CIG- Product Manual

need someone to come in and show how to set up an export program. Export Management Consultancy
Companies are an answer to that.

12. Export Planning

Import export businesses, also known as international trading, are one of the hottest commercial trends of
this decade. While the principle sources of income for these firms are their import-export sale activities,
their import-export objectives are not divorced or totally distinct from their domestic objectives. The vision
statement of such a firm like every firm has to be outlined from the firm’s current mission statement and
business objectives. The mission statement outlines in broad terms what the purpose of the company is,
while the company objectives set more specific targets usually for a period of time.

Based on the initial company mission and objectives, the next step is to expand the firm’s mission statement
and company objectives to accommodate the fact that it plans to export. This can be done by setting
separate export objectives which will expand the current business objectives. An international business
focuses on the resources of the globe and objectives of organizations on the global business opportunities
and threats, in order to produce, buy, sell or exchange goods/services world-wide. The international focus
and reach of its distribution network is a special strategic consideration. The intent is to extent global
market reach through stronger capitalization and economies of scale. Export objectives still need to be
developed based on what a firm has set for its company in its mission statement and list of objectives
consistent with the following parameters:

1. To achieve higher rate of profits. The basic objective of business is to achieve profits. When the
domestic markets do not promise a higher rate of profits, business firms search for foreign markets that
hold promise for higher rate of profits. Thus, the objective of profit affects and motivates the business to
export to expand operations to foreign countries.

2. Expanding the Production Capacities beyond the Demand of the Domestic Country. Some of the
domestic companies expand their production capacities more than the demand for the product in
domestic countries. These companies, in such cases, are forced to sell their excess production in foreign
developed countries.

3. Severe Competition in Home Country. The weak companies which cannot meet the competition of the
strong companies in the domestic country start entering the markets of the developing countries.

4. Limited Home Market. When the size of the home market is limited either due to the smaller size of the
population or due to lower purchasing power of the people or both, the companies internationalize
their operations.

5. Political Stability vs. Political Instability. Political stability does not simply mean that continuation of the
same party in power, but it does mean that continuation of the same policies of the Government for a
quite longer period. It is viewed that the USA is a politically stable country; countries like the UK, France,
Germany, Italy and Japan are also politically stable. Most of the African countries and some of the Asian
countries are politically instable countries. Business firms prefer to enter politically stable countries and

are restrained from locating their business operations in politically instable countries. Infact, business
firms shift their operations from politically instable countries to politically stable countries.
6. Availability of Technology and Competent Human Resources. Availability of advance technology and
competent human resources in some countries act as pulling factors for business firms from the home
country. The developed countries due to these reasons attract companies from the developing world.
7. High Cost of Transportation. Initially companies enter foreign countries their marketing operations. The
home companies in any country enjoy higher profit margins as compared to the foreign firms on
account of the cost of transportation of the products. Under such conditions, the foreign companies are
inclined to increase their profit margin by locating their manufacturing facilities in foreign countries
through the FDI route to satisfy the demand of either one country or a group of neighboring countries.
8. Nearness to Raw Materials. The source of highly qualitative raw material and bulk raw material is a
major factor for attracting the companies from various foreign countries.
9. Liberalization and Globalization. Most of the countries in the global have liberalized their economies
and opened their countries to the rest of the globe. These changes in policies have attracted
multinational companies to extend their operations to these countries.
10. To increase market share. Some of the large-scale business firms would like to enhance their market
share in the global market by expanding and intensifying their operations in various foreign countries.
Smaller companies expand internationally for survival while the larger companies expand to increase
their market share.

A draft of the export objectives of an international trading firm can look as follows:

1. To embark on an export drive that will enable the company to establish a presence in atleast two
countries in the first year and expand this to ten countries over the coming five years

2. To commit 5% of the firm’s production to exports for the first year and to expand this to 20% within five
years

3. To establish committed partnerships with representatives in the selected target countries that will
effectively represent the firm’s products in each of the target area concerned

4. To establish an effective and efficient export department that will help to administer the export
activities of the firm

5. To work towards becoming internationally competitive and to establishing a global brand that will
underpin both domestic and international business activities

Export objectives such as these, as an integral part of the vision of an international trading firm, provide a
series of measurable targets and focus on committing the firm to its export endeavors. Accordingly, a firm’s
export plan is formulated encompassing the marketing strategies and activities that are necessary to achieve
these objectives. The firm can export, import, enter into third country transactions, barter or countertrade,
or conduct switch trade. The decision is related to those activities that will make the business profitable and
fit in with the firm’s overall objectives.

Today, more and more companies are making strategic decisions and entering the international game with a
well-though-out plan. This plan is developed from gathered intelligence in pursuance of a clearly laid down
object. International trade takes time and progress has to be measured against the firm’s vision or long-term
objectives.

12. Role of Customs

Custom Department is a government-designated authority that implements policies related to export and
import, collects custom duties and facilitates the movement of people, goods and cargo into and out of the
country. Any organization that is engaged in Exports and Imports would require the service of a Custom
clearance officer. It is important to note that custom clearance involves preparation and submission of
documents required to facilitate exports out of the country.

The principal role of Custom Department includes:

- To exercise customs control on the commercial international exchange
- To assess and collect custom duties and taxes
- To fight against smuggling activity and counteracting customs fraud

Customs & Trade Facilitation

Since the custom department is responsible for an accurate, predictable and speedy movement of goods
across the border, it facilitates trade. The trading process becomes simplified, standardized (for everyone)
and modernized due to the custom department’s credibility. The department in every country aims at
developing a consistent, transparent and predictable environment for international trade transactions. More
so because it is based on internationally accepted norms and practices, custom departments encourage fair
trade practices and help in successful integration into the world economy. An efficient custom department
ensures direct benefits both to the Government and to the Business community. These benefits include
increased economic efficiency, better security, faster delivery of goods and reduced costs.

Areas of Operations and Authority

Customs Department services operate at all seaports, airports and border gateways, which define the exit
and entry points for people and cargo movements into and out of the country. The custom department is
empowered by the government to make arrests and confiscate goods.

Customs and Logistics

Every country has its own Foreign Trade Policy, which stresses on the conditions under which goods and
services are eligible to be exported or imported. The role of the custom departments is to implement the
provision of the policy under customs rules, regulations and tariffs.

All the exports made from domestic country are imports in another country and while many countries may
allow free import, in others it may be permitted with due licenses. Many items are also published as banned
for import and not allowed entry into the country. All the items that have been exported from the domestic
country to the new foreign market will have to be custom cleared in the new market. This is applicable to all
trade and business establishments including government and defense agencies. More often than not,
necessary duties would have to be paid before the goods are released by Customs.

When a business exports in a massive quantity through any point of entry, the foreign country’s custom
department warehouses the cargo at the Customs bonded area until it is released after clearance.

Custom Clearance

Custom Clearance involves submission of documentations that are required to facilitate export or imports
into a country, customs examination, assessment and payment of duty and taking delivery of cargo from
customs after clearance along with documents. To complete this process, shipping documents are required,
the type of which depends on the type of goods that is being imported and exported. In many cases the
documentation may also vary depending on the country of origin or destination. Thus, it is important to be
knowledgeable of the documents that need to be prepared, as they may need to comply with the
requirements of the import or the export country.

Some of the documents that are involved in Custom Clearance are:

(a) Exports Documentation: Purchase order from Buyer, Sales Invoice, Packing List, Shipping Bill, Bill of
Loading, Air Way Bill, Certificate of Origin and any other specific documentation as specified by the
buyer or as required by financial institutions or as required by importing country regulations and
foreign trade policies

(b) Import Documentation: Purchase Order from the buyer, sales invoice of supplier, Bill of entry,
Packing list, Certificate of Origin or any other specification documentation required by the buyer, or
the importing country regulation.

To keep it simple, as a standard rule of thumb, a standard importing or exporting transaction necessarily
requires a commercial invoice; quarantine packing declaration, packing list, Bill of lading and an insurance
certificate. Thus, the custom clearance for commercial cargo involves ‘clearing’ of goods through the custom
barriers for importers and exporters (usually businesses) through the preparation of documents, calculation
of taxes, duties and goods and service tax.

It is very important for every exporter and importer to be aware of the basics of the import export policies
of their targeted foreign market as well as conditions that will be applicable to the product that the business
chooses to export.

Clearance Process at Customs

The Clearance Process at Customs is standardized and follows a set pattern.

- On arrival of the cargo at the Custom entry point, the custom carries out physical inspection and the
valuation of the import (the export of a business). Valuation of the import consists of ascertaining
the correct description of the items, classification of the items under the Customs Chapter and
Tariff, and determining if there is any under invoicing and simultaneously certifying the custom duty
that needs to be paid.

- After the valuation of the import has been carried out, the clearance agency proceeds to coordinate
with the importer to make sure that the necessary custom duty payments are made.

- After the custom duty payments have been made, the clearance agency takes the delivery of the
Cargo and delivers it to the importer at the designated place along with the set of original
documents.

- In addition, the Custom departments permit a free warehousing period of three to seven days
(depending on the country to which the export/import has been carried out to). Generally, sea
shipments are given seven days of free warehousing in Customs bonded warehouse while the air
shipments are given three days.

- The importer needs to clear the cargo within the free period, failing which a daily surcharge is
charged on the consignments for all days up to the time of actual delivery.

Along with performing these roles, the Custom Department is responsible for other series of responsibilities,
which include:

- Protection of national industry against trade in goods which could adversely affect the competition
in the country

- Protection of natural environment and flora and fauna against entry of hazardous substances and
illegal predatory circulation

- Protection of the society against the entry of goods, items or appliances which are hazardous to life,
health and safety of citizens

- Protection of the state against the loss of cultural heritage
- Control in the area of state’s customs policy instruments regulating the targets and volumes of

international markets
- Enforcement of national and international regulations relating to the prohibitions and restrictions in

the international trade, enforcement of agreements, etc.
- Maintaining foreign currency control and combating money laundering

Thus, the custom department has a very important role to play in the export process of any business. The
business needs to be thoroughly aware of the custom department’s role and responsibilities along with its
own to make the export import process easier.



Full Service Export Management

Export management is the application of managerial process to the serviceable area of exports. It is the form
of management which is required to bring about coordination and integration of all those involved in an
export business. It is, thus, concerned with securing export orders and accomplishing objectives to
successfully complete in time as per the requirements specified by the overseas buyers. The main purpose is
to secure orders to make certain timely delivery of goods as per agreed norms of quality and other
specifications including terms and conditions agreed to between the exporter and the importer.

The entire export management process revolves around reviewing a business’s export transaction and
processes and creating a manual that will include the following administrative elements: management

policy, responsible officials record keeping, training, internal reviews, screening elements, notification, and
order processing.
STEPS IN EXPORT MANAGEMENT PROCESS
The long-term nature of export market development efforts, together with the risks assumed implies that a
planned methodical approach to exporting is imperative. To reduce uncertainty and risks, the exporter must
set objectives, analyze strategic alternatives, formulate action plans, allocate resources, set time-tables and
monitor performance. Without a formal approach as ensured by an efficient export management system,
the enterprise cannot sustain a profitable export effort. An export management process essentially involves
the following steps:

Figure: Flowchart on Export Management Process
In addition to the steps outlined here to be followed are, to develop a plan that will be of practical aid to the
company, not only in charting a course for the business, including export and keeping it under control but
also in dealing with banks and other agencies who may want to know what is intended to be done with their
money.
When a company decides that it is ready to export, it must formulate an export strategy. Strategy
formulation is at the core of export management. It tells the firm where it is going and how it should get.
When a strategy has been formulated, programs must be delivered for each strategic element. A company
strategy is in effect a blueprint for competing on target export markets. An explicit export strategy provides
a unified sense of purpose, to which the staff of the enterprise can relate. In the development of such
strategy, import regulations and other trade barriers must be taken into consideration, as they have a
critical impact on the outcomes of the export venture.
To implement a strategy, an export-marketing plan is required. Business-to-Business marketing is the key
here. The marketing strategy chosen should reflect the answer to the following key questions:
Should the company enter the export market in a big way?

Are low prices essential for success?
Will product difference play a major role in competitive positioning?
Will a large-scale promotional campaign be required?
The strategy chosen should reflect the management’s judgment of the most effective ways of overcoming
the problems and exploiting the opportunities identified by SWOT analysis. An Export Marketing Plan
consists of the following elements:

The marketing strategies cover a broad range of issues, including:
The choice of export market
Identification and choice of importers/agents/distributors
Distribution adaptation
Packaging, labeling, branding
Adding value to the basic product
Use of trade fairs/shows as promotional tools
Export financing
Administrative procedures for exports
Negotiation of contractual terms and conditions
Export Market Research
The export marketing plan and the export strategy are closely interrelated with the former answering all
questions on how the latter is to be implemented and directing the enterprise to the attainment of the
strategic objective. As the various steps are put into action, there is a continuous interaction between the
two. The development of export marketing plans requires decisions on the role that exporting is to play in
the company’s growth, the scope and nature of product ties and markets abroad, precise export

performance goals and level of management commitment to the export venture. A plan is only as good as
the quality of the basic data gathered and the analysis undertaken during the planning process. It is
important to obtain the participation of all levels of management in this process and to impress upon them
that; to succeed company-wide commitment to export goals is essential.

ROLE OF AN EXPORT MANAGER

An export venture is more likely to succeed when a key person in the enterprise is assigned the export task.
To develop an export business, the primary role is that of an export manager in conducting the export
business. The traditional management structures with functional classification (Purchases, marketing,
finance, accounts, administration etc.) cannot ensure effectiveness in export management through all stages
in the export cycle. There is, therefore, a need for separate export department headed by an export
manager. The basic function of an export manager is to bring about coordination and integration of all those
involved in the export transaction from within the traditional management structures (functional
organization) and concerned external agencies to ensure timely shipment of goods as per buyer’s order.

The export manager has the critical role in managing all operations in a timely manner. Once a decision is
taken to establish export business, the first and the foremost task is to plan to secure an export order. After
confirming the order to the buyer, the next step is to create an organization structure for it and create the
required team of personnel for its execution. The success of the export order depends on export manager’s
efficient management and handling of export orders. He has to maintain liaison with the importer, prepare
plans for its implementation and issue necessary executive instructions to the export employees. He also has
to develop an information system so that there is continuous flow of information on the progress of the
order. In case the progress is not satisfactory and some tasks are not performed as per prescribed schedules,
export managers have the duty to evaluate the variances and tasks suitable corrective measures, if
necessary, for the purpose and ultimately submit report on the progress of the work to the top
management. The major functions of the export manager in managing orders here are: procurement of
export order, planning for export order execution, direction for exports, export order execution, importer
liaison, export order evaluation, reprogramming, documentation, and reporting on export order execution.
In the pursuance of it, the manager can play a combination of roles as change agent, motivator, resource
person, organizer and so on. He should have knowledge of the techniques applied in export planning,
financial management, inventory management, merchandising, risk management, foreign exchange
operations, exchange control, negotiation with banks information systems, communication, personnel
management and industrial relations, co-ordination and control. The effectiveness of export manager will,
however, depend upon the extent of authority delegated to him by the top management.

Exporting requires expertise, in addition to careful planning and suitable products. Managers sometimes
underestimate the complexity of tasks, the risks involved and consequences of failure. A realistic
understanding of the commitment required to succeed in an export venture is essential for a successful
export management process. Good export management gets the export order completed within the time
and the budget allocated for it.

Freight and Supply Chain Management

Supply chain management (SCM) is the management of the flow of goods and services. It includes the
movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin
to point of consumption. The Supply Chain is no longer limited within country borders but has now
expanded to encompass all nations thus making, exporting an important activity of globalization. Supply
Chain management incorporates the movement of materials from the vendor through the manufacturing
process to the final consumer. The supply chain focuses on vendors, manufacturers, intermediaries,
distribution agents, storage, logistical services and finally the customer. India is soon to become an
important economic power in this context.

The global supply chain management is becoming more complex and businesses that intend to export to
new foreign markets need to adapt to this change and integrate these changes into their supply chain
strategies. Businesses that have traditionally operated only within their domestic and regional boundaries
may at times feel ill equipped to expand globally. This may involve not knowing how to manage vendors,
distributors and logistics in a new country. When expanding internationally, this will be an important risk.
Businesses need to assess the cross cultural and economic risks associated with expansion and these
barriers and risks can be mitigated by using local agents to sell the products or by licensing their products.
Businesses need to have sufficient experience in international product sourcing, negotiating purchase
agreements, and managing the transportation logistics of importing and exporting goods internationally.
Efficient global supply chain managers should be skilled in:

Sourcing products in a global marketplace

Creating transportation logistics

Managing inventory levels

Conducting effective international negotiations

Building relationships with international partners

Most business do not have the required experience to sell products outside the domestic market. Therefore,
it is very important for them to be knowledgeable of the supply chain management and the facilitators who
can help them expand with ease. Regardless of their industry, business leaders know that much of their
organization’s success depends on having effective and comprehensive logistics management services. The
two components of logistics management service include:

Freight Services or Freight Forwarder Services

Storage services or Warehousing services

When a business decides to expand internationally, it foresees a growth in the sales of its products or
services. When the sales go up, companies need to be prepared to quickly move the products or materials to
capitalize on the growth. If the growth begins to drop, the organization requires capitalizing on its
warehousing options. Increasingly, the ability to maintain supply chain is centered on Freight Services and
Warehouse management systems. These networks are of prime importance for they connect stores,
factories, warehouses and even trucks into a centralized database that provide decision makers with
information about the storage and movement of goods.

As supply chains become increasingly complex, the visibility offered by the warehouse services and the
freight services allows the firm to maintain control of their inventory. Data analysis and other tools can
provide insight that allows the business to minimize the risk of inventory loss and risk of delays.

Therefore the two important supply chain services that determine how efficient the export processes are:

Freight Forwarders: The primary task of Freight Forwarders is concerned with organizing transportation for
companies and to combine smaller shipments to create a single large shipment so as to minimize shipping
costs. Companies should use freight forwarder to avail cost benefits, as it will be cost effective in
comparison to their product being shipped independently. Also, the freight forwarder provides other
services which are beneficial to the exporting company which include documentation, payment &
appropriate carrier selection. Freight forwarders play a very important role for exporters:

Transshipment

Packing, Warehousing and Distribution

Arranging Cargo Insurance

Documentation and Custom Clearance

Payment of Freight and Local Taxes

Transportation Distribution Analysis

Transport Arrangements

Warehousing/Storage Facilities: Warehousing facilities play a vital role in the overall supply chain process as
they hold goods for moderate to long periods in an attempt to balance supply and demand for the business
and its buyers. It is evident that continuing globalization and challenges occurring in such areas as reverse
logistics, environment sustainability, and information technology and overall supply chain integration are
evolving roles and responsibilities for warehouses. Warehouse operations contribute to the overall total
cost of managing a supply chain such as the tradeoffs between warehousing costs and services to that of
other critical functions. Value is provided through:

Storing products to fulfill customer demand and protect against uncertainties in demand and lead time

Providing customers with product assortment

Postponing or delaying in inventory commitment to form or location until demand is better known

Achieving low total cost and improved lead-time through consolidating multiple orders

Reduced lead-time through cross-docking

Sequencing materials and components from multiple third-party logistics (3PLs) providers for time-based
delivery to factory product lines

Performing light manufacturing, assembly and kitting

Most importantly, warehouses impact the receiving customer in many critical ways. Frontline warehouse
personnel may be the final customer service defense in ensuring product accuracy, quantity, timing of
shipment and delivery, accuracy of documentation and overall product condition all of which impact total
cost and customer perception of the brand.

Strategic importance of Warehousing and Freight Services

Operational efficiencies can make only marginal difference in otherwise cost inefficient strategic decisions

Well designed Supply networks provide long term competitive advantage

A good storage and freight service have a long-term impact on supply network options and logistics costs.

Because of the various complexities of the global supply chain, businesses can become successful in foreign
markets if they use the experiences of facilitators & intermediaries. Even though these services do add to
the addition cost to the price of the items being exported – they are necessary.

An international element to the supply chain can add a huge level of complexity to the entire process. As a
small business owner, the following tips can go a long way in streamlining and maintaining an efficient
international supply chain:

Full Team ahead. First step is to get all departments together to get the complete picture. Managing a global
supply chain affects not one or two departments, but the whole company.

Go to the Experts first. From the beginning, managing the supply chain requires retaining someone with
expertise in the international locations. A business needs a master in markets because it is important to
have someone who can help further develop the brand. For other small businesses, finding a business
consultant who specializes in that locations can help navigate everything from cost-saving transit options to
taxes.









know that a competitor is pricing a product below their normal pricing range (Product Intelligence).
However, when you also know that this company is planning on replacing this product with an entirely new
line of products (again Product Intelligence), the reason for their pricing action becomes clear. When this
information is combined with the knowledge that the company's board of directors has challenged the CEO
with growing market share (competitor intelligence) and that they have a strategic goal of entering into a
new market segment (again competitor intelligence), this information becomes much more valuable.

Knowing that a competitor has reduced pricing in order to prepare for the entry of a new product line in
order to gain share in a new market segment is valuable. But how valuable is this market segment, and what
will it take to be successful in the market segment? This is where Market Analysis and Market Research
comes in. By analyzing secondary data regarding the market, market share trends, and other market data
one can understand whether this is a segment that will 'fuel the competitors' growth, or whether it will be a
drain on their resources (Market Analysis). Market research provides tailored insight into the key customer
requirements, loyalty of customers to existing vendors, and other factors, which will impact a firms potential
for success in a new (or existing) market segment.

So what does it take to deliver world-class market intelligence? There are four key ingredients for a world-
class market intelligence organization.

 Data sources and field resources
 Analytical skills and processes to pull the data together
 Technology foundation and platforms to deliver, store, process, and distribute the information
 The support of, and access to top management

Data gathering and field resources are the foundation for any Market Intelligence organization. This is the
set of individuals, processes, and information services (often third party companies such as IDC) that provide
the basic data on product shipments, competitor profiling, and other data relevant to the market. A world-
class MI organization finds ways to turn the entire organization into one large intelligence-gathering unit. By
the use of incentives, education, and existing information infrastructure (such as email) the entire
organization including sales, purchasing, finance, and development can become a source for gathering
competitive and market information. For example, one Fortune 500 Company offers its sales people a
monetary incentive to turn in competitive tips. As a result, the sales people are always on the lookout for
new products in customer sites and resellers locations. In some cases, these sales people have even
encountered pre-introduction beta or evaluation products in customer's sights. These ?first looks? at
competitive products can be invaluable in planning pre-emptive actions to attack new products from your
competitors.

However, gathering the data is not enough. Without rigorous analysis and insightful reporting, the data
remains simply.. data, it never becomes useful information. In order for Market Intelligence to be useful,
different types of data (market share, competitor product cost data, etc..) must be merged together into
information which is relevant to key decision makers and the decisions they are making. The ultimate test of
the data and the analysis is whether it provides the right information in order to let the decision makers
make decisions with confidence.

For example, reporting to the executive team that the company is gaining market share in a specific market
is important. However, that data is only marginally beneficial. It's true power is unlocked when it is
combined with information about competitor's actions, sales and channel activities that have resulted in
competitive advantages, and a succinct and accurate definition of all the other factors that are driving the
market share gains. And it will only be impactful if it is presented in a concise and well articulated report or
presentation.

Another key aspect is having the right information infrastructure to support the flow of information in and
out of the analytical team and to ensure that the ?data? is processed with as little manual intervention as
possible. For example, often times the data on market share provided by large market data providers such
as IDC or Dataquest is not in the right format, or is not defined in such a way as to be useful to the ultimate
marketing decision maker. It may be composed of product segmentation based on processor speed (in the
case of PC's), when the decision-maker uses segments based on customer types. In this situation, an
investment in developing a database to convert the data providers segments into the segments used by the
decision-maker is critical. Without this investment in automation, a very experienced Market Analysts must
spend considerable time making manual conversions using spreadsheets, pivot tables, and power point
slides! This is a very inefficient use of valuable market intelligence resources.

Finally, it is very critical that the Market Intelligence group has access to top decision-makers. This can be a
challenge for many reasons. Often this is due to the decision-makers believing that Market Intelligence has
little value relative to their own ?gut? instinct. Sometimes the Market Intelligence organization has
historically provided ?low impact? market intelligence and thus has little perceived value with the decision-
makers. And in the worse case, it can be the result of missed expectations in the past resulting in low
credibility for the Market Intelligence organization.

No matter what the current state of the Market Intelligence teams access to decision-makers is, it is possible
to improve the situation. And the more this situation improves, the better the Market Intelligence team will
understand the key decision-makers needs. This in turn, will result in better analysis and information being
provided to the decision-makers, which in turn will result in greater access to these same decision makers.

Creating boundaries for Market Intelligence. It is also very important to understand what Market
Intelligence is not. Market Intelligence is not a crystal ball into the future! While predictability is improved
with good Market Intelligence, there are far too many variables in the market place to ever provide 100%
accuracy into the future actions of competitors or customers / markets. It is also important to understand
that the Market Intelligence agency is not the decision making team. In fact, while the Market Intelligence
team needs to have an intimate understanding of the issue at hand, and to know the information needs of
the decision-maker, and even provide recommendations and potential outcomes based on those
recommendations, they should not be the decision maker. Why? Because, once they become the decision-
maker, they have a vested interested in the outcome and loose objectivity. One of the key functions of a
good Market Intelligence organization is the ability to monitor the firm's progress versus the market after
decisions are made in order to determine if mid-course corrections are needed.

A true-life example. In a recent assignment for a Fortune 500 technology company I was challenged with
turning a division level marketing research organization into a world-class market intelligence group. While
the marketing research team had a significant amount of talent, it was not seen as key to the divisions
business making process. By leveraging the existing talent within the team, investing in database
development and automation, focusing on key executive information needs, and reaching across
organizational boundaries to integrate all types of market intelligence sources, this division level research
team became the premier Market Intelligence organization for the corporation.

A few of the key actions that enabled this change are as follows:

 Ensuring that everyone on the team is sharing a common vision for what the Market Intelligence
group should be, what it should deliver, and what are the key focus areas for improvement. It is
important that the entire team is involved in this process, and that they feel ownership for the final
results. Our efforts in this area resulted in a very actionable mission statement, annual group
objectives, and the definition of career development paths. As a result, the entire team was bought
into the process and focused on achieving world-class status.

 We invested significant time and financial resources in building databases and tools to automate the
analysis process. In fact, at one point, one analyst spent about six months of full time effort
managing the development of these tools. This was a difficult investment to make since the team
was already understaffed. However, as a result of enabling these tools, we were able to go from

having 3 staff members spending 80% of their time in generating one global market share report on
a quarterly basis, to having 1 staff member and two interns spending 50% of their time in generating
42 highly segmented (and impactful) market share reports over the course of a year. As a result of
this significant productivity improvement, the team is able to spend significantly more time in
developing customized analysis, which is highly tuned to the executives needs.
 Our team began hosting worldwide / cross-divisional summits for the marketing research and
competitive analysis units within the corporation. These summits resulted in significant
collaboration across teams and a better flow of information and analysis. This improved the
information flows and the entire organization's analysis.
 During the early stages of this assignment, and on a regular basis thereafter the team would meet
with executives and internal clients to understand what information they needed, what they were
not getting, and what was working well. As a result of these meetings, and following through with
information tuned to the clients and executives needs, the team became 'the? source for market
information. From the board level, to other marketing intelligence teams, to the clients, this team
became the source for critical market information. In fact, this information gathering and analysis
process became a critical and required component of the decision-making process.

Over the course of three years this team transitioned from a very effective marketing research team to a
world-class market intelligence organization, which is a model and resource for the entire organization. In
fact, the team became so effective that they began driving corporate level issues such as developing a
corporate wide market-forecasting model, which is a foundation for the executive strategic planning
process.

Advertising Posting Services

Introduction:

Advertising is an important component of your marketing strategy. The aim is to promote your business and
communicate the information you want to send to your intended audience, usually with the aim of
increasing sales or making your audience aware of your products or services.

Until a customer deals with you directly and actually buys your products or services, your advertising may
help to form their first impressions of your business. Advertising can certainly attract new customers - but
only if it's done properly. Otherwise it can deter potential customers.

Importance of Advertising

Advertising plays a very important role in today’s age of competition. Advertising is one thing which has
become a necessity for everybody in today’s day to day life, be it the producer, the traders, or the customer.
Advertising is an important part. Lets have a look on how and where is advertising important:

Advertising is important for the customers

Just imagine television or a newspaper or a radio channel without an advertisement! No, no one can any day
imagine this. Advertising plays a very important role in customers life. Customers are the people who buy

the product only after they are made aware of the products available in the market. If the product is not
advertised, no customer will come to know what products are available and will not buy the product even if
the product was for their benefit. One more thing is that advertising helps people find the best products for
themselves, their kids, and their family. When they come to know about the range of products, they are able
to compare the products and buy so that they get what they desire after spending their valuable money.
Thus, advertising is important for the customers.

Advertising is important for the seller and companies producing the products

Yes, advertising plays very important role for the producers and the sellers of the products, because

Advertising helps increasing sales

Advertising helps producers or the companies to know their competitors and plan accordingly to meet up
the level of competition.

If any company wants to introduce or launch a new product in the market, advertising will make a ground
for the product. Advertising helps making people aware of the new product so that the consumers come and
try the product.

Advertising helps creating goodwill for the company and gains customer loyalty after reaching a mature age.

The demand for the product keeps on coming with the help of advertising and demand and supply become a
never ending process.

Advertising is important for the society
Advertising helps educating people. There are some social issues also which advertising deals with like child
labour, liquor consumption, girl child killing, smoking, family planning education, etc. thus, advertising plays
a very important role in society.

How advertising can help your business
Advertising can be anything from your shop sign or a website, to an advertisement in a trade magazine or a
30-second radio slot.

Advertising can:

· provide basic information such as your contact details and website address

· increase sales by telling potential customers about your product or service

· tell customers about changes to your service, new product launches and improvements

· increase your short-term sales with a specific one-off message - informing people of a special offer or a
particular benefit of your product

· prompt specific action - perhaps getting customers to visit your premises or website, or use a discount
voucher by a specified time
· remind existing customers about your business
· change people's attitudes and perceptions of your business
· help to create or develop a distinctive brand for your business to help you stand out from your
competitors
· make your business first choice for customers, ahead of your competitors
· generate awareness of your business
· develop a particular market niche or position
Advertising doesn't always need to be about sales and marketing. You can also use it to:

· recruit staff - a recruitment advertisement should also be a chance to promote your business
· source suppliers and contractors - this also helps to position your business as active and expanding

Target your customers
Decide whether your target audience is local or regional, national or international, or a mixture. Remember
that a local business might benefit from national advertising, particularly if it is looking to expand into new
territories.
You can advertise in a wide range of different media. Using a media mix can help to reinforce the message
or information you want to communicate.
Before selecting a particular type of media, you should find out from the media business and other
independent sources about their circulation or audience figures and what the audience penetration, or
'reach', of their product is. Basically, you need to know how many, where and who to. Figures can normally
be broken down into age groups, average income and other useful indicators.

B2B Working Principle

With globalization, international trade has become increasingly popular. Along with improved foreign
relations, innovative technologies, especially the Internet, have drastically changed the manner in which
different business operates. With this boom in e-commerce and Internet marketing, online Business-to-
Business (B2B) portals and marketplaces are becoming much more prevalent. B2B or Business-to-Business is

a commercial transaction between businesses, such as between a manufacturer and a wholesaler, or
between a wholesaler and a retailer. Thus, B2B portals act as a bridge between buyers and sellers, importers
and exporters, and offer them a common platform for availing a bundle of useful services.

Thousands of B2B marketplace websites are providing opportunities to manufacturers and suppliers to
promote their products online. These B2B websites help attract and generate buyers from international
markets as well. No matter whether one is an exporter or importer, manufacturer or service provider, these
online portals offer readymade lists of exporter and importers to help one quickly locate the exact item or
company one is looking for. Based on the understanding of what businesses buy/sell and how they buy/sell,
B2B Portals offer message boards where users can view buy & sell trade leads and post their own leads to
generate maximum business inquiries. This has drastically made the interactions among the various
businesses houses at the global level easier. A business can advertise their businesses and products and
services at minimum costs and expand internationally with without much difficulty.

Here are five principles of a smart B2B strategy:

(1) Targeting: When a business expands in an international market, it needs to target its B2B approach
towards the prospects with the same needs and demographics as the businesses best customers.
That means, the business needs to get in sync with those other businesses that can help it reach its
potential customer base.

(2) Relevance: Since the business is going to be setup in a foreign land, the business needs to research
and be aware of the business decision makers that it intends to target and tailor its messages
accordingly.

(3) Consistency: The business needs to make sure that it markets across all channels – paid advertising
to sales letters, websites to face-to-face presentations and consistently repeats the key statements
about the business. This helps another business to identify itself with it and work with it as well.

(4) Credibility: Business prospects need to trust and believe in the other businesses they collaborate
with. Therefore, the business that is setting its foot in a new foreign market needs to back itself with
case studies, testimonials and statistics to establish credibility as a trusted provider.

(5) Quality: The business needs to ensure that the quality of the products or the materials that it
exports need to reflect the companies stature in the industry. This prompts the prospects to commit
to transaction with the business.

B2B Business Model

A typical B2B Business Model
As discussed before, B2B describes commerce transactions between two businesses. More than 94% of all
Internet sales are B2B transactions. B2B transactions open the foreign markets to sellers and hence form the
largest segment of the business market. The volume of B2B (Business to Business) transactions is much
higher than the volume of B2C (Business to Consumer).
Online B2B marketplaces have been redefining the export business in India. Today with more than
thousands members, the B2B portal has proved to be immensely popular and has established its credibility.
The B2B model works in an export setup as follows:

(a) Step I: Once the business has decided that it wants to get into the international market through
exports, it needs to touch base with the businesses i.e. probably wholesalers or retailers to sell its
products in the international market.

(b) Step II: The business needs to position itself as a quality manufacturer of products or an efficient
service provider so that it is able to attract the attention of prospective businesses to grow its
business

(c) Step III: Once the business buyer has complete access to the businesses product information,
business dealings and export information, the prospective buyer dealer places a bulk order for the
product to the business.

(d) Step IV: Once the business receives the order, it processes it and dispatches the order to meet the
requirements of the buyer business – hence completing the B2B process.

Top B2B sites in India that help domestic business to expand to international horizons by listing their
businesses on it are:

(a) IndiaMart.com: Indiamart.com is India’s leading B2B marketplace providing opportunities to 1.2
million suppliers and 6.5 buyers. The business can register its products and make buying and selling
offers. Also, it can create a directory page for its business so that it becomes easier to find the
business among the many listed.

(b) Alibaba.com: Alibaba.com is China based B2B Company and is said to be the master of online B2B
business. This website lets the business register up to 50 products as a free member. This B2B
portal is serving as a prominent e-commerce stage to Small and medium enterprises globally.

(c) ExportersIndia.com: Exportersindia.com is India’s best export directory that there is.

(d) Tradekey.com: Tradekey.com is a global B2B market place where the exporter can attract business
from all over the world. It was initiated with the vision of providing better and state-of-the-art
online trading platform to the international trading community.

(e) Ec21.com: Ec21.com is a global B2B marketplace for exporters and importers. It lets the business
have its own business directory, and product catalogs. As of today, this Korean global B2B online
marketplace has managed to help numerous SMEs (Small and medium enterprises) in reaching
heights of success.

(f) B2b.sulekha.com: Sulekha B2B India is a leading B2B marketplace for Indian businesses for export.

(g) TradeIndia.com: TradeIndia.com is India’s largest B2B Marketplace that offers instant B2B solutions
through online business directory.

(h) Made-from-India.com: Made-from-India.com is the best B2B portal in India for finding Indian
manufacturers, suppliers and exporters for buy leads and offers.

(i) Exportmart.com: Exportmart.com is a B2B portal in India that offers online marketing to exporters
and helps generate leads for importers.

These B2B portals are playing a crucial role in India’s business scenario by ensuring an easy access to an
international base of clients. For small and medium businesses, particularly, it is the ultimate cost-effective
way to open up an entire new world of trade opportunities at the international level.

A List of Portals in India

www.eximdeals.com www.in.kompass.com www.indiamarketplaces.com
www.tradeindia.com
www.ebusinessindia.com www.exportersindia.com www.b2bsphere.com
www.trade4india.com
www.sme.in www.b2bindiatoday.com www.indiacon.com
www.tradekeyindia.com
www.bizbilla.com www.eleb2b.com www.allactiontrade.com
www.b2bhouse.com
www.b2btradeindia.com www.webdealindia.com

www.seekandsource.com www.fibre2fashion.com

www.hindustanmarkets.com www.mahasme.com

www.indiatradezone.com www.indiabizclub.com

Industry Insights

Indian Export Industry

India has always been a country rich in culture, heritage and is a gold mine of many natural substances.
Though we have a huge population, yet we manage to produce surplus crops and other products which we
export to other countries. India exports cereals, iron ore and steel, copper, apparels and clothing
accessories, edible meat, rubber, tea, footwear and various other products. It is a country rich in minerals
and various other resources. It is world famous in the production of dairy products, tobacco and many other
products. Though we export so many things the main thing that we import or get from another country is
crude Oil.

The economy of India is the 7th largest in the world by GDP and the third largest country by purchasing
power parity. India has registered an average growth rate of about 7% for the last two decades. India’s

economy became the fastest growing economy from the last quarter of 2014 leaving behind China. The
long-term growth prospective of the Indian economy is reasonably positive due to its young population, low
dependency ratio, healthy savings, investment rates, and increasing integration into the global economy.
India also topped the world bank’s growth outlook for 2015-16 for the first time with the economy having
grown 7.3% in 2014-15 and is expected to grow 7.5-8.3% in 2015-16.

India has capitalized its economy based on its large educated English-speaking population to become a
major exporter of Information and technology services, BPO services, and Software services with $167.0
billion worth of service exports in 2013-14. It is also the fastest-growing part of the economy. The IT industry
continues to be the largest private sector employer in India. India is also the fourth largest start-up hub in
the world with over 3,100 technology start-ups in 2014-15. The agricultural sector is the largest employer in
India's economy but contributes to a declining share of its GDP (17% in 2013-14). India ranks second world
wide in crops and cereals output. The Industrial sector has held a constant share of its economic
contribution (26% of GDP in 2013-14). The Indian auto industry is one of the largest in the world with an
annual production of 21.48 million vehicles in the financial year 2013-14. India has $600 billion worth of
retail market in 2015 and is one of world's fastest growing E-Commerce markets.

India's two major stock exchanges, Bombay Stock Exchange (BSE)and the National Stock Exchange of India,
had a market capitalization of US$1.71 trillion while the US had $1.68 trillion respectively as of Feb 2015,
which ranks 11th and 12th largest in the world respectively according to the World Federation of Exchanges.
The 2012 data shows that the United Arab Emirates (UAE) was India's biggest export market, closely
followed by the USA.















Pharmaceutical Industry

The net worth of the international pharmaceutical market is US$300 billion per annum and this number is
estimated to reach US$400 in the next 3 years. This proves the exponential growth of this industry and the
market it has. A recent report says that India stands third largest based on volume and thirteenth largest
based on value in the Pharmaceutical Industry. This market is conquered by branded generics comprising
about 70-80 percent in the market. India ranks first in providing generic drugs worldwide, constituting about
20 percent of international exports based on volume. Due to the high fragmentation in the Pharmaceutical
Industry, consolidation becomes a significant feature of the Indian market.

India possess a significant position in the international Pharmaceutical Industry India also homes a large
number of engineers and scientists who have the ability to drive this industry to a higher level than now.
Recently, six sub-licenses has been signed by the UN-backed Medicines Patent pool in order to help the
developing countries. The alliance has been made with Cipla, Aurobindo, Desano, Hetero Labs, Emcure and
Laurus Labs permitting them to develop an anti-AIDS drug Tenofovir Alafenamide (TAF) to provide help to
112 developing countries.

The Scope of the Market:

A recent report in India states that, the Indian pharmaceutical industry is expected to grow and have about
20 % compound annual growth rate. (CAGR) in the next 5 years. The present worth of the Indian
pharmaceutical industry is US$ 20 billion. Indian pharmaceutical industry signed up with US Food and Drug
Administration (FDA) and stood at 523 which is considered to be highest for any nation outside the US. The
Indian biotechnology industry forms the backbone of the pharmaceutical industry and it comprises of
various categories like
bio-pharmaceuticals,bio-agriculture,bioinformatics,bio-services and bio-industry. The expected average
growth rate for this industry is 30 % and its net worth is expected to reach US$ 100 billion by 2025.The
largest sub-sector is Biopharma which contributes about 62% in the overall revenue which comes at US$
1.90 billion.

Various Investments :

Recnetly, the Union cabinet has accepted for the alteration in the pharmaceutical sector’s FDI policy which
allows FDI to manufacture medical device in a completely automated route under certain restrictions.This
will save huge amount of time. Based on the report let out by the Department of Industrial Policy and
Promotion (DIPP), thedrugs and pharmaceuticals sector has drawn the cumulative foreign direct investment
(FDI) that values US$ 13.34 billion amid April 200 and April 2015. The following lists the major investments in
the pharmaceutical industry:

 The revolutionised construction of the Bio-Xcell Biotechnology Park in Nusajaya, Johor, Malaysia's
park has a multi-product, personalised, biopharmaceutical development facility. This was

announced by Stelis Biopharma and the investment for the entire project stands at US$ 60 million.
This project is mainly focused on healthcare and industrial biotechnology.
 Strides Arcolab helped to manufacture anti-AIDS drug for 112 developing countries inorder to treat
HIV patients at a lower cost.Strides Arcolab signed up for a licence agreement with US-based Gilead
Sciences Inc. to develop and circulate the anti-AIDS drug Tenofovir Alafenamide (TAF) which is
considered cost-effficient.
 Mr Prathap C Reddy , Founder and Executive Chairman, Apollo Hospitals, aims at investing around
US$ 226.26 million (around Rs 1,500 crore) in order to add over 20,000 beds under the Apollo
Hospitals Enterprise (AHEL) in the next two years.
 An investment of US$ 48 million was made in in Narayana Hrudayalaya hospitals, a health care
provider, by CDC, the UK’s development finance institution focusing majorly to provide inexpensive
medical facilities to all those in the western, central and eastern India.
 A bisimilar for Adalimumab will be soon launched by Cadila Healthcare Ltd to treat auto immune
disorders and rheumatoid arthritis. The pharmaceutical company claims that, the biosimilar product
is an exact replica and will be the same in terms of its effectiveness, safety and purity. The price of
the biosimilar is one-fifth of the original product.
 For marketing 3 biosimilars -Rituximab, Adalimumab and Cetuximab in India, Torrent
Pharmaceuticals signed up a license agreement with Reliance Life Sciences
 A fresh vaccine manufacturing facility will be built in Pondicherry by the Indian Immunologicals Ltd
with an investment of US$ 45.25 million.
 A great initiative was taken by Intas Pharmaceuticals it launched the bio similar of Lucentis , which is
considered one of the largest selling drugs that is used to treat Razumab., a degenerative eye
condition.

Steps Taken By the Government:

A recent publication of the Indian Pharmacopoeia Commission (IPC), The Addendum 2015 of the Indian
Pharmacopoeia (IP) 2014 is expected to play an important part in improving the quality of the medicines
thereby promoting public health and care. Also, improving the medicine’s quality also drives the
pharmaceutical industry’s growth to reach a higher level.'Pharma Vision 2020’ was launched by the
Government that majorly focuses on making India to top the end to end manufacturing of medicines. In
order to attract investments, the approval time for new facilities has been reduced significantly. To make
the drugs available and affordable to everyone, policies like Drug Price Control Order and the National
Pharmaceutical Pricing Authority.

Romania shows great interest in tying up with the Indian pharmaceutical companies to conduct research
and manufacture new medicines. Mr Mario Crute, Counsellor in Ministry of health, Romania spoke about
this at GCCI. The major steps taken by the Indian government are as follows:

 It has been proposed by Telangana to develop the largest integrated pharmaceutical city in India
which will be spread over Hyderabad which will be equipped with the advanced drug and other
facilities. Hyderabad ranks fifth in India’s drug export and the average investment for this project is
estimated around Rs 30,000 crore.

 The Government has decided to invest around 500 Crore To build a domestic pharmaceutical
industry and help the entities that need improvement in their manufacturing facilities by providing
cheaper loans

The net worth of the Indian pharmaceutical market is expected to reach US$ 100 billion by 2025, and in
order to achieve that lots of initiatives have been taken by the Government and other companies. The
whole aim is to provide cheap, quality and the best drugs to be made available to everyone.

Agriculture and Processed Food

Agriculture plays a vital role in India’s economy. More than half of the rural Indian households depend
on agriculture as their means of livelihood. Agriculture, along with fisheries and forestry, is one of the
chief and important contributor to the Gross Domestic Product (GDP). India is the largest producer, of
spices and spice products and largest exporter too. It ranks among the top three in farm and agriculture
outputs. Agricultural goods constitute of 1/10 th of the country’s exports to other countries and is the
fourth-largest exported commodity. The agricultural industry in India is divided into several smaller
segments such as canned food, dairy products, processed food, frozen food, fisheries, meat, poultry and
ultimately food grains
India is the second largest producer of wheat, rice, cotton, sugarcane, and groundnuts. It is also one of
the top most producer and exporter of vegetables and fruits, representing about 9% and 10% of the
overall vegetable and fruit production in the world respectively.
The country is the top producer of jute, milk, and pulses and is the second largest in the production of
silk and is also the biggest consumer of silk in the world. India exported billions worth of agricultural
products in 2013, making it the seventh largest agricultural products exporter in the whole world, and
the sixth largest net exporter. Most of its agriculture exports serve the developing and under developed
nations of the world.

In the recent past, many factors together have helped to promote growth in the agriculture industry in
India. These include increase in household income and consumption, growth in the food processing
sector and rise in agricultural exports. Rising private stakes in Indian agriculture, expansion of organic
farming and the use of information technology for good produce and distribution are some of the things
that has helped in the growth of the agriculture industry.
With an annual output of 138 MT, India is the largest producer of milk. It also has the largest cattle
population. India is the largest importer of pulses at 19.0 MT and 3.4 MT, respectively. India, is one of
the highest producer of sugar and accounts for 14 per cent of the global output of sugar. India is the
sixth-largest exporter of sugar, making up 2.76 per cent of the total global exports.
Spices are exported from India to all the parts of the world and are expected to reach US$ 3 billion by
2016–17 due to innovative marketing strategies, attractive packaging, best in quality and strong
distribution networks. The spices market in India is valued at Rs 40,000 crore (US$ 6.16 billion) every
year, of which the branded portion accounts for 15 per cent. The procurement target for rice during
marketing season in 2015–16 has been fixed at 30 MT. As per the 4th planned Estimates, food grain

production is estimated to be 252.68 million tonnes (MT) for 2014-15. Production of pulses estimated at
17.20 million tonnes.
India’s agriculture based on varied regional climate have significantly contributed to the global food
basket.
Indian food, fruits, snacks and spices are known for their great quality across the world. Globally, India
leads in the production of the following food segments:
India is the highest milk producer in the world (137.7 million tonnes)
India has the greatest buffalo population (112.9 million) accounting for approximately 56.7 per cent of
the global buffalo population
It produces the largest number of mangoes in the world (18.4 million tonnes).
It is the highest producer of bananas(29.7 million tonnes).
It ranks among the top most in fruit (89 million tonnes) and vegetable production (162.9 million tonnes).
India is the second-largest fish producer in the world (9.6 million tonnes).
The Agricultural and Processed Food Products Export Development Authority (APEDA) plays an
important role in tapping India’s agricultural strengths and works towards increasing the export
capabilities of Indian agricultural and food products

During the last financial year, exports of agricultural and processed food products totalled US$ 21.5
billion. Export of cereals and various type animal produce from India accounted for 69.7 per cent of the
total exports in 2014–15, followed by processed fruits and vegetables (24.0 per cent), fresh fruits and
vegetables (5.7 per cent) and floriculture products (0.67 per cent).
Indian agricultural and processed foods are exported to many countries across the world; main among
them are the Middle East, South-east Asian countries, the European Union and the US.
A few years ago, companies struggled to sell packaged foods. But now it is much easier to get a foothold
into the Indian market because of a younger population who have higher incomes, new technologies
and a growing middle class, in half a billion households. An average Indian spends around half of his or
her income on food. The local market for processed foods is not only big but is growing rapidly in pace
with the economy. It is forecast to be worth $90 billion in the near future. Processed Food
Manufacturing companies are required to work hard and must produce goods to suit the Indian cultural
preferences. India is the second largest producer of food in the world, be it tinned food, processed food,
food grains, dairy products, frozen food, fish, meat, poultry, the Indian agricultural industry has a huge
potential, the significance and growth of which will never end. Processed food in India has really grown
since its inception and hopes to expand exponentially in the near future in the Indian markets.

India's agricultural economy has undergone structural changes. Between 1970 and 2011, the GDP share
of agriculture has fallen to a great extent almost by 25%. It is not because of reduction in the importance
of agriculture, or a effects of agricultural policy. This is mainly because of the huge economic growth in
services, industrial output, and non-agricultural sectors in India between 2000 to 2010. Thus, although
this country’s half the population is dependent on agriculture for employment yet, its contribution to
the GDP has fallen and in one way it is a good sign that we are not dependent on this sector only for
growth, today India is the largest exporter of many agricultural products in the world market and has a
great position. It is one of the top processed food exporters of the world too and carved niche for itself
in the world market. Thus, it is wonderful news for the economy and the people of this country to see it
grow.

Chemicals- Organic & Non Organic

Chemical and its allied industries constitute one of the most important and essential components of the
country’s economy. Although chemical industry was a late starter and is still a growing industry in India,
it has undergone a huge change in the last three decades. At present, it is the fourth largest set of
industries after textiles, iron and steel and engineering industries in India.

The Indian chemical industry is among the most well set traditional sectors of the country that plays an
important role in the country’s economic development. This sector forms a part of the raw material
industry and provides critical input for industrial and agricultural development.

The Indian chemical industry is one of the oldest industries in India and has made great contribution to
the industrial and agricultural development of India. It includes both large and small-scale units. The
financial help granted to the small-scale units in the mid-1980s provided the thrust for the growth of this
sector. The chemical industry of India serves the needs of various other industries such as textiles,
leather, plastics, paper, printing inks and food stuffs, among others.

The chemical industry is among the most spread and divided industrial sectors among all and includes
basic chemicals and its products are petrochemicals, fertilisers, paints, gases, medicines, dyes, etc. The
sector covers over thousands of commercial products, and provides the raw material to many other
industries such as finished drugs, dyestuffs, paper, synthetic rubber, plastics, polyester, paints,
pesticides, fertilisers and detergents. Over the years, this industry has been changing with a move
towards product innovation, brand building and environmental safety. Besides, customer focus is also
gaining importance in the industry.

The industry is made up of both small-scale and large units and produces thousands of products and by
products ranging from plastics and petrochemicals to cosmetics and toiletries. This industry uses up a
huge share of around one-third of its own production. The industry has a great influence on the overall
Index of Industrial Production (IIP) which gives an indication of its importance in the country’s industrial
growth. A strong chemical industry helps in many economic and strategic benefits for the nation. As of

March 31, 2008, the size of the Indian chemical industry was estimated at around USD 35 billion and 3%
of India’s GDP.

The chemical industry can be broadly divided into two parts– organic and inorganic chemicals. Organic
chemicals are almost half of all known chemical compounds, like petroleum, medicines, cosmetics,
agricultural chemicals, etc. Inorganic chemicals comprise alkalis, dyes and dyestuffs.
Based on a more minute and functional classification, chemicals can be divided into basic, specialty and
fine chemicals.

Alkali or inorganic chemicals form the bulk of the total chemical production in India. During Financial
year 2010, alkali chemicals production was 5.5 MMT and was around 71% of the total chemical
production. The dyestuff sector is one of the important segments of the Indian chemical industry and
has forward and backward tie ups with a variety of sectors such as textiles, leather, paper, plastics,
printing inks and foodstuffs. The textile industry uses 70% of the dyestuff produced by these industries.

In the Indian chemical industry, Alkali chemicals enjoy the highest contribution in the total production.
Since FY02-FY09, the representation of alkali chemicals in the total produce of this sector has been
around 70%, closely next comes organic chemicals at around 20%. The share of dyes and dyestuffs and
pesticides, on the other hand, continue to remain low. However, the production of dyes and dyestuffs
has been increasing steadily since 2004 due to its growing requirement in sectors such as textiles,
leather, plastics and foodstuffs. Nonetheless, the increase in production of organic chemicals has been
extremely slow. From FY2003-FY2009, the production of inorganic chemicals increased steadily as
compared with the steady production growth of alkali and organic chemicals, therefore this segment
grew at comparatively healthier rate than the industry as a whole.
In the case of alkali chemicals, soda ash has been enjoying the highest share in total production of this
industry since the year 2003. However, from 2008, the production of caustic coda has crossed soda ash
as the contribution of caustic soda increased from 29% in 2009 from 38% in 2004.
In the organic chemicals segment, the contribution of carbon black has been more than half of the total
production since 2004 whereas in the inorganic chemicals segment, out of the 19 products, methanol,
acetic acid and acetaldehyde together contribute more than half of the total production.
The exports of the chemical industry depict a slow performance and have been on a declining trend
after the year 2005. In the year 2008, around 7% of the total production of the chemical industry was
exported. The main export destinations of the chemical industry are the US, China, UAE and the UK.

In case of the makeup of the of total exports, dyes and dyestuff, form around 1% of the total chemical
production in the country, have been making the leading contribution of around 27% since 2003. This
sector provides lucrative opportunities for international trade considering its end users are– textiles,
plastics, leather and foodstuffs industry.
Besides dyes and dyestuffs, alkali chemicals and inorganic chemicals also generate an important part of
the total exports. The growing demand of soda ash in the other industries such as glass and detergents
has increased the growth of the exports of alkali chemicals. The exports of alkali and inorganic chemicals
have been decreasing over a few years and in 2008 they decreased by around 69% and 20%,
respectively. This industry will continue to be affected by the anti-dumping activities undertaken by
some countries like China.

The other problems faced by the industry include: high price of basic raw materials such as crude
oil/natural gas, the price instability destroys the profit visibility and continuance of these companies.
High division of production units, mostly small scale industries and limitation in capacity in the SSI sector
put them in a bad position while tapping export opportunities with huge volume. Another area that
poses challenge for the companies is the lack of good and planned marketing, branding and distribution
development. The low levels of technology and research and development investments hamper the way
for new product and technology development, leading to lower levels of profitability. Thus, it is time the
Government took more interest in these industries and helped them to grow with proper assistance and
guidance from them.

Herbal and Ayurvedic Products

Ayurveda is India’s traditional natural healing system, which has been practiced for over 5,000 years.
Ayurveda has been referred to as the 'Mother of all healing systems' as it is the predecessor of all other
healing therapies and natural medicines. Ayurvedic medicine is particularly effective for metabolic,
stress related, and chronic conditions. Ayurveda uses herbal medicines and treatments and is said very
helpful in relieving the effects of surgery and has provided alternative medicine for cancer cure too.
Other popular uses of Ayurveda are for general rejuvenation and beauty care.

Ayurveda is one of the most important form of alternative medicines practiced throughout the world. In
India, it has suddenly regained its lost ground with the renewed interest for it in the west. People of this
modern world are once again turning back towards natural cure. Therefore, herbal therapies, natural
medicines and yoga centres have made a huge turn around again. The Indian governments support in
the research and teaching of Ayurveda through many ways at many levels has helped this to flourish
once again in its place of birth.

In the past years India has provided many high quality Ayurvedic and herbal products to the world. In
the olden times Ayurvedic practitioners developed many medicinal preparations and surgical
procedures for the treatment of various kinds of diseases. Ayurveda has a brilliant future in India as well
as abroad, as a business proposition due to the ever increasing demand for alternative medicines and
natural therapies. This huge demand is driven due to various factors like the stressful work life,
exhaustive lifestyle, the endless quest for peace, and increasing number of diseases with less healthy
environment. Today, most people are on a constant hunt for serenity and are ready to spend any
amount for the services that can offer remedies but in a natural way.

This is the reason why, many brands are exploring the avenues available in this highly fertile industry.
Many companies are coming up every day to provide natural and herbal solution to all physical ailments.
Most places that offer Ayurvedic treatment in India are located in the southern state of Kerala, due to
the climatic conditions and abundance in supply of medicinal plants and herbs there. You’ll also find
quite a few Ayurvedic centers in Goa and Karnataka. Companies like Shehnaaz, dabur, VICCO and
Patanjali recently have crafted a niche for themselves in this growing herbal and ayurvedic product
market. Patanjali provides medicines and beauty care products but Shehnaaz has always been about
herbal beauty products only.

With beauty care products in high demand these industries offering ayurvedic medicines and cure have
also channelized themselves to create a market for herbal beauty products. With the huge success of
Shehnaaz herbal beauty products, it was understood that the whole world is ready to accept these
products with open arms. So, now these ayurvedic and herbal products are not only being produced for
the Indian markets, but they are expanding to cater to the global needs for these products. Ayurveda
has already carved a niche for itself in the medical science. Indian people and people across the world
are now becoming aware of this unique, time tested science of Ayurveda. Indian and foreign investors
have started taking Ayurveda seriously. Ayurveda is striving for all round Wellness through Herbal and
natural Products and aims to reach worldwide markets. India is trying to translate its rich heritage into
modern world class Health Care & Personal Care products.

The alternative cures by Ayurvedic massages, herbal medicines, yoga and old natural medical practices is
attracting people from far and wide quickly and promises to be the next great comeback in the medical
and wellness industry. This means that there will be a huge potential market for the different products
that Ayurveda dishes out in times to come. It has the greatest advantage of catering and servicing every
class of the society. The opportunity for herbal and ayurvedic products is really vast as it provides
natural remedies through its channels like Yoga centres, Ayurvedic spas and Herbal medicines. Yoga
centres are growing at a rate never seen before and so are spas that offer herbal treatment. Combined