Case Study
International Business - Foreign Trade
M/S Taneja Exports, Mumbai
Introduction
Mr. Gurmeet Taneja and Mr. Rahul Khatri are partners of M/S Taneja exports, Mumbai. Both of them qualified from IIFT, New Delhi in the year 2002. They declined lucrative corporate job offers, since they have decided to plunge into the world of international business. M/S Taneja Exports is registered as a partnership firm, with Mr. Gurmeet Taneja and Mr.Rahul Khatri sharing the profits in the ratio of 60: 40. The partners had conducted in depth market survey in the domestic as well as international markets regarding the demand of women’s apparels in cotton and hosiery. They have taken the assistance of Apparel export promotion council and the marketing agencies in various countries of European Union. On account of their knowledge in foreign trade, they were able to quickly assess that Indian exporters have not succeeded in penetrating into the huge apparel market of Europe. They found out that the main reasons were ineffective marketing, improper quality control and non adherence to the shipping schedules. Mr. Gurmeet concentrated on marketing of the cotton and hosiery apparels abroad and Mr. Rahul ensured on the procurement of the raw materials and timely execution of shipments.
The firm had taken an industrial gala, measuring 700 sq ft, at 501, Mangal Das market, Lower Parel, Mumbai. They were paying a monthly rent of Rs. 35,000/- for the office premises and the stock of garments was kept in a godown in the same gala area, for which the rent payable was Rs. 15,000/- pm. The firm was sourcing their raw materials from the south Indian towns of Tirupur and
Coimbatore. As per the export orders, they were providing the raw materials for job works in Mumbai and subject the samples to rigorous quality and specification checks. The firm had employed 2 accounts staff and 3 contract workers to attend to daily office and godown activities. The firm was able to
M/S Taneja Exports, Mumbai
Introduction
Mr. Gurmeet Taneja and Mr. Rahul Khatri are partners of M/S Taneja exports, Mumbai. Both of them qualified from IIFT, New Delhi in the year 2002. They declined lucrative corporate job offers, since they have decided to plunge into the world of international business. M/S Taneja Exports is registered as a partnership firm, with Mr. Gurmeet Taneja and Mr.Rahul Khatri sharing the profits in the ratio of 60: 40. The partners had conducted in depth market survey in the domestic as well as international markets regarding the demand of women’s apparels in cotton and hosiery. They have taken the assistance of Apparel export promotion council and the marketing agencies in various countries of European Union. On account of their knowledge in foreign trade, they were able to quickly assess that Indian exporters have not succeeded in penetrating into the huge apparel market of Europe. They found out that the main reasons were ineffective marketing, improper quality control and non adherence to the shipping schedules. Mr. Gurmeet concentrated on marketing of the cotton and hosiery apparels abroad and Mr. Rahul ensured on the procurement of the raw materials and timely execution of shipments.
The firm had taken an industrial gala, measuring 700 sq ft, at 501, Mangal Das market, Lower Parel, Mumbai. They were paying a monthly rent of Rs. 35,000/- for the office premises and the stock of garments was kept in a godown in the same gala area, for which the rent payable was Rs. 15,000/- pm. The firm was sourcing their raw materials from the south Indian towns of Tirupur and
Coimbatore. As per the export orders, they were providing the raw materials for job works in Mumbai and subject the samples to rigorous quality and specification checks. The firm had employed 2 accounts staff and 3 contract workers to attend to daily office and godown activities. The firm was able to