EXPORT MARKET

. A

PROJECT REPORT

ON

“Starting up MEAT EXPORT HOUSE in KOLKATTA”

2009-2011

UNDER THE GUIDENCE OF: SUBMITTED BY:

Dr. SAURABH GUPTA RANDHIR KUMAR (39)

PROF. JKPS PGDM (2009-11)

J.K. PADAMPAT SINGHANIA INSTITUTE OF MANAGEMENT AND

TECHNOLOGY GURGAON
EXPORT MARKET

India, the fourth largest buffalo meat exporter in the world, is looking to cash in on its price advantage to
compete in the global market. The Rs 7,000-crore industry has already set its sights on newer markets like CIS
countries this year by strengthening infrastructure facilities and quality standards.

Indian buffalo meat is currently exported to 64 countries. Apart from its traditional markets like Egypt, Malaysia,
Syria and Jordan, the country also exports huge quantities to Turkey, Kuwait, Oman and Saudi Arabia. “We
have opened new markets at Algeria and we expect to enter CIS countries soon,” said a leading buffalo meat
exporter.

According to him, despite increasing cost, Indian buffalo meat is cheaper in the world market. A tonne of Indian
buffalo meat is available for $3,000 to $3,500 in Egypt, $2,900 in Malaysia and $2,700 to $2,800 in the Middle
East. “The buffalo meat from Brazil is costlier by $800 to $1,000 a tonne compared to the Indian product,” he
added.

India’s export has increased from Rs 3,549.78 crore in 2007-08 to Rs 4,839.71 crore in 2008-09. The large
volume of beef being exported from India makes it an important factor in considering the global protein
situation, said Rabobank Food & Agribusiness Research and Advisory (FAR) general manager for
Australia and New Zealand, Justin Sherrard. “The low cost of this product makes it especially attractive in the
Middle Eastern and Asian markets, where the product competes on price with chicken,” he added in a
Rabobank FAR report.
EXPORT MARKET

Rashid Kadimi, president of all India meat and livestock exporters association, and the CEO of processed food
division at India’s biggest meat export house, Allanasons, said that the country has recovered from
recessionary phase and is expecting a marginal growth in the coming season. Allanasons holds a 40% market
share in buffalo meat exports from India. Currently, global demand for the meat is rising in such a pace that it
will outstrip supply soon. Factors like a possible demand surge in Europe, and fall in Australian meat production
make the prospects of Indian meat exporters very bright.

“The competition will ultimately boil down between India and Brazil,” he said. “However, India, which is
exporting nearly five lakh tonne buffalo meat a year, shouldn’t make any compromise on quality,” he added.
The country today has 25 most modern integrated slaughter houses-cum-meat processing units. This apart, it
also has 60 to 70 separate meat processing units. “The government has already started upgrading the existing
slaughter houses to a state-of-the-art infrastructure under public-private partnership,” said an official at
APEDA .

India's 2010 buffalo meat production is forecast to increase by five per cent to 2.7
million tons due to the price competitiveness of Indian meat and expected sustained
demand from meat-importing countries. Exports are expected to grow marginally,
assuming no drop in demand from existing export markets due to the global recession.
Summarised by the TheCattleSite junior editor, Charlotte Johnston.

Production

The national herd is forecast to fall to 281.1 million head, continuing the downward
trend that has been seen for a number of years as drought conditions prevail in some
areas. This fall is due to a declining dairy herd, as buffalo production increases in
popularity due to lower maintenance costs and their diversity.

Buffalo milk is high in fat, which attracts a premium in the Indian market. Their
carcases have less fat and bone, but a higher proportion of muscle.

As well as this, there is favourable export demand, due to the cost competitiveness and
lean meat. It is estimated that India has 57 per cent of the world's buffalo population.

Buffalo meat production is forecast to grow by five per cent in 2010, it is also predicted
that buffalo meat production has increased five per cent this year (2009).

Out of the total production of coarse grains (maize, bajra, sorghum, millet etc.); about
10 per cent is currently utilised for livestock feeds. As the prices of grain increase
steadily, livestock production costs may increase if current conditions persist. Some
small and marginal farmers may also resort to distress sales of animals, leading to
EXPORT MARKET

longer term supply concerns.

Production policy

Previous production policies have been largely based on dairy development, however
things are changing. The Ministry of Food Processing Industries (MFPI) has proposed a
“Grant in Aid” scheme for the modernisation of abattoirs, to be completed by 2012. As
well as this, a National Meat and Poultry Processing Board (NMPPB) was launched in
February 2009. The board will initially be funded by the government for the first two
years and will later be managed by the industry. Its objective is to regulate and
promote the meat industry. A programme 'Salvaging and Rearing of Male Buffalo
Calves', with the purpose of increasing meat production has had a $250 million
financial layout proposed.

Livestock trading in India is done in state government regulated livestock markets. The
processed meat sector, formerly regulated by the Ministry of Food Processing
Industries (MOFPI), is now regulated by the Food Safety and Standards Authority of
India (FSSAI). The Ministry of Health and Family Welfare regulates both domestic
production and importation of meat and meat products. The export of raw meat
(frozen/chilled) is regulated by Raw Meat (Quality Control and Inspection) Rules, 1992.

Consumption
Buffalo meat consumption is forecast to have increased by six per cent throughout
2009 to 2.1 million tons, again due to its cost effectiveness. Annual per capita buffalo
meat consumption is estimated at 2 kilograms, however there is a cultural difference in
India regarding categorical meat consumption patterns. It is estimated that about 20
per cent of the population are vegetarian.

According to the Ministry of Food Processing Industries, processing levels in buffalo

meat (20 per cent) and poultry (6 per cent) are quite low as compared to most
developed countries. Indian consumers prefer to buy fresh meat from wet markets for
further processing at home. Meat from buffaloes is primarily processed for exports.
India has a total meat processing capacity of over one million MT per annum out of
which 40 to 50 per cent is actually utilised. The lack of sufficient cold chain
infrastructure is one of the constraints to processing.

Trade

Buffalo meat exports are expected to grow marginally in 2010, assuming demand
exists. Exports for 2009 are expected to remain much the same as last year due to the
global economic recession, restrictive trade policies, and changing market conditions.

However, exporters are confident that demand will continue for buffalo exports as the
meat from India is very cost competitive in international markets.

Indian buffalo meat is exported to more than 60 countries. Prominent among these are
EXPORT MARKET

emerging markets in Africa (Angola, Congo, Cote D. Ivories, Gabon, Ghana etc.), CIS
(Azerbaijan, Georgia, and Uzbekistan), and traditional markets such as Vietnam,
Malaysia, Philippines, and the Middle East. Exporters are also working to gain market
access in countries like Russia and Indonesia.

Over 90 per cent of buffalo meat exports are boneless and the balance is shipped as
carcases. The buffalo meat share in India is more than 90 per cent. India's total export
earnings during IFY 2007/08 were around two billion dollars from livestock and poultry
products and 1.8 billion dollars from marine products.

Trade policy

Current Government Of India (GOI) regulations prohibit imports of live animals as well
as poultry, ovine, caprine and swine meat and meat products from the United States.
Bovine germplasm from the United States also has limited market access.

The Livestock Importation Act, 1898 regulates the importation of livestock and
livestock products.

Germplasm Trade Regulations

The final import protocol including the procedures and conditions stipulated by the
Ministry of Agriculture (MOA) for bovine semen was released on September 5, 2007.
The MOA has also prepared guidelines for the import and export of bovine germplasm
to ensure that a regulatory procedure is set up for processing received import and
export applications. These regulations were revised in July 2009 to allow for the import
of sexed semen, young bulls, and early pregnant heifers according to their specified
import requirements.

It is estimated that around 70-75 per cent of the indigenous cattle and buffalo
population cannot be categorized under any well-defined breed and their milk yields
are much lower than any pure dairy breed available in India. Additionally, the
productivity level of most defined indigenous breeds is less than 1,000 kgs per head.
Therefore, the GOI is developing policies in favor of new breeding programs and of an
organized artificial insemination breeding network. This effort is expected to lead to
increased demand for non-native germplasm for producing quality crossbred animals.

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

India has always been free from mad cow disease and Rinderpest since 1995. With greater thrust
on value addition and processed products, India’s meat exports are likely to move up the value
chain in a significant manner, the study said.

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

Asian region is the largest importer of Indian meat with Malaysia and the Philippines being the most
favoured export markets, followed by the Middle East. Similarly, the African region has also
EXPORT MARKET

emerged as a strong export destination for Indian meat exports in the last few years.... The meat
export activities are in Russia, Africa and the Middle East, which remain strong, due to the
ability to offer competitive and highly reasonable pricing as a result of our maintaining
substantial meat inventory in India.

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

Major markets

Buffalo Meat Malaysia, Philippines, UAE, Iran, Jordan

Sheep/goat Meat Saudi Arabia, UAE, Oman, Bahrain, Kuwait
Animal Products Portugual, France, UK, Spain, Netherlands

The
information for selecting target market can be collected from various sources like Export
Promotion Council (EPCs)/Commodity Boards, Federation of Indian Export Organisation, (FIEO),
Indian Institute of Foreign Trade (IIFT), Indian Trade Promotion Organisation (ITPO), Indian
Embassies Abroad, Foreign Embassies in India, Import Promotion Institutions Abroad, Overseas
Chambers of Commerce and Industries, Various Directories, Journals, Market Survey Reports.

Russia - Sourcing meat in India

Russia will look at India apart from Turkey and Thailand to satisfy its
EXPORT MARKET

poultry demand to tide over the shortage created by lack of supplies

from the US and Brazil. The poultry imports from the US and Brazil are
banned after detecting excessive usage of chlorine in their products.
Agriculture Minister of India Sharad Pawar is reported to have informed
his Russian counterpart Yelena Skrynnik that his country had the
capability to meet those demands as and when they emerged. While
both ministers met at the sidelines of the BRIC Agriculture Ministerial
Meet, Skrynnik told that though abundant stocks of poultry products
were available at the moment, we would turn to India whenever a
requirement sprang up.
 
A sudden demand for poultry in Russia has resulted due to the ban
imposed on the US and Brazilian poultry as imports from these countries
did not meet Russian poultry standards. According to sources, Russian
sanitary standards are quite stringent than internationally accepted
ones. The Russian poultry imports from the US at some point of time
had even risen up to 80 percent in the past but the new sanitary
requirements enforced since Jan 1 have completely stopped all imports
from the US.
 
It should be recalled that India too faced several import bans including
the existing one from Russia on its meat and poultry products.
Nevertheless, a Russian expert group is expected to visit India shortly to
review this long-standing export ban.
 
Pawar said India was exporting bovine meat and poultry products to 60
countries, including Europe, and there was “enormous potential” for
exports to Russia as well. Likewise, Skrynnik apprised that Russia last
year had imported 600,000 tonnes of poultry and one million tonnes of
meat.
 
However, it is not known that the good news to the poultry and meat
industry of India would turn sour to domestic consumers like that of
Turkey as it has been feared in Turkey that the export approval for
500,000 tonnes of white meat to Russia could jack up domestic poultry
prices significantly. Besides, the Turkish consumers are worried that the
new orders from Russia would even cause severe poultry shortage in the
country even though Turkish Agriculture Minister, Mehdi Eker argues
that production for exports and domestic needs are met separately.

European Union : Beef consumption in the EU continues to remain low following the 1996
BSE scare. Intervention stock of EU beef stood at about 510,000 tonnes at the beginning of
1999, of which Germany had the largest share, followed by UK, France and Ireland. Many
importing countries refuse to purchase intervention beef due to it’s lack of traceability
EXPORT MARKET

and length of time in storage, despite it’s low price. EU beef exports suffered a decline in
1998 as a result of crisis in Russia which is EU’s top export market.

Saudi Arabia - Foreign partners

During the last decade or so Saudi Arabia's trade ties with foreign
countries have gone through a marked change which is reflective of
prevailing global realities. While countries such as the United States,
Japan, Britain and France continue to maintain considerable political and
economic clout, new power centers are equally important. Hence Saudi
Arabia's strengthening of trade relations with China, India, Brazil, South
Korea, South Africa and other such emerging economies makes sense.
Custodian of the Two Holy Mosques King Abdullah's visit to China and
India in January 2006, just a few months after his ascending the throne,
was seen as a strategic shift in the country's foreign policy. Dubbed as
"look east" policy, it has produced the desired result with China
emerging as the second largest source of imports to the Kingdom and
ranking fifth as a destination for Saudi exports.
China
Saudi Arabia and China established diplomatic ties in 1990 and in 10
years time their mutual trade has seen rapid growth. According to a
report of the Saudi Fransi Bank (SFB), Chinese exports rose by 167
percent from SR1.66 billion in 1990 to SR4.44 billion in 2000. During the
same period Saudi Arabia's exports to China increased by 3,463 percent
from SR158 million to SR5.63 billion. Today more than 70 Chinese
companies are doing business in the Kingdom, of which 62 are
construction firms employing some 16,000 Chinese people.
Saudi Arabia has granted China Petroleum and Chemical Corp. (Sinopec)
a SR1.1 billion concession to explore and produce natural gas in a
38,000-km concession area. Sinopec owns 80 percent of a special-
purpose company and Saudi Aramco the remaining 20 percent. Although
Sinopec has less experience in natural gas exploration, the concession is
symbolic of the reciprocal hydrocarbon relationship between the two
countries. China's main exports to Saudi Arabia are garments,
mechanical and electronic products, air-conditioning units and textiles,
while its main imports from the Kingdom are crude oil, liquefied
petroleum gas and primary plastics.
In April 2006, Chinese President Hu Jintao announced his country's
intention that bilateral trade volume between the two countries should
reach SR150 billion by 2010. "It seems that this was achieved by 2008,
as we estimate that Saudi Arabia's exports reached SR116.25 billion and
imports from China reached SR40.12 billion. Also in 2008, the Saudi
EXPORT MARKET

trade surplus witnessed an increase of 180 percent due to the rise in oil
prices, as well as an increase in oil export volumes as the Kingdom
exported to China the equivalent of 720,000 barrels per day," says the
SFB report.
India
After China, King Abdullah's visit to India was equally significant. India is
the 4th largest trading partner for Saudi Arabia and also the fourth
largest recipient of Saudi oil after China, the United States and Japan.
Today, Saudi Arabia meets around 26 percent of India's crude
requirements annually and that is projected to double in the next twenty
years. As with Saudi Arabia and China, energy infrastructure investment
is a major component in the development of Saudi-Indian relations.
During the state visit, King Abdullah and Indian Prime Minister
Manmohan Singh signed the "Delhi Declaration" calling for a wide-
ranging strategic partnership, putting energy and economic cooperation
on overdrive, and committing to cooperate against terrorism.
Two-way trade between the two countries amounted to SR80 billion last
year, according to Mustafa Sabri, secretary-general of Jeddah Chamber
of Commerce and Industry (JCCI).
Main Indian exports to Saudi Arabia are basmati/non-basmati rice, tea,
hand-made yarn, fabrics, made-ups, cotton yarn, primary and semi-
finished iron and steel, chemicals, plastic and linoleum products,
machinery and instruments. Main Saudi exports to India are petroleum
and petrochemical products.
According to the Saudi Arabian General Investment Authority, during the
last two years, it has issued 82 new licenses to Indian companies for
joint ventures or 100 percent owned entities, which are expected to
bring total Indian investment to $467.18 million in Saudi Arabia.
On the other hand, Saudi Arabia is the 22nd biggest investor in India
with investments during 1991-2004 amounting to $228.8 million. At
present, there are 49 Indo-Saudi joint ventures or Saudi-owned
companies in India. An estimated 1.4 million Indians are at present
working in the Kingdom and making immense contributions to the Saudi
economy.

Table 1 Annual Growth Rate of Meat Production in India: 1975-2000

Percent Percent Percent
Item

  1985 2000 2000

Over Over Over
EXPORT MARKET

1975 1985 1975

1. Buffalo Meat 2.3 2.1 2.1

2. Beef 2.0 3.8 2.9

3. Mutton 1.9 2.0 1.9

4. Goat Meat 2.9 2.9 2.9

5. Pig Meat 4.6 14.7 10.6

6. Poultry 4.8 10.0 8.1

Total .5 4.7 4.6

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

decades 1975-2000
Population Slaughte Carcass Meat Share in
Livesto in Millions r Rate Weight Producti Total
ck 1975    200 (%) (Kg.) on in 000 meat
Specie 0 1975    2 1975    2 Tones Producti
s 000 000 1975    2 on
000 (%)
1975    2
000

Cattle 180.1     4.9     6.4 82     724     35.3      

209 10.3 1378 30.0
(4.5)
 (6.7) (28.0)

Buffalo 60.5     92.0 9.3     139     780      38.1     

es 11.0 138 1403 30.5
(23.3)
(-) (-)

Sheep 40.1      31.9    32 9       12 117      5.7     

56.4 .8 222 4.8
(33.3)
(40.0) (12.6)

Goat 69.7      425    38. 9      10 269      13.2     

120.5 0  458 10.0
(11.1)
(46.5) (6.5)
EXPORT MARKET

Pigs 7.0      16.0 25.7    83 31      35 56      2.8     

.6 46.9 10.2
(32.2) (9.4)
(60.0)

Poultry 141.0      0      0 0.8      101      4.9     

637 1.0 527 11.5

TOTAL 498.4    106     2047      100     

0.4 4900 100

(311)
1. Figures in Parenthesis are percentage increase over the previous 2 decades.

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

1999 2000-01 2001-02
Countries 1997 1998

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

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

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

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

Oman 3979 1296 3,690 - -

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

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

South Africa 239 90   52 154

Bahrain 2318 1624   2217 2391

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

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

Qatar 1007 811 564 617 852

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

Others - 1,627 1,500 500

Total 176328 1 53956 167291 288027 243356

EXPORT MARKET

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

Country 1997- 1998- 1999- 2000- 2001-
S.No. 98 99 2000 2001 2002

1. Bahrain 126 328 104.0 57.8 71.2

2. Jordan - 25 25.0 - 11.0

3. Kuwait 3.7 109 103.0 195 25.4

4. Sri Lanka - 10.6 52.0 175.3 69.7

5. Oman 670 596 810.0 963.0 378.5

6. Qatar 42 56 69.8 148.9 113.5

7. Saudi 2966 2677 5526 3210 13

Arabia

8. UAE 3364 3952 5543 6925 3128

9. Others - - - - -

  TOTAL 7546 8648 12419 11902 3915.00

 

Table 5: Export of Poultry Meat for last 5 years

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

11040 7390 8367 15836 19876

 

Table 6: Integrated Processing Plants

Company Processing Location Capacity
S.No Plant Annual
Capacity
(tones)

1. Allanasons Fully - Aurangabad 90,000

Integrated
- Unnao 90,000 
Buffalo Sheep
EXPORT MARKET

Goats - Kolkata 100,000 

-Do- -do- -do- - Hyderabad 90,000 

Partially - Sahibabad 50,000

integrated

2. Hind Agro Fully - Aligarh, U.P. 120,000

Industries Ltd Integrated
Buffalo Sheep -Sahibabad, 50,000
and Goat UP
25,000
Partially - Meerut, UP
Integrated 20,000
- Khurja, UP
-Do- 20,000
-Lawrence
-Do- Rd., Delhi

-Do-

3. Al-Kabeer Fully Hyderabad, 60,000

Integrated AP

Buffalo Sheep
& Goat

4. Arabian Fully Koregaon 50,000

Exports Integrated Maharashtra

Buffalo, Sheep
& Goats

5. Fair Exports Fully Barabanki, 50,000

Integrated UP

Buffalo, Sheep
& Goats

6. MKR Fully Nanded 40,000

Integrated
Maharashtra
Buffalo, Sheep
& Goat

7. Punjab Agro Fully Bassi, Punjab 50,000

Integrated: Chandigarh
EXPORT MARKET

Buffalo, Sheep
& Goats

8. Venkay Fully Pune, 1 Million

Integrated Maharashtra Birds

Poultry

9. Government Fully Deonar, 50,000

Integrated
Maharashtra
Buffalo, Sheep,
Goat

10 Government Fully Goa 10,000

Integrated:

Buffalo, Sheep,
Goats

Table 7: Composition of Meat Cum Bone Meal

Chemical Composition on Dry Matter Basis

7 - 8%
Oil

Protein 50 - 52.0%

Fiber 3.0%

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

Calcium 8.0%

Phosphorus 4.5%
EXPORT MARKET

Methionine+Cysteine 2.4%

Lysine 2.6%

Sodium 0.8%

Salmonella Absent

Lesteria Absent

E. Coli Absent

Coliform Bacteria Absent

l

EXPORT PROCEDURE

 Setting up an appropriate business organization

Set up sole proprietary business organisation.

Name of the company- FAIR MEAT TRADERS.

Registration will be done at ::

Plot No. 14,

New Friends Colony,
EXPORT MARKET

Ecchapur,KOLKATTA

About Company

The company offers all kind of finest quality Halal Meat and Meat Products under its premium
brand’FRESH’.  Our product range includes Buffalo, Goat, Lamb Meat and Offal as well as high
quality Indian Table Eggs under its ‘FRESH’ brand which are sought after by retailers,
wholesalers, caterers, manufacturers of animal by product and pharmaceutical processors.
 
We adhere to the comprehensive quality and hygienic slaughtering assurance as enforced by the
APEDA (Agricultural & Processed Food Products Export Development Authority) as well as the
Shari’a Law strictly under the supervision of Muslim Jammiatul Ulema-e-Hind for Halal Procedure
and also certified by the Veterinary Health Department here in India. Our focus is to maintain
and produce Meat products under quality, testing, labeling and licensing. We work closely with
buyers to ensure we meet the diverse expectation of each market and tailor products to satisfy
specific request.
 
The de-boned and de-glanded frozen meat is packed under hygienically and modernized
processing unit in Food Grade Polythene and then in Sea Worthy Cartons of different weight as
per buyer’s specification.
 

Company Mission

1. Provide our customers with a level of product quality, service and competitive pricing which
meet their expectations.
2. Offer our employees a career opportunity, job security and satisfaction which genuinely meet
their expectations.
3. Acknowledge the contribution of our suppliers who must be satisfied with the ongoing
commercial relationship and the      teambuilding required to fulfill our customer fulfillment
promise.
EXPORT MARKET

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

Details about company :

Capital required – Rs 14,0000(self finance).

Office rent – Rs 8,000/month.

2 computers – Rs 30,000.

Stationary material – Rs 15,000.

Miscellaneous expenditure – Rs 3000/month

Export material cost – Rs 80,000 /month

Employees- 1 receptionist.(Rs 5000/month)

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

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

2 guard(Rs 4000/month)

4 butcher (Rs6000/month)

2helper.(Rs 4000/month)

Mode of operation

Merchant Exporter i.e. buying the goods from the market or from a manufacturer and then selling
them to foreign buyers.
EXPORT MARKET

Selecting prospective Buyers

Addresses of the prospective buyers of the meat can be collected from the following
sources:

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

countries.

 Visiting/ participating in International Trade Fairs and Exhibitions in India and

abroad.

 Contact with the Export Promotion Councils, Commodity Boards and other
Government AgenciesConsulting International Yellow Pages (A Publication from
New York by Dun & Bradstreet, USA or other Yellow Pages of different countries
like Japan,Dubai Etc.)

 Collecting addresses from various Private Indian Publications Directories available

on cost at Jain Book Agency,C-9, Connaught Place, New Delhi-1. (PH. 3355686,
Fax.3731117).

 Collecting information from International Trade Directories/ Journals/periodicals

available in the libraries of Directorate General of Commercial Intelligenceand
Statistics, IIFT, EPCs, ITPO etc.

 Making contacts with Trade Representatives of Overseas Govt. in India and Indian
Trade and Other Representatives/ International Trade Development Authorities
abroad. A list of international trade development authorities abroad like Foreign
Chambers of Commerce etc. is given in Nabhi's EXPORTERS MANUAL AND
DOCUMENTATION.

 Reading biweekly, fortnightly, monthly bulletins such as Indian Trade Journal,

Export Service Bulletin, Bulletins and Magazines issued and published by
Federation of Exporters' Organisations, ITPO, EPCs, Commodity Boards and other
allied agencies.

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

 Consulting ITPO,IIFT,etc.

 Contacting authorised dealers in foreign exchange with whom exporter is

maintaining bank account.

 By corresponding and sending brochures and product literature to prospective

overseas buyers.
EXPORT MARKET

 Participation in buyer-seller meets and meeting the members of foreign delegation

invited by Export Promotion Councils concerned.

 Participation in international trade fairs, seminars.

Channels of distribution

 Direct Exports .

 Export through Overseas Sales Agencies.

Registration

Registration with Reserve Bank Of India: No longer required. Prior to 1.1.1997 it was
compulsory for every exporter to obtain an exporters' code number from the Reserve Bank of India
before engaging in export. This has since been dispensed with and registration with the licensing
authorities is sufficient before commencing export or import.

 The exporters have to obtain PAN based Business Identification Number (BIN)
from the Directorate General of Foreign Trade prior to filing of shipping bill for
clearance of export goods.

 Registration with Regional Licensing: Authorities (obtaining IEC Code Number. For
obtaining IEC number you should apply to Regional Licensing Authority .Before applying for
IEC number it is necessary to open a bank account in the name company / firm with any
commercial bank authorised to deal in foreign exchange.

The duly signed application form should be supported by the following documents:

 Demand draft for payment of the fee of Rs. 1000 or Bank Receipt evidencing deposit of
payment of fees from the Central Bank of India .
 Sale Tax Registration Certificate.
 A copy of the passport in the case of an individual.
 In case the application is signed by an authorized signatory, a copy of the legal authority
letter issued by the firm/company.
 Certificate from the banker of the firm

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

Foreign Trade, Central Exchange Control Deptt.

EXPORT MARKET

Licensing Area, Reserve Bank of India

New Delhi- 6, Sansad Marg,

New Delhi-110 001

Or

Director General of Foreign Trade

Udyog Bhavan, New Delhi

Register With Export Promotion Council

Register with an appropriate export promotion agency by obtaining registration-cum-

membership certificate. The RCMC shall be valid for five years ending 31st March of the
licensing year. The certificate shall be deemed to be valid from 1st April of the licensing year in
which it was issued.

Agricultural and Processed Food Products Export Development Authority (APEDA)

Address : Ansal Chambers No.II, 3/F,6, Bhikaji Cama Place, New Delhi-110 066, India
Tel : 91-11-6192141
Fax : 91-11-6195016
E-mail : apeda@giasd101.vsnl.net.in
Contact Person: Mr. D. Rajagopalan, Chairman; Sqn. Ldr. D.B. Sabharwall
Areas of Interest: Animal Products, Cereals, Floriculture and Seeds, Fruits and Vegetables,
Processed Fruits and Vegetables, Other Processed Food.

Registration With Sales Tax Authorities

Goods which are to be shipped out of the country for export are eligible for exemption from both
Sales Tax and Central Sales Tax. Get yourself registered with the Sales Tax Authority prescribed
under the Sales Tax Act applicable Haryana.

Department of Excise & Taxation, Haryana

EXPORT MARKET

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

Panchkula- 134151
E Mail: mail@haryanatax.com, EPBX 0172-2590997

Acquire Export License

An application for grant of export license in respect of items mentioned in Schedule 2 of ITC (HS)
Classifications of Export and Import items may be made to the Director General of Foreign Trade.

Zonal Joint Director General of Foreign Trade

Ministry of Commerce & Industry
" A " Wing Indraprastha Bhawan
I.P.Estate, New Delhi - 110002

Feasibility Study :

1,11,000/month for salaries 1,11000X12= 13,32,000

8,000/month for rent 8,000X12= 96,000
Computer 30,000 for 2 systems 30000/12 = 2500 per month
Other miscellaneous 3000/month 3000X12= 36000 annually
Stationary charges 15000 annually 15000/12 = 1250 /month.

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

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

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

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

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

Second month

Order processed = Rs 8,00000.

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

EXPORT MARKET

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

Loss=166750-(144000-24000)=46750

Third month

Order processed=Rs 1200000

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

Payment to agency=3 % of 12 lakh=36000

Loss=166750-(180000-36000)=22750

Fourth month

Order = 1100000

Profit = 18 %=1,98,000

Payment to agency = 1.5% =16500

Profit =166750-(198000-16500)=14750

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

With more experience and exposure and self sufficiency in exports there will be direct export to
companies rather than through canalising foreign agents thus saving 3 % per month on sales.
EXPORT MARKET

PROJECT DETAILS

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

Utilities:-

1) Power:

Normally a three phase electricity supply is required for milk processing plants. The power
requirement depends upon the load to be connected and the necessary approval from SEB
should be obtained for connection. Depending upon the position of power supply, standby
generators may be considered for connecting the essential sections.

2) Water:

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

3) Compressed Air:

It will be required for drying the meat ..

4) Machines

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

6) Other Services:

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

  viii) Communication:

Proper communication facilities is essential.

Manpower:

While selecting the site, the availability of manpower should be looked into and the total
requirement of manpower depends on the operations involved and the quantity of meat to be
handled. I will have sixteen employees.

Environmental Aspects and Pollution Control:

There are no hazardous effluents generated from a meat processing plant. However,
EXPORT MARKET

construction of effluent treatment plant is necessary in case of multiproduct large size plants
for treating the effluents before discharging for proper disposal. The final effluent should
meet the requirements of Pollution Control Board and is necessary to get clearance from
them.

Schedule of Implementation

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

Business Prospects:

It involves the present demand-supply for various products, gap in supply and expected
demand for various products. The major competitors and their present share is to be
ascertained. The company projections for the next 3-5 years and the basis for projection
may have to be furnished. The product wise quantities and countries where it is to be
exported need to be mentioned.
EXPORT MARKET