This document provides a report on exporting Shakarganj Foods juices to Malaysia. It includes an executive summary of the company's mission to export juices from Pakistan to Selangor, Malaysia. The report then discusses the company and its juice divisions, target markets in Southeast Asia and Malaysia, opportunities in the Malaysian market, and considerations for market entry including distribution channels and joint ventures.

1. COMMECS INSTITUTE OF BUSINESS AND EMERGING SCIENCES
SHAKARGANJ
FOODS
November 29
2015
Report based on export of Shakarganj foods (Juices) to foreign Malaysia. It
includes rules and regulations of trade from Pakistan to Malaysia. MALAYSIA

2. 2
T A B L E O F C O N T E N T
Executive Summary
Mission and Vision
About Company
Juice divisions
Why Anytime?
Markets to be served
Target Market
Southeastern Asia nations (ASEAN)
Culture of Malaysia
Pakistan Trade and Payments
Hofstede Comparison
Malaysia Trade and Payments
Rules of Origin
Applied MFN Tariffs
Import licensing, restrictions, and prohibitions
Halal certification
Economic Comparison of Pakistan and Malaysia
Opportunities in Malaysian Trade
Economic Relations (Pak-Mys)
Opportunities in Malaysian Trade
Economic Comparison of Pakistan and Malaysia
Selangor
Accessibility
Port klang
Entry Modes
Stages of Going Global
Organizational Structure
Distribution Channel
Marketing Program
Product Classification
Pest Analysis
Budget Allocation

3. 3
EXECUTIVE SUMMARY
It is the mission of Shakarganj Foods to provide complete export services including purchase
contracts, shipping, warehousing, and delivery scheduling. The company will concentrate on special
and cultural exports from Karachi, Pakistan to the unique Malaysian town of Selangor. Shakarganj
Foods also plans to provide trade consultation services to newly started farms created under the
Consumers Farmland of oranges and mangoes.
The Company Shakarganj Foods will be a limited liability partnership registered in the state of
Malaysia for tax purposes. The company has a limited number of private investors and decided to go
public. The company has its main offices in Karachi, Pakistan. The juices include mango, orange and
Peaches. The company expects to begin offering its services in December.
MISSION AND VISION
“Shakarganj foods product limited strives to be among the leading companies in the
food industry and is committed to manufacturing and selling consistent high quality world
class product”
ABOUT COMPANY
Shakarganj Group comprises of several diversified business entities including, Shakarganj Mills
Limited (SML), Crescent Steel and Allied Products Limited (CSAPL) and Shakarganj Food Products
Limited (SFPL). SML was incorporated in 1967 and is listed on all three stock exchanges of Pakistan.
The company is a leading manufacturer of sugar, textiles, industrial ethanol and particle board.
 Pakistan Dairy Association (PDA)
 Lahore Chamber of Commerce & Industry (LCCI)
JUICE DIVISIONS
 Beverages Anytime
Refresh

4. 4
WHY ANYTIME?
Anytime is a tetra pack fruit juice by Shakarganj food limited. Flavors we are offering:
 Apple
 Mango
 Orange
There is a big market of juices in Malaysia the reason is that the people of their love fresh fruits and
they have a tradition of drinking juices in breakfast. Fruits they like the most are Rose apple, mango,
orange Guava, Pineapple and lychee.
MARKETS TO BE SERVED:
 Kualalampur, Selangor district near port Klang.
DEMOGRAPHICS
Division
 State Selangor in Kualalampur
 35 towns in Selangor
Royal capital
 Klang
Area
 Total 8,104 km2 (3,129 sq m
Population (2010)
 Total 5,411,324
 Density 670/km2 (1,700/sq mi)
Best markets in Selangor
 Royal Selangor
 Chow kit
Psychographic segmentation
 Health conscious
 Sports oriented
Target market
Our target market is family and young people of Malaysia because they enjoy juices with family.
There are already many juice makers in Malaysia because trend of juices is increasing.

5. 5
SOUTHEASTERN ASIA NATIONS (ASEAN)
Southeast Asia or Southeastern Asia is a sub region of Asia, consisting of the countries that are
geographically south of China, east of India, west of New Guinea and north of Australia. The region
lies near the intersection of geological plates, with heavy seismic and volcanic activity. Southeast Asia
consists of two geographic regions: Maritime Southeast Asia, comprising Indonesia, East Malaysia,
Singapore, Philippines, East Timor, Brunei, and Christmas Island. Mainland Southeast Asia, also
known as Indochina, comprising Cambodia, Laos, Myanmar (Burma), Thailand, Vietnam, and West
Malaysia;
The major religions are Islam, Buddhism and Christianity. However, a wide variety of religions are
found throughout the region, including Hinduism and many animist-influenced practices. Political:
Definitions of "Southeast Asia" vary, but most definitions include the area represented by the
countries (sovereign states and dependent territories) listed below. All of the states excluding East
Timor are members of the Association of Southeast Asian Nations (ASEAN).
CULTURE OF MALAYSIA
Malaysia is a multi–ethnic, multicultural, and multilingual society, and the many ethnic groups in
Malaysia maintain separate cultural identities. The society of Malaysia has been described as "ASIA IN
MINIATURE"
Malaysia comprises of Malays in majority who are in dominance and are known as "Bumiputra",
while there are Indians (10% of the country's population) who mainly speak Tamil & Malaya lees.
These Indians brought about the Hindu & Sikh culture, which included temples, cuisines & clothing.
Malaysia also accounts for Chinese (second largest ethnic group) too, due to increased immigration.
When these Chinese intermarried Malaysians, they were referred to as
Since years, Malaysia has been enjoying a festive culture which comprises of mainly Arts & music.
Traditional art focused on carving & weaving. Jeweler was designed using Gold & Silver. Whereas, at
the same time in the mid 19th century, there were Islamic taboos that restricted artwork that
portrayed humans. Ever since islamaization took place, arts & tourism in Malaysia started focusing
on newer dances of Middle Eastern, Portuguese and Mughal origins. "Dhikir Barat" has gained great

6. 6
popularity over the years, which is a form of combined singing in groups. Within Malaysia, the largest
performing arts venue is the PETRONAS Philharmonic Hall.
Similarly, different tribes from West & East Malaysia have different dances.
Malaysia entertains its people through puppet shows which are very much lively and depict Indian
influence at the same time. Various influences can be seen in its architecture ranging from individual
cultures embedded in Malaysia to the very many varieties from other countries.
At the other end, Malaysian music has a variety of origins, based around a percussion of instruments.
When it comes to cuisines, it is divided among a great variety of ethnic groups. Rice, use of spices and
noodles are fondly eaten. Malaysia follows food ethics of many different cultures.
In Malaysia, each major religious group has its privilege to enjoy an official holiday on their holy days.
These official holidays differ by state, the most common of all being 'Hari Merdeka', which celebrates
the independences if Malaya. However, regardless of the ethnicities, festivals are celebrated and
enjoyed by everyone there all time as it’s the part of their culture.
Sports another event that keeps the Malays overwhelmed. Badminton, Golf and many other such
traditional sports events are held in Malaysia. Malaysian athletes have won a total of four Olympic
medals, all of which are in badminton, something in which Malaysians dominate.
Highlight media in Malaysia explains that besides Malay newspapers, there is large circulation of
English, Chinese, and Tamil dailies. Internet access is rare outside the main urban centers, and those
of the lower classes have less access to non-government news sources.
As far as language is considered, Malay texts are considered official.
PAKISTAN TRADE AND PAYMENTS
 Pakistan’s overall external account balance posted a surplus of US $ 2.12 billion during Jul-Apr 2014-
15 against US $ 1.95 billion in the corresponding period last year due to marked improvement in the
current account and substantial foreign exchange inflows.
 The current account deficit stood at US$1.4 billion during Jul-Apr 2014-15, which was 53.5 percent
less than the deficit of US $ 2.9 billion in Jul-Apr 2013-14.
 Foreign exchange reserves improved substantially and reached US $ 17.8 billion by end of April 2015,
from US $ 14.2 billion at end June 2014.
Source
Highlights of the Pakistan Economic Survey 2014-15

7. 7
HOFSTEDE COMPARISON

8. 8
MALAYSIA TRADE AND PAYMENTS
Import prohibitions are maintained mostly for national security, religious, and environmental
reasons. A considerable portion of Malaysia's tariff lines remain subject to import licensing, most of
which is non-automatic and continues being used as a tool of trade and industrial policy for, inter
alia, regulating the flow of imports and promoting selected strategic industries. Malaysia's economy
recovered rapidly from contraction in 2009 as the drivers of economic growth shifted from export-
oriented manufacturing to domestic services between 2009 and 2012 the economy grew at an
annual average rate of 4.1%.7 In 2012 and early 2013, robust domestic demand offset weak external
demand and fuelled growth.
RULES OF ORIGIN
Malaysia has no national law governing rules of origin (ROO) for imports; it does not maintain any
non-preferential rules of origin. Preferential rules apply to imports under preferential trading
arrangements and FTAs Malaysia recognizes that ROOs need to be simple, easy to comply with, and
consistent across its FTAs so as to ensure that preferential tariffs are widely used and benefit the
small and medium enterprises (SMEs).
IMPORT LICENSING, RESTRICTIONS, AND PROHIBITIONS
LICENSING
No major changes have been made to Malaysia's import licensing regime, which affects about a
quarter of Malaysia's tariff lines. Since 2010, 55 tariff lines (e.g. sugar and automatic
cassette/cartridge loaders) have been removed.
PROHIBITIONS
During the period under review, Malaysia prohibited imports of a number of products from certain
countries on religious, security, health, and environmental health and safety grounds. In March 2013,
imports of 13 major product categories were prohibited, including certain animal feed, tires (new,
retreaded), poisonous chemicals and minerals, substances under the Montreal Protocol, and logs and
wood in the rough from Indonesia.

9. 9
HALAL CERTIFICATION
Malaysia has been successful in developing halal certification, reflecting the Government's aim to
make the country a hub for halal food products. In 2011 the authorities introduced the world's first
halal pharmaceuticals standards.43 All meat, processed meat products, poultry, and egg products,
domestically produced or imported, must receive halal certification from the Department of Islamic
Development Malaysia (JAKIM) or any foreign halal certification body recognized by JAKIM prior to
importation and distribution in Malaysia.
ECONOMIC RELATIONS (PAK-MYS)
In 1986, Malaysia export $515.5 million worth of goods to Pakistan mainly on palm oil while Pakistan
export to Malaysia was only $31.1 million. Thus, Pakistan has stated that it wants to explore more
joint venture with Malaysian companies. There is a trade and cultural pact between the two
countries, under which the import and export of various goods is done on fairly large scale. The
President and the Prime Minister of Pakistan along with other high officials visited Malaysia many
times and Malaysian officials also paid a good will visit to Pakistan. Malaysia and Pakistan signed
a free trade agreement called the Malaysia-Pakistan Closer Economic Partnership Agreement
(MPCEPA) in January 2008.
Pakistan and Malaysia are linked by Air Transport. Pakistan International Airlines operates many
flights from Karachi, Lahore, and Peshawar to Kuala Lumpur.
OPPORTUNITIES IN MALAYSIAN TRADE
“Sindh needs to reenergize their branding effort on agriculture products to make them more
marketable and palatable for international market….it will propel your [Pakistani] agriculture
products because these are of high grades and top quality”, he told Dawn.Com at the residence of Dr
Irfan Gul Magsi, a former Sindh minister the other day. Pakistan’s High Commissioner to Malaysia
Masood Khalid recently claimed that bilateral trade between Pakistan and Malaysia has reached $2.8
billion It has registered an impressive 14 per cent increase over last year. But Pakistan’s share in
bilateral trade is only $257 million indicating the balance of trade heavily in favor of Malaysia. The
gap could be covered by increasing export of rice, mangoes and beef to Malaysia

10. 10
Economic Comparison of Pakistan and Malaysia
FACOTRS MALAYSIA PAKISTAN
Continent Asia Asia
Primary Language Bahasa Malaysia Urdu
Currency Malaysian Ringgit Pakistani Rupee
Capital City Kuala Lumpur Islamabad
Largest City Kuala Lumpur Karachi
Government Type Constitutional Monarchy Federal Republic
GDP Per Capita $10,538 $1,278
GDP Growth Rate 4.73% 4.41%
Unemployment Rate 3.20% 5.10%
Inflation Rate 3.10% 7.20%
Trade Percentage Of GDP 154% 33%
Merchandise Imports $187 B $40.1 B
Merchandise Exports $228 B $24.7 B
Imports Of Goods And Services $227 B $46.3 B
Export Of Goods And Services $256 B $30.7 B
Industry Annual Percentage Growth 3% 1%
Industry Value Added % Of GDP 40% 21%
Manufacturing Value Added % Of GDP 23% 14%
Foreign Exchange Reserves $134 B $18.1 B
Total Population 29.7 M 182 M
Population Density 90.15 sq.km 250.70 sq.km
Median Age 27.4 yrs old 22.2 yrs old
Rural Population 7.94 M 113 M
Urban Population 21.8 M 69 M
Birth Rate 17.65(per 1000 people) 25.25 (1000)
Death Rate 4.7 6.94
Population Before Poverty Line 3.80% 22.30%
Literacy Rate 93.12% 54.74%
Life Expectancy 75.02 years 66.59 years
Internet Users 66.97% 10.90%
KUALA LUMPUR
Kuala Lumpur, the capital of Malaysia, is called KL by locals. Its modern skyline is dominated by the
451m-tall PETRONAS Twin Towers, a pair of glass-and-steel-clad skyscrapers with Islamic motifs. The
towers also offer a public sky bridge and observation deck. The city is also home to British colonial-
era landmarks such as the Kuala Lumpur Railway Station and the Sultan Abdul Samad Building.

11. 11
SELANGOR
Rank Districts Population
1 Petaling 1,782,375
2 Hulu Langat 1,141,880
3 Klang 848,149
4 Gombak 682,996
5 Kuala Langat 222,261
6 Sepang 212,050
7 Kuala Selangor 210,406
8 Hulu Selangor 205,049
9 Sabak Bernam 106,158
PORT KLANG
Port Klang is a town and the main gateway by sea into Malaysia.
Known during colonial times as Port Swettenham but renamed
Port Klang in July 1972, it is the largest port in the country. It is
located about 6 kilometers (3.7 mi) southwest of the town
of Klang, and 38 kilometers (24 mi) southwest of Kuala
Lumpur. Pulau Indah, Pulau Ketam and the other surrounding
island are under Port Klang Authority. Located in the District of
Klang, it was the 12th busiest container port (2012)in the world. It was also the 17th busiest port in
by total cargo tonnage handled in 2012. Port Klang is a sub-division of Klang district.
Accessibility
Port Klang is served by KTM komuter service and trains stop and port klang Komuter station. The
electric train connects service links to Klang, Kuala lampur and other parts of klang valley.

12. 12
E N T R Y M O D E S
Entry mode Description Advantages Disadvantages
Indirect
Exporting
CONFIRMING HOUSES
THERE ARE DEALERSIN
SELANGOR WHICH ARE
INTERMEDIATE SELLERS
THAT WORK FOR ANYTIME.
WE WILL RECEIVE THE
PRODUCT REQUIREMENTS
FROM THEIR CLIENTS,
NEGOTIATE PURCHASES,
MAKE DELIVERY, AND PAY
THEM.
FAST MARKET ACCESS
CONCENTRATION OF
RESOURCES TOWARDS
PRODUCTION
little or no control over
distribution, sales,
marketing, etc. as opposed
to direct exporting
Joint Venture
ANYTIME WILL DO JOINT
VENTURE WITH TROPICANA
BECAUSE IT ALREADY HAVE
ESTABLISHED MARKET SHARE IN
MALAYSIA AND OFFERS MORE
FLAVORS IN THE COUNTRY
OTHER BENEFITS INCLUDE
POLITICAL CONNECTIONS AND
DISTRIBUTION CHANNEL
ACCESS THAT MAY DEPEND ON
RELATIONSHIPS
Conflict over asymmetric
new investments
Mistrust over proprietary
knowledge
DYNAMIC FACTORS
EQUITY & NON EQUITY MODE
NON EQUITY MODE
EQUITY MODE

13. 13
STAGES OF GOING GLOBAL
1. Market entry
Anytime is exporting its three flavors of juices to Selangor, Malaysia. It will contact to their local dealers
who have best knowledge about market and taste of people. Through this anytime is entering into the
market. This entry requires one marketing activity which is event marketing where anytime is offering free
samples in upcoming cycle race.
2. Product specialization
When market is established in Malaysia then anytime can transfer its production of any single juice flavor
to other location. Here in case production of pineapple juice will be shifted in Malaysia because Malaysia
produces good pineapples. Then production of apple juice can be transferred to china because it produces
the largest amount of apple and have low cost labor over there.
3. Value chain disaggregation
Anytime at this stage will look for most beneficial location for its product. As china where there is more
population and there is low cost labor.
4. Value chain reengineering
At this stage anytime can increase its product line. That means more flavors of anytime can be introduced
for example its cocktail flavor, coconut flavor in Malaysia.
5. Creation of new market
At this final stage anytime will expand its market and target different customers at different location.
Market entry
Product
specialization
Value chain
disaggregatiion
Value chain
reengineering
New market

14. 14
ORGANIZATIONAL STRUCTURE
 Specialized jobs are grouped according to traditional business functions.
 Ideal for Shakarganj foods having a narrow product line, sharing similar technology.
ADVANTAGES
 Helps maximize economies of scale
 Highly efficient.
DISTRIBUTION CHANNEL
LETTER OF CREDIT
A letter of credit is a document from a bank guaranteeing that a seller will receive payment in full as
long as certain delivery conditions have been met. In the event that the buyer is unable to make
payment on the purchase, the bank will cover the outstanding amount.
 Shakarganj juice will apply for L/C.
CEO
Production
Pakistan
Karachi
Marketing
Malaysia
Selangor
Shakarganj Juice ConsumerRetailerDealer/ Wholesaler
Apple JuiceOrange Juice Mango Juice
Direction of the flow of products, services and
communications
Direction of the flow of information, Payment
and ordering

15. 15
PRODUCT CLASSIFICATION
Certification: HACCP, ISO, HALAL
Type: With Sacs
Shelf Life: 11 Months
Packaging: Tetra Pack Box
Place of Origin: Karachi
Product Type: Juice, Fruit Juice
MARKETING PLAN
Marketing Objectives First to create awareness of anytime in Malaysia
Develop potential sales to reduce marketing cost
Target Market Families living in Selangor who are health conscious and like fruit juice
Positioning Anytime will position itself as healthy fruit juice especially for breakfast
to give complete nutrition.
MARKETING MIX
Product
Anytime provides Fresh fruit juice of 3 flavors liked by
the Malaysians. Mango, orange and apple
Price
Available in 200ml tetra pack packaging at
price of 1 ringgit.
Place
Anytime is available at famous marts of kualalampur
Tesco and TMG mart
Promotion
Free sampling in upcoming event race” Run
my Buddies”
CHANNEL PLAN
Manufacturer Retailer customer
CHANNEL OBJECTIVE ACTIVITY
Manufacturer Create awareness and make profit Production of quality juice
Retailer Maximize its selling space Sell products of anytime to final
customers and influence purchase.

16. 16
PROMOTIONAL PLAN
Following tools will be used for promotion.
 Event marketing
 Shelf merchandizing in stores
Event marketing is generally a sponsorship or sampling of juice in events held in Selangor as
mentioned above about race run my Buddies which is going to be held on 20th December, 2015. Shelf
merchandizing is related with how well shelf in stores is presentable to customers.
PEST ANALYSIS
PEST analysis (Political, Economic, Social and Technological analysis) describes a framework of
macro-environmental factors used in the environmental scanning components of strategic
management in Malaysia.
FACTORS DESCRIPTION
P O L I T I C A L
 Corruption does exist in the country. (This fact may become a
barrier to foreign businesses as it adds to firm’s costs and can
cause problems).
 Transparency International ranks Malaysia 47th of 180 countries in
its Corruption Perceptions Index.
E C O N O M I C
 Malaysia’s main attraction as a location for business is its vibrant
economy.
 Over the last 10 years, economic growth has averaged 7% per year.
S O C I A L
 This mix of populations gives Malaysia a rich and vibrant culture,
and the country is seen as an example of racial harmony as the
different populations have existed peacefully together for years.
T E C H N O L O G I C A L
 This corridor hosts more than 360 multinationals, including
foreign-owned and home-growth Malaysian companies, all
focused on multimedia and communications products.
COPY RIGHTS PROTECTION
 Sufficient effort has been expected to make the work original in character;
 The work has been written down, recorded or reduced to a material form;
 The author is qualified person or the work is made in Malaysia or the works first published in
Malaysia.

17. 17
Cash Flow Projected Actual Variance
Total Income 4,160,000 600,000 -3,560,000
Total Expense 100,000 150,000 -50,000
TOTAL CASH FLOW 4,060,000 450,000 -3,610,000
Monthly Income Projected Actual Variance
Income 1 4,000,000 430,000 -3,570,000
Income 2 130,000 140,000 10,000
Extra income 30,000 30,000 0
Other 0
TOTAL INCOME 4,160,000 600,000 -3,560,000
Housing Expense Projected Actual Variance
Mortgage or rent 50,000 51,000 -1,000
online Phone charges 800 500 300
Electricity 44,000 56,000 -12,000
Gas 22,000 28,000 -6,000
Water and sewer 8,000 8,000 0
Cable 12,000 18,000 -6,000
Waste removal 1,000 1,000 0
Maintenance or repairs 2,300 5,000 -2,700
Supplies 0 0 0
Other 12,000 15,000 -3,000
SUBTOTAL 152,100 182,500 -30,400
Transportation Projected Actual Variance
Vehicle payment 50,000 75,000 -25,000
Insurance 500,000 500,000 0
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
TOTAL INCOME TOTAL EXPENSE TOTAL CASH FLOW
PROJECTED
ACTUAL
Cash
Flow
Monthly
Income
Monthly
Expenses
FAMILY MONTHLY
Budget
Planner
March 2011

18. 18
FINANCIAL CONSIDERATIONS
Start-up assets required include expenses and cash needed to support operations until revenues
reach an acceptable level. Most of the company's liabilities will come from outside private investors
and management investment; however, we have obtained current borrowing from Habib Bank
Investments, the principal to be paid off in two years. A long-term loan will be paid off in ten years.
The company expects to reach profitability in year 2 and does not anticipate any serious cash flow
problems. We expect that about 35,000 units per month will guarantee a break-even point.
Reference
 Sbp.org.pk
 Economicsurvey.com
 Imf.org
 Wikipedia.com
 Journals
 Articles

19. 19
Report Prepared By
Syed Jabbar Ali Shah (Syed.jabbar_shah@ymail.com)
CIBES I BBA-8
Submitted To,
MR Baber Saad Khairi
International Business I Course Supervisor
CIBES I BBA-8