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From India To South Africa

SUBMITED TO PROF. BALASUBRAMANIUM

Group Name

GROUP MEMBERS NAME PRASHANT MAHADIK RUPALI JADHAV MADHURANI VARTAK RAJU PATEL RENUKA YADAV ROLL NO 88 77 117 114 121

About South Africa


South Africa, officially the Republic of South Africa, is a country located at the southern tip of Africa. It has 2,798 kilometres (1,739 mi) of coastline that stretches along the South Atlantic and Indian oceans. About 80% of South Africans are of black African ancestry, divided among a variety of ethnic groups speaking different Bantu languages, nine of which have official status. South Africa is ranked as an uppermiddle income economy by the World Bank, and is considered to be a newly industrialised country.
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INTERNATIONAL DIMENSION
a) Large and longstanding investments by leading European companies and increasingly also from the USA, guarantee the continued interest and involvement in developments in South Africa by the international community. b) Due to South Africa's strategic and geo-political importance in a regional and global context, a high premium is placed on its stability by the international community.

INTERNAL DIMENSION
Fundamental political transitions are almost inevitably volatile. The adoption of the new constitution in 1996. The successful local government elections. A strong spirit of reconciliation. Declining political violence: increasingly.

South Africa market Industry


South Africa has a mixed economy with a relatively high rate of poverty and unemployment. South Africa is also ranked in the top 10 countries in the world for income inequality. South Africa is a popular tourist destination, and a substantial amount of revenue comes from tourism. Illegal immigrants are involved in informal trading. South Africa has four major commercial nodes, Central Business District containing the majority of job opportunities and office space.

Transportation system
Air - South Africa International Airport serves both domestic and international flights. It is the second-largest airport in South Africa and serves as a major gateway for travellers to the Cape region. South Africa has direct flights to most cities in South Africa as well as a number of international destinations. Sea - South Africa's major ports and harbors are Cape Town, Durban, East London, Mossel Bay, Port Elizabeth, Richards Bay, and Saldanha Bay.

South Africa Export & Import


Exports - commodities: gold, diamonds, platinum, other metals and minerals, machinery and equipment Imports - commodities: machinery and equipment, chemicals, petroleum products, scientific instruments, foodstuffs Common Customs Tariff Tax base and tax rates Anti-dumping measures Value-added tax, excise duty and environmental taxes

Tea product in India


India produces and consumes more tea than any other country in the world, except for China, including the famous Assam tea and Darjeeling tea. The cultivation and brewing of tea in India has a long history of applications in traditional systems of medicine and for consumption.

Tea market (national and international) and their share


Consumers of tea in India are increasingly not getting to taste high quality premium tea varieties as most of them are exported and only a small part is supplied in domestic markets. India's total annual tea production is estimated at 1100 million kgs out of which 75%, approximately 850 to 900 million kgs, is produced by the big tea gardens while about 250 million kgs tea is produced by small tea growers with land area ranging from 2 to 20 hectares. Global consumption of tea is around 3,800 million kgs annually.

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Processing Of tea in India


Plucking Withering/ Wilting Disruption Oxidation / Fermentation Fixation / Kill-green Sweltering / Yellowing Rolling / Shaping Drying Aging / Curing

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4ps OF MARKETING
Product: The cost of production of Tea in India continues to be the highest among all tea producing countries. Tea processing is the method in which the leaves from the tea plant Camellia sinensis are transformed into the dried leaves for brewing tea In its most general form, tea processing involves different manners and degree of oxidation of the leaves, stopping the oxidation, forming the tea and drying it. The innate flavour of the dried tea leaves is determined by the type of cultivar of the tea bush, the quality of the plucked tea leaves. After processing, a tea is occasionally mixed with other flavourants or perfumed to alter the flavour of the tea which would be sold in efficient way in South Africa.
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Cont
Place: High quality for a reasonable price can be bought from Assam & Darjeeling and will then be blended and packed. Export: The tea export will be done from India to South Africa and all procedure will be followed as per the norms of two countries.

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Cont
Pricing
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It would be noted that the gains in prices from 2008 after a prolonged recession have been largely offset by significant increases in the cost of key inputs such as fertilizers, coal, fuel, gas and electricity. Tea prices will remain firm in 2013 feels the Indian tea industry. Prices of tea went up by Rs 20-25 per kg in 2012 compared to previous year and the same trend is likley to continue.

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Promotion
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The promotion activates will be followed according to the taste and preference of the country South Africa. Different rules and policy are at South Africa, so as per the need of consumer, promotional strategy will be determine.

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STP

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ADVANTAGES OF TEA EXPORT


The location advantages of a particular market are a combination of market potential and investment risk. Internationalization advantages are the benefits of retaining a core competence within the company and threading it though the value chain rather than obtain to license, outsource, or sell it. Exporting allows managers to exercise operation control but does not provide them the option to exercise as much marketing control

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BARRIERS TO EXPORT TRADE (TEA)


For Small-and-Medium Enterprises (SME) with less than 250 employees, selling goods and services to foreign markets seems to be more difficult than serving the domestic market. The lack of knowledge for trade regulations, cultural differences, different languages and foreign-exchange situations as well as the strain of resources and staff interact like a block for exporting.

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EXPORT PROCEDURES
Entry Outward Loading in conveyance can start after Entry Outward is given by customs officer. Export manifest/Export report Person in charge of conveyance is required to submit Export Manifest or Export Report. Registration with DGFT and EPC Exporter has to be obtain IEC number from DGFT is advance. He should be registered with Export Promotion Council if he intends to claim export benefits. Third party exports Export can be by manufacturer himself or third party (i.e. by exporter on behalf of another). Merchant exporter means a person engaged in trading activity and exporting or intending to export goods [para 9.40 of FTP]
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Cont..
Registration of documents under Export Promotion Scheme Advance authorisation, DEPB etc. should be registered if exports are under Export Promotion Scheme. Shipping Mill Export is required to submit Shipping Bill with required documents for obtaining permission to export. There are five forms : (a) Shipping Bill for export of goods under claim for duty drawback - these should be in Green colour (b) Shipping Bill for export of dutiable goods - this should be yellow colour (c) Shipping bill for export of duty free goods - it should be white colour (d) shipping bill for export of duty free goods ex-bond i.e. from bonded store room - it should be pink colour (e) Shipping Bill for export under DEPB scheme - Blue colour.

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Cont..
FEMA formalities GR/SDF/Softex form (under FEMA) is required to be submitted. Noting, assessment, examination The shipping bill is noted, goods are assessed and examined. Export duty is paid, if applicable. Certification of documents for export incentives If export is under export incentives, relevant documents are checked and certified. Then proof of export is obtained on ARE-1. Let export order Conveyance can leave only after Let Export order is issued.

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Challenges

Exporting to foreign countries poses challenges not found in domestic sales. With domestic sales, manufacturers typically sell to wholesalers or direct to retailer or even direct to consumers. When exporting, manufacturers may have to sell to importers who then in turn sell to wholesalers.

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Case Study

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