GLOBALIZATION

CHANGE THE GLOBAL BUSINESSOn the perspective of Transportation sector

GLOBALIZATION

Globalization is the process of internationalintegration by which the experience of everydaylife, marked by the diffusion of commodities andideas and other aspects of culture is becomingstandardized around the world.

Our life is struck within a second without amobile phone. More or less we love to eat pizza onPizza Hut, these all are the experience ofGlobalization. Every day we are passing hundredof those experience for globalization.

TRANSPORTATION- BUS

World most popular public transport ‘Bus’ the short form of Latin word Omnibus earn thousand billion of dollar over the manufacturing and servicing all over of the world.

HISTORY

In the early 1830's Sir Goldworthy Gruney fromthe UK had designed some kind of a Hughstagecoach, powered by steam engine. This wasprobably the first kind of bus developed bymankind.

An American Firm the Yellow CoachManufacturing in 1922, for the first time haddeveloped a chassis especially for bus service.

Soon after that, the gasoline electric buses wereintroduced and a few years later the dieselpowered Buses came into being. Later in the1950's air suspension was first implemented inthe passenger Buses.

WORLD TOP 10 BUS PRODUCTIONCOUNTRY

MY BUSINESS PRODUCT ISENVIRONMENTAL FRIENDLY “GREEN-TIRE” AND MY FACTORY LOCATION ISINDIA.

BEFORE ESTABLISH MY FACTORY IN INDIAI CONSIDER SOME FACTOR

Culture Business environment In India Business Relationship between India and

bangladesh Why I Chosen India instant of Bangladesh

CULTURE

Both Bangladesh and the India are part of theIndian subcontinent and have had a longcommon cultural, economic and political history.The cultures of the two countries are similar. Thetwo Indian states of West Bengal and Tripuraalso spoken in Bengali.

But there are also some differences

CULTURE

Religions

In India 80% of the people are Hinduism. 13% are Islam. 7% are Buddhism, Jainism and Sikhism.

On the other side the majority of Bangladeshis (about 90%) are Muslim, and a small number of Hindus, Christians and Buddhists are also living in the country.

Language

Indian mother tongue is Hindi and official language is English.

But Bangladeshi mother tongue is Bengali.

Per Capital income

Bangladesh per capital income is $700.59 and in India per capital income is $1388 in 2011.

Currency

Bangladesh-Taka (BDT). India -Indian rupee (INR).

BUSINESS ENVIRONMENT IN INDIA

The government of India welcomes FDI in all sectors where it is permitted, especially for the

Development of infrastructure The technological upgrade of Indian industry

through ‘Greenfield’ investments Investments for setting up Special Economic

Zones (SEZs) and establishing manufacturing units are also welcomed.

BUSINESS RELATIONSHIP BETWEEN

BANGLADESH AND INDIA

Over 15% of Bangladeshi imports come from India.

Bangladesh has a large trade deficit with India; this is offset by surpluses with other countries.

Bangladeshi exports to India receive tariff concessions (under SAFTA).

They account for less than 1% of total India’s imports.

Illegal trade between the two countries amounts to 3/4 of regular trade.

WHY I CHOSEN INDIA INSTANT OF

BANGLADESH

In Indian tire industry during the last few decades has been significant. Because of

Government approvals of collaborations with MNCs in this sector.

The emphasis given by Indian tire companies to applied research

India is the third largest producer of rubber in the world. And main raw material of tire is natural rubber.

Manned by experts and experienced professionals have also helped in technology up gradation

TO BE CONTINUED……

Green tires have been emulated by economies like South Korea, Japan, US and even China. So now India especially India’s National Action Plan on Climate Change (NAPCC) is also encourage investment on Green tire for emission of CO2.

TYPE OF INVESTMENT

There are two routes for FDI : 1. The Automatic route 2. Foreign Investment Promotion Board route

(FIPB)In India a citizen of Bangladesh or an entity

incorporated in Bangladesh can invest only underthe Government route.

Foreign Investment Promotion Board (FIPB) route - Government Approval

Applications for such cases are to be submitted in FC/IL form or on plain paper to Foreign Investment Promotion Board (FIPB) in Department of Economic Affairs, Ministry of Finance, Government of India.

GREEN TIRE

The Green tire has a role to play in terms of optimizing rolling resistance. The tire alone can be responsible for almost 20% of a vehicle’s fuel consumption. At each rotation, the materials making up the tire heat, deform and release part of the energy transmitted by the vehicle: this phenomenon is called rolling resistance and can represent up to one fuel fill in five.

The green tire was invented by the Michelin Group who launched the Energy saving tire 17 years ago. Michelin managed to replace 95% of the carbon black, which gives the tire its color, by silica which consumes far less energy and thus requires much less fuel. This technique gave rise to the Energy Saver tire, with 20% less rolling resistance and energy savings of 4 g of CO2 / km. This tire makes up ¾ of Michelin’s sales in Europe.

GREEN TIRE GIVES US

ENERGY EFFICIENT:Reduces fuel consumption and CO2 emissions.CLEAN AIR:Made from eco-compatible materials that minimize environmental impact, both at the production stage and throughout the life of the tire.HIGH MILEAGE:Longer lasting tire that maintains high levels of performance and safety.LOW NOISE:Already complies with the 2012 EU Regulation on the reduction of noise, resulting in improved driving comfort.

RAW MATERIAL OF GREEN TIRE

Natural Rubber Modified grades of solution styrene-butadiene

rubber (SSBR) Refined grades of neodymium-polybutadiene

rubber (Nd-PBR) Silane-treated silica instead of the traditional

carbon black Crude oil Mesoporous silica instead of the traditional silica Steel cords Other tire chemicals

KEY FEATURE OF INDIAN TIRE

INDUSTRY

At present there are 47 listed companies in the tire sectorin India.

Industry is a major consumer of the domestic rubbermarket.

The sector is raw-material intensive, with raw materialaccounting for 70% of the total costs of production

Import of new tires & tubes is freely allowed, except forradial tires.

Total value of tire exports from India is approximately Rs4000 crore (2010-11)

The major factors affecting the demand for tires include thelevel of industrial activity, availability and cost of credit,transportation volumes and network of roads, execution ofvehicle loading rules, radicalization, retreading andexports.

TIRE STANDARD POLICIES OF INDIA

The following Indian standards address the basic fit,form and functional requirement of tires and tubes asper the service conditions prevailing in India.

1) Specification IS 15627: Automotive vehicles –Pneumatic tires for two and three-wheeled motor vehicles.

2) Specification IS 15633: Automotive vehicles –Pneumatic tires for passenger car vehicles, diagonal and radial ply.

3)Specification IS 15636: Automotive vehicles –Pneumatic tires for commercial vehicles, diagonal and radial ply.

4)Specification IS 13098: Automotive vehicles – Tubes for pneumatic tires

NEW POLICY INITIATIVES

The tire industry in India has had to grapple with raw material price volatility, rupee appreciation and cheap Chinese imports.

No WTO bound rates for Tires and Tubes. No restrictions on the import of all raw materials

required for tire manufacture except carbon black, which has been placed in the restricted list.

Increasing thrust on development of road infrastructure

RULE OF ORIGIN

Rules of Origin is the mechanism in identifying the origin of products under the regional/bilateral preferential trading arrangements namely PTA (Preferential Trading Agreement) and FTA (Free Trade Agreement) commonly known as Regional Trading Arrangements (RTAs).

Preferential Rules of Origin: Indian contextIn recent times there has been an intensification of India’s

economic engagements with other countries. These aremanifested in negotiations on (PTAs), (FTAs) andComprehensive Economic Cooperation Agreements(CECA) with various countries and regions. Theseinclude ASEAN, Thailand, Singapore, MERCOSUR,SAFTA, BIMSTEC, etc. India is already engaged withBhutan, Nepal and Sri Lanka under bilateral tradingarrangements. There are some economic partnershiparrangements between India and other countries thatare also in the offing.

CONCLUSION

The Green Tire purchase price is hardly higher than a traditional tire, but the real question lies in the use this type of tire can provide.

Green tires can be adapted to any type of car and bus.

This technology shared by all major manufacturers is available to the consumer, easy to use, effective on performance economical.

Although a green tire will always be black, its composition and characteristics make it a truly innovative product in terms of energy efficiency and environmental protection.