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MARINE PRODUCTS EXPORT
ANISH(24) DHAVAL(25)
PRADEEP(26)
SALIL(27) RAJNISH(28) RISHABH(29)
1

HISTORY
Till 1960: Dried items like dried fish and dried shrimp.
By 1961: Frozen items overtook dried items leading to a steady progress in export earnings (Technology/modernization came in).
1966: export of frozen and canned items registered a significant rise (Devaluation of Indian currency).
Markets for Indian products also spread fast to developed countries from the traditional buyers in neighboring countries.
2

MARKET STRUCTURE
Till 1960: Sri Lanka, Myanmar (formerly Burma), Singapore etc.
By 1961: Japan, USA, Europe, Australia, etc.
Seafood processing units with modern machinery for freezing and production of value added products were set up at all important centers in the country for export processing.
Till 1976: USA was the principal buyer of frozen shrimp
3

MARKET STRUCTURE
After 1977: Japan emerged as the principal buyer of the product, followed by the West European countries.
Till 2002: Japan retained its position as the single largest buyer for our marine products accounting for about 31% in the total export value.
2002-03 & 2003-04: USA emerged as the single largest market for our marine products.
2004-05 & 2005-06: European Union collectively became the largest importer of Indian marine products.
4

MARKET STRUCTURE
2008-09:
European Union (EU) = 32.6%
China 14.8%
Japan 14.6%
USA 11.9%
South East Asia 10%
Middle East 5.5%
Other Countries 10.6%
Due to prevailing economic recession export to EU, USA and Japan declined 6.08%, 10.18% and 8.80% respectively
All other countries increased their import of marine products from India during the year.
5

INDIA'S SEAFOOD RESOURCE
Exported to more than 90 countries.
India has one of longest coastline of 8118 Km.
Global Share of India is 4.2% at 2nd position, while China has 69% share.
Has one of largest area under Estuaries, backwaters and Lagoons, which are highly conductive for developing capture as well as culture fishes.
7

INDIA'S SEAFOOD RESOURCE
Employs 30 Lac people, contributes 1% to Indian GDP and 4.5 % to agriculture and allied products.
Indian fishing industry got a major boost after the declaration of EEZ (Exclusive Economic Zone) in 1977.
Major exporting States are AP, Kerala, Tamil Nadu, West Bengal.
Potentially unexplored states are Gujarat, Orissa, Maharashtra.
Major products are shrimps, frozen fish, cuttlefish, squid and dried items.
8

INDIAN SEAFOOD INDUSTRY
9

UNTAPPED POTENTIAL
Meager utilization of natural gift.
Total production
Potential – 15 Million Tonnes
Production – 2.5 Million Tonnes
Fresh waters and Ponds
Total Available – 2.4 Million Hectares.
Utilized – 1.5 Million Hectares.
Production Per Hectare (Pond Culture)
Potential – 5 Tonnes per Hec.
Production – 2 Tonnes per Hec.
Production Per Hectare (Reservoirs and Tanks)
Potential – 600 Kg per Hec.
Production – 100 Kg per Hec.
10

EXPORT TREND OF MARINE PRODUCTS Q: Quantity in MT, V: Value Rs. Crore, $: US Dollar in Million
11

Port wise exports.
Exports were affected from 19 land/air ports.
Kochi (17.6%),
JNP (17.3%),
Pipavav(16.1%),
Chennai (12.6),
Vizag (10.5%),
Calcutta (8.4%),
Tuticorin(8%),and Mangalore (2.8%),
14

What to export?
Traditional Items:
Shrimps
Oyster
Tuna Fish
Squids
Lobster
Frozen Fish
Cuttlefish
Shark
Squids
Value Added Items:
Cultured Shrimp
Battered Shrimp
Cook Shrimp
Fish Fillet.
15

FACTS
Shrimp
20% of world’s imports.
Mainstay in India’s Exports 65.88% (2004), 53% (2008)
200 world class Seafood processing factories.
Kerala has 40 percent of the total processing Industries, followed by AP, Tamil Nadu and Gujarat.
16

India - A Seafood Processing Hub
The government has allowed import of raw materials required for processing plants.
More Thrust is given on “Ready to Eat” and “Ready to Cook” kind of processed items.
First seafood processing zone was developed in Kolkata, with investment of Rs 480 million.
The processing zone started with 10 large scale private sector processing units.
17

Changing Trends
The India’s exports of Shrimps and frozen Squid are declining year on year.
One major reason of decline is Export of Cheaper Vannamei Shrimps from neighboring countries.
The trend is shifting towards Value Added Products and Processed Shrimps.
New Potential Species are
Mud Crabs
Tuna Fish
Sea brass
Mullets
Pearl Spot fishes.
18

Tuna Fish
Tuna fish is third most traded Fish internationally.
Tuna fish exports are targeted to reach 400 million dollar by 2010.
Andaman and Nicobar Island holds 25-30 per cent of tuna potential.
19

Mud Crabs
Technology for hatchery seed production of Mud Crabs and Sea Bass fish has recently been developed by CIBA (Central Institute of Brackish Water Aquaculture) and MPEDA .
Potential sites spotted for this are Tamil Nadu and Andhra Pradesh.
Mud Crab is identified as best substitute of Shrimps.
By using the technology 1 lakhtonnes of Mud Crabs can be produced giving revenue of Rs. 2000 Crores.
20

Sea Bass Fish
High valued Sea Bass Fishes can tolerate wide variation in environmental conditions.
It can be produced in vast coastal region example Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra.
The technology has been perfected in Southeast Asia, and is in nascent stage in India.
One kilogram of Sea Bass fish can give a revenue of Rs 100.
21

Ornamental Fish
Most popular among Hobbyist.
Used in Aquariums around the World.
Major Exporters
Singapore
Hong Kong
Malaysia
Thailand
Philippines
Sri Lanka
Taiwan
Indonesia
India.
22

Ornamental Fish
Major Importers USA, Japan and Europe. China and South Africa are Emerging Markets.
Global Trade of $5 Billion annually, growing by 6%.
India Exports worth Rs 1.58 Crores, growing at 20% annually.
The tropical ornamental fishes from North eastern and Southern provinces of India are in great demand in the hobbyists market .
Loaches, Eels, Barbs, Catfish, Goby
23

Vannamei Shrimps
India mainly produces Black Tiger Shrimp (1.5 lactonnes).
It has faced stiff competition from Chinese Vannamei Shrimps because
It has low production cost, and therefore cheap.
Resistant to virus diseases.
24

Vannamei Shrimps
Per Hectare production is 20 tonnes, against 2-3 tonnes of Black tiger Shrimp.
Margins from 3 tonnes of Vannamie Shrimp is more than margins from 3 tonnes of Indian Shrimps.
China produces 6.5 lactonnes , Thailand 4.5 lactonnes, Indonesia 4 lactonnes and Vietnam 3.5 lactonnes and there annual production is rising.
25

Seafood supply chain in India
Fisherman ➔ Commission Agent ➔ Supplier (Pre-processor) ➔ Exporter
Price sharing pattern is as follows:
26

Role of supply chain actors
27

Where to Export?
Declining Markets
EU (26%)
Spain
UK
Italy
USA (23%)
Japan (16%)
Emerging Markets
Vietnam
Belgium
Canada
Germany
Hong Kong
China(14%)
28

How to export?
Chennai Port handles 24% in terms of Value, but the carriage is declining over the years, the emerging high capacity ports are
Haldia
Tuticorin
Kochi
Marine Products Exports Development Authority (MPEDA)
29

MPEDA
MPEDA was constituted in 1972 under the Marine Products Export Development Authority Act 1972 (No.13 of 1972).
Its aims to covers fisheries of all kinds, increasing exports, specifying standards, processing, marketing, extension and training in various aspects of the industry.
MPEDA functions under the Ministry of Commerce, Government of India and acts as a coordinating agency with different Central and State Government establishments engaged in fishery production and allied activities.
Headquartered – Kochi (Kerela)
30

ROLE OF MPEDA IN INDIAN AQUACULTURE
MPEDA was given the mandate for development of shrimp/prawn culture for augmenting exports from the country since 1979.
MPEDA plans, popularizes and implements various schemes for promotion of export-oriented aquaculture in the country.
Formulation of various rules and regulations connected with fishery and aquaculture.
32

ROLE OF MPEDA IN INDIAN AQUACULTURE
MPEDA acts as a liaison agency between various stake holders in shrimp/prawn culture.
MPEDA implements projects for proving the techno-economic viability of culture of diversified variety of exportable fishes.
MPEDA strives to ensure sustainability of aquaculture and make it environmentally friendly.
33

Plan Schemes of MPEDA
Export production - Capture Fisheries
Export production - Culture Fisheries
Induction of New Technology and modernization of Processing Facilities
Market Promotion
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Services offered by MPEDA
Registration of infrastructure facilities for Seafood Export trade
Collection and dissemination of trade information
Projection of Indian marine products in overseas markets
Implementation of development measures vital to the industry
Promotion of brackish water aquaculture for production of prawn for export.
Promotion of deep sea fishing projects through test fishing, joint venture and equity participation.
35

MARINE CAPTURE FISHERY
Deep Sea Fishing
In 1986 Government of India revised its Deep Sea Fishing Policy giving more stress to joint ventures in deep sea fishing.
In 1991 Government of India further modified the deep fishing policy permitting:
Long lease of fishing vessels
Test fishing as prelude to joint venture
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Conditions for foreign equity permitted
New or second hand vessels can be acquired on lease.
The vessels should be for non-shrimp resource.
Deep sea fishing project can be registered under 100% EOU scheme.
Test fishing may be done to establish techno-economic viability.
Foreign collaboration involving foreign equity up to 51% is generally permitted. Foreign equity once invested is considered on par with Indian share holding.
Foreign equity can be by way of fishing vessels also.
Services of foreign crew can be availed.
Mid sea bunkering is permitted .
37

MARINE CULTURE FISHERY
AQUA CULTURE
Aquaculture is the farming of freshwater and saltwater organisms such as finfish, molluscs, crustaceans and aquatic plants.
Aquaculture wing was established in 1979 by MPEDA to promote aquaculture in coastal brackish water areas.
Subsequently field offices were opened in different maritime states.
At present there are 6 regional and 4 sub-regional centres extending technical assistance in the field.
38

ACTIVITIES PERFORMED
Micro and macro level survey to identify suitable sites for farming
Preparation of site specific project reports
Technical advice on various aspects of farming.
Training farmers/entrepreneurs in farming
Arrange visit of farmers from one state to other state for learning different aspects of farming.
Conduct workshop/seminar/symposium/farmers meets for the benefit of farmers/entrepreneurs.
Promote eco friendly aquaculture
39

AQUA CULTURE
Prawn Farm Procomplex, Vallarpadom,Cochin
Increase in demand for the trained man power requirement
The Authority has established a training facility at Vallarpadom, Cochin.
Through this Project Complex, regular training programmes in shrimp culture, hatchery operation, design and construction of hatchery are offered to entrepreneurs as well as Govt. officials, personnel of financial institutions interested in supporting aquaculture
40

MPEDA's Shrimp hatcheries
MPEDA has established two registered societies TASPARC and OSSPARC to run hatcheries in Andhra Pradesh and Orissa respectively.
Orissa hatchery: 65 million seeds per annum
Andhra Pradesh hatchery: 80 million seeds per annum.
41

Semi-intensive shrimp farm
At Nellore with the assistance of Dept. of Bio-Technology
Demonstrates the techno-economic viability of semi-intensive shrimp farming under Indian conditions with an average production of over 4 tonnes/ha/crop.
Based on the experience, demonstrations are arranged in different places through the Regional/Sub-regional Centres.
Two more demonstrations projects are under implementation with the assistance of DBT, one each at Salem in Tamil nadu and Alampur in West Bengal.
42

Aqua Culture in Andaman & Nicobar Islands
A pilot project near Port Blair with the assistance of Dept. of Ocean Development
Productiion of 2 tonnes per ha/crop
A Project for brood stock transport is also under implementation with financial assistance from Dept. of Bio-technology in the A & N Islands.
MPEDA also undertakes the work of techno-economic appraisal of aquaculture projects for various agencies.
43

Cage culture of fin fishes
A pilot project for establishing an off-shore cage culture unit near Port Blair in A & N Islands has been initiated.
MPEDA is advocating such aquaculture projects which are eco-friendly in different parts of the country.
Satellite farming to enable large scale industrial houses to support small farmers with supply of essential inputs along with technical advice and buy -back of product at prevailing market rates.
The MPEDA organised the aquaculture expositions 'INDAQUA' in 1993 and 1995 so as to highlight the achievements in the field of aquaculture and to make the practitioners and entrepreneurs aware of the latest trends, developments and experiences in aquaculture
44

VALUE ADDITION
Adopting the latest technologies and by tapping the unexploited and under exploited fishery resources
MPEDAs vision is to achieve the export of 5 Billion US $ worth marine products by 2014-15 that too with the 75% contribution of value added items
Setting up new units, expanding their capacity and diversifying their current activities
Foreign collaboration, investments, tie ups in marketing of value added products
45

Principles followed by HACCP
Conduct a hazard analysis to identify hazards likely to occur.
Identify the Critical Control Point (CCP) to determine a point, step or procedure in the production process
Establish critical limits for each CCP by setting maximum or minimum parameters of factors
46

Principles followed by HACCP

Monitor each CCP to ensure the process is under control at each CCP
Establish corrective actions taken when monitoring shows deviations from established critical limits
Establish verification procedures to ensure HACCP plans accomplish intended goal of safe product production
Establish record-keeping and documentation procedures such as the HACCP plan, CCP monitoring, corrective actions and verification activities.
47

Steps by MPEDA regarding food and health concerns
Product development for export:
Research and development of new products
Training in new technology and inviting overseas technical experts to India
Quality improvement
Imparting training to technologists of Indian seafood industryin quality control in overseas labs
Entrusting special research projects on quality problems with National Research Institutes
Monitoring of seafood quality in landing and pre-processingcenters.

48

Steps by MPEDA regarding food and health concerns
Integrated development programme for upgrading seafoodquality by providing infrastructural facilities
Evolving standards for compliance for export of fish andfishery products to various developed countries based onstandards / norms / regulations prescribed by such countries
49

MARKET PROMOTION
Overseas market survey
Data collection and maintenance of data Bank
Assistance for market development
Publicity through media and production of literature and films on trade promotion.
Sponsoring of sales team / delegations.
Invitation of overseas experts for export promotion visit to India.
Organizing buyer-seller meets in overseas markets
Participation in overseas Trade Fairs and Exhibition
Exhibition & Trade Fairs within India.
50

FAIRS BY MPEDA
India International Seafood Show (IISS)
Biennial fares
Distinctive position
In order to popularise the concept of aquaculture and to exploit the resources in the sector, MPEDA organizes INDAQUA every alternate years.
MPEDA organizes INDAQUARIA - the international ornamental aquatic event - every year.
To showcase the infinite promise and
potential of the Indian ornamental fish
industry.
To provide a platform for annual get together.
An exciting platform for joint venture and business tie-ups.
51

NETWORK FOR FISH QUALITY MANAGEMENT AND SUSTAINABLE FISHING (NETFISH)
A new mechanism with fishermens’ societies, federations, and other non-governmental organizations which works closely with the fishing community.
MPEDA will utilize the services of experts, scientists, technologists, etc
Other tasks include
(a) Training to pre processing and processing workers
(b) Training in HACCP
(c) HACCP audit
(d) Consultancy for the upgradation of processing plants
(e) Consultancy for production of value added products
(f) Certification of organic aqua products etc
52

INDIAN ORGANIC AQUACULTURE PROJECT (IOAP)
MPEDA proposes to implement organic aquaculture in India by availing the consultancy and technical collaboration from the Swiss Import Promotion Programme (SIPPO), Zurich, Switzerland.
MPEDA has signed a MoU with SIPPO on 11.1.2007 at Chennai during INDAQUA 2007
The Project intends to implement organic aquaculture as per the standards stipulated by Naturland, Germany, who is the certifying body for the product, initially in Kerala and Andhra Pradesh.
INDOCERT is the inspection agency for the programme in India.
53

Exporters Subsidy Assistance by MPEDA
Capture Fisheries
Installation of insulated / Refrigerated Fish Hold = 30% of the cost to a maximum of Rs.5 lakh per owner of fishing vessel.
Conversion of existing fishing vessels to Tuna long liners = 50% of the cost to a maximum of Rs.7.50 lakh.
Constructing New Tuna Long Liners = 5% to Rs.10 lakh for 18-20 meter vessels and Rs.15 lakh for above 20 meter vessels
Culture Fisheries
Medium-scale hatcheries = @ 50% of the capital to a maximum of Rs.20.00 lakh per beneficiary / hatchery limited to 6 hatcheries only
Establishment of Ornamental Fish Breeding Units = 50% of the cost to a maximum of Rs. 75,000 for Grade I unit, Rs. 2 lakh for Grade II unit and Rs 7.5 lakh for Grade III unit
54

New Technology/Modernization
Creating basic facilities for fish curing / drying / packing / storage for export
Scheme – A : Setting up of dried fish handling / curing / drying facility (with solar system with LPG back up) = Maximum assistance shall be Rs.23.50 lakh per beneficiary @ 33⅓% of the actual cost incurred.
Scheme – B: Setting up of dried fish packing and storage facility by dried fish processors / exporters registered with MPEDA = Maximum assistance shall be Rs.8.25 lakhper beneficiary @ 33⅓% of the actual cost incurred
55

Market Promotion:
Group Insurance Coverage for Workers Employed in the Pre-Processing and Processing plants
The premium of the insurance will be paid by the employer, employee and MPEDA in a ratio of 50%, 25% and 25%
The annual premium works out to Rs.200/- per worker.
The present annual premium is Rs.200/-
SEA FREIGHT ASSISTANCE for
export of specified value added
products to EU/USA/ Japan and
other countries
56

FTP: Fish & Fishery Products
Items permitted
No Quantitative restrictions on export.
Promotional measures
Central assistance to States for development of critical infrastructure for export.
Encouragements to State Governments for setting up Export Zones.
Declaration of Towns of Export Excellence
Market Access Initiative Schemes for encouraging increased marketing efforts by exporters/Brand promotion
Schemes to promote the Concept of Total Quality Management.
57

FTP: Fish & Fishery Products
Import for export production
Advance authorization for duty free import of inputs for export production.
Manufacturer exporters, merchant exporters tied to supporting manufacturers and service providers eligible for import of capital goods at 5% Customs duty linked to fulfillment of export obligation in 8 to12 years under EPCG Scheme.
EOU/EPZ/SEZ
Scheme of 100% EOU/Export Processing Zone/Special Economic Zone for export production continues. No trading units permitted under the scheme.
PACKAGE FOR MARINE SECTOR
A self removal procedure for clearance of waste shall be applicable, subject to prescribed wastage norms.
Duty free import of specified specialized inputs to enable us to achieve a higher value addition and enter new export markets.

58

Seafood Exporters Association of India (SEAI)
Incorporated with the main objective to protect and promote the interest of the companies engaged in the seafood business and to develop the international trade of seafood from India.
SEAI has its corporate base in Cochin in Kerala and eight regional offices in Kerala, Tamil Nadu, Karnataka, Gujarat, Orissa, West Bengal, Maharashtra and Andhra Pradesh.
59

SEAI
150 processing facilities have received European Union approval from the existing 350 processing facilities in India through SEAI.
The factories are located in 20 clusters along the East and West Coast of India.
SEAI develop these clusters into international seafood processing hubs.
60

SEAI - Functions
Seafood Exporters Association of India is focussed on providing better technology, food safety assurance, logistics and marketing to create a competitive edge for the Indian market.
SEAI is in the lookout of establishing various infrastructure facilities in various coastal states like landing centres, water treatment plants, common effluent treatment plants etc.
61

SEAI has identified the areas for development and implement
Research and Development of New Projects.
Training in new technology and inviting overseas technical experts to India.
Imparting overseas training to technologists of Indian Seafood Industry in quality control.
Monitoring of Seafood Quality in landing and pre-processing centers.
Upgrading seafood quality by providing infrastructural facilities like pre-processing centres and setting up of mini labs for quality assurance.
Evolving standards for compliance for export of fish and fishery products to various developed countries based on standards /norms / regulations prescribed by such countries.
62

India International Sea Food Show(IISS )
One of the largest seafood fairs in Asia.
India International Seafood Show, a biennial global event, jointly hosted by the Marine Products Export Development Authority (MPEDA) and the Seafood Exporters Association of India (SEAI).
63

Air-Fresh Seafood
Sturdy Boxes: Wetlocks are still the standard, but other specialty boxes are available
Use 4-Mil Poly Liners: Airlines hate leakers…so will your customers
“Wet” Ice: Don’t use regular ice. It melts & creates a huge mess
Chill Before Packing: Make sure the fish is 32°F – or a bit less – before it goes into the boxes
Gel Ice: Must be hard frozen & leak free / Use 2 X 1.5 lb gel packs per 50 lb box & 4 X 1.5 gel packs per 80 lb box / Put gel packs on both top and bottom of box
Insulation: Really helps maintain the chill / Highly advised during warmer months
64

Effect of Insulation & Gel Packs
50 lbs Chilled Fish / Time to Reach 40°F
Fish Pre-Chilled to 32°F / Ambient air temperature of 60°F
65

Planning Your Air Shipment
Choosing a carrier
Service to destination – direct flights, minimum connections, timing, etc.
Experienced staff / general reputation
Adequate chilling facilities enroute, etc.
Is your shipment “priority”, or can it be bumped for mail or passenger baggage
Insurance
Basic insurance is minimal
Declared value protects against loss / Full value insurance is usually quite expensive / Loss to customer is uninsurable
Claims take months to settle
66

Planning Your Air Shipment
Documentation
Anything other than the Air Waybill is your responsibility
Correct documentation is particularly critical on international shipments
Are you a known shipper?
67

Use a Freight Forwarder
They know the system
They negotiate the best rates & schedules
They monitor shipments
They get more respect from the airlines than you ever will
In short - “They are pros”
68

Shipping Frozen
Sturdy Insulated Boxes: Really a must with frozen shipments. Full “styros” with well fitted corrugated “outer” is best
Deep Freeze Before Packing: Make sure the fish is as cold as possible – minimum -5°F / -22°F (-30°C) is better
Gel Ice: Use lots! Must also be deep frozen & leak free
Dry Ice: Can be very good…but pricey. Shippers have limits on how much you can use, so check in advance
“KEEP FROZEN” Labeling: Use lots of labels!
Freezers Enroute: Verify that freezers are available at every stop and point of plane change. Make sure they are adequate to take your shipment if need be.
69

Shipping by Truck
What Species?: “Sturdy” fish like halibut stand up well in trucking, but lots of fresh salmon gets trucked too
Reliable: Unlike aircraft, “refer” trucks have reliable temperature control systems for either chilled or frozen freight
Speed: Can be surprisingly competitive with air depending on destination & when all stops, and potential delays are considered
Check with your Forwarder: Trucking may be right for you.
70

Challenges
Impose of Anti-dumping duty by US in 2004.
Japan and EU imposed strict quality control standards on Indian Marine Products.
Indian Exports are Single Product (Shrimp) and Single Market (USA and Japan) oriented Industry.
Diesel accounts for 75% of Input cost, escalating diesel prices i.e. from Rs 5 in 1991 to Rs. 40 present is major challenge to overcome.
71

Challenges
The Global imports of Shrimp are declining and demand towards processed food is increasing.
Low scale Indian Exporters lack Risk Taking capacity to jump into technology Sophisticated Processed food Industry.
As a result of Above, the financial institutions have lost confidence in Small and Medium Players dominated Indian Fisheries Industry.
72

State of the Fisherman
Price taker: Price moves from the international market via the exporter.
Risk bearer: He bears all fishing expenditures and assumes the risk of a poor catch.
Export promotion agencies concentrate their activities on assisting exporters, leaving little development for fishermen.
73

State of the Fisherman
Among 40 schemes listedby MPEDA one is targeted at fishermen
30% investment assistance max. cap of 50000
Highly unorganized, competition within, non-cooperation bound to disrupt self regulatory mechanism
International standards include processing in the boats itself
74

Export Strategy
It is necessary to treat marine products as technology Intensive sector.
“Value addition has been considered as the thrust area. Indian seafood processing units will be encouraged to go in for value addition and export through setting up new units, expanding their capacity and diversifying their current activities. Foreign collaboration, investments, tie ups in marketing of value added products and fish import for further processing and export in value added forms will be encouraged.” - G. Mohan Kumar Chairman, MPEDA
75

THANK YOU!!!
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by symbiosis institute of international business on Feb 20, 2010

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