This document presents information about opportunities for Indian tea companies in the Russian tea market. It discusses Russia as a major tea importing country and consumer of tea. It also outlines the major tea producers in India and identifies Russia as a growing economy and potential market for Indian tea exports. Planning considerations include the target opportunity, competition from other tea exporters, economic and geographic factors, and political/legal environment in Russia. Implementation would require addressing supply and demand sides as well as financial controls. Growth strategies involve export control systems and leveraging Russia's reduced customs duties under its WTO accession. In conclusion, business relations between Russia and India are favorable and the Indian tea industry has great opportunities to enter the Russian market as the world's largest tea importer

1. PRESENTED TOPROF. SHRIDHAR CHARI
PRESENTED BYGAURAV TAKKAR
ROHIT GOYAL
RAMANDEEP KAUR
RUPINDER KAUR

2. International Business
Target
RUSSIA

3. Major Tea Producers in India
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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. 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. 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. 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. Opportunities for Indian Tea Companies in
the Russian Tea Market

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. 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. 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. 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. 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. 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. THANK YOU
Never fight for wining , fight for pride and try
to become the toughest competetor of your
rival ever