8/7/2019 Randhir Ed

1/24

EXPORT MARKET

. A

PROJECT REPORT

ON

Starting up MEAT EXPORT HOUSE in KOLKATTA

2009-2011

UNDER THE GUIDENCE OF: SUBMITTED BY:

Dr. SAURABH GUPTA RANDHIR KUMAR (39)

PROF. JKPS PGDM (2009-11)

J.K. PADAMPAT SINGHANIA INSTITUTE OF MANAGEMENT AND

TECHNOLOGY GURGAON

8/7/2019 Randhir Ed

2/24

EXPORT MARKET

India, the fourth largest buffalo meat exporter in the world, is looking to cash in on its price advantage to

compete in the global market. The Rs 7,000-crore industry has already set its sights on newer markets like CIS

countries this year by strengthening infrastructure facilities and quality standards.

Indian buffalo meat is currently exported to 64 countries. Apart from its traditional markets like Egypt, Malaysia,

Syria and Jordan, the country also exports huge quantities to Turkey, Kuwait, Oman and Saudi Arabia. We

have opened new markets at Algeria and we expect to enter CIS countries soon, said a leading buffalo meat

exporter.

According to him, despite increasing cost, Indian buffalo meat is cheaper in the world market. A tonne of Indian

buffalo meat is available for $3,000 to $3,500 in Egypt, $2,900 in Malaysia and $2,700 to $2,800 in the Middle

East. The buffalo meat from Brazil is costlier by $800 to $1,000 a tonne compared to the Indian product, he

added.

Indias export has increased from Rs 3,549.78 crore in 2007-08 to Rs 4,839.71 crore in 2008-09. The large

volume of beef being exported from India makes it an important factor in considering the global protein

situation, said Rabobank Food & Agribusiness Research and Advisory (FAR) general manager for

Australia and New Zealand, Justin Sherrard. The low cost of this product makes it especially attractive in the

Middle Eastern and Asian markets, where the product competes on price with chicken, he added in a

Rabobank FAR report.

8/7/2019 Randhir Ed

3/24

EXPORT MARKET

Rashid Kadimi, president of all India meat and livestock exporters association, and the CEO of processed food

division at Indias biggest meat export house, Allanasons, said that the country has recovered from

recessionary phase and is expecting a marginal growth in the coming season. Allanasons holds a 40% market

share in buffalo meat exports from India. Currently, global demand for the meat is rising in such a pace that it

will outstrip supply soon. Factors like a possible demand surge in Europe, and fall in Australian meat

production make the prospects of Indian meat exporters very bright.

The competition will ultimately boil down between India and Brazil, he said. However, India, which is

exporting nearly five lakh tonne buffalo meat a year, shouldnt make any compromise on quality, he added.

The country today has 25 most modern integrated slaughter houses-cum-meat processing units. This apart, it

also has 60 to 70 separate meat processing units. The government has already started upgrading the existing

slaughter houses to a state-of-the-art infrastructure under public-private partnership, said an official at APEDA

.

India's 2010 buffalo meat productionis forecasttoincrease by five per centto 2.7

milliontonsdue tothe price competitivenessof Indian meatand expectedsustained

demand from meat-importing countries. Exportsare expectedtogrow marginally,

assumingnodrop indemand from existing export marketsdue tothe global recession.

Summarised by the TheCattleSite junior editor, Charlotte Johnston.

Production

The nationalherdis forecastto fallto 281.1 millionhead, continuingthe downwardtrendthathas beenseen for anumber of yearsasdrought conditions prevailinsomeareas. This fallisdue toadecliningdairy herd, as buffalo productionincreasesinpopularity due tolower maintenance costsandtheir diversity.

Buffalo milk ishighin fat, whichattractsa premium inthe Indian market. Theircarcaseshave less fatand bone, butahigher proportionof muscle.

Aswellasthis, there is favourable exportdemand, due tothe cost competitiveness

andlean meat. Itis estimatedthat Indiahas 57 per centofthe world's buffalopopulation.

Buffalo meat productionis forecasttogrow by five per centin 2010, itisalso predictedthat buffalo meat productionhasincreased five per centthis year (2009).

Outofthe total productionof coarse grains (maize, bajra, sorghum, millet etc.); about10 per centis currently utilised for livestock feeds. Asthe pricesofgrainincreasesteadily, livestock production costs may increase if current conditions persist. Some

8/7/2019 Randhir Ed

4/24

EXPORT MARKET

smalland marginal farmers may also resorttodistresssalesofanimals, leadingtolonger term supply concerns.

Production policy

Previous production policieshave beenlargely basedondairy development, howeverthingsare changing. The Ministry of FoodProcessing Industries (MFPI) has proposeda

Grantin Aidscheme for the modernisationofabattoirs, to be completed by 2012. Aswellasthis, a National MeatandPoultry Processing Board (NMPPB) waslaunchedinFebruary 2009. The boardwillinitially be funded by the government for the firsttwoyearsandwilllater be managed by the industry. Itsobjective isto regulate andpromote the meatindustry. A programme 'Salvagingand Rearingof Male BuffaloCalves', withthe purpose ofincreasing meat productionhashada $250 millionfinanciallayout proposed.

Livestock tradingin Indiaisdone instate government regulatedlivestock markets. Theprocessed meatsector, formerly regulated by the Ministry of FoodProcessingIndustries (MOFPI), isnow regulated by the Food Safety and Standards Authority of

India (FSSAI). The Ministry of Healthand Family Welfare regulates bothdomesticproductionandimportationof meatand meat products. The exportof raw meat(frozen/chilled) is regulated by Raw Meat (Quality Controland Inspection) Rules, 1992.

ConsumptionBuffalo meat consumptionis forecasttohave increased by six per centthroughout

2009 to 2.1 milliontons, againdue toits cost effectiveness. Annual per capita buffalo

meat consumptionis estimatedat 2 kilograms, however there isa culturaldifference in

India regarding categorical meat consumption patterns. Itis estimatedthatabout 20

per centofthe populationare vegetarian.

Accordingtothe Ministry of FoodProcessing Industries, processinglevelsin buffalomeat (20 per cent) and poultry (6 per cent) are quite lowas comparedto most

developed countries. Indian consumers prefer to buy fresh meat from wet markets for

further processingathome. Meat from buffaloesis primarily processed for exports.

Indiahasatotal meat processing capacity ofover one million MT per annum outof

which 40 to 50 per centisactually utilised. The lack ofsufficient cold chain

infrastructure isone ofthe constraintsto processing.

Trade

Buffalo meat exportsare expectedtogrow marginally in 2010, assumingdemandexists. Exports for 2009 are expectedto remain muchthe same aslast year due totheglobal economic recession, restrictive trade policies, and changing market conditions.

However, exportersare confidentthatdemandwill continue for buffalo exportsasthemeat from Indiaisvery cost competitive ininternational markets.

Indian buffalo meatis exportedto more than 60 countries. Prominentamongthese are

8/7/2019 Randhir Ed

5/24

EXPORT MARKET

emerging marketsin Africa (Angola, Congo, Cote D. Ivories, Gabon, Ghana etc.), CIS(Azerbaijan, Georgia, and Uzbekistan), andtraditional marketssuchas Vietnam,Malaysia, Philippines, andthe Middle East. Exportersare alsoworkingtogain marketaccessin countrieslike Russiaand Indonesia.

Over 90 per centof buffalo meat exportsare bonelessandthe balance isshippedas

carcases. The buffalo meatshare in Indiais more than 90 per cent. India'stotal exportearningsduring IFY 2007/08 were aroundtwo billiondollars from livestock and poultryproductsand 1.8 billiondollars from marine products.

Trade policy

Current Government Of India (GOI) regulations prohibitimportsoflive animalsaswellas poultry, ovine, caprine andswine meatand meat products from the United States.Bovine germplasm from the United Statesalsohaslimited marketaccess.

The Livestock Importation Act, 1898 regulatesthe importationoflivestock andlivestock products.

Germplasm Trade RegulationsThe finalimport protocolincludingthe proceduresand conditionsstipulated by theMinistry of Agriculture (MOA) for bovine semenwas releasedon September 5, 2007.The MOA hasalso preparedguidelines for the importand exportof bovine germplasmto ensure thata regulatory procedure isset up for processing receivedimportandexportapplications. These regulationswere revisedin July 2009 toallow for the importofsexedsemen, young bulls, and early pregnantheifersaccordingtotheir specifiedimport requirements.

Itis estimatedthataround 70-75 per centofthe indigenous cattle and buffalopopulation cannot be categorized under any well-defined breedandtheir milk yieldsare muchlower thanany pure dairy breedavailable in India. Additionally, theproductivity levelof mostdefinedindigenous breedsislessthan 1,000 kgs per head.Therefore, the GOI isdeveloping policiesin favor ofnew breeding programsandofanorganizedartificialinsemination breedingnetwork. This effortis expectedtoleadtoincreaseddemand for non-native germplasm for producing quality crossbredanimals.

The prospects for the Indian meat industry seem bright in the years to come. This is primarilybecause of the improving livestock health situation in India, Dun & Bradstreet said in its latest study.

India has always been free from mad cow disease and Rinderpest since 1995. With greater thruston value addition and processed products, Indias meat exports are likely to move up the value

chain in a significant manner, the study said.

According to the study, meat exports during the fiscal 2005 touched $383.5 million, witnessing agrowth of 15.7% over the previous year. This is expected to grow substantially over the years tocome.

Asian region is the largest importer of Indian meat with Malaysia and the Philippines being the mostfavoured export markets, followed by the Middle East. Similarly, the African region has alsoemerged as a strong export destination for Indian meat exports in the last few years.... The meat

8/7/2019 Randhir Ed

6/24

EXPORT MARKET

exportactivitiesare inRussia, Africa and the Middle East, which remainstrong, due totheability tooffer competitive andhighly reasonable pricingasa resultofour maintainingsubstantial meatinventory in India.

India is rich in its livestock wealth. It accounts for nearly 16% of the world cattle population, morethan half of world buffalo population and about17% of worlds goat population.

Majormarkets

Buffalo Meat Malaysia, Philippines, UAE, Iran, JordanSheep/goat Meat Saudi Arabia, UAE, Oman, Bahrain, Kuwait

Animal Products Portugual, France, UK, Spain, Netherlands

The

information for selecting target market can becollected from various sources like Export

Promotion Council (EPCs)/Commodity Boards, Federation of Indian Export Organisation, (FIEO),

Indian Institute of Foreign Trade (IIFT), Indian Trade Promotion Organisation (ITPO), Indian

Embassies Abroad, Foreign Embassies in India, Import Promotion Institutions Abroad, Overseas

Chambers of Commerce and Industries, Various Directories, Journals, Market Survey Reports.

Russia - Sourcing meat in India

Russiawilllook at Indiaapart from Turkey and Thailandtosatisfy its

8/7/2019 Randhir Ed

7/24

EXPORT MARKET

poultry demandtotide over the shortage created by lack ofsuppliesfrom the US and Brazil. The poultry imports from the US and Brazilarebannedafter detecting excessive usage of chlorine intheir products.Agriculture Minister of India SharadPawar is reportedtohave informedhis Russian counterpart Yelena Skrynnik thathis country hadthe

capability to meetthose demandsasandwhenthey emerged. Whileboth ministers metatthe sidelinesofthe BRIC Agriculture MinisterialMeet, Skrynnik toldthatthoughabundantstocksof poultry productswere available atthe moment, we wouldturnto Indiawhenever arequirementsprang up.

A suddendemand for poultry in Russiahas resulteddue tothe banimposedonthe US and Brazilian poultry asimports from these countriesdidnot meet Russian poultry standards. Accordingtosources, Russiansanitary standardsare quite stringentthaninternationally accepted

ones. The Russian poultry imports from the US atsome pointoftimehad even risen up to 80 percentinthe past butthe newsanitaryrequirements enforcedsince Jan 1 have completely stoppedallimportsfrom the US.

Itshould be recalledthat Indiatoo facedseveralimport bansincludingthe existingone from Russiaonits meatand poultry products.Nevertheless, a Russian expertgroup is expectedtovisit Indiashortly toreviewthislong-standing export ban.

Pawar said Indiawas exporting bovine meatand poultry productsto 60

countries, including Europe, andthere was enormous potential forexportsto Russiaaswell. Likewise, Skrynnik apprisedthat Russialastyear hadimported 600,000 tonnesof poultry andone milliontonnesofmeat.

However, itisnot knownthatthe goodnewstothe poultry and meatindustry of Indiawouldturnsour todomestic consumerslike thatofTurkey asithas been fearedin Turkey thatthe exportapproval for500,000 tonnesofwhite meatto Russia could jack up domestic poultrypricessignificantly. Besides, the Turkish consumersare worriedthatthe

neworders from Russiawould even cause severe poultry shortage inthecountry eventhough Turkish Agriculture Minister, Mehdi Eker arguesthat production for exportsanddomestic needsare metseparately.

European Union : Beef consumption in the EU continues to remain low followingthe 1996 BSE scare. Intervention stock of EU beef stood at about 510,000 tonnesat the beginning of 1999, of which Germany had the largest share, followed by UK,France and Ireland. Many importing countries refuse to purchase intervention beef

8/7/2019 Randhir Ed

8/24

EXPORT MARKET

due to its lack of traceabilityand length of time in storage, despite its low price. EU beef exports suffered adecline in 1998 as a result of crisis in Russia which is EUs top export market.

Saudi Arabia - Foreign partners

Duringthe lastdecade or so Saudi Arabia'strade tieswith foreigncountrieshave gone througha marked change whichis reflective ofprevailingglobal realities. While countriessuchasthe United States,Japan, Britainand France continue to maintain considerable politicalandeconomic clout, new power centersare equally important. Hence SaudiArabia'sstrengtheningoftrade relationswith China, India, Brazil, SouthKorea, South Africaandother such emerging economies makessense.

Custodianofthe Two Holy Mosques King Abdullah'svisitto ChinaandIndiain January 2006, justa few monthsafter hisascendingthe throne,wasseenasastrategic shiftinthe country's foreign policy. Dubbedas"look east" policy, ithas producedthe desired resultwith Chinaemergingasthe secondlargestsource ofimportstothe Kingdom andranking fifthasadestination for Saudi exports.ChinaSaudi Arabiaand China establisheddiplomatic tiesin 1990 andin 10yearstime their mutualtrade hasseen rapidgrowth. Accordingtoareportofthe Saudi Fransi Bank (SFB), Chinese exports rose by 167percent from SR1.66 billionin 1990 to SR4.44 billionin 2000. During

the same period Saudi Arabia's exportsto Chinaincreased by 3,463percent from SR158 millionto SR5.63 billion. Today more than 70Chinese companiesare doing businessinthe Kingdom, ofwhich 62 areconstruction firms employingsome 16,000 Chinese people.Saudi Arabiahasgranted ChinaPetroleum and Chemical Corp. (Sinopec)a SR1.1 billion concessionto explore and produce naturalgasina38,000-km concessionarea. Sinopec owns 80 percentofaspecial-purpose company and Saudi Aramcothe remaining 20 percent. AlthoughSinopec hasless experience innaturalgas exploration, the concessionissymbolic ofthe reciprocalhydrocarbon relationship betweenthe two

countries. China's main exportsto Saudi Arabiaare garments,mechanicaland electronic products, air-conditioning unitsandtextiles,while its mainimports from the Kingdom are crude oil, liquefiedpetroleum gasand primary plastics.In April 2006, Chinese President Hu Jintaoannouncedhis country'sintentionthat bilateraltrade volume betweenthe two countriesshouldreach SR150 billion by 2010. "Itseemsthatthiswasachieved by 2008,aswe estimate that Saudi Arabia's exports reached SR116.25 billionand

8/7/2019 Randhir Ed

9/24

8/7/2019 Randhir Ed

10/24

EXPORT MARKET

1975 1985 1975

1. Buffalo Meat 2.3 2.1 2.1

2. Beef 2.0 3.8 2.9

3. Mutton 1.9 2.0 1.9

4. Goat Meat 2.9 2.9 2.9

5. Pig Meat 4.6 14.7 10.6

6. Poultry 4.8 10.0 8.1

Total .5 4.7 4.6

Table 2: Trends in Livestock Population and Meat Production over 2

decades 1975-2000

LivestockSpecies

PopulationinMillions

1975 2000

SlaughterRate(%)

1975 2000

CarcassWeight(Kg.)

1975 2000

MeatProduction

in 000Tones

1975 2000

ShareinTotalmeatProduction

(%)1975 2000

Cattle 180.1 209

(6.7)

4.9 6.4

(4.5)

82 10.3

(28.0)

724 1378 35.330.0

Buffaloes 60.5 92.0

(23.3)

9.3 11.0

(-)

139 138

(-)

780 1403 38.1 30.5

Sheep 40.1 56.4

(40.0)

31.9 32.8

(12.6)

9 12

(33.3)

117 222 5.7 4.8

Goat 69.7 120.5

(46.5)

425 38.0

(6.5)

9 10

(11.1)

269 458 13.2 10.0

Pigs 7.0 16.0

(32.2)

25.7 83.6

(60.0)

31 35

(9.4)

56 46.9 2.8 10.2

Poultry 141.0 637 0 0 0.8 1.0 101 527 4.9 11.5

8/7/2019 Randhir Ed

11/24

EXPORT MARKET

TOTAL 498.4 1060.4 20474900

(311)

100 100

1. Figures in Parenthesis are percentage increase over the previous 2 decades.

Table 3: Export of buffalo meat (MT) from India to different countries

Countries19971998 1999 2000-01 2001-02

Malaysia 53440 40054 53,192 77,153 67,251

U.A.E. 41875 37648 41,557 41,516 19,988

Jordan 5381 6576 5,877 12,442 15,327

Yemen 2389 2864 2,760 3,733 3,938

Oman 3979 1296 3,690 - -

Kuwait 4562 4544 4,150 4,596 3,726

Mauritius 4012 3394 2,968 3,192 3,004

South Africa 239 90 52 154

Bahrain 2318 1624 2217 2391

Philippines 32151 26383 27,640 47,447 50,356

Iran 11035 13524 8,022 12,576 10,741

Qatar 1007 811 564 617 852

Egypt 25 2457 2,457 48,716 17,808

Others - 1,627 1,500 500

Total 176328 1 53956 167291 288027 243356

Table 4 Export of Sheep/Goat Meat from India (MT)

S.No. Country 1997-98

1998-99

1999-2000

2000-2001

2001-2002

8/7/2019 Randhir Ed

12/24

EXPORT MARKET

1. Bahrain 126 328 104.0 57.8 71.2

2. Jordan - 25 25.0 - 11.0

3. Kuwait 3.7 109 103.0 195 25.4

4. Sri Lanka - 10.6 52.0 175.3 69.7

5. Oman 670 596 810.0 963.0 378.5

6. Qatar 42 56 69.8 148.9 113.5

7. SaudiArabia

2966 2677 5526 3210 13

8. UAE 3364 3952 5543 6925 3128

9. Others - - - - -

TOTAL 7546 8648 12419 11902 3915.00

Table 5: Export of Poultry Meat for last 5 years

1997-98 1998-99 1999-2000 2000-2001 2001-2002

11040 7390 8367 15836 19876

Table 6: Integrated Processing Plants

S.No Company ProcessingPlant

Location CapacityAnnualCapacity(tones)

1. Allanasons Fully

Integrated

Buffalo SheepGoats

-Do- -do- -do-

- Aurangabad

- Unnao

- Kolkata

- Hyderabad

90,000

90,000

100,000

90,000

8/7/2019 Randhir Ed

13/24

EXPORT MARKET

Partiallyintegrated

- Sahibabad 50,000

2. Hind AgroIndustries Ltd

FullyIntegrated

Buffalo Sheepand Goat

PartiallyIntegrated

-Do-

-Do-

-Do-

- Aligarh, U.P.

-Sahibabad,UP

- Meerut, UP

- Khurja, UP

-LawrenceRd., Delhi

120,000

50,000

25,000

20,000

20,000

3. Al-Kabeer FullyIntegrated

Buffalo Sheep& Goat

Hyderabad,AP

60,000

4. ArabianExports

FullyIntegrated

Buffalo, Sheep& Goats

KoregaonMaharashtra

50,000

5. Fair Exports FullyIntegrated

Buffalo, Sheep& Goats

Barabanki,UP

50,000

6. MKR FullyIntegrated

Buffalo, Sheep& Goat

Nanded

Maharashtra

40,000

7. Punjab Agro FullyIntegrated:

Buffalo, Sheep& Goats

Bassi, PunjabChandigarh

50,000

8. Venkay Fully Pune,Maharashtra

1 MillionBirds

8/7/2019 Randhir Ed

14/24

EXPORT MARKET

Integrated

Poultry

9. Government Fully

Integrated

Buffalo,Sheep, Goat

Deonar,

Maharashtra

50,000

10 Government FullyIntegrated:

Buffalo,Sheep, Goats

Goa 10,000

Table 7: Composition of MeatCum Bone Meal

Chemical Compositionon Dry MatterBasis

Oil 7 - 8%

Protein 50 - 52.0%

Fiber 3.0%

M.E. (K. Cal/Kg) 2500

Calcium 8.0%

Phosphorus 4.5%

Methionine+Cysteine 2.4%

Lysine 2.6%

Sodium 0.8%

8/7/2019 Randhir Ed

15/24

EXPORT MARKET

Salmonella Absent

Lesteria Absent

E. Coli Absent

Coliform Bacteria Absent

l

EXPORT PROCEDURE

Setting up an appropriate business organization

Set up sole proprietary business organisation.

Name of thecompany- FAIR MEATTRADERS.

Registration will bedone at ::

Plot No. 14,

New Friends Colony,

Ecchapur,KOLKATTA

8/7/2019 Randhir Ed

16/24

EXPORT MARKET

About Company

The company offersall kindof finest quality Halal Meatand MeatProducts under its premium

brandFRESH. Our product range includes Buffalo, Goat, Lamb Meatand Offalaswellashigh

quality Indian Table Eggs under its FRESH brand which are sought after by retailers,

wholesalers, caterers, manufacturersofanimal by productand pharmaceutical processors.

We adhere tothe comprehensive quality andhygienic slaughteringassurance as enforced by the

APEDA (Agricultural &Processed FoodProducts Export Development Authority) aswellas the

Sharia Lawstrictly under the supervisionof Muslim Jammiatul Ulema-e-Hind for HalalProcedure

andalso certified by the Veterinary Health Departmenthere in India. Our focus is to maintain

and produce Meat products under quality, testing, labelingand licensing. We work closely with

buyersto ensure we meetthe diverse expectationof each marketandtailor productstosatisfy

specific request.

The de-boned and de-glanded frozen meat is packed under hygienically and modernized

processing unitin Food Grade Polythene andthenin Sea Worthy Cartonsofdifferentweightas

per buyersspecification.

Company Mission

1. Provide our customers with a level of product quality, service andcompetitive pricing which

meet their expectations.

2. Offer our employees a career opportunity, job security and satisfaction which genuinely meet

their expectations.

3. Acknowledge thecontribution of our suppliers who must be satisfied with the ongoing

commercial relationship and the teambuilding required to fulfill our customer fulfillment

promise.

Officelocation is plot no -14 new friends colony ,ecchapur ,kolkatta (Office space is rented).

Details about company :

8/7/2019 Randhir Ed

17/24

EXPORT MARKET

Capital required Rs 14,0000(self finance).

Office rent Rs 8,000/month.

2 computers Rs 30,000.

Stationary material Rs 15,000.

Miscellaneous expenditure Rs 3000/month

Export materialcost Rs 80,000 /month

Employees- 1 receptionist.(Rs 5000/month)

2 for order processing.(Rs 8000/person/month)

5 field representatives.(Rs 10,000/person/month)

2 guard(Rs 4000/month)

4 butcher (Rs6000/month)

2helper.(Rs 4000/month)

Mode of operation

Merchant Exporter i.e. buying the goods from the market or from a manufacturer and then selling

them to foreign buyers.

Selecting prospective Buyers

Addresses of the prospective buyers of the meat can be collected from the followingsources:

y Enquiries from friends and relatives or other acquaintances residing in foreign

8/7/2019 Randhir Ed

18/24

EXPORT MARKET

countries.

y Visiting/ participating in International Trade Fairs and Exhibitions in India andabroad.

y Contact with the Export Promotion Councils, Commodity Boards and otherGovernment AgenciesConsulting International Yellow Pages (A Publication from

New York by Dun & Bradstreet, USA or other Yellow Pages of different countrieslike Japan,Dubai Etc.)

y Collecting addresses from various Private Indian Publications Directories availableon cost at Jain Book Agency,C-9, Connaught Place, New Delhi-1. (PH. 3355686,

Fax.3731117).

y Collecting information from International Trade Directories/ Journals/periodicalsavailable in the libraries of Directorate General ofCommercial Intelligenceand

Statistics, IIFT, EPCs, ITPO etc.

y Making contacts with Trade Representatives of Overseas Govt. in India and IndianTrade and Other Representatives/ International Trade Development Authorities

abroad. A list of international trade development authorities abroad like Foreign

Chambers ofCommerce etc. is given in Nabhi's EXPORTERSMANUAL ANDDOCUMENTATION.

y Reading biweekly, fortnightly, monthly bulletins such as Indian Trade Journal,Export Service Bulletin, Bulletins and Magazines issued and published by

Federation ofExporters' Organisations, ITPO, EPCs, Commodity Boards and otherallied agencies.

y Visiting Embassies, Consulates etc. of other countries and taking note of addressesof importers for products proposed to be exported.

y Consulting ITPO,IIFT,etc.y Contacting authorised dealers in foreign exchange with whom exporter is

maintaining bank account.

y By corresponding and sending brochures and product literature to prospectiveoverseas buyers.

y Participation in buyer-seller meets and meeting the members of foreign delegationinvited by Export Promotion Councils concerned.

y Participation in international trade fairs, seminars.

Channels of distribution

y Direct Exports .

y Export through Overseas Sales Agencies.

Registration

Registration with Reserve Bank Of India: No longer required. Prior to 1.1.1997 it was

8/7/2019 Randhir Ed

19/24

EXPORT MARKET

compulsory for every exporter to obtain an exporters' code number from the Reserve Bank of

India beforeengaging in export. This has since been dispensed with and registration with the

licensing authorities is sufficient beforecommencing export or import.

y The exporters have to obtain PAN based Business Identification Number (BIN)

from the Directorate General of Foreign Trade prior to filing of shipping bill forclearance of export goods.

y Registration with Regional Licensing: Authorities (obtaining IEC Code Number. For

obtaining IEC number you should apply to Regional Licensing Authority .Before applying

for IEC number it is necessary to open a bank account in the namecompany / firm with

any commercial bank authorised to deal in foreign exchange.

Theduly signed application form should be supported by the following documents:

y Demanddraft for payment of the fee of Rs. 1000 or Bank Receipt evidencing deposit ofpayment of fees from the Central Bank of India .

y SaleTax Registration Certificate.

y A copy of the passport in thecase of an individual.

y In case the application is signed by an authorized signatory, a copy of the legal authority

letter issued by the firm/company.

y Certificate from the banker of the firm

Address -- The Joint Director General of The General Manager,

Foreign Trade, Central Exchange Control Deptt.

Licensing Area, Reserve Bank of India

New Delhi- 6, Sansad Marg,

New Delhi-110 001

Or

Director Generalof Foreign Trade

Udyog Bhavan, New Delhi

Register With Export Promotion Council

Register withanappropriate export promotionagency by obtaining registration-cum-

8/7/2019 Randhir Ed

20/24

EXPORT MARKET

membership certificate.The RCMC shall be valid for five years ending 31st March of the

licensing year. Thecertificate shall bedeemed to be valid from 1st April of thelicensing year in

which it was issued.

Agricultural and Processed Food Products Export Development Authority (APEDA)

Address : Ansal Chambers No.II, 3/F,6, Bhikaji Cama Place, New Delhi-110 066, India

Tel : 91-11-6192141

Fax : 91-11-6195016

E-mail : apeda@giasd101.vsnl.net.in

Contact Person: Mr. D. Rajagopalan, Chairman; Sqn. Ldr. D.B. Sabharwall

Areas of Interest: Animal Products, Cereals, Floriculture and Seeds, Fruits and Vegetables,

Processed Fruits and Vegetables, Other Processed Food.

Registration With Sales Tax Authorities

Goods which are to be shipped out of thecountry for export areeligible for exemption from both

Sales Tax and Central Sales Tax. Get yourself registered with the Sales Tax Authority prescribed

under the Sales Tax Act applicable Haryana.

Department ofEx

cise & Taxation, Haryana

Address:Vanijya Bhawan Plot no. I-3 Sector 5

Panchkula-134151

EMail: mail@haryanatax.com, EPBX 0172-2590997

Acquire Export License

An application for grant ofexport license in respect of items mentioned in Schedule 2 of ITC (HS)

Classifications of Export and Import items may be made to the Director General of Foreign Trade.

Zonal Joint Director General of Foreign Trade

Ministry of Commerce & Industry

" A " Wing Indraprastha Bhawan

I.P.Estate, New Delhi - 110002

8/7/2019 Randhir Ed

21/24

EXPORT MARKET

Feasibility Study :

1,11,000/month

for salari

es 1,11000X12= 13,32,000

8,000/month for rent 8,000X12= 96,000

Computer 30,000 for 2 systems 30000/12 = 2500 per month

Other miscellaneous 3000/month 3000X12= 36000 annually

Stationary charges 15000 annually 15000/12 = 1250 /month.

Initial Month Expense : 1,11000+8,000+3000+1250+2500 = Rs 1,25,750.

Total monthly expense = 125750+80000=2,05,750

Orders processed for Rs 8,00,000 .So profit was 15 % of 8,00,000 i.e 1,20,,000.

Foreign sales agencies demands 2 % of total sales i.e 2 % of 8,00,000 =16,000

So loss = 1,25,750 (1,20,000-16,000)= Rs 21,750

Second month

Order processed = Rs 8,00000.

Profit from sales = 18 % of 8 00000 =1,44000.

Payment to sales agencies = 3% of 8 00000=24000.

Loss=166750-(144000-24000)=46750

Third month

Order processed=Rs 1200000

Profit from sales= 15% of 12 lakh=180,000

Payment to agency=3 % of 12 lakh=36000

Loss=166750-(180000-36000)=22750

Fourth month

8/7/2019 Randhir Ed

22/24

EXPORT MARKET

Order = 1100000

Profit = 18 %=1,98,000

Payment to agency = 1.5% =16500

Profit =166750-(198000-16500)=14750

Over and above of Break even point was achieved in month four.

With moreexperience andexposure and self sufficiency in exports there will bedirect export to

companies rather than throughcanalising foreign agents thus saving 3 % per month on sales.

PROJECT DETAILS

I will take 4000sq mt area on rent in ecchapur ,kolkatta

Utilities:-

1) Power:

Normally a three phase electricity supply is required for milk processing plants. The powerrequirement depends upon the load to be connected and the necessary approval from SEBshould be obtained for connection. Depending upon the position of power supply, standby

generators may be considered for connecting the essential sections.

2) Water:

I we ill have my boring which will provide me sufficient water for the work to be done.

8/7/2019 Randhir Ed

23/24

EXPORT MARKET

3) Compressed Air:

It will be required for drying the meat ..

4) Machines

In the initial stage of my business I will purchase a machine of 20,000 from L& T

6) Other Services:

Although a maintenance workshop is an integral part of plant for carrying out repairs andmaintenance of equipment.

viii) Communication:

Proper communication facilities is essential.

Manpower:

While selecting the site, the availability of manpower should be looked into and the total

requirement of manpower depends on the operations involved and the quantity of meat tobe handled. I will have sixteen employees.

Environmental Aspects and Pollution Control:

There are no hazardous effluents generated from a meat processing plant. However,construction of effluent treatment plant is necessary in case of multiproduct large size

plants for treating the effluents before discharging for proper disposal. The final effluentshould meet the requirements of Pollution Control Board and is necessary to get clearance

from them.

Schedule of Implementation

The activity wise schedule of implementation is to be given in the project.

.

.

Business Prospects:

It involves the present demand-supply for various products, gap in supply and expecteddemand for various products. The major competitors and their present share is to be

ascertained. The company projections for the next 3-5 years and the basis for projectionmay have to be furnished. The product wise quantities and countries where it is to be

exported need to be mentioned.

8/7/2019 Randhir Ed

24/24

EXPORT MARKET