Antariksh Yarn Pvt. Ltd.

1. Executive Summary
Sona Cotsyn Pvt. LTD. is the supplier of Yarns from India & has been exporting world
class quality to various countries across the globe. Further, the clients can avail Cotton
Yarn, Cotton and Cotton Waste at market leading prices.

Vision
Our visionary business approach as well as dedicated support provided by our
experienced industry professionals has also assisted us in ensuring only quality products
are offered to our customers.

Target Market
Currently Sona Cotsyn has existing business in Pakistan, China, Italy and Peru.

Marketing
Product Range- 1. Ring Spun
2. Open end
Pricing- Use cost based pricing strategy to make procurement decisions.
Use Differential pricing strategies to sell in the different foreign markets
Distribution - Sona Cotsyn is a Merchant exporter company which provides export
facilities to the manufacturers in India . They are a medium for indirect exporting
Channel for small manufacturers.
Promotion 1. Online portals Textile 2. Councils Chambers 3. Trade fairs and
exhibitions

Personnel - In-house workers/employees at the firm include the following:

1.
2.
3.

Accounting
Administration and Office
Marketing

Note- The inspection staff is not in-house.

Operations - The office of Sona Cotsynis located at Kharghar with monthly rent of Rs
30,000 (i.e Rs 30 x 1000 sq ft). The monthly charges of utilities are Rs 5000 approx.

Financials- The company has been trying to achieve best stipulated growth with which
the textile industry is moving. We started with the meager capital of 3cr the company
has grown manifold

2. Business History
2.1 History of the company
Antariksh Yarn will be established in the year 2015 with a view to export best quality
cotton yarn. We are a professionally managed, progressive and growth oriented
company involved in exporting of Cotton Yarn with 40000 spindles and open-end yarn
with 2000 rotors. Antariksh Yarn is a leading exporter of Cotton yarn. This is in line with
the latest trends and are highly appreciated for their quality standards.
We are committed to meet the expectations of our customers. Through our well
designed and established service delivery system that is sensitive and
accommodative to continuous technology upgradation and value analysis. We
continuously strive to improve the effectiveness of our quality system.
We are continuously striving to grow by expanding the market base and by introducing
the best quality cotton fiber and yarn and by setting up high standards for the industry.
This will not only uplift consumer satisfaction level to a next level but will also give a
quality product in the market at competitive rates along in addition to prompt services
prompt services.
Our Philosophy
AYPL possesses strengths and expertise to deliver finest quality and large quantity of
Grey cotton yarn. Having grown from strength to strength, today, we have gained wide
recognition for impeccable quality, cost effective and prompt delivery schedule. Having
created a special place for us in the international markets, we have been supplying our
high quality products to different countries.
Passion
With customer satisfaction being of high importance to us and our uncompromising
endeavor towards quality & perfection has helped us to achieve success. Further, with
our cost effective approach & progressive vision, we are able to towards delivering our
clients, products in conformation with international standards.
Mission
a. To deliver best of the products along with quality services.
b. Follow world class manufacturing practice.
c. Strive for excellence in the products and services we provide.

2.2 Products Offered

Items

No. of counts

Applications

Carded

Ne 20 to Ne 40

Weaving and Knitting

Combed

Ne 20 to Ne 40

Weaving and Knitting

Open End

Ne 6 to Ne 21

Weaving and Knitting

Cotton Yarn is of two types:

a. Ring Spun
b. Open End
Cotton is prepared in three ways for spinning
a. Carded Cotton
b. Combed Cotton
c. Combed Carded Cotton
Regular cotton is made from soft vegetable fiber, obtained from the seedpod of the
cotton plant that is made into strands of fiber. These strands of cotton fiber are twisted
together to make yarn that is then woven together to make a section of material. This is
the type of cotton you would normally get when you see a piece of apparel that says
something like 100% cotton or 60% cotton. A slightly different process is used to create
Ring-spun cotton. It starts with the same cotton fiber strands but in the Ring-spun
process the yarn is made by continuously twisting and thinning the strands making a
very fine rope of cotton fibers. The twisting makes the short hairs of cotton stand out,
resulting in a stronger yarn with a significantly softer hand.
The number of times you twist the fiber, it determines how soft it is. There is a
particular way to denote each yarn, for example, if it is written as Ne 30, it indicates the
diameter of a yarn. The smaller the number, the thicker the yarn. The higher the
number the thinner the yarn and the softer because it has been twisted more times.
And softer the yarn, the better is the quality.
Ring-spun vs. Regular Cotton: If we take a certain amount of cotton fiber and create a
basic cotton material and then take that same amount of cotton fiber and create it
under the Ring-spun process, because of the twisting and thinning the Ring-spun cotton
would be a lighter weight than the regular cotton. Therefore, even though a 100%
(basic) cotton t-shirt may be heavier than a 100% Ring-spun cotton t-shirt, the lighter
weight Ring-spun t-shirt will be more durable a lot softer than the basic cotton t-shirt.
Ring Spun yarn is mainly used for fine quality bedsheets, shirts, trousers etc.
Open End Yarn is a low quality-low strength cotton constituting 80-90% waste cotton
known as Comber Noil cotton. Even though Open End cotton yarn is considered as 100%

cotton it is still of low quality and has less strength. For manufacturing open end cotton
yarn, comber noil cotton is mixed with pure cotton to increase the strength of the yarn.
The production rates of rotor spinning is 6-8 times higher than that of ring spinning. The
rotor spun yarn are even but somewhat weaker and harsher that ring spun yarn. Open
End Yarn is cheaper to produce. Open End yarn is mainly produced to maximum count
of Ne 30.
Open End yarn helps in creating a thick fabric is mainly used for bath robes, towels,
denims, blankets, t-shirts etc.

2.3 Competitor Analysis

1. Lahoti Overseas Pvt. Ltd.: Lahoti Overseas was established in 1990 with a vision to
export quality Cotton Yarns from India's leading spinning mills. Starting with Open
End yarns, today, the company's range covers a wide variety of Cotton Yarns
including carded & combed ring spun yarns of coarse & fine counts, ply yarns and
special yarns. Overwhelming demands from the markets motivated the company to
invest in procuring fabrics and raw cotton. The company is synonymous as a reliable
one-stop shop for yarns, fabrics and cotton. The company serves markets across the
world and is poised for further growth ahead under the able leadership of
professional management.

2. Kikani Export: Kikani Exports was established in the year 2001 in Coimbatore. They
export high quality 100% cotton yarns, 100% synthetic and blended spun yarns,
greige fabrics, home furnishing, garments from India's leading textile mills. They are
highly trusted by hi-end customers for consistent deliveries, quality competence and
price appropriateness, the company enjoys the confidence of a large client base it
has established over decades of expert trading in the international arena. Currently
they source yarn from 130- odd sellers and export the entire volume to 30 different
countries.

3. Kayavlon Impex Pvt. Ltd.: It is one of the leading government recognized star
export house based in India, in the field of Textiles and Agro Products, established in
the year 1990. Kayavlon Impex has established offices in Bangladesh, China, Vietnam
& Singapore. Kayavlon Impex Pvt. Ltd. is determined to give the best quality service
to its esteemed buyers from all over the world & satisfy their needs for all their
requirements for all types of Yarns & Fibers and Agro Products. Kayavlon Impex is a
leading supplier of cotton yarn in India & has been exporting world class quality to
various countries across the globe creating its demand for quality products in
Europe, Asia, Africa and America. Cotton is a natural soft staple fiber growing on
cotton plant.

3. Market Research
Indian spun yarn industry is the worlds second-largest spinning industry, having an
installed capacity of nearly 50 million spindles as on March 31, 2015, and currently
producing over 6,600 million kg of spun yarn annually of which nearly 4,000 million kg is
cotton yarn (approximately 61% of the total yarn production). Over the past 4 years
ended FY15, the Indian cotton yarn production has risen steadily except in the year FY12
(due to lower availability of raw cotton). The growth in production was largely due to
improvement in capacity utilization of the existing spinning units along with addition of
new capacities aided by high growth in exports sales where the exports volumes have
grown by 11%, 42% and 20% in FY12, FY13 and FY14, respectively. India exports around
30- 35% of its total cotton yarn production. The growing export volumes of yarn and
improving average sales realization aided by rupee depreciation have led to
improvement in credit profile of many domestic cotton spinning units in recent past.

Cotton Production Country Wise (2015-2016)

After conducting proper research Antariksh Yarn has decided to export to the following
countries, namely, China, Pakistan, Peru and Italy.

Target Countries
Primary Markets
China
Pakistan

Secondary markets
Italy
Peru

Tertiary markets
USA

Cotton Yarn Export from India to target countries

Rank

Country

Value
in US
million
dollar
(20132014)

Value
in US
million
dollar
(20152016)
1475.49

%
share
(20132014)

%
share
(20142015)

%
share
(20152016)

%change
(2015-2016)

1908.07

Value
in US
million
dollar
(20142015)
1516.99

China

41.89

38.52

40.87

-2.74

Pakistan

118.75

90.37

131.69

2.61

2.29

3.65

45.72

Peru

110.83

119.77

86.65

2.43

3.04

2.40

27.65

11

Italy

64.50

56.20

51.31

1.42

1.43

1.42

-8.69

Source: Ministry of Commerce

3.1 China

Source: Center of Monitoring Indian Economy

Market Size
China is leading producer of cotton and China is also the number one supplier of textiles
and apparel. Hence, China is also number one importer of cotton yarn from India. China
is also the fourth largest market for U.S. exports of textiles and apparel in 2015,
representing 4.4 percent of total exports.
Threats
But in past few years, Chinas textile industry is experiencing declining growth. China
attributes this to
Decrease in industry growth and declining overseas orders
Increasing labor costs have to some extent undermined the international
competitive advantage of the Chinese textile industry. This has led to the growth
of textile and apparel exports in other Asian countries.
Along with all these factors, during April 2014, the Chinese government ended its
3-year-long programme to stockpile raw cotton to support local growers and is
instead, offering subsidies directly to the farmers. As a consequence of the
Chinese governments policy to offload its reserve stock of cotton, the Chinese
spinning mills have got access to cheaper cotton from the local market and the
same has reduced their dependence on imports. As a result, the export of cotton
and cotton yarn to China took a significant hit in FY15.

Declining exports of cotton yarn to China have worsened the oversupply

situation for Indian spinning mills, who are now looking to domestic demand
from the garments sector for relief.

Opportunities
On a long-term basis, exports to China will increase due to
China has the highest population in the world which means high requirement of
fabric.
Labor cost and cost of electricity is continuously increasing in China, which will
aid exports of yarn to China from India
Furthermore, China is the largest exporter of readymade garment in the world
and they are cutting down some of the low value added processes like
conversion of yarn from cotton which in turn also results in high demand of
cotton yarn.
On a long-term basis, as the Chinese stock of low cost raw cotton exhausts, the
demand from China for cotton yarn is again expected to rise.

3.2 Pakistan
Market Size
Pakistan is the 4th largest producer and 3rd largest consumer of cotton globally. Textiles, is the
vital manufacturing sector of Pakistan contributing nearly one-fourth of industrial value-added
goods and employing almost 40% of the industrial labor force. Accounting for 8% of national
GDP and 54% of the total exports of Pakistan, the textile industry consists of a complete value
chain from cotton growing to the finished products - providing Pakistan with a rare competitive
edge in the world. In the year 15-16, due to a poor cotton crop, there was a huge increase in
imports of cotton yarn in Pakistan. Pakistan is likely to account for at least 40% of India's

overseas cotton sales.

Threats

Pakistan is located at the crossroads of South Asia, Central Asia, China and the
Middle East and is thus at the fulcrum of a regional market.
Pakistan has a vast population, large and diverse resources, and untapped
potential for trade. The increasing proportion of Pakistans working-age
population provides the country with a potential demographic dividend.
Pakistans trade agreements with European Union. Pakistan is a major
beneficiary of the trading opportunities offered by the EU, it benefits from
generous tariff preferences (mostly zero duties on two thirds of all product
categories) under the GSP+ arrangement aiming to support sustainable
development and good governance. Pakistani exports to the EU are dominated by textiles
and clothing as well as leather products. Textiles and clothing account for just under 75% of Pakistan's
exports to the EU.

Opportunities

The cotton grown in Pakistan, is the low quality cotton which helps in making
Open End Yarn and Siro Yarn but both the yarn are low in quality and have less
strength. Since Pakistan has trade agreements with European Union, it has to
use fine quality cotton (Ring Spun yarn) for its product. The Ring Spun cotton is
imported from India.
Geographical Location of Pakistan plays an important role, as Pakistan is a
neighboring country, the freight charges are low, which in turn helps exporter to
charge lowest prices to the buyers.
Since Indian Government extends incentives to yarn exporters in the form of
rebate and discount on interest payment for attracting new investments, the
yarn produced in India is not only best quality but also cheeaper . In addition,

some state governments also provide subsidy in electricity charges to spinning

mills.

3.3 Italy
Market Size
Italy accounts for 6.7% of Worlds textile and clothing trade, comprising 6.9% in textile products
and 6.6% in clothing. Italian products of the textile and apparel industry are known

worldwide. This sector has attracted a great deal of attention because it is rare for a
wealthy and developed country to specialize heavily in fashion-oriented as well as semicustomized industrial products and base its production system on small and very small
companies. Italian industry has global market and is also a pioneer in premium market
segment
Threats

Italy's renowned textile industry is changing dramatically. Thousands of mainlands

Chinese are swarming over to an Italian town near Florence called Prato. They have
been able to buy premises cheaply from Italian businesses that are going bust.
Approximately 4,000 Chinese-run clothing factories in Prato are turning out one million
garments a day. The demand for cheaply made, mass produced clothing or "fast
fashion" forces workers in the crowded factories to keep pace.
Italys domestic market is currently experiencing a strong decline since private
consumption decreased because of sinking real wages. This had its effect on the textile
and apparel industry with a falling domestic consumption which also affected the
imports of the country.
Opportunities

Since Italy is known as the world capital of fashion and fabrics, the country demands
best quality of cotton for manufacturing the clothes. India produces best quality cotton
and also is one of the largest producer of cotton. Due to these factors, Italy imports best
quality open end and ring spun cotton yarn from India.
For the basic processes like, segregation of cotton, conversion into fibers and yarns,
labor is required but since Italy is a developed country cost of labour is too high which
results in increased prices of grey or dyed cotton yarn. It becomes feasible for Italy to
import cotton yarn from countries like India, China and Vietnam.

3.4 Peru
Market Size
The textile and apparel industry of Peru has seen, 22% growth in production of yarns, textiles
and finishings; 8.9% annual average growth in textile exports; it has the second largest nontraditional exports; main job creator of the manufacturing sector with 128,000 workers in
clothing production; 32,000 workers in yarn and textile production and 200,000 workers in fiber
production (cotton and alpaca). The Peruvian textile and apparel industry has the characteristics
of a full package industry. It is vertically integrated from the procurement of raw materials until
the final product, employs highly qualified human capital all along the value chain and works
backed by a regulating framework which facilitates business and by a free trade policy that
already has accomplished the subscription of agreements with the most important countries
and economic blocks (United States, China, Canada, the European Union, India etcetera).

Threats

The main competitive advantage of the Peruvian apparel industry is its level of
integration. The production chain, starting with the fiber up to the yarn and
fabric manufacturing and the making of garments, is fully integrated.
Peru produces one of the finest quality cotton, in the world. Peru contributes
80% of the alpaca fiber production worldwide. But instead of quantity, what
characterize Peruvian alpaca wool are its intrinsic values such as softness,
adaptability to dyeing and knitting versatility. Pima cotton is ideal to create and
make comfortable, eye-catching and modern pieces. Its great softness is
consequence of its length and finesse, which also provides fabrics with
lustrousness and freshness. Tangis cotton presents a high capacity of dye
absorption, a perfect attribute for printing.
Due to this availability and cheap labor, most of the Iconic international brands,
especially those oriented to the urban and youth segments which are the most
demanding in terms of fashion trends, are already manufacturing their
collections in Peruvian companies. Examples of these brands are s Armani
Exchange, Lacoste, Hugo Boss, Perry Ellis, Nautica, Abercrombie & Fitch, Adidas,
Polo Ralph Lauren, Fila, DKNY etc

Opportunities
Due to high demand, Peruvian cotton only meets 40 percent of the demand of
Perus textile and garment chain, and the remaining 60 percent is being met by
imported cotton.
Countervailing duties are trade import duties imposed under World Trade
Organization rules to neutralize the negative effects of subsides. In the case of

Peru, countervailing duties would raise the local spinners cotton price which
would affect the entire textile and clothing chain.
Foreign Trade Agreements signed between India and Peru will also help in
boosting the business.

4. Marketing Decision
4.1 Distribution Strategy
Antariksh Yarn is a Merchant exporter company which provides export facilities to the
manufacturers in India and carries out all the functions related to exports on behalf of
the manufacturer and also bears risk for the transactions. They are a medium for
indirect exporting Channel for small manufacturers who do not have resources to carry
out all the export related functions. They then export directly yarn to the foreign
distributors/ textile factories.

Distribution Channel

Manufacturer
of yarn

Merchant
exporter
(Antariksh Yarn)

Foreign
Distributors

Textile Factories

Process
1. Finding Buyers- They find the buyers through :
I. Their own contacts and network
II.
Receive leads with the help of various promotions
III.
Agents / Foreign Distributors
IV. Repeated business
Exports are done on demand supply basis i.e. only when there is a demand will they will
approach the Manufacturers of yarn.
2. Supplier Selection- Antariksh Yarn procures the yarn from the manufacturers across
various regions in the Domestic country (India) based on
I. The location of the manufacturers factory premises
II.
Buyers/ Importers country
The locations are considered to be an integral part for decision making as that will
reduce the expenses for transportation and freight. It will benefit the company with
better profit margins by cutting down on costs for transportation and freight charges.
Importing country
China
Pakistan
Italy
Peru

Procurement locations
South India, Maharashtra,
Gujarat
Maharashtra/Gujarat- Karachi
Punjab- Wagah
Mumbai
South India, Maharashtra

Comments
Transit time-11-15 days
Transit time- 2-5 days
Transit time- 30 days
Transit time- 45 days

3. Fulfils the order Once the suppliers are shortlisted by means of a good quotation,
past experience, healthy relations; they undergo a contract. The order is processed
within 10-12 working days.
4. Examination/ Inspection- The inspection is carried out at the manufacturers
location and if the consignment meets the standard quality
5. Packaging- Further, they package the products and sell them with their brand name.
All the risks are then borne by them. The goods are then dispatched from the
factory.
6. Shipment- The goods are shipped to the importers country.

4.2 Documentation
Document 1- Packing List
ORIGINAL PACKING LIST / WEIGHT MEMO
EXPORTER:

Invoice No. & Date:-

SONA COTSYN PVT. LIMITED

SCPL/E/16-17/023
14/09/2016

C-241, Rahul Mittal Building No. 3,

Proforma Invoice No. & Date:-

Mittal Industrial Estate, Andheri Kurla Road

SCPL/PI/16-17/013
02/09/2016

Andheri (East), Mumbai 400059 (INDIA)

Other Reference(s).

CONSIGNEE /
APPLICANT

NOTIFY PARTY

Exporter's Ref.
1314005065

DATED

Dt

PreCarriage
By
By Road

Place
of
receipt by
Pre-carrier
N.A.

Country of Origin of Goods

Country of Final
Destination

INDIA

CHINA

Vessel/Flig
ht No.

Port
Loading

Terms of Delivery and Payment:

MAERSK STEPNICA 4/E

NHAVA
SHEVA

Port of Discharge

of

Place
of
Delivery
QINGDAO,
QINGDAO, CHINA
CHINA
Marks
& No. & Kind of Description
Nos./ .
Pkgs.
of
Goods
and/or
Services

CIF - QINGDAO, CHINA

CONTRACT NO. SCPL/PI/16-17/013 Dt 02/09/2016
DOCUMENTRY CREDIT NUMBER
05/09/2016
PAYMENT TERM: LC AT SIGHT
OF INVOICE VALUE.

Quantity

Kgs
MADE
INDIA

IN

LCWF16000184

Remarks

DATED

CARTON /
LOT NO.
001
to 1350
1350
/
1649

NET WEIGHT
COMMODITY
DESCRIPTION
CARTON
SC No. : SCPL/PI/16-17/013, NE 32/1 100PCT
COTTON CARDED YARN OF WEAVING (AIR JET) , 61236.0 IN KGS
CSP 2650, IPI BELOW 750, COUNT 32.5+, U PCT 0
BELOW 12, CVM PCT BELOW 15.3

PER

45.36 KGS

61236.0
0
GROSS WEIGHT
CARTON

ORIGIN
INDIA

PER

IN KGS

47.90 KGS
TOTAL NET WEIGHT

IN KGS
61236.00 KGS
TOTAL
WEIGHT
IN KGS

HS CODE
52051400

GROSS

64665.00 KGS
NUMBER OF CONE
PER CARTON
24 CONE
NET WEIGHT
CONE
IN KGS
1.89 KGS

ZCSU

8694150

CONTAINE
ZCSU8957920
R NO. :

BSIU9697233
I 168654 - I 168653 - I
SEAL NO. :
167662

NO
OF
PACKAGES
:
NET
WEIGHT :
GROSS
WEIGHT :

1350
CARTONS
61236.00
KGS
64665.00
KGS

PER

Signature
& Date

SONA COTSYN PVT. LIMITED

Page 1 of 1

2. Document 2- Invoice
On sending the consignment, an invoice is generated which has details about the two parties and
their respective banks. The container details, amount of quantity exported and other information
are all written in it. A typical invoice would be like:

COMMERCIAL INVOICE
ORIGINAL

SONA COTSYN (PVT) LIMITED

E
X
P
O
R
T
E
R

Registered
Office :-

SELF AUTHENTICATION

SONA
COTSYN
(PVT)
LIMITED

2-F-13, New
Housing
Board

For SONA
LIMITED

COTSYN

(PVT)

C-241,
Rahul
Mittal
Building
No. 3,
Mittal Industrial
Estate,
Andheri
Kurla Road
Andheri
(East)
Mumbai 400059,
INDIA

Shashtri
Nagar

Bhilwara
(Rajasthan)
INDIA

AUTHORISED
SIGNATORY

CONSIG NOTIFY PARTY

NEE
/
APPLICA
NT
Commercial Invoice SCPL/E/16-17/023
No.
:Commercial Invoice 14-SepDate
:16

Pre
Carrieged
By :

Container By Road

Vessel
MAERSK STEPNICA 4/E
Name &
Voyage
No.
Port
of NHAVA SHEVA
Loading

Descriptio

Cotto

Buyer Order Ref No. SCPL/PI/16-17/013

/ Contract No. :
02/09/2016

Country of Origin of India

Goods
:

Country of Final CHINA

Destination
:
Port of Discharge QINGDAO
:
Terms of Delivery CIF QINGDAO, CHINA
:
Currancy
US Dollar

Dt

n
and n
Specificati Yarn
on
of
Goods:

H Description of Package
S
N
C
o
d
e
5
2
0
5
1
4
0
0

Lot
No.

Per Ctn Total Qty.

Qty
No.of (Kg)
Ctns

COMMODITY
DESCRIPTION
SC No. : SCPL/PI/16-17/013, 1649
NE 32/1 100PCT COTTON
CARDED YARN OF WEAVING
(AIR JET) , CSP 2650, IPI BELOW
750, COUNT 32.5+, U PCT
BELOW 12, CVM PCT BELOW
15.3,
UNIT PRICE USD 2.53/ KG, CIF
QINGDAO
PORT
CHINA,
INCOTERMS 2010, QUANTITY ;
61236 KGS (3X40' FCL)
ORIGIN INDIA

45.36

TOTAL

1350

Rate
US
Doller
Per Kg

Amount

CIF QINGDAO, CHINA

61236.0 USD
USD
0
2.53
154,927.
08

1350

61236.0
0

154,927.
08

MADE IN INDIA

TOTAL
GROSS
WT
TOTAL
NET WT
TOTAL
NO.
OF
CARTONS

6466
5.00

KGS

6123
6.00
1350

KGS

Assesable Value

CARTONS

DOCUMENTRY CREDIT NUMBER

LCWF16000184 DATED 05/09/2016

USD
154,927.
08

EXPORT UNDER
DUTY DRAWBACK
SCHEME
We Intend to claim rewards under
merchantised export from India
Grand Total
in words :-

USD
154,927.
08

US DOLLER ONE LAKH FIFTY FOUR THOUSAND NINE HUNDRED TWENTY

SEVEN AND CENTS EIGHT ONLY

SEAL
NO. :

CONTA
INER
NO.
ZCSU
86941
50
ZCSU8
95792
0
BSIU96
97233

I
16865
4
I
16865
3
I
16766
2
Payment
Terms:-

LC AT SIGHT

Sellers
Bank
Details :-

Bank Name :

Punjab
National
Bank
Bank Address:
Sanganeri
Gate,
Bhilwara,
Rajasthan
Account No. :
090800210
0098029
Swift Code :
PU
NBI
NB
BBB
G
VIA
:
ABA No.
:
Swift
:
For Credit to :
SO
NA
COT

RAN
GE :
DIVI
SIO
N:
REGISTRATION
NO. :
IEC
NO.
:

1314005
065

SYN
(PV
T)
LIM
ITE
D

Terms and 1) All local charges at destination port including demurrages,

Conditions Detention, Clearing charges are payable by the buyer.
:2) Buyer shall notify seller of quality claims if any within 30 days of
arrival of cargo at destination port supported by survey report
from SGS / equivalent agency - otherwise all
such claims shall be barred.
3) 5% tolarance on weight &
value should be acceptable.

Force
Majeure :-

In case of Force Majeure, The seller shall not be held

responsible for late delivery or non delivery of goods.

Arbitration
/Governing
Laws :-

In case of any disputes in connection with this contract,

It shall be settled at the courts in india per local laws.

For, SONA COTSYN

PVT LTD

P
r
e
p
ar
e
d
B
y

Checked
By

Authorised Signatory

3. Document 3- Bill of Lading

Shipper
SONA COTSYN (PVT) LIMITED
C-241,Rahul Mittal Building No. 3,MITTAL INDUSTRIAL
ESTATE, ANDHERI KURLA ROAD,
Andheri (East) Mumbai 400059 (INDIA),

Consignee:
TO ORDER

Notify Party:

Place of Receipt:
NHAVA SHEVA,INDIA

Vessel and Voyage No:

MAERSK STEPNICA 4/E
Port of Loading:

Port of Discharge:

NHAVA
SHEVA,INDIA

QINGDAO, CHINA

Place of Delivery:
QINGDAO, CHINA

Marks & Numbers

Number and Kind of Packages

Description of Goods

CONT NO:
ZCSU 8694150

1350 CARTONS

64665.00

(ONE THOUSAND THREE HUNDRED FIFTY

CARTONS ONLY)

KGS

COMMODITY:
SC
No.
:
SCPL/PI/16-17/013,
NE 32/1 100PCT COTTON CARDED YARN FOR
WEAVING (AIR JET) , CSP 2650, IPI BELOW 750,
COUNT 32.5+, U PCT BELOW 12, CVM PCT BELOW
15.3, NET WEIGHT 61236 KGS 3X40FCL
PACKING: 1350 CARTONS
ORIGIN: INDIA
14 DAYS OF FREE DETENTION TIME AT
DETINATION PORT IS ALLOWED.
MADE IN INDIA
COMMERCIAL INVOICE NO SCPL/E/16-17/023
DATED 14.09.2016
Documentary credit number
LCWF16000184 DATED 05/09/2016
S.B.NO:.. DT:

ZCSU 8957920
BSIU 9697233

SEAL NO.
I 168654
I 168653
I 167662

Gross
Weight

NET WT.
61236.00
KGS

FREIGHT PREPAID
LOT NO:
1649

CARTON NO:
001 TO 1350

Total
No.
/Packages:
1350 CARTONS

of

Containers

Movement:

Freight:

PREPAID

Measurement

Number
Originals

of

Remarks:

4. Document 4 - APTA invoice

SONA COTSYN (PVT) LIMITED
C-241 RAHUL MITTAL BUILDING NO.3.
MITTAL INDUSTRIAL ESTATE, ANDHERI
KURLA ROAD, ANDHERI (EAST)
MUMBAI 400059 (INDIA)

Buyer's Name and Address

BY SEA
FROM NHAVA SHEVA, INDIA TO QINGDAO, CHINA

52051400

MADE IN
INDIA
CARTONS NO.
001 TO 1350
LOT NO.
1649

1350 CARTONS
(ONE THOUSAND THREE HUNDRED FIFTY CARTONS ONLY)
SC No. : SCPL/PI/16-17/013,
COMMODITY: NE 32/1 100PCT COTTON CARDED
YARN OF WEAVING (AIR JET) CSP 2650, IPI BELOW ,
"A"
750, COUNT 32.5+, U PCT BELOW 12, CVM PCT
BELOW 15.3,
3X40 FCL PACKING: 1350 CARTONS.
ORIGIN: INDIA
CONTRACT NO. SCPL/PI/16-17/013 Dt 02/09/2016
DOCUMENTARY CREDIT NUMBER:
LCWF16000184 DATED 05/09/2016

GROSS
WEIGHT
64665.00
KGS

NET
WEIGHT
61236.00
KGS

SCPL/E/1617/023
DATED
14.09.2016

4.3 Direct investment and Strategic Alliances

Antariksh Yarn does not have investments in any other company nor has an international
company invested in their share capital.
They have tie-ups with a few of their manufacturers in South India, Maharashtra which assures
them with quality and consistency of supply.

4.4 Product
4.4.1 Product brief
Types of yarn:
1. Cotton (Ring spun/ Open end)
Cotton ring spun- This set up has 40,000 spindles to manufacture 100% cotton ring
spun yarn.
Count: Ne20s to Ne 40s
Used in:
- Sheeting & denim cloth manufacturers.
- Weaving and knitting company purposes.
- Fabric manufacturers
Cotton open end This set up has 2000 rotors to manufacture 100% cotton open
end yarn. We supply 100% cotton open end yarn. We are also involved in supply of
optimum quality open end yarn.
Count: Ne 6s to Ne 21s
Used in:
- Manufacturing Denims, Trousers, Sportswear etc.
- Also used in Home Textiles, and Decoration purposes.
Qualities of yarn:
1. Carded- The yarn which is made from short staple and lower quality fiber are called

Carded yarn. Mainly the name card come from a machine of spinning section.
Carding is an operation that occurred in spinning section. The yarn which is formed
by carding operation is called carded yarn.
These types of yarns are
a. Low cost
b. Harder hand fillings.
c. Strength low.
d. It is use to produce normally low quality fabrics.
e. Dyeing and knitting wastage is very high.

2. Combed The yarn which is made from finest and longer fibre we called combed

yarn.
This type of yarn is very fine for Fabric production
Quality of these types of yarn is very smooth.
a. Even very soft yarn.
b. The strength is higher than other (carded) types yarn.
c. Prices are higher than other (carded) types yarn.
d. Softness is higher than other (carded) types yarn.
e. It produces high quality fabrics.

4.4.2 Product Strategies

1. Specific Product procurement Strategy (Based on demand) - Under this strategy,
the product procured for different markets depends on the needs of the buyers
across the countries.
For e.g. In China, they have an edge in producing polyester yarn as it is man-made,
so polyester yarn is not exported to China.
In Pakistan, Open end yarn is produced by them, so majority only Ring spurn yarn is
exported to Pakistan.
In Italy, high quality and high grade yarn is demanded so majority of ring spun and
high grade open end yarn is exported.
This helps to increase the adaptability of the product and to meet the specific needs
of the foreign buyers.
2. They have chosen a Commodity product which can be open to all the markets and
for all the types of buyers.
3. Also since India is the largest producer of cotton yarn it has an edge over other
countries.
4. They market and brand the products on their name which can assure quality
consistency to their regular buyers and build their credibility.

4.5 Pricing
4.5.1 Pricing
1. Receives Quotation from the buyer- Buyer is ready to pay $ 2.57/kg yarn.
Quantity ordered- 20412kgs
2. Works out on the break- even price

Particulars
Rate- USD
Quantity(kgs)
Invoice Value- USD
Exchange
Amount
Freight - USD
Exchange
Freight Amt(Rs)
FOB
Commission
Amount
Transportation/Local Expenses
Interest rate
Days
Interest
Total expenses
DEPB rate
DEPB amount
total realisation
actual realisation
Rate(Rs/Kg)

Amount
2.57
20412
52458.84
66.45
3485889.92
15
68
1020
3484869.92
1%
34858.9
85000
11%
20
21010.84
140869.74
3.06%
106637.02
3591506.94
3450637.19
169.05

Conclusion-So the Antariksh yarn needs to procure yarn at < Rs. 169.05 from the Suppliers in
order to earn positive Profit.

4.5.2 Pricing Strategy

Antariksh yarn has adopted the differential pricing strategy where different prices are
charged in different markets depending upon the transaction time for a particular market
location, competitive conditions, expenses incurred like freight charges.

Mode of payment
1. Advance payment (30%-70%) 30% advance payment and 70% against documents.
Scanned documents are send against which payment is received. When payment is
received the original documents are sent to the importer. With cash-in-advance
payment terms, credit risk is avoided because payment is received before the
ownership of the goods is transferred.
2. Letter of credit at sight - Letters of credit (LCs) is one of the most secure

instruments available to international traders. An LC is a commitment by a bank on

behalf of the buyer that payment will be made to the exporter, provided that the
terms and conditions stated in the LC have been met, as verified through the
presentation of all required documents.

4.6 Promotions
1. Trade fairs & Exhibition
I. Inter Textile Shanghai Apparels & fabrics- Intertextile Shanghai Apparel Fabrics

is a comprehensive platform to showcase your supreme apparel fabrics and

accessories. There are lots of business chances to meet potential customer,
explore new market opportunities, learn about next seasons trends, and
add value to your business. It is currently one of the biggest and most
comprehensive apparel fabric and accessories exhibitions in the world.
II.

Cinte Techtextil - Cinte Techtextil China is Asias leading biennial trade fair
for technical textile and nonwoven products. As the daughter show of
Techtextil in Germany, Cinte Techtextil China covers twelve application areas
which comprehensively span the full range of potential uses of modern
textile technologies. The full coverage of product groups and applications
enable the fair to become the tailor-made business solution for the entire
industry. With the rapid growth in China market, the demand for technical
textile is enormous. The 2012 show saw a record-breaking 437 exhibitors

III.

from 22 countries and regions reviewed the exhibitors are highly confident
about China.
Yarn, Fabrics & Accessories trade shows- The Indian garment industry buys
12,000 million dollars worth input material such as yarn, fabric, trimmings
and embellishments, lining and interlining etc. annually. This is expected to
rise to 22,000 million dollars over the next five years. The members of the
textile promoting associations such as CITI and apparel promoting
associations such as AEPC and CMAI have been exploring new platforms for
buying input material. Yarn, Fabric and Accessories Trade Show 2016' is a
collective effort towards redefining sourcing for apparel and textile industry.
It brings together the seller and buyer under one roof.

2. Textile Councils/ Chambers

I.
TEXTPROCIL (The cotton textile export promotion council) Since its inception in
1954 as an autonomous, non-profit body dedicated to promotions of exports. The
Cotton Textiles Export Promotion Council, popularly known as TEXPROCIL has been
the international face of cotton textiles from India facilitating exports worldwide.
Textprocil has a membership of around 3,000 companies spread across major textile
clusters in India. Its members are well established manufacturers and exporters of
cotton textile products like Cotton, Yarns, Fabrics and Home Textiles, showcasing a
dazzling array of products across the value chain. The Council connects international
buyers with appropriate suppliers and facilitates interaction that enables them to
source their specific needs. It also provides information on India's competitive
advantages, its export environment and updated position in the global market place.
II.

FIEO(Federations of Indian Export organizations)

Apex body of the export promotion councils, commodity boards and export
development authorities in India
Set up in 1965
Provides the crucial interface between international trading community of
India & the Central/ State Governments, financial institutions, ports,
railways, surface transport and all involved in export trade facilitation
Directly and indirectly serves the interests of over 100,000 exporters in
the country.
FIEOs direct members contribute more than 70% of Indias exports.
ISO 9001:2008 certified organisation ensures high quality service to its
members and associates.

III.

Indian Trade Portal - India has entered into trading agreements with various countries
of the world with the objective of boosting its external trade. Foreign Trade Policy of
India has always focused on substantially increasing the country's share of global
merchandise trade. Accordingly the Government of India has been taking various steps
towards boosting its trade with the rest of the world by adopting policies and
procedures which would help to increase and facilitate both exports and imports with
the other countries of the world. To facilitate and thereby increase external trade
activities with the rest of the world, the Department of Commerce, Government of
India has developed this web portal.

3. Online portals
Presence in the following online portals:
I.
Fibre2fashion.com
II.
IndiaMART.com
III.
TradeIndia.com
IV.
Alibaba.com
V.
Textilenow.com
VI.
Tradeboss.com
VII.
Cottonyarnmarket.net

5. Legal Decisions
1.

2.

3.
4.

5.

Following steps were required for incorporation of Antariksh yarn

Application for Director Identification Number (DIN) in form DIR-3 & DSC (Digital
signature certificate):
Director identification Number is a unique identification number issued by the Ministry
of Corporate Affairs (MCA), for an existing director or a person intending to become a
director of a company.
Documents required for DIR-3 Application :
Identity proof
Address Proof
Passport Size Photogragh
Current Occupation
Email Address of the applicant
Mobile/Cell Number
Educational Qualification
Verification to be signed by Applicant
Search for the company name availability:
The promoters have to provide atleast 6 names in order of their priority/preference. The
promoters can themselves search for the available names by visiting the MCA Website.
Application for the name availability:
Drafting of memorandum of association & Articles of Association
Memorandum of association covers fundamental provisions of the companys
constitution. It covers main objective and other objectives of the comapnany.
Articles of Associations contain rules and regulations governing the internal
management of the company.
Filing of e-forms with RoC ( Registrar of Companies):
Form INC-7 is to be filed for incorporation of the company.
Mandatory attachments to e-form INC-7 are
Memorandum of association
Articles of association
Declaration by Professional in INC-8
Affidavit from the subscriber to the Memorandum in Form No.INC-9
Proof of identity
Form INC-22: For Notice of situation of registered office
Form DIR-12: For providing information about particulars of appointment of
directors of the company and key managerial Personnel

6. Payment of RoC Fees & Stamp Duty:

After filing of documents online, we need to make payment of RoC fees and Stamp Duty
electronically which is based upon the Authorised Capital of the Company.
7. Verification of documents/forms by RoC:
After payment of all RoC fees and stamp duties, RoC verifies/scrutinizes all the
documents and forms and may suggest a few changes to be made in the attachments
or form itself.
8. Issue of Certificate of Incorporation by RoC
Once all the forms are duly approved by RoC, the digitally signed certificate of
Incorporation is emailed to the directors.
Once Antarisksh yarn got Incorporated the following authorities were approached for export
procedure:
Registration With Regional Licensing Authority: For obtaining IEC code( importer exporter
code).
The Customs Authorities will not allow to import or export goods into or from India unless we
hold a valid IEC number. Before applying for IEC number it is necessary to open a bank account
For obtaining IEC Code Number, an Application for grant of IEC Number is to be submitted by
the Registered/Head Office of the applicant to the concerned Regional licensing authority in the
specified Format, along with

A copy of Permanent Account Number issued by Income Tax Authorities.

Bank Receipt (in duplicates)/Demand Draft for payment of the fee of Rs. 1,000/-.
Certificate from the Banker of the applicant firm
Two copies of Passport size photographs of the applicant duly attested.
A copy of Permanent Account Number

REGISTRATION WITH SALES TAX AUTHORITIES:

For registration an Application in the prescribed Form is to be submitted to the sales tax office
under whose jurisdiction the exporters Head office /Registered Office is situated. The Sales Tax
Officer will visit the premises to check the relevant documents pertaining to sales/purchase
transactions of the company and on satisfaction the Sales tax Office will issue Sales Tax
Registration in favour of the Exporter.
REGISTRATION WITH EXCISE AUTHORITIES
The Export Oriented Units / Export Processing Zone Units are deemed to be registered for the
purpose of Central Excise Rule 9. Hence, such units need not be registered separately under
Central Excise Rules.

REGISTRATION WITH EXPORT PROMOTION COUNCILS

In order to enable exporter to obtain benefits or concessions under the export import policy,
the Exporters are required to register themselves with an appropriate Export Promotion
Councils (EPC) by obtaining Registration cum Membership Certificate (RCMC).
An application to EPC for registration should be accompanied by a self certified copy of the IEC
number issued by the Regional Licensing authority, Registration Fee and Bank Certificate in
support of the applicants financial soundness. If applicant is already registered with any other
EPC, a copy of RCMC should be furnished.
The RCMC is valid from 1 st April of the licensing year in which it was issued and will remain
valid for Five years ending 31 st march of the licensing year, unless otherwise specified.

6. Manufacturing and Operations

The office of Antariksh Yarn is located at Kharghar with monthly rent of Rs 30,000 (i.e Rs
30 x 1000 sq ft). The monthly charges of utilities are Rs 5000 approx.
EXPANSION:
Target countries for expansion of our business are:
Vietnam: As its total import of cotton yarn is $3.8 billion (7.4%). It is the third largest
importer of cotton yarn from India. Also foreign direct investment in Vietnam has hit a
record in 2015 and has surged again this year. Deals reached $11.3 billion in the first half
of 2016, up by 105% from the same period last year, despite a sluggish global economy.
Big free-trade agreements explain some of the appeal.
Thailand: As it is heading towards higher-quality workers, better-equipped special
economic zones, improved status of small and medium-sized enterprises (SMEs). Also
Its total imports of cotton yarn from India was $804.9 million (1.6%). One of the
highest imports of cotton yarn from India.
How to go about this expansion: We will take part in national and international events
to enhance the visibility of our product, well also advertise and promote our product
in various media vehicles such as fashion magazines, event-related pull-outs, India
reports and leading trade magazines, and participate in buyer-seller meets (BSM)
organized by cotton textile export promotion.

7. Personnel Strategy
7.1 Employees
Antariksh Yarn is a merchant exporting enterprise which majorly exports Yarn to various
countries, also engages in import of zinc. The inspection staff is not in-house. In-house
workers/employees at the firm include the following:
1. Accounting One Chartered Accountant for aiding in setting up the company
Basic Salary INR 30000/- p.m.
2. Administration and Office One Office boy for odd jobs, errands and keeping all the
documentation
in
order.
Basic Salary INR 20,000/- p.m.
3. Marketing We will require two senior marketing professionals well versed in the field
of international marketing. They will be required for thorough market research, due
diligence, business development, client relations and various other core roles. These
employees are responsible for lead generations and the core business responsibilities
and thus must be hired carefully. There needs to be a formal approach to various
companies in different markets so we need skilled well trained staff for this purpose.
Initially all the persons starting the business will be majorly focusing and working more
on this field, as marketing is the main heart of the business
Basic Salary INR 1,00,000/- p.m.

7.2 Experience and Expertise

Following are the guidelines/criterion for recruiting the aforementioned employees.
1. Accounting One qualified chartered accountant with minimum 2 years of experience,
preferably in the export business.
2. Administration and Office A qualified office secretary with at least 2 years of
experience in office administration related duties in the export industry and should be
familiar with all the export process formalities.
3. Marketing - An experience of dealing with off-shore clients in the domain of natural
stones and preferably yarn is an ideal profile for the marketing team. An experience of
2-5 years is preferred. Knowledge of foreign languages serves as an added advantage.

7.3 Training
Training needed by the existing personnel will vary depending on the four given factors :

New products introduced in export portfolio

New markets explored other than target markets
Expansion of the enterprise

7.4 Hiring for the future needs

Since it is a new enterprise and a primarily export oriented enterprise with limited resources
at its disposal, the documentation, office & admin as well as the marketing staff need to be
employed in short term contracts. The core team of business owners would comprise the
marketing team. They would be the one handling all the activities and will outsource the
admin and quality control needs of the enterprise if necessary.

7.5 Organizational Chart

M.D.

C.E.O

C.F.O

C.A

C.M.O

Marketing
Officer

Office Boy

C.O.O

Marketing
Officer

8. Financial Decision
8.1 Financial Statements
Please refer Appendix A.

8.2 Key Assumptions

Please refer Appendix B.

10.Implementation Schedule

October 2015

The core team of the business will start on-the-job training, learning
the nuances of the business for the next 2 months
The company wil hire an office/admin personnel and an accountant
for paperwork and initial licensing duties.

The office personnel will apply for two licences for Antariksh export
enterprise formation.
The person in-charge on business development will explore various
leads in different trade channels for target markets.
October
November 2015 One of the key managers will start attending textile trade fairs

End November
2015

We will register with courier agencies like DHL and also signed ratebased contracts with agencies for hiring personnels for inspection at
the factories.

With the help of a strong back-end, sufficient market

expertise and strong export leads the business went live at
the end of the month. The main objective at the start of
the business would be to secure three clients in the next
December 2015 three months of operation (end of financial year)

Appendix A
Working Notes
1. Calculation of FOB & CIF price
Cotton Yarn
Rate per Kg. = Rs. 169.5
Quantity per 30 container = (24x470)= 11280 Kgs
Cost of material per container = Rs. 19,11,950
Transportation Cost = Rs. 15,000
Inland Insurance Cost = Rs. 3000
Total Cost/ Order=19,29,950
Profit =1.52284% of cost(19,29.950)
FOB price per container = Rs. 29,39,010
Freight per container with insurance = Rs. 1,30,000
CIF price per container = Rs. 30,69,010.

Appendix B
Underlying assumptions in the business:
I. Depreciation has been charged at the rate of 15% SLM Flat
II.
The profit sharing ratio among the promoters is in the ratio of their capital
contribution.
III.
The company is able to manage the profit of 1.5 % of their cost of material purchase.
IV. There will be no capital expenditure in the first 3 years apart from the preincorporation expenses.
V. The payment cycle remains the same irrespective of the client.
VI. For the sake of simplicity freight charges are taken as 150000 Indian rupees with
insurance charges irrespective of destination port.
VII. The source of funds is by equity contributed by the promoters the company.
VIII.
We will mak a deposit of 10000 INR initially which will remain the same. This deposit
is the security deposit with statutory bodies.
IX. Since the company is a trading concern hence it will not have any work in progress.
X. The growth in the sales is calculated on the basis of CAGR of the industry.
XI. The company will also make an advance payment to its suppliers.
XII.
No part of the profit made will be taken by Promoters. These will be reinvested in
the business.
XIII.
The gestation period for the business is 3 months hence the first financial year is of 9
months.

Prepared by:
Pulkit Agarwal- 01
Rajpreet Cheema- 05
Tanushree Choudhary- 06
Rohit Mohan- 20
Jigna Rughani- 30