Report on Pharmaceutical

7/28/2019 Report on Pharmaceutical

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A

GLOBAL / COUNTRY STUDY AND REPORTON

EXPORT OPPORTUNITY OF FOOD INDUSTRY IN MALDIVE

Submitted toGujarat Technological University

IN PARTIAL FULFILLMENT OF THEREQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ASMINISTRATION

UNDER THE GUIDANCE OFPRATIMA SHUKLA

(ASSISTANCE PROFESSOR)

[Batch: 2010-12, MBA SEMESTER III/IV]

R.B. INSTITUTE OF MANAGEMENT STUDIESMBA PROGRAMMEAffiliated to Gujarat Technological University , Ahmedabad

April, 2012

SUBMITTED BY:-

SHAILESH PATEL (107460592072)

MAYURI CHAUHAN (107460592054)

KOMAL JAIN (107460592017) NITISH KARIYA (107460592004)

VIPLAV PARMAR (107460592088)

POOJA VYAS (107460592005)


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Declaration

We, Shailesh, Mayuri, Komal, Nitish, Viplav & Pooja, hereby declare that the

report for Global/ Country Study Report entitled

EXPORT OPPORTUNITY OF FOOD INDUSTRY IN MALDIVEis a result of

our own work and our indebtedness to other work publications, references, if any,have been duly acknowledged.

Place : Ahmedabad (Shailesh Patel)

Date : 30/4/2012 (Mayuri Chauhan)

(Komal Jain)

(Nitish Kariya)

(Viplav Parmar)

(Pooja Vyas)


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Institutes Certificate

Certified that this Global /Country Study and Report Titled EXPORT OPPORTUNITY OF

FOOD INDUSTRY IN MALDIVE is the bonafide work of Mr. SHAILESH PATEL

(107460592072), Ms. mayuri chauhan (107460592054), Ms. komal jain (107460592017), Mr..

nitish kariya(107460592004), Mr.viplav parmar(107460592088), Ms. poojavyas(107460592005)

who carried out the research under my supervision. I also certify further, that to the best of my

knowledge the work reported herein does not form part of any other project report or dissertation

on the basis of which a degree or award was conferred on an earlier occasion on this or any other

candidate.

Pratima Shukla

(Assistance Professor)

(Certificate is to be countersigned by the Director/HoD)


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PREFACE

Knowledge is power and ideas rule the world.

Any human being when enters into the world enters with a raw brain and mind. He or She

gains knowledge from the experience of his or her human ancestors, through the Bibles of the

knowledge and also through his own experience.

Theoretical knowledge is silver but practical knowledge is gold.

The importance of the project preparation has been widely accepted in the educational

institutions as well in business houses. The essence of the project preparation is to have an

experience of all the hardship that is faced while setting up a new enterprise.

Before presenting our project that would likely call a survey rather, we would like to say

it is an image of our deep practical studies to whatever we have observed and analyzed.

The purpose of writing a report is to put into work the practical training that is being

imparted to us. Fundamentally the ground for preparation of the report is today s information,

cultures that requires in depth knowledge of sectors, which gives a clear and reliable

understanding of practical training that we get.

This opportunity helped us to develop and enhance our appetite for learning and served as

a fusion of the theoretical concepts and their practical applications in the corporate world.


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ACKNOWLEDGEMENT

We owe debt to those who where so generous with their time and expertise and helped

and guide in writing this project. The expertise in this project belongs to them.

From inner most of our hearts the gratitude, which we has for our honorable guide Prof.

Pratima Shukla

This comprehensive project has been wonderful learning. We are very thankful to work

on a project on Factors affecting purchasing decision of residential property.

We would like to express our deep gratitude towards our mentor and project guide

Pratima Shukla for providing us his inspiring guidance, valuable experience and knowledge at

every stage of our work. He has been ever ready to solve our problem faced during the work by

watching my deeds; guiding us and providing new horizons of conquer.

We would like to express our gratitude to all the faculty members for providing facilities

and their kind co-operation in my study and friends for helping directly and indirectly in the

completion of the project.

We also convey our sincere gratitude to our family members for their love and support.

(Shailesh Patel)

(Mayuri Chauhan)

(Komal Jain)

(Nitish Kariya)

(Viplav Parmar)

(Pooja Vyas)


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CONTENT

Particulars

PART II INDUSTRY/ SECTOR

COMPANY SPECIFIC STUDY Introduction to Food Industry

Role in Maldives

Structure & function of food industry

Present position & trend of business with india

Policy & Norms of food industry in Maldives

Export Cycle

Payment terms

Document required for export

Govt. requirement for support

Potential trade barrier for Export of food inMaldives

Opportunity for food industry in Maldives

Conclusion & suggestion


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INTRODUCTION TO FOOD INDUSTRY

There are many industries which can be work in any economy. Its depending upon the

system & economical condition of the country. The resources available in the country also play a

vital role in the development of the country.India is said to be the Golden sparrow. People of different country came in the country to

make the business with the India. Specially Dutch, Portuguese, & Britishers came in the country

to make the business with India.

Specially they have focus on the some great items in the country like (mari masala &

tejana). Now we have great time to make this as a opportunities for the country by exploiting it

& develop the business relation with the other country.

Food industry is a very important part of the economy of India. We have the different

part of this food industry to exploit it as an opportunity.

Food manufacturing

Beverage manufacturing

Food & beverage stores

Food services & drinking places

This industry is always comprised of many sub industries. The following is a sample of

data for the sub industries.

Breakfast cereal manufacturing

Frozen food manufacturing

Dairy products (except frozen) manufacturing

Bread & bakery product manufacturing Soft drink & ice manufacturing

Breweries

Distilleries

Supermarket & other grocery (except convenience) stores

Full service restaurants

Limited service eating place

Drinking places(alcoholic beverage)


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FOOD SECTOR & ITS ROLE IN THE MALDIVE

As we all know that the domestic food & beverage industry is a very mature &competitive industry with little growth at the domestic level. Increase in the market share of anyindustry in the economy come at the expense of the loss of market share of the other industry. In

short most of the growth comes from the international expansion. The government of anycountry always put some rules & regulations for the exporting or importing any goods orservices because of the fear of the decreasing share of the domestic country or the decreasingvalue of the domestic supply, which will ultimately lead toward the recessionary phase in thecountry.

Now a days food industry plays a very important role in the country because of the

increasing population in the country. On the contrary the government tries to manage the demand& supply of the food items.

For example in India, we have ban on the export of rice because the government is not

able to fulfill the domestic demand.

But there is always loophole in the system like, we also have a ban on the exporting ofthe onion, but the onion powder can be exported in the other country. Even we have a Hughmarket in the Bhavnagar.

If we take other example, much domestic food and beverage companies want to take advantageof existing distribution systems, or underutilized plant capacity. Some acquisitions may bemotivated by Federal income tax considerations.

From the time that agriculture began about 7,000 years ago to the present there have been many

important developments that are responsible for the state of the industry as it is today. Thefollowing events have had a major impact on where the industry is today.


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The use of some form of irrigation is well documentedthroughout the history of civilization. It has enabled foodproduction to occur in areas previously too hostile for plantsand to counter the effects of drought.

IRRIGATION

Resulted in mass production of food products at lower cost

and consistent characteristics.INDUSTRIALREVOLUTION

Classified into two main groups, antioxidants that delay orprevent the deterioration of foods by oxidative materialsand antimicrobial agents that inhibit the growth of spoilageand pathogenic microorganisms in food.

FOODPRESERVATIVES

Tinned products came to America in 1822 and allowed food

to be stored for long periods of time. Some packagingprocesses were developed to enable Napoleons armies tocarry war to distant areas and remain well fed.

PACKAGING

A partial sterilization accomplished by raising milk to atemperature high enough to destroy pathogenicbacteria. This process allows milk to remain consumablefor about 14 days if refrigerated in closed containers.

PASTEURIZATION

First, railroads and barges, then trucks and airtransportation have enabled many food products to beenjoyed in regions where food cannot be grown. Manylocally grown food products can be consumed globally(bananas, fish, fruit, etc.).

TRANSPORTATION

Enabled farmers to significantly increase yield.PESTICIDES

In the 1950s and forward, nutrition became a majorconcern for production/consumption. The emphasis oneating healthy has spawned a new market segment; forexample organic foods, low-fat foods and healthy foods allenjoy healthy margins and increased demand.

NUTRITION


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STRUCTURE, FUNCTION & BUSINESS ACTIVITY OF FOOD

INDUSTRY

A. Restaurant Industry

As a general rule full service restaurants are for the most part company owned with verylittle franchising. Fast food restaurants are heavily involved in franchising activities.Franchisees will pay a fixed per-cent of receipts to a franchiser for advertising and royalties.Some fast food franchisers will lease the structure to the franchisee for a monthly rate or apercentage of sales.

Suppliers will help restaurant chains with marketing and advertising funds. It is notunusual for major suppliers to offer rebates or provide upfront payments to obtain exclusivesupplier status.

The internal controls of these chain restaurants are extensive; conversely individual

independent restaurants do not always enjoy these controls over operations.

Normally restaurants purchase from foodservice companies or they may purchase theirinventory from a national chain commissary. Perishable goods are usually purchased from alocal vendor.

Four tip reporting programs are available for these taxpayers to enter into with theService. Two of these pro forma documents are titled Tip Reporting Alternative Commitment(TRAC) and Tip Rate Determination Agreements (TRDA). The IRS developed the EmployerDesigned Tip Reporting Alternative Commitment (EmTRAC) Agreement program in responseto employers in the food and beverage industry who expressed an interest in designing their own

TRAC programs. Attributed Tip Income Program (ATIP) is a new three-year pilot program forfood and beverage employers. The agreements serve a dual purpose: improving compliance oftipped employees and avoiding tip examinations. The TRAC agreement is by far the morepopular with large and midsized taxpayers.

B. Beverages

Normally manufacturers of alcoholic and non-alcoholic beverages sell to distributors whoown a franchise to sell in a given geographic area. There is extensive government oversight overthe liquor industry and individual states and local jurisdictions usually have rules and regulationsaffecting the sale of these beverages within their jurisdictions.

These beverage companies are very competitive and are focusing a lot of their activitiesin expanding internationally.


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PRESENT POSITION & TRENDS OF BUSINESS WITH INDIA DURING

LAST 3 TO 5 YEARS.

In the beginning of the early 1980s, there is a trend of merger & acquisitionactivities have been started in the food & beverage industry. Many companies had taken the

opportunities in India after the policy of the LPG to earn the business in the India. Several foodand beverage manufacturers have spun off their restaurant businesses.

Now days it becomes trend in the India that many food market leaders came in theIndia to have the business of the world second largest population of the country.

For example, many international brands like Mc Donalds; Subway came in the

country & had captured a large market share of the Indian food industry.

It becomes tendency of the people of the India that they will start preferring the

branded products especially in food items & every Sunday people has tendency to eat out of thehome with either family or with the friends. So it has the wide opportunity for the business

people to earn money out of it.

Concept of franchisee:-

There is new concept of franchisee developed in all over the world. The new trend

has been established since last decade. Most of the Business men focus on the different ideas of

making more money. This is one of the ideas to capture this opportunity by providing the people

qualitative food at the same time when they want with that quality which is served at that county.

The franchisee owner always tries to maintain the same taste at all over the branches. The new

trend which has been started in the country is to have the branches of the international or MNCs

in the India.

This new concept has achieved the glorious response from the people of India &

the different companies have taken this opportunity seriously because the India has the second

largest size of the population. So it is the most beneficial thing for the business to have a Hugh

market. The companies have used the market penetration strategy to enter in to Indian market


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POLICY & NORMS OF MALDIVE FOR FOOD INDUSTRY

(INCLUDING LICENCING, PERMISSION & TAXATION ETC.,)

The Maldivian economy was entirely dependent on fisheries and other marineproducts for many centuries and fishery and related activities remain the main occupations of a

significant proportion of people; the government provides priority to the development of thefisheries sector. At present, fisheries contribute over 15 percent of GDP and engage about 30percent of the countrys work force. Outside of Male, fishing and subsistence agriculture

(mainly horticulture) is the main source of food security and livelihoods for the vast majority ofthe people

There is liberalized overall policy regime with the specific incentives for high

priority of food processing. Norms permitted for 100 percent equity of Indian companies.

For example currently we are exporting the poultry items especially to Maldives & Oman.

Tourism & fishing are the main business or industries of the economy of

Maldives. Apart from it tourism & hospitality is also an important part of the Maldives. So they

have to make free economic condition & liberalized situation for the people of different country

to come to the Maldives. Because it is only the area on which the development of the economy

depends on.

They need to develop the food industry if they want to develop the economy. &

thats only why they had made the liberalized economic conditions for the food industry.


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POLICY & NORMS OF INDIA FOR EXPORT IN MALDIVE INCLUDING

LICENCE, PERMISSION & TAXATION

As far as our Indian situation is concern our economy is free economy. We like to

have a business with the people of other country. So the procedure for the exporting is the same

in most the products. There are some rules & regulation which will be for the exporting in the

different company

1. FOREIGN TRADE ACT

2. FEMA

3. FERA

4. CUSTOM ACT

5. CENTRAL EXCIZE ACT

1. FOREIGN TRADE ACT: - this act will be covered under the ministry of commerce &

governed by Director General Of Foreign Trade.(DGFT)Foreign trade policy was developed for 2009-2014 & it is covered under the chapter no 3

and 4.

2. FOREIGN EXCHANGE MANAGEMENT ACT: - The act will manage all the aspect

related to the export & import. The rules & regulation will be decided under this act.

3. FOREIGN EXCHANGE REGULATION ACT: - It is covered under ministry of

finance & department of revenue & RBI. It covers the financial part of the foreign

exchange. It covers the regulation of the foreign exchange & flow of foreign exchange.

4. CUSTOM ACT: - Custom act was established in 1962. Under this act any goodsexported from India are chargeable to duty. The items on which the duty is levied are

given in the custom tariff act,1975 which is amended from time to time under the finance

act.

5. CENTRAL EXCIZE ACT: - the excise duty needs to pay by a manufacturer. If a

person or company wants to make an export & they are manufacturing something at that

time they need to be registered under this act.

There is one rule regarding this manufacturing that if person has the manufacturing less

than a value of 1.5 crore at that time he need not to pay the duty. But when the amount

goes beyond the 1.5 crore at that time one has to pay the excise duty


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Payment terms:-

There are some terms & conditions for payment in making the business. Now a

days it becomes more important for the business to give the good & services on the credit. Theremay be different payment schedule for the different parties. It can be like following.

The responsibility of the exporter is up to thefactory. importer will take all the responsibilities.only the excize duty will be paid by the exporter.

Ex works

FREE ON BORD

The responsibility of the exporter is up to the portor the port of the exporter. The responsibility of theimporter starting from the shiping lineresponsibilities.

F.O.B.

Cost & Freight

The freight will be always port to port. Theresponsibility of the exporter is up to the port ofdestination.

C&F

COST INSURANCE & FREIGHT

The exporter will take the responsibility oftaking the insurance also. the responsibility ofexporter is to export the goods to the port ofdestination with all the assurance.

C.I.F

DELIVERY DUTY UNPAID

In the DDU the exporter will take theresponsibility to pay the bills of custom

clearance on behalf of the importer.

D.D.U.

DELIVERY DUTY PAID

In the DDP the exporter has the maximum responsibility.to make goods available to the port of destination & tothe importer. the importer has only the responsiblity tomake the payment of the iport duty.

D.D.P.


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DOCUMENTS REQUIRED FOR MAKING EXPORT FROM INDIA.

DOCUMETS

PRE SHIPMENTDOCUMENTS

POST SHIPMENTDOCUMENTS

PRE SHIPMENT DOCUMENTS

INVOICE 6 COPIES

PACKING SLIP 6 COPIES

ARE - 1 DOCUMENT

CENTRAL EXCIZE INVOICE

EXPORTER'S VALUE DECLARATION

STATUTORY DECLARATION FORM(SDF)

B/L DRAFT


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POST SHIPMENT DOCUMENTS

POSTSHIPMENT

DOCUMENTS

NEGOTIABLEDOCUMENTS

NON NEGOTIABLE

DOCUMENTS

NEGOTIABLE DOCUMENTS

BILL OF EXCHANGE - 2 COPIES

INVOICE - 3 COPIES

BILL OF LOADING/ AIRWAY BILL 3 ORIGINAL

CERTIFICATE OF ORIGIN 3 COPIES

PACKING LIST 3 COPIES (FROM EXPORTER'SBANK TO IMPORTER'S BANK)


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NON NEGOTIABLE DOCUMENTS

INVOICE 2 COPIES

BILL OF LOADING/AIR WAY BILL 1ZEROX

CERTIFICATE OF ORIGIN 1 ZEROX

PACKING LIST 2 COPIES (FROMEXPORTER TO IMPORTER BANK)

BANK COPY

BILL OF EXCHANGE 2 COPIES

INVOICE 2 COPIES

BILL OF LOADING/ AIRWAY BILL

CERTIFICATE OF ORIGIN 1 ZEROX

PACKING LIST 2 COPIES

STATUTORY DECLARATION FORM 10ORIGINAL

EXCHANGE CONTROL COPY OF SHIPING BILL10 ORIGINAL


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The government will always be there for giving support to you if we will fulfill all

the procedures properly & make all the necessary documents which is mandatory in the

contemplation of the different laws.

The letter of credit is a written document by the importers bank to the exporter

which gives the guarantee on behalf of the importer that if importer is not able to pay the amount

in any case the bank will make the payments.

L/C AT SIGHT is used when the importer is willing to pay the sum at the time of

the getting delivery. It is also called the immediate payment against document.

L/C AT USAGE is used when the exporter gives goods on credit to the importer.

The maximum limits of giving the credit are 180 days. As per the government norms the

payment will be received in maximum 180 days.

GOVERNMENT REQUIREMENTS FOR SUPPORT

letter of credit

Types of L/C

L/C AT SIGHT L/C AT USAGE

L/C AT SIGHT

L/C AT USAGE


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OTHER TYPES

OF

L/C

REVOCABLE L/C

IRREVOCABLE L/C

RESTRICTED L/C

CONFIRMED L/C

TRANSFERABLE L/C

BACK TO BACK L/C

REVOCABLE L/C

IRREVOCABLE L/C

RESTRICTED L/C

The revocable L/C is a document which can be changed by the importer without the

approval of exporter. It can be canceled by the importer.

The irrevocable L/C is a document which cannot be changed by the importer without the

approval of exporter. For the small change in it required the negotiation & approval.

The name itself suggests that the L/C restrict some of the terms & conditions. Which must

be followed by the both the parties otherwise it can be canceled.


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CONFIRMED L/C

TRANSFERABLE L/C

BACK TO BACK L/C

This is the special type of L/C. which has the extra assurance. The advising bank will take

the responsibility that if the importers bank will not pay the amount in that case the

advising bank will make the payment.

This is the L/C which can be transferred from one party to another as the payment will due

from the one party & we need to pay to the other party. It is same as bill of exchange.

The bank will issue the two L/C s to help the exporter to get the goods, services or equipments

from the sub contractor. With the original L/C from buyers bank in place the seller goes to his

own bank & the bank will issue the second L/C in which the subcontaractor is the beneficiary.


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PRESENT TRADE BARRIERS FOR EXPORT

Among the 1,900 islands in the Maldives, only 198 are inhabited. The population is

scattered throughout the country, and the greatest concentration is on the capital island.

Limitations on potable water and arable land, plus the added difficulty of congestion are

some of the problems faced by households in Mal. International shipping to and from the Maldives is mainly operated by the private sector

with only a small fraction of the tonnage carried on vessels operated by the national

carrier, Maldives Shipping Management Ltd.

Over the years, Maldives has received economic assistance from multilateral

development organizations, including the United Nations Development Programme,

Asian Development Bank, and the World Bank. Individual donors, including Japan,

India, Australia, and European and Arab countries (such as Islamic Development Bank

and the Kuwaiti Fund) also have contributed.

In 1956, a bilateral agreement gave United Kingdom access to Gan in Addu Atoll in the

far south, to establish an air facility in Gan in return for British aid. However, theagreement ended in 1976, shortly after the closing of the Gan air station.


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POTENTIAL FOR EXPORT /IMPORT IN THE INDIA/GUJARAT FOR

FOOD INDUSTRY

There is a lots of opportunity in the India & in the Gujarat to export the food

products in the other country. If we study the culture of Gujarat the we become able to know that

people are fond of eating & the girls are fond of making the new variety of food products &eating new varieties.

There are lots of opportunities in the global market for the food products if we

providing the good & qualitative products. There are different people having the different

perception & they all have the different taste. So when the people have the different taste at that

time we have to provide them the different taste as per the geographic & demographic variable.

There are many brands in the world of the food products who has seriously taken

the concept of franchisee. They had make available the same taste in the different country with

the same quality & same price with the same services. So it is the very vital part of the foodindustry.


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BUSINESS OPPORTUNITY IN FUTURE

If we talk about the food industry at that time there is a large opportunity at an internationallevel. The Indian food and drinks market has witnessed strong growth over the past few years.Liberalization of the economy and growing income of middle class population have had apositive impact on consumer spending and consumption in both rural and urban areas. Indianconsumers now spend a significant proportion of their income on food and other essentialcommodities. Numerous other factors like demographic and macro-economic conditions havealso given boost to expenditure on food and beverages in the country.

The total food production in India is expected to double in the next ten years and there is ampleopportunity for huge investments in food and food processing technologies, skills andequipments.

The food processing industry in India stands at US$ 135 billion and is projected to grow with acompound annual growth rate (CAGR) of 10 per cent to reach US$ 200 billion by 2015.

The food industry is divided into various segments namely, milk and allied products (dairy),meat and poultry, seafood, bakery and confectionery, fruit and vegetables, grain, pulses andoilseeds (staple) products, alcoholic and non-alcoholic products (beverages), and packaged food.

The food processing industry in India is witnessing quick growth. In addition to the demand side,there are changes happening on the supply side as well with the growth in organised retail,increasing foreign direct investment (FDI) in food processing and introduction of new products.

The growth has happened because the Government of India has given a priority status to all agro-processing businesses. Government incentives in the field of mega food parks, cold chain andexports benefits are also playing an important role in encouraging food processing.


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CONCLUSIONS & SUGGESTIONS

From the above all these discussion we can say that Maldives has a growing

economy in which the tourism, the fishing, travelling & aviation plays an important role. If we

talk about the food industry we can have a larger opportunity because most of the people are

visiting the Maldives for the fun & enjoyment purpose. The purpose of going to Maldives is

touring of the various attractive locations. This will ultimately lead the travelling business to the

different level.

The development food industry has a wider export opportunity in Maldives

because of booming of tourism business & the lack of the agricultural land. This will help the

exporter of different countries to export agriculture & food products in the Maldives.

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