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Organizational
study
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Industry profile
A textile or cloth is a flexible material consisting of a network
or artificial fibres often referred to as thread or yarn. Yarn is
produced by spinning raw fibres of wool, flax, cotton, or other
materials to produce long strands. Textiles are formed by
weaving, knitting, crocheting, knotting, or pressing fibres
together.
Prior to the manufacturing processes being mechanized,
textiles were produced in the home, and excess sold fo extra
money. Most cloth was made from wool, cotton, or flax,
depending on the era and location
The textile, textile product, and apparel manufacturing
industries include establishments that process fibre into fabric
and fabric into clothing and other textile products. While most
apparel manufacturers worldwide rely on people to cut andsew pieces of fabric together. There are three individual
industries covered- textile mills, textile product mills, and
apparel manufacturing.
Textile mills provide the raw material to make apparel and
textile products. They take natural and synthetic materials,
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such as cotton and polyester, and transform them into fibre,
yarn, and thread. Yarns are strands of fibres in a form ready for
weaving, knitting, or otherwise intertwining to form a textile
fabric. They form the basis for most textile production and
commonly are made of cotton, wool, or a synthetic fibre such
as polyester. Yarns also can be made of thin strips of plastic,
paper, or metal. To produce spun yarn, natural fibres such as
cotton and wool must first be processed to remove impurities
and give products the desired textile and durability, as well as
other characteristics. After this initial cleaning stage, the fibres
are spun into yarn.
Textile mills then go on to produce fabric by means of weaving
and kitting. Workers in weaving mills use complex, automated
looms to transform yarns into cloths. Looms weave or interlace
two yarns, so they cross each other at right angles to form
fabric. Knitting mills use automated machines to produce fabric
of interlocking loops of one or more yarns
At any time during the production process, a number of
processes, called finishing, may be performed on the fabric.
These processes which include dyeing, bleaching, and
stonewashing, among others may be performed by the textile
mill or at a separate finishing mill. Finishing encompasses
chemical or mechanical treatments performed on fibre, yarn,
or fibre to improve appearance, texture, or performance.
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Textile product mills convert raw textiles into finished products
other than apparel. Some of items made in this sector include
household items, such as carpets and rugs, towels, curtains
and sheets, cord and twine, furniture and automotive
upholstery, and industrial belts and fire hoses. Because the
process of converting raw fibres into finished textile products is
complex, most textile mills specialize.
The apparel manufacturing industry transforms fabrics
produced by textile manufacturers into clothing and
accessories. The apparel industry traditionally has consisted
mostly of production workers who performed the cutting and
sewing functions in an assembly line. This industry remains
labour intensive, despite advances in technology and
workplace practices. Although many workers still perform this
work to foreign suppliers to take advantage of lower labour
costs in other countries.
Many of the remaining production workers work in teams. For
example, sewing machine operators are organized into
production modules. Each operator in a module is trained to
perform nearly all of the functions required to assemble a
garment. Each module is responsible for its own performance,
and individuals usually receive compensation based on the
terms performance.
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Recent developments
The textile and apparel manufacturing industries are
among the most labour intensive manufacturing industries,
and therefore and increasing amount of textile products is
produced by foreign suppliers. Nonetheless, some textilemanufacturing still takes place in the united states. To remain
competitive, however, domestic manufacturers rely on being
extremely labour efficient. Advanced machinery is boosting
productively levels in textiles and fundamentally changing the
nature of work for employees. New technology also has led to
increasingly technical training for workers throughout theindustry. Computers and computer controlled equipment aid in
many functions, such as design, patternmaking, and cutting.
Other emerging technologies which improve plant efficiency
include wider looms, computerised equipment, and increased
use of robotics to move material within the plant.
The domestic apparel industry also benefits from laws
requiring the clothing worn by the armed services be produced
in the United States a law that was recently extended to cover
uniforms worn by Transportation Security Administrations
Officers. Although demand for these uniforms is greatly
outweighed by a much larger consumer goods market, it
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nonetheless will continue to employ some textile workers in
more labour intensive segments, such as cut and sew apparel
manufacturing.
Other domestically produced items tend to be custom or high
end items. One advantage the domestic industry has is its
closeness to the market and its ability to reach to changes in
fashion more quickly then its foreign competitors. Also, as
retailers consolidate and because more cost conscious, they
require more apparel manufacturers to move toward just in
time delivery systems, in which purchased apparel items are
quickly replaced by new items directly from manufacturers,
rather than from a large inventor kept b the retailer. Through
electronic data interchange mainly using barcodes in
formations quickly communicated to the manufacturers,
providing information not only on inventory, but also about the
desire of the public for particular fashions.
Some apparel firms have responded to growing competition by
merging with other apparel firms and by moving into the retail
market. In addition to the production of garments they also are
contracting out functions- for example, warehousing and order
fulfilment to concentrate on their strengths: design and
marketing. Computer aided design systems have led to the
development of product life cycle management, under which
potential new fashions can now be transmitted around the
planet over the Internet. Such changes may help the apparel
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manufacturing industry meet the growing competition and
continue to supply the Nations consumers with garments at an
acceptable cost.
Some Important Industries in the World
Perfect Exports Private Limited - Nepal
Good Top International Company Limited - Taiwan
Maruti Textiles - India
Texfab Engineers India Private Limited - India
Go Green Textiles India - India
Tepe Label - Turkey
Fractal Fashion - India
Flainox Srl - Italy
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Expo Dress Marketing - Bangladesh
M.M.Traders - India
History of textile industry
India has been well known for her textile goods since very
ancient times. The traditional textile industry of India was
virtually decayed during the colonial regime. However, the
modern textile industry took birth in India in the early
nineteenth century when the first textile mill in the country
was established at fort gloster near Calcutta in 1818. The
cotton textile industry, however, made its real beginning in
Bombay, in 1850s. The first cotton textile mill of Bombay was
established in 1854 by a Parsi cotton merchant then engaged
in overseas and internal trade. Indeed, the vast majority of the
early mills were the handiwork of Parsi merchants engaged in
yarn and cloth trade at home and Chinese and African
markets. The first cotton mill in Ahmadabad, which was
eventually to emerge as a rival centre to Bombay, was
established in 1861. The spread of textile industry to
Ahmadabad was largely due to the Gujarat trading class. The
cotton textile industry made rapid progress in the second half
of the nineteenth century and by the end of the century there
were 178 cotton textile mills; but during the year 1900 the
cotton textile industry was in bad state due to the great famine
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and a number of mills of Bombay and Ahmadabad were to be
closed down for long periods. The partition of the country at
the time of independence affected the cotton textile industry
also. The Indian union got 409 out of the 423 textiles mills of
the undivided India. 14 mills and 22 per cent of the land under
cotton cultivation went to Pakistan. Some mills were closed
down for some time. For a number of years since
independence, Indian mills had to import cotton from Pakistan
and other countries. After independence, Indian mills had to
import cotton from Pakistan and other countries. After
independence, the cotton textile industry made rapid strides
under the plans. Between 1951 and 1982 the total number of
spindles doubled from 11 million to 22 million. It increased
further to well over 26 million b 1989-90.
Textile Industry in India
The Indian textile industry has a significant presence in
the international textile economy. The Indian textile industry is
currently one of the largest and most importance sectors in the
economy in the terms of output foreign exchange earnings,
production and employment generation in India.
The Indian textile industry adds 14% to the industrial
production and 8% to the GDP of India. It provides employment
to 38 million people and thus, is the second largest
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employment provider after agriculture. The Indian apparel and
textile industry is one of the largest sources of foreign
exchange flows into the country with the apparel exports
accounting for almost 21% of the total exports of the country.
The textile industry has the potential to scale new height
in the globalised economy. The textile industry in India has
gone through significant changes in anticipation of increased
international competition. In human history, past and present
can never ignore the importance of textile in a civilization
decisively affecting its destinies, effectively changing its social
scenario.
Textile industry in India is the second largestemployment generator after agriculture. It holds significant
status in India as it provides one of the most fundamental
necessities of the people. Textile industry in India has vast
potential for creation of employment opportunities in the
agriculture, industrial, organised and decentralised sectors and
rural and urban areas, particularly for women and the
disadvantages. Indian textile industry is constituted of the
following segments: readymade Garments, Cotton Textiles
including Handlooms, Manmade Textiles, Silk Textiles, Woollen
Textiles, Handicrafts, Coir and Jute.
Textile industries in Tamil nadu
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Textile Industry of Tamil Nadu is the forerunner in
Industrial Development and in providing massive employment
in the State. It is predominantly Spinning-oriented. The State
Textile Industry has a significant presence in the National
economy also. Out of 2049 large and medium textile mills in
India, 893 mills are located in Tamil Nadu. Similarly, out of 996
small units in India, 792 are located in Tamil Nadu. The 893
large and medium textile mills include 18 Cooperative Spinning
Mills, 17 National Textile Corporation Mills and 23 Composite
Mills. The spinning capacity is 14.75 million spindles with a
labour force of about 2.17 lakhs. The Textile Industry in the
private sector has a very important role to play in the Industrial
field, with regard to employment potential, overall economic
and commercial activities. This industry enables the Central
and State Government to earn revenue, besides foreign
exchange through exports.
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Company profile
Jak industries is a family owned business. The
companys operations are totally vertical. Jak industries hasbeen in the fabric manufacturing business for past 30 years
and been manufacturing finished garments for the past 12
years. As a result the company has excellent expertise in both
fields of garments and fabric manufacturing.
The company is certified with ISO- 9001- 2008, WRAP
PLATINUM CERTIFIED FACILITY, BSCI, SGS, LI AND FUNG
CERTIFIED, ETI CODE OF CONDUCT.They have an infrastructure
with more than 500 machines and skilled work force of 600
people. Besides administration and quality management is
held by competent qualified personals. Having made an
ambitious start in less than a decade, they have occupied a
dominant position amongst the reliable garment export unit in
Tamilnadu.
After packing the garments, they have 100% checked
through hashima needle detector machine imported from
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Japan to ensure, there is no needle particles left in them, no
garments will be packed unless it is thoroughly checked by the
needle detector and also maintaining the needle policy register
as per the global standard.
The fabric designs are created and developed using in
house skills and talent. A blend colour, composition, texture,
and view is created to appeal the aesthetic sense of the buyer.
They emphasis on design, quality and timely delivery has
contributed in a big way to their growth. They pay attention to
minute details and have also evolved an efficient and
organised production process. The growths in turnover since
inception as well as the increasing number to top labels beingserviced are testimony to the leadership at JAK Industries.
They have very good tie up with the washing laundry
they have capacity to do washing 100,000per day. They can do
stone wash, bleach wash softener and different kind of blast of
the garments.
Their production capacity is 100000 Pieces per month and
lead time is 75 to 90 days based on fabric pattern after confirm
the order.
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JAK Industries start their business by purchasing raw
materials, i.e., fabrics and button from Salem, Ahmadabad,
Calcutta and Delhi and even from abroad. The quantity of raw
materials is fixed upon the orders come from the clients. There
are more than 500 employees in the factory for stitching,
ironing, quality checking and packing and labelling. 80% of the
employees are women.
Turnover of the company
Company earns $ 30000 per month that is Rs 1650000.
And yearly turnover is Rs 19800000. The total salary they are
giving to their employees is Rs 4000000
Product exported
Product range fabric for girls and womens:
Embroidered tops
Beadwork
Pin tuck, smoking
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Printed fabric
Sheer jersey
Glowing night print
Fine knit-viscose and viscose blends etc.
Product range fabric for men
Bio polished polos peached jersey, suede jersey.
Flat back rib-cotton/wool, polyesters cotton.
100% cotton fleece, 80/20 cotton/poly fleece, micro polar.
Fleece, spun/ply fleece, heather fleece.
Moisture wicking fabric chemicals and yarn.
Water repelled stain guard, Teflon coated.
Single mercerized polo solids, jacquard wrappers.
Velour, ottoman pouched.
Sub fleece, cotton model and different modal blends
Organic cotton jersey and pique etc.
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Area of operation
JAK Industries is a 100% Export Company. JAK Industries does
not manufacture for the domestic market, nor does it currently
have any plans to do so. It exports to the countries like USA,
Europe and South Africa.
USA -BUCKLES, PRANA, ROCAWEAR, PEPE JEANS, BILLABONG,
ECKO UNLTD.,
EUROPE -C& A, CARS JEANS, KIABI, DUNES, COOLCAT,
LAKESIDE
SOUTH AFRICA -MARKAMS, TRUEWORTHMAN
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Production plant and machinery:
Company is having good sophisticated and new
technology of plant and machinery which helps employees to
adopt new technology in their work which in turn helps tomaintain good quality of products.
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Work flow model
Receive orders
Suppliers Stocksubstore
Fabric
Cutting section
Weaving
Button fixing
Trimming
Checking
Stain spotting
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Final checking
Ironing
Final presentation
Packing and labelling
Shipping Formalities
Shipping cost will be based on product weight and
shipping country. To find out when you will receive an item,
you need to consider the availability of the items your
customer is ordering as well as the shipping option your
customer selected. All books, CD's and puja items are sourced
locally and are usually available for shipping within 2 days. We
will let your customer know immediately if these items are
unavailable. Offerings for the pujas performed at temples in
and around Chennai will be shipped on the day the pujas areperformed. For pujas performed outside Chennai, the offerings
usually take around 2 days to reach Chennai and are then
shipped. In any case, the offerings will reach your customer 7-
10 days from the date of shipment. If your customer is ordering
from India or would like the offerings to be shipped to an
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To achieve tangible benefits by promoting efficiencies,
productivity and professionalism
Provide competitive prices and genuine products to our clients.
Creating a climate for voluntary compliance by providing
guidance and building mutual trust.
To promote international textile trade.
One that impresses level of business efficiency with integrity
and honesty
To be a world class organization one that becomes a
benchmark for other organizations, its source for new ideas,
information, professional development and quality standards.
STRATEGY USED BY THE COMPANY
Providing better quality product
Maintaining good and long term relationship with buying
agents
Delivery of goods on time
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Providing better amenities to employees
Maintaining good relation with employeed and considering
them as internal customers
DEPARTMENTATION
Department is a process of dividing the large monolithic
functional organization into small and flexible administrative
units.
JAK Industries has a functional departmentalisation. The
departments are:
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1. Personnel Department
2. Production Department
3. Marketing Department
4. Financial Department
Personnel Department
JAK Industries is having a well governed human resource
department, which is concerned with the creation of
harmonious relationship among its employees, bringing about
their utmost individual development. The HRD has a control
over the employees of all other functional departments. They
take the responsibility of maintaining various reports and
documents. Few documents maintained by Human Resource
Manager are as follows
Design and procurement
Process control
Inspection and test status of dies
Document and data control
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Production Department
The production department involves. The technical staff
basically machines handling and technically skilled staff.
The supervisory staffs are having good relations among
the subordinates. The supervisors have enough skill and
knowledge about their work and production process and they
control the employees to work efficiently. And also the various
training programs are conducted o develop their supervisory
skill.
Production planning
Material planning
Process control
Productive and cost control
Marketing department
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The marketing department is held by managing director,
Mr. P. J. Sudhakar itself. The main task of marketing
department is to deal with various buying agencies.
Financial department
The financial officer is the head of the accounts
department. He is assisted by the chief accountant andaccounts officers. All the cash transactions are controlled by
finance department. All financial decisions are taken by
accounts department. The company is banked with Dena Bank,
nungambakkam.
REGISTRATION OF EXPORTERS
Registration with Reserve Bank of India (RBI)
Prior to 1997, it was necessary for every first time
exporter to obtain IEC number from Reserve Bank of India (RBI)
before engaging in any kind of export operations. But now this
job is being done by DGFT.
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Registration with Director General of Foreign Trade
(DGFT)
For every first time exporter, it is necessary to get
registered with the DGFT (Director General of Foreign Trade),
Ministry of Commerce, Government of India.
DGFT provide exporter a unique IEC Number. IEC Number
is a ten digits code required for the purpose of export as well
as import. No exporter is allowed to export his good abroad
without IEC number.
However, if the goods are exported to Nepal, or to
Myanmar through Indo-Myanmar boarder or to China through
Gunji, Namgaya, Shipkila or Nathula ports then it is not
necessary to obtain IEC number provided the CIF value of a
single consignment does not exceed Indian amount of Rs. 25,
000 /-.
Application for IEC number can be submitted to the
nearest regional authority of DGFT. Application form which is
known as "Aayaat Niryaat Form - ANF2A" can also be
submitted online at the DGFT web-site.
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While submitting an application form for IEC number, an
applicant is required to submit his PAN account number. Only
one IEC is issued against a single PAN number. Apart from PAN
number, an applicant is also required to submit his Current
Bank Account number and Bankers Certificate.
A amount of Rs 1000/- is required to submit with the
application fee. This amount can be submitted in the form of a
Demand Draft or payment through EFT (Electronic Fund
Transfer by Nominated Bank by DGFT.
EXPORT DOCUMENTS
Shipping Bill / Bill of Export
Customs Declaration Form
Dispatch Note
Commercial invoice
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Consular Invoice
Customs Invoice
Legalised / Visaed Invoice
Certified Invoice
Packing List
Certificate of Inspection
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
Shut Out Advice
Short Shipment Form
An exporter without any commercial contract is
completely exposed of foreign exchange risks that arises due
to the probability of an adverse change in exchange rates.
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Therefore, it becomes important for the exporter to gain some
knowledge about the foreign exchange rates, quoting of
exchange rates and various factors determining the exchange
rates. In this section, we have discussed various topics related
to foreign exchange rates in detail.
Export from India required special document depending upon
the type of product and destination to be exported. Export
Documents not only gives detail about the product and its
destination port but are also used for the purpose of taxation
and quality control inspection certification.
Shipping Bill / Bill of Export
Shipping Bill/ Bill of Export is the main document required by
the Customs Authority for allowing shipment. A shipping bill is
issued by the shipping agent and represents some kind of
certificate for all parties, included ship's owner, seller, buyer
and some other parties. For each one represents a kind of
certificate document.
Documents Required for Post Parcel Customs Clearance
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In case of Post Parcel, no Shipping Bill is required. The relevant
documents are mentioned below:
Customs Declaration Form - It is prescribed by the
Universal Postal Union (UPU) and international apex body
coordinating activities of national postal administration. It is
known by the code number CP2/ CP3 and to be prepared in
quadruplicate, signed by the sender.
Despatch Note- It is filled by the exporter to specify the
action to be taken by the postal department at the destination
in case the address is non-traceable or the parcel is refused to
be accepted.
Commercial Invoice - Issued by the exporter for the full
realizable amount of goods as per trade term.
Consular Invoice - Mainly needed for the countries like
Kenya, Uganda, Tanzania, Mauritius, New Zealand, Burma,
Iraq, Australia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar etc. It is
prepared in the prescribed format and is signed/ certified by
the counsel of the importing country located in the country of
export.
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Customs Invoice - Mainly needed for the countries like
USA, Canada, etc. It is prepared on a special form beingpresented by the Customs authorities of the importing country.
It facilitates entry of goods in the importing country at
preferential tariff rate.
Legalised / Visaed Invoice - This shows the seller'sgenuineness before the appropriate consulate or chamber or
commerce/ embassy.
Certified Invoice - It is required when the exporter
needs to certify on the invoice that the goods are of a
particular origin or manufactured/ packed at a particular place
and in accordance with specific contract. Sight Draft and
Usance Draft are available for this. Sight Draft is required when
the exporter expects immediate payment and Usance Draft is
required for credit delivery.
Packing List - It shows the details of goods contained in
each parcel / shipment.
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Certificate of Inspection It is a type of document
describing the condition of goods and confirming that they
have been inspected.
Black List Certificate - It is required for countries which
have strained political relation. It certifies that the ship or the
aircraft carrying the goods has not touched those country(s).
Manufacturer's Certificate - It is required in addition to
the Certificate of Origin for few countries to show that the
goods shipped have actually been manufactured and is
available.
Certificate of Chemical Analysis - It is required to
ensure the quality and grade of certain items such as metallic
ores, pigments, etc.
Certificate of Shipment - It signifies that a certain lot of
goods have been shipped.
Health/ Veterinary/ Sanitary Certification - Required
for export of foodstuffs, marine products, hides, livestock etc.
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Certificate of Conditioning - It is issued by the
competent office to certify compliance of humidity factor, dryweight, etc.
Antiquity Measurement It is issued by Archaeological
Survey of India in case of antiques.
Shipping Order - Issued by the Shipping (Conference)
Line which intimates the exporter about the reservation of
space of shipment of cargo through the specific vessel from a
specified port and on a specified date.
Cart/ Lorry Ticket - It is prepared for admittance of the
cargo through the port gate and includes the shipper's name,
cart/ lorry No., marks on packages, quantity, etc.
Shut Out Advice - It is a statement of packages which
are shut out by a ship and is prepared by the concerned shed
and is sent to the exporter.
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Short Shipment Form - It is an application to the
customs authorities at port which advises short shipment of
goods and required for claiming the return
Learning experience
JAK Industries has given me an opportunity to know about the
organisational structure, formalities and its working.
This training has given me an opportunity to know about the
industrial world. Being with the company helped to learn how
the management theories and concepts are applied in an
organisation.
Came to know about the importance of documentation and
maintaining of data in the organisation.
Got to know about what merchandiser does in an export
garments.
How to manage the fabric store department in garments
industry.
Got to know about various departments and their functions and
how they interrelated.
Importance of working together, training to workers and
employees.
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It gives an opportunity to see how few managers managed a
large number of employees and machine to run the company
with a profit.
Conclusion:
The firm that I underwent was the ideal firm as it is a
small firm and I had training in almost all the departments.Working in an export organisation, I could connect with a few
concepts that have been taught in the classroom.
Firstly, the time period for the internship is rather short
and there one can only skim the surface of the various aspects
involved in export. Secondly, companies under which we do
our training dont really have an idea about what exactly is
expected from them. So, there should be more communication
between the company and the teachers so they can impart the
right kind of training to the students.
Overall I can say that the experience has been rewarding
and I am happy that I could be part of such an exciting
internship.