DECATHLON SOURCING PROJECT: To identify the industrial

DECATHLON SOURCING PROJECT:
To identify the industrial potential of the 4 South Indian
States in accordance to the needs of Decathlon’s
processes
JANUARY – APRIL 2015
Submitted by:
Sandipan Ghosh
Batch: 2013-2015
DEPARTMENT OF FASHION MANAGEMENT STUDIES
NATIONAL INSTITUTE OF FASHION TECHNOLOGY
MUMBAI
Acknowledgement
I am grateful to NIFT for providing me an opportunity to do research work on “To identify the
industrial potential of the 4 South Indian States in accordance to the needs of Decathlon’s
processes”. I express my whole hearted thanks to my guide Assistant Professor Yashwant
Misale for his encouragement and moral support in organizing my work and giving me valuable
tips for making it presentable.
I am indebted Mr. Subhadip Dutta and Mr. Raghu Rao my industry mentors who have
guided and supervised me throughout this study.
Lastly, I am also obliged to my friends and colleagues for providing me valuable
suggestions during completion of this project work.
Name: Sandipan Ghosh
Roll no: MUM13MM14
Batch: 2013-15
(Masters of Fashion Management)
Certificate
This is to certify that project entitled “To identify the industrial potential of the 4 South
Indian States in accordance to the needs of Decathlon’s processes” submitted towards the
partial fulfillment of the degree project by Sandipan Ghosh is his original work under my
guidance and the result are based on research done by him.
Assistant Prof. Yashwant Misale
Date: …..../……../……...
Place: NIFT, Mumbai
Declaration
I, hereby declare that the project work entitled “Creating SOP manual for Sourcing
Department at Pantaloons”, Submitted to National Institute of Fashion Technology, Mumbai,
is record of original work done by me under the guidance of Assistant Professor Yashwant
Misale (National Institute of Fashion Technology, Mumbai), and no part of the project has been
copied from any other report or any other were carried by someone else and this have been
submitted for any other degree/award. However, any material taken from any other published
source has been suitably referred and acknowledged at various places.
Date: 15TH May 2015
Name: Sandipan Ghosh
Place: Mumbai
Roll no: MUM13MM14
Centre: Mumbai
Batch: 2013-15
Executive summary
Decathlon is a France based multi-national sports Retail Company with 10 billion Euros revenue
(2014-2015) operating in 23 countries through 975 mega-stores across the world. Currently in
India it operates with 21 mega-stores.
To accelerate manufacturing/duplication of imported products in India and promote the
"MAKE IN INDIA" initiative.
BENEFITS:

Make in India

Milky supply chain

Lower holding costs

Lower lead times

Minimum order quantities

Knowledge transfer

Eco system creation

Accelerate lagging production processes in India (Warp Knits, Plastics, Heavy
Stitching, Electronics, Eyewear)
METHODOLOGY:

Customer Procurement Manager meeting to understand needs

Identifying industrial potential of the 4 Southern States (Andhra Pradesh, Tamil
Nadu, Karnataka, Kerala) through secondary research

Primary research through industry interactions

Acquiring process knowledge

Data consolidation and correlation (Qualitative data into Quantitative form)

Final decision matrix
FINDINGS:
1. Andhra Pradesh:
Go Sectors: Plastics, Leather and footwear, Food processing, Textiles
Developing: Light Engineering, Electronic Hardware
2. Karnataka:
Go Sectors: Textiles and RMG, Light engineering, Electronic Hardware, Food processing
Developing: Leather and footwear, Plastic products
3. Kerala:
Go Sectors: Food processing, light engineering, Electronics
Developing: Leather and footwear, Plastic products
4. Tamil Nadu:
Go Sectors: Plastic, Leather and footwear, Electronics hardware, Woven, Knits and RMG
Developing: Food processing
RECOMMENDATIONS:
1. Complete knock down (CKD) is the way forward
2. Industrial eco system creation is a necessity
3. Promotion through industrial journals
4. Accurate forecasts by the help of global ERPs
5. Further studies required on taxation and logistics front
Table of Contents
LET’S START WITH GLOBAL SPORTS INDUSTRY AND IT’S RETAIL INDUSTRY:
9
1.1 INDIAN MARKET SCENARIO: (by IBEF) ..................................................... 10
1.1.1 Exports - A Momentous Growth...................................................................... 10
1.1.2 Sports Goods Export Promotion Council ........................................................ 10
2. COMPANY HISTORY ................................................................................................... 11
2.1 HISTORY AND THE NEED OF BRANDING: ................................................ 11
2.2 COMPANY CATEGORY: .................................................................................. 12
2.3 EXPANSION: ........................................................................................................ 13
2.4 CONCLUSION & HENRY PORTER’S FIVE FORCES MODEL: ............... 13
3. COMPANY PROFILE: ................................................................................................. 15
4. WHAT IS SOURCING............................................................................................... 17
4.1 NEED OF SOURCING FOR DECATHLON .................................................... 17
4.2 SOURCING METHODOLOGY IN DECATHLON: ....................................... 17
Step 1: Strategic Sourcing Team Meeting (Annual) ................................................. 18
Step 2: Assessing the Supply Market........................................................................ 19
Step 3: Developing the Sourcing Strategy ................................................................ 21
Step 4: Executing the Sourcing Strategy .................................................................. 22
Step 5: Implementation and Integration of the Contractual Agreement ................... 23
Step 6: Supplier Performance Measurement and Improvement ............................... 24
Step 7: Maintenance of Records and Relationships .................................................. 25
4.3 SOURCING STEPS FLOW CHART ................................................................. 26
5. PROJECT UNDERTAKEN ........................................................................................... 28
5.1WHAT DO YOU WANT ME TO DO FOR YOU?(Objectives) ....................... 28
5.2 WHY?(Scope) ........................................................................................................ 28
5.3 NOW LET’S TALK ABOUT RESULTS. HOW ARE YOU GOING TO EVALUATE
MY PERFORMANCE?(Key Performance Indicators ) ......................................... 28
5.4 WHAT IS THE INTEREST OF THE COMPANY FOR THIS PROJECT?(Benefits)
....................................................................................................................................... 28
5.5 HOLD ON A SECOND, WHAT IS A LAGGING PROCESS?(Current Scenario)
....................................................................................................................................... 29
5.6 UNDERSTOOD, AND CPM STANDS FOR? (Need Identification) ............... 30
6. WORKING METHODOLOGY.................................................................................. 31
6.1 RETRO PLAN ...................................................................................................... 31
6.2 IDENTIFYING INDUSTRIAL POTENTIAL: ................................................. 36
6.3 NEED IDENTIFICATION (DEMAND SIDE) .................................................. 39
6.4: PROCESS KNOWLEDGE ................................................................................. 40
6.5: NEED IDENTIFICATION (SUPPLY SIDE) ................................................... 41
6.6: DATA LINKING, TANSFORMATION AND CONSOLIDATION .............. 41
7. FINDINGS ................................................................................................................ 42
7.1 STATE INDUSTRIAL SWOT ANALYSIS ....................................................... 42
7.1.1 ANDHRA PRADESH ..................................................................................... 42
1.
7.1.2. KARNATAKA ............................................................................................... 43
7.1.3. KERALA .................................................................................................... 44
7.1.4. TAMIL NADU ........................................................................................... 45
8. RECOMMENDATIONS ............................................................................................ 47
8.1. Andhra Pradesh ................................................................................................... 47
8.2. Karnataka ............................................................................................................. 48
8.3. Kerala .................................................................................................................... 50
8.4. Tamil Nadu ........................................................................................................... 51
9. DATA TRANSFORMATION AND MATRIX FORMULATION ................................ 52
9.1. INDUSTRIAL SCENARIO ................................................................................ 52
9.2. INFRASTRUCTURE SCENARIO .................................................................... 53
10. LEARNING OUTCOMES: .......................................................................................... 55
11. GLOSSARY: ................................................................................................................ 56
12. WEBLIOGRAPHY: ..................................................................................................... 61
1. LET’S START WITH GLOBAL SPORTS INDUSTRY AND IT’S
RETAIL INDUSTRY:
Estimated value of Sports Industry is about $ 1.5 Trillion (Plunkett Research USA) at 2014.
The Global Retail Sporting goods market holds substantial opportunities for sporting goods suppliers due
to strong product demand in the three market segments: athletic apparel, athletic footwear, and
equipment. Asia and Rest of World represent good growth market for retail sporting goods industry over
the forecast period. According to Lucintel, the market is forecast to reach an estimated $266 billion in
2017 with a CAGR of 4% over the next six years (2012–2017).
The sporting goods industry comprises establishments primarily engaged in the manufacturing and
retailing of sporting goods, such as camping equipment, exercise and fitness equipment, athletic
uniforms, specialty sports footwear, apparel, and accessories. As the study indicates, the global retail
sporting goods industry is highly fragmented. North America currently dominates this market. Some of
the major players in this market are Nike, Adidas, and Dick’s Sporting Goods. A combination of factors
such as demographics and consumer spending impacts market dynamics significantly.
1.1 INDIAN MARKET SCENARIO: (by IBEF)
The words 'sports goods' have become synonymous with the passion that India has for sports. The
sports goods industry in India is nearly a century old and has flourished due to the skills of its workforce.
Being labour-intensive in nature, the industry provides employment to more than 500,000 people. The
nucleus of this industry in India is in and around the states of Punjab and Uttar Pradesh.

Jalandhar in the state of Punjab and Meerut in the state of Uttar Pradesh account for nearly 75
per cent of total production.

Together, the two towns house more than 3,000 manufacturing units and 130 exporters.

About 60 per cent of the sports goods manufactured in Jalandhar consist of different kinds of
inflatable balls.

The Indian sports goods industry also has a presence in the cities of Mumbai, Kolkata and
Chennai, albeit at a lower scale.
1.1.1 Exports - A Momentous Growth
India's share of the global sports goods export market is expected to grow manifold, with the country
establishing the credibility of its goods in the international market. Indian sporting goods are well known
around the world and have made a mark in the global sports goods market. The industry exports nearly
60 per cent of its total output to sports-loving people the world over.

The sports goods market in India was valued at US$ 2 billion in 2012-13. The market is growing
as 35-40 per cent a year and is expected to reach US$ 3.6 billion by 2015. The growth is
expected on account of increasing awareness about health and fitness in the country.

India exported sports goods worth around US$ 256 million in 2013-14 as compared to US$
214.95 million in 2012-13 and registering a growth of about 19 per cent.

The major items to be exported during 2013-14 includes inflatable balls, cricket bats general
exercise equipments, sports nets and protective equipment for cricket.
1.1.2 Sports Goods Export Promotion Council
The Sports Goods Export Promotion Council (SGEPC) promotes the export of sports goods and toys from
India. SGEPC represents the leading 200 manufacturers and exporters of sports goods and toys in India.
2. COMPANY HISTORY
2.1 HISTORY AND THE NEED OF BRANDING:
The company history is a classic case of adaptation to market changes and incorporation of strategies
according to the “pull” of the industry. At a time in 1976 when it was incorporated branding of products
was not a very strong determinant of value addition. This was for the fact that only a few names were
present in the sports retailing arena competing with almost similar products but due to the
contemporary push strategies, huge instauration (gap between demand and supply) and low demand
creation in the market neither was innovation required and nor was branding.
In 10 years with new company’s coming into the market creating a need to have differentiated products
Decathlon went into the mode of co-creating its products best suited to its customer base. So it
started off as a primarily trading brand working in Lille,France. Finally 10 years later in 1996 it went a
step further it creating its own “Passion brands” catering to different sports and adventure universes
(such as team sports, racket sports, hiking etc. ) and creating new “Umbrella brands” (Btwin, Quechua,
Domyos etc.). The brands were further improvised with co-branding through very strong component
brands such as “Shimano” for its Btwin. All strategies incorporated were not successful in the long run
and thus were eliminated after assessment. A few Co-brandings did not come up with best results and
after scrutiny they were subsequently dropped because it did not seem to create any significant value
addition to the products.
The testing of each product is done separately by the specialized teams are hence the headquarters of
each category is located in places where the surroundings enable the product testing. (Aqua products
in a coastal location, hiking products in a mountaineering location etc.).
2.2 COMPANY CATEGORY:
Decathlon in a nutshell is an innovative cost leader the industry of sports retailing.
The company works with a lean supply chain model for efficient and cost efficient production which is
its primary motive. Now for a cost leader it is immensely difficult to be innovative because innovation
costs(R & D, IP etc) it shoots up the cost of end products and thus any company tends to be “Stuck in
the middle” of not being either a cost leader or an innovator. Decathlon business model compensates
for the innovation expenses through cutting down costs in marketing and advertisement departments
by primarily promoting its brands through “word of mouth” promotion through its stakeholders at large
which might be the least aggressive promotion strategy in the short run in the contemporary market
scenario, however deemed to be the most impactful in the long run creating a huge portfolio of brand
ambassadors among its stakeholders.
Competitive Advantage:
The products were added unique value through it’s in store experience, CRM strategies, value for
money and never before heard after sales service policies in the sports retail which gave replacement
guarantee (2 years) on its products.
2.3 EXPANSION:
The company started expanding once it felt it product mix was up to the global standards and initially it
expanded stores in France and then expanded throughout Europe through various expanding its retail
catchment areas. The company turned its attention to both east and west in USA and China in the
2000s. China was a mammoth success while USA did not make such an experience due to demographic
and strategic mismatches.
It came to India in 2009 after FDI relaxation and viewing the market potential the company went into a
vigorous expansion mode almost similar to China. A very unique promotion policy that the firm
incorporates is by respecting a nation’s sporting sentiments and inclination. In China there is a huge
number of people into racket sports (Artengo) and Basketball (Kipsta) hence the company has a huge
infrastructure in a prime location providing 9 basketball courts, table tennis tables etc. In India they
created an umbrella brand for cricket enthusiasts. In India, it has promoted the cricket sports through
it’s brand FLX (engineered in India for India).
Currently the company is generating revenue of close to 10 billion Euros through it 975 retail outlets
worldwide.
2.4 CONCLUSION & HENRY PORTER’S FIVE FORCES MODEL:
Being a cost leader in an industry which highly depends on technology and innovation is not easy. Hence
the prime challenge is to identify the market pull as fast as possible and procure the products of the best
quality at the best prices. For that identification of capable suppliers who are ready to collaborate
and/or manufacturing infrastructure is required where the suppliers bargaining power becomes too
high. And subsequent cost reduction through removal of vestigial operations can be answer to the
market penetration strategy ensued by Decathlon. The sports retailing industry is growing by leaps and
bounds in the domestic market by around 35-40% CAGR. The industry attractiveness and the firm’s
current market position can be elucidated through Henry Porter’s five forces model as follows:
Decathlon Industry Attractiveness and Position:
Henry Porter’s Five
High
Moderate
Low
Forces
Threat from Industry
X
competitors
Buyer bargaining
X
power
Supplier bargaining
X
power
Threat from new
entrants
X
Threat from
X
substitutes
Main Competitors: Nike, Adidas, Dicks Sporting Goods, Sports Direct
3. COMPANY PROFILE:
Name: Decathlon
Industry: Sports retail
Employees: 60,000
Turnover: 10 billion Euros (2014-15)
Number of stores: 975
Retail countries: 22
Production countries: 23
Brands: As below
OPERATIONS:
1. DESIGN
2. MANUFACTURING (OUTSOURCED)
3. RETAIL
4. WHAT IS SOURCING
Strategic sourcing is a broad, more transformational process, performed at a higher organizational level.
Strategic sourcing takes the procurement process further, examining the whole supply network, its
linkages, and how they impact procurement and purchasing decisions. The focus is more on the Tier 1
supply network, value creation, risk, and uncertainty in the supply chain and the overall responsiveness
and resilience of the supply chain.

Managing sourcing and procurement processes

Strategic sourcing and delivering customer value

The size of the organization spend and financial significance

Understanding buyer-supplier relationships

Global procurement competitiveness
4.1 NEED OF SOURCING FOR DECATHLON
As noted previously, strategic sourcing is a broader and more comprehensive process than
procurement. We consider here a seven-step methodology that details the strategic sourcing process.
Overall, the process begins with the development of the appropriate strategy, which provides direction
for all ongoing organizational efforts. The appropriate strategy is influenced by the value discipline of
the organization. As highlighted next, Michael Porter has persuasively argued that there are three
generic competitive strategies for positioning the organization in the marketplace:

Overall cost leadership— Requires efficient-scale facilities, tight cost and overhead control,
standardized customer offerings, reduced network costs, and a low-cost operational model.

Differentiation— Requires creating products and services that are unique and build customer
loyalty.

Focus—requires serving a particular target segment very well by addressing its specific needs
based on a clear understanding of the marketplace.
4.2 SOURCING METHODOLOGY IN DECATHLON:
Step 1: Strategic Sourcing Team Meeting (Annual)
The first step in the process is the kickoff meeting for the upcoming calendar or fiscal spending year.
Essential to the success of this meeting is the establishment of the strategic sourcing committee, which
should include, at a minimum, the chief operating officer (COO), chief financial officer (CFO), and if used,
the chief procurement officer (CPO). We also recommend the inclusion of other key stakeholders:
design, R&D, operations management at a very high level, marketing management (to ensure the needs
of the customer segments have a voice), manufacturing team members, quality assurance
representatives, and transportation team members (assuming the organization has its own private
fleet).
The agenda of this first step should cover the scope and scale of the products and services that are
purchased, an understanding of the requirements and specifications for needed products and services,
plus any new sourcing opportunities. Among the procurement activities discussed in this first step are
the three Ds as well as the components of the triple bottom line (TBL):

Define the current needs—A procurement transaction is usually initiated in response to either a
new or existing need with a recommended supplier. In the case of unacceptable on-time
fulfillment or quality issues, there may be a request to change suppliers. In either case, once the
need is identified, the procurement process can begin. The need can be identified by any of a
variety of functional areas in the organization.

Define and evaluate internal requirements—After the products and services have been
identified, some type of measurable specification or set of criteria must represent each
requirement.

Define whether to “make or buy”Before outside suppliers are solicited, the purchasing firm
must decide whether it will make or buy the product or service. Today, in an effort to focus on
the core competencies of the organization, more and more noncritical components and services
are being outsourced. Before being made, such decisions require a complete understanding of
the resources, capabilities, and processes available outside the firm.

Sustainability and the triple bottom line - Sustainability planning and a review of where the
organization is with its plan should be on the meeting agenda. Strategic sourcing describes how
an organization intends to create and sustain value for its current shareholders. By adding
sustainability to the agenda, we add the requirements to meet these current needs without
compromising the ability of future generations to meet their own needs. The strategic sourcing
team must consider the mandates related to the ongoing economic, employee, and
environmental viability of the organization. Economically, the company must be profitable.
Employee job security, positive working conditions, and development opportunities are
essential. The need for nonpolluting and non-resource-depleting products and processes
presents new challenges to supply managers as well as operations
The first step should include a strategic spend analysis. A frequently used definition of strategic spend is
the dollar value of the goods and services critical to the mission of the organization. This analysis
supports an understanding of the amount to be spent by category, supplier type, and internal user and
will examine the current sourcing approaches being used by the purchasing team (e.g., annual rebate
program versus traditional market-based pricing with no rebate allowances). Specific supplier
recommendations made by the CFO and/or CPO on key product categories should be considered part of
the scope for the strategic sourcing team meeting. The procurement team must honor these
recommendations: They are contractual agreements made at the executive level and typically carry with
them a financial remuneration provision based on some measurable criteria, such as volume or day’s
sales outstanding.
More often than not, the organization is unable to develop a comprehensive spend analysis due to a
lack of centralized spend data. With the appropriate information, this assessment facilitates
recommendations for improvements in the overall sourcing process and identifies any potential
associated financial benefits that could be contractually obtained.
Step 2: Assessing the Supply Market
This second step in the strategic sourcing process involves making sure that all the potential sources of
supply are identified and viable mechanisms are in place for comparing their capabilities to those of
other potential suppliers. As the supply market is being assessed, special attention should be paid to the
following issues:

A comprehensive assessment of the supply market will include a thorough market analysis. The
supply market might be a highly competitive market with many suppliers, an oligopolistic
market with a few suppliers, or a monopolistic market with a single entity supplier. With a clear
understanding of the market, procurement professionals will know the number of suppliers in
the market, the bargaining power of the buyer and supplier, and which method of purchasing
might be most effective.

Whether or not they are currently being used, it is important to identify all possible suppliers
that might be able to satisfy the user’s needs. With all of today’s foreign services, this can be a
daunting task, particularly determining their capacity, process technology, quality, flexibility,
and market effectiveness.

The supplier assessment must include a prescreening of all possible suppliers. When developing
and evaluating user requirements, it is important to distinguish between “needs” (demands)
and “wants” (desires). The needs for a product or service are those dimensions that are critical
to the user; wants are those that are not as critical and are therefore negotiable. Prescreening
reduces the pool of possible suppliers to those that satisfy the user’s needs. In our example of
steel reinforcement bars, several suppliers will have them in stock in standard lengths and
available for shipment within a 24-hour window. A “want” might be having them pre-cut to
specific lengths and bent to specific dimensions for a contracted job. This “want” may require a
series of tests by internal engineering staff to see whether the supplier is capable of meeting the
desired specifications.
This second step should recognize the need to simplify purchasing complexity and, whenever possible,
reduce the number of products or services needed. Simplification and standardization are the criteria
for improving this step. Also, attention should be given to an understanding of pricing points and
opportunities for consolidation of the spend. Doing so creates greater leverage for the user and
enhances supplier relationships. The enhancement of the supplier relationship is discussed in more
detail in Chapter 5, “Understanding Buyer-Supplier Relationships.”
Step 3: Developing the Sourcing Strategy
It is important to fully develop a sourcing strategy that defines the dimensions of the process and the
steps to be followed. Due diligence is the cornerstone for developing a sourcing strategy. A key aspect of
due diligence is the supplier portfolio screening process, which includes initial supplier research and
screening, development of a request for information (RFI) and a request for proposal (RFP), site visits
and follow-up discussions, and supplier selection. Although the strategic sourcing committee may not
play an overt role here, it will play a key part in the ultimate selection of Tier 1 suppliers.

The purpose of the RFI is to establish whether or not a supplier has the resources, capabilities,
and processes to be considered for a more extensive analysis. It will request information on the
company’s background, financial stability, the locations of its manufacturing and distribution
facilities’ locations, markets served, its ability to provide R&D support to users, its quality
systems, and cultural insight. No pricing information is requested in the RFI.

The purpose of the RFP is to gather information relevant to the user company’s needs and
wants. Here the potential suppliers are asked for specifics on how they would respond to the
request. The potential suppliers are requested to detail their manufacturing and distribution
facility locations, lead times, capabilities, and grade and quantity pricing associated with fulfilling
the required specifications.
The sourcing strategy should also include the quantitative and qualitative criteria for supplier selection
to be used by the strategic sourcing committee. The selection criteria in Step 3 should directly relate to
the issues addressed in Step 2. An outline of typical supplier selection criteria is shown in Table 1.1.An
alternative evaluation matrix (multiple weighted criteria) for final assessment in a product category is
illustrated in Tables 2.1 and 2.2 in Chapter 2, “Managing Sourcing and Procurement Processes,” making
use of Importance Scores and Achievement Scores to assess the suppliers’ capabilities for a particular
product group.
Table 1.1 Supplier Selection Criteria
Area of Focus
MANAGEMENT ATTITUDE
SOCIAL COMPLIANCE
QUALITY SYSTEM
PRODUCT QUALITY
PRODUCT MASTERY
BASIC LEAN CULTURE
PRODUCT PRICE COMPETITIVENESS
CAPACITY AVAILABLE
FINANCIAL HEALTH
EXPANSION PLANS
Step 4: Executing the Sourcing Strategy
This step essentially begins with an evaluation of the suppliers that successfully passed the RFI and RFP
screening process and concludes with the awarding of a contract. The pool of suppliers that have passed
the screening criteria are deemed acceptable to provide the user’s needs and wants. It is now possible,
based on the prescreening in Step 2 and the final assessment of qualified suppliers in Step 3, to
determine which supplier or suppliers can best meet the user’s negotiated requirements. If the item or
items are fairly standard and there is a sufficient number of potential suppliers, this activity may be
accomplished through the use of competitive bidding. Without these basic conditions, a more elaborate
evaluation may be necessary, as in our earlier example using an engineered specification of ASTM A615
Grade 60 for deformed steel bars.
The selection of the ultimate supplier is key! The choice of suppliers determines the relationship that
will exist between the organization and the supplying firms and the ultimate levels of collaboration,
trust, intimacy, procedural justice, and cooperative norms. The levels of these relationship components
are discussed in Chapter 5. They determine whether the relationship will be a routine partnership or a
strategic alliance built over many years.
Step 5: Implementation and Integration of the Contractual Agreement
The key components of Step 5 are the finalization of the contractual agreement, planning the transition
process (particularly if switching suppliers), and the receipt of the specified products or services. With
the receipt of the order under a new contract, the procurement team begins the generation of
performance data necessary to establish a vendor evaluation system. Another element of Step 5 is the
implementation of a benchmarking system aimed at determining the savings generated by the
contracted vender.
The proper receipt of goods and services is of vital importance. Many smaller and single-site
organizations have centralized receiving in one department. If just-in-time (JIT) inventory management
systems have been implemented, materials from Tier 1 suppliers or supplier partners bypass receiving
(and inspection, if this function is in place) and are delivered directly into production. The prime
purposes of receiving are as follows:
1. To confirm that the order placed has actually arrived.
2. To check the condition of the shipment.
3. To ensure the quantity ordered has been received.
4. To forward the shipment to its proper destination.
5. To ensure the proper documentation of the shipment is included.
Shortages may occur because material has been lost in transit, short-shipped and not reported by the
supplier, tampered with in transit, or damaged in transit. Physical counts can be forced by blocking
receiving from having access to the quantity ordered. If accurate amounts are entered into the system,
the order is closed out, inventory records updated, and the invoice cleared for accounts payable to
authorize payment based on the terms and conditions negotiated.
Step 6: Supplier Performance Measurement and Improvement
A critical and key step in the strategic sourcing process is the measurement and programmed
improvement process for supplier performance. This involves the ability to provide “time, quantity, and
place utility” in the form of goods and services for the benefit of the consuming organization. Because
there is no value in the product or service until it is in the hands of the customer, the distribution and
transportation functions of the supplier’s business are all about making the product or service available.
Availability is in itself a complex function, impacted upon by a number of factors. These factors might
include delivery frequency and reliability, stock levels and order cycle, and lead time variability. Ultimate
customer service is determined by the interaction of all those factors that affect the process of making
products and services available to the consumer.
In practice, companies have varying views of supplier performance. LaLonde and Zinszer6 in a study of
supplier service practices and measurements suggest that service effectiveness can be reviewed under
three headings:

Pre-transaction elements

Transaction elements

Post-transaction elements
A more in-depth review of LaLonde and Zinszer’s work is provided in Chapter 3, “Strategic Sourcing and
Delivering Customer Value.”
Step 7: Maintenance of Records and Relationships
The final step is to update records, including supplier performance scorecards developed in Step 6.
Electronic files of the order-related documents are stored. Legal requirements, accounting standards,
company policy, and judgment dictate which records are to be kept and for how long. For example, a
purchase order is evidence of a contract. It may be retained much longer (normally seven years) than
the requisition, which is an internal memorandum. The basic records to be maintained, either manually
or electronically, are as follows:

PO log, which identifies all POs by number and indicates the open or closed status of each

PO file, containing a copy of all POs, filed numerically

Commodity file, showing all purchases of each major commodity or item reflecting date,
supplier, quantity, price, and PO number

Supplier history file, showing all purchases placed with major (Tier 1) suppliers

Outstanding contracts against which orders are placed, as required (proof of meeting the
required volume stipulated in the contract)

A commodity classification of items purchased

A database of suppliers that have been used and are currently being used

Savings generated by contracted supplier, by product category, by program type (JIT program,
inventory turns improvement, or additional payment terms and conditions)
Additional records files may include:

Labor contracts, giving the status of union contracts (particularly contract expiration dates) and
the union involved.

Tool and die records showing tooling purchased, date of purchase (put into service), useful life
(or production quantity), usage history, price paid, ownership, and plant location (which facility
site is using them). These purchases can be transaction-specific investments (TSIs) by the
organization and are considered proprietary for a specific customer. The costs of the tooling are
typically amortized over the useful life and charged back to the customer.

Minority and small business purchases, showing dollar purchases from each. Any special
contractual arrangements are noted.

Bid-award history, showing which suppliers were ask to bid, amounts bid, number of no bids,
and successful bidder, by major product category. This record file would include any reverseauctions conducted and which outside firm conducted them.

Rebate programs and awards earned by the organization and the particulars used to calculate
the rebate and when it was collected. Also, any gain sharing programs the organization was
involved in, the supplier involved, the payout, and the specific details of the program.
4.3 SOURCING STEPS FLOW CHART
Need for Sourcing/ Panel review [IB, PL, and PTM (DPP)]
•Better price
•Capacity
SOURCING ANNUAL TEAM MEETING
NEED IDENTIFICATION (FROM PROCUREMENT)
PREPARATION OF SOURCING STRATEGY
IMPLEMETATION OF SOURCING STRATEGY
CONTRACTUAL AGREEMENTS
SUPPLIER REVIEW AND CONTINUOUS IMPROVEMENT
MAINTENANCE OF RECORDS AND RELATIONSHIPS
5. PROJECT UNDERTAKEN
** For this chapter we were instructed to think like a consultant to Decathlon and ask questions to
define our objectives , scopes, KPIs etc.**
5.1WHAT DO YOU WANT ME TO DO FOR YOU?(Objectives)

To fully identify the industrial potential of the heavily industrial states in India (Karnataka, Tamil
Nadu, Kerala, Andhra Pradesh)

To map the impact of taxation & logistics cost on Decathlon products

To create and build in a sustainable manner a holistic supplier panel to support Decathlon
worldwide retail needs including becoming self sufficient for India retail
5.2 WHY?(Scope)

To achieve 30% in value and 50% in quantity made in India products available in the stores as
per FDI laws.

The weak industrial processes: Warp & Circular Knits (8%), Plastic and Heavy Stitching (12%)
Electronics (2%) Optics (0%)

Synthetic woven, knits and warp knits components localization to make “Make in India”
lucrative
5.3 NOW LET’S TALK ABOUT RESULTS. HOW ARE YOU GOING TO EVALUATE MY
PERFORMANCE?(Key Performance Indicators )

SWOT Analysis of the industrial scenario of the southern states

Mapping the industrial zones as per Decathlon needs

SWOT Analysis of potential suppliers
5.4 WHAT IS THE INTEREST OF THE COMPANY FOR THIS PROJECT?(Benefits)
 Make in India
 Milky supply chain
 Lower holding costs
 Lower lead times
 Minimum order quantities

Knowledge transfer

Eco system creation

Accelerate lagging production processes in India
5.5 HOLD ON A SECOND, WHAT IS A LAGGING PROCESS?(Current Scenario)
PROCESS
% MADE IN INDIA BY
% MADE IN INDIA
INDIA IN VALUE
BY INDIA IN
CPM
QUANTITY
WARPKNIT & CIRCULAR
8
17
VIGNESH
CIRCULAR KNIT
61
80
VIGNESH
WOVEN
50
62
RICHA
PLASTICS &
7
13
JAI
METAL
32
13
ASIT
HEAVY STITCHING
12
20
DEEPANKAR
FOOTWEAR
28
34
ZISHAN
ELECTRONICS
2
3
NESTOR
OPTICS
0
0
NESTOR
NOT ASSIGNED
20
18
-
TOTAL INDIA
28
40
KNIT STRETCH
COMPOSITES
LAGGING PROCESS
5.6 UNDERSTOOD, AND CPM STANDS FOR? (Need Identification)
Customer Procurement Manager. There are different CPMs for different industrial processes and they
are the bridge between the retail and the production.

They provide the information regarding current production capacity, duplication priority,
product performances, etc..
6. WORKING METHODOLOGY
6.1 RETRO PLAN
GREAT!!!! WELL UNDERSTOOD. THIS IS HOW I WOULD WANT TO DO IT.
RETRO PLAN FOR THE PROJECT:
(Retro Planning is designed from the end date of the project and then going back in time to place
milestones. It is sometimes easier to use this method to produce a planning when the project end date
is known and imperative)
Features:

Retro Plan was designed with the manager in accordance to the company needs.

It is dynamic in nature and can be changed during the course of the project according to the
findings.

Retro plan has both macro and micro elements in it.

Time defined actions
RETRO PLAN FOR INDIA SOURCING PROJECT FOR DECATHLON (NEXT PAGE) :
RETRO PLANNING FOR
SOURCING PROJECT - INDIA
PRODUCTION
MENTOR SUBHADIP
PLAN
DUTTA
TEAM
MEMBERS MISHIKA
DONE
BHAVSAR,
PUNYA
PUSHKAR,
SANDIPAN
LATE
GHOSH
FEBRUARY
STEPS
RESPONSIBLE
Identifying
industrial
potential
Manufacturing
processes
SD,SG,MB,PP
available
Industrial
Policies
SD,SG,MB,PP
Identifying
different
SD,SG,MB,PP
industrial zones
SWOT analysis
by Secondary
SD,SG,MB,PP
research
Secondary
research on
trade fairs
SD,SG,MB,PP
MARCH
APRIL
MAY
WK
WK
WK
WK
WK
WK
WK
WK
WK
WK
WK
WK
6
7
8
9
10
11
12
13
14
15
16
17
WK 18
Identifications &
research on
trade
SD,SG,MB,PP
associations
interactions and
meetings with
trade
SD,SG,MB,PP
associations
Visiting trade
fairs
Final SWOT
analysis
SD,SG,MB,PP
SD,SG,MB,PP
CPM meetings
(need
identification)
Identification of
priority products
SD,SG,MB,PP
Understand
manufacturing
SD,SG,MB,PP
processes
Understanding
techpacks
Transfer of
sourcing data
SD,SG,MB,PP
SD,SG,MB,PP
Gathering
contacts through
SD,SG,MB,PP
CPMs
Co-relation to
previous data
SD,SG,MB,PP
Continuous process
Decision
making and
final draft
Final ratings on
the zones
Consolidation of
data
Secondary
Research on
Suppliers
Research over
the internet
(B2B, yellow
SD,SG,MB,PP
pages etc. )
Collating
database of
SD,SG,MB,PP
suppliers
Extensive
secondary
research of
SD,SG,MB,PP
database
Shortlist for
primary research
Primary
research on
Suppliers
SD,SG,MB,PP
Introductory
Emails &
telephonic follow
SD,SG,MB,PP
ups
Shortlist of
prospective
SD,SG,MB,PP
suppliers
Assessment of
facilities(Physical
SD,SG,MB,PP
Inspection)- SIF
Vendor SWOT
and Ratings
SD,SG,MB,PP
6.2 IDENTIFYING INDUSTRIAL POTENTIAL:
Prior to assessing Decathlon growth strategies, it is important to look at the big picture, the industry as a
whole, and assess its growth potential. In determining industry potential, key considerations include its
current size and rate of growth as well as profitability characteristics and trends.
So for every state under consideration following qualities were decided as parameters of assessment:
Qualitative Parameters:

Focus industrial sectors

Trade Corridors

SEZs present

Mega/Large industries

MSMEs

Entrepreneurial Attitude

Foreign Collaboration

Sectoral Training

Additional Facilities
Quantitative Parameters:

GSDP and Exports

Total Population

Population Density

Urban Rural

Sex Ratio

Literacy

Population Composition

Government Objectives

Investment Attraction

Labor Force

Population Growth Rate

Per capita Income
Supporting Infrastructure:

Electricity

Water

Waste Management and ETPs

Connectivity

Security and Hygiene

Education

Wage

Cost of doing business index
6.3 NEED IDENTIFICATION (DEMAND SIDE)
Three stages of need Identification:
1. Customer Procurement Manager meeting
2. Product analysis at the store
3. Data Mining

CPM meeting :

Topics of discussion :
1. Introduction.
2. Understanding roles.
3. Product universe. (Introduction to the products under various passion brands).
4. Business in India. (% of total in manufacturing as well as Turnover in respect to
5. Global business of Decathlon and also DSI).
6. Quantity DSI and future projections.
7. Turnover DSI and future projections.
8. Identification of priority products and components.
9. Techpacks brief. (generic format understanding)
10. Supply Chain (Manufacturing to In Store process, generic or specific priority products).
11. Current Supplier base in India.
12. Current challenges in terms of production and supply chain.
13. How do you think we can add value to your project?
Excerpts of CPM meeting:
Priority products for duplication in India:
PROCESS
PRODUCTS
PLASTICS
SWIM CAPS, ROLLER SKATES, BADMINTON
RAKCET
WARP KNITS & CIRCULAR KNIT STRECTH
CYCLING SHORTS, SPORTS T SHIRTS
HEAV Y STITCHING
UMBRELLAS, BALLS, HELMETS, PROTECTIVE
GAURDS
ELECTRONICS
TORCH, WATCH
OPTICS
SUNGLASSES, CYCLING GLASSES
6.4: PROCESS KNOWLEDGE

Process knowledge :
 Fabrics – Shahi factory visit (BLR)
 Plastics – Micro Plastics visit (BLR)
6.5: NEED IDENTIFICATION (SUPPLY SIDE)

Primary research on industrial zones - All 4 States

Interactions with different trade organizations – Tamil Chamber of Commerce, Tamil Plastic
manufacturers Association

State industrial manufacturing seminars – Tamil Nadu Manufacturing Summit 2015

Trade fairs – Technotex 2015
6.6: DATA LINKING, TANSFORMATION AND CONSOLIDATION

Data correlation
•
Transformation of qualitative data into quantitative data

Data consolidation for decision making

1 page summarization of project
7. FINDINGS
7.1 STATE INDUSTRIAL SWOT ANALYSIS
7.1.1 ANDHRA PRADESH
7.1.2. KARNATAKA
Strengths: (Internal)
Weaknesses: (Internal)
1. Best investment climate
(World Bank)
Strengths: (Internal)
2. Strong sectors :
1. Power Surplus
State
electronics
hardware,
2. Vishakhapatnam Port (largest cargo
readymade garments,
handler)
heavy stitching, plastics
3. Strong sectors : Food processing, Plastic
1. Regional Imbalance in
growth (High poverty level Weaknesses: (Internal)
33.4%)
1. Marketing
and Technology
Up gradation
2. High
Water tariff
for MSMEs
2. Slow regulation procedure of new
business
(still
developing)
(Developing),
Light Engineering
3. Developed
entrepreneurial
(Developing),
Textile, RMG
4. Largest
number of(Venture
operational SEZs
eco system
5. Highest YOY GSDP growth among
capitalists)
southern states (15.2 %)
4. High compliance
6. Lowest Commercial Rent
awareness
due to early
7. Lowest Labor Charges
globalization
Opportunities: (External)
Threats: (External)
5. Low industrial land price
1. Entrepreneurship Promotion Act
& electricity
2. Vishakhapatnam- Chennai In Co ($16.7 Bn
)
3. Long coastline (Potential Logistic ports)
1. Other states marketing themselves more
to attract investments
Opportunities: (External)
Threats: (External)
1. High investment attraction
Strengths: (Internal)
(FDI)
1. Ground water exploitation
Weaknesses: (Internal)
has reached beyond natural
nd
throughclimate
PPP
1. 2.
2 Investment
best investment
modelBank)
in waterways
(World
connectivity
2. Recognized
manufacturing
limit
1. rechargeable
High industrial
land rates,
labor cost & commercial
rent.
2. Service driven society
clusters
3. Insufficient availability of
3. Strong sectors : Food
power
processing, Electronics
4. MSME focus on
manufacturing
5. Low water tariff
6. Highest Literacy and Sex ratio
7. Largest recipient of foreign
remittance
8. First International Container
Transshipment terminal
(Kochi)
9. Best Bandwidth
Connectivity
7.1.3. KERALA
Opportunities: (External)
Threats: (External)
1. Presence if world class
technology parks to
Strengths: (Internal)
promote electronic
1. Highest
number of
hardware
1. Lower level of industrialization
Weaknesses: (Internal)
1. Centralized Growth
industrial
2. factories(17%)
Kochi Palakkadand
NIMZ
workers(2.23
(Potential) Mn)
(Chennai)
2. Slow process in Chennai
2. Diversified industrial base
3. Strong sectors : electronics
port
3. High Commercial rent and
hardware, readymade
electricity cost
garments, plastics (still
developing), textiles,
footwear, Light engineering
4. Biggest exporter of
electronic hardware
nd
5. 2 highest FDI inflow
7.1.4. TAMIL NADU
Opportunities: (External)
1. High marketing to attract
Threats: (External)
1. Absence of supportive policies
investments (Global Investors
, tax structure, WTO
Meet,2015,May 23-24),217
agreements.
projects , 1 lakh crore)
2. Green manufacturing (28%
of India’s renewable energy
th
producer), 5 largest in the
world
3. Ease of doing business Thailand model to be
emulated
4. Growth in the suburbs at
lower land rates
8. RECOMMENDATIONS
8.1. Andhra Pradesh
Location: Andhra Pradesh (AP) is located in the Southern peninsula of India and has a coastline
of 972 km.
Neighboring States: The state of Andhra Pradesh is bound by Chhattisgarh on the north, Odisha
on the northeast, Telangana and Karnataka on the west, Tamil Nadu on the south, and the Bay of
Bengal on the east.
Infrastructure and GSDP: The state has well-developed social, physical and industrial
infrastructure and virtual connectivity. It also has good power, airport, IT and port infrastructure.
Andhra Pradesh had a total installed power generation capacity of nearly 9,555MW. At current
prices, Andhra Pradesh’s Gross State Domestic Product (GSDP) was estimated at US$ 77.2
billion over 2012-13. Between 2004-05 and 2012-13, the average annual GSDP growth rate was
15.2 per cent.
Industrial Scenario: As of July 2014, the state has 17 operational SEZs in the state across
diversified sectors which include textiles and apparel, food processing, footwear and leather
products, multi-product, pharma, IT SEZs etc..
Single Clearance: It is the first state in the country to have enacted the Industrial Single
Window Clearance. The Act made it compulsory for new industries to register with the singlewindow to obtain clearances quickly. It also simplified procedures for getting industrial
clearances.
Industrial Acts: The state also has separate acts for development in sectors such as solar power,
electronic hardware and food processing.
Go Sectors:
1. Plastics
2. Leather and footwear
3. Food processing
4. Textiles
Developing:
1. Light Engineering
2. Electronic Hardware
8.2. Karnataka
Location: Karnataka is located in the southern region of India
Neighboring States: It is surrounded by the Arabian Sea on the west, Goa on the northwest,
Maharashtra on the north, Andhra Pradesh on the east, Tamil Nadu on the southeast, and Kerala
on the southwest.
Infrastructure and GSDP: At current prices, the Gross State Domestic Product (GSDP) of
Karnataka was about US$ 98.5 billion in 2013-14. The average GSDP growth rate between
2004-05 and 2013-14 was about 15.2 per cent. The per capita GSDP increased at a compound
annual growth rate (CAGR) of 13.9 per cent between 2004-05 and 2013-14 to US$ 1,793.
Karnataka is the IT hub of India and home to the fourth largest technology cluster in the world.
During 2012-13, total exports from the state aggregated US$ 47.6 billion, which is
approximately 12.7 per cent of India's total exports
Industrial Scenario: The state has 22 operational, 40 notified, one valid in-principle approval
and 61 formal approval special economic zones (SEZs), as of July 2013.
Single Clearance: It is the first state in the country to have enacted the Industrial Single
Window Clearance. The Act made it compulsory for new industries to register with the singlewindow to obtain clearances quickly. It also simplified procedures for getting industrial
clearances.
Industrial Acts: Karnataka offers a wide range of fiscal and policy incentives for businesses
under the Karnataka Industrial Policy, 2009-14. Through the Electronic Sector Design and
Manufacturing (ESDM) Policy 2013, the government of Karnataka has planned to facilitate,
promote and develop the ESDM sector in Karnataka and make the state a preferred destination
for investment in this sector..
Go Sectors:
1. Textiles and RMG
2. Light engineering
3. Electronic Hardware
4. Food processing
Developing:
1. Leather and footwear
2. Plastic products
8.3. Kerala
Location: The state is located along the coastline to the extreme southwest of the Indian
peninsula.
Neighboring States: Flanked by the Arabian Sea on the west and the mountains of the Western
Ghats on the east. The state has a coastline of 580 km.
Infrastructure and GSDP: At current prices, Kerala's gross state domestic product (GSDP) was
about US$ 64.3 billion in 2012-13. The state's GSDP recorded at a CAGR of 14.4 per cent
between 2004-05 and 2012-13. The state's per capita GSDP was US$ 1,841 during 2012-13
compared with US$ 810 during 2004-05. It is a leading agricultural state in the country and the
largest producer of rubber, pepper, coconut and coir. In 2011-12, the state contributed 87.3 per
cent and 79.1 per cent to India's total rubber and pepper production, respectively.
Industrial Scenario: The state has 22 operational, 40 notified, one valid in-principle approval
and 61 formal approval special economic zones (SEZs), as of July 2013.
Industrial Acts: Kerala has a wide range of fiscal and policy incentives for businesses under the
Industrial and Commercial Policy and has well-drafted sector-specific policies. The Kerala
Tourism Policy 2012 has been drafted to create an environment for investment and to market
Kerala as a visible global brand in domestic and international markets.
.
Go Sectors:
1. Food processing
2. Light engineering
3. Electronics
Developing:
1. Leather and footwear
2. Plastic products
8.4. Tamil Nadu
Location: It is the southernmost state of India.It has well developed infrastructure with an.
Neighboring States: Surrounded by Andhra Pradesh from the north, Karnataka and Kerala from
the west, Indian Ocean from the south, and Bay of Bengal from the east
Infrastructure and GSDP: Tamil Nadu is the fourth largest state of India, and contributed 8.1
per cent to India's gross domestic product (GDP) in 2013-14. Gross state domestic product
(GSDP) of Tamil Nadu grew at a compound annual growth rate (CAGR) of 16.3 per cent
between 2004-05 and 2013-14, reaching US$ 141.1 billion in 2013-14. Per capita GSDP of US$
2,059.3 (at current prices) is nearly 48.2 per cent higher than the national average of US$
1,389.6. It enjoys excellent road and rail network, three major ports, 23 minor ports, and seven
airports across the state providing excellent connectivity
Industrial Scenario: Tamil Nadu has a diversified manufacturing sector and features among the
leaders in several industries like automobiles & components, engineering, pharma, garments &
textile products, leather products, chemicals & plastics, etc. It ranks first among the states in
terms of number of factories and industrial workers. Due to its achievements as an auto
production hub, Chennai has been dubbed as the "Detroit of India".
Industrial Acts: In line with Vision 2023, it aims to step up infrastructure investment from 4-5
per cent of GSDP currently to 10 per cent by 2015 and about 11.5 per cent by 2019. Roads &
highways, ports, railways, education and healthcare are likely to see major investments.
Go Sectors:
1. Plastic
2. Leather and footwear
3. Electronics hardware
4. Woven, Knits and RMG
Developing:
1. Food processing
9. DATA TRANSFORMATION AND MATRIX FORMULATION
9.1. INDUSTRIAL SCENARIO
Industries : 5 – best 1- worst
PROCESS / STATES
KNTK
KRL
AP
TN
Woven
4
4
3
5
Heavy Stitching
2
1
2
3
Plastics
3
2
3
3
Metals
2
1
3
4
Optics
1
1
2
3
Electronics
4
1
3
4
Footwear
1
3
3
4
Aptonia
4
5
4
3
Knits
3
3
3
4
Total Weight
24
21
27
33
9.2. INFRASTRUCTURE SCENARIO
Infrastructure: 5- best 1– worst
States
Cost of
Cost of
Cost
Cost of
Cost of
Cost of
Cost of waste
Industrial
Commercial
of
Capital/
Electricity
Electricity
management
Land
land
labor
Availability
of capital
(Industrial)
Overall
(Commercial)
Karnataka
5
2
3
5
5
4
3
23
Andhra
3
5
5
2
4
3
4
23
Kerala
2
1
1
4
3
1
2
13
Tamil
4
1
2
3
1
3
4
15
Pradesh
Nadu
10. LEARNING OUTCOMES:
•
DATA CONSOLIDATION AND REPRESENTATION
•
REPORTING FORMATS
•
INTERACTIONS WITH GOVERNMENT BODIES
•
UNDERSTANDING MANUFACTURING PROCESS
•
COMPANY PROCESS QUALITY SOCIAL AUDITS
•
SUPPLIER MANAGEMENT (TRAINING)
11. GLOSSARY:

Industrial Corridor (IC) –
An industrial corridor is a package of infrastructure spending allocated to a specific geographical area,
with the intent to stimulate industrial development.
An industrial corridor aims to crease an area with a cluster of manufacturing or other industry. Such
corridors are often created in areas that have preexisting infrastructure, such
as ports, highways and railroads.
These modalities are arranged such that an "arterial" modality, such as a highway or railroad, receives
"feeder" roads or railways. Concerns when creating corridors including correctly assessing demand and
viability, transport options for goods and workers, land values, and economic incentives for companies.

Export Oriented Units (EOUs) –
The needs for higher level of technological and industrial progress made the Government of India devise
a series of export promotional schemes. EOU Schemes are one among them, which provides an
internationally competitive duty free environment coupled with better infrastructural facilities for
export production.
Export Oriented Units (EOUs) now constitute a very important sector in the country’s Export Production
scenario. They have become dominant players in our export strategy, and their share in the Country’s
export performance is about 10%. The export growth rate of 30% compares very favorably with the
National export growth rate.

Special Economic Zones (SEZ)–
The term special economic zone (SEZ) is commonly used as a generic term to refer to any modern
economic zone. In these zones business and trades laws differ from the rest of the country. Broadly,
SEZs are located within a country's national borders. The aims of the zones include: increased trade,
increased investment, job creation and effective administration. To encourage businesses to set up in
the zone, financially libertarian policies are introduced. Their policies typically regard investing, taxation,
trading, quotas, customs and labor regulations. Additionally, companies may be offered tax holidays.
The creation of special economic zones by the host country may be motivated by the desire to
attract foreign direct investment (FDI). The benefits a company gains by being in a Special Economic
Zone may mean it can produce and trade goods at a globally competitive price. The operating definition
of an economic zone is determined individually by each country. In some countries the zones have been
criticized for being little more than Chinese labor camps, where labor rights are denied for workers.

National Investment and Manufacturing Zone (NIMZ) –
The Planning Commission has in 2013 released the draft of the country’s first ever National
Manufacturing Policy. The objective of the National Manufacturing Policy is to boost the country’s share
of industrial production, employment; development of world-class infrastructure and investments in
India’s manufacturing space
•
Micro, Small, Medium Scale Enterprises (MSMEs):
In India MSMEs play an essential role in the overall industrial economy of the country. In recent years,
the MSME sector has consistently registered higher growth rate compared with the overall industrial
sector. MSME sector accounts for about45% of the manufacturing output and around 40%of the total
export of the country. Indian industry is making remarkable progress in various Industries like
Manufacturing, Precision Engineering, Food Processing, Pharmaceuticals, Textile & Garments, Retail,
Information Technology (IT), Agro and Service sectors
Micro Industries (Manufacturing Sector) – Investment in Plant and Machinery <25 Lakh INR
Small Industries (Manufacturing Sector) – Investment in Plant and Machinery >25 Lakh INR but < 5
Crores INR
Medium Industries (Manufacturing Sector) – Investment in Plant and Machinery >5 Crores INR but < 10
Crores INR

Free Trade Warehouse Zone –
FTWZ (Free Trade and Warehousing Zones) is a policy of the Government of India (GoI). It was
announced in the Foreign Trade Policy 2004-09 to set up Free Trade and Warehousing Zones (FTWZ) to
create trade related infrastructure to facilitate the import and export of goods and services with
freedom to carry out trade transactions in free currency.
On June 23, 2005, the Parliament of India passed the Special Economic Zones Act 2005 and on February
10, 2006 Government of India notified Special Economic Zone Rules 2006. The Free Trade and
Warehousing Zones (FTWZ) is a special category of Special Economic Zone and is governed by the
provisions of the SEZ Act and the Rules.
FTWZ is designated as a deemed foreign territory and are envisaged to be integrated zones and to be
used as International Trading Hubs. FTWZs will be fully independent mega-trading hubs integrated with
state-of-the-art warehouse and special storage infrastructure,
Container Freight Stations, Environment friendly equipment, Rail sidings for hinterland
connectivity, Commercial complexes for offices,
Independent utility stations, banks and insurance corporations added to recreational and
eventual residential complex for the FTWZ workforce.

Domestic Tariff Area (DTA) –
Domestic Tariff Area (DTA) or Domestic Tariff Zone (DTZ) means an area within India that is outside
the Special Economic Zones and EOU/EHTP/STP/BTP.
The units operating under certain specific schemes such as EPZ/SEZ/EOU are expected to carry out
their activities within a customs bonded area. Any area which is not under the jurisdiction of a custom
bonded area is called a Domestic Tariff Area.

Effluent Treatment Plants (ETP) –
Industries during the manufacturing process generate huge quantity of high toxic effluents.
Effluent treatment Plants provide effective solutions to effluent odor control, BOD reduction, aeration,
clarification, phosphorous and nitrogen removal and more. Our process experts work with the design
team to learn the various factors that contribute to a plant’s design, including effluent requirements,
land availability, energy, labor and disposal costs.
12. WEBLIOGRAPHY:
KERALA –
•
Recent reports - http://spb.kerala.gov.in/images/pdf/er14/Chapter5/chapter05.html
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Waste Management - http://cpcb.nic.in/zonaloffice/banglore/Kerala.pdf
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http://www.thehindu.com/news/cities/Kochi/ernakulam-is-hazardous-waste-capital-ofkerala/article2878579.ece
•
Water Tariffs - http://www.thehindu.com/news/cities/Thiruvananthapuram/kwa-proposesto-raise-water-tariff/article2503838.ece
•
Wage rates :
http://www.lc.kerala.gov.in/index.php?option=com_content&view=article&id=11&Itemid=66
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KINFRA Industrial parks - http://kinfra.org/#apparel-textile-parks
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NIMZ – http://blog.ksidc.org/kochi-palakkad-corridor-the-new-route-to-manufacturinggrowth/
•
Population - http://www.indiaonlinepages.com/population/kerala-population.html
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Vital Stats - http://www.census2011.co.in/census/state/kerala.html
KARNATAKA –
•
http://dipp.nic.in/English/Archive/statannual/issue_newsletter/2008/chapter6.3.iii.pdf
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http://www.ijoart.org/docs/FOREIGN-DIRECT-INVESTMENT-ENVIRONMENT-INKARNATAKA.pdf
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SMEs - http://www.dcmsme.gov.in/clusters/clus/smelist.htm
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Population distribution - http://www.census2011.co.in/census/state/karnataka.html
•
http://www.indiaonlinepages.com/population/karnataka-population.html
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Employment Stats http://www.planning.kar.nic.in/sites/planning.kar.nic.in/files/AnnualPlan2011-12/volI/03%20-%20Chapter%2003-F_23-43_.pdf
•
http://planningcommission.gov.in/reports/genrep/bkpap2020/32_bg2020.pdf
•
http://labourbureau.nic.in/rep_1.pdf
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http://archive.indianexpress.com/news/fy-13-unemployment-rate-at-4.7--says-labourbureau/1171518/
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Per Capita Income - http://trak.in/tags/business/2012/03/30/average-per-capita-incomeindian-states/
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http://www.mapsofindia.com/maps/india/percapitaincome.htm
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Electricity - https://www.bijlibachao.com/electricity-bill/decoding-lt-ht-domesticcommercial-and-industrial-tariff-structures-by-utilities.html
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http://www.business-standard.com/article/economy-policy/power-tariff-to-go-up-by-32paise-a-unit-in-karnataka-114051200841_1.html
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Water - http://bwssb.org/water-tarrif-prorata/
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Drainage - http://parisara.kar.nic.in/pdf/wastemgmt.pdf
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http://kspcb.kar.nic.in/CETP%20List.pdf
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Hospitals - http://www.hindustanlink.com/hospitals-india/hospitals-karnataka.htm
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http://www.esic.nic.in/CIRCULARS/karnatkatieup261012.pdf
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http://dpal.kar.nic.in/Kanunu%20padakosha%20PDF%20Files/Recognised%20Hospitals.pdf
•
Education http://planning.kar.nic.in/sites/planning.kar.nic.in/files/Economic_Survey/7State%20of%20K
arnataka%20Economy-An%20Overview.pdf
•
Minimum Wages - http://labour.kar.nic.in/labour/notificationsonminimum.htm
•
http://labour.kar.nic.in/labour/minimumwages-1948.htm
ANDHRA PRADESH
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Minimum wages - http://www.labourlawreporter.com/latest-minimum-wages/
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Water Tariffs –
http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/water-tariff-up-for-tradeindustrial-categories/article2620639.ece
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Waste Management - http://www.appcb.ap.nic.in/aboutus/Projects.htm
•
Transportation :
http://business.gov.in/investment_incentives/infrastructure_ap.php
Trade corridor - http://timesofindia.indiatimes.com/city/hyderabad/Andhra-Pradesh-to-focus-onindustrial-corridor/articleshow/46024944.cms
Foreign Collaboration - http://www.dnaindia.com/money/report-walmart-pepsico-keen-to-set-upprojects-in-andhra-pradesh-2054667
http://www.dnaindia.com/money/report-andhra-pradesh-govt-considers-separate-industrial-city-forjapanese-investors-2058258
Children prob _ http://unicef.in/State/Andhra-Pradesh
TAMIL NADU
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Sezs file:///D:/DECATHLON/Decathlon/Secondery%20Research%20Docs/ALL%20SEZS%20INDIA%2
02014.pdf
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Maps -http://www.mapsofindia.com/maps/tamilnadu/industry-map.html
•
MSMEs - http://www.dcmsme.gov.in/ssiindia/census/ch6.htm
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GSDP http://mla.prsindia.org/sites/default/files/policy_guide/sector%20wise%20emp%20(1).pdf
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Population - http://www.census2011.co.in/census/state/tamil+nadu.html
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Pop Composition http://censusindia.gov.in/Census_Data_2001/Census_data_finder/C_Series/Population_by_r
eligious_communities.htm
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Numbers and vital stats - http://www.tn.gov.in/deptst/tnataglance.htm
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Msme - http://www.indcom.tn.gov.in/policynote.pdf
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Large industries - http://iaccindia.com/userfiles/files/TN%20Industry%20-%20Sectorwise.pdf
•
Entreprenuership http://www.cii.in/PolicyAdvocacyDetails.aspx?enc=/w7DWirWSRQajUtHudhYCx/JpQBeTzTUjI
KPtDhZBGeD5x+jbQpGlkq2XX8xtJH1JqP3gc4XYfSbeev4Yy4W4w==
•
Investments - http://articles.economictimes.indiatimes.com/2014-0203/news/46962939_1_worth-rs-investments-crore
•
Foreign collaborations http://dipp.nic.in/English/Publications/SIA_NewsLetter/AnnualReport2013/Chapter6.3.iv.pdf
•
Sectoral training http://www.cid.harvard.edu/archive/india/pdfs/tamilnadu_leadingstate.pdf
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Waste management –
http://www.tnpcb.gov.in/activities.asp?src=tsdf.html
http://www.tamilnadustat.com/environmentandpollution/11/solidwaste/261/stats.aspx
•
Msme - http://www.indcom.tn.gov.in/policynote.pdf
•
Large industries - http://iaccindia.com/userfiles/files/TN%20Industry%20-%20Sectorwise.pdf
•
Entreprenuership http://www.cii.in/PolicyAdvocacyDetails.aspx?enc=/w7DWirWSRQajUtHudhYCx/JpQBeTzTUjI
KPtDhZBGeD5x+jbQpGlkq2XX8xtJH1JqP3gc4XYfSbeev4Yy4W4w==
•
Investments - http://articles.economictimes.indiatimes.com/2014-0203/news/46962939_1_worth-rs-investments-crore
•
Foreign collaborations http://dipp.nic.in/English/Publications/SIA_NewsLetter/AnnualReport2013/Chapter6.3.iv.pdf
•
Sectoral training http://www.cid.harvard.edu/archive/india/pdfs/tamilnadu_leadingstate.pdf
•
Waste management –
http://www.tnpcb.gov.in/activities.asp?src=tsdf.html
http://www.tamilnadustat.com/environmentandpollution/11/solidwaste/261/stats.aspx
NATIONAL INFORMATION :

Ibef.com

Clusterobsevatory.com

Msme.com
CONTACTS MADE
CONTACTS MADE