Anyone can export.
Some exporters manufacture their own products, some purchase products from Indian manufacturers and sell them overseas, while others export services instead of physical goods.
Understanding the different types of exporters is important for anyone planning to enter international trade.
- Manufacturer Exporter
A Manufacturer Exporter is a business that manufactures the product itself and exports it directly to an overseas buyer.
The exporter owns or operates the manufacturing facility and is responsible for production, quality and supply.
Example
An Indian company manufactures cotton T-shirts in its own factory in Tiruppur and exports them directly to a clothing retailer in the UK.
Business model:
Own Factory → Exporter → Overseas Buyer
- Merchant Exporter
A Merchant Exporter does not necessarily manufacture the product.
Instead, the exporter purchases or sources products from Indian manufacturers/suppliers and exports them to overseas buyers.
This is one of the most practical models for entrepreneurs who want to start exporting without setting up their own factory.
Example
An entrepreneur in Ahmedabad wants to export sesame seeds to Malaysia.
Business model:
Indian Manufacturer/Supplier → Merchant Exporter → Overseas Buyer
- Manufacturer-cum-Merchant Exporter
A Manufacturer-cum-Merchant Exporter combines both business models.
The company manufactures some products itself while sourcing other products from third-party manufacturers.
Example
An Indian company manufactures cotton shirts in its own factory but does not manufacture leather belts.
When an overseas buyer wants a complete clothing collection, the company:
- Manufactures the shirts itself.
- Sources leather belts from another Indian manufacturer.
- Exports both products to the buyer. (Shirts and Leather belts)
Business model:
Own Manufacturing + External Suppliers → Exporter → Overseas Buyer
- Service Exporter
An exporter does not always export a physical product.
A Service Exporter provides services to customers located outside India.
The service may be delivered digitally or through other permitted means rather than through physical shipment of goods.
Examples
An Indian IT company develops software for a US company.
Indian IT Company → Software Development Service → US Client
- Export Trading Company
An Export Trading Company primarily focuses on sourcing products from multiple Indian manufacturers and selling them to overseas buyers.
It may not manufacture any product itself.
The company acts as a bridge between Indian manufacturers and international buyers.
Example
An Indian export trading company has relationships with:
- 5 textile manufacturers
- 3 leather manufacturers
- 4 handicraft manufacturers
- 2 packaging manufacturers
It receives enquiries from buyers in Europe and sources the required products from its supplier network.
Multiple Indian Suppliers → Export Trading Company → Overseas Buyers
Example in practice
A buyer in France wants a range of Indian handicrafts.
The trading company sources:
- Wooden handicrafts from Rajasthan
- Metal handicrafts from Moradabad
- Hand-painted products from Jaipur
It consolidates the products and supplies them to the French buyer.
In One Line
Manufacturer Exporter: I make it and export it.
Merchant Exporter: I source it and export it.
Manufacturer-cum-Merchant Exporter: I make some and source some.
Service Exporter: I provide services to overseas customers.
Export Trading Company: I connect multiple Indian suppliers with international buyers.
For a new entrepreneur entering international trade, understanding these models is the first step toward deciding how you want to build your export business.
