As I am the client of RED TAPE places and seen its globalisation in a really short period clip and besides have done corporate societal duty in many country.
In a limited period of clip increased its foreign investing.so this is a the issues why I have taken mirza sixpence as my subject.Kanpur, Uttar Pradesh was originally incorporated as a Private Limited Company under the Companies Act, 1956 on 5th Sep. , 1979 under the name and manner of Mirza Tanners Pvt. Ltd. The Company became a Deemed Public Limited Company from 1st July, 1993 and converted into a Public Limited Company.The Company has been promoted by Mr.
Irshad Mirza and Mr. Rashid Ahmad Mirza. Mr. Irshad Mirza is holding more than 40 old ages of experience in the fabrication and selling of Leather Products.
The Tannery Unit of the Company was set up in 1981 which has been bit by bit modernised and expanded to the present capacity to bring forth 50.00 lac sq. ft. of high quality Finished Leather.
This conforms to the specifications approved by the Government of India given under the Export Control Order, 1991. In the twelvemonth 1988, the Company diversified into fabrication of 2.25 lac braces of Shoe Uppers per annum by puting up an integrated unit at Juhi, Kanpur which was increased to its present capacity of 4.50 lac ‘s braces of Shoe uppers.Subsequently, the Company established a complete shoe mill in the twelvemonth 1990 at Magarwara, Unnao for industry of 2.25 lac braces of Shoes per annum which was increased to its present capacity of 4.50 lacs braces of Shoes during 1992-93. The aim of the Company behind puting up these mills was chiefly for providing to the quality witting export markets of United Kingdom, Germany, Italy, Portugal and besides to Australia.
( DION GLOBAL SOLUTIONS LTD )
We want to accomplish and encompass the universe broad leader ‘s place by lodging to our nucleus values. We want to make an altius and widen it to skylines.Our vision is put into action through plans and a focal point on craftmenship, activities to profit society, and a committedness to construct stockholder value by doing ‘Shoemac Leather Tech Engineers ‘ a truly sustainable company.
To keepA researching & A ; developing tech understanding machines, tannery mechanismA and other constituents to optimise the production and minimise the cost.
We love to fulfill our planetary clients with our nucleus values ; customized solutions, first-class quality, sensible monetary value, punctual bringing and sincere service.Purpose: The chief aim of puting up this company was to enable the Indian Industry to get the better of adversity faced while importing shoe machinery so that within the state itself, the autochthonal machinery and constituents could be Easily developed with a position to optimise the cost and conserve the operations and by the puting up of this company we have conveying our state out of lower status composite. Further, the valuable foreign exchange will be saved as the machines are locally available.
As people do non like to experiment excessively much with their tegument same is the instance with footwear. When taking footwear the one thing that is most of import is comfort. Although with the altering tendencies people ‘s perceptual experience about footwear is besides altering but one thing that does non alter is the comfort degree provided by a peculiar trade name of places.Places were ne’er a topic of major concern for the common in-between category Indian boulder clay late.
Due to the emerging manner tendencies in India over the last few decennaries places have become an built-in portion of a individuals overall visual aspect. Nowadays there are places intend for different occasions. The two most celebrated classs of places are formal and athleticss places.
The athleticss shoes market in India is besides really large sing the big population of young person in the state. The top athleticss shoe trade names in India are Reebok, Nike and Adidas. These top shoe trade names in India are all international trade names but have over the old ages captured the Indian market enormously. They have penetrated in about all the Indian metropoliss and towns.AThe footwear industry in India has besides witnessed a important growing over the last few old ages. Due to the increasing degrees of consciousness about Indians sing the manner they look due to this the apparels and footwear market in India has been on a axial rotation since the last 10 years.AIndia is one of the major planetary shoe makers and is responsible for churning out about 1736 million braces of places yearly.
India is said to be the 2nd largest shoe makers merely after China. One of the major grounds for dining footwear industry in India is the handiness of inexpensive labor and abundant natural stuffs. India is besides one of the biggest good quality leather exporters in the universe. Since places are non bought everyday the one thing that is most of import while buying places is its quality. Peoples presents are blending comfort with the emerging manner tendency. A shoe along with being comfy besides has to be visually appealing. Some of the Top Shoe Brands in India are Red Tape, Florsheim, Gabor, Salamander, Clarks, and St. Micheal ‘s.
These top shoe trade names in India are known for their lastingness, superior balance and clasp and tremendous aggregations of fashionable places for both work forces and adult females. They are besides made out of the finest of leather and are besides priced reasonably. Red Tape which is presently the Top Shoe Brands in India is a hot front-runner among the work forces of the count Known for its alone comfort, international manners and delicacy, Red Tape the flagship trade name of Mirza International Limited, was launched in the twelvemonth 1996. The trade name has today become synonymous with hi-fashion & A ; lifestyle, owing to its odd quality, skilled workmanship and voguish merchandises.
Endorsed by the manner icon Salman Khan, Red TapeA has become India ‘s most loved premium lifestyle trade name. ( Business maps.India ( 12/02/2010 )Red Tape – Manner for Your Foot:Red Tape has emerged as a leader in the high-end manner footwear section.
The Red Tape footwear scope is designed in company-owned design studios in the UK and Italy and manufactured utilizing international quality stuffs from European states. Having become India ‘s favorite work forces ‘s footwear, the trade name has now diversified into Women ‘s footwear.Redtape-FashionforYou:Red Tape has late forayed into the dress sector and unveiled work forces ‘s vesture and accoutrements line up.
This new scope offers an eclectic mix of insouciant wear including shirts, jackets, jeans, tees, pants/shorts and accoutrements such as belts, socks and billfolds.Red Tape- Manner for the World:Red Tape is an international trade name, present across the US, UK, France, Germany, West Asia and South Africa. The Red Tape merchandises are being sold globally through the company ‘s extended planetary distribution channel.
Red Tape – Manner that is Truly GlobalThe Red Tape scope of places, dress & A ; accoutrements reflect the latest manner tends across the Earth. These are designed in company-owned design studios in the UK and Italy and manufactured utilizing international quality stuffs from European states, in order to bring forth a truly planetary merchandise.Red Tape – Manner in Your RangeRed Tape merchandises are available across India through multiple trade name mercantile establishments, concatenation shops and sole Red Tape showrooms. Its nationwide web of sole salesrooms spans 30 metropoliss in India. ( MIRZA INTERNATIONAL LTD, 2007 )
KEY DRIVER OF GLOBALIZATION:
With an oculus on the potency of the sector, the Indian Government has placed an accent on the use of the available natural stuffs to maximise returns.
It has introduced a figure ofA enterprises, with the particular accent on incorporate developmentA of the tanning sector.A These includes natural stuff augmentation, engineering ascent, and publicity ofA environmental cleansing agent processing options, quality standardisation andA human accomplishments development.To encourage preparation of unorganised artisan workers, the Government has given support to good fit developing establishments to promote developing programmes to be given jointly with reputed foreign endeavors and experts the assorted steps taken by the authorities are as follows-De-licensing of incorporate tanneries that convert natural fells and teguments into finished leather.Several leather goods have been de-reserved from the little Scale Sector.Free import of natural fells & A ; teguments, semi-finished andA finished leather.Concessional responsibility onA imported machinery and chemicals.Free export of rawA fells & A ; teguments, semi-finished andA finished leather and leather merchandises.
Policies to ease modernisation / up step: In June 2005 the governmentA initiated a Rs. 2788.45A million ( 50.82A Million Euros ) Aµmodernizing schemeA¶ called the Aµ Integrated Leather Development ProgrammeA¶ , whereby all leather tanning and productA units will be eligible for modernisation aid.
The aid will be to theA extent of 30 % ofA undertaking cost for Small graduated table industry ( SSI ) units and 20 % for non-SSI units. Constitution of Aµdesign centresA¶ at single fabricating units, toA facilitate betterment in design capablenesss: Under this strategy, 25A % of the undertaking cost is provided to the units under the market entree inaugural strategy of the Ministry OfA Commerce and Industry.The regulative organic structure for thisA industry is:
Council for Leather Exports ( CLE ) :
The Council for Leather Exports was set up in July 1984. A non-profit company registered underA the Indian Companies Act, 1956, the Council maps under the Ministry of Commerce, Government of India. The Council is entrusted with export publicity activities and overall development of the IndianA leather industry. The Council ‘s activities besides include advancing Foreign Direct Investments and Joint Ventures in the Indian leather industry. The CLE serves as a span between Indian leather exporters and purchasers all over theA universe. Council for Leather.
( WWW.FIBRE2 FASHION.COM )
Social welfare of the neighbouring communities
Resettlement of War Victims
Contributions to Prime Minister ‘s Relief Fund are made through territory disposal from clip to clipFlag Day, on every Dec 7th, is celebrated by widening generous fiscal part to the Armed Forces Welfare Fund.
Veterans are offered resettlement chances. Till now around 200 ex-service forces have been offered occupation chances in the mills and other locations as regular employees or as security forces.Army Wives Welfare Association is helped through generous contributions, distribution of run uping machines and their congratulation at assorted occasions.Financial assistance provided to run into the vocational preparation demands of war widows and Kargil war victims.
Resettlement of War Victims
Blankets are distributed to the hapless during utmost winter conditionsImpermanent shelter is extended to the needy, hapless and those displaced due to natural catastrophes.Fiscal aid is offered on a regular basis to “ Kusht Niyanthran and Ninmoolan ” Centre at 11, A KnowledgeA Park, Greater Noida.“ Blood Donation Camp ” was organized at the unit premises, where employees and the managers donated blood for baronial cause.
Environmental Management System has been implemented in the mill and consciousness towards environmental protection is spread to the locals. The unit has been certified as ISO 14001:2004Encouraged and promoted ‘Ganga Cleaning Abhyas ‘ to guarantee clean imbibing H2O and to cut down pollution.Pioneer in puting up an in-house Effluent Treatment Plant at the Tannery.
World Environment Day & A ; ‘Van Mahotsav ‘ observed every twelvemonth and workers and direction jointly works trees at assorted locations.All DG sets have been replaced with Eco-friendly 1s. All vehicles are being replaced with CNG vehicles in a phased mode.Corporate Social ResponsibilityA ( Annual Report 2007-08 )The Company besides attempted to go forth a grade as a socially responsible corporate citizen, by taking all meaningful steps to enrich the environment and the people all about, particularly the backward and economically weaker subdivisions of the society.The Company is to the full cognizant of its duties towards countries like Human Rights, Business Ethics, Corporate Contributions, Environmental Policies, Community Development and Work Place issues. ( WWW.MIRZA. CO.
IN/ IN CORPORATE RESPONSIBILITY, 2008 )
Your company is committed to good administration patterns that create long term sustainable stockholder value. Keeping in position of the Company ‘s size, planetary operations and corporate traditions, the board of manager ballads strong accent on transparence, answerability and unity. A separate study on Corporate Governance together with a certification from Statutory Hearers corroborating conformity with corporate administration demand as stipulated in Clause 49 of the listing understanding with the stock exchange has been annexed as portion of this study.
MANAGEMENT DISCUSSION AND ANALYSIS:
Industry Structure and Development:Leather Industry in India has come a long manner over the last four decennaries. From a resource based industry providing abundant Indian altogether fells in semi-finished and finished province, it is now a major provider of value added finished goods like footwear, bags & A ; travel accoutrements, harness & A ; stable gear and manner accoutrements like belts and billfolds. From the position of exporter of natural fells & A ; semi-finished leather, the state has now turned into a major importer of these goods. With a high employment potency leather industry has ever been on the precedence list of authorities.
Planning. The present Government has placed the development of this industry on a yet higher precedence and has formulated a strategy of puting up leather Parkss across the state. The industry, hence, will witness accelerated growing over the coming old ages. The export of leather and leather merchandises for the first nine months of 2007-08 i.e.
April-December 2007 touched US $ 2485.58 million a g a I n s t T H vitamin E P vitamin E R field-grade officer R mom n degree Celsius vitamin E O f US $ 2258.81 million in T H e corresponding period of last twelvemonth, registering a positive growing of 10.4 % in Dollar footings. In rupee footings the export touched Rs. 100435.
54 million against the old twelvemonth public presentation of Rs. 103021.12 million demoing a diminution of 2.51 % . Export of footwear ( leather, footwear constituents & A ; non leather footwear ) has increased from US $ 871.92 million in April-December, 2006 to US $ 1023.31 million in April-December, 2007, registering a growing of 17.36 % .
Opportunities, Threats, Risks & A ; Concerns:The force per unit area on China to beef up its currency presents a historical chance to all Indian exporters who face stiff competition from inexpensive Chinese merchandises. Your company is no exclusion. It expects a sustained growing of demand for its merchandises from planetary clients in the extroverted old ages.
Global hardening of rough oil monetary value has led to a crisp escalation in cost of several natural stuffs. Oil monetary values in India were held back by the Government but will lift aggressively in future. This would hold impact on cost of power and fuel, inland transit, air and sea cargo and besides an all circular addition in costs in the economic system. This will present fresh challenges for your company. A high grade of volatility has characterized the currency markets throughout the last twelvemonth and the same is expected to go on in future. Such crisp volatility brings along with it, a high grade of uncertainness.
In such a scenario, currency hazard direction is another major challenge before the company.Mentality:Despite the above challenges the mentality for your company is bright with billowing demand for its merchandises. Increased capacities will convey economic systems of graduated table. The addition in oil monetary values has weakened the Indian rupee and the company will be a donee of the same.Segment-wise Performance:The company ‘s concern section is chiefly Shoe Division and Tannery Division. During the twelvemonth under reappraisal, the Shoe Division gross was Rs.
283.35 Crores and Tannery Division gross was Rs. 97.30 Crores.Internal Control System and their Adequacy:The Company has a good established model of internal controls in operation, including suited monitoring processs and self assessment exercisings. An independent Internal Audit map reviews the Company ‘s fiscal and operating controls at assorted locations.The company ‘s Risk Management frame work ensures conformity with the commissariats of Clause 49 of the Listing Agreement. Senior Management has ownership of cardinal hazards, their direction and extenuation programs.
The Board, through the Audit Committee, headed by a non-executive independent manager, reviews the cardinal hazards, the internal control model and the audit findings.Discussions of fiscal were about at the same degree as last twelvemonth. However, profitableness of the company has suffered due to increase in cost of all major input points, addition in involvement rates, lower value realisation on history of stronger rupee. Management is continuously honing competences to better the scope and designs of our merchandise by doing significant investings for scaling up the capacities to accomplish higher profitableness.
Human Resources Human Resources forms an built-in portion of your Company ‘s scheme for growing. On the Industrial Relations forepart, your company continued to bask a heartily and harmonious dealingss with its employees and Unions. Your company had a staff strength of 1860 employees as on 31st March, 2008.Your company is a bluish bit footwear company, certified for ISO-9001:2000 ( Quality Management System ) , ISO-14001:2004 ( Environmental Management System ) and SA-8000:2001 ( Social Accountability Management System ) , equipped with Labs accredited SATRA Technology Centre ( UK ) and accorded Associate Membership by Foot Wear Design & A ; Development Institute ( Ministry of Commerce & A ; Industry, Government of India ) .
Corporate Social ResponsibilityYour Company besides attempted to go forth a grade as a socially responsible corporate citizen, by taking all meaningful steps to enrich the environment and the people all about, speciallythe backward and economically weaker subdivisions of the society. Your Company is to the full cognizant of its duties towards countries like Human Rights, Business Ethics, Corporate parts, Environmental Policies, Community Development and Work Place issues.MIRZA INTERNATIONAL:Valuess:High-end, to the full integrated instead shoe fabricating installations offering considerable cost advantage and international quality. It ‘s Competitive advantage owing to company ‘s constituted premium trade names and cognition of Indian consumers.
It ‘s a turning web of sole company-owned and franchised shops for retailing company ‘s merchandises. Superior technological capablenesss backed by a pool of extremely skilled interior decorator ‘s and extended distribution web.
StrengthsHigh GrowthReady handiness of extremely skilled and inexpensive work forceLarge natural stuff basePolicy enterprises taken by the GovernmentCapability to absorb new engineerings and manage big undertakingsContinuous accent on merchandise development and design up step
Lack of warehousing support from the authoritiesInternational monetary value fluctuationHuge labor force ensuing in high labor chargesLack of strong presence in the planetary manner marketUnknowingness of international criterions by many participants
Rising potency in the domestic marketTurning manner consciousness globallyUse of information engineering and determination support package to assist extinguish the length of the production rhythm for different merchandisesUse of e-commerce in direct selling
Major portion of the industry is unorganizedLimited range for call uping financess through private arrangements and public issues ( many concerns are family-owned )Trouble in obtaining bank loans ensuing in high cost of private adoptionStricter international criterionsHigh competition from East European states and other Asiatic states. Lack of communicating installations and accomplishments
Home market lobbying/pressure groupsVery few featuring events apart from taking stars like SALMAN KHAN, to pull clients.
a. Fringy portion of 2.44 per centum in planetary trade worth US $ 97.606 billion.
B. Estimated mark of 12 bn $ ( 7bn $ export + 5 bn $ domestic ) trade by the twelvemonth 2012 abroad economic systems and tendencies.c. The Indian footwear retail market is expected to turn at a CAGR of over 20 % for the period crossing from 2008 to 2011.
Footwear is expected to consist approximately 60 % of the entire leather exports by 2011 from over 38 % in 2006-07.d. Turning in-between category and turning purchaser power taking clients to look for branded places.e. Seasonality issues – athleticss is more of a fury in summers.f.
Lack of aiming of market sections for childs and adult females.
Lifestyle trends – upward displacement demographicsConsumer attitudes and sentiments altering favorably towards branded placesMedia positionsConsumer purchasing forms manner and function theoretical accountspurchasing entree and trendsaˆ? advertisement and promotion
Competing engineering developmentIndia offers benefits like low cost of production, abundant natural stuff, and a immenseConsumption marketResearch support in design and demandsManufacturing adulthood and capacityInformation and communicationsConsumer purchasing mechanisms/technologyInnovation possible engineering entree, licensing, patents
FDI ( foreign direct investing ) :
Red tape impacting FDI: New Delhi: an “ investor unfriendly ” regulative model and high degrees of ruddy tape have been identified as the major barriers in the way of FDI inflows into India, harmonizing to a survey. and it ‘s no admiration that merely 40 per cent of the entire $ 74.
29 billion FDI approved for the state has made its manner to the execution phase. in comparing, China attracts over $ 40 billion FDI per annum, while a bulk of the 385 transnational houses feel that India is a robust market with immense potency, thanks to more profitable operations here than elsewhere, the regulative models and ground-level fusss act as the biggest disadvantages, harmonizing to the FICCI FDI study 2002. Further, the unfriendly revenue enhancement government, labour Torahs and procedural holds in undertaking execution were the other factors haltering FDI influx but India now seems determined to alter it all.
an inter ministerial commission is likely to subject its study next month proposing steps to simplify multiple clearances and revamping the construction of to hike Fdi. the commission, chaired by the industry secretary V Govindrajan, is analyzing all bing processs for investing blessings and execution of undertakings, official beginnings said the commission would propose steps to simplify and hasten the procedure for both public and private investing. “ The chief aim would be to rush the procedure of clearance as besides to better the quality of the FDI. ” meanwhile, 57 per cent of the participants in FICCI ‘S study dubbed India as a bad investing finish when compared to other planetary opposite numbers. over 70 per cent of the companies cited political stableness as a critical factor for ask foring fdi in future. while work force was non a concern for abroad houses, 76 per cent of the respondents felt that land degree fusss need to be improved for enticing foreign investors ( TIMES OF INDIA. INDIA TIME ) .
Infrastructure, ruddy tape constrictions to FDI: FICCI study:With India emerging as a preferable finish, foreign investors have shown strong concern over the province of substructure installations and procedural holds in the state. Harmonizing to the FICCI FDI Survey 2010, about 70 % of houses have rated attempts made by the authorities for supplying standardized investing information and proactive selling of to pull foreign direct investing ( FDI ) as “ mean ” .While 86 % of the respondents have expressed dissatisfaction with respect to quality and measure of power made available to them, approximately 75 % have rated the quality of roads and main roads in the state as “ bad ” and 68 % have complained about handiness of H2O for their operations, the study said Overall, FDI inflows to the developing universe continues to “ Overwhelmingly ” concentrated in middle-income states, with Brazil, Russia, India, and China ( BRIC ) entirely absorbing about half, the study said. ( HT CORRESPONDENT HINDUSTAN TIMES, NEW DELHI, 12TH DEC 2012 )
As I am a client of RED TAPE SO, learnt batch from the company about the globalisation its factor and chief issue that have raise the company to its peak point and I am really much influenced by the CSR activities that company has done in the yesteryear to adequate its penchant in the state in the field of leather as many industry follows its quality of chances and strength to get the better of other company in their sector, this company have many positive tendency for the hereafter chance in the planetary universe.Top most direction of RED TAPE is covering the company in a positive manner and do client and employee feel happy.It besides done societal programme for the public assistance of war victim by supplying all the thing that is required by them.There are some good and bad facet of all the procedure.
so, ruddy tape besides have some badfacet but the good set up company fluently and swimmingly over come the job and by the right corporate administration of regulating organic structure.At last one am really much influence by the covering mode of the top direction, CSR activities, strength and chances that combines to do a Company to give its best in every sector and do a company to make its peak point.
The little houses have really limited fiscal capableness to present environmentally friendly engineerings and production methods.The engineering used by Indian leather houses is, by and big, out-of-date and inefficient.
Their environmental public presentation is hapless. They do non utilize environmentally friendly engineerings and bring forth big sums of wastewater with a high burden of pollutant. They besides have limited capacity to handle wastewater, and in many instances these installations are non effectual.Our instance surveies of tanneries of RED TAPE countries indicate that show that the acceptance of new engineering by houses has three of import motivations. These are: a ) a demand to run into the environmental criterions in the importation states b ) a demand to follow with the environmental ordinances in India and a demand to better productiveness degree Celsius ) The efficient usage of natural stuffs, H2O, chemicals and power all of which will hold positive environmental impact ) has non been an of import aim of proficient alteration.We besides find that rigorous enforcement of environmental ordinances and the handiness of fiscal support at concessional footings are considered by the houses to be of import factors which will actuate them to follow environmentally friendly production methods.
Finally, it is improbable that Indian houses will be able to make a niche in the international market by exporting leather produced through environmentally friendly production processes in the close hereafter. As shown by the survey, the procedures used by most Indian exporters are non environmentally friendly. Furthermore, they are non in a place to get eco labeling, as most of them do non have consent from the Pollution Board. We feel that the rigorous enforcement of environmental ordinances and the proviso of fiscal support meant particularly for the acceptance of environmentally friendly engineerings are indispensable if houses are to be motivated to follow PEST and better their environmental public presentation. It is merely when these stairss are taken that Indian houses will hold a realistic opportunity of emerging as an of import exporter of leather goods produced with environmentally friendly production methods.
d. ) . Retrieved from WWW.FIBRE2 FASHION.COM.( 2008 ) . Retrieved from WWW.
MIRZA. CO.IN/ IN CORPORATE RESPONSIBILITY.DION GLOBAL SOLUTIONS LTD.
( n.d. ) .HT CORRESPONDENT HINDUSTAN TIMES, NEW DELHI. ( 12TH DEC 2012 ) .
MIRZA INTERNATIONAL. ( 28TH FEB 2007 ) . ECONOMIC TIMES.
INDIA TIMES.COM.MIRZA INTERNATIONAL LTD. ( 2007 ) .
TIMES OF INDIA. INDIA TIME. ( n.d.