Affiliated to Gujarat Technological University Ahmedabad Reports for Upload/800 - Ghana.pdf ·...

1

AGLOBAL / COUNTRY STUDY AND REPORT

ON

Reliance Communication Ltd

Submitted to

Gujarat Technological University

IN PARTIAL FULFILLMENT OF THEREQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ASMINISTRATION

UNDER THE GUIDANCE OF

Faculty GuideMahendra Prajapati

(Assistant Professor)

Submitted by :-Vaghela Chandrakant

Vhora Jigar

Sukhadiya Krina

Thakkar Riddhu

Thakkar Ravi

Vyas Namrata

Oxford School Of ManagementMBA PROGRAMME

Affiliated to Gujarat Technological University Ahmedabad

2

PREFACE

A practical study is an important part of the syllabus of a MBA program. It gives us an

opportunity to relate theoretical knowledge with real corporate situations. It also helps to improve our

analytical skill, communication skill & knowledge.

We have done the project on “Potential of Reliance Communication Ltd.". This project is totally

based on secondary data. We have gathered information from the company itself and from the internal.

In this project, we have tried to analyses financial situation and different organization process of

communication industry.

3

ACKNOWLEDGEMENT

This project is not the result of individual effort. It is a teamwork it was not is possible to complete the project alone.

There are different distinguished personalities who help us to furnish the project and we are thankful to them.

First, we want to give thanks to our university Gujarat technological university and our collage oxford school of management for giving us the opportunity to take part in this kind of project.

Next we want to give thanks to our honorable principal, Mr. Japan shah for his support last but not least we want to give thanks to all our faculties.

4

INDEX

Acknowledgement…………………………..

Serial number

Particular Page number

1 Potential of reliance communication 5

2 Introduction of reliance communication 8

3 Main subsidiary of reliance communication 10

4 Role of reliance communication 12

5 Features of reliance communication 13

6 Current market position of reliance communication 14

7 Telecommunication companies in ghana 15

8 Key regulatory tasks and regulators before telecom sector reforms in ghana

16

9 Liberalization of ghana’s telecom sector 17

10 Suggestions 18

11 Conclusion 19

5

The potential of Reliance communication in Ghana

The telecommunications industry in Ghana has been on a very progressive journey and it has

covered a great distance in a very short period of time.

Not long ago very few people had private telephones that worked. As recently as 1996, the

telephone density of Ghana was 0.26% meaning that there were 2.6 telephone lines for every

1,000 people including 35 payphones in the entire country out of which 32 were located in

Accra. This was one of the lowest in Africa. Today there is one phone for every four Ghanaians!

This tremendous increase in the tele-density has been a result of the establishment of the

National Communications Authority (NCA) in 1997 and the subsequent deregulation of the

telecom industry, which brought about the growth of wireless telephony as a result of significant

investment by operators. For the consumer, being in touch simply means being able to purchase

amobilehandset and subscribing to a wireless service.

6

Deregulation also meant opportunities for ambitious entrepreneurs and large telecom companies

to establish operations in Ghana and participate in what was to become the biggest boom in

Ghana’s recent economic history.

It would seem that the most important lessons should have been expansion of the sector to

indigenous and international participation, removal of all major barriers to market-driven

operation and encouraging vigorous competition.

This is nothing new. Home-grown companies such as South Africa’s MTN have chalked up

impressive growth successes as a result of an environment of Black empowerment created to

provide Black owned businesses in South Africa the opportunity to succeed. MTN is now an

exporter of capital not only to the rest of Africa but globally.

Today we find large well capitalized foreign dominated companies either purchasing existing

telecom properties in Ghana or receiving licenses for new operations. There is the recent

successful bid for Westel by Etisalat of the UAE, Globacom’s highly vocal expression of interest

in a GSM license and rumors of interest by Celtel and Vodacom.

While this may be good for the development of the sector and the injection of additional

competition, it leaves no room at the top of the sector hierarchy for any indigenous play. It must

be noted that historically excessive regulation and controls have never encouraged capital

investment. In fact the reverse is what seems to have fueled the growth of the Ghanaian telecoms

industry. What is important would be for the country to adopt policies within an essentially

laissez-faire environment to create an atmosphere of indigenous inclusion.

There have been arguments made against affirmative action type of intervention to help propel

indigenous entrepreneurs in this sector. One such argument has been the existing rules of

globalization, the WTO and the ITU. Yes, blatant disregard for world order is dangerous, but

finding ways within the existing legal framework to chart a course for our own destiny is a right

that cannot be [challenged]. And, we must do it sooner than later!

7

There is no magic to young people in the US, India and Israel exerting influence in innovations

in telecom and IT. Most of these young people have been educated in the same classrooms as

some of our young brains. The difference is that one group is working in an environment that is

enabling and encourages and rewards creativity and the other is restrained.

8

Introduction of Reliance Communication

Reliance Communications Ltd. (commonly called RCOM) is an Indian broadband and

telecommunications company headquartered in Navi Mumbai, India. RCOM is the world's 16th

largest mobile phone operator with over 150 million subscribers. Established on 2004, a

subsidiary of the Reliance Group. The company has five segments: Wireless segment includes

wireless operations of the company; broadband segment includes broadband operations of the

company; Global segment include national long distance and international long distance

operations of the company and the wholesale operations of its subsidiaries; Investment segment

includes investment activities of the Group companies, and Other segment consists of the

customer care activities and direct-to-home (DTH) activities

Industry- Telecommunications

Founded 2004 Founder(s) Dhirubhai Ambani

Headquarters Navi Mumbai, Maharashtra, India

Area served India Key people Hasit Shukla (President)

Products Fixed-line and mobile telephony, broadband and fixed

television, IT and network services

Revenue 22,766 crore (US$4.54 billion) (2011)

Net income 1,345 crore (US$268.33 million) (2011) Total assets

billion) (2011) Employees 28,065 (2010)

Area served India Key people Hasit Shukla (President)

line and mobile telephony, broadband and fixed-line internet servic

television, IT and network services

22,766 crore (US$4.54 billion) (2011)

(US$268.33 million) (2011) Total assets 80,395

billion) (2011) Employees 28,065 (2010)

9

line internet services, digital

80,395 crore (US$16.04

Main Subsidiaries Of Reliance C

Reliance Telecommunication Limited (RTL)

In July 2007, the company announced it was buying US

delivery services company Yipes Enterprise Services for a cash amount of

equivalent of US$300 million). The deal was announced of the overseas acquisition, the Reliance

group has amalgamated the United States

crore). RTL operates in Madhya Pradesh, West Bengal, H

Assam, Kolkata and Northeast, offering GSM services.

Reliance Tech Services

Reliance Tech Services is the IT wing of Reliance Anil Dhirubhai Ambani group. It provides IT

consultancy, business process outsourcing and software

Communications and other ADA group companies. It provides services to industry sectors such

as telecommunications, financial services, utilities, entertainment, infrastructure, BPO operations

and health care.

Reliance Globalcom

RGL owns the worlds largest private undersea cable system,

integrated with Reliance Communications. Over 110,000

robust Global Service Delivery Platform, connecting 40 key business markets in India, the

Middle East, Asia, Europe, and the U.S.

Reliance Internet Data Center (RIDC)

RIDC provides Internet Data Center

and Chennai. Spread across 650,000 sq

management services to large, medium and small enterprises. It is one of the leading data center

service provider in India and provides services like

private server and data security. It has launched cloud computing services,

under its infrastructure as a server (Iaas) a

Of Reliance Communication

Reliance Telecommunication Limited (RTL)

In July 2007, the company announced it was buying US-based managed Ethernet

delivery services company Yipes Enterprise Services for a cash amount of


group has amalgamated the United States-based Flag Telecom for $210 million (roughly

crore). RTL operates in Madhya Pradesh, West Bengal, Himachal Pradesh, Orissa, Bihar,

Assam, Kolkata and Northeast, offering GSM services.


consultancy, business process outsourcing and software development for Reliance



L owns the worlds largest private undersea cable system,[4] spanning 65,000

integrated with Reliance Communications. Over 110,000 km of domestic optic fiber p


Middle East, Asia, Europe, and the U.S.

Reliance Internet Data Center (RIDC)

Data Center (IDC) services located in Mumbai, Bangalore

. Spread across 650,000 sq ft (60,000 m2) of hosting space, it offers IT infrastructure

agement services to large, medium and small enterprises. It is one of the leading data center

service provider in India and provides services like colocation, managed server hosting, virtual

private server and data security. It has launched cloud computing services,[5]

under its infrastructure as a server (Iaas) and software as a service (Saas) portfolio, which

10

Ethernet and application

1200 crore (the


based Flag Telecom for $210 million (roughly 950

imachal Pradesh, Orissa, Bihar,


development for Reliance



spanning 65,000 km seamlessly

km of domestic optic fiber provides a


Bangalore, Hyderabad

) of hosting space, it offers IT infrastructure

agement services to large, medium and small enterprises. It is one of the leading data center

anaged server hosting, virtual

offering product

nd software as a service (Saas) portfolio, which

11

enables enterprises, mainly small and medium, a cost-effective IT infrastructure and application

on pay-per-user model.

Reliance Digital TV

Reliance Big TV launched in August 2008[6] and thereafter acquired 1 million subscribers within

90 days of launch,the fastest ramp-up ever achieved by any DTH operator in the world. Reliance

Big TV offers its 1.7 million customers DVD-quality pictures on over 200 channels using

MPEG-4 technology.

12

Role of Reliance Communication In Economy

Reliance communication in history have made as dramatic a contribution to their country’s

economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline)

and convergent (voice, data and video) digital network. It is capable of delivering a range of

services spanning the entire infocomm (information and communication) value chain, including

infrastructure and services — for enterprises as well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionising the way India communicates and networks,

truly bringing about a new way of life.

Reliance Communications is India’s largest information and communications service provider

with over 100 million subscribers. The company is the realisation of our founder’s dream of

bringing about a digital revolution that will provide every Indian with affordable means of

communication and a ready access to information.

The flagship company of the Reliance Group, Reliance Communications began operations in

1999 and has over 50 million subscribers today. It offers a complete range of integrated telecom

services. These include mobile and fixed line telephony, broadband, national and international

long distance services, data services and a wide range of value added services and applications

aimed at enhancing the productivity of enterprises and individuals.

Reliance Globalcom, a division of Reliance Communications, spearheads the Global Telecom

operations of India’s largest Integrated Telecom Service Provider. Reliance Globalcom brings

together the synergies of Reliance Communications Global Business encompassing Enterprise

Services, Capacity Sales, Managed Services and a highly successful bouquet of Retail products

& services comprising Global Voice, Internet Solutions and Value Added Services. The

company serves over 1200 enterprises, 200 carriers and 1.5 million retail customers in 50

countries across 5 continents.

13

Features Of Reliance Communication

Wireless

Ranked 2 in India, 4 globally (single country), dual technology

Globalcom

Largest global private submarine cable network, blue-chip

global clients

Enterprise

One stop shop for all large corporates and SMBs for

communications, networking and IT infrastructure needs

Growth of reliance communication

Infrastructure Geared for exponential growth of application and content traffic

2 Customers Diverse base includes the largest data users in developed and

emerging markets

3 Products & Services Complete suite of products to capture growth across the value chain

4 Organisation Multicultural, close to customer, strong on-the-ground presence

14

Current Market Position Of Reliance Communication

Reliance Communications (formerly Reliance Communications Ventures) is one

of India's largest providers of integrated communications services. The company

hasmore than 20 million customers and serves individual consumers, enterprises,

and c a r r i e r s , p r o v i d i n g w i r e l e s s , w i r e l i n e , l o n g d i s t a n c e , v o i c e ,

d a t a , a n d i n t e r n e t communications services through a number of operating

subsidiaries.

The companysells communications and digital entertainment products and services

through itsch a i n o f R e l i an ce Web W o r ld r e t a i l ou t l e t s . Th e c omp a n y ' s

R e l i an ce In f o co mm subsidiary provides wireless communications services

throughout India. RelianceCommunications is part of the Reliance - Anil Dhirubhai Ambani

Group.The current network expansion undertaken by Reliance is the largest wireless

network expansion undertaken by any operator across the world.It was with this belief in

mind that Reliance Communications (formerly RelianceInfocomm) started laying 60,000

route kilometres of a pan-India fibre optic backbone.

This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s

70th birthday, though sadly after his unexpected demise on 6 July 2002.Reliance

Communications has a reliable, high-capacity, integrated (both wireless andwire line) and

convergent (voice, data and video) digital network. It is capable of d e l i v e r i n g a

r a n g e o f s e r v i c e s s p a n n i n g t h e e n t i r e i n f o c o m m ( i n f o r m a t i o n

a n d communication) value chain, including infrastructure and services — for enterprisesas well

as individuals, applications, and consulting.Today, Reliance Communications is revolutionizing

the way India communicates andnetworks, truly bringing about a new way of life.We will

leverage our strengths to execute complex global-scale projects to facilitateleading-edge

information and communication services affordable to all individualconsumers and

businesses in India.We will offer unparalleled value to create customer delight and

enhance business productivity

15

Telecommunication Companies In Ghana

Ghana Telecom

Ghana Telecom is one of the largest employers in the country employing close to 4,000

Ghanaians. The company’s operations are a source of employment for communication

center operators and agents who retail the Ghana Telecom payphone, eazyfone, eazytalk

recharge and top-up cards.

One Touch

Onetouch is fast becoming the most preferred network in Ghana because of the premium it

places on the provision of quality voice service, GPRS data services and coverage,

especially to the rural parts of Ghana.

MTN

MTN is fully committed to introduce ,implement, and continously improve the quality

Telecommunication service, and to a leading Telecom service provider in Country.

16

Key Regulatory Tasks and Regulators before Telecom Sector

Reforms in Ghana

Regulatory Task Formal Regulator

Licences: A. General MOTC

B. Frequency GFRCB

Tariffs: A. Service Charges GP&T and MOTC

B. Frequency Charges GFRCB

Allocation of number services MOTC, GP&T

Frequency Regulation GFRCB

Type Approval GP&T,GFRCB

Interconnection Agreements MOTC, GP&T

Arbitration MOTC, GP&T

International Regulatory Cooperation MOTC, GP&T,GFRCB

Finance Regulations

(Budget and Borrowings)

MOF

Performance Contract MOF

Legal Means of Enforcement MOTC, GP&T,GFRCB

Advisory Function vis-à-vis MOTC None/GP&T

17

Liberalization of Ghana's Telecom Sector

infrastructure

Telecommunications services available in Ghana include voice fixed telephony, mobile cellular,

data, paging, private networks and other value-added services. There currently exist a new

submarine fibre optic cable tapped from the Voltacom in addition to Vodafone's SAT3 and most

recently the landing of Glo's submarine cable. Two more fibre optic facilities will be added to the

existing ones very soon and these will help create competition and do away with the current

monopoly provider of international bandwidth by Vodafone Ghana and support the ongoing

convergence of technologies.

FixedNetwork

Statistics released this year show that as at December 2008, the country's total fixed lines in

service were 279,000 while fixed line teledensity was 1.2 share sale of Ghana Telecom to

Vodafone UK in 2008, which attracted a highly competitive bidding, showed the huge potential

of the market. With an accelerated growth pace in market penetration, opportunity continues to

exist in the provision of basic voice services as well as Internet access through the mobile

networks, given the country's poorly developed fixed-line infrastructure.

Liberalisation has made mobile phones very attractive to many Ghanaians who want to enjoy

flexibility in communication. The country ended January 2009 with an active subscriber base of

11.96 million. The statistics, issued by NCA, revealed that the number of mobile subscription

grew by 16.8 of the total subscriber base, followed by Tigo with a subscriber base of 2.8 million

or 23 of the total base. Zain Ghana, which launched operations in November 2008, ended

January 2009 with 463,824, leaving Kasapa behind with 386,732 subscribers. Glo Ghana is yet

to begin operations. NCA statistics further reveal that the mobile penetration in Ghana reached

98.

18

Suggestions

There are very few companies in Ghana which are in communication sector. So if

reliance communication will start their business in Ghana then it will beneficial for them.

Telecommunications is one of the aspects of a wider trend of technological and market

convergence and encompasses broadcasting, information technology and electronic commerce.

Liberalization of the sector in Ghana liberalize the policies for communication sector so it will be

beneficial for reliance communication for entrance in Ghana.

Ghana launched the Accelerated Development Plan (ADP) for telecommunications which

became a blue print for liberalization to ensure sustained improvement in the availability,

reliability and quality of public services; improve public access in rural and urban areas to

telecoms services through the provision of payphone facility; expand the coverage of mobile

phones; so it can provides benefits to reliance communication.

Liberalisation has made mobile phones very attractive to many Ghanaians who want to enjoy

flexibility in communication.

Experts have indicated that the boundaries between fixed and mobile markets will increasingly

be blurred in Ghana given the poor conditions of the traditional fixed-line network, the mobile

operators have taken over as providers of basic telecommunication services.

The reliance communication has five segments: Wireless segment includes wireless

operations of the company; broadband segment includes broadband operations of the

company; Global segment include national long distance and international long distance

operations of the company and the wholesale operations of its subsidiaries; Investment

segment includes investment activities of the Group companies, and Other segment

consists of the customer care activities and direct-to-home (DTH) activities. They have

an opportunity to start their business in Ghana.

Reliance communication can provide their services in Ghana by the means of best quality

service because companies which are operating in Ghana are not with sufficient quality

service.

19

Conclusion

Scope for reliance communication in Ghana

Telecom industry in Ghana, no matter the economic constraints, is a very booming marketplace

where providers are no longer thinking of minimizing losses but out-competing their colleagues

in profiteering. The reason is that there is a very lucrative threshold market that has consumers

with unguided curiosity contending with very liberal consumer and policy protection guidelines.

Ghana where everybody is still trying to bridge the technological gap and to catch up with the

developed world. Mobile phones have been, especially, widely embraced in Ghana mainly

because of its value in facilitating linkages with relations, friends, partners and customers. To

this end, Ghana is known to be one of the countries with the highest degree of patronage and

usage of mobile technology.

The telephone system is run by Ghana Telecom and is relatively reliable. Telephone users in the

country increased from 218,000 in 2000 to three million (3,000,000) as at the end of

2005.overwhelmingly popular use of mobile telephones in the cities.

Since the privatization of Ghana Telecom (GT) in 1996, it has increased phone lines from 78,900

to 130,000 as at December 1997. Ghana Telecom now accounts for over 73% of telephone lines

in the country.

OXFORD SCHOOL OF MANAGEMENT, BALIYASHANPage 1

A

GLOBAL / COUNTRY STUDY AND REPORT

ON

Submitted toGujarat Technological University



UNDER THE GUIDANCE OFFaculty Guide

Mr. Mahendra Prajapati(Assistant Professor)

Submitted by: Soni Payal (108000592086) Sudan Ramandeep(108000592006) Soni Hitesh(108000592073) Solanki Chirag( 108000592101)

Batch: 2010-12] MBA SEMESTER IV

MBA PROGRAMAffiliated to Gujarat Technological University

Ahmedabad


PREFACE

The research provides an opportunity to a student to demonstrate application of

his/her knowledge, skill and competencies required during the Global Country

study. GCSR also helps the student to devote his/her skill to analyze the various

business opportunities in various countries across the globe, to evaluate them and

to provide feasible recommendations on the provided data.

We have selected The Ghana as the country and we have studied the company

Ebuddy.


ACKNOWLEDGEMENT

This Project has been made possible through the direct and indirect Co-operation of various

persons, who have inspired us at every step of my work. It is a matter of pride for us to

acknowledge my profound gratitude to Mr. Mahendra Prajapati , Oxford School of Management,

who is our guide and always facilitates us in gaining practical knowledge.

And above all, we are beholden to our Parents and other family members for their blessing and

encouragement in completing this task.

Our Group member are:-

SOLANKI CHIRAGKUMAR HARGOVINDBHAI OXFORD/MBA/2010/083

SONEJI HARDIK RAJNIKANT OXFORD/MBA/2010/084

SONI DIXITKUMAR DINESHBHAI OXFORD/MBA/2010/085

SONI HITESHKUMAR LAXMAN BHAI OXFORD/MBA/2010/086

SONI PAYALBEN ATULKUMAR OXFORD/MBA/2010/087

SUDAN RAMANDEEP KAUR H OXFORD/MBA/2010/088


INDEX

Sr no Particular PAGE NO.

1 Introduction of the Trust bank ltd and its role in the economy of Gambia Structure, Functions and Business Activities of Trust bank ltd

5

2 Comparative Position of Trust bank ltd with India and Gujarat 8

3 Policies and Norms of Gambia for trust bank ltd, taxation etc 11

4 Business Opportunities in future 12

5 Conclusions and Suggestions 14


1. INTRODUCTION OF TRUST BANK LTD

Trust Bank Ltd plays a leading role in fulfilling its corporate responsibilities to the Gambian

society. Other than the numerous donations and sponsorships that the bank makes to various

applicants in the society, health, education and sports occupy special priority areas for

intervention.

In the year 1997 when Trust bank came into being there were just 5 banks in The Gambia. Most

of these banks were located in the greater Banjul Area and the total number of bank branches did

not exceed 20. Bank head office branches closed for the day at 1300, their branches closed at

1230 and reopened from 1600 to 18Mission Statement

1.1 Mission

The banks mission is to be the leading bank in The Gambia by operating a profitable banking

institute, which meets the needs of all local, international, corporate and individual clients and

returns excellent results to our shareholders.

To achieve this, they continue to set new standards by delivering quality services and innovative

products with an inspired team dedicated to serving their Customers, Environment and

Community at large in the most caring manner.


What makes us different?

The Gambia’s local Bank.

Widest target market.

15 outlets, widely dispersed, making us the most accessible bank in The

Gambia.

Leadership made up of the most experienced banking practitioners in our

country.

Strong board of Directors all locally based.

Efficient staff from diverse backgrounds with an enviable local knowledge.

1.2 Features:

Offers the most competitive exchange rates in the market.

The fastest and most convenient way to make transfers.

We provide free advice to customers about the international market.

Foreign Currency Sale/Purchase.

Collection of Cheques/ Drafts.

Documentary Letters of Credit.

Telegraphic Transfers (SWIFT).

Foreign Currency Deposit Account.

Currency Notes Shipments.

Bills of lading Indemnities.

Encashment services for Master card, American Express and Visa card.


Organisation chart

Albert D. Osei Chairman

B. A. M. Zwinkels Director

Charles Obeng-lnkoom Company Secretary

Isaac Owusu-Hemeng MD

Kojo Okai Andah Director

Security Profile

Sector Banks

Industry Financials

Stock Exchange Ghana Stock Exchange

Country Ghana


1.3 Role of trust bank ltd in economy of Ghana.

Trust Bank Limited “Proudly Gambian”

Trust Bank Ltd plays a leading role in fulfilling its corporate responsibilities to the

Gambian society. Other than the numerous donations and sponsorships that the bank makes to

various applicants in the society, health, education and sports occupy special priority areas for

intervention.


2 Structure of trust bank ltd

Guaranty Trust Bank Gambia Ltd is a joint initiative and partnership between a Nigerian leading

bank - Guaranty Trust Bank plc (GTBank plc) and a number of Gambian businessmen and

institutions. The ownership structure of the bank is as follows:

GTBank plc - 77.9%

Mr Amadou Samba - 12.6%

Other Gambian and non Gambian Individuals / Institutions - 9.5%

In line with the internationally accepted practice, Guaranty Trust Bank Gambia Limited's

financial performance is consolidated annually with the GTBank plc financial results,


2.1 Function of Trust Bank Ltd

Over the years, we have remained committed to providing professional banking services for

various facets of The Gambian economy. Our Corporate Bank Group, Commercial Bank Group,

Public Sector Group, Operations and IT Group, and Retail Group all offer personalized services

to meet our customers' every need.

Our Corporate Bank Group services multi-nationals and large corporate organizations in

the Manufacturing, Energy, Aviation, Telecommunication, Financial Institutions, Import

and Export sectors amongst others.

Our Commercial Bank Group is structured to suit the Banking needs of middle market

players such as Government contractors, traders and medium scale corporate

organizations.

Our Public Sector Group deals directly with Government Para-statals at the national and

local Government levels providing financial advisory services and other tailor made

products for them.

Our Retail Bank Group is structured to develop and serve individual and Owner Managed

Enterprises / Small & Medium Scale Enterprises (OMEs / SME's) account holders, as

well as respond to the personal needs of the Bank's High Net Worth customers.

Retail banking

Sme banking

Islamic banking

Corporate bankin

International banking

Mobile banking


3 Policies and Norms of Gambia for trust bank ltd

Policy Advantage for Agency Advantage for clients/groups

Loan size as small as possible (average US$ 350)

secure greater outreach (more clients)

not intimidating for the poorest encourages self-selection of the

poorest provides the poorest with credit

experience

Loan term as short as possible (1-6 months)

greater cash flow more profitable

encourages diversity builds borrower confidence greater borrowing power quicker rotations

Repayment as frequently as possible (weekly)

greater security greater cash flow

less burden to individual less burden to the group if one

member defaults

Savings required, tied to loan amount

guarantee guarantee meet incidental expenses (individual

or group) meet emergency needs provide additional credit fund community projects

Collection of savings

monthly, handled by the Trust Bank

cost-effective use of loan officer's time

ownership of savings

Immediate reloans

determined by repayment, no. of group members, business growth and monitored by group

cost-effective use of loan continual cashflow


4 Opportunities in future of banking sector in gambia( Ghana)

Sustaining growth: challenges and Opportunities

In 2010 , the story of the banking sector in Ghana was one of recovery;recovery fromlosses and

weak profitability. This was marked bytraditional key players like GCB and BBGL posting very

strong results.Industry profit before tax increased by 95% from GH¢298.1 million in2009 to

GH¢580.3 million in 2010.The rebound in profitability was propelled by improvements in

thecredit markets which allowed banks to improve quality of loanportfolio and release provisions

set aside in the previous years forcredit losses. Growth in operating assets, non-interest bearing

depositand wider interest margin also contributed to the favourableprofitability.

Prospects of a 12% growth in GDP stimulated by the oil sector isencouraging for the economy as

a whole. Also, working in favour ofthe Ghanaian economy are the strong commodity prices

especiallycocoa price at US$3,20o a tonne (March 2010), estimatedcocoaproduction for the

2010/2011 season at all time high of 904,000tonnes and gold price above US$1,500 an

ounce.Questions have been asked as to whether the wide margins and levelof growth seen in

2010 is sustainable, considering declining interestrates, lower yield from government risk free

securities and theappearance ofmaturing and saturated traditional markets.Multinationalentities

(MNCs), large and medium size customers areaggressively negotiating competitive borrowing

and deposit rates..


Aligning with local market and global trendsThe analysis of our survey pre-supposes that for the growthexperienced tobesustainable, there

has to be a move localindustry players aligning their business activities with localmarket and

global trends. This realignment will fuel theirability to make asignificant impact in converting

the unbankedpopulation in Ghana and enable banks to sustain their longterm growth.

Banks in their quest to grow must develop new economicmodels withdeeperfocusonalternative

revenue streams,transformation of customer segmentation, Risk management,robustManagement

Information Systems and Human Capitalgeared towards a performance culture. The prospects for

thefuture are rife and backed with the right transformationstrategy, banks in Ghana stand to

benefit fromsustainedprofitability.

Transformation in their economic model through identificationof alternative revenue streams

will deepen their wallets in the areaof Transaction services, and Money market activities . There

is acompelling need to grow non interest based income to dilute the

concentration in interest income.As the established market segments mature, the Banks

mustcomplement the model of servicing large and local corporate withthat of the fast growing

Small and Medium Enterprises (SMEs)market segment, focusing on customer segments that

bestcompliment the bank’s service advantage. As the catalyst forgrowth within the Ghanaian

economy and the governmentestablishing a regulatory framework for Public Private

Partnership(PPP), FastMoving Consumable Goods, TelecommunicationSupport Services,

Construction, Distribution, Retail, Agriculture

and Agro-based sectors are attractive opportunities.

Transformation in their RiskManagement and Governanceframework is essential for growth

in the long term and attractinginvestors. Synonymous to growth is exposure to risks. Banksmust

therefore strengthen their current RiskManagementframework to include EarlyWarning

strategies and respond tooperational risk and credit risk envisaged. Addressing occurrenceof a

risk event takes up executive time and distracts managementfrom its focus on profitable growth.

Transformation in Information Systems is the backbone forsustaining product development and

improving service delivery.Strengthening the IT infrastructure such as centralised


processing,disaster recovery plans, and Information Security should become a

priority.Attracting, developing and retaining human capital, the key forpursuingsustainable

growth, is critical. In a survey conducted by PwCon “Unlocking Opportunities – Perspectives on

Strategic andEmerging Issues in AfricaWest Coast Banking”, risk management,capital

management and compliance were noted as the three top areasbanks are currently experiencing

the greatest shortage of skills. Asuccessful human capital transformation should originate from

bankscore business operations and must fit into the bank’s strategy to besuccessful. This

approach ensures that change is not only performancedriven but also centered around the

knowledge, skills and talent thatsupport performance and growth.

Conclusion

In conclusion, the Ghanaian economy is growing and the bankingindustry will continue to

experience profitable growth. To remaincompetitive and be sustainable in the long term requires

the industryto innovate and transformits operations. Responding successfully toemerging

external threats, will require industry players to focus ondeveloping an efficient, effective, and

flexible banking infrastructure.Increased competition, growing customer demands, and

newregulations will continue to add complexities to the operations ofbanks. These complexities

can lead to an inability to captureopportunities or respond successfully to global or local

challenges.

1 OXFORD SCHOOL OF MANAGEMENT

REPORT ON

1st AFRICAN FINANCIAL

SERVICES LIMITED

IN PARTIAL FULFILLMENT OF REQUIRMENT OF MASTER OF

BUSINES ADMINISTRATION COURSE THROUGH

Prepared By:

Pathania Aditya (En No: 108000592083)

Patel Sejal (En No: 108000592062)

Patel Vinay (En No: 108000592054)

Patel Yogesh (En No: 108000592037)

Prajapati Bharat (En No: - 108000592042)

Punj Parth (En No:- 108000592034)

OXFORD SCHOOL

OXFORD SCHOOL OF MANAGEMENT

PROJECT

REPORT ON

AFRICAN FINANCIAL

SERVICES LIMITED



Pathania Aditya (En No: 108000592083)

Patel Sejal (En No: 108000592062)

Patel Vinay (En No: 108000592054)

Patel Yogesh (En No: 108000592037)

108000592042)

108000592034)

Submitted to:




Submitted to:

OF MANAGEMENT


ACKNOWLEDGEMENT

We have been able to prepare our report successfully and we acknowledge a special thanks to

all those people without whose support it was impossible for us to make the project report.

We would hereby take this opportunity to show our gratitude towards all my mentors for

what I have learnt during my training. A good response, feedback and co-operation given by

whole staff helped me in gaining knowledge and solving our queries. we convey our sincere

thanks to all the officials of 1st African financial service limited.

The successful completion of this project could not have been possible without the co-

operation and support of my faculty guide and company guide who have given complete

information for the project.

we feel immense pleasure to thank Mr. Japan shah, Principal, Oxford school of management,

mehsana. For making available all facilities in fulfilling the requirements for the research

work.

we forward our appreciation to respected coordinator of the oxford school of management,

mehsana Prof. Neha gupta.


INDEX

SR.NO CONTENTS PAGE NO

1 Introduction 5

1.1 Company Introduction 6

1.2 Company Profile 7

1.3 History 8

1.4 Products And Services 10

1.5 Mission Statement 11

2 Ghana 12

2.1 Economic History 13

2.2 Macro-Economic Trend 15

2.3 IMF Support To Ghana 16

2.4 Ghana Export Tree Map 17

3 Comparative 18

3.1 \Comparative Position With India 19

4 Competitors 21

4.1 Competitors For 1st African Financial Services Ltd With India 22

4.2 Competitors For 1st African Financial Services Ltd In India

Rules And Regulation

23

5 Top List 5 NBFC 24

6 Scope Of Financial Institution in India 27

7 Suggestions 28

8 Conclusion 30

9 Bibliography 32


1.1 COMPANY INTRODUCTION

1st African Financial Services Ltd. is located in P. T. 185 Bakaekyir, Accra, Ghana.

Company is working in Banks, credit unions business activities.

African Financial Services or “AFS” is a microfinance business that specializes in the

provision of credit products to consumers. We believe that the development of innovative

financial services products to serve the consumer is fundamental to supporting development

and empowering individuals in Africa.

The primary lending model is based on a responsible and robust tripartite relationship

between employer, borrower and AFS. We determine affordability based on proven income

and use proprietary methodology to set lending levels together with the individual borrower.

Repayments are made directly from the employer at a payroll level and ability to repay is

continually monitored with the borrower.

In addition to prudent lending, we have a central belief that our processes should be swift

and efficient. This means that in general cash advances are made immediately to borrowers

who meet the appropriate criteria.

Some of the main uses of AFS loans are:

To support the individual during times of emergency

To allow the development of family entrepreneurial activities

To support children in education

To purchase life-enhancing assets

To finance unforeseen medical emergencies

AFS currently operates in Ghana, where our products are targeted to the formally

employed. We intend to expand operations in other key sub-Saharan countries, and to expand

the product set to include other credit and insurance products.


1.2 COMPANY PROFILE

Name:- 1 ST AFRICAN FINANCIAL SERVICES LIMITED

Register office details:- 4th Floor - Ebene Skies Rue de L'Institut

Eben , Mauritius

Tel: +(230) 404 8000

Fax: +(230) 404 2188

Ghana office details: - 4th Floor L'Aine Office Complex

Plot 38 Adama Road

off Kojo Thompson Road

Adabraka.

Ghana

Tel: +(233) 302 241080

Fax: +(233) 302 241081

South Africa office details:- Jicama Financial Services

Unit 4 - Tijger Valley Office Park

Silver Lakes Road

Silver Lake Pretoria

South Africa

Tel: +27(0)12 809 4166

Fax: +27(0)12 809 3085

E-mail enquiries:- [email protected]


1.3 HISTORY

Mr. Scholtz arrives as Founder and Chief Executive of African Financial Services

(AFS) a Finance House with its Head Quarters in Mauritius, funded through a London

based company.

Claude Scholtz, previous Chief Operating Officer and one of the founders of Bayport

Financial Services (Ghanafin), viewed by many as the father of large scale

commercial payroll based lending in Ghana, says he is extremely pleased to be back

in Ghana and views Ghana as his second home.

Scholtz says that African Financial Services made an extensive study of this business

throughout Africa and came to the conclusion that Ghana is still the perfect place to

launch AFS due to its political and economical stability. Mr. Scholtz commented that

many economists are of the view that the Ghana cedi will appreciate in the next few

years, making it an opportune time for dollar investments into Ghana.

In Mr Scholtz's words “The potential appreciation of the cedi makes it very attractive

for a company such as ours to invest in Ghana and almost takes out the

currency risk”.

Mr. Scholtz also believes that the market in Ghana needs a company such as AFS. “It

is proven that the development of any country's economy is in the hands of the small

and medium scale entrepreneur of which Ghana has bountiful”.

Mr. Scholtz says entrepreneurs are not the problem in Ghana; the problem is to give

them access to Capital.

This, Mr. Scholtz says should be priority number one. There are almost 1 million

formally employed people in Ghana most of which has spouses or other family

members working in the entrepreneurial informal sector.


AFS understands this client well and want to provide these customers with the access

to Credit and the service it deserves.

Some of the main uses of AFS loans are: to support the individual during times of

emergency, to allow the development of family entrepreneurial activities, to support

children in education and to purchase life-enhancing assets African Financial Services

also plan to participate and play a leading role in the burgeoning of secondary banking

systems such as cell-phone banking, funeral-insurance plans and credit-bureau

systems.


1.4 PRODUCTS AND SERVICES

AFS offers a variety of personal, unsecured loan products to formally employed

clients where there is a deduction agreement in place with the relevant employer.

AFS distinguishes itself from its competitors in its service delivery. With a correctly

completed application form and relevant supporting documents and/or approval by the

employer, a customer will be credit vetted on the spot by our trained sales agents and can

receive a cash loan within 20 minutes.

Tourism has become one of Ghana's largest foreign income earners (ranking third in

1997), and the Ghanaian Government has placed great emphasis upon further tourism support

and development.

The financial services in Ghana have seen a lot of reforms in the past years. Ghana

through the Banking (Amendment) Act 2007 has include the awarding of General Banking

license to qualified Banks and this allows Offshore Banks to operate in the country. Barclays

Bank (Ghana) limited has become the first Bank in Ghana to be awarded the General

Banking license in the Country. It has therefore become possible for non-resident individuals

and foreign companies to open offshore Bank Accounts in Ghana.


1.5 MISSION STATEMENT

To become a leading financial institution in Africa, specialising in providing smart,

innovative and tailored made products and services to the previously unbanked, supported by

service excellence.

This will be made possible through smart technological solutions and investment in the

people who serve our clients


2.1 ECONOMIC HISTORY

Independence:-

At independence, Ghana had a substantial physical and social infrastructure and $481

million in foreign reserves. The Nkrumah government further developed the infrastructure

and made important public investments in the industrial sector. With assistance from the

United States, the World Bank, and the United Kingdom, construction of the Akosombo Dam

was completed on the Volta River in 1966. Two U.S. companies built Valco, Africa's largest

aluminium smelter, to use power generated at the dam. Aluminium exports from Valco were

a major source of foreign exchange for Ghana.

Many Nkrumah-era investments were monumental public works projects which were

assets for the country, agricultural and industrial schemes. With cocoa prices falling and the

country's foreign exchange reserves fast disappearing, the government resorted to supplier

credits to finance many projects. By the mid-1960s, Ghana's reserves were gone, and the

country could not meet repayment schedules. To rationalize, the National Liberation Council

abandoned unprofitable projects, and some inefficient state-owned enterprises were sold to

private investors. On three occasions, Ghana's creditors agreed to reschedule repayments due

on Nkrumah-era supplier credits. Led by the United States, foreign donors provided import

loans to enable the foreign exchange-strapped government to import essential commodities.


Acheampong government:-

To restructure the economy, the NRC, under General Acheampong (1972–78), undertook

an austerity program that emphasized self-reliance, particularly in food production. These

plans were not realised, however, primarily because of post-1973 oil price increases and a

drought in 1975-77 that particularly affected northern Ghana. The NRC, which had inherited

foreign debts of almost $1 billion, abrogated existing rescheduling arrangements for some

debts and rejected other repayments. After creditors objected to this unilateral action, a 1974

agreement rescheduled the medium-term debt on liberal terms. The NRC also imposed the

Investment Policy Decree of 1975—effective on January 1977—that required 51% Ghanaian

equity participation in most foreign firms, but the government took 40% in specified

industries. Many shares were sold directly to the public.


2.2 MACRO

This is a chart of trend of gross domestic product of Ghana at market prices.

Ghana:

Interpretation:

As we can see in above table the GDP of Ghana is continuously increases as compared to

India and our country’s GDP is decrease. In 2011 Ghana country’s GDP is more than double

in previous year 2010.

4.70%

9.10%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

2009

Year Gross Domestic Product

2009 4.7%

2010 5.7%

2011 13.7%


2.2 MACRO-ECONOMIC TREND


India:



5.70%

13.70%

8.80%

7.10%

2010 2011

GHANA INDIA

Gross Domestic Product Year Gross Domestic

2009 9.1%

2010 8.8%

2011 7.1%


India:



Gross Domestic Product

9.1%

8.8%

7.1%


2.3 IMF SUPPORT

Since an initial August 1983 IMF standby agreement, the economic recovery program

has been supported by three IMF standbys and two other credits totaling $611 million, $1.1

billion from the World Bank, and hundreds of millions of dollars more from other donors. In

November 1987, the IMF approved a $318-million, 3-year extended fund facility. The second

phase (1987–90) of the recovery program concentrated on economic restructuring and

revitalizing social services. The third phase, focused on financial transparency and

macroeconomic stability is scheduled for March 1998.

Ghana intends to achieve its goals of accelerated economic growth, improved quality

of life for all Ghanaians, and reduced poverty through macroeconomic stability, higher

private investment, broad-based social and rural development, as well as direct poverty-

alleviation efforts. These plans are fully supported by the international donor community and

have been forcefully reiterated in the 1995 government report, Ghana: Vision 2020.

Privatization of state-owned enterprises continues, with about two-thirds of 300 parastatal

enterprises sold to private owners. Other reforms adopted under the government's structural

adjustment program include the elimination of exchange rate controls and the lifting of

virtually all restrictions on imports. The establishment of an interbank foreign exchange

market has greatly expanded access to foreign exchange.


2.4 GHANA EXPORT TREE MAP

The medium-term macroeconomic forecast assumes political stability, successful

economic stabilization, and the implementation of a policy agenda for private sector growth,

and adequate public spending on social services and rural infrastructure. The ninth

Consultative Group Meeting for Ghana ended 5 November 1997 after deliberations in Paris.

Twenty-four countries and donor entities were represented at this meeting called by the

World Bank on behalf of the Ghanaian Government. The World Bank announced that, of the

targeted disbursement level of $1.6 billion sought from the donor community for 1998-99,

they foresaw only a $150 million shortfall in commitments, and that this shortfall would be

easily realized should Ghana rapidly enact its macroeconomic program.

The government repealed a 17% value-added tax (VAT) shortly after its introduction in

1995, which resulted in widespread public protests. The government reverted to several

previously imposed taxes, including a sales tax. The government has set in motion a program

to re-introduce a VAT bill, with implementation in 1998 after an extensive public education

campaign.


3.1 COMPARATIVE POSITION WITH INDIA

NEW DELHI: African Finance Corp (AFC) is planning to join hands with

Infrastructure Development Finance Corp (IDFC) to provide investment advice and

financing to Indian companies seeking to invest in infrastructure projects in Africa.

AFC President and CEO Andrew Alli said the cooperation agreement with IDFC was

expected to "start off soon" and hoped to work with "one to two companies in the first

year."

"Financing capacity in Africa is quite high," Alli told IANS, seeking to dispel the

impression that there was a shortage of financing in African countries.

He gave the example of the recent instance of eight Nigerian banks jointly providing

financing worth $650 million for the expansion of Etisalat Nigeria, the main mobile

telecom operator in the region.

Main One submarine fibre optic cable system launched last year was an AFC

infrastructure project fully African-conceived, financed and executed. It has enhanced

connectivity between West Africa and Europe through fibre optic cables between

Portugal, Ghana and Nigeria.

AFC is a private sector-led investment bank and development finance institution

based in Lagos, Nigeria. Its shareholders include several African financial institutions,

the Central Bank of Nigeria and private and corporate shareholders.

It is partnered by Nigeria, Guinea-Bissau, Sierra Leone, The Gambia, Liberia, Guinea

and Ghana.


Africa has a huge requirement of capital for its infrastructure development which

cannot be met by foreign aid alone. AFC was set up in 2007 to help mobilise and

channel capital to infrastructure projects in Africa. It is now the market leader in its

field.

The institution focuses on power and renewable energy, transport infrastructure from

roads, rail, aviation and ports, manufacturing and heavy industry, telecom and oil and

gas exploration and production.

The power sector would be one major area of interests to Indian companies, Alli said.

"We advocate platform strategy for investment across Africa, rather than projects for

a single country. This helps in diversification, increases the scope of project and

makes financing the project easier," he said.

AFC helps prospective investors identify where to invest and also offers its expertise

and insight into African infrastructure as well as local knowledge of political risks. It

also offers project development and management, trade and equipment financing and

technical advisory services

As Indian banks are establishing themselves in Africa, it was also time African banks

were allowed to set up branches in India as it would facilitate trade with India, the

AFC president suggested, Alli said.

A couple of African banks had opened offices in China, Saudi Arabia and the UAE in

the recent years, he added.


4.1 COPETITORS FOR 1ST AFRICAN FINANCIAL SERVICES

LTD WITH INDIA

1) All-India Development Banks (AIDBs) :-

a) Industrial Development Bank of India (IDBI):- Established in July 1964

b) Industrial Finance Corporation of India Ltd (IFCI Ltd):- Established 1948

c) Industrial Investment Bank of India Ltd (IIBI):- Established 1985

2) Specialized Financial Institutions (SFIs):-

a) IFCI Venture Capital Funds Ltd (IVCF)

b) ICICI Venture Funds Ltd

c) Tourism Finance Corporation of India Ltd. (TFCI)

3) Investment Institutions:-

a) Life Insurance Corporation of India (LIC):- Established in 1956

b) Unit Trust of India (UTI)


4.2 COPETITORS FOR 1ST AFRICAN FINANCIAL SERVICES

LTD IN INDIA RULES AND REGULATION

Regulations of financial institutions differ from one country to another. The financial

institution regulations are delineated by the government authorities of different countries. The

principal objective of these government authorities is to regulate the financial activities going

on in the country.

The financial regulatory bodies control the stock markets, bond markets, foreign

exchange markets, and various other segments of financial markets.

The financial regulations are laid out for the purpose of creating a fair and customer-

friendly environment in the financial market of a particular country, which is conducive for

economic growth. Reserve Bank of India (RBI), Securities and Exchange Board of India

(SEBI)

The statutory objectives of the regulatory bodies of financial institutions include the

following:

Market confidence: Sustaining confidence in the financial markets is one of the most

important objectives of the financial regulatory bodies

Consumer protection: Ensuring the most suitable level of customer protection

Public awareness: Encouraging public awareness about the financial market through

imparting educational programs

Eliminating financial crime: The financial regulations are designed for the purpose

of reducing financial crimes and frauds


TOP FIVE NBFCs IN INDIA

1) Housing Development Finance Corporation Limited

2) Power Finance Corporation Limited

3) Rural Electrification Corporation Limited

4) National Bank of Agricultural and Rural Development

5) Infrastructure Development Finance Company Limited

1) Housing Development Finance Corporation Limited:

Housing Development Finance Corporation Limited is shortly called as HDFC, which

was incorporated in the year 1997 with the objective of offering long-term finance to

households to meet their housing requirements. HDFC is basically engaged in the promotion

of housing ownership by offering long-term finance to households. Some of the products

offered by them are land purchase loans, home equity loans, short-term bridge loans, home

extension loans, home improvement loans and home loans.

2) Power Finance Corporation Limited:

Power Finance Corporation Limited came into existence in the year 1986 with the

objective of promoting the power sector in the nation. The company is engaged in offering

finance for implementation of power projects and for development of new power plants. The

company offers both non-financial and financial support to power equipment manufacturing

firms, municipal bodies, co-operative societies, private sector power companies, joint sector

power companies, central power companies and state electricity departments.

3) Rural Electrification Corporation Limited:

Rural Electrification Corporation Limited shortly called as REC came into existence in the

year 1969 for the purpose of promotion of rural electrification projects in the country. The

company became an NBFC in the year 1998 and it plays a crucial role in expansion,

modernization and creation of power infrastructure in all segments of power sector in the

nation covering distribution, transmission and generation as well. It is also offering financial


support to emerging areas like non-conventional energy and decentralized distributed

generation.

4) National Bank of Agricultural and Rural Development:

Shortly called as NABARD, this NBFC came into existence in the year 1982 for

enabling flow of credit for promotion of rural non-farm and agricultural sectors. It acts as an

apex institution in rural development and agricultural credit. The functions of NABARD has

been classified into four categories namely supervision, promotion & development, financial

services and credit planning.

5) Infrastructure Development Finance Company Limited:

Infrastructure Development Finance Company Limited shortly called as IDFC came

into existence in the year 1997 in the Indian state of Tamil Nadu. In the year 2005, it became

a public entity and it is engaged in offering project finance, asset management, investment

banking, principal investment & treasury and project finance services. The business activities

of this NBFC can be divided into two types namely fund-based and non-fund based

businesses.


6 SCOPE OF FINANCIAL SERVICES

1. Traditional activites

A. Fund based activites

B. Non- Fund based activites

2. Mordern activites

A. low profitability

B. Economic liberalization

C. Customer services

D. Global impact


1. Mr. Scholtz says entrepreneurs are not the problem in Ghana; the problem

is to give them access to Capital so the capital should be accessed.

2. If the company of African Finacial Service Ltd comes in Idia then our

income as well as national income will increase.

3. Access to credit and other financial services such as savings and

insurance products shuld be taken into consideration as they are imortant

factors to enhance welfare.

4. "Financing capacity in Africa is quite high," Alli told IANS, seeking to

dispel the impression that there was a shortage of financing in African

countries.

5. The GDP of ghana is good than our country so if it collaborates their

company with our company, then there are chances to increase our

country’s GDP.


CONCLUSION:-

After studying the company “1st American Financial service LTD” I reached at

conclusion that the company has achieved its entire desire goal with its hard work and unique

idea. Some of the main uses of AFS loans are:- to support the individual during times of

emergency, to allow the development of family entrepreneurial activities, to support children

in education, to purchase life-enhancing assets, to finance unforeseen medical emergencies.

The financial regulatory bodies control the stock markets, bond markets, foreign exchange

markets, and various other segments of financial markets. The company is having a good

manpower and provides good facilities to their employees. The GDP of the company shows

an increasing trend. The performance of the company can be considered as satisfactory. As

per our opinion 1st American Financial service LTD has a wide scope to develop in coming

years.


WEBSITE:-

WWW.GOOGLE.COM

WWW.WIKIPEDIA.COM

WWW.AFS.IN.ORG

WWW.GFMAG.COM

BOOK:-

FINANCIAL MARKET AND FINANCIAL SERVICES

(VASANT DESAI)

1

A GLOBAL / COUNTRY STUDY AND REPORT

ON “A Study for ICICI Bank Pvt. ltd.”

Submitted to Gujarat Technological University

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF


UNDER THE GUIDANCE OF Abhinisha Jani

Assist. Professor

Submitted by:

STUDENT NAME Enrollment No

Patel Rinal A 108000592100 Patel Ritul B 108000592046 Patel Satyam R 108000592065 Patel Ronak D 108000592057 Patel Sachin D 108000592043 Patel Ronak P 108000592052

Batch: 2010-12,

MBA SEMESTER IV

Oxford School Of Management MBA PROGRAMME

Affiliated to Gujarat Technological University Ahmadabad May, 2012

2

Students’ Declaration

(On separate page)

We hereby declare that the report for Global/ Country Study Report entitled “A STUDY OF

ICICI BANK PVT LTD in GHANA is a result of our own work and our indebtedness to

other work publications, references, if any, have been duly acknowledged.

Place : …….. (Signature)

Date : (Name of Student)

------------------------------------------------------

Institute’s Certificate

(On separate page)

“Certified that this Global /Country Study and Report Titled “……………… ……………” is

the bonafide work of Mr./ Ms……… …………………….. (Enrollment No………..), who

carried out the research under my supervision. I also certify further, that to the best of my

knowledge the work reported herein does not form part of any other project report or

dissertation on the basis of which a degree or award was conferred on an earlier occasion on

this or any other candidate.

Signature of the Faculty Guide

(Name and Designation of Guide)

(Certificate is to be countersigned by the Director/HoD)

_______________________________________________________

3

PREFACE

The research provides an opportunity to a student to demonstrate application of his/her knowledge, skill and competencies required during the Global Country study. GCSR also helps the student to devote his/her skill to analyze the various business opportunities in various countries across the globe, to evaluate them and to provide feasible recommendations on the provided data.

We have selected The Ghana as the country and We have studied the company A Study for ICICI Bank Pvt. ltd

4

ACKNOWLEDGEMENT

We have been able to prepare our report successfully and we acknowledge a special thanks to

all those people without whose support it was impossible for us to make the project report.

We would hereby take this opportunity to show our gratitude towards all my mentors for

what I have learnt during my training. A good response, feedback and co-operation given by

whole staff helped me in gaining knowledge and solving our queries. We convey our sincere

thanks to all the officials of 1st African financial service limited.

The successful completion of this project could not have been possible without the co-

operation and support of my faculty guide and company guide who have given complete

information for the project.


mehsana. For making available all facilities in fulfilling the requirements for the research

work.


Mehsana Prof. Abhinisha jani.

5

INDEX

No Topic Page

1 ICICI bank Pvt. Ltd.

1.1 About ICICI bank 4

1.2 About Us 5

1.3 History 6

1.4 Director's Profiles 8

1.5 Investor Relations 9

2 National investment bank ltd(Ghana)

2.1 About National investment bank ltd 10

2.2 About the bank 11

2.3 Products & Services 12

2.4 Base Rate of NIB Ltd. 14

2.5 Banking sector development 15

2.6 Interest rates trends 16

2.7 Comparison Between India And Ghana 17

FINDINGS 18

SUGGESTIONS 19

CONCLUSION 20

6

1. ICICI bank Pvt. Ltd.

1.1 About ICICI bank

Type Public

Traded as BSE: 532174

NSE: ICICIBANK

NYSE: IBN

BSE SENSEX Constituent

Industry Banking, Financial services

Founded 1955

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people K. V. Kamath (Chairman)

Chanda Kochhar (MD & CEO)

Products Credit cards, Consumer banking, corporate banking, finance and

insurance, investment banking, mortgage loans, private banking, and

wealth management

Revenue increase US$ 13.812 billion (2011)

Profit increase US$ 1.366 billion (2011)

Total assets increase US$ 119.69 billion (2011)

Total equity increase US$ 12.401 billion (2011)

Employees 79,978 (2011)

Website www.icicibank.com

7

1.2 About Us

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91

billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the

year ended March 31, 2011. The Bank has a network of 2,752 branches and 8,003 ATMs in

India, and has a presence in 19 countries, including India.

ICICI Bank offers a wide range of banking products and financial services to corporate and

retail customers through a variety of delivery channels and through its specialized

subsidiaries in the areas of investment banking, life and non-life insurance, venture capital

and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in

United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International

Finance Centre and representative offices in United Arab Emirates, China, South Africa,

Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches

in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National

Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on

the New York Stock Exchange (NYSE).

8

1.3 History

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial

institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was

reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering

in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of

Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by

ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at

the initiative of the World Bank, the Government of India and representatives of Indian

industry. The principal objective was to create a development financial institution for

providing medium-term and long-term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution offering

only project finance to a diversified financial services group offering a wide variety of

products and services, both directly and through a number of subsidiaries and affiliates like

ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial

institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards

universal banking, the managements of ICICI and ICICI Bank formed the view that the

merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities,

and would create the optimal legal structure for the ICICI group's universal banking strategy.

The merger would enhance value for ICICI shareholders through the merged entity's access

to low-cost deposits, greater opportunities for earning fee-based income and the ability to

participate in the payments system and provide transaction-banking services. The merger

would enhance value for ICICI Bank shareholders through a large capital base and scale of

operations, seamless access to ICICI's strong corporate relationships built up over five

decades, entry into new business segments, higher market share in various business segments,

particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of

ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial

9

Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was

approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of

Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and

the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's

financing and banking operations, both wholesale and retail, have been integrated in a single

entity.

10

1.4 Director's Profiles

Chanda Kochhar

Managing Director and Chief Executive Officer

N.S. Kannan K. Ramkumar Rajiv Sabharwal

Executive Director & CFO Executive Director Executive Director

Board Members

Mr. K. V. Kamath, Chairman

Mr. Sridar Iyengar

Dr. Swati Piramal

Mr. Homi R. Khusrokhan

Mr. Arvind Kumar

Mr. M.S. Ramachandran

Dr. Tushaar Shah

Mr. V. Sridar

Ms.ChandaKochhar,

Managing Director & CEO

Mr.N.S.Kannan,

Executive Director & CFO

Mr.K.Ramkumar,

Executive Director

Mr.RajivSabharwal,

Executive Director

http://www.icicibank.com/aboutus/board-of-directors-sridar-iyengar.html

http://www.icicibank.com/aboutus/board-of-directors-swati-piramal.html

http://www.icicibank.com/aboutus/board-of-directors-homi-khusrokhan.html

http://www.icicibank.com/aboutus/board-of-directors-arvind-kumar.html

http://www.icicibank.com/aboutus/board-of-directors-ms-ramachandran.html

http://www.icicibank.com/aboutus/board-of-directors-tushaar-shah.html

http://www.icicibank.com/aboutus/board-of-directors-v-sridar.html

http://www.icicibank.com/aboutus/board-of-directors-v-sridar.html

11

1.5 Investor Relations

ICICI Bank disseminates information on its operations and initiatives on a regular basis. The

ICICI Bank website serves as a key investor awareness facility, allowing stakeholders to

access information on ICICI Bank at their convenience. ICICI Bank's dedicated investor

relations personnel play a proactive role in disseminating information to both analysts and

investors and respond to specific queries

12

2. NATIONAL INVESTMENT BANK LTD

2.1 About National investment bank ltd

Type Parastatal

Industry Financial Services

Founded 1963

Headquarters Accra, Ghana

Key people Emmanuel Ablo, Chairman

P.A. Kuranchie, Managing Director

Products Loans, Savings, Checking, Investments, Debit Cards, Credit Cards, Mortgages

Revenue increase US$4 million

13

2.2 About the Bank:

Established in March 22, 1963, the National Investment Bank Ltd. was the first development bank in Ghana to promote and strengthen rapid industrialization in all sectors of the Ghanaian economy. NIB Ltd. now operates as a universal bank in focusing on development/commercial banking activities.

NIB Ltd. has undergone management, institutional and financial restructuring, which has strengthened the organization and now has 27

branches nationwide.

NIB Ltd. has in the past participated in foreign lines of credit, which were administered by Bank of Ghana to meet term loan and working capital needs of the Bank's customers.

We are also one of the designated financial institutions, which sources funds from Export Development and Investment Fund (EDIF) for on lending to exporters as Term and Working capital loans.

The Bank was awarded the prestigious Euro Market Award in 1994 and recently won the 2003 Best Bank of the Year for Long Term Loan Financing.

We play a leading role in developing a number of highly successful industrial projects in Ghana, through equity and debt financing. Some of these are Nestle Ghana Ltd., Nexans Kabelmetal (Ghana) Ltd., Merchant Bank (Ghana) Ltd. and Total Ghana Ltd.

Products and Services

Apart from its development banking activities, NIB Ltd. also provides corporate and commercial banking facilities involving both domestic and foreign transactions at very competitive rates and on flexible terms. They include, Current and Savings Account, Call Deposits, Fixed Deposits, Loans and Advances, Personal Loans, Overdrafts, Western Union Money Transfer, Mobile Cash Management Services and Warehousing.

NIB Ltd. is networked nationwide and renders efficient banking services.

To ensure that our customers receive consistent and efficient services, highly trained personnel of the Bank attend to standard banking needs promptly. We also deliver quality service, tailored to meet requirements of customers.

14

2.3 Products & Services

To consolidate and expand the customer base of the Bank, the following products and services have been designed to meet the needs of our customers:

CORPORATE BANKING

• Bancassurance - Employers Liability

• Bancassurance - Imex Insurance

• Bancassurance - Loan Protection Accounts

• Companies Under Companies Act

• Societies, Clubs & Associations

• Sole Proprietorship

RETAIL BANKING

• Bancassurance

• Bancassurance - Auto Insurance

• Bancassurance - Home Insurance

• Bancassurance - Life Protector

• Bancassurance - Mortgage Protection Accounts

• Bancassurance - Personal Accident Insurance

• Home Bound Account

• Joint Account

• Local Money Transfers

• Personal Loans

• Savings Account

• Trust Account

http://www.nib-ghana.com/en/products-services/product-overview.php?item=2


















15

INTERNATIONAL BANKING

• Foreign Currency Account (FCA)

• Foreign Exchange Account (FXA)

INVESTMENTS

• Call Deposit

• Fixed Deposit (FDRS)

• Gilt Edge Securities

• Investment Advisory Services

• Treasury Bills

ELECTRONIC BANKING

• Cash link ATM

• E-Zwich

• Online Banking

OTHER SERVICES

• Banc assurance - How To Apply

• Bankers Draft

• Biometric Passport Form Sales

• DSTV Payment Services

• Mobile Cash Collection

• NLA Fast Pay Services

• Safe Custody

• Water Bill Payment

DEVELOPMENT BANKING



















16

• Overdraft Facilities

2.4 Base Rate of NIB Ltd.

Ø BASE RATE AS AT APRIL 06 2012 IS 21%

Ø FOREIGN CURRENCY EXCHANGE RATES

Fri, April 06, 2012

Currency to Cedi We Buy at We Sell at

US Dollar 1.6500 1.7100

Euro 2.2300 2.3000

Pound Sterling 2.6400 2.6980

• INTERNATIONAL CURRENCY RATES

Fri, April 06, 2012

Currency Bid Offer

Canadian Dollar to CFA 0.85 2.34

Australian Dollar to CFA 10 14

Euro to Ghana cedi 2.0900 2.1200

2.5 Banking Sector Development


17

The banking system recorded steady growth in assets and profitability in 2011. Total assets

increased by 26.8 per cent year‐on‐year to end 2011 at GH¢22.6 billion, compared with

GH¢17.4 billion in 2010. The growth in assets was funded mainly by deposits, which grew

by 35.3 per cent on a year‐on‐year basis to GH¢16 billion in 2011, compared to a growth of

31.7 per cent in 2010. Growth in capital and reserves amounting to GH¢739 million also

supported banking sector balance sheet expansion.

The Capital Adequacy Ratio (CAR) of the industry declined to 17.4 per cent in 2011 from

19.1 per cent in 2010, although it remained well above the statutory level of 10 per cent. The

overall liquidity position also increased due to higher funding (deposits and capital) as

against a slow growth in the credit portfolio.

In terms of earnings, all the indicators (Return on Equity, Return on Assets and Return on

Earnings Assets) improved in 2011 compared to the 2010 levels. The Non‐Performing Loan

ratio declined from 16.1 per cent in 2010 to 14.2 per cent at the end of 2011.

The Credit Conditions Survey, conducted by the Bank of Ghana in January 2012, points to a

tightening of credit stance by banks for both households and enterprises. The tightening of

credit stance was more pronounced for small and medium enterprises on account of

inadequate cashflow to support repayment, weak financial performance and inadequate

security.

The Bank of Ghana has also, this month, conducted stress tests of the banking system. The

tests confirm that the banking system is resilient to interest and exchange rate shocks.

However, credit and deposit concentration risks remain.

Private sector credit increased in 2011 compared to the decline in 2010. By December 2011,

private sector credit had reached GH¢8.6 billion from GH¢6.8 billion in 2010, representing a

year‐on‐year growth of 26.3 per cent. Services and Commerce and Finance sectors accounted

for 74.3 per cent of the total DMB credit allocated in 2011.

Broad money (M2+) growth eased from 33.8 per cent in 2010 to 33.2 percent in 2011. This is

attributed to the slower accumulation of Net Foreign Asset (NFA).

2.6 Interest rates trends

18

Interest rates generally trended down in 2011. On the money market, the 91‐day Treasury bill

rate fell from 12.3 per cent to 10.3 per cent while the 182‐day rate also fell from 12.7 per cent

to 11.1 per cent. However, in January 2012, the 91‐day Treasury bill rate increased to 10.9

per cent while the 182 day rate increased marginally to 11.2 percent.

Similarly, the interest rate on the 1‐year note declined from 12.7 per cent to 11.3 per cent and

the 2‐year note fell from 12.7 per cent to 12.4 per cent. The 1‐year note has since moved up

to 11.4 percent while the 2‐year note has dropped to 12.3 percent.

Average base rates of banks went down from 25.8 per cent to 22.5 per cent in 2011 with

quotations within the range of 16.8 – 25.9 per cent. Average lending rates also declined from

27.6 per cent to 25.9 per cent in 2011, with Annual Percentage Rates for enterprises ranging

between 17.4 – 30.8 per cent.

2.7 Comparison between India and Ghana

19

CURRENT INTREST RATE:

India 8.50%

Ghana 13.5%

CURRENT PAR CAPITAL INCOME:

India 3256 $

Ghana 1219 $

CURRENT POPULATION RATE:

India 1,210,193,422

Ghana 24,233,431

FINDINGS

20

Ø On the continuous phenomenal growth in the financial sector, interest rates are still very

high for the average Ghanaian worker and a great majority of Ghanaians are unbanked.

Ø The bank rate of Ghana is higher than Indian bank rate.

Ø Savings culture is critically lacking in the Ghanaian society partly because of our history of

military rule and sheer ignorance.

Ø Here-denomination of the cedi and the development of appropriate technology solutions such

as cash cards, mobile phone banking, and fingerprinting are necessary if access to financial

markets for the poor is to be improved.

Ø In the past it used to be very frustrating transacting business in Ghanaian banks particularly if

one was not privileged to be a member of one of the few elite banks operating in the country.

Ø In the past retail financial services focus on the needs of the relatively few wealthy

customers. It is most unfortunate that banking had become a preserve of a few, no wonder

that only 10 per cent of the Ghanaian population have bank accounts.

SUGGESTIONS

21

Ø The banking sector should explore ways in which they can take advantage of the

government’s policy of making the “private sector the engine of growth” to market their

products.

Ø They should decrease the bank rate.

Ø They have to enlarge the savings culture, which will very beneficial for the Ghanaian people.

Ø The BOG should begin to educate the population of the benefits associated with depositing

monies with the banks.

Ø They should use to clear transaction with their customer and also with connected all people

who considered in banking network.

Ø They should improve the bank relationship management for make the proper value of the

banking services.

CONCLUSION

22

Notwithstanding this phenomenal growth in the financial sector, interest rates are still too

high for the average Ghanaian worker and a great majority of Ghanaians are unbanked. High

interest rates deter people from borrowing from the banks. The role of the global financial

institutions is changing and so are the banks operating in Ghana. The banking sector should

explore ways in which they can take advantage of the government’s policy of making the

“private sector the engine of growth” to market their products. Further, there should be

unwavering commitment to domestic resources mobilization.

The latest incident happened on March 15th at the Takoradi Market popularly referred to as

the Market Circle. Billions of cedis (cash) were consumed in the fire. Savings culture is

critically lacking in the Ghanaian society partly because of our history of military rule and

sheer ignorance. The BOG should begin to educate the population of the benefits associated

with depositing monies with the banks. The “on-site cash collection” introduced by the BoG

should be intensified to achieve it intended objective. Crime is a particular concern to many

Ghanaians, and carrying cash is viewed as a high risk. The re-denomination of the cedis and

the development of appropriate technology solutions such as cash cards, mobile phone

banking, and fingerprinting are necessary if access to financial markets for the poor is to be

improved. In the past retail financial services focus on the needs of the relatively few wealthy

customers. It is most unfortunate that banking had become a preserve of a few, no wonder

that only 10 per cent of the Ghanaian population have bank accounts. Besides, majority of the

shareholders of these banks are Africans and instead repatriating huge profits as in the case of

Barclays and Standard Chartered banks to their British shareholders, On the whole, the entry

into the financial sector by these new African banks has stimulated the economic growth of

the country by providing employment to many people. Above all there is a healthy

competition and any bank that wobbles will definitely loose out. The once exploited and

abused Ghanaian consumer is now the beneficiary of these new developments in the financial

sector.

1


ON

GOLDEN STAR RESOURCES LTD.

Submitted to





Abhinisha Jani

Assist. Profesior

Submitted by

PATEL PRAKASH A. 108000592004PATEL RAVI K. 108000592074PATEL JITENDRA N. 108000592105

PATEL NIRAJ M. 108000592108 PATEL RETEL S. 108000592012 PATEL NIRAJBEN M. 108000592016

[Batch: 2010-12]MBA SEMESTER IV

Submitted to:


Affiliated to Gujarat Technological University AhmadabadMay, 2012

2

PREFACE

The research provides an opportunity to a student to demonstrate application of his/her knowledge, skill and competencies required during the Global Country study. GCSR also helps the student to devote his/her skill to analyze the various business opportunities in various countries across the globe, to evaluate them and to provide feasible recommendations on the provided data.

We have selected The Ghana as the country and We have studied the company GOLDEN STAR RESOURCES LTD.

3

ACKNOWLEDGEMENT

We have been able to prepare our report successfully and we acknowledge a special thanks to all

those people without whose support it was impossible for us to make the project report.

We would hereby take this opportunity to show our gratitude towards all my mentors for what I

have learnt during my training. A good response, feedback and co-operation given by whole staff

helped me in gaining knowledge and solving our queries. we convey our sincere thanks to all the

officials of 1st African financial service limited.

The successful completion of this project could not have been possible without the co-operation

and support of my faculty guide and company guide who have given complete information for

the project.


mehsana. For making available all facilities in fulfilling the requirements for the research work.


mehsana Prof. Abhinisha jani.

4

INDEX

SR.NO PARTICULAR PAGE NO.

1 COMPANY PROFILE 4

COMPANY INTRODUCTION 5

3 ROLE IN ECONOMY OF GHANA 6

4 MINING IN INDIA 8

5 GOLD MINES COMPANIES IN INDIA 9

6 BUSINESS SUMMARY 11

7 TAXATION POLICY 12

8 IMPORT & EXPORT BARRIERS 13

9 IMPORT & EXPORT POTENTIAL 15

10 FINDING 16

11 SUGGESTION 17

12 CONCLUSION 18

5

Company Profile

Full name:- Golden Star Resources ltd

Headquarters:-

Golden Star Resources Level 2, No. 1 Milne Close Airport Residential Area P.O. Box 16075 KIA, Accra, Ghana; Accra; Accra

Status:- ListedLegal Form:- Other non-liability limitedOperational Status:- OperationalISIN CODE :- GH0000000748Financial Auditors:- Price Waterhouse Coopers (2009)Total Employees:- 2,200

Tel: +23321668712/23321668656

6

Company Introduction

The company was founded in 1984 and is based in Littleton, Colorado.

Golden Star is a mid-tier gold mining company over a quarter-century in age and total historical production of over two million ounces of gold. In addition to operational growth, the Company has consistently grown through exploration and corporate development activities. . Lastly, Golden Star has a long-term commitment to sustainability with particular emphasis on health, education and the environment.

Golden Star’s goal is to grow its business in Ghana, other selected countries in West Africa through organic growth and accretive acquisitions. The Company is well financed and has a strong, experienced and operationally focused management team.

Over its 25-plus year history, Golden Star has maintained an aggressive exploration program. Year over year, our exploration budget has ranged between $10 and $20 million per year.

The exploration expenditures for 2011 are expected to total $20 million. While the majority of our exploration activities are proximal to our operations in Ghana, we have a property portfolio that includes projects in Sierra Leone, Côte d’Ivoire, Burkina Faso, and Niger in West Africa and Brazil in South America.

7

Role in Economy of Ghana

Ghana’s Economy:

Ghana’s economy is not different in structure and process from that of other developing countries. Its main exports are gold, timber and cocoa.

Ghana has a growing services sub-sector (finance/banking, tourism, education and telecoms), which accounts for about 29% of formal employment; industry, including mining and other extractive/processing activities account for between 10-14% of employment. It has per capita income around US$500 per annum, budget revenues of about US$4.2bn and expenses of about US$5.4bn.

Annually, therefore Ghana depends on development partners, donor agencies and international financial houses for various loans, grants and aid that are designed for two main objectives: budget support and development assistance. Agriculture (including cocoa) and services provide about 37% of GDP each, with the balance taken up by industry/processing.

The country’s external reserves (both gold and foreign exchange) are estimated to be no more than US$3bn (each year). In 2007, Ghana had credit ratings of B+ from credit rating companies Standard & Poor’s and Fitch. Real growth in Gross Domestic Product (GDP) has averaged around 6% over the last 4 years.

Structurally, the economy is still heavily reliant on cocoa, raw mineral exports, foreign exchange remittances in to the country by Ghanaians in the diaspora, and donor aid.

An announcement from Ghana’s public utilities committee that power rates may more than double for mining companies and steel mills appears to be the result of growing consumption and higher oil prices. Ghana has experienced a chronic shortage of power that some feel poses a sever threat to economic productivity. However, new projects, some with the help of China, are expected to ease its electricity.

One company that will be affected is Golden Star Resources Ltd., a pure gold play with two in Ghana. Golden Star said the price hike will translate into a cost increase of $60 to $85 per ounce based on forecasted production of 370,000 to 425,000 ounces of gold.

8

Official Government Policy on Mining

Since the late 1980s, the official policy position of the Government of Ghana on mining has been to encourage active involvement of the private sector and of large multinational concerns in the development of the country’s large mineral deposits.

The legal framework that regulates the sector in large measure represents the thinking, intentions, aims and policy objectives of the State. These may be summarized as: Recognition of land surface rights as held by land owners but below surface resources as held by the State for and on behalf of the people,

Preference for formalization and State regulation of all mining activities,

Distributive revenue regime covering royalties, tax, dividend accrued from State carried interest in mining operations (the government owns at least 10% of all private mining operations),

Appropriate compensations for land acquired, and surface disturbances,

Requirement for rehabilitation and closure plans and bonds

Protection of the environment.

9

Mining India

India [ Images ] has a long history of mining for gold and references pertaining to old mine sites dating back to 200 years are available from official records.

But gold mining has not picked up in modern times in the country, due to a plethora of problems.

India is the largest importer and consumer of gold in the world; but gold mining remains at very low levels. The country imported an estimated 443 tons of gold during in the first six months of the current fiscal, valued at $5.82 billion.

But the country's domestic gold production was at 3.05 tons during the financial year 2006.

Faced with the low production of gold, the Indian government has asked domestic gold miners to actively explore joint venture with foreign companies to speed up exploration of the yellow metal within the country. Gold mining in India is really quite small and hardly ever gets talked about. For a country that consumes so much gold, it is a pity that there aren’t more gold mines in India.

During 2008-09, the value of gold mining production in India stood at Rs. 312 cores which are0.99% of the total metallic mineral production in the country at Rs. 31,533.97 cores.

The gold production stood at 2,464 kegs, and decreased by 17% compared to the previous year with Karnataka accounting for 99% of the total production.

I always assumed that the low gold production is due to the fact that we don’t have much gold reserves, so I was a little surprised to read that the Ministry of Mines estimates the total gold ore resources at 390,289,237 tones However, this number is so high because the actual gold which can be extracted from the ore is very low. It can be as low as 2.5 grams of gold per ton of gold ore, but I couldn’t find what the estimated number for India’s gold ore deposits is likely to be.

For reference, India holds tons of gold as reserves.

10

Gold Mines Companies in India

DECCAN GOLD MINES

Introduction

Deccan Gold Mines Limited (DGML)is the first private sector gold exploration company in India to be listed on the Mumbai Stock Exchange. Established as a gold exploration company in 2003, DGML now has a large portfolio of exploration prospects in the states of Karnataka, Andhra Pradesh, Kerala and Rajasthan.

Address-Deccan Gold Mines Ltd.,'Raja Icon Building', 89/1,3rd Floor, Marathalli Outer Ring Road, Banglore-560037

Tel- +91.80.40428400

Fax- +91.80.40428401/402

[email protected]

11

Hutti Gold Mines Limited:

Introduction

Hutti Gold Mines Limited (HGML) is a company located in the state of Karnataka, India & engaged in the mining in the & production of gold. It was first established as Hyderabad Gold Mines in 1947.It is the only company in India which produces gold by mining and processing the gold ore. - Owned by the Government of Karnataka, HGML has two plants located in Hutti and Chitradurga.- HGML mines gold from its main gold mine located in Hutti and other satellite mines.- It is the first Indian member of the World Gold Council.Renukacharya; an MLA of the BJP is the Chairman of the company. The executive is headed by Dr.Chandrasekhar IAS and holds thepost of Managing Director.

KOLAR GOLD FIELDS

Introduction

KGF is one of the major gold mines in India & is situated in the south of Bangarpet taluk of the Kolar district, Karnataka state to east flow ridge of hills of which Dod Betta hill, 3195 feet above

sea level, is the most conspicuous point, It is about 30 km from Kolar & 100 km from Banglore.The gold mines were closed in 2003 due to reducing deposits & increasing costs.

Address-Kolar District Centre, Ground Floor, DOR Building, DC Office, Compound,Kolar-563101

Tel- 08152-222852

[email protected]

Website-kolar.nic.in

12

Business Summary

Golden Star Resources Ltd., through its subsidiaries, engages in the acquisition, exploration, development, and operation of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operations that cover approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine and carbon-in-leach processing plant located to the east of Bogoso/Prestea in southwest Ghana.

The company also holds interests in gold exploration projects in Sierra Leone, Niger and Côte d'Ivoire, and South America; and holds and manages exploration properties in Brazil. Golden Star Resources Ltd. was founded in 1984 and is headquartered in Littleton, Colorado.

During the year ended December 31, 2010, activities in French Guiana were terminated with the sale of its French subsidiary to Auplata. As of December 31, 2010, all of the Company’s gold production was shipped to a South African gold refinery in accordance with a gold sales contract. Golden Star’s Bogoso development properties include Tailings processing project and Prestea south properties.

The Prestea South project is located on the Ashanti Trend, southwest of the town of Prestea and approximately 20 kilometers southeast of the Bogoso processing plants. During 2010, exploration field activities at Golden Star’s 51% owned Sonfon project in Sierra Leone focused on ground geophysical surveys and diamond drilling testing the high grade zones.

The Sonfon project is owned by a joint venture between Golden Star and African Aura Mining, with Golden Star as the majority owner and project manager.

13

Taxation Policy

The recent announcement (November 23, 2007) by the NPP Minister of Finance, impose taxes on air time of cellular phones brings to question what many people are asking about Ghana’s heavy duties and taxes and how the moneys are used and accounted for.

Ghanaians earn an average twenty times less than their counterparts in Europe and North America. And yet the poor Ghanaian is forced to pay two to three times the prices of imported manufactured items including cars, car parts, machinery, electronics, cement and building materials, fabric and ordinary breakfast cereals.

The difference is taxes imposed by government. It is to be noted that even neighboring countries with less resources than Ghana, Togo and Ivory Coast, have less taxes on cars and many items. It is a shame for a nation to make no effort to reduce government expenses but keep imposing higher taxes on needed products and services such as petrol, while ignoring the obvious loopholes due to poor management.

GNP as a government in waiting has no problem with tax schemes in Ghana except for the high percentage and number of fees and taxes at the ports and the eventual distribution of revenues in the nation’s regions and districts.

Ghanaians by nature like decent things in life and are a sharing society. One can therefore say that taxing Ghanaians fairly for the country's development is not a policy that anybody would oppose. After all who would not like to have water and good roads, knowing that water from tankers cost twice or more than what they would pay if they had pipe water directly to the house.

Ghanaians do not have a problem paying their fair share of taxes, but when you look at the roads, the gutters, the water situation, the power shortages, which will soon reach a critical situation again, and above all the Parliamentary Finance Committee and auditor’s reports, then you can see why this Government should not even be taxing Ghanaians at all.

We must make it clear that when the Government starts instituting discipline, enforcing laws, and punishing corrupt officials for pilfering from the public purse, then GNP would support any tax scheme meant to improve the lives of the people in Ghana.

14

Import & Export Barriers

Overview

South Africa has import and export regulations that include label restrictions, import procedures, import restrictions, exports, export restrictions, trade restrictions and package classification.

Imports

• All companies that are registered with South Africa’s Department of trade and Industry can participate in import trade without a need to apply for unique trading rights. Licenses are required for certain products: These include shoes, waste products, petroleum and certain agricultural products. Importers must have a license before they can import any of these products. Therefore, the license issued by the Import and Export Administration Bureau is valid for 12 months.

• Import Procedures -According to South African gazettes, imports such as waste products need approval from the relevant departments and licensing from the Export Administration Bureau. Importers often face delays in obtaining these licenses; this, affects them for exporting their goods to South Africa on time.

• Import Restrictions -South Africa has stringent import controls on agricultural and poultry products and does not allow the importation of radiation processed meat. Fruits such as apples, cherries, and pears are subject to inspection. South Africa has a ban on the imports of all birds and related products.

• Restrictions on Textile - In June 2006, the Chinese administration and South African administration signed a note titled “The Memorandum of Understanding on the Promotion of Trade and Economic Technological Cooperation between "the Peoples Republic of China and South Africa”. The Agreement states that from January 1, 2007 to December 31, 2008, 31 categories of textiles such as cotton products, curtains, and knitting trousers from China would be subject to import quotas.

Exports

• South African exporters are required to be registered in the Customs house. Supervision of export licensing is forced upon strategic products, non-redeemable resources, agricultural products, scrap metals and so on. Before the Customs House could grant an export license or waste metals, consideration should be given to South African lower stream enterprises at a discounted rate of their export prices.

15

• Export Restrictions -South Africa is the main producer and exporter of chromium in the world and makes up 75% of the worlds reserves. To increase the added value of its exports and create job opportunities at home; the South African government has decided to reduce the export of raw materials including gold, platinum, and chromium. South African enterprises have demanded that the government restrict the export of chromium to China and impose export tariffs on chromium.

Trade Restrictions

• Tariff Barriers to Imports and Exports-Although Tariff reforms by South Africa, there is a complex tariff schedule and this can create ambiguity for imports to the county. South Africa imposes high tariffs on products such as mutton, milk, sweet products and maize to help support and maintain the industries in its own country.

16

Import & Export Potential

Export Potential between India and Africa There is a huge potential for trade between India and Africa, even though Africa accounted for only 5.3 per cent of India's exports and 13.9 per cent of India's Imports during 1999-2000. There is immense potential for export of agricultural goods from India to several African countries such as agricultural implements and machinery, machinery for construction of roads and bridges, irrigation equipments, diesel set, mining machinery etc.

Speaking at the inauguration of a Conference on "Investment on Africa" organized by the PHD Chamber of Commerce & Industry, in New Delhi on Nov. 22, 2000. Shri Omar Abdullah, Minister of State for Commerce and Industry, stressed that India and the African countries could undertake joint exploration of mining and minerals, petroleum and petroleum products, precious stones and gems & jewellery for optimizing value-addition.

Besides, there were a number of other potential items of exports from India to Africa including textiles and garments, drugs & pharmaceuticals, electronic goods, household appliances, bicycles and parts, automobiles and auto components, rice, tobacco, computer hardware & software etc., Shri Abdullah said and added that potential items of imports from Africa to India included wood pulp and wood products, crude minerals and mineral products, newsprint, rough diamonds etc.

17

Findings

Golden star resources ltd is an international gold mining & exploration. Companyproducing gold in Ghana.

It conducts gold exploration in other countries in West Africa, & in South America.

It holds interests in several gold exploration projects in Ghana & elsewhere in WestAfrica.

India’s gold production ratio is 0.99% not at least 1% so. there is no hope for establishing of gold mining of this company in India.

18

SUGGESTION

Rehabilitate roads

Provide employment to local youth and support education

Provide potable water

Provide more clinics and schools and a major hospital

Provide some education and reorientation to people who receive compensation to enable them know what/how to utilize the compensation monies

Relocate the town (of Prestea) to distance it from the harmful effects of the mine’sactivities (this was a point stressed by many respondents)

Make company buses available to local people to assist local transportation.

19

CONCLUSION

The case of GSR in Ghana is obviously an interesting one. Our findings as researchers suggest that GSR has advanced on a continuum of responsibility and responsiveness to the CSR challenges and realities.

If a historical approach is taken, we can clearly see that from difficult community relations in the early 2000s, GSR has by 2009 chalked significant progress in relating to its community and stakeholders. If an absolutist approach is taken – in respect of what the company is doing or not doing – it is again evident that it has carried out a variety of CSR initiatives covering the entire spectrum of possibilities: building schools, sponsoring students, supporting community projects, providing jobs.

Organizationally, GSR‟s approach suggests that its efforts at CSR are now firmly located in the firm’s strategic agenda, thus boding well for the corporate sustainability of CSR.

These forward and progressive possibilities notwithstanding, we conclude that the balance of evidence suggests the CSR journey for GSR is perhaps only now truly beginning.

Importantly, we conclude that within the Ghanaian space, the CSR challenge requires greater State sector commitments to State sector responsibilities within mining communities.

1


ON

“Maruti Udyog Limited”

Submitted to


IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF



Faculty GuideMahendra Prajapati

(Assistant Professor)

Submitted by Shah Hardik 108000592036

Sharma Madhvi 108000592061

Solanki Ankit 108000592022

Shrimali Varsha 108000592030

Saiyed Mushira 108000592059

Saksena Chandani 108000592055

MBA SEMESTER IV


Affiliated to Gujarat Technological University AhmedabadMay, 2012

2

Preface

Life is a long journey, wherein each one of us crosses number of milestones. Every stoppage

teaches us a lot. I, being the student of management, learnt a plethora of things and was being

bombarded with lots of learning, and knowledge about different sector in country.

The two-year full time program of management course helped a lot of learning. Such has been

the presentations and projects which enhanced our learning by adding on to our world of

knowledge. And summer training is one of the part to enhance our business skills.

It was a life time experience for which I thank to all the staff members of the Oxford School Of

Management, affiliated to Gujarat Technological University.

3

Acknowledgement

I would like to express my gratitude towards “OXFORD SCHOOL OF MANAGEMENT” for

giving me the opportunity to undergo an enriching learning experience of the beautiful country.

I am also extremely thankful to Mr. JAPAN SHAH (director), my project guide for his support.

And I would like to thank all of the team members that I had an opportunity to work with, it was

truly a privilege. I was able to learn so much from all of you and as able to complete my project

successfully.

I also express my gratitude to my Global Country Report guide, Lec. Mr. Mahendra Prajapati,

faculty, Oxford School of Management, Mehsana. For providing necessary guidance from time

to time essential to the completion of my project.

4

EXECUTIVE SUMMARY

The Title of our report is Maruti Udyog Limited. Maruti Suzuki India Limited (MSIL, formerly

known as Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan.

MUL manufactures leading models in all segments of the car market. Maruti 800 rules the ‘A1′

segment. In the ‘A2′ segment, it has the Zen, WagonR and Alto, whose combined sales rose to

176,132 units in 2003/04, up 46% as compared to 2002/03. In the ‘A3′ segment, it offers the

Esteem and Baleno, while Omni and Versa stake out MUL’s presence in the MUV market. The

Gypsy King marks Maruti Suzuki’s presence in the rough-terrain sector, and up a couple of

notches in the luxury SUV market is the Grand Vitara.

In 1983, Brand Maruti Suzuki was defined as ‘the people’s car’. These values have remained

consistent ever since.

Despite the country's small size, Ghana's autos market has grown rapidly in recent years thanks

to economic growth and a developing middle class.

Car sales increased in 2006 when real GDP growth hit a high of 6.4% and, according to the

African Development Bank, car ownership grew 81% over the next five years. We expect a

similar link between economic and autos growth in 2012, when our Africa team's forecast for

GDP growth of 7.9% should contribute to a 28% rise in vehicle sales, to 10,688 units.

The suggestions are:- Manufacturer should concentrate on promotional measures to increase the

awareness of new technologies fitted in the car, Manufacturer should give more emphasis on

safety aspects, Advertisement of Maruti cars should be increased in the market of Ghana.

5

Index

SR. NO PARTICULARS PAGE NO.

1. PREFACE 2

2. ACKNOWLEDGEMENT 3

3 EXECUTIVE SUMMARY 4

4 INTRODUCTION 6

5 ORGANIZATIONAL STRUCTURE 10

6 ROLE IN INDIAN ECONOMY 13

7 IMPORT EXPORT POLICY 14

8 AUTOMOBILE SECTOR IN GHANA 16

9 POTENTIAL OF MARUT I IN GHANA 18

10 CONCLUSION AND SUGGESTION 25

11 BIBIOLOGRAPHY 26

6

INTRODUCTION OF MARUTI UDYOG LIMITED

Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary

of Suzuki Motor Corporation, Japan. MSIL has been the leader of the Indian car market for over

two and a half decades. The company has two manufacturing facilities located at Gurgaon and

Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce

over a 1.2 million (1,200,000) vehicles annually.

The company plans to expand its manufacturing capacity to 1.75 million by 2013.

The company offers a wide range of cars across different segments. It offers 15 brands and over

150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto, Alto-K10,

A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4, Swift

DZire and Kizashi. In an environment friendly initiative, in August 2010 Maruti Suzuki

introduced factory fitted CNG option on 5 models across vehicle segments. These include Eeco,

Alto, Estilo, Wagon R and Sx4.

In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell One

Million cars in a year.

Maruti Suzuki has employee strength over 8,500 (as at end March 2011)

In 2010-11, the company sold over 1.27 Mnvehicles including 1,38,266units of exports. With

this, at the end of March 2011, Maruti Suzuki had a market share of 44.9 per cent of the Indian

passenger car market.

7

Vision:

The leader in the india automobile industry, Creating customers Delight and shareholder ‘s

wealth; A pride of India.

Core Values:

Customers onsession.

Fast, Flaxbile & Faster Mover.

Innovation & Creativity.

Networking & Partnership.

Openness & Learing.

8

History

MUL was a joint venture created in February 1981 between Japan’s Suzuki Motor Company and

the Indian Government when the latter decided to produce small, economical cars for the masses.

The intention from the beginning was to produce a ‘people’s car’. To get the project off the

ground MUL took over the assets of the erstwhile Maruti Ltd., which was set up in 1971 and

closed in 1978.

On December 14, 1983, MUL launched the first Maruti vehicle – the Maruti 800. The first model

was the SS80, a 796cc hatchback car priced at Rs. 47,500. Subsequently, in spite of price hikes,

the car remained within the reach of the Indian middle class and became a runaway success.

Available in vibrant colours when India’s passenger car population comprised mainly

Ambassadors and Fiats in black and white, M800 gave Indians the first taste of global quality

and reliability.

In the years that followed, MUL consolidated its position with a line of Indian classics, such as

the eight-seat Omni, the rough-terrain Gypsy, and, in October 1990, a 3-box Maruti 1000. MUL

took the lead in the green drive by launching its CNG-run Omni and Maruti 800 in 1999.

MUL redefined the premium compact segment with the launch of the Zen in October 1993. It

was the company’s first ‘world car,’ selling across multiple markets. A year later, the Zen had

won several awards, including ‘No. 1 car in Europe’ (Auto Week, 1994), ‘No.1 import in

Europe’ (1997) and ‘most fuel-efficient car’ (ADAC). Since its launch, the Zen has sold over

624,979 units. This ‘true Indian globetrotter’ was followed by 1300cc Esteem, which was an

exact replica of the Maruti 1000 – since discontinued – with more power and a new exterior.

In the late1980s, Suzuki increased its equity stake in MUL from 26% to 40% and further to 50%

in 1992, converting Maruti into a non-government company. In May 2002, Suzuki took

management control of Maruti. Earlier, a series of time-consuming negotiations between the

government and Suzuki led to delays in introducing new models giving competition time to

9

nibble at MUL’s commanding market share. As Maruti Suzuki’s share declined from 65% in

1999 to 52% in 2000, the company realised that it had to make up for lost time.

In 1999, MUL launched Baleno and WagonR. Baleno targeted the premium mid-segment while

WagonR was positioned as a multi-activity vehicle. In 2000, MUL announced that it would

launch a new model every six to twelve months. Accordingly, in 2000, Maruti Suzuki introduced

Alto – a premium small car targeting the export market – and in October 2001, Versa, a

multipurpose vehicle.

As competition intensified, MUL launched various initiatives to improve customer service. In

1999, it established a chain of model workshops and soon after, set up customer call centres in

the metros. Traffic on Maruti Suzuki’s interactive website, which provided information and

practical help to customers, increased three-fold by March 2002.

In April 2003, MUL rolled out its latest offering, the Grand Vitara XL-7, a luxury SUV imported

from Suzuki Motor Corporation. The Grand Vitara was a concept that was radically different

from the models that comprised the bulk of MUL’s sales. Since its launch, Suzuki Grand Vitara

has sold over 157 units.

10

ORGANIZATION STRUCTURE

11

Product

MUL manufactures leading models in all segments of the car market. Maruti 800 rules the ‘A1′

segment. In the ‘A2′ segment, it has the Zen, WagonR and Alto, whose combined sales rose to

176,132 units in 2003/04, up 46% as compared to 2002/03. In the ‘A3′ segment, it offers the

Esteem and Baleno, while Omni and Versa stake out MUL’s presence in the MUV market. The

Gypsy King marks Maruti Suzuki’s presence in the rough-terrain sector, and up a couple of

notches in the luxury SUV market is the Grand Vitara.

MUL PRODUCT LINE

CARS

Maruti 800

Maruti 800 STD BS III

Maruti 800 AC BS III

Maruti 800 Duo

Omni

5 seater Maruti Omni

8 seater Maruti Omni

LPG Maruti Omni

Maruti Alto

Alto

Alto Lx

Alto Lxi

Maruti Zen Estilo

Maruti Zen Estilo Lx

Maruti Zen Estilo Lxi

Maruti Zen Estilo Vxi

Wagon R

WagonR Lx

WagonR Lxi

WagonR Vxi

WagonR Ax

WagonR Duo

Versa

5 seater

8 seater ( DX & DX2)

Maruti Esteem

Maruti Esteem Lx

Maruti Esteem Lxi

Baleno

Baleno Sedan VXi

Swift

Swift LXi

Swift VXi

12

Maruti Esteem Vxi Baleno Sedan LXi Swift ZXi

Swift Diesel’Ldi’

Swift Diesel ‘Vdi’

Maruti Gypsy

Hard top

Soft top

Maruti SX4

Maruti SX4 Vxi

Maruti SX4 Zxi

Maruti Zen Classic

Grand Vitara Swift DZire

COMMERCIAL VEHICLES

AMBULANCE

Omni Ambulance

AWAITED MODELS

Maruti Escudo Maruti Kazshi Maruti Suzuki Splash

Maruti A-Star

Brand Values

In 1983, Brand Maruti Suzuki was defined as ‘the people’s car’. These values have remained

consistent ever since.

Over the years, MUL has set the stage for the successful launch of Suzuki’s international range

in the Indian market, all backed by the inherent value proposition of high quality, fuel efficiency

and, compared with competition, low price. This formula has been largely responsible for a new

generation of Indian car users swearing by the Maruti Suzuki brand name.

13

ROLE OF MARUTI UDYOG LTD. IN INDIAN

ECONOMY

Maruti Suzuki strongly believes in sustained business growth and works towards the well being

of its direct stakeholders. It makes far-reaching investment decisions taking into consideration

unmet customer needs, market growth potential, upcoming regulations and long term

sustainability of the Company and its various stakeholders. These investments generate new

opportunities for growth in the upstream and downstream value chain, thus creating employment

and contributing to the local economy.

Growth Drivers of the Economy

A high economic growth (over 7.6% GDP growth running since last five years)

Favourable taxation & duty structure (along with excise duty seeing a downward trend,

import duties on components has also been reduced recently)

More number of and newer models available

Developing road infrastructure

Widening reach of finance companies

Underlying changes happening in the demographic profile of the country as represented

by a rising middle class; favorably skewed age profile and the huge two-wheeler

population presents a good opportunity.

14

IMPROT – EXPORT POLICIES OF INDIA

Period of the Policy :

This policy is valid for five years instead of t}:1ree years asin the case of earlier policies.

It is effective from 1st April 1997to.31st March 2002.

Liberalization

A very important feature of the policy is liberalisation. .

I t h a s s u b s t a n t i a l l y e l i m i n a t e d l i c e n s i n g , q u a n t i t a t i v e estrictions

and other regulatory and discretionary controls. Allgoods, except those coming under

negative list, may be freelyimported or exported.

Imports Liberalization Of 542 items from the restricted list 150 items have been

transferred to Special Import Licence (SIL) list and remaining39 2 i t ems h av e b e en

t r an s f e r r ed t o O p en G en er a l Li ce n se (OGL) List.

Export Promotion Capital Goods (EPCG) Scheme8

T h e d u t y o n im por t ed ca p i t a l go od s u nd e r EPC G s chem ehas been

reduced from 15% to 10%.

Under the zero duty EPCG Scheme, the threshold limit hasbeen reduced from

Rs. 20 crore to Rs. 5 crore for agricultural and allied! Sectors

Advance Licence Scheme1

U n d e r A d v a n c e L i c e n s e S c h e m e , t h e p e r i o d f o r e x p o r t obligation

has been extended from 12 months to 18 months.

A further extension for six months can be given on paymentof 1 % of the value of

unfulfilled exports.

15

Comparative study of models of maruti and its

competitors in Diff. Segments

16

GHANA AUTO MOBILE SECTOR

Despite the country's small size, Ghana's autos market has grown rapidly in recent years thanks

to economic growth and a developing middle class.

BMI believes the Ghanaian economy will enjoy stellar economic growth over the medium term,

propelled by the nascent oil and gas sector. Ghana's abundant natural resources, fast growth

trajectory and relative political stability augur well for strong foreign investment inflows.

Car sales increased in 2006 when real GDP growth hit a high of 6.4% and, according to the

African Development Bank, car ownership grew 81% over the next five years. We expect a

similar link between economic and autos growth in 2012, when our Africa team's forecast for

GDP growth of 7.9% should contribute to a 28% rise in vehicle sales, to 10,688 units.

Although our estimates have been revised down, good annual growth in GDP per capita over the

next five years (from US$1,562 in 2011 to US$3,595 by the end of our forecast period in 2016),

should benefit vehicle sales in the country. We think these levels of wealth will be enough to

overcome the lingering habit of choosing second-hand imports of high-end brands over new

alternatives from lesser-known brands. However, there are risks of macroeconomic instability

stemming from burgeoning oil revenues and the December 2012 election.

A boost to the car industry came in Q411 with the Accra International Motor Fair on October 21-

22 2011. Carmakers used the event to display new models and offer special discounts for the

duration of the show only. New launches came in all price brackets, with model debuts planned

by Skoda Auto, Honda Motor, Ford Motor and BMW.

However, the obstacle to companies selling new cars and to domestic production is still the

17

country's large used car market. Regardless of the age of the car, consumers in Ghana, and

indeed many African countries, often prefer a second-hand car from a high-end European brand

to a new car from a lesserknown brand and this could be a particular threat at the entry-level end

of the market.

As such, carmakers in Ghana are investing in after-sales services such as spare parts and

servicing to increase revenue and market share. Both Japanese firm Toyota Motor and Turkish

commercial vehicle producer BMC have announced new after-sales services as a way of adding

value to their products. BMI believes that the influx of Chinese brands, with their ability to

compete on price, could prompt a trend for such services from the more established brands.

18

Maruti Suzuki wants to be future-ready (Business

opportunities in future)

Africa isnt really a big market, but any market is a good market..

Maruti Suzuki Motors Import and Export Company Limited at the weekend said Ghana had been

selected as a hub for maruti automobile industry in the West African market.

"The favorable infrastructure development, efficient financial sector regulations, stable political

regime, aggressive development strategy and cordial relationship between the two nations, dating

back from independence were among the yardstick used,Mr D.S.Brar Motors Manager in-charge

of Middle East and Africa Division told the Ghana News Agency in Accra.

Our vehicles are economical, low fuel consumption, special features for tough African road and

very durable Mr. Yong stated. He said the increasing demand for Chinese vehicles and other

goods within the West African sub-region of about 250 million people, made it imperative for

Ghana to play a leading role and study the Chinese business acumen and tradition to consolidate

trade relations.

19

CARS IN GHANA

Ford Focus

Price: 12200 Mileage: 144000km Year: 2003

Ford expedition

Price: 27500 Mileage: 85600 km Year: 2006

Toyota

Price: 20400 Mileage: 145500 Year: 2004

Honda Civic


Porsche Cayenne


20

Acura MDX 2008 Home Used

Price: $35,000 Mileage: 70k Year: 2008

Toyota Camry '09 Hybrid

Price: GHC 40,500 Mileage: 67, 928 Year: 2009

Toyota Camry

Price: $24,000 Year: 2007

Volvo S60

Price: $16,000 Year: 2002

21

BMW 745

Price: $38,000 Year: 2005

Mercedes Benz ML320 CDI

Price: $45,000 Year: 2007

BMW X6

Price: $98,000 Year: 2009

BMW 745

Price: $38,000 Year: 2005

22

Ford Bus

Price: $12,000 Year: 2002

Ford F 150

Price: $20,000

Nissan Urvan Bus

Price: $35,000 Year: 2009

Nissan Altima

Price: $20,000 Year: 2004

23

Nissan Murano

Price: $19,000 Year: 2006

The Minister of State at the Ministry of Transport, Godfrey Bayon Tangu has acknowledged the

growth of the automobile industry over the past few years which he described as remarkable.

He observed that the number of automobile companies has increased and so has different models

of vehicles in the country.

The minister therefore urged automobile companies to stress on safety and efficient fuel

consumption in modern vehicles.

According to him, even though there has been a remarkable improvement in technology and

innovations in the new generation of vehicles, those features are necessary.

The Minister said this at the launch of the new Honda Accord, 2008 model in Accra last Friday

evening.

As part of efforts to improve urban transportation, Mr. Tangu said government intends to

introduce on a pilot basis, a rapid bus transit system from the Mallam Junction, a suburb of

Accra, to the Central Business District of Accra in June 2009.

According to him, government believes that urban mass transportation through the use of high

occupancy buses and rail will improve mobility in the cities.

Despite the decline in the rate of fatalities since 2004, the Minister urged all and sundry to

cooperate in order to ensure the achievement of a single digit fatality rate by 2015.

24

He emphasized that good roads are important for enhanced socio-economic development of any

country and the automobile industry, thus government will do more in the area of urban road

transportation.

The new Honda Accord, 2008 model has been designed to meet the satisfaction and luxury of

users.

Already rated as the best car in the U.S.A, it has features dealing with safety, durability,

reliability and speed.

25

SUGGESTIONS:-

Lack of having products in mid size car segment could result in shifting of loyal customers who

has a desire to upgrade their cars.

Low interior quality in side the cars.

China may give a good competition as they are also planning to enter into car segment so maruti

has to develop there models & to introduce the new futures in car in Ghana.

In Ghana most of people are of medium class so maruti can to introduce small cars segments.

Manufacturer should concentrate on promotional measures to increase the awareness of new

technologies fitted in the car.

Manufacturer should give more emphasis on safety aspects.

Advertisement of Maruti cars should be increased in the market of Ghana.

CONCLUSION

Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary

of Suzuki Motor Corporation, Japan. The company plans to expand its manufacturing capacity to

1.75 million by 2013. In 1983, Brand Maruti Suzuki was defined as ‘the people’s car’. These

values have remained consistent ever since.

Maruti Suzuki strongly believes in sustained business growth and works towards the well being

of its direct stakeholders. It makes far-reaching investment decisions taking into consideration

unmet customer needs, market growth potential, upcoming regulations and long term

sustainability of the Company and its various stakeholders.

26

BIBLIOGRAPHY:-

www.marutisuzuki.com

wikipedia.org

ghanacartrader.com

1OXFORD SCHOOL OF BUSINESS MANAGEMENT.

A

GLOBAL COUNTRY PROJECT REPORT

ON

COUNTRY AWARENESS & NIRMA LIMITED

Submitted toGujarat Technological University




Neha Gupta(Assistant Professor)

Submitted By :-Mahmad Sakib 108000592013

Arif Saiyad 108000592047

Marufa Saiyad 108000592085

Nilam Rathod 108000592067

Mukesh Rawat 108000592031

Arti Purohit 108000592038

Oxford school of Management

MBA PROGRAMMEAffiliated to Gujarat Technological University Ahmedabad


Table of Contents

Sr.no Particular Page

No.

Acknowledgement 1

1 General Information Of Ghana 2

2 Introduction Of Nirma Ltd 3

3 Structure Of Nirma Ltd 6

4 Facts 7

5 Swot analysis And barriers 8

6 General Information On FMCG Sector 15

7 Top FMCG Companies In Ghana 16

8 FMCG Scope In Ghana 17

9 Highlights Of Ghana’s Performance 18

10 Growth Performance 22

12 Findings 23

13 Suggestion 24

14 Conclusion 25

15 Bibliography 26


ACKNOWLEDGEMENT

“SUCCESS CAN NEVER BE OBTAINED WITHOUT VALUABLE GUIDANCE”

“GURU BINA GYAN KAHA SE PAU”

I feel great pleasure in submitting this report as a part of our management studies.

I forward my gratitude to respected principal Mr. Japan Shah who has made the dream MBA

come true. I thank Prof.Neha Gupta for her guidance during the preparation of this project.

Through this acknowledgement, I express my sincere gratitude towards all those

who have helped me directly or indirectly in the preparation of this project report, which has

been a learning experience.


General Information of Ghana

GHANA

• GHANA IS A SUB-SAHARAN AFRICAN COUNTRY

• POPULATION: 23.800M (2009) 24 MILLION (2010)

• POPULATION GROWTH ANNUAL: 2.4

• GDP: 26.2 BILLION USD

• GDP PER CAPITA: 1,098 USD

• GDP GROWTH ANNUAL: 4.7 USD

• LIFE EXPENTANCY TOTAL YEAR: 63.4 AT BIRTH

• INFANT MORTALITY RATE: ( PER 1,000 BIRTHS ) 51.3

• LITERACY RATE, YOUTH: (FEMALE AGES 15 – 24 78.9


• PREVELENCE OF HIV/AIDS AGES 15 – 49 5.4 (2007)

SOURCE: WORLD DEVELOPMENT INDICATORS (WORLD BANK WEBSITE)

• TOTAL LAND AREA: ( 92456 SQ MI) (239460 SQ KM

• INDEPENDENCE: MARCH 1957

Introduction of Nirma ltd :-

Nirma is one of the well-known brands in India. The company was started in 1969 by Dr.

Karsanbhai Patel and now It has an employee base of about 14000 with an annual turnover of Rs

2500 crores. Nirma is named after Dr. Karsanbhai Patel's daughter called Nirupma (Nima). It

manufactures detergents and toiletries. The Group operates in two segments:

� Soaps and Surfuctants

� Other Businesses

The Soaps and Surfuctants comprise detergents, toilet soaps and its ingredients. The Other

businesses comprise single vacuum salt, iodized salt, super phosphate, liquid blue, toothpaste,

and incense sticks.

The products are launched under the brand names of Nima and Nirma.

Nirma is one of biggest players of detergent market in India with a share of 38%, and the

second

largest player in toilet soap market with a share of 20%. Nirma entered in toilet soap market in

1990. It is a customer-centric company that believes in constantly improving the quality of its

product.


Logo :

Parent Company : Nirma Ltd

Category : Consumer Products

Sector :FMCG

Tagline/ Slogan : Better Products, Better Value, Better Living

USP : Excellent distribution network across India tapping over 300 million consumers

STP

Segment Products and services for daily needs

Target Group Every Indian household especially the middle class

Positioning Value for money products for a better living

Product Portfolio Brands

1. Nirma Washing Powder 2. Nirma Bartan Bar

3. Nima Soap 4. Nirma Beauty Soap


Products :

Consumer Products

� Detergents

� Edible Salt

� Soaps

� Scouring Products

Industrial Products

� LAB (Linear Alkyl Benzene)

� Soda Ash

� Pure salt

� AOS (Alfa Olefin Sulfonate)

� Sulfuric Acid

� SSP (Single Super Phosphate)

� Sodium Silicate

� Glycerin

� Vacuum Evaporated Iodized Salt


STRUCTURE OF NIRMA LIMITED

BOARD OF DIRECTORS

Dr. K. K. Patel, Chairman

Shri Rakesh K. Patel, Vice Chairman

Shri Shrenikbhai K. Lalbhai

Shri Pankaj R. Patel

Shri Rajendra D. Shah

Shri A. P. Sarwan

Shri Chinubhai R. Shah

Shri Kaushikbhai N. Patel

Shri Kalpesh A. Patel, Executive Director

Shri Hiren K. Patel, Managing Director

AUDITORS

Hemanshu Shah & Co.

Chartered Accountants

Ahmedabad

COMPANY SECRETARY

Shri Paresh Sheth

REGISTERED OFFICE

Nirma House

Ashram Road

Ahmedabad – 380 009

SUBSIDIARY COMPANY

Nirma Consumer Care Limited

Nirma House

Ashram Road

Ahmedabad – 380 009.


FACTS

DO you know?

Nirma is named after nirupama (NIMA) daughter of Dr. KARSANBHAI PATEL

Dudh si safedi nirma se aye rangin kapda bhi khil; khil jaye jingle used since last 35 years.

Same radio spot has been used consistently since last 28 years.

Nirma is one of the largest selling single detergent brands in the world.


SWOT Analysis

Strength

1. Nirma has distribution at over 1 million retailers and approx 300 million

consumers

2. Over 14000 employees work with Nirma

3. It has always practiced ‘value-for-money’ strategy targeting the huge Indian

middle class market

4. Nirma purchased Searles Valley Minerals Inc., thus making it among the top

Soda Ash manufacturer globally

5. Nirma has manufacturing facilities at 6 places in India

6. It has undertaken backward integration into manufacture of Industrial Products

like Soda Ash, Fatty Acid, Glycerine, Sulphuric Acid etc

Weakness

1. Market share is limited due to presence of other strong FMCG brands

2. Nirma has limited international presence as compared to other leading FMCG

companies

Opportunity

1. Tap rural markets and increase penetration in urban areas

2.Mergers and acquisitions to strengthen the brand

3.Increasing purchasing power of people thereby increasing demand

Threats

1. Intense and increasing competition amongst other FMCG companies

2.FDI in retail thereby allowing international brands

3. Competition from unbranded and local products


TRADE SUMMARY

The U.S. goods trade surplus with Ghana was $386 million in 2008, an increase of $169 million

from 218

million in 2007. U.S. goods exports in 2008 were $609 million, up 46.2 percent from the

previous year.

Corresponding U.S. imports from Ghana were $222 million, up 11.8 percent. Ghana is currently

the 89th

largest export market for U.S. goods.

The stock of U.S. foreign direct investment (FDI) in Ghana was $306 million in 2006 (latest data

available).

IMPORT POLICIES

Tariffs

Ghana is a Member of the WTO and the Economic Community of West African States

(ECOWAS). According to the WTO, Ghana has bound only 1 percent of tariffs on industrial

goods. Along with other ECOWAS countries, Ghana adopted a common external tariff (CET) in

2008 that requires members to simplify and harmonize ad valorem tariff rates into five bands:

zero duty on social goods (e.g., medicine, publications); 5 percent on imported raw materials; 10

percent on intermediate goods; 20 percent on finished goods; and 35 percent on goods in certain

sectors. The fifth band – proposed by Nigeria – is still under negotiation among member

countries. Ghana currently maintains 190 exceptions to the CET, and the highest tariff charged is

20 percent. The tariff rates for the items covered under these exceptions will require some

changes to align with the CET.

Nontariff Measures


Importers are confronted by a variety of fees and charges in addition to tariffs. Ghana levies a

12.5 percent value added tax (VAT) plus a 2.5 percent National Health Insurance levy on the

duty-inclusive value of all imports and locally produced goods, with a few selected exemptions.

In addition, Ghana imposes a 0.5 percent ECOWAS surcharge on all goods originating from

non-ECOWAS countries and charges 0.4 percent on the free on board value of goods (including

VAT) for the use of the automated clearing system, the Ghana Community Network (GCN).

Further, under the Export Development and Investment Fund Act,

EXPORT SUBSIDIES

The government uses preferential credits and tax incentives to promote exports. The Export

Development Investment Fund administers financing on preferential terms using an 18 percent

interest rate, which is below market rates. Agricultural export subsidies were eliminated in the

mid-1980s. The Export Processing Zone (EPZ) Law, enacted in 1995, leaves corporate profits

untaxed for the first 10 years of business operation in an EPZ, after which the rate climbs to 8

percent (the same rate for non-EPZ companies). Seventy percent of production in the EPZ zones

must be exported. The current corporate tax rate for nonexporting companies is 25 percent.

STANDARDS, TESTING, LABELING, AND CERTIFICATION

Ghana has issued its own standards for most products under the auspices of its testing authority,

the Ghana Standards Board (GSB). The GSB has promulgated more than 343 Ghanaian

standards and adopted more than 1,362 international standards for certification purposes. The

Food and Drugs Board is responsible for enforcing standards for food, drugs, cosmetics, and

health items.


Under Ghana’s Conformity Assessment Program (CAP), some imports are classified as "high

risk goods" Ghana passed provisional biosafety legislation in March 2008 to govern agricultural

biotechnology pending the passage of a larger biosafety regime. The legislation established

regulations governing biotechnology products in three broad areas: field trials and contained

work on biotechnology products; the release of these products into the environment; and the

importation, exportation, and transit of agricultural biotechnology products. The law allows the

National Biosafety Committee, through consultation with appropriate authorities, to issue

guidelines on labeling. The Cabinet is currently reviewing draft biosafety legislation that will

establish the National Biosafety Authority, which will be the administrative body responsible for

all issues related to biotechnology in Ghana.

Sanitary and Phytosanitary Measures

The GSB requires that all food products carry expiration or shelf life dates and requires that the

expiration date at the time it reaches Ghana should be at least two-thirds the shelf life. Goods that

do not have two thirds of their shelf life remaining are seized at the port of entry and destroyed.

Questions have been raised regarding the consistency of this requirement with the Codex

Alimentarius Commission General Standard for Labeling of Pre-packaged Foods.

GOVERNMENT PROCUREMENT

In 2003, Parliament enacted a public procurement law that codified guidelines to enhance

transparency and efficiency in the procurement process and assigned responsibility for

administration of procurement to a central body. In 2004, the government inaugurated the Public

Procurement Board. Individual government entities have formed tender committees and tender

review boards to conduct their own procurement. Large public procurements are made by open

tender and foreign firms are allowed to

participate. A draft guideline being applied to current tenders gives a margin of preference of 7.5

percent to 20 percent to domestic suppliers of goods and services in international competitive

bidding. Notwithstanding the procurement law, companies cannot expect complete transparency

in locally funded contracts. Allegations of corruption in government procurement are fairly

common. Ghana is not a signatory to the WTO Agreement on Government Procurement.


SERVICES BARRIERS

Ghana’s investment code precludes foreign investors from participating in four economic

sectors: petty trading, the operation of taxi and car rental services with fleets of fewer than 10

vehicles, lotteries (excluding soccer pools), and the operation of beauty salons and barber shops.

Ghana allows foreign telecommunications firms to provide basic services, but requires that these

services be provided through joint ventures with Ghanaian nationals. The National

Communications Authority has yet to become effective in resolving complaints alleging that

Ghana Telecom, the state-owned national telecommunications operator, is engaging in

anticompetitive practices. In the insurance sector, Ghana limits foreign ownership to 60 percent,

except for auxiliary insurance services, where 100 percent foreign ownership is permitted.

Although foreign investors may participate in Ghana’s market for banking and other non-

insurance financial services, discriminatory treatment applies to companies owned by non-

resident investors. Specifically, under the central bank’s new minimum capital requirement for

banks, existing banks with Ghanaian majority share ownership (local banks) have until 2012 to

fully increase their capital base to GHC 60 million (about $54 million) from GHC 7 million. By

contrast, banks with majority foreign ownership need to meet the target by 2009.

INVESTMENT BARRIERS

Foreign investment projects must be registered with the Ghana Investment Promotion Center

(GIPC), aprocess that is supposed to take no more than five business days but that often takes

longer. In an attempt to improve its service, in 2007 the GIPC introduced an online registration

system. The following minimum capital contribution requirements apply for non-Ghanaians who

wish to invest in Ghana: $10,000 for joint ventures with a Ghanaian entity; $50,000 for

investment in enterprises wholly owned by a non-Ghanaian; and $300,000 for investment in

trading companies (firms that buy/sell finished goods) either wholly or partly owned by non-

Ghanaians. The GIPC has proposed increasing the minimum capital contribution for investment

in trading companies to $1 million. Trading companies must also employ at least 10 Ghanaians.


ELECTRONIC COMMERCE

Barriers to electronic commerce are mainly related to inadequate telecommunications and

financial infrastructure. A proposed legal framework for electronic transactions is before

Parliament. The payment system in Ghana is largely cash based. In June 2008, the government

established a smart card payment

system that links banks and financial institutions throughout Ghana and allows the use of point

of sale and other electronic payments tools, but enrollment has been low.

OTHER BARRIERS

There are frequent problems related to Ghana’s complex land tenure system. For example,

establishing clear title on real estate can be difficult. Non-Ghanaians can have access to land

only on a leasehold basis. Frequent backlogs of cargo at the port hurt the business climate. The

Customs Service phased in an automated customs declaration system that was established in the

last quarter of 2002 to facilitate customs clearance. Although the new system has reduced the

number of days for clearing goods through the ports, the desired impact has yet to be realized

because complementary services from government agencies, banks, destination inspection

companies, and security services have not been established. The residual effects of a highly

regulated economy and lack of transparency in certain government operations create an added

element of risk for potential investors. Entrenched local interests sometimes have the ability to

derail or delay new entrants, and securing government approvals may depend upon an

applicant’s local contacts. The political leanings of the Ghanaian partners of foreign investors are

often subject to government scrutiny, and ensuring compliance with the U.S. Foreign Corrupt

Practices Act remains a challenge.

ELECTRONIC COMMERCE

Barriers to electronic commerce are mainly related to inadequate telecommunications and

financial infrastructure. A proposed legal framework for electronic transactions is before

Parliament. The payment system in Ghana is largely cash based. In June 2008, the government

established a smart card payment system that links banks and financial institutions throughout


Ghana and allows the use of point of sale and other electronic payments tools, but enrollment has

been low.

OTHER BARRIERS

There are frequent problems related to Ghana’s complex land tenure system. For example,

establishing clear title on real estate can be difficult. Non-Ghanaians can have access to land only

on a leasehold basis. Frequent backlogs of cargo at the port hurt the business climate. The

Customs Service phased in an automated customs declaration system that was established in the

last quarter of 2002 to facilitate customs clearance. Although the new system has reduced the

number of days for clearing goods through the ports, the desired impact has yet to be realized

because complementary services from government agencies, banks, destination inspection

companies, and security services have not been established. The residual effects of a highly

regulated economy and lack of transparency in certain government operations create an added

element of risk for potential investors. Entrenched local interests sometimes have the ability to

derail or delay new entrants, and securing government approvals may depend upon an

applicant’s local contacts. The political leanings of the Ghanaian partners of foreign investors are

often subject to governments.

General Information on FMCG Sector:-

The FMCG sector is showing strong volume growth across product categories with improving

pricing power of leading payers. Many players have regained their pricing power and have

implementedsuccessful price hikes during the quarter. Most companies have indicated a

significant revival in ruraldemand (rural market growing faster that the urban market).

The recent correction in some of the keyraw materials like LAB, crude oil is expected to provide

some respite to margins. However,expectations of firm agri commodity prices are likely to put

pressure on margins, especially for thefood companies.The latest statistics on inflation showed

that the same has cooled off to a 6-month low and come downto single digits, primarily thanks to

lower commodity prices.


Since FMCG companies play a major rolein driving consumption growth, which is necessary for

a slowing economy, we analyze what kind of impact the inflation number can have on the

FMCG sector.THE flurry of activity in the fast moving consumer goods (FMCG) sector appears

to augur well.

Top FMCG Companies in Ghana:-

Unique trust Financial Services Limited

MNK Ghana Ltd (Ind/Dom Paint Supplier/ Manufacturer)

Sandblasting & Coatings (Gh) Ltd

Spearhead Networks (www.spearheadnet.net)

Dkay Animax Limited

Inchcape Shipping Services (Ghana) Ltd

Guinness Ghana Breweries

Voxtel Technologies Ghana Limited (www.voxteltech.com)

Nestle Ghana Limited

Aimers Africa Limited (www.aimersafrica.com)

Ghana Community Network Services Limited

Toyota Ghana Company Limited

FMCG SCOPE IN GHANA

At a recent seminar on FMCG in ghana , market and industry experts informed local businesses

to carefully consider all aspects of doing business in Ghana before penetrating this market.

With the emergence of a growing middle class in Ghana coupled with increased purchasing

power, there is an increasing demand for more fresh produce, beverages, toiletries and other

consumable products. South Africa is among the top ten suppliers to most of the countries in

Western Africa and is competitive in some fields, notably the supply of petroleum products and

food items.

Oliver Heins, an analyst at Planet Retail a UK based retail research company highlighted that

more modern retailers are establishing in Africa as a result of increased demand for FMCG

products, the development of urban centres and improved supply and store networks.


Duncan Bonnett, a consultant from Whitehouse Associates pointed out that even though the

Western Cape is a key supplier of fresh produce to Western Africa, there is still far greater scope

for exported FMCG products from the Western Cape. The Western Cape export opportunities lie

within further supplying frozen meats and dairy products as well as other consumer goods such

as kitchen items, plastics and clothing. He further noted that Western Cape products still

competes on the shelf with European products and dumping of goods from the EU still remains

an issue.

In ghana alone, the total number of food and beverage imports amounts to over US $837 million,

of which the Western Cape exports a total of US $ 272 million. ghana’s toiletries, soaps,

deodorants and cleaning agents sector is valued at US$58 million, plastic goods at US$57

million and household iron and steel articles at US$15-20 million a year. These are areas that

Western Cape exporters should tap into as they have the capabilities and resources to cater to this

need said Bonnett. This scenario also applies to countries such as Cameroon, Gabon, Ghana,

Kenya, Mozambique, Namibia, Nigeria, Senegal and Tanzania. Bonnett further cautioned

businesses to be aware of exporting products which are banned by the Nigerian government

(which includes clothing and textile products, some agricultural goods and other consumer

products) in order to stimulate and encourage local production.

Advisors from Ernst and Young shared some lessons from other South African global giants that

need to be considered before companies decide to move into the international market. The cost

implications from both a financial and human resource perspective is high and therefore

companies need to fully understand their companies internally in terms of competencies and

abilities and their core business purpose. They further stressed the importance of knowing

exactly what the reasons are for wanting to expand your business internationally. When choosing

a market businesses need to take into account factors such as distance from your home market,

cultural due diligence and most importantly whether in fact the move would allow your business

to acquire more capabilities.

Speakers from both Parmalat and Steers each shared their practical experience in doing business

in West Africa and the potential challenges that may exist such as relatively high transportation

costs and infrastructural challenges namely port congestion and delays. In order to successfully

market your products Kevin Waite, Managing Director of Steers emphasised the critical

importance of branding as the core of any market and business strategy.


The Western Cape’s geographic proximity to the Western African market, including other

factors such as its world-class infrastructure and skilled workers makes the province well

equipped to be a primary supplier of goods and services to this market.

The seminar was hosted by Wesgro as part of its Western African Trade Corridor Programme.

The latter seeks to promote bilateral trade and investment with high growth countries along the

Western African coastline.

HIGHLIGHTS OF GHANA’S PERFORMANCE

Economic Growth

Ghana, a low-income country, has been one of Sub-Saharan Africa’s better growth performers,

with real GDP increase averaging 6.2 percent per annum since 2004. High levels of gross fixed

investment (33 percent of GDP) underpin growth. But expansionary policies have created

imbalances that threaten future performance. Of course, discovery of oil could add materially to

Ghana’s growth rate from 2011.

Poverty

Ghana has achieved real progress in reducing poverty, already reaching the Millennium

Development Goal of halving extreme poverty by 2015. But income inequality is rising, regional

poverty differentials are significant, and accelerating inflation will especially hurt the poorest

citizens.

Economic Structure

Agriculture accounts for more than half of all jobs and over one-third of output. Labor

productivity in agriculture is low relative to industry and services. A structural transformation of

the economy is in order to shift labor and expand the higher productivity industrial and services

sectors, but there is little evidence of movement.


Demography and Environment

Slowing population growth (now 2 percent annually) has meant a declining youth dependency

ratio. These trends will ease resource demands and permit greater investment in education, for

example, to raise Ghana’s relatively low adult literacy rate (65 percent). Urbanization is fairly

high (49 percent). Environmental problems include deforestation and poor air quality. Oil will

create new environmental issues.

Gender

In gender equity terms Ghana fares relatively well. Differential rates of primary school

enrollment are narrowing and are better than regional and low-income country medians. Labor

force participation rates are virtually the same for men and women, Differential rates of life

expectancy, however—normally significantly higher for women—are lower than would be

expected.

Fiscal and Monetary Policy

A severe and ballooning fiscal deficit is at 14.5 percent of GDP (including grants). Largely

because of fiscal expansion, annual inflation has risen to a corrosive 16.5 percent. Such trends

threaten Ghana’s macroeconomic progress and must be urgently addressed, beginning with

immediate fiscal adjustment. Future oil income (estimated $20 billion in total from 2012 to

2030) would alter government finances.

Business Environment

Based on the Doing Business Index, Ghana has made real improvements in virtually all rankings

in the past few years and now scores at 87th out of 181 countries. The cost of starting a business,

for example, has fallen by half in 5 years. Overall in Doing Business terms, Ghana places better

than all comparators save South Africa.


Financial Sector

Ghana is a “Frontier Market” for the IMF, and indeed has shown signs of financial deepening

and development: a rising ratio of broad money to GDP (46.8 percent), increasing domestic

credit to the private sector (34.8 percent of GDP), and a growing stock market capitalization

(21.1 percent of GDP). But very high interest rate spreads and growing non-performing loan

rates suggest serious banking sector inefficiencies.

External Sector

With a ratio of trade/GDP of 121 percent, Ghana is a relatively open economy. Much in the

external sector has been positive: export growth, rising terms of trade (due to high gold and

cocoa prices), new flows of foreign capital (due to capital account liberalization) and declining

external debt (through debt relief). But an alarmingly high current account deficit (-19.3 percent

of GDP), dwindling international reserves and real effective exchange rate appreciation complete

the picture. These imbalances must be addressed. Oil production would have a major impact on

current account.

Economic Infrastructure

With the World Economic Forum’s index of infrastructure quality as a benchmark, Ghana’s

score (3.4 on a 0-7 scale) places it over comparators (except South Africa), but far short of

international standards. It fares relatively well in telecoms (phone and internet), air transport,

ports, roads and electric power. It stacks up relatively badly in rail transport. Also, poor access

roads (rural and farm-to-market) hamper business.

Science and Technology

Science and technology is a comparative disadvantage for Ghana. Roughly on par with

comparators for issues like availability of scientists and engineers, and even viewed as somewhat

better than others on enforcement of IPR, Ghana fares a bit worse in FDI’s effectiveness as a


source of new technology in the domestic economy. Promotion of more FDI technology

spillovers and applied research is called for.


GROWTH PERFORMANCE

Ghana is one of the better performing countries in Sub-Saharan Africa. In 2008, in current U.S.

dollars, per capita GDP stood at $716 per annum, well above the median of $258 for LI-SSA

countries. This strong growth performance is confirmed in terms of relative Purchasing Power

Parity (PPP): per capita GDP (PPP) rose from just $1,176 in 2004 to $1,520 in 2008, close to

double the LI-SSA median of $784 and significantly higher than the per capita income of $1,208

in Tanzania the same year. Ghana’s impressive per capita income gains reflect the high levels of

overall economic growth the nation has experienced in recent years. In the last five years alone,

overall real GDP has increased at an annual average of 6.3 percent. In 2008, the growth rate

exceeded 7 percent (Figure 2-1). This is well above the expected rate of 5.2 percent for a country

with Ghana’s characteristics, the LI-SSA median rate of 4 percent, and South Africa’s 3.1

percent growth in 2008. Tanzania has achieved very high growth rates in recent years, besting

Ghana by 0.3 percentage points in 2008.

Ghana’s growth successes have been underpinned by macroeconomic restructuring in the early

years of this decade, followed by high and rising levels of both public and private sector

investment. The restructuring included public expenditure and financial management reforms,

the restructuring of public utilities and state-owned enterprises, and the adoption of new pricing

mechanisms for petroleum products. In 2007 (the latest year available) overall gross fixed

investment accounted for 33 percent of GDP, more than 10 percentage points higher than the

expected value of 22 percent for a country with Ghana’s economic characteristics, and close to

double the 19 percent and 17 percent of South Africa (2007) and Tanzania (2006) respectively.

Within this latest figure for total gross fixed investment, the private sector–to-government ratio is

about 60:40—that is, gross fixed private investment reached almost 20 percent of GDP, and

gross fixed government investment accounted for more than 13 percent of GDP. The share of the

government in total gross fixed investment appears to have risen slightly in the past three years.


FINDINGS

The Company has established a well equipped R & D Laboratory and quality control

laboratory with number of sophisticated instruments for testing and analysis

Nirma has the strongest belief in social security and quality of life for the human

resources and is thus practicing it by operating eight social security and welfare scheme

ranging from natural and accidental life insurance, medical insurance covering employees

family as well, gratuity, insurance, housing and vehicle subsidies.

All the plant locations continues to be well equipped with canteens catering hygienic

food through ultra modern facilities.

To cater to the needs of the female employee’s crèches are also continued to be

maintained in the most hygienic conditions and are being taken care by highly trained

staff.


SUGGESTIONS

Company should increase the advertising expenditure for selling more products. If the

company increases the advertising expenditure, it can earn profit more than

today

If company improves their management structure more than today’s

m a n a g e m e n t , s o c o m p a n y c a n i n c r e a s e i t s p r o d u c t i v i t y m o r e t h a n

o t h e r s .

T h e y h a v e e f f i c i e n t m a n a g e m e n t w i t h t h e

b a c k u p o f m i d d l e m a n a g e m e n t a n d t h e p e r s o n n e l o f

t h e c o m p a n y . T h e y a r e r e a l l y dominating keen competition with

qualitative production and advanced technology


CONCLUSION

Ghana is one of the better performing countries in Sub-Saharan Africa.

This strong growth performance is confirmed in terms of relative Purchasing Power Parity.

Ghana’s impressive per capita income gains reflect the high levels of overall economic

growth the nation has experienced in recent years. In the last five years alone, overall real

Tanzania has achieved very high growth rates in recent years, besting Ghana by 0.3

percentage points in 2012.

Science and technology is a comparative disadvantage for Ghana.

Planet Retail a UK based retail research company highlighted that more modern retailers are

establishing in Africa as a result of increased demand for FMCG products, the development

of urban centres and improved supply and store networks.


Bibliography

www.nirma.co.in

WWW.managementhelp.cpm

www.anwser,com

www.google.com

Affiliated to Gujarat Technological University Ahmedabad Reports for Upload/800 - Ghana.pdf ·...

Documents

Transcript of Affiliated to Gujarat Technological University Ahmedabad Reports for Upload/800 - Ghana.pdf ·...