NME - Copy
-
Upload
ankurpatel94 -
Category
Documents
-
view
229 -
download
0
Transcript of NME - Copy
-
8/8/2019 NME - Copy
1/13
-
8/8/2019 NME - Copy
2/13
Company Background
The Company was incorporated on 31st May 1977 in the state of Assam
The Company was incorporated on 31st May 1977 in the state of Assam
Warren Tea Limited is the flagship of the Warrens group
Warren Tea Limited is the flagship of the Warrens group
Cultivation of tea plantations, manufacture of machinery for processing tea
Cultivation of tea plantations, manufacture of machinery for processing tea
14 tea estates with total planted area under tea measuring about 6,078 ht.
14 tea estates with total planted area under tea measuring about 6,078 ht.
Carry on the business as warehousemen, shippers and exporters
Carry on the business as warehousemen, shippers and exporters
Warren Tea Limited produces 16 million kg of tea annually
Warren Tea Limited produces 16 million kg of tea annually
The produce of the Company is savoured across 50 countries
The produce of the Company is savoured across 50 countries
One of the largest bulk tea producers in India and in the world
One of the largest bulk tea producers in India and in the world
-
8/8/2019 NME - Copy
3/13
Current International Business
RUSSIATa rg t
Th e c ompany exports its produ c ts to th e United Kingdom, Germany, Ireland, Nort h A meri c a, P akistan, Iran, and th e Middle East.
-
8/8/2019 NME - Copy
4/13
Wh y Go GLOBAL?
To increasesales, revenues, a
nd profits
To increasesales, revenues, a
nd profits
Competitive
advantages in newmarkets
Competitive
advantages in newmarkets
Excess capacity
Excess capacity
Limited ordeclining home
market
Limited ordeclining home
market
Domestic
competitionenteringinternational
markets.Competitive
response. Eg:Tata Tea s entry in
to the U.S., China,and other global
markets; J.V.Gokal s entry in to
the Russianmarket.
Domestic
competitionenteringinternational
markets.Competitive
response. Eg:Tata Tea s entry in
to the U.S., China,and other global
markets; J.V.Gokal s entry in to
the Russianmarket.
Global consumers'tastes are
converging. Easierto offer a globally
standardizedproduct.
Global consumers'tastes are
converging. Easierto offer a globally
standardizedproduct.
Lower costs andhigher prices -opportunities for
profit
Lower costs andhigher prices -opportunities for
profit
70% of Russians'income is
disposable vs.around 40% in the
West
70% of Russians'income is
disposable vs.around 40% in the
West
Russia: toplocation for global
retail
Russia: toplocation for global
retail
-
8/8/2019 NME - Copy
5/13
Wh y RUSSIA?S urging Economy
Real GDP Growth 8.1% to $1.3trillion
The fastest growing economy in theG8 group of industrialized nations
Investors pouring money intoimproved storage
facilities, infrastructure, and logistics
Improving financial services, rule of law, and banking infrastructure
FDI into Russia reach $58 billion in 2008, anincrease of about 16% compared to the value
in 2007
Even as the financial crisis shows no signs of abating anddeleveraging continues, Russian economy will remain strong
because of very low levels of public debt.
-
8/8/2019 NME - Copy
6/13
P olitical Factors
Government seeking to streamlinecustoms and taxation regimes to
Government focus on expanding
manufacturing base and improving
New reforms targeting bureaucracyand corruption
E- commerce, including B2B
ecommerce
Supporting the E-Russiaprogram, designed to stimulategrowth of
Attract more FDI
Infrastructure development
-
8/8/2019 NME - Copy
7/13
Opportunities for Indian Tea Companies in t h eRussian Tea Market
CATEGORIES GLOBAL INDIA RUSSIA
Market size in terms of retail value 23,323 876.4 3,266
Market size in terms of retail volume 1,765 226.04 161.44
Growth rate in terms of retail value(08-09)
4.50% 3.50% 12%
Growth rate in terms of retail volume(08-09)
3.50% 2.60% 2.30%
Per capita consumption (per kg) 0.3 0.7 1.3Average retail price (in US$ per kg) $13.20 $3.90 $20.20
Growth rate in retail price (2008-09) 0.90% 0.90% 9.50%
-
8/8/2019 NME - Copy
8/13
Forecast of Tea Volumes by Sub-sectors:2010-2012
239745
243099
245822
235900
239101
241683
230000
232000
234000
236000
238000
240000
242000
244000
246000248000
2010 2011 2012
Tea Black Tea
-
8/8/2019 NME - Copy
9/13
Opportunities for Indian Tea Companies int h e Russian Tea Market
-
8/8/2019 NME - Copy
10/13
E ntry mode - Joint Venture
Provides access togovernment contactsand existingdistribution network
Provides local helpminimizing problemsassociated withbureaucracy andcorruption
Pooling of
resources
S haring of profits
and risksTime-to-Timemarket advantages
-
8/8/2019 NME - Copy
11/13
TO Have Joint Venture Between
Warren tea Ltd canenter into joint venturewith local Russian teaindustry like..
1.Orimi Trade2.MO SCOW TEA FACTORYLIMITED COMPANY
-
8/8/2019 NME - Copy
12/13
ConclusionThe time for cooperation between India and Russia has never been
better.The time for cooperation between India and Russia has never been
better.
Plenty of resources on both sides to be taken advantage of.Plenty of resources on both sides to be taken advantage of.
Have a clear strategy and an end result in mind.Have a clear strategy and an end result in mind.
Know the process and requirements for getting to that end result.Know the process and requirements for getting to that end result.
Rely on experts who can bridge the needs and wants of all partiesinternationally.Rely on experts who can bridge the needs and wants of all parties
internationally.
-
8/8/2019 NME - Copy
13/13