Sri Sri Institute of Management Studies Margao, Goa

Sub : International Business

Project Report On Export of Amla Candy (Amalaki)

Submitted to: PROF. Bhaskar Assoldekar

Prepared By:
Nitish Dukle Nilesh Gadkari Deepti Kolvenkar Shalfin Barretto

Date of Submission: 21st January 2013

AKNOWLEDGEMENT
It is our pleasure to be indebted to various people, who directly or indirectly contributed in the development of this work and who influenced our thinking, behaviour, and acts during the course of study.

First, we express our sincere gratitude to Dr. Pradeep Salgaocar, worthy Director, Sri Sri Institute of Management Studies, Margao, for providing us necessary facilities to complete this project.

We are thankful to Professor Bhaskar Assoldekar for his constant support, cooperation, and motivation provided to us during the project. He was always available with his inspiration and blessings.

We would like to express our deepest appreciation to Mr. Uday Divekar for his patience and assistance. Without his persistent help this project would not have been possible.

Lastly, we Bow down to the almighty in deep reverence for making us worthy of his bounty.

Table of Contents
Sr.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Introduction Product information Organizational structure Product Packaging Analysis of the exporting country Reasons for exporting Competition Statutory requirements for setting up the company Documents and certification required for export of Amla candy Regulations of Importing Country Marketing and Sales promotion Subsidies Segmenting, Targeting and Positioning Production process Suppliers Analysis Client Details Pricing Strategy 4 Topic

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Bibliography

Introduction
Company Profile:We have established a company which is named as Emblica Exports Pvt. Ltd. , where Emblica Officinalis is also known as Indian Gooseberries, which is most often known as Amla in India. The companys main focus will be to export Amla candy. The Amla (Indian gooseberries) candy will be sold under the brand name AMALAKI. The companys operations will focus on collection of amla candy which is processed, packaged and labelled from Lonavala and sent to Emblica Exports Pvt. Ltd., Goa, wherein it will be further packed in mini and master cardboard, and will be transported to Jawaharlal Nehru Port Trust (JNPT), Mumbai through use of Roadways mode of transportation.

Address of the Company (Warehouse/Office) Emblica Exports Pvt. Ltd. Nessai Industrial Estate Navelim Margao Goa

Product Information
Candied fruits: They are also known as crystallised fruit. Basically they are made by submerging fruit pieces in sugar syrup solutions of gradually increasing strength, then drying them. During the soaking process, the sugar is absorbed by the fruit and moisture is lost from the fruit. And hence, it prevents the fruit from getting fungus etc.

Shelf-life: The preservation wholly relies on the high sugar and the low moisture content. They can be kept for several months or years when stored in a cool dry place, away from direct sunlight.

Preserves: They are prepared by soaking mature or fully grown fruits in sugar solution and keeping them in syrup. 7

Quality control points: Use only fully mature or fully grown fruits at the hard stage without bruising or damage. Use only refined, granular white sugar or rock sugar. Weigh all ingredients to the correct formulation. To be efficient, it is essential to recycle the syrup solution and use the same for several batches always adjusting the Brix value to the required level by adding more sugar. On the other hand, re-use the syrup solutions only 3 to 4 times, as the heating required to dissolve the extra sugar begins to pass on a burnt taste to the syrup. Checking the correct sugar content by using a refractometer. Checking the correct fill and weight before sealing the bags. Use 400 gauge polypropylene bags as they provide greater protection against moisture.

AMLA CANDY Amla candy is form of Amla which is coated with sugar, honey or flavourings like saffron or cardamom. Children who do not like to eat Amla can eat Amla candy happily. Amla contains many nutrients, it is abundant with Vitamin C and is beneficial for our body no matter in what form it is eaten. Amla strengthens our digestive system and it increases the resistance power of our body. It is also used in the making of 8

many herbal medicines. Eating Amla regularly will help you maintain good health.

Benefits : Improves the bodys resistance against diseases Gives relief in cases of stomach and digestion problems Strengthens heart and brain activity Promotes healthy functioning of the cardiovascular system Regenerates bodily tissues through high levels of antioxidants Increases the production of red blood cells Improves sight functions Is beneficial for hair growth

Organization Structure

Managing Director Personal assistant Marketing & Sales department Logistics department Financial Department

Workers

Documentation department

Note: There will be 10 workers and 2 watchman.

Product
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Name Amalaki Amalaki

Contents 50 gms 250 gms

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Packaging
The link between food packaging and consumer protection is of high significance. A package is a vehicle of safety and achieves the objective of delivering safe, wholesome, nutritious food to the consumer. To safeguard the interests of the consumer and the society at large, Packaging Laws and Regulations have been introduced by the Government.

The products will be packaged in two different sizes which will contain 50 gms and 250 gms, which will be packaged in food grade Polypropylene bags which is known as heat-sealable and provides greater protection against moisture and air or Static Shielding bags which help keep the contents protect against moisture.

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Corrugated boxes will be used for further packing the products which initially in mini box and later will be packed in a master box. the master box will contain all the details like box dimensions, importing company name etc

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Pouch Sizes: Weight 50 gm 250 gm Corrugated Box Sizes: Name Mini Box Dimensions 30.5x 19x 10.5 cms 14 Dimensions (w x l) 4 x 6 inches 5 x 6 inches

Master Box

63x 40x 23 cms

Analysis of the Exporting Country

The Export of Indian Gooseberries (Amla Candy) in the Brand name Amalaki will be carried out in Slovakia and Czech Republic. The various reasons made us select these countries are Slovakia is a high-income advanced economy with one of the fastest growth rates in the European Union. It joined the European Union in 2004 and the Eurozone on 1st January 2009. Slovaks are associated by the highest percentage of Cardiovascular diseases and heart related deaths (according to 2011 OECD) in Europe and the highest in the world. Forecasts says that the Slovak economy the 3rd highest GDP growth in the EU-27 for 2007. The GDP per capita in Bratislava (the capital) is three times higher than in the poorest provinces of the country. In fact, it is 30% above EU average, and second in Eastern Europe only after Prague. In 2010, Slovakia grew by 4.0% which was the highest growth among EU member states. The minimum wage in Slovakia is set at 307 per month, and the average salary for year 2010 was 769 per month. 15

Reasons for Exporting

Firstly the Client (Everest Ayurveda) to whom we are exporting the Amla candies is basically is a czech-slovak-nepalese company which, in agreement with Indian tradition, spreads deeper understanding about ayurvedic medicine, healthy way of life, using Himalayan herbs and about inner dimensions of oneself.

Since the people all around the world is driving towards health conscious and it is also seen that these countries Slovakia and Czech Republic have a great potential. Although Amla (Indian gooseberries) are often considered for its high medicinal and nutritional value. Since it is not a medicine or a drug, but a

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processed crystallized fruit, which does not contain any harmful substances and be consumed as a snack after food or so.

However, the economy structure of these is doesnt look much appealing but an effort can be made through which the people of these countries can be educated and given knowledge about the nutritional value it contains.

Capturing the untapped market, although there are competitors in these countries offering the similar kind of products, the pricing also has been kept low so as to enter the market. There is a potential demand for Amla Candy in Slovakia and Czech Republic. Amla candies are like dry fruit and are consumed by all categories of population.

Usually people from Slovakia and Czech Republic prefer eating Amla candy because it excellent for teeth, gums, bones as well as skin blood etc. Hence increase in the consumption to get nutritional benefits it will result into more Demand for Amla candy.

Competition
Major competitors from India who export to East European Countries are

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Kamdhenu Foods Mr. Tanmay Shah (CEO) 'Matruchaya' Mulla Wadi Opp. Anand Nagar Society Valsad - 396001, Gujarat, India Mobile: +(91)-9974123838 +(91)-9974124040 Telephone: +(91)-(2632)-253066

Multi International Mr. Bheru Vyas No. 3, Sopan Complex, Near AMTS Bus Stand, Chandkheda Ahmedabad - 382 424, Gujarat, India

Email: bheru1978@yahoo.in Mobile: +(91)-9998177155 +(91)-9429129897

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Statutory Requirements required for Setting up the company

Certificate of Incorporation Import Export Code ( IEC ) o Documents required for making an application for IEC Number: Application form (in duplicate) Company profile (in duplicate) True copy of Income tax PAN account number. True copy of Sales Tax Certificate. Government fees. Bank certificate as per format. Full address of branches in India and Abroad (if any) Three passport size photographs duly signed on the reverse. SSI Registration copy duly certified. Declarations in duplicate. Memorandum of Association Articles of Association Registration of the company An application form has to be filled along with a fee of Rs 300/- has to be paid together with the above said documents. The IEC number is then allotted in 15 days period. MOA, AOA and Registration of the company: These documents will be prepared by a legal representative and the Directorate of Industries Trade and Commerce provides the maximum help in doing the same. 19

 Certificate of origin To get the Certificate of Origin an indemnity bond has to be made on a Stamp paper of Rs. 100/-. Along with is an application form has to be attached and also copy of an invoice. This certificate is issued by the Chamber of Commerce. The fees structure is as follows. Criteria Up to 5 Lakh Up to 75 Lakh Amount Sum of Rs 250/Sum of Rs 500/Sum of Rs 1500/-

Above 75 Lakh

Documents and Certification required for Export of Amla Candy

is an important registration IEC Code: IEC number required by an exporter/Importer. No international trade can take place without this number. This is issued by Director General of Foreign Trade office in India. It is a permanent number and has no expiry date. It is valid both for imports and exports. It is valid for all products.IEC is of ten digits. Registration with Food and Drug administration (FDA) Registration with Export Promotion Councils(EPC): The basic objective of EPC is to promote and develop exports of the country. Each council is responsible for a particular group of products, projects and services. The EPC keeps track of the trends side by side and opportunities in international markets for goods and services, and assist their members to take advantage of the opportunities. 20

 Invoice: It is a fundamental and basic document. It is prepared by an exporter and sent to the importer for necessary acceptance. An invoice gives an idea to the buyer of all the terms and conditions of an invoice. It contains the name of the exporter, importer, consignee, and description of goods. It is required to be signed by an exporter or his agent.

Packing list : It is a consolidated statement in a approved format detailing how goods are packed. It is an useful document for customs at the time of examination, and for the warehouse keeper of the buyer to maintain a record of the inventory. The packing list will have many details which are common as in the invoice but it does not specify the unit rate and the value of goods.

SDF (Statutory Declaration Form): A document submitted to customs authorities by exporters verifying that shipping bills are accurate and complete. An exporter confirms on form SDF that the amount paid by the buyer is the same as the full export value stated on the shipping bill. CENVAT Declaration (duty draw back) Export Value Declaration:

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 ENS Declaration Purchase Order : PO is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier constitutes a legal offer to buy products or services. Acceptance of a purchase order by a seller usually forms a contract between the buyer and seller, so no contract exists until the purchase order is accepted. It is used to control the purchasing of products and services from external suppliers. Certificate of Origin: This indicates that the goods which are being exported are actually manufactured in a specific country mentioned therein. It is useful for the clearance of goods from the customs authorities of the importing country. Normally, this certificate is issued by the Chamber of Commerce. Fumigation Certificate The Fumigation Certificate, in respect of international shipping of sea freight, also referred to as a 'pest control certificate' is the proof that wooden packing materials used in international sea freight shipping e.g. wooden pallets and crates, wood, boxes etc have been fumigated or sterilized prior the international shipment.

Letter of Credit (LC):

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It is an arrangement wherein a Bank (SBI) guarantees on behalf of the buyer to make payment to the seller, upon presentation of documents specified in the LC.

Regulations of the Importing Company

Import Licence Bill of Lading: This document is issued by the Shipping Company or its agent. It acknowledges receipt of goods mentioned in the bill for shipment on board of the vessel. It is also an undertaking to deliver the goods in the like order and condition as received. It is generally made out in sets of three originals all duly signed by the master of the ship or the agent of the shipping company. All original Bill of Lading should bear Stamp Duty. Extra copies of Bill of Lading will be marked as NON NEGOTIABLE COPY and are only issued for record purposes. These copies cannot be used for taking delivery of goods.

Shipping bill: Shipping Bill is document required to seek the permission of customs, to export goods by sea/air. It contains a description of export goods, number and kind of packages, shipping marks and numbers, value of goods, name of the vessel, country of destination etc.

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Marketing and Sales Promotion

To carry out various marketing and sales promotions in Slovakia and Czech Republic it will be very difficult since there is a huge gap of different barriers such as language, lifestyle, habits etc. Therefore to conquer this barrier we will register our company (Emblica Exports Pvt.ltd) with APEDA (Agriculture Processed food products Export Development Authority) & Registration with Export Promotion Councils. Assistance is provided regarding development of website advertisement, Knowledge of packaging is given so as to manage on packaging and ensure safety of goods and also the quality of the product. Export Promotion Councils(EPC):EPCs are non-profit, autonomous, professional bodies. They provide commercially useful information to their members. They also offer professional advice in areas such as technology upgradation, quality and design improvement, standards and specifications, product development and innovation. It also organizes visits 24

abroad to explore market opportunities. It ensures participation in trade fairs, exhibitions and buyer seller meets. It also helps in promoting interaction between the exporting community and the Government both at the Central and State levels. Promotions through Internet i.e. B2B websites for e.g. www.alibaba.com, having website that will help build up contacts and also allow potential customers to be aware of the same. Creating own website that is visible to all the people around the world, where one can go through the product details etc. Events Sponsored by APEDA: APEDA allows participation in trade fairs, exhibitions, events for promotion of the products and also sponsors the same. So also the publicity and promotion through preparation of product literature, publicity material, advertisement, film etc. is done by APEDA. Activities like buyer-seller meet, product promotion, exchange of delegations, participation in exhibitions/fairs/events etc are also promoted by APEDA

Subsidies
Starting of the Business The Directorate of Industries Trade and Commerce (DITC) is responsible for the promotion, development and regulation of Micro, Small and Medium Enterprises/Industries within the State of Goa. In addition to this, DITC also plays a major role in facilitating and coordinating activities related to industrial development. DITC Benefits provided by government

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25% give back of our actual cost which we have incurred for starting up the company. Tax exemption for 5 years so as to help us stabilize our business.

Bank Details for Letter of Credit: StateBank of India Pajifond Branch Margao Goa

Segmentation Targeting and Positioning

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The segments to whom we have targeted are the people who want nutritional value (vitamin C) and the school going children who can consume it and enrich their vitamin C.

Positioning: Our Amla candy will be positioned as healthy candy with perfect health.

Positioning Statement: Eat healthy and be healthy

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Production Process:

Collecting

Cleaning

Sorting

Shredding

Boiling & Draining

Washing

Soaking

Draining

Sun Drying

Packaging

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Production Process:
Collection In this phase, the raw Indian Gooseberries (Amla) are procured from Banaras which is also known as Varanasi or Kashi, which is a city in Utter Pradesh. Due to the superior quality, colour, size and taste, these gooseberries are considered best with regards to its features.

Cleaning Once the collection of raw Indian gooseberries is done, they are cleaned which means where the unwanted particles like stones, leaves etc are removed. In this phase immature, damaged and diseased fruit is removed.

Sorting Sorting is a process whereby the gooseberries are sorted based on their qualities according to their size, weight, colour and maturity. This is mostly used so that the gooseberries are of uniform size, and based on their sizes and colour their characteristics differ.

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 Washing Once the gooseberries are cleaned, they need to be further washed in chlorinated water so that the hygiene and quality is maintained. Boiling & Draining In this phase, these gooseberries are boiled for 5-6 minutes and later drained. Once they are boiled, they are cooled down and drained so that it is ready to go for shredding process.

Shredding In this process, the gooseberries are cut into uniform sizes and the seed is removed with the help of machinery (amla shredder). Once after this is done, the cut pieces are once again sorted based on the sizes if any Soaking In this process the cut gooseberries from the amla shredder is taken to soak in syrup made from rock sugar and honey. Here they are soaked for in the syrup for 24 hrs so that the bitter strong taste of amla is overtaken by sugar and honey.

Draining Once they are soaked, they are drained from the syrup and are ready for drying in the sun. Normally draining can be done manually by using big spatulas with the help of the work force or the same can be done by using machinery. Sun drying 30

Once the gooseberries are drained they are preceded for sun drying, Sun drying refers to spreading these fruits on mats or polythene sheets on the ground, or by constructing a raised platform and covering the frame with mats under the bright sun for 3-4 days. This can also be done in mechanical way also, which can be done by either using solar dyer or mechanical tray dryer, or electrical tray dryer. But in this case the most effective way is drying under the bright sun. Packaging Once the drying process is done, the final product is packed in plastic pouches which are made up of material called Polypropylene which is known as heat-sealable and provides greater protection against moisture and air or Static Shielding bags. And thereby making it ready for transportation

Process:

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Loading of the goods

Shipping

Unloading of goods from the vessel

Transportation

Unloading of Container to the vessel

Delivery of the Goods

Unloading of the goods

Transportation

Packaging & Storing

Loading of goods into Container

Suppliers analysis
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The raw amla( Indian gooseberries) is procured from Banaras from the farms and then later transported to Lonavala for further processing the same. After the processing is done it is later brought from Madal Bal Exports Pvt Ltd. where they do exports to Denmark of textiles, bedcovers, clothing and handicrafts. Manufacturer Details
Madal Bal Goa Exports Pvt.Ltd. Lane 1 ,St.Mary's Colony. Miramar, Panaji. GOA 403001 Telephone:+91 (832) 2465942

Transporter Details
Rajesh Roadways Samadhan Apartment, Station Road, Opposite Crunet Ice Factory, Station Road, Margao, GA 400802
0832 271 4312

Packaging Detials Ace Packers P No 28,Bethora Industrial Estate Road, Bethora, Ponda, 403401 Rajiv Kala Mandir Road, Shanti Nagar, Kurtarkar Nagari, Ponda, Goa 0832 233 0712

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Client Details
Name of the Company: Everest Ayurveda Everest Ayurveda s.r.o. is a czech-slovak-nepalese company which, in accordance with Indian tradition, spreads deeper understanding about ayurvedic medicine, healthy way of life, using Himalayan herbs and about inner dimensions of oneself. In Czech Republic and in Slovakia, the company was established in 2004 in cooperation with Nepalese ayurvedic doctor Dr. Ka Dev Jha. The objective of this company is manufacturing, import and wholesale activity of traditional ayurvedic products from Nepal and India together with Japanese fragrance mixtures (incense). Everest Ayurveda s.r.o. has its headquarters in Prague, Czech Republic, branch office in Bratislava, Slovakia, and manufacturer of herb products in Kathmandu, Nepal. The company also exports to other European countries.

Company Head Office:

Address:
EVEREST AYURVEDA, s.r.o. Lomnickho 812/6 Praha

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140 00

Czech Republic Contact: Tel.: +420 241 404 004

Contact Name: Kritartha Brada

tel. 00420 604 609 110

e-mail:k.brada@everest-ayurveda.cz

Pricing Strategy:
The pricing of the product will be charged in Euro, since Slovakia and Czech Republic are East European Countries and have potential to buy the products. The pricing strategy breakdown is following: Cost Transportation cost Labour cost Profit Price (Rs) 50g 31 250g 155

0.806467 0.806467 8.645533 8.645533 40.452 10.548 51 164.452 65.548 230

FOB Price(Rs)

The currency rate of US Dollar and Euro as on 18th January 2013 Rate of exchange of one unit of 35

Foreign

foreign currency equivalent to Indian

Currency (1)

rupees (2) (3) (a) (b)

(For Imported 1. EURO Goods) 73.60 55.25

Goods) 71.75 54.25

(For Export

2.

US Dollar

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Cost of starting the Company: START UP COST PARTICULARS Registration of Company Panchayat IEC Code Registration Fees Chamber of Commerce PAN Card Registration of the co. Export Inspection Agency Export Promotion Council OFFICE Building (Deposit of office building in advance) Telephone computers Broadband Printer Air Conditioner FURNITURE AND FIXTURES Chairs Tables Capital bought into business (@100000 each) Initial Outlay TOTAL 5000 360 8000 250 300 650 25000 120000 1000 11000 2000 12000 30000 22000 130000 367560 400000 32440

Salary Calculation
Salary Structure Assistant Accountant Marketing & Sales Logistics Documents Workers (300*10) Watchman 8500 10000 8000 5500 6000 3000 6000

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Total

47,000

Income Statement for the year 1st April 2013 to 31st March 2014

Income Statement Particular Sales COGS GP Operating exp Salary Electricity Maintenance Advertisment Water bill Rent Traveling exp Printing and stationary Telephone bill Broadband Transportation Cost Insurance PBT Tax @ 30% PAT Amount 28446336 18588096 9858240 546000 30000 60000 150000 6000 240000 180000 36000 18000 9000 5897467.2 442685 2243087.8 672926.34 1570161.5

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Bibliography
www.madalbal.com http://www.agriculturesource.com http://dfda.goa.gov.in http://www.fao.org

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