MODULE 1
Export Marketing &
Promotion Organisations
In India
Prof.Anamika Sonawane
Prof.Anamika Sonawane

Export Marketing Organisations
 Export Marketing organisations are specialised
agencies concerned with trade.
 These organisations explore foreign market and
arrenge to send goods to foreign buyers as per the
order received.
 Export Marketing organisations are different
from Export Promotion organisations .
Prof.Anamika Sonawane

Structure of Export Marketing Org.
Prof.Anamika Sonawane

1. In-built Export Department
 Under this structure, an exporter will create an export department as
one of his internal department.
 This department will deal with the export marketing while others
may deal with domestic marketing.
 This organisational is simple and can be used by a company which
exports on small scale along with large scale internal domestic
marketing.
Prof.Anamika Sonawane

2. Independent Export
 Here, the company will have separate export division for export
marketing.
 The division will be given budget as well as specialised staff and
necessary facilities for the conduct of export marketing activities.
 The division function independently but within the overall
supervision of the top management of the company.
Prof.Anamika Sonawane

3.Export Subsidiary
 In this structure, export subsidiary is started to undertake export marketing
activities.
 Such arrangement convenient when export on a large scale and long term
export planning is required to be undertaken.
 The subsidiary may undertake production of export quality goods as well as
export marketing operations.
 Creation of export subsidiary is a better alternative to export division in
certain respects.
Prof.Anamika Sonawane

4. Export Subsidiary in Importer’s Country
 The exporter may establish export subsidiary in the foreign country /
importer’s country to undertake export marketing activities.
 Such subsidiary may undertake production as well as export
marketing activities or may look after export marketing only.
 This arrangement convenient when exports are made on a large
scale to a specific country.
Prof.Anamika Sonawane

Types of Export Marketing Orgs.
Prof.Anamika Sonawane

1.Manufacturer Exporters
 It is basically manufacturer but also exports his products abroad.
 He gets profit out of his export transactions relating to products
manufactured by him only.
 They are large manufacturing org. which undertake export directly.
 In India Tatas, Birlas and Kirloskars etc. are the examples of this type of
exporters.
Prof.Anamika Sonawane

2. Merchant Exporters
 Export merchant is a person or organisation whose business is to buy goods
made in his home country , ship them abroad to another country and them
there, paying all expenses and keeping all the profit.
 It is a middleman in export marketing and looks after exporting goods
abroad.
 They get the benefit of large-scale export operations.
 They enjoy benefit of specialisation.
 Small-scale manufaturers prefer to export through marchant exporters due
to limited financial support.
Prof.Anamika Sonawane

3.Star Trading Houses of five categories
Category / Status Performance
FOB Value (in Rs. Crore)
1. One Star Export House. 15
2. Two Star Export House. 100
3. Three Star Export House. 500
4. Four Star Export House. 1,500
5. Five Star Export House. 5,000
 The Foreign Trade Policy 2004-09, has replaced the Export House & Trading Houses
by Star Export Houses.
 The Export Orgs. Eligible for the status of Star Export House are :
 1. Merchant & Manufacturer Exporters.
 2. Export Oriented Units (EOUs).
 3. Units located in SEZs, AEZ, EHTP, STP & BTP.
 4. Service Providers.
The categories of Star Export Houses are :
Prof.Anamika Sonawane

category
FOB / FOR during the preceding
three licensing years + current
year in Rupees
Export House (EH) 20 Crores
Star Export House (SEH) 100 Crores
Trading House (TH) 500 Crores
Star Trading House (STH) 2500 Crores
Premier Trading House (PTH) 7500 Crores
Prof.Anamika Sonawane

The “Export House Status Holders” are eligible for Number of
Privileges / facilities as;
Status holders are entitled to enjoy the following facilities.
1. Authorisation / certificate / permissions and Customs clearance for
both imports and exports on self-declaration basis.
2. Fixation of Input-Output norms on priority within 60 days.
3. Exemption from compulsory negotiation of documents through banks.
The remittance, however, would continue to be received through banking
channels.
Prof.Anamika Sonawane

4. Exemption from furnishing of Bank Guarantee in schemes under this policy.
(Exporter can clear consignments without giving Bank Guarantee to the
Custom Authority).
5. Star Export House and above shall be eligible to establish Export
Warehouse.
6. For status holders, a decision on conferring of ACP (Automatic Clearance
Permit) Status shall be communicated by Customs within 30 days from receipt
of application with Customs.
7. As an option, for Premier Trading House (PTH), the average level of
exports un-der EPCG Scheme shall be the arithmetic mean of export
performance in last 5 years, instead of 3 years.
8.. Specified group of Status Holders will be permitted to import capital goods
through Duty Credit Scrips equal to 1% of FOB value of previous year’s
exports.
9. Status Holder of Agri Sector shall be eligible for Agri Infrastructure
Incentive Scheme.
Prof.Anamika Sonawane

4. Canalising Agencies
 In India, export of certain commodities / items is undertaken only
by canalizing agencies decided by the government under Exim
policy.
 For example, minerals are canalized through MMTC or NAFED
undertakes the export of agricultural commodities.
 These agencies export specified items on a large scale and make
positive contribution in the promotion of export.
Prof.Anamika Sonawane

5.State Export Corporations
 In India, some State Govt. have established their own export orgs.
For the promotion of export of certain items at the state level.
 Such states include Gujrat, U.P. & Bihar. The contribution of such
corporations in exports is limited.
 However, they are treated as Export Marketing Orgs.
Prof.Anamika Sonawane

6. Export Consortia
 Manufacturer from small scale sector find it difficult to export on
their own due to financial, marketing and other difficulties. They
form co-operative marketing groups for joint export marketing.
 Here, small / individual marketing firms get the benefit of joint
marketing research, joint publicity abroad and the benefit of joint
shipment of goods.
Prof.Anamika Sonawane

7. Government Trading / Marketing Corporations
 In addition to private sector orgs., the Govt. of India set up a number of
govt. / public sector trading corporation in the field of foreign trade. Such
corporations support and supplement the effort of private sector export
organisations.
 Such public sector trading corporation are :
 1. The State Trading Corporation of India (STC).
 2. The Minerals & Metals Trading Corporation. (MMTC).
 3. Project and Equipment Corporation.
 4. Government Corporations such as Jute Corporation of India (JCI), Cotton
Corporation of India, National Textile Corporation and so on.
Prof.Anamika Sonawane

INTRODUCTION
 The Export Promotion Councils are non-profit organizations registered
under the Indian Companies Act or the Societies Registration Act, as the
case may be. They are supported by financial assistance from the
Government of India.
 The main role of the EPCs is to project India's image abroad as a reliable
supplier of high quality goods and services.
 The EPCs encourage and monitor the observance of international standards
and specifications by exporters.
 The EPCs keep abreast of the trends and opportunities in international
markets for goods and services and assist their members in taking
advantage of such opportunities in order to expand and diversify exports.
Prof.Anamika Sonawane

There are three other organisation as EPCs
 The Agricultural and Processed Food Products Export Development
Authority (APEDA).
 The Marine Products Export Development Authority (MPEDA).
Wider exchange of views between allied industies in public as well as the
private sectors.
 Federation of Indian Export Organisations (FIEO)
* Apprising all concerned bodies of Status of exports.
* Monitoring the effects of Government policies on Exports - Imports.
* Interacting with the Government on behalf of the exporting community.
Basically, the Federation fulfills the above needs in these three ways :
* Sending representations on policy matters to Central and State (Regional)
Governments.
* Providing a wide range of services designed to help member companies
* Creating and setting up contracts between Government and Commercial
Bodies both in India and overseas.
Prof.Anamika Sonawane

Role /Function of EPCs
1.Issues Certificate of Origins
2.Collects Information
3.Supplies Information
4.Organises Seminars
5.Trade Fairs & Exhibitions
6.Recommendation to Government
7.Invites Trade Delegations
8.Sends Delegation Abroad
9.Consultancy Services
10.Eploration of Overseas Market
11.Creates Export Consiousness
12.Other Functions
Prof.Anamika Sonawane

FUNCTIONS OF EXPORT PROMOTIONCOUNCIL
The major functions of the EPCs are as follows:
 To provide commercially useful information and assistance to their
members in developing and increasing their exports
 To offer professional advice to their members in areas such as technology
up gradation, quality and design improvement, standards and specifications,
product development and innovation etc.
 To organize visits of delegations of its members abroad to explore overseas
market opportunities.
 To organize participation in trade fairs, exhibitions and buyer-seller meets in
India and abroad.
 To promote interaction between the exporting community and the
Government both at the Central and State levels
 To build a statistical base and provide data on the exports and imports of the
country, exports and imports of their members, as well as other relevant
international trade data.
Prof.Anamika Sonawane

COMMODITY BOARDS
 To take up various problems, points ,suggestions to
the States / Central Government and semi-
Government Bodies.
 To take up issues with the Export Promotion
Organization - EPCs ,Commodity Board ,FIEO , -
Various Government Ministries and Departments for
Making easy participation in the Fairs and
Exhibitions organized in India and Overseas.
Prof.Anamika Sonawane

 To make efforts for creation of transparency in the
function of the EP Organization-EPCs ,Commodity
Board ,FIEO etc.
 To organize Seminars and Meetings at various
places to discuss ways and means to overcome
problems and difficulties of the member-exporters
/ exporting community.
Prof.Anamika Sonawane

EXPORT DEVELOPMENT
AUTHORITY
APEDA
MPEDA
FIEO
Prof.Anamika Sonawane

Agricultural & Processed Food Products
Export Development Authority
 The Agricultural and Processed Food Products
Export Development Authority (APEDA) was
established by the Government of India under the
Agricultural and Processed Food Products Export
Development Authority Act passed by the Parliament
in December, 1985.
Prof.Anamika Sonawane

ASSIGNED FUNCTIONS
 Development of industries relating to the scheduled
products for export by way of providing financial
assistance or otherwise for undertaking surveys and
feasibility studies, participation in enquiry capital
through joint ventures and other reliefs and
subsidy schemes.
 Registration of persons as exporters of the scheduled
products on payment of such fees as may be
prescribed.
 Fixing of standards and specifications for the
scheduled products for the purpose of exports.
Prof.Anamika Sonawane

Contd. . .
 Carrying out inspection of meat and meat products
in slaughter houses, processing plants, storage
premises, conveyances or other places where such
products are kept or handled for the purpose of
ensuring the quality of such products.
 Improving of packaging of the Scheduled products.
 Improving of marketing of the Scheduled products
outside India.
 Promotion of export oriented production and
development of the Scheduled products.
Prof.Anamika Sonawane

PRODUCTS MONITORED
 Fruits, Vegetables and their Products.
 Meat and Meat Products.
 Poultry and Poultry Products.
 Dairy Products.
 Confectionery, Biscuits and Bakery Products.
 Honey, Jaggery and Sugar Products.
 Cocoa and its products, chocolates of all kinds.
 Alcoholic and Non-Alcoholic Beverages.
 Cereal and Cereal Products.
 Groundnuts, Peanuts and Walnuts.
 Pickles, Papads and Chutneys.
 Floriculture and Floriculture Products
 Herbal and Medicinal Plants
 In addition to this, APEDA has been entrusted with the responsibility to
monitor import of sugar.
Prof.Anamika Sonawane

COMPOSITION OF THE APEDA
AUTHORITY
 A Chairman, appointed by the Central Government.
 The Agricultural Marketing Advisor to the
Government of India.
 One member appointed by the Central Government
representing the Planning Commission.
 Three members of Parliament of whom two are
elected by the House of People and one by the
Council of States.
Prof.Anamika Sonawane

• THE TEA BOARD, COFFEE BOARD,
COIR BOARD, CENTRAL SILK BOARD, ALL
INDIA HANDLOOM AND HANDICRAFTS
BOARD, TOBACCO BOARD, RUBBER
BOARD, SPICES BOARD, JUTE MILLS
ASSOCIATION, AND SUGAR MILLS
ASSOCIATION ARE SOME EXAMPLES
OF COMMODITY BOARDS IN OUR
COUNTRY.
Prof.Anamika Sonawane

MARINE PRODUCTS EXPORT
DEVELOPMENT AUTHORITY
 The Marine Products Export Development Authority
(MPEDA) was constituted in 1972 under the Marine
Products Export Development Authority .
 The role envisaged for the MPEDA under the statute
is comprehensive - covering fisheries of all kinds,
increasing exports, specifying standards, processing,
marketing, extension and training in various aspects
of the industry.
Prof.Anamika Sonawane

Objectives of the MPEDA
 Conservation and management of fishery resources
and development of offshore fishing.
 Registration of exporters and processing plants.
 Regulations of marine products export.
 Laying down standards and specifications.
 Acting as an agency for extension of relief as per
directions from Government.
Prof.Anamika Sonawane

Contd. . .
 Helping the industry in relation to market
intelligence, export promotion, and import of
essential items.
 Imparting training in different aspects of the marine
products industry, with special reference to quality
control, processing and marketing.
 Promotion of joint ventures in aquaculture,
production, processing and marketing of value added
seafood.
Prof.Anamika Sonawane

FIEO
About FIEO
 Apex body of export promotion organisations of India;
set up in 1965.
Provides the crucial interface between the international
trading community of India & the Central/State
Governments, financial institutions, ports, railways,
surface transport and all involved in export trade
facilitation.
 Directly and indirectly serves the interests of all over
exporters in the country
 FIEO’s direct members contribute more than 70% of
India’s exports.
Prof.Anamika Sonawane

The Principal functions of FIEO
 Provides 24x7 exposure to FIEO members across the
globe through the FIEO website.
 Members can upload their company profile, logo and
product photographs on the FIEO website.
 The first product photograph gets displayed on the FIEO
home page.
 Organises buyer-seller meets both with incoming
delegations and also by sponsoring delegations abroad
etc.
 Organises open house meets with the highest
 authorities to draw the attention of the exporting
 community and help speedy redressal
Prof.Anamika Sonawane

Prof.Anamika Sonawane

Prof.Anamika Sonawane