Harimann
Case 25
HARIMANN INTERNATIONAL
EXECUTIVE SUMMARY:
Harimann International Company was established in Delhi by Vikram Dhawan in May 1990. It worked as manufacturer and exporter of finished textiles, which were primarily table lines and woman clothes. Indian government offered variety of incentives to the company for its effort to export the goods in different countries. Whenever goods were exported to one of the several-targeted countries, any profits from the sales were accorded tax-exempt status. In addition, the company got the facilities like duty drawback, cash compensatory support and replenishment licenses. During the first year of operation, the company had limited its business to brokering linen household goods. The nine months were slow because customers were few and orders were small. However, toward the end of the year, a particular style of hand-embroidered table linen became very popular, sales were excellent, and goal of the first year was achieved. In May 1991, Dhawan, company President, added women’s blouses and skirts to his product line in response to requests by satisfied customers. Thereafter the business grew quickly. The Pioneer Trading Company, a larger importer, was one of the Dhawan’s first customers and had been a regular customer ever since. At the end of January Pioneer had requested to Harimann for the samples of six styles of garments along with a preliminary order should the samples and prices prove satisfactory. Harimann had prepared the samples within a week and sent through courier, with their respective prices. Several weeks later Dhawan received the order from Pioneer for all six styles, conditional on Harimann’s ability to make minor changes to three of the styles and to meet a shipping date of April 6. This order was attractive opportunity for Dhawan because Indian government was encouraging exports to Japan, and, as a result, the profits from the Pioneer contract would be tax-free. Moreover, if receipt would
HARIMANN INTERNATIONAL
EXECUTIVE SUMMARY:
Harimann International Company was established in Delhi by Vikram Dhawan in May 1990. It worked as manufacturer and exporter of finished textiles, which were primarily table lines and woman clothes. Indian government offered variety of incentives to the company for its effort to export the goods in different countries. Whenever goods were exported to one of the several-targeted countries, any profits from the sales were accorded tax-exempt status. In addition, the company got the facilities like duty drawback, cash compensatory support and replenishment licenses. During the first year of operation, the company had limited its business to brokering linen household goods. The nine months were slow because customers were few and orders were small. However, toward the end of the year, a particular style of hand-embroidered table linen became very popular, sales were excellent, and goal of the first year was achieved. In May 1991, Dhawan, company President, added women’s blouses and skirts to his product line in response to requests by satisfied customers. Thereafter the business grew quickly. The Pioneer Trading Company, a larger importer, was one of the Dhawan’s first customers and had been a regular customer ever since. At the end of January Pioneer had requested to Harimann for the samples of six styles of garments along with a preliminary order should the samples and prices prove satisfactory. Harimann had prepared the samples within a week and sent through courier, with their respective prices. Several weeks later Dhawan received the order from Pioneer for all six styles, conditional on Harimann’s ability to make minor changes to three of the styles and to meet a shipping date of April 6. This order was attractive opportunity for Dhawan because Indian government was encouraging exports to Japan, and, as a result, the profits from the Pioneer contract would be tax-free. Moreover, if receipt would
References: 1. www.indiagarmentsexporters.com/ 2. www. tradeindia.com 3. www.harimann.com