Indian Sourcing office Cost Heads

March 25th, 2010


Major cost-heads while setting up a sourcing office in India

  1. Recruitments of right individuals
  2. Office space & setup
  3. Salaries & incentives
  4. Audits

Further classified as below:


  1. Office setup (furniture, lighting, decoration, computers, laptops etc)
  2. Legal formalities (company registrations)
  3. Taxes
  4. Misc
  5. Insurances – (premises, vehicles)
  6. Office Vehicles
  7. Generators for alternative power (optional)
  8. Advertisements – to here professionals


  1. Property Rental – 30%
  2. Travel Expenses – 10% (also includes office vehicle petrol & other travel expenses)
  3. Skilled Professionals – 40%
  4. Utilities – 15%
    1. Electricity
    2. Water
    3. Telecom
  5. Misc – 2%
  1. Company accounting & charted accountants – 3%

The above cost is excluding any payments to NGO’S, 3rd party inspection agencies, surveys etc.

Buying Agents Exposed

March 25th, 2010


If retailer hires a buying agent, the profit margins that are realized are much lower, than if it does direct sourcing, Explanation:

Depending upon the terms & commission with the buyer and also the responsibility of the agent,


Profit margins effect in those cases where a buying agent charges commissions from the supplier side, supplier will either reduce the quality or try to increase the price or both, on the other hand agent has to compromise in the quality also during inspections with the supplier due to the unwanted commissions involved, this directly effects the price & quality both resulting in loss of the buyer in terms of profit margins and customer satisfaction,


Another case is at the time of negotiation with the buyer during the fair, buying agent may try to influence the suppler to increase the prices with his markups and supplier will reimburse this markup in the form of cash after the dispatch of the goods.


We have seen here in Moradabad, QC’s (Quality Controllers) from reputed buying houses of Delhi charge commissions from supplier’s side with/without the knowledge of their senior merchandisers, most of the times these SM’s visit either once or twice leaving the merchandise on the inspection of the QC, generally these QC’s are locals and act to get the most profit out of each order from each vendor they are inspecting. Buying company prefer to appoint these local QC’s as full time employees of the company for large quantity orders so to save cost on travel expenses, hotel accommodations etc. These QC’s are the least paid individuals of the company; they try to gain maximum profits from the orders from different channels,


Yes if the agents are irresponsible – consequences will be bad merchandise, claims, decrease in profit margins, etc,


Indian Handicraft & Gifts Show, Venue: Expomart Greater Noida

January 27th, 2010
Expomart Greater Noida

Expomart Greater Noida

Above is the picture of fair venue for ‘Indian Handicraft & Gift Show’, organized each year spring & autumn by EPCH (Export Promotion Council For Handicrafts), This is a Govt. body controlled by ‘Ministry of Textiles’, official website

To find more details on ‘Expomart’, you can visit their official website:

India’s Exports

January 27th, 2010

The below image show the exports of India in percent terms:

India Export Chart

India Export Chart


Importance of an Agent in India

September 14th, 2009

An Agent


A Buying and sourcing Agent is a person who takes complete care of your imports, so that you need not to panic for anything, be it sampling of the product at the initial stage to the despatch of your products to your place.


Problems faced by an Importer


When a person wants to get the products from a foreign land, he may face the following problems:


  • •  Who are the most capable vendors that can fulfil your needs
  • •  Vendor Profile Information
  • •  Settlement with the vendor on your terms and conditions, cost  analysis and so on
  • •  Quality Control
  • •  Shipment for the order dispatch


India as a place to export from


India is a treasure for handicrafts work.

 Indian Cities are well-known world wide for different handicrafts products.


Potential Indian Cities


 Moradabad is famous for artistic handicrafts of brass, aluminum, iron etc. Delhi is famous for home textiles like cushion covers, bed covers and so on.  Jaipur is well-known for the exotic jewellery. Similarly some other renowned places to shop for Indian handicrafts are  Ghaziabad, Punjab for Iron Wire Products, Udaipur for Handmade paintings on Silk, Saharanpur for exquisite Wooden Art wares, Bangalore for pure silk sarees, Bengal for Cotton formal Sarees- Tanter  Saree, Karnataka is famous for carvings and exquisitely beautiful decorative pieces made from sandalwood, Sanganer(Rajasthan) for printing on wood, Madras for zari goods,Narsapur(A.P. ) for lace and lace goods and the list goes on.


Thus India has good market over-seas for exporting the products.


 Importers from different countries prefer to import from India. So the role of the Agent in India is quite a crucial.




InfinityV being an expert in Indian Handicrafts buying & sourcing, promises you to provide a world-class service. We engage ourselves at every step from the product presentation in the beginning till delivery of the product. (See Services)