Chapter 1 Introduction

An Analytical study on Carpet Exports in
European Carpet Co.
EUROPEAN CARPET COMPANY
A Project Report submitted in partial fulfillment of the

requirements
For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
(Industry Integrated)
TO
MADURAI KAMARAJ UNIVERSITY, MADURAI
BY
ABHISHEK RANJAN SINGH
Enrollment No: A8754903 (2008 – 2010)
Under the guidance of

PROF. Dr. VENU GOPAL
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European Carpet Co.
CERTIFICATE
This is to certify that the project report
AT
A Project Report submitted in partial fulfillment of the

requirements
For the award of the degree of
TO
Is a record of Training carried out by

ABHISHEK RANJAN SINGH
Under my supervision and guidance and that no part of this

report has been submitted for the award of any other degree
/diploma/fellowship or similar titles or prizes.
FACULTY GUIDE
PROF. Dr. VENU GOPAL
2
European Carpet Co.
STUDENT’S DECLARATION
I hereby declare that the Project report conducted at
Under the guidance of
Prof. Venu Gopal
Submitted in partial fulfillment of the requirements for

the degree of
TO
Is my original work and the same has not been

submitted for the award of any other
degree/diploma/fellowship or other similar titles or
prizes
Place: Bangalore ABHISHEK

RANJAN SINGH
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Date:
Enrollment No: A87540903
CONTENTS
SL.NO TOPIC PAGE NO.
CHAPTER 1: INTRODUCTION
1.1 General introduction. 1

1.2 Industry profile. 2-4
a. Origin and Development of the industry. 2
b. Growth and present status of the industry. 2-3
c. Future of the industry. 3-4
CHAPTER 2: PROFILE OF THE ORGANIZATION
2.1 Origin of the Organization 5

2.2 Growth and development of the organization 6
2.3 Present status of the organization 6-11
2.4 Functional departments of the organization 12
2.5 Organization structure and organization chart 13
2.6 Product and service profile of the organization 14-41
competitors.
2.7 Market profile of the organization 42
CHAPTER 3: DISCUSSION TRAINING
3.1 Students work profile (role and responsibilities) 43

3.2 Description on live experience 44
CHAPTER 4: STUDY OF SELECTED RESEARCH PROBLEM
4.1 Statement of research problem 45

4.2 Statement of research objectives 45-46
4.3 Research design and methodology 46-49
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4.4 Analysis of data 49-59

4.5 Summary of findings 59-60
CHAPTER 5: SUMMARY AND CONCLUSION
5.1 Summary of learning experience 61-62

5.2 Conclusion and recommendations 62-63
Appendix 64-67
Bibliography 68
CHAPTER 1
INTRODUCTION
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1.1 General Introduction About The sector
History of the carpet industry in India
Woolen carpets were known in India as early as 500 B.C. References to woven mats
and floor coverings can be found in ancient and medieval Indian literature. But the
most famous type of Indian carpets, pile carpets came to India in the reign of Akbar
in 16th century.
He in 1580A.D. brought certain Persian carpet weavers to India and established

them here. The art grew and flourished here. It was modified as per the royal tastes
and mixed with the Indian arts. The Persian carpets were thus indianized. It spread
to the whole subcontinent with each area having its own specialties.
From the beginning, wool or silks have been the basic material of the knotted
carpets. The wool may have a variety of origins as per the type of carpet being
made. Silk knots are also used in Kashmir region. The patterns varied from vines
and floral patterns, animal and bird figures and geometric and calligraphic patterns.
Rugs from Akbar's reign (1556-1605) used cotton warp and wool pile and color
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scheme had multiple shades of blues, greens, and other colors on a red base. The
patterns were an adaptation of Persian style but latter modified to Indian tastes.
Carpets of Jahangir's reign (1605-27) were more refined. Materials like silk and
pashmina were used that allowed greater number of knots to be incorporated.
Patterns resembled miniature paintings. Subtle gradations, and shadings with yarns
were themselves artistic. The patterns were a reflection of manuscript paintings.
They were technically refined in both design and construction. The carpets had
scrolling vines, flowering plants, and more naturalistic animals in pictorial or overall
pattern.
During Shahjahan's reign (1628-58) art of carpets had reached new heights Warps
and wefts of fine silk yarns allowed as many as 2,000 knots per square inch. Silk or
Pashmina piles gave the carpets a velvet like texture. Yarn shading was as
sophisticated as in Jahangir's reign. Flowers were now the primary elements of
design.
Though during the reign of Auranzeb (1658 onwards), all crafts saw a downfall of
almost all crafts, carpet craft sustained. Reason may be that they were required for
all religious purposes. The patterns were primarily floral all over with at times
geometric or calligraphic trims.
Chinese and European patterns also influenced the art in their own way. With their
mythical characters finding way in the carpets, it can be clearly seen. Calligraphy
influenced the carpet craft as it did the other crafts.
Though like all other crafts, carpet making also saw a downfall for sometime, the
craft sustained in the traditional families.
The Indian carpets are considered most technically accomplished classical carpets.
The carpet weavers over the time have grown artistically. Indian Carpets are
renowned for their exquisite designs, elegance, attractive colors and workmanship.
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AGRA CARPET CLUSTER INTRODUCTION
Agra is known for natural vegetable dyes. Since it was the base of Akbar's empire,
the artists were first established here. The place is known for Persian style carpets.
Agra designs emphasize elegance and simplicity surrounded by bold floral borders.
Turkmen and Abussan varieties are also famous. They are known for realistic bold
patterns. Carpet weaving in India, is also a rural and domestic handicrafts, which is
mostly done for export purpose. Iranian weavers were the originators of carpet
weaving, with Iranian designs, in this country. These designs besides the high quality
of Cashmere wool resulted the flourish of Indian carpet. Dimensions of handmade
carpets depend on
order. Carpet industries are skilled based industries. Carpet Industries of Agra is
having its impact over domestic as well as foreign buyers. The main importing
countries / areas are middle East Europe, America etc.. In the radius of 40 km. Of
Agra city there are any small weaver are engaged in city as well as rural areas. Agra
– the city of Taj, is not only a tourist destiny but has its equal importance in the global
trade and industrial production. People feel to visit Agra for its warm hospitality and
also for widen one’s own scope of business and trade.
Carpet manufacturing cities of India

India's silk Carpets are World fame as well as price factor of Indian Carpet is most
competitive beside its durability and long life.
Products-Types of Carpets:_
Carpet means one type of thick fabric equipped with extra yarn on its surface-fabric
which is termed as 'Pile'. This pile is produced by the support of warp yarn or support
of weft yarn. Woven carpets are known 'Ax-minster Carpet', and 'Wilton Carpets,
while Pre-manufactured woven or bonded cloth in case of 'Tufted Carpets' or
'bonded Carpets' etc. Basically, Carpet word may be classified as under in three
categories:
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a. One cloth which support the pile with inserting process. It may be woven or
bonded anyone.
b. During continuous weaving, yarn form the pile like Towel cloth Weaving.
Uttar Pradesh - Agra, Bhadohi(Varanasi), Shahjahanpur, Mirzapur and Dehradun are

most renown city but alone MIRZAPUR and BHADOHI are well prominent centre in
world market.
c. To secure the pile in straight position with the help of latex chemical and fabric
termed "secondary backing" to provide long life and stability to Pile life. Woolen
Carpets has monopoly in world market for their outstanding performance and quality
than that of Cotton Carpets, Acrylic Carpets, Synthetic Carpets, Silk Carpets, Jute
Carpets and Blended Carpets etc... Therefore in 1979 approximately, 47.00 million
kg. wool was consumed in Tufted Carpet sector
while approximately. 65 million kg. wool was consumed by rest woolen carpets
sector by eight main carpet oriented wool consuming country.
MAJOR CARPET PRODUCING CENTRES IN INDIA
Uttar Pradesh :
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Varanasi, Bhadohi,
Gopiganj, Khamaria,
Ghosia, Madhosingh,
Mirzapur, Agra,
Shahjahanpur.
Jammu & Kashmir

:
Srinagar, Baramulla,
Anantnag, Jammu,
Leh.
Rajasthan :
Jaipur, Bikaner, Tonk.
Punjab: Amritsar.
Haryana: Panipat.
Madhya Pradesh: Gwalior.
Bihar :
Obra, Danapur, Madhubani

Himachal Pradesh: Dharmshala.
West Bengal :
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Dargeeling.
Andhra Pradesh:
Elluru and Warangal
Karnataka:
Bangalore.
Pondicherry:
Pondicherry
Current Status
The textile industry holds significant status in the India. Textile industry provides one
of the most fundamental necessities of the people. It is an independent industry, from
the basic requirement of raw materials to the final products, with huge value-addition
at every stage of processing.
Today textile sector accounts for nearly 14% of the total industrial output. Indian
fabric is in demand with its ethnic, earthly colored and many textures. The textile
sector accounts about 30% in the total export. This conveys that it holds potential if
one is ready to innovate.
The textile industry is the largest industry in terms of employment economy,

expected to generate 12 million new jobs by 2010. It generates massive potential for
employment in the sectors from agricultural to industrial. Employment opportunities
are created when cotton is cultivated. It does not need any exclusive Government
support even at present to go further. Only thing needed is to give some directions to
organize people to get enough share of the profit to spearhead development.
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1.2 Industry Profile
a) Origin and development of the industry
The Carpet industry in India has made substantial progress in the recent past. Before
something is said about the industry it would be interesting to know as to how the
industry was introduced in India. The art of carpet weaving was brought into the
Indian subcontinent by the great Moghul Emperor - Akbar in the middle of 16th
century and carpet weaving was confined to some important cities of Punjab and
later on in Kashmir and UP.
Nevertheless the main concentration of carpet weaving artisans was in city of

Amritsar. Hand knotted carpets a result of research and practice of hundreds of
years and it is basically this fact which makes it a prized item in the international
trade.
Having its origin in the nomadic life, it is as old as civilization itself. the nomads
handed it over to the civilization of settled population. The earliest evidence of and
knotted carpet was found by the Soviet archaeologist - Rudenko - in 1949 in the Altai
Mountains in Central Asia. The rug discovered belongs to the 5th century BC, having
360,000 knots per square meter (232 knots to a square inch).
During the reign of Moguls, some immigration of carpet weavers took place from
Persia to India and thus the Persian designs were mixed with the local styles to
produce some of the greatest carpets in history. The Mogul hunting carpets are
famous throughout the world. The Mogul kings had set up royal looms for carpet
weaving in Lahore, Agra and Delhi, some of the splendid products of which are still
preserved in museums.
Today oriental carpets are manufactured all over from Balkan to China and from
Caucasus to Indo-Pakistan sub-continent. The art of weaving has been known to
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man since way back in iniquity and the earliest carpet can be traced back to five
centuries before the birth of Christ. It was the orient which specialized in the hand-
knotted rug For the nomad this was an essential convenience. In the carpet, he had
discovered the means for transmitting animal warmth to himself without having to
hunt a wild beast or kill one of his own flock. Carpets were made only in wool. The
use of cotton and silk were symbols of the later refinement of this art and its adoption
by a settled population. For the nomad, the carpet had many uses. It was the ideal
furnishing for a tent. He could sit, eat and sleep on it and also use it and also use it to
perform his worship on. He could also hang a carpet to decorate the walls of his tent
or use it as a saddle-bag. It is therefore not surprising that so much effort and energy
was spent in beautifying these rugs. The Safavi rulers of Iran are given the credit for
making carpets, one of the most sought after of Oriental luxuries. Europeans had
been enchanted by these pieces since they were first taken across by traders.
Carpets frequently found a place in European paintings. This fascination for the
carpet was natural. Their design and color schemes had their own independent logic
and their own unique magic. No two pieces were ever alike. Carpets freed design
from the limitations of space. Intricate patterns could be repeated infinitely. And this
infiniteness could be ordered into finite and intricate symmetry. Abstract symbols
could be woven into dense ornamentation. The geometric could be combined with
the figurative and the floral with the arabesque. Motifs acquired their own, and often
differing meanings. Endless experimentation led to the perfection of natural dyes.
Plants, flowers, vegetables, fruits and even insects were a source of colour. Sour
cream was used to tone down colours. The uses of colour were a part of individual
skills, the nature of various dyes often being a jealousy guarded secret. The large
scale production of carpets in India was begun in the reign of Akbar ( 1556- 1605).
Exquisite pieces were produced under the patronage of the Mogul emperors. The
Moguls were very impressed by and strongly influenced by Persian aesthetic
traditions. And as in every other art form that they patronised, in carpet weaving too,
the Indian craftsmen matched their Persian contemporaries, knot for knot.A new
style of carpets appearing around this time was the pictorial ones. Carpets began to
be treated as if they were canvas for painting. This idea obviously appealed to the
Moghuls with their obsessive love for painting.Carpets appeared as if they were
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pages of miniature paintings - blown up but losing none of their details or their
impact. The carpet weaver successfully mimicked the art of the painter. Knots of
coloured wool or silk easily replaced the strokes of brushes to produce monumental
enlargements of miniature paintings, whether the theme be a royal hunt or just a
landscape. Today, the carpet industry of India is one of the largest and most
consistent supplier of carpets to the world. The Mirzapur Bhadohi belt in Uttar
Pradesh supports the largest hand-loomed carpet industry of the world. Carpets
continue to be hand made. The nature of the art precludes the use of machines.
There is no machine that can tie knots the way human fingers can. Hand knotting
gives the carpet its essential quality – its uniqueness. The colour schemes can be
the same. The design too can be similar, knot by knot. Yet no two pieces can be ever
alike. Each weaver leaves his own indelible imprint - as individual as if it were his
finger prints or his signature. The tools that the weaver uses are simple and these
have basically remained unchanged with time. He uses a knife to cut the yarn after it
has been knotted and a comb to beat in the weft and pile tufts. He then uses a pair of
scissors to smoothen out the pile level. With these simple tools and a skill that he
has inherited over many generations, the Indian craftsmen have created the most
splendorous of specimens. Skill in carpet weaving lies in the tying of individual knots.
Each knot is an entity and has to be co-ordinated with hundreds of thousands of
other knots to create a masterful design. The fineness of the weave is reflected in the
refinement of the curvilinear designs. And the skill takes a generation to acquire.
Children begin early to learn this craft. A skilled craftsman can easily tie about ten
thousand knots in a day. But we must remember that even a moderate size carpet
contains over a million knots, of various colours, is like, as one admirer of the art has
put it, "striking a million knots in such succession and accord as to produce a
sonata". Designs for carpets are conceived in the mind of the designer and then put
on paper so that they can be translated into wool or silk. Designs are preserved in
hieroglyphics to prevent theft or plagiarisation. Designs, when committed to paper
are worked down to the minutest of details - the colour of each knot in every line of
weave is predetermined. In Kashmir, the common method of design translation
(talim) is recitation. The master (Ustad) recites a pattern that he has committed to
memory. He remembers the colour shades of each knot and while he recalls them,
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the weavers automatically translates his instructions into notes. Legends speak of
masters who had committed more than fifty such patterns to memory which they
could recall, reduce or blow up at will. A good carpet is supple, springy and soft to
the touch. Its colours are lustrous and its motifs are delicate and detailed. Indian
carpets are all of these and more. The continuity of superb artistic traditions have
made the Indian carpets the product of a living, thriving art.
b) Growth and present status of the industry.
RECENT TRENDS
Hand-made carpets hold a significant position in the industry worldwide. India, with
a population that is supported by skills or inclination towards such art and craft has
a strong potential for growth. In recent years, the hand-made carpet sector in India
has shown a great progress in areas like capacities, competitiveness, and delivery
time. With proper infrastructural facilities, marketing, commercial support and
government support, this industry has tremendous chances of growth.
To make the process of weaving easier, many developments have taken place in
this sector. At the beginning, only natural dyes were used to obtain subtle and
attractive colours. Madder, a plant which is available almost everywhere, was the
most important colorant of vegetable origin. The roots of the plant provided shades
of red and pink; green was taken from the grass and brown from the kicker tree. All
these were extracted and then used as colours for rugs and carpets. Gradually,
with the advent of synthetic colours, chemical dyes were used in place of natural
dyes. These also offered a wide range of colours that the weavers deftly
incorporated in coloring of carpets. Like colorings, patterns crafting is also an
integral part in carpet weaving. The usual procedure followed by the weaver is to
draw his designs and transfer them to a graph paper on which each square
symbolizes a single knot. Then the paper is divided into several parts depending on
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whether the pattern is intended for the medallion or center or for a part of a
repeated pattern. These sheets of paper are then passed on to the knotting
workshop. There was another method known as ‘Talim’ followed by the weavers of
Kashmir and Amritsar. A coded colour chart is used which shows the number of
knots to be woven in their respective colours. The master-weaver reads aloud the
chart and the weavers follow his directions carefully. The number of knots to be
woven is indicated by signs.
This was a time consuming procedure and was carried out with utmost care.
Today, designing has become an easier task with the availability of CAD/CAM
software's. Weavers have switched to computer-aided designs which enable them
to create designs in a short span of time. Earlier, it was not always possible for the
carpet weavers to make the perfect carpet or a rug which they had imagined or
were instructed. Now, with the help of computer designing, they can visualize the
carpet even before it is made.
For hand-made carpets, looms play a vital role. One of the most commonly used
loom in India is the roller-beam loom. The simplest of these looms is the one with
two horizontal wooden beams between which the wrapped threads are stretched.
One beam is in front of the weaver and the other behind the first. As the knotting
proceeds, the carpet is rolled to the back of the loom. The loom gives shape to the
carpet-weaver's creative expressions. However, today with advances in production
technology, machine-made carpets are becoming increasingly popular.
Besides this, proper trainings are imparted to both male and female weavers to
come up with new designs and better efficiency. Skill development of the weavers
has been a highlight. The government and various agencies, including carpet
manufacturers also have come up with many facilities for the overall growth of the
weavers like regular work, improved working conditions, incentives, health care and
most important of all prevention of child labor.
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Value of Exports
April- March April- March
Value in Rupees Crores Value in U.S. Dollar Million

Percentage Percentage
2009- increase (+) / increase (+) /
Products 10 2008-09 decrease (-) 2008-09 2008-09 decrease (-)
Handmade
Woolen
Carpets,
Rugs,
Drug gets,
Durries
etc.
including
Cotton
Carpets
excluding
Handmade
Woolen
Tufted
Carpets 2076.57 1451.28 (-) 30.11% 515.90 321.50 (-) 37.68%
Handmade
woolen
tufted
carpets 1156.70 983.22 (-) 15.00% 287.40 217.81 (-) 24.21%
Handmade
Silk
Carpets 221.87 210.58 (-) 5.09% 55.12 46.65 (-) 15.37%
Handmade
Staple/
Synthetic
Carpets 69.59 63.65 (-) 8.54% 17.29 14.10 (-) 18.45%
Total 3524.73 2708.73 (-) 23.15% 875.71 600.06 (-) 31.48%
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Statement of estimated Exports for the month of April- March 2009-10 in

comparison with the April- March, 2008-09
Now In the above table we can see that the growth of the carpet industry
Country-wise export data from 2003-04 to 2008-09 (Prove)
S.
No. Country 2005-06 2006-07 2007-08 2008-09(Prov.)
Rupees U.S. $ Rupees U.S. $ Rupees U.S. $ Rupees
Crores Million Crores Million Crores Million Crores U.S. $ Million
1 Argentina 5.99 1.35 6.98 1.53 7.20 1.79 10.52 2.33
2 Australia 35.55 8.03 51.08 11.23 62.56 15.54 68.81 15.20
3 Austria 23.47 5.30 27.92 6.13 19.11 4.75 23.7 5.25
4 Belgium 27.50 6.21 33.80 7.43 58.02 14.41 11.56 2.56
5 Brazil 15.80 3.57 17.25 3.79 17.7 4.41 4.69 1.04
6 Canada 41.93 9.47 49.97 10.98 59.33 14.74 40.27 8.92
7 Denmark 21.90 4.95 26.09 5.73 28.36 7.05 18.82 4.17
8 Finland 15.96 3.61 18.74 4.12 16.27 4.04 14.67 3.25
9 France 47.93 10.83 56.96 12.52 56.78 14.11 48.84 10.82
10 Germany 585.35 132.27 698.22 153.52 646.71 160.67 613.24 135.85
11 Italy 38.25 8.64 45.56 10.01 105.94 26.32 25.5 5.65
12 Japan 54.79 12.38 65.04 14.30 59.83 14.86 48.75 10.80
13 Netherlands 30.75 6.95 36.38 7.99 44.02 10.94 19.09 4.23
14 Norway 7.53 1.70 8.81 1.93 8.94 2.22 6.41 1.42
15 Sweden 24.37 5.51 29.03 6.38 46.41 11.53 18.28 4.05
16 Switzerland 15.14 3.42 18.00 3.95 9.13 2.27 26.86 5.95
17 Spain 32.87 7.43 38.95 8.56 82.07 20.39 24.38 5.40
18 U.S.A. 1533.50 346.52 1833.02 403.04 1668.86 414.62 1359.29 301.12
19 U.K. 158.98 35.92 189.25 41.61 183.07 45.48 112.18 24.85
20 Others 364.50 82.36 423.81 93.19 344.42 85.57 212.87 47.20
Total 3082.06 696.44 3674.86 807.94 3524.73 875.71 2708.73 600.06
The Carpet Export Promotion Council is organizing participation of member-

exporters in the following forthcoming Activities for 2010-11 under the
Scheme of O/o. the DC(Handicrafts), Ministry of Textiles, under the MDA
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Scheme of Ministry of Commerce as per details given below alongwith participation

charges, in anticipation of Government grants, for each of the following activities. It is
an unique opportunity to showcase your products before the potential buyer in these
exhibitions:
Sl. Participation charges & other

No. Activity details
Qinghai Intl. Carpet Exhibition in, Rs.22,500/- for 18 sq.m.
Qinghai Intl. Carpet Exhibition Reimbursement of Air fare not
1. Centre (China) 20-23 June 2010. admissible under MDA Scheme
Rs. 1,20,000/- for approx.12 sq. mtr.
Made in India Exhibition during Reimbursement of MDA Grant will
Decoration + Design Show in be admissible within the ceiling of
Melbourne (Australia) 15-18 July, Rs. 1,50,000/- subject to
2. 2010 Government approval.
Rs. 11,030/- per sq. mtr. for approx.
12 sq. mtr. Reimbursement of MDA
Made in India Exhibition during Grant will be admissible within the
House & Gift Fair in Sao Paulo ceiling of Rs. 1,80,000/- subject to
3. (Brazil) 14-17 August 2010. Government approval.
Ministry of Textiles Scheme of
O/o.DC(H): B.S. Meet during
Textile Hogar in Valencia (Spain) Participation charges under
4. 28th Sept. to 2nd Oct. 2010. finalization.
3rd INDEXPO, Muscat 2010, 28- Participation charges under
5. 30 Sept., 2010 Muscat (Oman) finalization.
B.S. Meet during Japantex 17-19 Participation charges under
6. November 2010 in Tokyo (Japan) finalization.
MDA Scheme of Ministry of
Commerce: Made in India
Exhibition in Capetown (South Participation charges under
7. Africa) 24-26 November 2010 finalization.
8. Made in India Exhibition in USA in Participation charges under
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January/February 2011 finalization.

MAI Scheme of the Ministry of
Commerce: Domoex Intl. Trade
Fair in Hannover (Germany) 15- Participation charges under
9. 18 January 2011 finalization.
Ministry of Textiles Scheme of
O/o,DC(H): Thematic Exhibition
during Spring Fair Intl. in
Birmingham (U.K.) 6-10 February Participation charges under
10. 2011. finalization.
Thematic Exhibition during
Domotex Asia Chinafloor in
Shanghai (China) from 23-25 Participation charges under
11. March 2011. finalization.
Activities in India :
Sl.
No. Activity Participation charges
India Carpet Expo in Varanasi from 29th Oct. to Participation charges under
1. 1st November 2010 finalization
Carpet Exhibition in Srinagar (J&K) during Participation charges under
2. Sept.2010 finalization
Made in India Show of all Textiles based EPCs Participation charges under
3. in Pragati Maidan, New Delhi 2-5 February 2011 finalization
India Carpet Expo in New Delhi Feb./March Participation charges under
4. 2011 finalization
SWOT ANALYSIS
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Indian Carpet industry is a unique kind of industry. It’s highly unorganized with lack of
proper channels. Still, it has managed to show impressive performance in the past.
What is behind this industry which drives the exports? One can not forget that it had
significant share in Indian exports till early 1990s. SWOT analysis will bring forth the
value drivers and stumbling blocks in this industry.
Strengths
• Artistic skills: Over the period, major carpet centers have built huge
network of artistic weavers. The industry currently is employing millions of people
directly and indirectly. They are highly skilled in this areas
Costs : India has an advantage in terms of costs. The labor costs in India are
comparatively low. Also, total cost of producing a carpet is low compared to countries
like Turkey, Iran with out compromising on quality fronts heavily.
Innovations: Innovations is one of the major criteria for selling carpets. As carpets
are considered as luxury items and consumer trends re changing continuously,
innovation is a key for the success. The countries like China which produce low cost
carpets lack in innovations.
Flexibility: Indian carpet industry can manufacture all kinds of carpets. Other
countries have specialized in particular carpets. Also, the carpets of any size can be
manufactured in hand knotted categories. This is not possible in machine made
carpets. There are several kinds of manufacturers which can take small orders or big
orders. Hence, Indian industry can offer wide options to a customer for carpet
purchases.
Weaknesses
• Unorganized: Indian carpet industry is highly
unorganized. Therefore, a lot of activities are duplicated. Hence, it increases the cost
of production. Also, it increases the time of delivery of carpets.
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• Marketing Channels: The carpet manufacturers lack the proper marketing channels.
They find it very difficult to access the customers is increase the market. Therefore,
they are heavily dependent upon the buying agents.
• Infrastructure: The infrastructure is very poor leading to higher time for production
and costs. Also, buyers find it difficult to visit places like Bhadohi for looking designs.
Most of the manufacturers do not have showrooms in the cities to showcase their
creations. There is only one institute which provides courses related to carpet
industry.
Professional Approach: Majority of players lack professional approach for doing the
business. They do not respect delivery time and quality issues. Therefore, buyers
like to deal only through buying agents to control them.
Internal Competition: Many players have entered the industry increasing the
competition. There is a tremendous competition among players on price front and
are willing to offer very low prices even though some one has already taken order.
• Intellectual Property Rights: Many players in the industry copy designs from each
others. There is a lack of respect for intellectual property rights. This demoralizes
players from designing innovative products which is an expensive process.
Opportunities
• Globally, Home furnishing market is moving towards Caret industry. Hence, this
movement offers a new market for Hand tufted Carpets which are comparatively
cheaper to hand-knotted carpets.
• Traditionally, the carpets were purchased by old people. The evolution of modern
design has attracted youth market as well. This segment can be further expanded.
After dealing with China for some time, many players think that India provide better
option and flexibility. This kind feeling can further be tapped
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European Carpet Co.
Carpets are generally considered to be expensive. With use of modern technology,

prices can further be reduced. Also, cutting middlemen will directly benefit the
consumers thereby increasing the demand.
Organized operations can enhance the image of Indian Carpet industry. The
companies like IKEA, Wal-Mart, etc can offer new and larger market to the
manufacturers provided this market is properly tapped.
• Designing skills of India are being acknowledged at global level mainly in garments.
Similar skill set can be developed in the Carpet Industry and used as a marketing
tool.
There is an opportunity for providing stocking and warehousing services to various

players.
Threats
• If not handled properly, current rebound in the industry may not be sustainable.
• Unhealthy competition in the industry kills each other.

• Indian Carpet industry has not completely got rid off of issues like Child labor.
Hence, risk of possible backlash on the industry is a going to be there for
considerable time in the future although some action is being taken on this front.
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European Carpet Co.
c. Future of the Industry
Low – End Carpets Low end carpets like hand-tufted carpets are currently driving
the growth of industry. These carpets have expanded the market as they are
cheaper and affordable for many consumer segments. These segments are going to
drive future growth for a considerable time.
Modern Designs As in the case of low end carpets, modern designs are expanding
the market. Modern design is attracting young consumers. Also, there are a
significant number of consumers who prefer modern designs compared to traditional
designs. These are prominent in countries like Germany, Scandinavia, etc.
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European Carpet Co.
New Markets Traditionally, carpets industry is dominated by buyers from USA &
Germany. However, new markets are emerging for carpets and they are growing fast.
These are basically developing countries or lesser developed countries like Spain, etc.
Growth in income level is the major driver for this.
Big Retailers Big retailers like Wal-Mart, Ikea can drive the growth in the carpet
industry. These players have huge network with a large customer base. Low-end
carpets can be a major product that can be targeted by these players.
Cost Management In Today’s competitive market, price has become an important

factor. Hence, better price can be offered through better costs management. Effective
costs management will always be a competitive advantage to any player. The trend is
common in every industry. Carpet industry is no exception. Better cost management
will reduce the price which can lead to increase in volume sales.
Business Process Up gradation As said earlier, the carpet industry is going through
a major change. Timely delivery, better price and high quality products can only help
carpet manufacturers for survival. Business Process Up gradation is the tool for
achieving this. All these factors will definitely improve the present market as well as
expand in to new markets. Otherwise, it’s going to be difficult for the carpet industry to
grow.
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European Carpet Co.
CHAPTER 2
PROFILE OF THE
ORGANIZATION
2.1 Origin of the organization
European Carpet Company has been established in 1976 founded by late HAJI
MOHD. FORUQUE ANSAARI and late ZAFRUDDIN ANSAARI. In 1984 company
has been registered from govt. authority having start export to Europe. in 1986
company has been registered from govt. authority having start export to USA also.
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European Carpet Co.
European Carpet Company manufactures carpet and export to European and US

countries companies manufacturing units are located at…..
a. BHADOHI
b. MIRZAPUR
c. SHAHJAHANPUR
d. MAHARAAJGANJ
Companies international showroom located at BHADOHI where several countries

importers come for the business purpose.
European carpet companies started their business with the capital of 5 lakh Rs. And
now the company’s annual turnover is more than 100 cr Rs.
2.2 Growth and Development of the organization
A European carpet company is growing in various sectors according to the global

demand. Company works for betterment of the carpet industry keeping the following
goals in mind:
■ Work towards eradicating social injustices
■ Increase the standard of living of the weavers
■ The promotion of new designs, as per the international demand, so as to bring

more work to the weavers thereby accelerating income and prosperity.
■ Working for the empowerment of women. Empowering women for us implies

influencing strongly not only on their economic life (income and earning potential)
but also their personal life (self-esteem and influence on family decisions). We give
them equal priority on wage levels, participation in decision-making and labor
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European Carpet Co.
standards
■ Uplifment of the weavers' community by creation of facilities which enhance the

efficiency of the weavers through carpet weaving which in turn lead to the economic
growth of the industry.
■ Enhancing the skill of the workers through training and exposure

■ Non involvement of middlemen, making the weavers free from exploitation and
under payment.
■ Promotion of the research for new technology to brings the Indian carpet weaving
industry closer to the international market.
■ Helping the weavers in becoming productive and contributing members of their
communities.
■ Providing prospects for the overall personality development as health, education,
including children's education etc
■ Welfare schemes through microfinance which help the artisans get motivated for
becoming financially sound and able to hold
assets like their own looms.
2.3 Present status of the organization
1. European carpet company started their business with the capital of 5 lakh
Rs. And now the company annual turnover is more than 100 cr Rs.
2. European carpet companies has started its 1976 as a local marketing

business company but currently company is exporting carpets in European
and US countries.
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European Carpet Co.
3. European carpet companies started exporting only PERSIAN CARPETS

but now company is exporting hand tufted carpet , handloom carpet, wool
carpet, and machine woven carpet.
4. European carpet companies has more than 200 employees.
Award and achievements:
Our strength lies in consolidating our customer’s imagination and thereby

customizing each process of product creation. We possess an exclusive range of
designs that are quintessentially characterized by authenticity and versatility.
Owing to its exquisite designs and socially appropriate business practices, the
Company has been honored with several prestigious accolades and awards for its
outstanding performance in the carpet industry. These include:
 ‘Sankalp 2010 : Social Enterprise Awards & Investment
Forum’ by Sankalp Forum (2010)
 ‘Corporate Social Responsibility Award’ by FICCI (2010)
 ‘Indian Achievers Award For Business Excellence’ by Indian
Achievers forum (2010)
 ‘Award of Excellence - Floor Covering’ by HFN (2009)
 ‘American Graphic Design Award ’ by Graphics Design USA (2009)
 'Best SME for CSR ' by Business Today & Yes Bank (2009)
 ‘Star Export House’ by Ministry of Commerce, Government of India
(2009)
Certification:
9001:2008 Quality is a nerve center of our company without which we won't have
survived in this industry and we know the importance of it. We are an ISO
9001:2008 certified company and our strategies always revolve around quality.
The reason of our progressive growth is our range of quality products, which is
acceptable around the world. Our main area of thrust is quality, which is well
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European Carpet Co.
maintained and promoted by highly qualified and dedicated workforce. We have

gained ISO certification for providing high quality services.
We have been using stringent quality measures to check the quality of our
products. We have a quality management team to supervise the quality checkups
by the time of production and before shipment of the products. We always strive to
provide our clients quality products and get the maximum customer satisfaction by
providing world class customer service. Our worldwide clients have appreciated
the quality of our products.
We do everything it takes to ensure that the gear you buy has the level of quality
you expect. That's the main reason our products are legendary for quality and
durability. Quality is our most successful product. It is the key to our success,
today and tomorrow.
ISO 14001 is an internationally accepted standard that sets out how you can go
about putting in place an effective Environmental Management System (EMS).
The standard is designed to address the delicate balance between maintaining
profitability and reducing environmental impact; with the commitment of your
entire organization, it can enable you to achieve both objectives.
Furthermore, it assists you to ensure compliance with environmental legislation

and reduces the risk of penalties and possible litigation. Demonstrating
commitment to the environment can transform your corporate culture externally by
opening up new business opportunities with environmentally aware customers or
clients. Internally, it can improve employee ethics and the workplace. ISO
14001:2004 compliance can also provide your company with a better use of
energy and resources, and reduce cost.
2.4 FUNCTIONAL DEPARTMENTAION OF THE ORGANIZATION
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European Carpet Co.
Marketing and sales - will try and maximize the level of sales by carrying
out market research and promoting the goods or service through a
motivated sales team;
Human resources - ensures the business has the best staff for the job and
that they are able to work effectively in a safe environment;
Research and development - will help the business remain competitive by

developing new goods and services and updating the existing one.
Finance - will keep a record of all money coming in and going out of the
business. They have responsibility for securing finances for future
expansion and paying staff and suppliers;
Production – this is the department which needed to an every

organization for efficiently and effectively produces goods and with the
help of better and skilled employees and with the help of services.
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European Carpet Co.
2.5 ORGANIZATION STRUCTURE AND ORGANIZATIONAL CHART
2.6 Product and service Profile of the Organization Competitors:
There are lots of competitors of the organization in India and across the world.
They are exporting several verities of carpets and they are providing service also.
Along with the demand of varieties of the carpets, service is also needed by the
importers for making customers satisfactions.
Types of Products
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European Carpet Co.
Woven
The carpet is produced on a loom quite

similar to woven cloth and is usually a cut
pile although looped pile carpets of
woven construction are not unheard of.
[3]
Normally many colored yarns are used
and this process is capable of producing intricate patterns from pre-determined
designs(although some limitations apply to certain weaving methods with regard to
accuracy of pattern within the carpet). These carpets are usually the most expensive
due to the relatively slow speed of the manufacturing process.
Needlefelt
These carpets are more technologically advanced. Needle felts are produced by
electrostatic attraction of individual synthetic
fibres forming an extremely durable carpet.
These carpets are normally found in the
contract market such as hotels etc. where
there is a lot of traffic.
Knotted
On a knotted pile carpet (formally,

a supplementary weft cut-loop pile carpet), the structural weft threads alternate
with a supplementary weft that rises at right angles to the surface of the weave. This
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European Carpet Co.
supplementary weft is attached to the warp by one of three knot types (see below),
such as shag which was popular in the 1970s, to form the pile or nap of the carpet.
Knotting by hand is most prevalent in Oriental rugs and carpets. Kashmir carpets are
also hand-knotted.
Tufted
These are carpets that have their pile injected into a backing material, which is itself
then bonded to a secondary backing comprising a woven hessian weave or a man
made alternative to provide stability. This is the most common method of
manufacturing of domestic carpets for floor covering purposes in the world.
Others
A flatweave carpet is created by interlocking warp (vertical)

and weft (horizontal) threads. Types of oriental flatwoven
carpet include kilim, soumak, plain weave, and tapestry
weave. Types of European flatwoven carpets include
Venetian, Dutch, damask, list, haircloth, and ingrain (aka
double cloth, two-ply, triple cloth, or three-ply).
A hooked rug is a simple type of rug handmade by pulling

strips of cloth such as wool or cotton through the meshes of
a sturdy fabric such as burlap. This type of rug is now
generally made as a handicraft.
(Embroidery)
Armenian embroidery carpet, XVIII c., Echmiatsin, Treasury
Unlike woven carpets, embroidery carpets are not formed on a loom. Their pattern is
established by the application of stitches to a cloth (often linen) base. The tent stitch
and the cross stitch are two of the most common. Embroidered carpets were
traditionally made by royal and aristocratic women in the home, but there has been
some commercial manufacture since steel needles were introduced (earlier needles
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European Carpet Co.
were made of bone) and linen weaving improved in the 16th century. Mary
Stewart Queen of Scots is known to have been an avid embroiderer. 16th century
designs usually involve scrolling vines and regional flowers (for example,
the Bradford carpet). They often incorporate animal heraldry and the coat of arms of
the maker. Production continued through the 19th century. Victorian embroidered
carpet compositions include highly illusionistic, 3-dimensional flowers. Patterns for
tiled carpets made of a number of squares, called Berlin wool work, were introduced
in Germany in 1804, and became extremely popular in England in the 1830s.
Embroidered carpets can also include other features such as a pattern of shapes, or
they can even tell a story.
Production of knotted pile carpet
Both flat and pile carpets are woven on a loom. Both vertical and horizontal looms
have been used in the production of European and Oriental carpets in some colors.
The warp threads are set up on the frame of the loom before weaving begins. A
number of weavers may work together on the same carpet. A row of knots is
completed and cut. The knots are secured with (usually one to four) rows of weft.
There are several styles of knotting, but the two main types of knot are
the symmetrical (also called Turkish or Ghiordes) and asymmetrical (also called
Persian or Sienna).
Flag of Turkmenistan
Contemporary centers ofcarpet

roductionare: Kashmir, Iran (Tabriz), Afghanistan, Azerbaijan, India, Turkey, Norther
n Africa, Pakistan, Nepal, Spain, Turkmenistan, and Tibet.
The importance of carpets in the culture of Turkmenistan is such that the national
flag features a vertical red stripe near the hoist side, containing five carpet gulls
(designs used in producing rugs).
Kashmir (India) has World Famous Hand knotted carpets. These are usually of Silk
and some woolen carpets are also woven.
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European Carpet Co.
Child labor has often been used in Asia. The Rug mark labeling scheme used
throughout Europe and North America assures that child labor has not been used:
importers pay for the labels, and the revenue collected is used to monitor centers of
production and educate previously exploited children.[4]
Fibers and yarns used in carpet
The Pitcher and mug on the background of a carpet.
Carpet can be made from many single or blended natural and synthetic fibers. Fibers
are chosen for durability, appearance, ease of manufacture, and cost. In terms of
scale of production, the dominant yarn constructions are polyamides (nylons) and
polypropylene with an estimated 90% of the
commercial market.[5]
Nylon
Nylon is the most common material for construction

of carpets. Both nylon 6 and nylon 66 are used.
Nylon can be dyed topically or dyed in a molten state
(solution dying). Nylon can be printed easily and has
excellent wear characteristics. In carpets Nylon
tends to stain easily because it possesses dye sites on the fiber. These dye sites
need to be filled in order to give Nylon any type of stain resistance. As nylon is
petroleum-based it varies in price with the price of oil.
Polypropylene
Polypropylene is used to produce carpet yarns because it is inexpensive. It is difficult

to dye and does not wear as well as wool or nylon. Large looped Berber carpets
made from this fiber are usually only suited for light domestic use and tend to mat
down quickly. Berber carpets with smaller loops tend to be more resilient and retain
their new appearance longer than large looped Berber styles. Commercial grade
level-loop carpets have very small loops, and commercial grade cut-pile styles are
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European Carpet Co.
well constructed. When made with polypropylene (also called Olefin) these styles
wear very well, clean easily and are suitable for areas with heavy foot traffic such as
offices. Commercial grade carpets can be glued directly to the floor or installed over
a 1/4" thick, 8-pound density padding. Outdoor grass carpets are usually made from
polypropylene.
Wool and wool-blends
Wool has excellent durability, can be dyed easily and is fairly abundant. When
blended with synthetic fibers such as nylon the durability of wool is increased.
Blended wool yarns are extensively used in production of modern carpet, with the
most common blend being 80% wool to 20% synthetic fiber, giving rise to the term
"80/20". Wool is relatively expensive and consequently a small portion of the market.
Polyester
The polyester known as "PET" (Polyethylene Terephthalate) is used in carpet

manufacturing in both spun and filament constructions. After the price of raw
materials for many types of carpet rose in the early 2000s, polyester became more
competitive. Polyester has good physical properties and is inherently stain-resistant
because it is hydrophobic, and, unlike nylon, does not have dye sites. Color is
infused in a molten state (solution dyeing). Polyester has the disadvantage that it
tends to crush or mat down easily. It is typically used in mid- to low-priced carpeting.
Another polyester, "PTT" (Polytrimethylene terephthalate) , also called Sorona or

3GT (DuPont)or NorTerra (Shell), is a variant of PET. Lurgi Zimmer PTT was first
patented in 1941, but it was not produced until the 1990s, when Shell Chemicals
developed the low-cost method of producing high-quality 1,3 propanediol (PDO), the
starting raw material for PTT NorTerra Polymers. PTT is similar to polyester, but its
molecules have a "kink", similar to a spring, that makes the fiber more crush
resistant, resilient, and easy to clean. PTT also does not have dye sites, and is
inherently stain resistant because color is infused in a molten state. Carpets made
with PTT dry quickly and are resistant to mold.
The binding in woven carpet is usually cotton and the weft is jute.
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European Carpet Co.
Carpet binding
Carpet binding is a term used for any material being applied to the edge of a carpet
to make a rug. Carpet binding is usually cotton or nylon, but also comes in many
other materials, such as leather. Natural binding, in other words, binding not made
from synthetic material is frequently used with bamboo, grass, and wool rugs, but is
often used with carpet made from other materials.
Early carpets
The Pazyryk Carpet, among the oldest surviving carpets in the world
The hand-knotted pile carpets probably originated in southern Central Asia between
the 3rd and 2nd millennium BCE, although there is evidence of goats and sheep
being sheared for wool and hair which was spun and woven as far back at 6000BC.
[1]
The earliest surviving pile carpet in the world is called the "Pazyryk Carpet", dating
from the 5th-4th century BCE. It was excavated by Sergei Ivanovich Rudenko in
1949 from a Pazyryk burial mound where it had been preserved in ice in the valley of
Pazyryk. The origin of this carpet is attributed to either the Scythians or
the Persian Achaemenids. This richly colored carpet is 200 x 183 cm (6'6" x 6'0") and
framed by a border of griffins.[7]
The earliest group of surviving knotted pile carpets was produced under Seljuk rule
in the first half of the 13th century on the Anatolian peninsula. The eighteen extant
works are often referred to as the Konya Carpets. The central field of these large
carpets is a repeated geometrical pattern. The borders are ornamented with a large-
scale, stylized, angular calligraphy called Kufic, pseudo-Kufic, or Kufesque.[8]
Chinese Carpets
As opposed to most antique rug manufactory practices, Chinese carpets were woven
almost exclusively for internal consumption. China has a long history of exporting
traditional goods; however, it was not until the first half of the 19th century that the
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European Carpet Co.
Chinese began to export their rugs. Once in contact with western influences, there
was a large change in production: Chinese manufactories began to produce art-
deco rugs with commercial look and price point.
The centuries old Chinese textile industry is rich in history. While most antique
carpets are classified according to a specific region or manufactory, scholars
attribute the age of any specific Chinese rug to the ruling emperor of the time. The
earliest surviving examples of the craft were produced during the time of Ch'ung
Chen, the last emperor of the Chen Dynasty, which ended when he died in the early
17th century. The Ming Dynasty, the last before the creation of the Chinese
Republic, succeeded the Chen dynasty.
Persian and Anatolian carpets
The Persian carpet is a part of Persian (Iranian) art and culture. Carpet-weaving in
Persia dates back to the Bronze Age.
The earliest surviving corpus of Persian carpets comes from the Safavid dynasty
(1501–1736) in the 16th century. However, painted depictions prove a longer history
of production. There is much variety among classical Persian carpets of the 16th and
17th century. Common motifs include scrolling vine
networks, arabesques, palmettos, cloud bands, medallions, and overlapping
geometric compartments rather than animals and humans. This is because Islam,
the dominant religion in that part of the world, forbids their depiction. Still, some show
figures engaged either in the hunt or feasting scenes. The majority of these carpets
are wool, but several silk examples produced in Kashan survive.
Iranian carpets are the finest in the world and their designs are copied by weavers
from other countries as well. Iran is also the world's largest producer and exporter of
handmade carpets, producing three quarters of the world's total output and having a
share of 30% of world's export markets. Iran is also the maker of the largest
handmade carpet in history, measuring 60,546 square feet.
Turkish carpets
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European Carpet Co.
Carpets, whether knotted or flats woven (kalin) are among the best known art forms
produced by the Turks. They have protected themselves from the extremes of the
cold weather by covering the floors, and sometimes walls and doorways, with
carpets. These are handmade, of wool or sometimes cotton, with occasional
additions of silk. Even technological advances which enable factory-made carpets
has not stopped the production of rug weaving at cottage-industry level. Although
synthetic dyes have been in use for the last 150 years, hands made carpets are still
considered far superior to industrial carpeting.
Turkish carpets in the 15th and 16th centuries are best known through European
paintings. For example, in the works of Lotto (15th century Italian painter) and
Holbein (16th century German painter), Turkish carpets are seen under the feet of
the Virgin Mary, or in secular paintings, on tables. In the 17th century, when the
Netherlands became a powerful mercantile country, Turkish carpets graced many
Dutch homes. The Dutch painter Vermeer represented Turkish carpets
predominantly to indicate the high economic and social status of the persons in his
paintings. Turkey carpets, as they were known, were too valuable to be put on floors,
except under the feet of the Holy Mother and royalty.
The Turkish carpets have exuberant colors, motifs, and patterns. Because
traditionally women have woven the carpets, this is one art form that is rarely
appreciated as being the work of a known or a specific artist.[17]
Pakistani carpets
The art of weaving developed in the

region comprising Pakistan at a time
when few other civilizations employed
it. Excavations at Moenjodaro and
Harappa - ancient cities of the Indus
Valley civilization - have established
that the inhabitants used spindles and spun a wide variety of weaving materials.
Some historians consider that the Indus Valley civilization first developed the use of
woven textiles.
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European Carpet Co.
Carpet weaving may have been introduced into the area of present-day Pakistan as
far back as the eleventh century with the coming of the first Muslim conquerors, the
Ghaznavids and the Ghauris, from the West. It can with more certainty be traced to
the beginning of the Mughal Dynasty in the early sixteenth century, when the last
successor of Timur, Babar, extended his rule from Kabul to India to found the Mughal
Empire. Under the patronage of the Mughals, Indian craftsmen adopted Persian
techniques and designs. Carpets woven in the Punjab at that time (often called
Lahore carpets today) made use of motifs and decorative styles found in Mughal
architecture.
During the Mughal period, the carpets made on the Indian subcontinent became so
famous that demand for them spread abroad. These carpets had distinctive designs
and boasted a high density of knots. Carpets made for the Mughal emperors,
including Jahangir and Shah Jahan, were of the finest quality. Under Shah Jahan's
reign, Mughal carpet weaving took on a new aesthetic and entered its classical
phase.
2.7 Profile of the organization
The market segment of the organization=
European Carpet Company has good

market segment. It covers European and U.S. countries.
Product Line=
Company has increased the product line. At Starting time of the

organization they have started exporting only PERSSIAN carpet but now company is
exporting hand knotted carpet, hand tufted carpet, wool carpet etc.
TECHNOLOGY=
EUROPEAN CARPET COMPANY is using new kind of technology for delivery of

current needs of the customers. New technologies are in coloring of carpet, weaving,
marketing etc.
MEARKET SHARE OF THE ORGANIZATION=
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European Carpet Co.
EUROPEAN CARPET COMPANY has started it’s business with the capital of 5
lakhs, now annual budget of the organization is approximately 100 crore.
The market share of the organization is increasing consistently.
CHAPTER 3:
DISCUSSION ON TRAINING
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European Carpet Co.
3.1 student’s work profile (roles and responsibilities):
1) Find out buyer’s information:
(a) Web site address
(b)Bank record
(c)Position in the market
2) Sent the quotation to the buyers and solve the queries of the buyers
3) sent the buyers suggestion to the immediate manager.
4) Keep contact with the customers
Initially, the student will be trained for a period of one week, where
(a) a brief introduction to the company ,
(b) details regarding the product and services offered
(c) the work culture, and the
(d) nature of the job etc will be explained
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European Carpet Co.
After the successful completion of the training at the company, the students
(trainees) will be asked to start with their field work.
After the trainee has gained sufficient knowledge about the products and the ways to
handle a client
Description of live experience:
I am keen to work in carpet Industry and amazed by the knowledge, experience,
incentives could be draw from the industry. The Brand name , Customer Loyalty and
satisfaction and the work environment made me choose to undergo my industry
training in carpet Industry.
First I started with my training program which was for 10 days at company
premises. It was a great learning experience. The company knows person engaged
me in various activities that enhanced my knowledge about the carpet Industry.
Soon product training followed I was first introduce to the company and then
was explained the details of the companies various product. At the end of the
session I gave a test of my product knowledge and about the industry. After that our
training ended.
Learning:-
 Always be enthusiastic and practice smiling..
 Be a pulley person rather a push.
 Talk to people, ask the right question and be interesting.
 Believe in metamorphism.
Student’s Contribution to the Organization:
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European Carpet Co.
The contribution done by a student can be explained in the following ways:
• Sourcing of new clients, thus increasing the sales..
• Creating the awareness about the company and its products and services.
• Bringing back the much needed information about the clients’ needs and
expectations to the company, so that the company can carefully design its
products and services from time to time.
• By performing the acts like,
(a) informing the clients about the products.
(b) solving their post-sale queries, if any; would not only increase the
company’s goodwill, but also the client satisfaction level and the brand image of the
company in the market.
CHAPTER 4
STUDY OF SELECTED
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European Carpet Co.
RESEARCH PROBLEM
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European Carpet Co.
4.1 Statement of the Research Problem
INTRODUCTION
A Research Design is the framework or plan for a study which is used as a guide in
collecting and analyzing the data collected. It is the blue print that is followed in completing
the study. The basic objective of research cannot be attained without a proper research
design. It specifies the methods and procedures for acquiring the information needed to
conduct the research effectively. It is the overall operational pattern of the project that
stipulates what information needs to be collected, from which sources and by what methods.
TITLE OF THE STUDY
“An Analytical study of the European carpet company”.
STATEMENT OF THE PROBLEM
This study was undertaken to identify the problems of the

European carpet company and find the way to overcome. . A survey
was undertaken to understand problem of the organization and suggest the appropriate
suggestion for the improvement of the export performance of the organization.
4.2 Statement of Research Objective
 To find out the export benefits of the company.
 To find out the export problems of the company.
 To find out that organization is utilizing the offered government policies or not.
4.3 Research design and methodology
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European Carpet Co.
Type of data collected
There are two types of data used. They are primary and secondary data. Primary data is
defined as data that is collected from original sources for a specific purpose. Secondary data
is data collected from indirect sources. (Source: carpet council of india)
Primary sources
These include the survey or questionnaire method, telephonic interview as well as the
personal interview methods of data collection.
Secondary sources
These include books, the internet, company brochures, product brochures, the company
website, competitor’s websites etc, newspaper articles etc.
Plan of analysis
Tables were used for the analysis of the collected data. The data is also neatly presented
with the help of statistical tools such as graphs and pie charts. Percentages and averages
have also been used to represent data clearly and effectively.
Study area
The study area is “European carpet company” located at BHADOHI. .
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European Carpet Co.
Question:- 1. Is your company exporting products other than

Carpet?
Ans:- NO
Analysis:- European carpet companie is only concentrating on the Carpet

exporting business. So, It is specialized in exporting carpets and organization will
be insured under the” CARPET COUNCIL OF INDIA “for the export.
Question:- 2. How long have you been exporting (in years)?
Ans:- 26 Years…….
Analysis:- European carpet companies has very long time experience for
exporting. As the result it has good market in Europe and U.S. it has very loyal
customer in the same. And loyal customers give the good business. Company
has good opportunity to gain revenue as well as new market. It has good market
position, stability, and brand image, among carpet industry’s major player.
Question:- 3. Total exports last year (in Rs)----
Ans:- 100 crore
Analysis:- European carpet company has started its business with the capital of 5
lacks Rs.Now the organization’s last year exporting budget is showing how
organization is performing the business effectively and efficiently. We can
assume that organization is enjoying the maturity stage.
Question:- 4. Are you (a) Manufacturer (b) Exporter (c) Both
Ans:- Both
Analysis:- European carpet company is a manufacturer as well as exporter so

that he can give good products and services to his client at reasonable
rate. Therefore organization is able to do the business from past 26 years.
Having a manufacture unit organization can deliver the much needed
commodity to the customers.
Question:- 5. Which carpet products you are mainly exporting in the

European market and U.S. Market (Kindly rank them in descending
order- 1 for highest value)
50
European Carpet Co.
Hand tufted 3 Loop pile carpet X Cut pile carpet X

Carpet
Cut and pile 5 Cut and loop X Handloom 2
carpet carpet carpet
Machine woven X Flat woven carpet X Berber carpet X
carpet
Broadloom carpet X Outdoor Carpet X Wool carpet 4
Sisal carpet X Persian Carpet 1
Analysis:- On the basis of given data we can find out that European
carpet company has good product line.Persian carpet is the core product
for the organization.
Question:- 6. Have you started exporting any new carpet products

in last 2 years? If yes,
which products?
Ans:- YES, Wool Carpet
Analysis:- European carpet company got high demand of woolen carpets. Why?
Because in that place wool are easily available into the market and at low
cost company give to that good look and better quality, design to carpets
which giving the higher demand.
Question:- 7. Have you stopped exporting your carpet products in

any European market and U.S. market?
51
European Carpet Co.
Reasons for stopping exports (Please tick

Products Countries whichever applies)
Low Erratic Competitio Fluctuatin Others
Demand Demand n g (Please
Exchange Specify)
Rates
Hand tuffted
Carpet
Loop pile canada 
carpet
Cut pile carpet switzerland  
Cut and pile
carpet
Cut and loop
carpet
Handloom
carpet
Machine
woven carpet
Flat woven
carpet
Berber carpet
Broadloom
carpet
Outdoor
Carpet
Wool carpet
Sisal carpet
Persian Carpet
Analysis:- European carpet company as stopped exporting loop pile Capet to

Canada because of low demand. Dynamic change in the nature of customers,
recessions the demand of loop pile carpet has come down because the prize of
loop pile carpet is more than the Persian, handmade etc. carpet.
52
European Carpet Co.
Organization has stopped exporting cut pile carpet to Switzerland because of low
demand and competition. Wool Carpet is more demanded by the customers
because of climate in Switzerland.
8. Are you planning to start export of carpet products to some

European and U.S. countries where you have not been engaged so
far?
REASONS (Please tick whichever applies)

Products Countries Increasin Profitabilit Less Others
g y Competitio
Demand n
Hand tuffted Los vegas  
carpet
Loop Pile
Carpet
Cut Pile
Carpet
Machine
woven
Carpet
Berber
Carpet
Broadloom
Carpet
Handloom
Carpet
Outdoor
Carpet
Wool Carpet
Sisal Carpet
Cut and
Loop Pile
Carpet
Flat woven
Carpet
Persian Carpet France  
53
European Carpet Co.
Analysis:- European carpet company has expanded its market. Now the company
is exporting hand tufted carpet to LOS VEGAS and PERSIAN carpet to FRANCE.
The reasons behind expanding the market in both countries are same
because improvement in per capita income and standard of living demand
has increased in both countries. Both countries have good buying capacity
and economy so there must be profit.
Question:- 9. Which countries are major competitors in the export of

Indian carpet products? (Kindly write the top to down)
Ans:- (a) Pakistan
(b) Afghanistan
(c) China
(d) Egypt
(e) Nepal
Analysis:- These above countries are having very much small scale industries in
which mostly hand crafted things are being made. Mostly they are producing
high quality products and at their costs are low than the Indian carpets.
Question:- 10. What are the reasons for declining demand of

following products in the European and U.S. market?
(Please tick whichever applies)
Handloo Persia Machine Wool Hand Tufted

m- n Woven Carpe Carpet
Carpet Carpet Carpet t
Lack of market  
demand
54
European Carpet Co.
Competition  
Low export prices
Heavy duties
Lack of Trade   
contacts
Payment problems  
Higher shipping
costs
Non-tariff barriers
Lengthy export     
procedures
Restrictive import     
regulations
Inadequate     
shipping services
Others (Specify)
55
Analysis:- Lengthy export procedure, restrictive import regulations,
inadequate shipping services, are the some reasons for preventing the export.
Question:- 13. Government has implemented various schemes; please

share your experience about those schemes [1 for yes, 2 for no, don’t
Know/ Cannot Say = -9]
Name of Scheme Are you Have you Has it helped

aware of this utilized this improve
scheme scheme export
performance
External Market Development 1 2 2
Assistance Scheme
Rejuvenation, Modernization and 1 1 1
Technology Up gradation of the Carpet
Industry
Credit insures policey 1 1 1
Export incentives 1 1 1
Draw back policy 1 1 1
Krupanidhi Institute of Management education, Bangalore

Analysis:- European carpet company has information about available all the
important schemes offered by the govt. for making export more friendly and
profitable.
Question:- 14. Who are major buyers of carpet products in Europe and
U.S.
Multiple response possible, Kindly rank them; 4 for most important, 3 for
important, 2 for average importance, 1 for less important, 5 for least
important and 0 if not applicable.
Ans:- Major buyers of carpet products in Europe and U.S.
Buyers Rank
Importing firms 4

Individual firms 2
Individual buyers 2
Retail chains 3
Analysis:- Importing firms are the major buyer of the carpets in both Europe and
U.S..so organization is concentrating mainly on the prime customers. The most
important feature of importing firms are that they gives order in bulk. Payment is
also not a big risk for the organization because organization will concern with one
party regarding payment.
After that retail chain buyers are the secondary they also give order into bulk
because they cover the huge geographical market area in the particular country.
Individual firms and individual buyers are the same in the nature.
Question:- 15. Do you advertise your carpet product in European and

U.S. market?
Ans:- NO

Analysis:-European Carpet Company don’t use advertisement because buyer don’t
allow to show the models into the market directly.
Question:- 16. If yes, please rank means of advertising [1 for most

important, 2 for important, 3 for average importance, 4 for less
important, 5 for least important 0 if not applicable]
Newspaper 0 Internet 0
Television 0 Sponsoring events 0
Other (please
specify
Question:- 17. Do you have a website?
Ans:- YES
Question:- 18. Do you use internet for business?
Ans:- YES
Analysis:- European carpet company use internet for business. Company usually
gets the order by the internet. Organization is using internet because world is
changing rapidly and very fast.
Question:- 19. Your past experience in the export markets : [Yes = 1,

No = 2, Don’t Know = -9]
Code
Bad Experience
2
Friction with authority
2
Rejection of Consignment
1
Rejected in one country but Accepted in another (if a bloc)
1

Your consignment got rejected but the same from other country with
1
similar specification accepted
Any Other (Specify_______________________________________________)
Analysis:- Experience of the european carpet company is

good.organization is achivieng the targeted goals in fixed time and still
growing.
Some time products are rejected by the one country because of some
reason(sudden lack of demand,design,etc) but it can be accepted by the
another country.
Question:- 20. Please specify areas in which you would

require assistance to improve export performance.
(rank 1 = most important, 5=least important)
Ran
k
Market information 1
Product improvement / adaptation 5
Market studies 1
Product design 1
Export incentives 1
Quality control 1
Export finance 1
Trade contacts 1
Procurement of raw materials 5
Marketing missions 1
Packaging 5
Export management training 1
Other (Please specify)

Analysis:- For the sales point of view market information or knowledge is very much
important because on the basis of the information organization can set the
target market, target customers market study is required.
Product positioning is also very much determined by the market knowledge. It

points out that where product is existing in the market, where it should move
and where organization should make the strategy for the market penetration.
Product design is also very important because need of the customer is changing
rapidly and every organization wants to deliver the need of the current need of
the customersIt also helps in making the brand into the market because of it’s
unique product.
Question:- 21. What kind of logistical support / assistance would you

want to have from the Government of India, state government, carpet
board to help you in export enhancement?

Problems Expectations
Non imposing of economics zone Government should impose SEZ policy.
Higher interest of income tax Government should give relieve in income tax
rate.
Drawback facilities Govrnment should increase drawback rate with

15% .
Analysis:- This is the common expectations for every organization in the

industry.Government has announced the economic zone but it has not
imposed till the day .
Organizations have the expectation regarding income tax rate.
Organization has the expectation in increment into the drawback policy of the
government.
Question:- 22. What all are the exporting problems you face?
1): Insurance = A long procedure for claiming the insured amount.
Not full claim of the losses.
2): Payments = In payments a lot of risks are there like commercial risks, political
risks, transit risks etc.
3): Transport = in transportation some problems are there like
4): Government Policies.
Analysis:- These are the problems which are faced by the European carpet
company.
Question:- 23.Do you know about ECGC?
Ans:- YES

Analysis:- EXPORT CREDIT GUARANTEE CORPORATION.Europian carpet company
aware about the ECGC and using the benefits.
Question:- 24.what are the benefits of the ECGC?
Ans:-
Question:- 25. What are the problems of ECGC? Assign the number for the problems
(most important = 3, important =2, least important =1)
Ans:-
Problems Number
a) Percentage of coverage. 1
b) Waiting period of claim. 2
c) Resale of unaccepted goods policies. 1
d) High premium rate. 2
e) Exchange rate fluctuation. 3
f) Commercial dispute policy. 1
g) Risks coverage policy 3
Above problems are shown into the graph as under:

Analysis:- Percentage of coverage, Waiting period of claim, Resale of
unaccepted goods policies, High premium rate, Exchange rate fluctuation
,Commercial dispute policy, Risks coverage policy, these are the problems
which organization is facing.
Question:- 26.Do you agree that given reasons are also effecting the export
performances of the organization? Assign the number for the factors (most
important = 3, important =2, least important =1)
Factors Number
Quality culture 3
Information technology 2
Human resource 3

Facility center 1
Market intelligence 2
Raw material 2
Analysis:- Quality control, information technology,hrm,facilty center, market

intelligence, raw material are the some factors that effect the organizational export
performance.
4.5 Summary of findings
From the survey we find that a European carpet company is exporting Persian,
handmade, hand tufted etc. carpet since 26 years in Europe and U.S...
The company is trading in euro and U.S. dollar.
European Carpet Company is performing both business activities manufacturing and

exporting. They are delivering the current needs of the customers.
We can find that organization has started exporting some product into the new market
because of new positive opportunities and stopped some product to the particular
market due to some unfavorable reasons.

Organization is aware about all the major schemes which is offered by the govt. and
carpet export council of the India but in matter of some schemes they are not utilizing
the schemes up-to the mark.
Organization is exporting the products mainly to importing firm’s retail chains as well as
individual firms. Organization is concentrating more importing firms because of the
payment. Organization gets bulk order from the importing firms and get the payments
from one party it self.
Organization is not advertising the products directly into the market. they send their
designs to the council and after the approval they get the from buyer directly because of
the maintain the secret of design they don’t advertise.
Organization has own website and they are using internet facility for the business.
Overall past experience of the organization is satisfactory.
Organization has emphasized the market studies, export incentives, trade contact,
quality control, etc. for the improvement in the export performance of the organization.
A part from these organizations has some problems and organization wants some
assistance from the govt. for the better improvement of the organization.
Along with the benefits which organization is getting by the govt. bank ECGC
organization has some problem regarding payments, insurance, transports, and several
risks etc.
Organization has some factors that affect the export performance of the organization,
e.g. Quality Control, Raw material etc.
If organization will get some reduction in the problem side definitely organization will do
better and also enhance small scale companies.

CHAPTER 5
SUMMARY CONCLUSIONS

5.1 summary of learning experience:
 Apart from theoretical knowledge I got the practical knowledge about the export
activities.
 It also helped me to understand that exporting strategies differ from product to
product.
 It is very important to maintain the proper service otherwise the chances of loose
the customers will be high.
 I also learnt that communication skills are very necessary for convincing the
customers.
 We should follow the code of conduct, riles & regulation and ethical behavior.
 I also learnt that the business and market condition are not always favorable for a
product but it is the strategies that are adopted by the company make them excel
in the unfavorable condition.
 I also come to know about the various policies and schemes of the govt. for
export promotion.
 I also come to know about the procedures and documents of the export
promotion.
 I also come to know about the problems which are faced by the organizations in
export.

 I also come to know about the various steps of promotion that are adopted
different by the company under different situations.
5.2 Conclusion and recommendation
Export is one of the major businesses for the organization and country. It make the
balance of payment of the country. There are lot of problems which wants some
attention and action that can decrees the problem and enhance the export performance
of any organization and along with this it can increase the foreign trade and currency
that can make the balance in balance of payment balance of trade.
In export procedure there are lot of document and procedure are their, if there is any
single mistake, then their will be problem for the organization so, export council make
some arrangement which can reduce the problem of the organization.
e.g. if some mistakes like customers declaration , registration, etc. will be happen by the
both exporters and importers than their will be the problem.
At the time of entering into the new Market some problems are their so embassy should
help in this context providing all the assistance. Some time they provide they should
update the database of current importers information of that particular country.
There problems in insurance recovery:-
a) Long documentation procedures (invoice, packing list, firm registration, party

address etc.)
b) Not fall payment of the claim, some time 10-15% cost deduct from the claim
value.
c) Organization should use the warehouse insurance because something

misshapen will occur then their will be no risk.
d) Insurance company should take little span of time in the payment of the claim.
e) Insurance company should increase the grace period of the commodity.
f) Insurance company should decrease the premium on warehouse insurance plan.

g) These are the several methods of the payments which depends upon the terms
and conditions.
There are several schemes of payments:
a) Payment against FOB value.
b) Document against payment.
c) Document against sight.
d) Document against LC.
Organization should use LC against bank guarantee payment scheme for the
affective payment.
Quality culture:
• Organization should make brand image.
• Organization should assured quality through testing and inspection of raw

materials, process and final products.
• Organization should remove the identified weakness and exploitation of

identified opportunities and removal anticipated threats.
• Diversification of product range.
Market intelligence:
 Organization should create dynamic database of the customers.
 Organization should keep the information of the important raw

materials.

H.R.:
 Organization should recruit qualified workers.
 To cover the entire work force of the organization, short term and training is
required.
 Govt. should cover the entire sector’s labor force through knowledge
integration programmers under taken by the local, regional and international
level seminars and workshops.
Technology :
 Organization should adopt the contact review system through modern

technology.
 Organization should adopt product upgrading benchmarks.
 Organization should new pile technology.
 Organization should adopt modern dyeing equipment for cost effective

and saving time.
 Organization should adopt modern carpet washing, drying and finishing

system.
Process re-engineering:
 Organization should use process re engineering for cost control, productivity

enhancement, echo friendly and socially accountable method for production.
National design bank:
 Govt. should create the national design bank where in all individuals designers
can become members and new design will be developed and it will enhance the
carpet Indian image in the world.
There are two govt. policies:

 Drawback policy: govt. provides 11% on above1000 sq yard and if its below
than this govt. 6-7 % of export duty to the firm.
For enhancing the export in the country govt. should increase the export duty rate
from 11-15% than SSI will become more competitive.
 Import license policy: under the VIKAS KRISHI YOJNA govt. provides 5%
import license.
Govt. should increase the import duty 5-7%.
 Organization should use the existing policy and import the raw materials for
making good products.
Transportation:
 There is lack of transportation e.g.( there is no rail transportation for the goods
from BHADOHI/ MIRZAPUR for shipments. All transported by trucks which are
costlier and tax 4-5 days to reach. The wagons should be attached with the
passenger trains swift movements daily 4/5 wagons are required for this purpose
so govt. should arrange the proper transportation channel.
 Organization should insure all the documentation of shipment and cargo deliver
the product from warehouse.
 Govt. has declared free economic zone but it has not imposed till the day so govt.
should impose the free carpet industry.
 Govt. should provide free duty for raw material.
 Govt. should provide 50% tax in relaxation.
 Govt. should provide global interest rate up-to 365 days period both on post and
pre- shipment.
 Exemption from VAT and SALES TAX on the item is all most 100% exported out
of country.
 Govt. should procure Flexible labor laws:
 Govt. should open new weaving training centers.

 Govt. should start some welfare schemes for carpet industries.
 Organization should have good infrastructure.
 Organization should have primary focus on customer needs and satisfaction

which are helpful for the business success
 Organization should use the ECGC benefits.
RECOMMENDATION FOR ECGC:
 Make the policies simple in the terms.
 Premium is to high as compare to another insurance provider. So decrease the

premium amount.
 ECGC should insure new export firm.
 Percentage of recovery should improve.
 Waiting period should claim for decrease.
 Deduction in loss due to Re-sale of un-accepted goods.
 ECGC should provide the schemes for exchange rates fluctuation.
 ECGC should provide schemes for commercial disputes.
ECGC should provide the scheme for political and commercial risks

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An Analytical study on Carpet Exports in

European Carpet Co.

EUROPEAN CARPET COMPANY

A Project Report submitted in partial fulfillment of the

For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

MADURAI KAMARAJ UNIVERSITY, MADURAI

Enrollment No: A8754903 (2008 – 2010)

Under the guidance of

EUROPEAN CARPET COMPANY

A Project Report submitted in partial fulfillment of the

For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

MADURAI KAMARAJ UNIVERSITY, MADURAI

Is a record of Training carried out by

Under my supervision and guidance and that no part of this

PROF. Dr. VENU GOPAL

I hereby declare that the Project report conducted at

EUROPEAN CARPET COMPANY

Under the guidance of

Prof. Venu Gopal

Submitted in partial fulfillment of the requirements for

MASTER OF BUSINESS ADMINISTRATION

MADURAI KAMARAJ UNIVERSITY, MADURAI

Is my original work and the same has not been

Place: Bangalore ABHISHEK

SL.NO TOPIC PAGE NO.

1.1 General introduction. 1

CHAPTER 2: PROFILE OF THE ORGANIZATION

2.1 Origin of the Organization 5

CHAPTER 3: DISCUSSION TRAINING

3.1 Students work profile (role and responsibilities) 43

CHAPTER 4: STUDY OF SELECTED RESEARCH PROBLEM

4.1 Statement of research problem 45

4.4 Analysis of data 49-59

CHAPTER 5: SUMMARY AND CONCLUSION

5.1 Summary of learning experience 61-62

1.1 General Introduction About The sector

History of the carpet industry in India

He in 1580A.D. brought certain Persian carpet weavers to India and established

AGRA CARPET CLUSTER INTRODUCTION

Carpet manufacturing cities of India

Uttar Pradesh - Agra, Bhadohi(Varanasi), Shahjahanpur, Mirzapur and Dehradun are

MAJOR CARPET PRODUCING CENTRES IN INDIA

Jammu & Kashmir

Jaipur, Bikaner, Tonk.

Madhya Pradesh: Gwalior.

Obra, Danapur, Madhubani

Elluru and Warangal

The textile industry is the largest industry in terms of employment economy,

1.2 Industry Profile

a) Origin and development of the industry

Nevertheless the main concentration of carpet weaving artisans was in city of

b) Growth and present status of the industry.

Value in Rupees Crores Value in U.S. Dollar Million

Statement of estimated Exports for the month of April- March 2009-10 in

Country-wise export data from 2003-04 to 2008-09 (Prove)

The Carpet Export Promotion Council is organizing participation of member-

Scheme of Ministry of Commerce as per details given below alongwith participation