost sheets are the factory cost sheets for the style W5M838. The first cost sheet is for the combo without print and the second cost sheet is for combo with print. These two cost sheets compare the difference in the costs due to prints done.

Once the merchandiser at shahi, sends the cost sheet to the buying house,buying house send it to buyer, and the buyer quotes a price target which maybe less or more than what the merchandiser quotes. Accordingly, the merchandiser has to negotiate the price with the factory/vendor and the buyer.

2nd Prototype development After the first prototype samples are dispatched there are many styles that are dropped probably because they do not look visually appealing or are not feasible or some other vendor is providing them better option or at lower price for the same price. After the styles are dropped we have lesser styles for 2 nd prototype development. Also, almost all the samples of first prototype are rejected either due to fitting comments or design, printing comments.

Second prototype styles allotment

NIFT, HYDERABAD

After we get the mail from the buying house of the 2nd prototype styles, they upload the new techpak to be followed for second prototype development. The new techpak have updated fitting, design, printing, washing and trim comments (whichever applicable). Along with the techpak the buyer/buying house send us the pinned sample. Pinned sample is nothing but the 1st prototype that we had send the buying house with the

modifications incorporated by the buyer. If any part of the garment needs to be loosened, the buyer makes a cut there, loosens it and puts a tape from both sides. And if any part has to be folded or the width is to be reduced, they fold the fabric and put safety pins. Also, they put marks on the sample where corrections are to be made. The pinned samples are sent because although the measurements are given in the techpak but at the buyers end when a live model puts on the garment , then there may be many folds/creases or the garment may get tight at a particular point. Therefore, these corrections are recognized and made after the live model wears the garment. The second prototype which is to be developed must follow the techpak and the pinned sample. So, as soon as buying house receives the pinned sample it couriers it to the A.S. Fashion PVT. Ltd.

Referring the techpak and pinned sample A.S. Fashion develops three samples, one is its counter for us further reference and two it sends to buying house of which one after approval is send to the buyer and the second is buying house counter. Counter is the reference sample that factory keep with itself for future reference. Along with the second prototype, the buyer needs few more samples for its presentations, like Pre Press sample, Fashion show sample or Showroom sample. For each style the buyer mentions how many samples and for which presentation it needs. Accordingly we name the samples and dispatch it. The technical team only inspects the 2nd prototype sample and not the samples that the buyer asks for presentations. If for a particular style, there are more than one combo, then we inspect just one combo and dispatch others as visual reference and not for fitting. As per the rule, along with the 2 nd prototype, the

NIFT, HYDERABAD

factory is expected to return the pinned sample so that we can compare and inspect, pattern, digitals (of dummy fit at their end) and review sheet. In review sheet, the specifications are given and the technical team write their measurements and comments against it. All these samples are to be dispatched to buying house.If there is some issues with the fitting, the buyer asks for a fit sample which is developed and inspected in A.S. Fashion. Fit sample, along with the measurement the technical team, dummy fits the sample and inspects if the fitting is right without loose/tight fitting or much drag line visible.When buyer reviews the style and we get the order for the bulk, the factory develops the fabric. A swatch of the fabric which will be used for the production is given to us for the colour approval. This swatch is known as Sales sampling yardage ( SSY) cut.if the swatch is approved, we send one card to the buying house and keep the other for our future reference, and the colour dosent. match with the colour standard, buying house send it to back and we work on it we provide with lab dips which are forwarded to the buyer. The colour are matched with the colour standards in the light box by pressing the daylight option When the artwork is receive by export house for development, the company before putting it on garment, duplicates the artwork on a swatch of required area and sends it for approval. This is known as Strike-Off. If the artwork is approved then the company will go ahead and duplicate the same on the garment and if its rejected for say, distorted artwork due to high embroidery density, then we required to develop the artwork again and send a fresh swatch. For Strike-Off approval we check the colour of artwork used and verify it with the detail given in the artwork detail or techpak and also check the length and width of the artwork. If it approved we send a copy to the buying house and keep one as our counter.

If there is a particular construction of woven required then we send a Mock, producing the construction on any part of the garment. Then we will produce this construction on say, arm or just the front of the garment and send it for approval. This is known as Mock. When the same is made on a larger part of the garment then it is called the Panel.

NIFT, HYDERABAD

Swatch Card

NIFT, HYDERABAD

The samples that are sent to the buyer should have one label inside, label printed on the neck and one hand tag with company label. If we are unable to produce the required construction or print or colour of the required standard, then we need to provide Call Outs. Call outs are the concerns expressed by mill, vendor or internal experts on quality, cost, lead-time or bulk production feasibility. These are anticipated deviations from the buyers standards. Some characteristics may be inherent to the product and it is imperative to have customers understanding and agreement on the same. This will lead to revised standard setting. In other cases, more workable options need to be presented to the customer.
Costing

Once the first prototype sample is developed, buying house will ask us to provide the open costing (price break up) for each style. Once we send the costing, the merchandiser will check the cost sheet and see if the factory is overcharging, modify it and send it to the buyer. Many at times buyer doesnt agree on the costing and the merchandiser has to negotiate the pricing with the factory and the buyer. Order fabric for sales Once we quote the pricing for the styles and dispatch the first prototype samples, there are many styles that gets dropped. It may be due to poor visual appeal or less feasible or other vendor giving it at a competitive price. Now, the styles that we finally get are tbe developed as second prototype samples. The second prototype sample of target is called the sales sample. With the style allotment, we gives the fabric details that are to be followed for the second prototype sample. By the time, the buyer sends us the new and revised techpak, by that time we have to be ready with the fabric. So as soon as buying house gets the fabric details, it allots styles to us as per our capabilities and pricing and the company has to order or source fabric for the sample. For a particular style buyer may want more than one sample. They specify these in the mail so accordingly the fabric is to be sourced so that along with 3 second prototype samples, they can make the other samples.

NIFT, HYDERABAD

Sales Sample After the fabric is sourced and developed and the revised techpak received, the factory produces the second prototype sample. The factory is expected to follow the most updated techpak and artwork. The process of development and approval is same as that for first prototype development. These sales sample has to be send to th different stores so as to know the dmand in the customers. Once the feedback from these stores come the merchandiser consults the buyer and if there is good response then we rder the booking .

Order Booking Once the second prototype or sales sample is dispatched and received and reviewed by buyer we get the bulk order booking. The no. of pieces as on the purchase order has to be dispatched to the stores. The purchase order will also have the number of pieces or style wise to be packed in the carton.

A.S. Fashion Pvt. Ltd. : fabric store

NIFT, HYDERABAD

Production Process

NIFT, HYDERABAD

The production merchandiser takes the bulk order booking and follows the factory so that they maintain the ex-date. The bulk booking is done after the price and quantity is closed by the buyer Developing Fit Sample After the second prototype is dispatched there might still be some comments or modifications to be made. The comments may be for Fabric or Fitting or Embellishment. If there is any comment for the fabric quality, we send them mock and if the comment is due to colour, we sent them lab dips. Once they are approved, we make a final sample and sent it to the buyer for approval. If the buyer has issued a fitting comment, then we make another sample and inspect the measurements and dummy fit it. If it fits properly, we dispatch it to the buyer for approval. And if the comment is for embellishment, we sent them a strike-off, if it gets approved, we duplicated the same embellishment on the garment and dispatch it to the buyer for approval. Once this is approved, we close the sample, i.e. there are no more changes to be made in the sample. Visual Approval Sample development After the final sample is developed, we duplicates three more samples of the final approved sample. These three samples are approved by buying house and sent to the buyer, the buyer checks and approves the measurements, visual appeal, fabric, colour, trims, hand feel etc. once this is done, the buyer keeps one sample with itself and returns two to buying house. Buying house keeps one with itself and returns the third to the shahi. Now, based on this sample the bulk is to be manufactured. This sample is mainly for visual appeal which is to be followed for bulk production. Also, if a particular style has three combos, visual samples for all the three combos are to be developed and get approved from the buyer.

Bulk Production Referring the approved visual sample, the factory produces the bulk. It produces the quantity which is closed by the buyer. The production merchandiser follows the factory continuously so that they do not miss the committed ex-date.

NIFT, HYDERABAD

Inspection Once the bulk is produced, the QA team from buying house come to the factory and inspect samples from the bulk. The sample number is as per the AQL (Accepted Quality Level). The AQL mentions the amount of samples to be inspected based on the number of pieces in the bulk. The samples are chosen in random. Those samples are called TOP (Top Of Production) sample. In other words, TOP samples represent the bulk. If a particular style has three combos, then TOP sample is to be drawn of all the three combos. The TOP samples are inspected against the visual approved sample. If the TOP sample truly resembles the visual sample, then the bulk is passed and if it fails the whole bulk is rejected. Testing labs like ITS, SGS, MTL, BV conduct test on bulk fabric, FPT (Fabric Performance Test) and bulk garment, GPT (Garment Performance Test). The fabric test tests the colour fastness of the fabric towards washing, laundering, crocking, chlorine bleach, non chlorine bleach, perspiration, water and light. It also tests for the

flammability, pilling, bursting strength, pH value, fibre content, changes in appearance after third washing. The garment test tests seam stretchability, colour fastness to washing, dry cleaning, crocking, chlorine and non-chlorine bleach, perspiration, water and light. It also tests flammability, pilling, bursting strength, pH value, fibre content, changes in appearance after third washing. If the test results for the properties fall in the suggested range, the bulk fabric or garment passes the test and if it fails the bulk fabric or garment is held back. Meeting), Size Set, Pilot, Interim and Final inspection. PPM inspection takes into

consideration certain specifications that company specifically needs to keep in mind. If 4-5 pieces for a single style are produced, then pilot inspection is conducted. The inspection done after 200-300 pieces of production of a single style is called Size Set. The inspection carried out when half of the production for a single style is produced is called Interim inspection and the inspection carried out as per the AQL level when full production is produced is called the Final inspection. If there are comments in any of these stages of inspection, the factory is expected to correct and modify it before bulk production and shipment.

NIFT, HYDERABAD

Shipment Once the bulk is inspected and approved, the goods are ready for shipment. The goods are packed as per the information given in PO (Purchase Order). If the PO asks for Pre Pack, it means per box will have different sizes of a style. The ratio of packing different styles is mentioned in the PO and accordingly it is to be packed. The total samples per size, total samples per box, total number of cartons to be shipped and the total samples to be shipped, all are mentioned in the Purchase Order. If the buyer doesnt want Pre Pack, then different sizes of a style are packed separately. The PO in that case just mentions the quantity of samples per size to be shipped and total quantity to be shipped. Along, with these there are other details in the PO, like which factory along with the address is making the shipment, who will receive the shipment, when is the shipment due and the last date for handover, ticket information and address, style number, colour, style description to be shipped, material and construction details, shipping information, mode of shipment (Air/Ocean), cost price, retail price, total worth of shipment products etc. Separate POs are made for separate styles.

There are different methods of packing garments. They are as follows: GOHH (Garments On Hanger, Hanging) GOHF (Garments On Hanger, Flat pack in cartons) Flat Pack (Flat Pack in cartons)

There are many levels and steps of inspection. They include PPM (Pre Production Though t h e b u y e r opts for the third packing option, that is, samples to be folded and packed flat in cartons. These samples can be packed in two methods, one with garments hung in hanger, and they are packed flat in carton or they are hung in cartons. For the brand like Sfera the parent brand EL Corte Ingles all cartons (whether prepack, storage or balance pieces) and fabric rolls (raw materials) shall be clearly marked with the shipping marks.

NIFT, HYDERABAD

The relevant Buying Office will provide the templates of these shipping marks in an Excel file so that the supplier can make and print these labels with a regular color printerAll cartons (whether prepack, storage or balance pieces) and fabric rolls (raw materials) shall be clearly marked with the shipping.

Sfera Mexico Orders

NIFT, HYDERABAD

Department Lables

NIFT, HYDERABAD

he ex-date mentioned in the WIP is the ex-India date and not at consolidator date. The samples can be shipped either by Ocean or Air. If the deadline is missed, then the samples are dispatched by air. If the buyer wants the delivery by air, it is called Air Collect, where the buyer bears the cost of Air shipment. But if we misses the deadline and ships it via air, then we bears the cost and it is called Air Prepaid.

If the samples are dispatched by Ocean, it takes around 21 days to reach the buyer. As per the L/C (Letter of Credit), the samples get dispatched from Mumbai JNPT (Jawaharlal Nehru Port Trust) port where it gets custom cleared. Since, buying house charges at FOB, therefore, After the goods are on vessel, the buyer bears the cost. The vessel for TA leaves Tuesday of every week. The samples that are to be ocean shipped have to be handed over to Mumbai port on Monday of the previous week, so that they have one weeks time to get it custom cleared and other formalities done and get it loaded on the ship.

If the samples are to be dispatched by air, it takes around 1-3 days to reach the buyer. The moment we dispatch the samples, the next day, we get the AWB (Air Way Bill) number, which buying office have to convey to the buyer so that they can collect their concerned sample from the airport.

Shipping and Logistics

Supply Chain Management (SCM) Supply Chain Management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed). As a solution for successful supply chain management, sophisticated software systems with Web interfaces are competing with Web-based Application Service Providers (ASP) who promise to provide part or all of the SCM service for companies who rent their service.

NIFT, HYDERABAD

Supply chain management flows can be divided into three

main flows: Product flow, which includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. Information flow, which involves transmitting orders and updating the status of delivery. Finances flow, which consists of credit terms, payment schedules, and

consignment and title ownership arrangements.

Documentation It is essential that aperson engaged in international trade be aware of the various procedure involved. The business of exports is heavily document- oriented and onemust get acquainted with the entire procedure. Failure to comply with documentary requirement may lead to financial loss. The documentation is required to be done at the very beginning of the whole process. The documentation is to be done befor the shipment procedure and after the shipment procedure. Pre- Shipment Procedure On receiving the requisitionand purchase order from the merchant, documentation department issues an invoice. Two invoices are prepared i.e. commercial invoice and custom invoice. Commercial invoice is prepared for the buyer and Custom invoice is prepared for the Custom authorities of both the countries. Packaging listis prepared which details the goods being shipped. GSP certificate is prepared if the consignment is exportedto EU or countries mentioned in the GSP list. Buying house inspects the goods and issues the certificate. Certificate of origin is also issued and attached, if required. Following documents are given to Custon for their reference: Custom Invoice Packing List IEC Cerificate Purchase order, if required Custom annexure On receipt of the above documents, custom will issue clearance certificate. After custom clearance a set of document with the custom clearance receipt are sent along with the consignment to the forwarder. Forwarder books the shipments and as per the size of the catons calculates CBM and decideswhich container to be used.

NIFT, HYDERABAD

Following documents are sent to the buying house for their reference, a per buyer,s requirement: Invoice Paciking list GSP ( if exports to Europe) Certificet if origin, if required Wearing apparel sheet A copy of FCR/Aiway Bill? Bill if Lading Buing house then intimates the buyer about the shipment and gives the details regarding it. Buying house will send a set of these documents to the buyer. Buyer collects the consignemnet from the destination port by showing the following documents. Invoice Packaging list Bill of lading/ FCR / Airway Bill On shipment of goods, exporter will send the document to the importr,s bank. Post- Shipment Procedure A foreign buyer will make the payment in two ways: TT (telegraphic transfer) i.e. Wire Transfer ( Advanced payment , as per the clause 50% advanced and remaining 50% on shipment) Letter of credit If the payment terms are a confirmed L/C then the payment will be made by the foreign bank receiving the following documents: Invoice Packing list B/L Any other required by the buyer or the country of import. The payment terms can be : At sight Within 15 days fronm the Bill OF Lading or Airway Bill date Within 30days fronm the Bill OF Lading or Airway Bill date Within 60 days fronm the Bill OF Lading or Airway Bill date Within 90 days fronm the Bill OF Lading or Airway Bill date After shipment, exporter sends the document to the buyers bank for payment. As the buyers bank receive the document it will confirm with the buyer for release of payment.on confirmation, it will make the payment in the foreign currency.the transction will be bank to bank. The dimestic branch will credit the exporters account, as against the respective pur chase order or invoice. If the payment is through wire transfer, the payment will be made as per the terms agreed by the reporter

NIFT, HYDERABAD

Documents required for exports to different countries

Documents

USA

EEC

Canada

Far East

Invoice

Packing list

Certificate of origin

GSP Form A

**

Single/Multiple Country Declaration Canada Custom Invoice X X X X XX

NIFT, HYDERABAD

Packing check list

A.S. Fashion Pvt. Ltd. : Packaging Department (packaging being done for brand Cream)

NIFT, HYDERABAD

For Sfera orders Uneco label shall be sticked next to the SSMM

NIFT, HYDERABAD

Clearing Shipments
Agencies involved in clearing the sea shipments Custom House Agents (CHA) Consolidator Carrier

The process is as follows: Vendor places the booking with nominated consolidator through their CHA. Consolidator provides the carting order to vendor or their CHA to custom clear the goods and to hand over to CFS (Container Freight Station) for consolidation. Consolidator does the consolidation of various goods and making the FCL (Full Container Load) and shipping as per customer requirements. Agencies involved in clearing the air shipments Custom House Agents (CHA) Air Cargo agent Carrier

The process is as follows: Vendor or the CHA places the booking with nominated air cargo agent. Air cargo agent does the clearing of goods based on space confirmed by the carrier and handing over to them for shipment. Air Shipments: MAWB (Master Air Way Bill) number HAWB (House Air Way Bill) number MAWB is issued by the Carrier and HAWB is issued by the Cargo Agent

Proof of Shipment
Sea Shipments: BOL (Bill Of Lading) FCR (Forwarders Cargo Receipt) BOL is issued by the Carrier and FCR is issued by the Consolidat

NIFT, HYDERABAD

Part:3
This part of the report includes the following: Conclusion Learnings Swot analysis Limitations Bibliography

NIFT, HYDERABAD

Conclusion
The study was conducted to know the process involved in an apparel firm and to study about the various departmental functions which coordinates to complete the export cycle. The other basic objective of the study is to know about the merchandisers role in the export house and it is found that they play a very important and wide role from the starting of the order generation to the shipment and provide linkage between various departments. The export procedure of the firm has been seen clearly and other related aspect has been known. The documents that are required for the export are very much in numbers. This makes the export procedure complex but with this study we are able to know about the export procedure and the various documents that are required for the export.

Learnings
International Trade process. Working in various department of an Export House :

The entire organization works on a single ERP system, which unifies all the departments working. This not only makes them one of a kind but also gives us the superiority of efficient functioning. This allows them to typically handle the manufacturing, logistics, distribution, inventory, shipping, invoicing, and accounting for a company. This also synchronizes them business activities like sales, delivery, billing, production, inventory management, quality management, and human resources management
The role of the merchandiser in different department.

There are two types of merchandiser in a buying house, namely Buyer merchandiser acts as a link between the buyer and the manufacturer. They have the responsibility of ensuring that the product is developed as per the requirements of the buyer so in between they have the responsibility of sourcing, sampling and communication with the buyer. The Production merchandiser, on the other hand, is a link between production and buyer merchant. They have the responsibility of ensuring that the bulk production goes as per the schedule and as per the requirements

NIFT, HYDERABAD

Learnt about garment industry:

The textiles and garment industry is one of the largest and most prominent sectors of Indian economy, in terms of output, foreign exchange earning and employment generation. Small scale fabricators dominate the garment manufacturing sector. Most of the manufacturing units are medium technology level. The garment industry comprises manufacturers of ready-made garments for either the domestic or export markets or, in certain cases, both.
Apparel production process:

Various steps are included in the manufacturing of a garment. Initially a design or style is sketched and the garment is designed as per this design. After the style is sketched the pattern is designed on a paper with the help of CAD (Computer Aided Design). After the pattern is made a sample is made followed by production pattern. Since the pattern is made of middle size, therefore

grading is done to proportionally increase (for larger sizes) and decrease (for smaller sizes) the size of the pattern, without changing its original shape, fit, balance and scale. After grading, marker is made, and the fabric is spread along the plies and cut with the flat or round blade. After cutting, ticketing or sorting & bundling is done to keep the cut pieces of different styles and shapes together. After this, sewing and assembling takes place. Fixing of trims, embroidery or printing are done after this. Then the fabric goes for inspection. Washing of fabric, pressing and finishing of fabric is done after this. The garment is finally inspected and packed and dispatched forward.
International trade documentation: Documentation is important part of the export house. It is done at the pre shipment procedure and post shipment procedure. Learnt about working of an Export House:

NIFT, HYDERABAD

SWOT ANALYSIS OF A.S. FASHION PRIVATE LIMITED

Strength : Its main strength is that being a small and a new export house it is into both woven and knitted fabrics. Its buyers are the internationally recognised brands. Hs survived for 10 years. Weakness:

has backward methods of production. There is no CAD machine, its done manually. No proper utilisation of resources High rate of problem creation due to ehich wastage is more. Slow process of detection due which high rate of rejection.
No proper working conditions thus low rate efficiency. Employees with less knowledge of the field.

Opportunities: Greater exposure to the international market. Dealing with the international brands, will give more recognition.

Threat: Competitive threat from the international market Booming export industry will stiffen the market.

Limitations:
Concern about the validity. Labour intensive data collection. Conclusion & interpretation of qualitative research. Need for training in qualitative

research

NIFT, HYDERABAD

BIBLIOGRAPHY
http://www.texmin.nic.in/budget/outcome_budget/Outcome_Budget_12_13_b_an d_a http://commerce.nic.in/tradestats/Indiastrade_press.pdfhttp://commerce.nic.in/im ages/india_export2_a.jpg http://www.elcorteingles.eu/brands/Sfera http://www.brandsofspain.com/brand/sfera-2/

NIFT, HYDERABAD