MARKET RESEACRH FOR

DEVELOPMENT AND EXPANSION

OF AN EXPORT HOUSE

New

EXECUTIVE SUMMARY
Businesses like Lightwave Trading Pvt. Ltd. are the heart of the market due to their constant efforts towards
building a good company image in the minds of the international importers, exporters, distributors and the
trading companies in the domestic and the international market.
Export house industries and Small Business Enterprises are playing a significant role by contributing to the
production and services, employment and thereby to GDP. But these are found to face severe competition and
different types of constraints.
As an Interest, I opted for Marketing as My Specialization in Bachelor of Management Studies. Here I took an
opportunity to work with an Export House company called Lightwave Trading Pvt. Ltd. to gain an overall entire
exposure in Marketing field and related activities for my Internship.

This Report is divided into following Chapters:

Chapter-1: It will discuss about the organization details, profile and type of the organization. It will
discuss in the detail about the Culture and structure of the organization as well as about its products,
services, milestones. In this chapter the vision, mission, objectives and future plans of the organization

will be discussed in detail.

Chapter-2: This chapter will basically discuss about my Learning Objectives.
Chapter-3: In this section the details of internship, department, work responsibilities and duties will be

discussed. This chapter will also discuss about achievements, problem faced, short comings and timings.
Chapter-4: This chapter will discuss about the other departments, details of other departments, business

processes and my observations.

Chapter-5: My experience with the organization will be discussed in this chapter. Value addition to my
profile, my learnings, practical application of knowledge from the course. Suggestions,
Recommendations and Conclusion is also discussed.

CHAPTER 1
Introduction

Overview

WHAT IS EXPORT?
An export is a function of international trade whereby goods produced in one country are shipped to another
country for future sale or trade. The sale of such goods adds to the producing nation's gross output. If used for
trade, exports are exchanged for other products or services in other countries.

WHAT IS AN EXPORT HOUSE?

Export House is defined as a registered exporter holding a valid Export House Certificate issued by the Director
general of Foreign Trade in India. Export House in India Origin 1958, for the development of specialized
agencies for the promotion of traditional and non-traditional items. The initiative was necessary to help the
small-scale sector in the export of their products in global markets.

OBJECTIVES OF EXPORT HOUSE:

To make available supplies of essential commodities to consumers at reasonable prices on a regular

basis.
To ensure a fair price of the produce to the farmers so that there may be an adequate incentive to increase

production.
To minimize violent price fluctuations occurring as a result of seasonal variations in supply and demand.
To arrange for supply of fertilizers and insecticides.
To provide the daily use product at reasonable prices.
To satisfy the needs of the consumers of Global Market.
To undertake the procurement and maintenance of buffer stock and their distribution whenever and

wherever necessary.
To arrange for storage, transportation, packaging and processing.

ORGANISATIONAL DETAILS

M/s.Lightwave Trading Co. Pvt. Ltd is a Private Limited Company incorporated in 2006 is a certified Export
House by the Government of India, an export solution provider with the aim of offering the most effective and
reliable export import services across the globe. The main line of exports comprises of FMCG products such as
Hair Oil, Soaps, Ayurveda & Herbal Products, Cosmetic Creams, Food stuff, General Provisions etc. Lightwave
trading company is a certified export house which specializes in exporting goods produced by other companies.
Name:

Lightwave Trading Pvt. Ltd.

Type:

Export House Company (Limited)

Address: 403, Ashok Heights, Vasudeva Mishra Marg, Near Sarasvati tower, Andheri East.
Website: http://www.lightwavetrading.com/
Expertise:

Product Sourcing- The extensive network of sourcing from distributors & manufacturing across India

have led to quick turnaround times in delivery of shipments.

Reliable Service- Their experience in export of 25+ years comes to play in giving our clients the best of
service in terms of client communication, sourcing of products, shipping & logistics, as well as payment

terms.
Business Management- They believe in long term business relationships with our clients and ensure
customers to be given the best of experience in doing business with us. Our efficient management team

is always on the go to help you with your needs.

Start- Incorporated in 2006
Line of business- Export of branded & non branded goods in the FMCG, F & B sector to importers &
re-exporters to various markets in APAC, ASEAN, Middle East markets from India.
Important Milestone:

1. Export house certification by 2012.

2. Highest revenue till date in 2014-2015 of 3.4 M USD

Private Label and contract manufacturing:

They partner with factories who are making products for the MNCs like Unilever, Godrej, Himalaya and
help you in creating the best of brands under your own labels
They also have in house marketing experts who help you with a brand building exercises and marketing
plans your brands.

MISSION&VISION
A mission and vision are standard and critical elements of a company's organizational strategy. Most
established companies develop organizational mission statements and vision statements, which serve as
foundational guides in the establishment of company objectives. The company then develops strategic and
tactical plans for objectives.
Think Local, Act Global
We believe in building a global company with its roots in India
Global Distribution of products and building build global brands

Relationship to Organizational Strategy:

The company generates short and long-term objectives using the mission statement.
Objectives include market-share targets, revenue or profit goals, customer satisfaction scores and

improved brand awareness.

It develops strategies to accomplish objectives.

Experienced Team
The founding members as well as the team of Lightwave Trading Pvt. Ltd. have gainful experience in the
areas of services which Lightwave provides. Our team in Lightwave has, for past many years, been
advising clients from various sectors of the industry and providing services in the areas of FMCG exports.

Mr.Monis
h Parikh

An Advertising Professional
Worked with MNCs in building
International Brands Hard Rock
Caf, Hamleys, Puma, Oakley, MTS,
Star World, Star India

Mr.
Bhadresh

25 years of experience in the

trading/ export of FMCG items. The
knowledge & experience of global
markets, professional relations with
the buyers and expertise of local
sourcing has built the foundation of
the company.

Mr.Shaile
sh Shah

Mr.Shailesh Shah, the Chief

Promoter is a Chartered Accountant
by profession. The expertise of
Marketing & Finance consulting is
put to use in growth for the
company.

ORGANISATIONAL STRUCTURE:
An organizational structure defines how activities such as task allocation, coordination and supervision are
directed toward the achievement of organizational aims. It can also be considered as the viewing glass or
perspective through which individuals see their organization and its environment. An organization can be
structured in many different ways, depending on its objectives. The structure of an organization will determine
the modes in which it operates and performs. Organizational structure allows the expressed allocation of
responsibilities for different functions and processes to different entities such as the branch, department,
workgroup and individual.
Organizational structure affects organizational action in two big ways:
1. It provides the foundation on which standard operating procedures and routines rest.
2. It determines which individuals get to participate in which decision-making processes, and thus to what
extent their views shape the organizations actions.

COMPANY STRUCTURE

They Do Business with:

Work Culture

An organization is formed to achieve certain goals and objectives by bringing individuals together on a common
platform and motivating them to deliver their level best. It is essential for the employees to enjoy at the
workplace for them to develop a sense of loyalty towards it. Work culture plays an important role in extracting
the best out of employees and making them stick to the organization for a longer duration. The organization
must offer a positive ambience to the employees for them to concentrate on their work rather than interfering in
each others work. It influences performance of employees and their satisfaction level. It also controls an
employee's behavior at workplace.
Lightwave Trading Pvt. Ltd is an equal opportunity employer and provides a congenial and
professional work environment for all its employees, with great emphasis on teamwork. They stimulate
innovation, encourage calculated risk taking and accept mistakes as a part of the learning process.
They encourage experiential learning, and believe in clear delegation of authority and acceptance of
personal accountability. They value the involvement of our colleagues in bringing the best to our
organization in a spirit of understanding, trust and appreciation of cultural differences. They are open to
discussing alternative views and build on constructive feedback.
A personal culture emphasizes individual interests and developments, for example, solicitors practice or

a professional service.
Sharing the organization's mission, vision, guiding principles, and values;
Making sure the new employee meets with the company president and other key.
Employees so that they can communicate the culture and expectations.
Do mini-updates at 30, 60, and 90 days to see how the employee is doing.
Assigning a well-informed, thoughtful mentor or buddy who can teach the new employee
The company's culture and introduce the new employee to additional longer term employees.

The work culture of Lightwave Trading Pvt. Ltd is Customer and Performance Oriented. In Lightwave
Trading Pvt. Ltd the organization follows ethical approach and perform their business activity.

Attitude:
Our attitude and zeal towards work makes them unique amongst other players in the market. At Lightwave, we
adopt a flexible approach while catering to the needs of our clients. Our commitment to provide our clients with
the best service in the industry is the reason why we have been preferred for providing service in various
sectors, within a short span of time.

Enthusiasm:

The employees take great pride in being part of Lightwave Trading Pvt. Ltd. They build enthusiasm and
excitement for what we do by maintaining relationships. They take decisions at the right time and at the right
level and with a responsible attitude to risk.

Competitiveness:
They believe in developing an environment of healthy competition and growth. They constantly encourage
employees to expand their boundaries which indirectly help us move our company to greater heights.

Ambition:
They develop their people to achieve world class performance. They take the plans and strategies seriously and
ensures each plan of action is worked towards the goal of achieving excellence in results. They are constantly
striving to be foremost in terms of quality and innovation.

Performance Oriented:
They are honest about performance and measure ourselves against the highest standards of world class
companies. We take the required action when standards are not met and ensure that the team is dedicated to
meet the set standards.
We are focused on the things that matter most to our consumers and customers, and in doing so, we
continuously simplify our ways of working.

LIGHTWAVE

SWOT ANALYSIS

Strengths

Weakness

Goodwill in market

Talent Depth

Client Loyalty

Marketing efforts

Client Network
Price competitiveness
Strong Supplier base

Opportunity

Threat

MNCs mfg. in India

Global currency fluctuations

Rise in demand for Indian

Products
Currency devalue of INR- US$
Rising consumption in APAC &
ASEAN markets

They Do Business with the distributors of the following Companies:

LIGHTWAVE

PRODUCT CATEGORY:

Confectionery
Confectionery is also called sweets or candy is sweet food. The product list of Lightwave Trading Pvt.
Ltd includes Cadbury, Bounty chocolates, Hersheys, Nestle, Snickers, Galaxy chocolates, TWIX,
Kinder Joy.

Personal Care
Personal care includes products as diverse as toothbrush, toothpaste, mouthwash, hand wash, cleansing
pads, colognes, cotton swabs, cotton pads, deodorant, eye liner, facial tissue, hair clippers, lip gloss,
lipstick, lotion, makeup, nail files, pomade, perfumes, razors, shaving cream, moisturizer, talcum
powder, toilet paper, toothpaste, and wet wipes.

Household Essentials
The products under household essentials are detergents, toilet cleaner, washing powder, dish wash, floor
cleaner, laundry and all products required for household hygiene.

Baby Essentials
Baby oil, diapers, pant style diapers, powder, soaps, etc.
Ayurveda and Herbal Products
Hair oil like himgange, keo karpin, Ayur, shikakai shampoos, henna mehndi, etc.
Food and Beverages
Kelloggs, Lays, Quaker oats, chocolate bars, candys, chewing gum, coco powder, Milkshake powder,
Biscuits, energy drinks, aeriated drinks, etc.

Healthcare Products
EQUAL tablets and sachet, no mark dry skin, Sandal facewash, Neem facewash, scrubs, Medical soaps,
Cipla Lo-kal tablets, Acne gel, paper tape, cooling gel patch, general and waterproof bandages.

BRAND CATEGORY- FERRERO

INDIA

BRAND CATEGORY- Reckitt Benckiser

BRAND CATEGORY- Unilever

Homecare Products:
Cif, Comfort, Active Wheel, Domex, Rin, Surf Excel, Vim, Sunlight
Personal care Products:
Axe, Dove, Lifebuoy, Lux, Pepsodent, Pond's, Sun silk, Sure, Tresemme, Vaseline, Aviance, International
Breeze, Clear, Close up, Fair n Lovely, Lakme, Pears, TIGI, TONI&GUY, Clinic plus, Elle 18, Hamam, Ayush
Therapy, Liril, Rexona

BRAND CATEGORY-P&G

Homecare Products:
Ambipur, Ariel, Duracell, tide.
Personal Care Products:
Gillette, Head & Shoulders, Olay, Oral-b, Pampers, Pantene, Vicks, vella, Whisper.

BRAND CATEGORY- Other Brands

FUTURE PROSPECTS

Market entry into various geographies

Lightwave Trading Pvt. Ltd already export FMCG goods produced by the company HUL, P&G, Reckitt
Benckiser, etc. to the following countries - UAE, Hong Kong, Tanzania, Singapore, USA, Vietnam,

Indonesia. The company wants to expand their trade activities with the importers and distributors of
more countries like Maldives, New Zealand, Poland, Fiji Island, Myanmar, Netherlands, Mauritius. They
already export Kinder Joy products to China. Demand for Kinder joy products is very high in China.

Differentiated Product lines and extension

Lightwave trading Pvt. Ltd currently exports Confectionery, personal care, household essentials, baby
essentials, Ayurveda, Herbal products, Food and beverages and Healthcare products.
The company wants to extend and more products to the current product list. There is a huge demand for
Aggarbattis and Pooja materials in foreign country because of the Indian origin people staying in those
countries. So the company wants to export such new products to. Lightwave wants to manufacture
Innovative FMCG products in India like Lush bombs, Liquid Laundry, Tide PODS and tablet
detergents.

Cross Trade in APAC & ASEAN markets

APAC stands for Asia pacific and include India, Pakistan, Australia, South Korea, North Korea,
Malaysia, Mongolia, etc.
ASEAN stands for Association of Southeast Asian Nations and includes Indonesia, Laos, Malaysia,
Thailand, Vietnam, Philippines, etc.
Lighwaves future plans are to cross trade shipments from one country to other which falls under APAC
and ASEAN markets.

To diversify Portfolio and gain market share in existing countries of operations.

CHAPTER 2
Learning
Objectives

Learning Objectives

Following were my objectives for which the internship was done:

To gain an overall idea about industry/corporate exposure.

The main objective of an internship is to get exposed towards a particular job and a profession or
industry. We might have an idea about what a job is like but we dont know until we actually perform it.
Thus, the objective of this internship was to get exposure towards the job and to handle the work

pressure.
To get the experience of an office environment.

When you work in an office environment it gives a better edge or motivation. Team Unity exists in the
atmosphere. We get a chance to develop team work and leadership qualities. We get a knowledge

regarding work life and how to maintain balance between work life and professional life.
To increase my profile value.
Internship helps to increase the value of resume. When we do internship it not only helps to develop our
soft skills but it also increases the value on paper. It helps to create a good impact in job interviews or

for further studies.

To study the role of market research and marketing for development and expansion.
Business market research is the process of collecting data which helps in developing strategies and also
helps in decision making. With effective market research, company can gain invaluable information
about your competitors, economic shifts, demographics, the current market trends and the spending traits

of your customers.
To understand how the research work is done for marketing.
One of the important objective was to understand the work of research with respect to marketing. How
the data is collected, analyzed and used further for the purpose of marketing.

To build contacts and role of LinkedIn.

The benefit of an internship is developing business contacts. These people can help us to find a job later,
act as references or help me with projects after were hired somewhere else. It helps to create a
professional network on LinkedIn. We can ask them how they started their careers, how they got to
where they are now and if they have any suggestions for us to improve our skills.

To understand the importance of database for an export house.

Database, Big data, data mining, extraction- terms like this are trending on internet. So just to understand

how the database play an important role for an organization.

To correlate between the textbook knowledge [Classroom learnings] of management and

management applied in corporate.

To get a feeling about how various departments in an organization co-ordinate in a uniform

harmony and how they function.

To get an opportunity to develop good attitudes towards effective interpersonal relationships.
Internship provided me the opportunity to test my own interest in a marketing career before

permanent commitments are made.

The Internship helps to understand how companies integrate their work with respect to their
mission, vision and objectives.

CHAPTER 3
Internship
Details

ABOUT THE INTERNSHIP:

The selected intern(s) will work on following during the internship:

Explore the market and determine the potential leads.

Database Building.
Research.
Email Marketing.
Effective presentation and Catalog building.

Who Can Apply:

Candidate who are available for full time internship.

One who can start the internship immediately after selection.
Who are available for duration of 2 months (preferred, not mandatory).
Who are pursuing any degree but have relevant skills and interest (Marketing) Preferred.
Who are currently in third year of study or are recent graduates.

Other requirements:
Skill(s) required: MS-Office
Applicants must have a desire to learn new domain and explore greater opportunities
Applicants must be ready for extra, full time working hours and even work from home (when required).

OTHER RESPONSIBITY:

Investigating market activity.

Analyzing published data and statistics.
Evaluating past performance of a product or service's sales.
Assessing future trends.
Commissioning surveys.
Co-coordinating research projects.

SELECTION CRITERIA:

Energetic and Organized individual.

Good Computer skills and Internet knowledge.
Ability to work under team and individually.
Ability to dedicate 48 plus hours per week.

DESIGNATION: MARKET RESEARCH INTERN

I had worked as an intern at Lightwave Trading Pvt. Ltd. The period of the internship was from 25th March
2016 to 25th May 2016.

LITERATURE OVERVIEW:
Marketing Research Procedure can be defined as- The scientific systematically procedure that includes the
steps of problem definition, data collection, analysis and reporting of data and findings about certain issue if
problem face by that organization Kotler, et al (2007)
The significance of decision making of market strategy and marketing depends on the conclusions
derived from market research.
The procedure of market research varies from company to company but it has a series of steps to be
followed.
The standard market research procedure helps in the avoidance of errors, miss understanding and risk
of uncertainty.
The work and responsibilities that I was assigned to are as follows:

To make a country-wise list containing the information of the trading companies, exporters,

importers, distributors and suppliers.

To generate leads through data collection and research.
To study the profile of importers, distributors and trading company employees on LinkedIn and

schedule calling and meetings though in mails and emails.

To Assist Companys Marketing head in Making Business Strategies and Marketing Plans.
To make product list of FMCG companies like HUL, P&G, Reckitt, Himalaya, Nestle, Pepsi CO, etc.
To make country specific product list.
To make price list of the products and brand list.
To study the current trends w.r.t to innovation in personal care products and innovative packaging.
To make list of soap manufacturers and packaging companies in Mumbai.

To collect data of distributors from retailers.

To compare the prices of same product in different markets (countries).
To make product portfolio with proper description, pricing and packaging.
To make Product catalog presentations for marketing purpose.
To send emails to the distributors, importers, exporters and trading company and to design and

implement email marketing.

To enter the financial records of shipping along with the detail of importing company.
To make shipment list country wise and product wise.
To make list of business incubators, advertising agencies, consultancies, freight forwarders along with

their contact details and other required data.

To analyze the collected data and make decision accordingly.

DEPARTMENT: MARKETING

Under the curriculum of B.M.S (Bachelors of Management Studies), Mumbai University, Students were
given choice to select one specialization bracket (Marketing, Finance or Human Resource) and student under
respective specialization must do internship for a period of at least 20 days. As I opted for specialization in
Marketing in my curriculum I chose to take Marketing and Research department in Lightwave Trading Pvt.
Ltd. to gain practical knowledge of the classroom lectures.

TIMINGS: 10 AM- 6 PM

The office timings were from 10 AM to 6 PM with a lunch break of an hour from 1.30 PM to 2.30 PM.
However, sometimes we were made to wait after 6 PM to complete the work. We had to give report to Mr.
Monish Parikh regarding our research and other activities at the end of the office hours. Sometimes we were
given work which was to be done at home.

WORK RESPONSIBILITIES AND DUTIES:

1. The first work that I was assigned to at the start of my Internship was to prepare a list of Traders,
Distributors, Importers, Exporters, Suppliers and Trading company in United Kingdom. I was given a
Target of making a list of more than 50.

(UK DISTRIBUTOS/SUPPLIERS/IMPORTERS DATABASE)

2. The companys target was to build a database of traders, distributors, importer, exporters, etc. of more
than 20 countries and along with me 3 other interns were given this task. The work was distributed
among us. We were allotted to prepare the database for UK, Germany, Fiji Island, Australia, Hong Kong,
Philippines, South Africa, Netherlands, Vietnam, Pakistan, Italy, UAE, Sri Lanka, etc.
3. Once the database was build we were assigned to segregate the data collected and to make the master list
of it.

(CONSOLIDATED DISTRIBUTORS LIST 20+countries DATABASE)

4. We were then assigned to do research about the employees of trading and distributing companies on
LinkedIn. After a proper research on LinkedIn another list was made by us which improved the quality
of our database regarding the information of our prospective customers.

5. After making of this database strategies to contact them was made. Timing and scheduling of calling and
E-mails were decided. We were given the work of email marketing at this time. The mailing work was
distributed among us i.e. the interns. We were given mail templates and by making minor changes in the
templates we were told to send the mails to the contacts that were listed in our database. In this way
Leads were generated. Further negotiation and calling work was done by our Marketing and Sales Head
Mr. Monish Parikh.

6. Then I was assigned to do a research on innovative product and packaging in home care and personal
care products. I was told to go through Amazon.com i.e. The US site of the company amazon and take a
look at the whole range of products in the catalog. I was told to analyze the products that were in huge
demand.

7. Next assignment was to make do research on top FMCG companies, their existence in different countries
and their products. The purpose of this research was to get an idea regarding the manufacturing units of
the company and product portfolio of these companies across the globe in different countries.
8. After this research we were told to match the product available in India and other countries of all the top
FMCG companies like Unilever, P&G, Reckitt, etc. This was done to analyze the demand of product in
other countries, which were present in India.
9. The Next assignment was to enter the financial records of goods shipped along with the details of the
receiving company for the finance department of Lightwave Trading Pvt. Ltd.
10. The Next research work assigned to us was to make an excel report on the shipments from India. This
research was done in 3 stages: Country-wise, Product-wise & Shipment-wise.
11. After personal care & homecare the next product type was confectionery. Same procedure was followed
for this and the work was distributed among the interns. List was made according the products of
companies like Hersheys, Cadbury, etc.

12. We (Interns) were also told to go through the food exhibition sites to get more details.
13. The new assignment was allotted to us was to do a research and make list of Business Incubators,
Advertising agency, Freight forwarders, shipping agency, etc. Lightwave Trading Pvt. Ltd wants to
manufacture their own product (innovative) and sell it in domestic and foreign market. For this purpose,
this new work was allotted to us. Along with this we were even told to make a list of soap manufacturers
and packaging company list.

PROBLEMS FACED DURING THE INTERNSHIP:

It took some time for me to understand the work. It was really difficult for me to make keywords list at
the start of the internship. Using the keywords and getting perfect results was also a tough job.
Data mining and extraction was really tough. It took hours of web surfing and going through hundreds of
links.
Travelling was a real issue at the start of internship.
The work given was dull and mundane in nature.
During the work of building master list, it was really difficult to navigate through 4-5 tabs and figure out
the required data.
Sitting in front of laptop screen for 6+ hours was really a tough job to perform.

 New Lifestyle As a graduation student I was used to getting up late in the morning and then attend few
lectures in college. But during internship it was a complete new lifestyle i.e. getting up early in the
morning and working 10-6. It made life even more difficult.
Once we were given some work to perform by our head but there was a miscommunication between the
head and the office staff so all our progress of that assignment became unnecessary.
I was afraid to ask questions regarding the work given to me during the start period of my internship.
I was assigned to do a research on innovative and new type of products. Viewing the whole product
catalog of amazon.com, reading the product details of the whole catalog was a tough work to perform.

ACHIEVEMENTS:
The key achievements i have gained during my Internship are knowledge and experience gained in the
workplace. My job experience has given me a range of skills. These include:

A thorough knowledge of product ranges and detailed understanding of target markets.

A strong commitment to effective time management.
Communication and interpersonal skills.
Ability to work for long hours and even under pressure.
Experience of teamwork and development of interpersonal skills.
Gained a thorough knowledge and understanding of Market Research activities.
Learned and developed mailing campaigns techniques.
A good exposure towards working and corporate lifestyle.
Human skills- Learned human skills in a real manner. Human skills associated with employees ability

to work as a member of group as well as individually.

Co-ordination, stress management and self-control.

SHORTCOMINGS:

Lack of experience.
No practical knowledge of research work.
Very less time was dedicated for training.
No perks, no rewards for completing the task.
Very limited type of work was given and most of them were ground work and less challenging.

CHAPTER 4
OTHER
DEPARTMENTS

Department Details

CEO

Finance

Sales&Mark

Operations

Packing Credit line

Business

Shipping & logistics

Purchase bills

Product research

Goods clearance

Foreign exchange
remittance

Debit & credit

Freight forwarding

Warehouse
management

FINANCE DEPARTMENT:
The Finance Department of Lightwave trading Pvt. Ltd makes payments, process incoming payments, oversee
payroll, filling of bills, etc.
The main 4 functions are to maintain the data of the following transactions:
1.
2.
3.
4.

Packing Credit Line.

Purchase Bills.
Foreign Exchange Remittance.
Debit and Credit Notes.

Packing Credit Line:

The packing credit line employee under finance department maintains all the data regarding the credit provided
by the bank to the export house for the purpose of packing before the shipments are exported. RBIs slogan
about packing credit NO EXPORT ORDER SHOULD SUFFER FOR WANT OF FINANCE I
personally believe this quote says all about the purpose of Packing Credit finance to Exporters. The basic
purpose of Packing Credit Finance is to enable the exporter to procure, process, manufacture or store the goods
for export. Packing credit refers to the credit granted by bank to an exporter to enable him to pack the goods.
This is short-term working capital advance.
Purchase Bills:
The employees under this department maintains the data of purchase order. A purchase order is a legally binding
document between a supplier and a buyer. It details the items the buyer agrees to purchase at a certain price
point. It also outlines the delivery date and terms of payment for the buyer. Purchase order computer systems
have made the purchasing process more efficient and allow for better inventory and payment tracking. Purchase
orders are typically used when a buyer wants to purchase supplies or inventory on account. This means the
supplier delivers or ships the purchased items prior to payment, with the purchase order serving as its risk
protection. Along with legal protection, purchase orders are significant in both inventory management and
payment tracking.
Foreign Exchange Remittance:
The finance department also manages the foreign exchange remittance i.e. the money that comes from the
foreign party payment after the shipments are exported. A transfer of money from foreign company to the host

country company or other individuals in their home countries. In many countries, remittance constitutes a
significant portion of the GDP (up to a third in some cases). The United States is the leading source of foreign
remittances, followed by Russia and Saudi Arabia. The top recipients are India, China and the Philippines. So
much money is being remitted, the G8 and the World Bank are attempting to monitor and regulate remittance
costs.
Debit and Credit Notes:
Debit Note is a document which reflects that a debit is made to the other party's account and Credit Note is an
instrument used to inform that the other party's account is credited in his books.

SALES & MARKETING DEPARTMENT:

The marketing department has overall responsibility for growing revenue, increasing market share and
contributing to company growth and profitability.
Market Research
Market research is a key responsibility for the marketing department. Research helps the company identify
market opportunities and gain a better understanding of customer needs.
The department carry out its own research by studying industry reports, market data on websites, or by
contacting customers and prospects to survey their needs and attitudes.
The main function of Marketing Department of Lightwave Trading Pvt. Ltd are:
1. Business Development.
2. Product Research.
Business Development:
The Employees under this department performs the activities which helps the organization to grow and increase
profit. Long term growth strategies are developed. This department performs the activities like doing research
on internet and building a database of suppliers, importers, exporters, traders, distributors, etc. They also
perform the function like calling, generating leads and fixing meeting overseas.
Product Research:

The employees under this department is playing very important role in the context of expansion. The head visits
various exhibitions taking place in different countries to know about different products. Research work is also
done on internet regarding unique and attractive products and packaging.

OPERATIONS DEPARTMENT:
An operations department is responsible for running your business successfully. It has the ultimate
accountability for profit and loss, and seeks to maximize return on investment. The members of this department
are ultimately responsible for the success of your business, and as such, maintain considerable power in your
company. While the operations department is responsible for the bottom line, it also oversees the other
departments in your organization, as well as the development of your employees and customers.
The Operations Department of Lightwave Trading Pvt. Ltd performs the following 4 main functions and
they are as follows:
1. Shipping & Logistics.
2. Goods Clearance.
3. Freight Forwarding.
4. Warehouse Management.

Shipping & Logistics:

The shipping and logistics team at Lightwave Trading Pvt. Ltd perform the work of handling and
deciding the mode shipping the container.
They make thee note regarding the number of cartons or number of packs of product per carton, size of
the carton and other takes care of other legal work.
They also collect invoices and bills at the dock. They also take care of documents requirement,
packaging the shipments, labelling, samples and gifts.
The handling of transportation is similar for domestic orders and export orders. The export marks should be
added to the standard information shown on a domestic bill of lading and should show the name of the exporting
carrier and the latest allowed arrival date at the port of export. The exporter should also include instructions for
the inland carrier to notify the international freight forwarder by telephone on arrival. International shipments
are increasingly being made on a through bill of lading under a multimodal contract. The multimodal transport
operator takes charge of and responsibility for the entire movement from factory to the final destination.
Goods Clearance:

Customs clearance work involves preparation and submission of documentations required to facilitate export or
imports into the country, representing client during customs examination, assessment, payment of duty and co
taking delivery of cargo from customs after clearance along with documents.
Some of the documents involved in customs clearance are:
1. Exports Documentation: Purchase order from Buyer, Sales Invoice, Packing List, Shipping bill, Bill of
Lading or air way bill, Certificate of Origin and any other specific documentation as specified by the buyer, or
as required by financial institutions or LC terms or as per importing country regulations.
2. Imports Documentation: Purchase Order from Buyer, Sales Invoice of supplier, Bill of Entry, Bill of Lading
or Air way bill, Packing List, Certificate of Origin, and any other specific documentation required by the buyer,
or financial institution or the importing country regulation.
Every port in every country around the world puts your cargo through a customs clearance process.

Freight Forwarders:
The international freight forwarder acts as an agent for the exporter in moving cargo to the overseas destination.
These agents are familiar with the import rules and regulations of foreign countries, methods of shipping,
government export regulations, and the documents connected with foreign trade. Freight forwarders can assist
with an order from the start by advising the exporter of the freight costs, port charges, consular fees, cost of
special documentation, and insurance costs as well as their handling fees - all of which help in preparing price
quotations. Freight forwarders may also recommend the type of packing for best protecting the merchandise in
transit; they can arrange to have the merchandise packed at the port or containerized. The cost for their services
is a legitimate export cost that should be figured into the price charged to the customer. When the order is ready
to ship, freight forwarders should be able to review the letter of credit, commercial invoices, packing list, and so
on to ensure that everything is in order. They can also reserve the necessary space on board an ocean vessel, if
the exporter desires. The Operations department also look over all these activities.
Warehouse Management:
A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers,
exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial
areas of cities, towns and villages. They usually have loading docks to load and unload goods from trucks.
Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or
seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard

pallets loaded into pallet racks. Stored goods can include any raw materials, packing materials, spare parts,
components, or finished goods associated with agriculture, manufacturing and production.

BUSINESS PROCESS:
Indias Foreign Trade i.e. Exports and Imports are regulated by Foreign Trade Policy notified by Central
government in exercise of powers conferred by section 5 of foreign trade (Development and Regulation) Act
1992. Presently Foreign Trade Policy 2015-20 is effective from 1st April, 2015. As per FTD & R act, export is
defined as an act of taking out of India any goods by land, sea or air and with proper transaction of money.
Export in itself is a very wide concept and lot of preparations is required by an exporter before starting an export
business. To start export business, the following steps may be followed:

1) Establishing an Organization:
To start the export business, first a sole Proprietary concern/ Partnership firm/Company has to be set up as per
procedure with an attractive name and logo.

2) Opening a Bank Account

A current account with a Bank authorized to deal in Foreign Exchange should be opened.
3) Obtaining Permanent Account Number (PAN)
It is necessary for every exporter and importer to obtain a PAN from the Income Tax Department. (To apply
PAN Card Click Here)

4) Obtaining Importer-Exporter Code (IEC) Number

An IEC is a 10-digit number which is mandatory for undertaking export/ import. Application for obtaining IEC
Number can be submitted to Regional authority of DGFT in form ANF 2A along with the documents listed
therein.
Applicants can also apply for e-IEC on the DGFT website (http://dgft.gov.in/). Only one IEC can be obtained
against a single PAN.
5) Registration cum membership certificate (RCMC)
For availing authorization to import/ export or any other benefit or concession under FTP 2015-20, as also to
avail the services/ guidance, exporters are required to obtain RCMC granted by the concerned Export Promotion
Councils/ FIEO/Commodity Boards/ Authorities.
6) Selection of product
All items are freely exportable except few items appearing in prohibited/ restricted list.
After studying the trends of export of different products from India proper selection of the product(s) to be
exported may be made.
7) Selection of Markets
An overseas market should be selected after research covering market size, competition, quality requirements,
payment terms etc. Exporters can also evaluate the markets based on the export benefits available for few

countries under the FTP. Export promotion agencies, Indian Missions abroad, colleagues, friends, and relatives
might be helpful in gathering information.

8) Finding Buyers
Participation in trade fairs, buyer seller meets, exhibitions, B2B portals, web browsing are an effective tool to
find buyers. EPCs, Indian Missions abroad, overseas chambers of commerce can also be helpful. Creating
multilingual Website with product catalogue, price, payment terms and other related information would also
help.

9) Sampling
Providing customized samples as per the demands of Foreign buyers help in getting export orders. As per FTP
2015-2020, exports of bonafide trade and technical samples of freely exportable items shall be allowed without
any limit.
10) Pricing/Costing
Product pricing is crucial in getting buyers attention and promoting sales in view of international competition.
The price should be worked out taking into consideration all expenses from sampling to realization of export
proceeds on the basis of terms of sale i.e. Free on Board (FOB), Cost, Insurance & Freight (CIF), Cost &
Freight(C&F), etc. Goal of establishing export costing should be to sell maximum quantity at competitive price
with maximum profit margin. Preparing an export costing sheet for every export product is advisable.
11) Negotiation with Buyers
After determining the buyers interest in the product, future prospects and continuity in business, demand for
giving reasonable allowance/discount in price may be considered.
12) Covering Risks through ECGC
International trade involves payment risks due to buyer/ Country insolvency. These risks can be covered by an
appropriate Policy from Export Credit Guarantee Corporation Ltd (ECGC). Where the buyer is placing order

without making advance payment or opening letter of Credit, it is advisable to procure credit limit on the foreign
buyer from ECGC to protect against risk of non-payment. (To know more about ECGC Click Here)

Processing an Export Order

i. Confirmation of order
On receiving an export order, it should be examined carefully in respect of items, specification, payment
conditions, packaging, delivery schedule, etc. and then the order should be confirmed. Accordingly, the exporter
may enter into a formal contract with the overseas buyer.
ii. Procurement of Goods
After confirmation of the export order, immediate steps may be taken for procurement/manufacture of the goods
meant for export. It should be remembered that the order has been obtained with much efforts and competition
so the procurement should also be strictly as per buyers requirement.
iii. Quality Control
In todays competitive era, it is important to be strict quality conscious about the export goods. Some products
like food and agriculture, fishery, certain chemicals, etc. are subject to compulsory pre-shipment inspection.
Foreign buyers may also lay down their own standards/specifications and insist upon inspection by their own
nominated agencies. Maintaining high quality is necessary to sustain in export business.
iv. Finance
Exporters are eligible to obtain pre-shipment and post-shipment finance from Commercial Banks at
concessional interest rates to complete the export transaction. Packing Credit advance in pre-shipment stage is
granted to new exporters against lodgment of L/C or confirmed order for 180 days to meet working capital
requirements for purchase of raw material/finished goods, labour expenses, packing, transporting, etc.
Normally Banks give 75% to 90% advances of the value of the order keeping the balance as margin. Banks
adjust the packing credit advance from the proceeds of export bills negotiated, purchased or discounted.Post
Shipment finance is given to exporters normally upto 90% of the Invoice value for normal transit period and in

cases of usance export bills upto notional due date. The maximum period for post-shipment advances is 180
days from the date of shipment. Advances granted by Banks are adjusted by realization of the sale proceeds of
the export bills. In case export bill becomes overdue Banks will charge commercial lending rate of interest.
v. Labeling, Packaging, Packing and Marking
The export goods should be labeled, packaged and packed strictly as per the buyers specific instructions. Good
packaging delivers and presents the goods in top condition and in attractive way. Similarly, good packing helps
easy handling, maximum loading, reducing shipping costs and to ensuring safety and standard of the cargo.
Marking such as address, package number, port and place of destination, weight, handling instructions, etc.
provides identification and information of cargo packed.
vi. Insurance
Marine insurance policy covers risks of loss or damage to the goods during the while the goods are in transit .
Generally, in CIF contract the exporters arrange the insurance whereas for C&F and FOB contract the buyers
obtain insurance policy.
vii. Delivery
It is important feature of export and the exporter must adhere the delivery schedule. Planning should be there to
let nothing stand in the way of fast and efficient delivery.
viii. Customs Procedures
It is necessary to obtain PAN based Business Identification Number (BIN) from the Customs prior to filing of
shipping bill for clearance of export good and open a current account in the designated bank for crediting of any
drawback amount and the same has to be registered on the system.
In case of Non-EDI, the shipping bills or bills of export are required to be filled in the format as prescribed in
the Shipping Bill and Bill of Export (Form) regulations, 1991. An exporter need to apply different forms of
shipping bill/ bill of export for export of duty free goods, export of dutiable goods and export under drawback
etc.
ix. Customs House Agents

Exporters may avail services of Customs House Agents licensed by the Commissioner of Customs. They are
professionals and facilitate work connected with clearance of cargo from Customs.
x. Documentation
FTP 2015-2020 describe the following mandatory documents for import and export.

Bill of Lading/ Airway bill

Commercial invoice cum packing list

shipping bill/ bill of export/ bill of entry (for imports)

xi. Submission of documents to Bank

After shipment, it is obligatory to present the documents to the Bank within 21 days for onward dispatch to the
foreign Bank for arranging payment. Documents should be drawn under Collection/Purchase/Negotiation under
L/C as the case may be, along with the following documents
-

Bill of Exchange

Letter of Credit (if shipment is under L/C)

Invoice

Packing List

Airway Bill/Bill of Lading

Declaration under Foreign Exchange

Certificate of Origin/GSP

Inspection Certificate, wherever necessary

Any other document as required in the L/C or by the buyer or statutorily.

xii. Realization of Export Proceeds

As per FTP 2015-2020, all export contracts and invoices shall be denominated either in freely convertible
currency of Indian rupees, but export proceeds should be realized in freely convertible currency except for
export to Iran. Export proceeds should be realized in 9 months.

CHAPTER 5