Export of Grey Cotton

By Jitendra Kumar Jain

toSingapore

Date : 23-09-09 MIBS, Pune

Synopsis

About Singapore

• Singapore was founded as a British trading colony in 1819

• Population: 4,608,595 (July 2003 est.) • Official Languages :

English (main)Malay (national)ChineseTamil

HDI (2008): 0.918 (high) (28th) • Ethnic Groups:

• Chinese 76.7%, Malay 14%, Indian 7.9%, other 1.4%

Foreign relations

• diplomatic relations with 175 countries • does not maintain a high commission or embassy in

many of those countries • Singapore supports the concept of

Southeast Asian regionalism and plays an active role in the Association of Southeast Asian Nations (ASEAN), of which Singapore is a founding member.

• Dispute with Malaysia– Water– Air Route– Mutual Maritime boundaries

Free Trade Agreements

Singapore has 14 bilateral and multilateral trade agreements worldwide:• Association of Southeast Asian Nations Free Trade Area (AFTA)• ASEAN-China• ASEAN-Korea (AKFTA)• Australia

• India• European Free Trade Association (EFTA: Iceland, Liechtenstein, Norway and Switzerland)• Jordan (SJFTA)• Japan (JSEPA)• New Zealand (ANZSCEP)• Panama (PSFTA)• Peru• South Korea (KSFTA)• Trans-Pacific Strategic Economic Partnership Agreement

(Trans-Pacific SEP: Brunei, New Zealand, Chile, Singapore)• United States (USSFTA)

Export Value of Goods in INR Crores

Indian Exports

SWOT Analysis

Strengths• Patents of textile goods.• Strong brand names for most of the products.• Good reputation of the firm among customers.• Cost advantages from proprietary know-how.• Exclusive access to high grade natural resources.• Favorable access to distribution networks.

Weaknesses

• Processing time is long for textile goods.• Lack of market protection.• High cost structure.• Lack of access to the best natural resources.• Tough to create brand name.

Opportunities

• Huge and potential Market• Arrival of new technologies.• Removal of international trade barriers.• Increasing needs and changing consumer

behaviour.• Loosening of regulations.

Threats

• Shifts in consumer tastes away from the firm's products.

• Emergence of substitute products.• New regulations introduced.• New entrants in market.• Increasing width of existing market.

INDIAN TEXTILE INDUSTRY

One of the oldest Consists of sector such as1. Hand spinning and hand weaving2. Power loom3. Knitting4. Highly sophisticated millsTextile sector as such contributes• About 4% to the gross domestic product• About 14% to the total industrial production• About 17% of the gross export• About 20% of the work force/employment

INDIAN TEXTILE INDUSTRY

In Indian textiles cotton dominates.• About 60% of the fibre used is cotton.• About 70% of the spun yarn produced is 100% cotton yarn.• About 18% of the spun yarn has cotton as one component.In exports• More than 50% of the export earnings come from garments which are almost entirely made up from cotton fabrics.• Of the 243 lakh bales produced during 2005-06 season, 46 lakh bales have been exported.• Of the 270 lakh bales and above production expected during present season, more than 50 lakh bales are likely to be exported.

Export Documents• Shipping Bill / Bill of Export • Customs Declaration Form • Dispatch Note • Commercial invoice • Consular Invoice • Customs Invoice • Legalised / Visaed Invoice • Certified Invoice • Packing List • Certificate of Inspection • Shut Out Advice

•Black List Certificate •Manufacturer's Certificate •Certificate of Chemical Analysis •Certificate of Shipment •Health/ Veterinary/ Sanitary Certification •Certificate of Conditioning •Antiquity Measurement •Shipping Order •Cart/ Lorry Ticket •Short Shipment Form

PESTEL analysis

POLITICAL ANALYSIS• People’s Action Party (PAP) which has dominate

d Singaporen politics since 1959 and shows no signs dimnish out of politics.

• PAP holds 82 of 84 elected seats in parliament.• OTHER POLITICAL PARTIES ARE:- • 1 Singapore Democratic Alliance or SDA [CHIAM See

Tong]; • 2 Singapore Democratic Party or SDP [CHEE Soon Juan]; • 3 Workers' Party or WP [Sylvia LIM Swee Lian]

ECONOMIC ANALYSIS• Highly developed and successful free-market economy.

• IEnjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP equal to that of the four largest West European countries.

• Economy depends heavily on exports, particularly in consumer electronics and information technology products.

• Major hub for transshipments within South East Asia • Busiest port in the world in terms of tonnage shipped• Singapore is the world's fourth largest foreign exchange trading

centre

• GDP (purchasing power parity):$228.1 billion (2007 est.)

• Reserves of foreign exchange and gold:$163 billion (31 Dec 2007 est.)

Social Analysis• Ethnic groups:

Chinese 76.8%, Malay 13.9%, Indian 7.9%, other 1.4% (2000 census)

• Religions:Buddhist 42.5%, Muslim 14.9%, Taoist 8.5%, Hindu 4%, Catholic 4.8%, other Christian 9.8%, other 0.7%, none 14.8% (2000 census)

• Languages:Mandarin 35%, English 23%, Malay 14.1%, Hokkien 11.4%, Cantonese 5.7%, Teochew 4.9%, Tamil 3.2%, other Chinese dialects 1.8%, other 0.9% (2000 census)

TECHNOLOGICAL ANALYSIS• Singapore aims to be the hub of knowledge based

industry. • whole island through fiber optic cables.• Services within the IT industry

include: Internet applications including ecommerce, software development and applications; networking systems

• (LAN/WAN products); and IT training • and education. it has more than • 1.8 million mobile users. Internet subscribers stand at

1.7 million. 42% of homes in Singapore have • internet access.

Literacy Definition: age 15 and over can read and write

Total literated population: 92.5%

Male: 96.6% Female: 88.6% (2000 census)

Population: 4,853,009 (July 2008 estimated).

Adult Literacy: 92.5%

Singaporeans place a lot of importance on relationship building.

ENVIRONMENTAL ANALYSIS

Climate:• Tropical: hot, humid, rainy• Two distinct monsoon seasons - Northeastern

monsoon (December to March) and Southwestern monsoon (June to September);

Land use:• arable land: 1.47% • permanent crops: 1.47% • other: 97.06% (2005)