export to russia business idea


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  • http://www.thehindu.com/business/Industry/tea-board-eases-export-licensing-norms/article4955902.ece
  • export to russia business idea

    2. 2. International Business Target RUSSIA
    3. 3. Major Tea Producers in India • • • • • • • • • • • • • • • • • • Godrej Tea Limited Hindustan Unilever Limited Tata Tea Limited Badireddy Global Private Limited Guru Sharnam Overseas Hanumatey Exports Private Limited Jay Shree Tea & Industries Ltd Kirti Enterprises Krishna Agrotech Ltd
    4. 4. World ranking: Tea, by Production (tones) 2012 RANK COUNTRY EXPORT VALUE 1000 US$ 1 Sri lanka 1,476,881 2 China, mainland 965,080 3 India 867,143 4 Kenya 858,250 5 United Kingdom 262,959 WORLD TOP 3: HIGHEST TEA EXPORTS IN THE WORLD 2012 RANK COUNTRY EXPORT VALUE 1000 US$ 1 Sri lanka 1,476,881 2 3 China, mainland India 965,080 867,143 4 Kenya 858,250 5 United Kingdom 262,959
    5. 5. Why Go GLOBAL? Lower costs and higher prices opportunities for profit Competitive advantages in new markets 70% of Russians' income is disposable vs. around 40% in the West To increase sales, revenues, and profits Limited or declining home market Excess capacity Russia: top location for global retail Global consumers' tastes are converging. Easier to offer a globally standardized product. Domestic competition entering international markets. “Competitive response.” Eg: Tata Tea’s entry in to the U.S., China, and other global markets; J.V. Gokal’s entry in to the Russian market.
    6. 6. Why RUSSIA? Surging Economy Real GDP Growth ↑ 8.1% to $1.3 trillion The fastest growing economy in the G8 group of industrialized nations Investors pouring money into improved storage facilities, infrastructure, and logistics Improving financial services, rule of law, and banking infrastructure
    7. 7. Opportunities for Indian Tea Companies in the Russian Tea Market
    8. 8. No Issue Aspect PLANNING 1 The Opportunity •Largest importer of tea in the world •Russia is among the global leaders in terms of tea consumption (ranking fifth after India, China, Turkey, and the UK). •Tea consumed by more than 90% of consumers on a daily basis. •Russia grows less than 1% of the tea it consumes. •Tea production in Russia has shrunk by almost 30% since the 2008 crisis. 2 Competition The largest importer in value terms in 2011 was the company “Ahmad Tea Inc.”, which had 6.6% of the total volume of tea imports in Russia. The second place was taken by “Girnar Food & Beverages Pvt. Ltd” with a share of 5.3%. “Akbar Brothers Ltd.” were on the third place with 4.2%. 3 The Economic-Geographic environment Demand: Russian people are well-known for drinking two things: vodka and tea. Tea is an extremely significant part of Russian culture. Tea in Russia is not just a beverage – it’s a social activity with
    9. 9. 3 The Economic-Geographic environment Supply: •According to Tea Board chairman Mr Bhanu, the share of small tea growers in the national production has been rising. •The overall Indian tea production in 2013 is expected to touch 1,190 million kg, a jump of around 65-70 million kg over 2012 • Darjeeling, Assam, Nilgiri are household words in markets abroad 4 The Politico-Legal environment The political and legal environments of the Russian govt is very friendly with the indian companies and worldwide exporters of agro based products. 5 The Socio-Cultural Environment Demographics. Consumer attitudes and behaviour. Consumer buying behaviour.
    10. 10. No Issue Aspect ORGANIGING 1 Financing Sources 1.Bank Borrowings : Pre-shipment options:Overdrafts, Term Loan and Leasing/Hire Purchase 2.Trade Credit 3.Venture capitalist 4.Relatives. Govt allows subsidy if we use our money in the business. No equity. 2 The HR Dimension Employing tea experts to check the quality and management trainees to excel in the competition. 3 Risk assessment Slowdown in growth Budget and current balances are very dependent on oil prices Weak private banking sector Weak infrastructures
    11. 11. No 1 Issue Supply Side Aspect IMPLEMENTATION Time , quality , good margin and supply to suppliers. High qualty and nominal price because it is healthy then coffee. On the production front, according to Tea Board statistics, in india output rose 9 per cent in April-December of the current financial year to 1,116.98 million kg on account of higher output in Assam. 2 Demand Side Russia is a potential market. Russia pays close to $5 a kg for such tea, while the average cost of the CTC and orthodox tea imported from India could be $3-3.5 a kg. Russians are becoming increasingly health-conscious everyday and tea is being considered and accepted as a health drink. 3 Financial Control It is expected that with Russia’s recent accession to WTO, the customs duty will be reduced from 20 percent to 12.5 percent by 2017, which will be an additional advantage for Indian tea exports to Russia.
    12. 12. No Issue Aspect GROWTH 1 Control Systems The Tea Board of India has decided to simplify its export licensing norms. Export licences are given under Tea Distribution and Export Control Order, and a tea-exporter has to hold a valid licence from the Tea Board. Licences come in two categories — temporary and permanent. 2 Growth It is expected that with Russia’s recent accession to WTO, the customs duty will be reduced from 20 percent to 12.5 percent by 2017, which will be an additional advantage for Indian tea exports to Russia. 3 Strategy •Gain competitive intelligence about market leaders •Track key industry trends, opportunities and threats •Inform your marketing, brand, strategy and market development, sales and supply functions
    13. 13. Conclusion •Business relation between Russia and India are better. •India tea industry have a great opportunities to enter in russian market. •Benefited of world largest importer country.
    14. 14. THANK YOU Never fight for wining , fight for pride and try to become the toughest competetor of your rival ever