PRESENTED TOPROF.

SHRIDHAR CHARI

PRESENTED BYGAURAV TAKKAR

ROHIT GOYAL
RAMANDEEP KAUR
RUPINDER KAUR

International Business

Target
RUSSIA

Major Tea Producers in India

Godrej Tea Limited

Hindustan Unilever Limited
Tata Tea Limited
Badireddy Global Private Limited
Guru Sharnam Overseas
Hanumatey Exports Private Limited
Jay Shree Tea & Industries Ltd
Kirti Enterprises
Krishna Agrotech Ltd

World ranking: Tea, by Production (tones) 2012

RANK

COUNTRY

EXPORT VALUE 1000

US$

Sri lanka

1,476,881

China, mainland

965,080

India

867,143

Kenya

858,250

United Kingdom

262,959

WORLD TOP 3: HIGHEST TEA EXPORTS IN THE

WORLD 2012

RANK

COUNTRY

EXPORT VALUE 1000

US$

Sri lanka

1,476,881

2
3

China, mainland
India

965,080
867,143

Kenya

858,250

United Kingdom

262,959

Why Go GLOBAL?
Lower costs and
higher prices opportunities for
profit

Competitive
advantages in new
markets

70% of Russians'
income is
disposable vs.
around 40% in the
West

To increase sales,
revenues, and
profits

Limited or
declining home
market
Excess capacity
Russia: top
location for global
retail

Global consumers'
tastes are
converging. Easier
to offer a globally
standardized
product.

Domestic
competition
entering
international
markets.
Competitive
response. Eg:
Tata Teas entry in
to the U.S., China,
and other global
markets; J.V.
Gokals entry in to
the Russian
market.

Why RUSSIA?
Surging Economy

Real GDP Growth 8.1% to $1.3 trillion

The fastest growing economy in the G8 group of

industrialized nations

Investors pouring money into improved storage

facilities, infrastructure, and logistics

Improving financial services, rule of law, and banking

infrastructure

Opportunities for Indian Tea Companies in

the Russian Tea Market

No

Issue

Aspect

PLANNING
1

The Opportunity

Largest importer of tea in the world

Russia is among the global leaders in terms of tea
consumption (ranking fifth after India, China, Turkey, and the
UK).
Tea consumed by more than 90% of consumers on a daily
basis.
Russia grows less than 1% of the tea it consumes.
Tea production in Russia has shrunk by almost 30% since the
2008 crisis.

Competition

The largest importer in value terms in 2011 was the company

Ahmad Tea Inc., which had 6.6% of the total volume of tea
imports in Russia. The second place was taken by Girnar
Food & Beverages Pvt. Ltd with a share of 5.3%. Akbar
Brothers Ltd. were on the third place with 4.2%.

The Economic-Geographic
environment

Demand: Russian people are well-known for drinking two

things: vodka and tea.
Tea is an extremely significant part of Russian culture.
Tea in Russia is not just a beverage its a social activity with

The Economic-Geographic
environment

Supply:
According to Tea Board chairman Mr Bhanu, the
share of small tea growers in the national production
has been rising.
The overall Indian tea production in 2013 is
expected to touch 1,190 million kg, a jump of around
65-70 million kg over 2012
Darjeeling, Assam, Nilgiri are household words in
markets abroad

The Politico-Legal environment

The political and legal environments of the Russian

govt is very friendly with the indian companies and
worldwide exporters of agro based products.

The Socio-Cultural Environment

Demographics.
Consumer attitudes and behaviour.
Consumer buying behaviour.

No

Issue

Aspect

ORGANIGING
1

Financing Sources

1.Bank Borrowings : Pre-shipment options:Overdrafts, Term Loan and

Leasing/Hire Purchase
2.Trade Credit
3.Venture capitalist
4.Relatives.
Govt allows subsidy if we use our money in the business.
No equity.

The HR Dimension Employing tea experts to check the quality and management trainees
to excel in the competition.

Risk assessment

Slowdown in growth
Budget and current balances are very dependent on oil prices
Weak private banking sector
Weak infrastructures

No
1

Issue
Supply Side

Aspect

IMPLEMENTATION

Time , quality , good margin and supply to suppliers.

High qualty and nominal price because it is healthy then coffee.
On the production front, according to Tea Board statistics, in india
output rose 9 per cent in April-December of the current financial year
to 1,116.98 million kg on account of higher output in Assam.

Demand Side

Russia is a potential market.

Russia pays close to $5 a kg for such tea, while the average cost of the
CTC and orthodox tea imported from India could be $3-3.5 a kg.

Russians are becoming increasingly health-conscious everyday and

tea is being considered and accepted as a health drink.
3

Financial Control

It is expected that with Russias recent accession to WTO, the customs

duty will be reduced from 20 percent to 12.5 percent by 2017, which
will be an additional advantage for Indian tea exports to Russia.

No

Issue

Aspect

GROWTH
1

Control Systems

The Tea Board of India has decided to simplify its export licensing
norms.
Export licences are given under Tea Distribution and Export
Control Order, and a tea-exporter has to hold a valid licence from
the Tea Board. Licences come in two categories temporary and
permanent.

Growth

It is expected that with Russias recent accession to WTO, the

customs duty will be reduced from 20 percent to 12.5 percent by
2017, which will be an additional advantage for Indian tea exports
to Russia.

Strategy

Gain competitive intelligence about market leaders

Track key industry trends, opportunities and threats
Inform your marketing, brand, strategy and market development,
sales and supply functions

Conclusion
Business relation between Russia and India are better.

India tea industry have a great opportunities to enter in russian market.

Benefited of world largest importer country.

THANK YOU
Never fight for wining , fight for pride and try to become the toughest
competetor of your rival ever