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A

GLOBAL COMPREHENSIVE PROJECT REPORT

ON

“SPAIN COUNTRY IMPORT-EXPORT ON TEA INDUSTRY

Submitted to

R.B. INSTITUTE OF MANAGEMENT

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDENCE OF

Faculty Guide

Ms. Heena Thanki

Head of Director

Submitted By

Bhavna Ainani (127460592003)

Dhaval Patel (127460592085)

Hiral Patel 127460592087)

Kiran Patel127460592091)

Vipul Pateliya (127460592104)

M.B.A-SEMESTER 4

MBA PROGRAMME

Affiliated to

Gujarat Technological University

Ahmedabad



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Student declaration

We, following students, hereby declare that the Global/ Country Study Report titled

Spain & India import-export on tea industry in is a result of my/our own work and our

indebtedness to other work publications, references, if any, have been duly

acknowledged. If I/we are found guilty of copying any other report or published

information and showing as my/our original work, or extending plagiarism limit, I

understand that I/we shall be liable and punishable by GTU, which may include ‘Fail’

in examination, ‘Repeat study & re-submission of the report’ or any other punishment

that GTU may decide. Name of Institute with code _______

Country : Spain

Semester : 3rd

Group no enro no name sign selected industry

3 HIRAL PATEL spain &India

DHAVAL PATEL import-export

BHAVNA AINANI on tea

KIRAN PATEL industry

VIPUL PATELIYA



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Institute Certificate

“Certified that this Global Country Study and Report Titled “Culture & Education in

Spain” is the bonfide work of attached student list with enrollment numbers, who have

carried out their research under my/our supervision. I/We 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. I/we have also checked the plagiarism

extent of this report which is ……… % and the separate plagiarism report in the form of

html /pdf file is enclosed with this.

Signature of the GCSR Coordinator/s

(Name, Designation, Email ID and Contact No. of GCSR Coordinator/s)

Signature of Principal/Director

(Name of Principal / Director)



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PREFACE

This study was the Confederation of Spain Education and Culture.

The study on education raises profound and far-reaching implications for all

those involved in the creation of the Spain higher education area, notably the

challenges represented by education impact at the local, regional, national and

Spain levels.

It is important that reactions to these multi-level result in a co-ordinated set of

Spain culture responses. Culture should be viewed as a positive set of

opportunities and not something to be feared. It is a new and permanent reality in

Spain culture life.

The globalisation of higher education manifests itself in various forms, of which

education is perhaps the most visible. It is something that cannot be ignored.

Education has clear long-term implications for the nature and structure of

educational provision in Spain.

The report identifies vital issues that demand our serious consideration. Itsuggests a positive way forward and provides a coherent and detailed set ofsolutions for all stakeholders involved in building a Spain of knowledge. Itsmessages should not be ignored.



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Acknowledgement

The present work are a result of perpetual encouragement, discussion & valuable

guidance of Henna Thanki to whom, we are thankful for guiding thought out the entire

project. We humbly please our feeling & deep essence of gratitude.

We are also thankful to “GTU” for providing us the opportunity to understand the country

as a part of mba programmed.

We express our deep some of gratitude towards our guide, without whose kind help this

project Study would have been extremely difficult. She has helped me with her valuable

suggestions right from.

The beginning till the final draft of the report. We are also grateful to mrs.heena thanki

HOD of the R.b. institute of management studies for their kind effort to make all therequired facilities available & gave their valuable suggestions in preparing this project

report.



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Index

Sr. No. Title Page No.1 Student declaration 22 Institute Certificate 33 PREFACE 44 Acknowledgement 5

5 Summary on Spain culture & education 76 Summary on Spain-India Export-Import 127

Tea Industry in India21

8 Health Benefits of Tea 229 Types of Tea 2310

Production of tea in India25

11 Process of production 2612 Top tea brands in India 2913 India tea industry present scenario 32

14 Top tea producing states in India 3415 SWOT analysis of Indian tea industry 3516 PORTER'S FIVE FORCES MODLE of Indian tea

industry37

17 Tea Production April to September 2012-2013 3818 Export of Tea 2011-12 to 2012-13 4019 Analysis of India’s Trade in Tea 4320 Tea Development 4321 Achievements during 2012-13 4422 Spain 4623 Strategy 47

24 Procedure of export 4725

How to Get an Export License in India

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26 HOW TO START AND OPERATE YOUR OWNPROFITABLE IMPORT/EXPORT BUSINESS ATHOME

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27 INDIA-SPAIN RELATIONS 5228 Bilateral Agreements and Treaties 5329 Trade and Investment 5330 Science and Technology 54

31 Cultural and Academic Relations 5532 PROMISING SECTORS OF INDO-SPANISH

COOPER56

33 Current Scenario 5634 Current and Future Challenges 5835 Bibliography 59



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Summary on Spain culture & education

The cultures of Spain are European cultures based on a variety of historical influences,

especially that of ancient Rome, but also the pre-Roman Celtic and Iberian culture

In the late 19th and 20th century, Spain became the diversity of international culture

Symbols

The red and golden yellow colors of the flag of Spain was first used in the late 1700s by

the King of Spain, as he tried to easily differentiate his ships from those of other

countries.

Culture

Culture of Spain has a heavy Latin influence.

• Romans also influence Spanish culture because Spain was once part of the Roman

Empire. Roman architecture and art is common throughout Spain.

Bull Fighting

This is one of the most dangerous sports, and only Spain.

Bulls integral part of the traditions in Spain

Music in Spain

Flamenco, a genus of Andalusia music. But here also the existences of rock music,

people, pop and hip hop in Spanish lands.

Spanish Dance

Flamenco

Classical Spanish Dance

Folklore

Eighteenth Century Dances

Classical Ballet Dance

Castanets

Spanish Fashion

Be it formal suits and elegantly cut suits.

Spanish Family

• The structure and family size vary, but generally, people live to fewer children and

fewer people live in their homes with family



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Food

The Spanish begin the day with a light breakfast

They usually eat lunch at 2 or 3 in the afternoon every day.

Dinner is eaten at any time between 20:00 and midnight

Festival of Spain

Seaman Santa

San Fermin (Pamplona Bull Run)

Pamplona Bull Run Essentials

Tomatina Tomato fight

Feria de sevilla

Christmas & New Year

Carnival

Birth ceremony

In the 16th century, bath birth and name the child is usually held on the fourth day after

birth. It was attended by parents and relatives, who gathered at the house before

sunrise to party and watch the ceremony.

Marriage

Spanish authorities can take 30 to 45 days to approve an application for marriage

Civil Marriage

Normally needs the documents

Religious Marriages

• For a religious ceremony, couples first need the permission of the civil authorities

• Have each separate religious documentary requirement.

• In most religious marriages in Catholic Spain, the demands of the Catholic Church Marriageable age

Generally are set at eighteen for men and sixteen years for women.

Death

• People who put flowers on the graves of beloved family.



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Society Overview

• Spain established colonies in the New World from Alaska to Cape Horn with the

exception of Brazil and the eastern parts of Asia.

• Much of the culture in Spain revolves around commerce, but it was the main source of

revenue for the government and the people.

Education in Spain

The school is free and compulsory for all children from age six to sixteen

All students receive basic vocational training in secondary education

Religious education is available but optional

Schooling

Children ages 3-5 have the opportunity to attend preschool.

Pre-school is free for all students in Spain.

Primary school for ages 6-11. Secondary schooling begins when the child is

between the ages of 12-15.

Nursery education

0-6 years organized in two stages of three years each. This is a volunteer with the

second stage of 3-6 years being widely accepted

Primary school

• From 6-12 years of age, compulsory and free in public schools and subsidized.

Secondary level

Compulsory secondary education (CSO): 12-16 years.

The success of students leaves school with a certificate of high school.

Vocational Training

Vocational training is also a common ability after secondary education

1. Middle level training

2. Higher level training



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Spain Baccalaureate (Bachillerato)

The baccalaureate [secondary certificate] lasts for two years, usually 16-18, and confers

bachelor's [degree].

Higher education in Spain

• Degree Program - Basic program undergraduate and / or general education-oriented;

• Advanced training program of the Master specialized or multidisciplinary, academic orprofessional oriented;

• Doctoral Program - Advanced training in research techniques.

Public universities

The institutions created by the Spanish Parliament Act, proposed by the Government

Private Universities

Private universities are the institutions created by natural or legal persons

Admission

Undergraduate Studies (First cycle)

Students who have completed upper secondary education and have a certificate of

completion valid school and have qualified higher education studies

Master’s Degree (Second Cycle)

Students, who are interested in the Master's program in Spain, must have a bachelor'sdegree or equivalent relevant.

PhD studies (Third Cycle)

The students, who are applying for the doctoral program at a university in Spain, you

must have a Master's degree or equivalent diploma.

Documents Required

• Completely filled application form.

Proof of sufficient financial assets to finance the studies.

A passport valid for the period of stay in Spain

• Full details of educational training, including subjects and grades

• If the original documents that a student needs to present the English translation of it,

along with the application form



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• IELTS / TOEFL as proof of English proficiency.

Application Forms

• To apply for Spanish universities, you can download the application forms directly from

their respective websites.

Admission Procedure

• Download the application for college for their respective websites. Fill the completed

application form along with all relevant documentation. Send the application form before

the deadline

Tuition Fees

At Public Universities

The degree of public universities in Spain can be anywhere between 535 euro and

1,280 euro per academic year

At Private Universities

Private institutions in Spain charge tuition fees much higher than public universities.

Tuition fees for undergraduate studies may fall in the range of 5,335 Euros and 12,805

Euros per academic year, depending on the course



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Summary on Spain-India Export-Import

Tea Industry in India

The tea is just staple drink in India, but as a staple drink here and a day without it

is impossible and incomplete. The Indians prefer their steaming cup of tea, because for them it acts as an

energy booster and is simply indispensable.

This popular beverage has a lot of health benefits too, and its antioxidants help to

eliminate toxins and free radicals from the blood.

Tea production in India was 979,000 tonnes from 2009

In terms of consumption, production and export of tea, India is the world leader.

It is responsible for 31% of global tea production. India has maintained its

leadership in the tea industry in the last 150 years

There is a wide variety of tea offered by India; Green Tea with sweet tea

Darjeeling and Assam tea strong, the range of tea available in India is

unparalleled.

Health Benefits of Tea

• Study finds tea drinkers have lower blood pressure

• Tea may lower cholesterol and protect against heart disease

• Black tea can lower "bad" cholesterol

• Green and black tea can slow the spread of prostate cancer

• Tea may protect against cancer caused by snuff.

• Green tea and white tea fight colon cancer

Types of Tea

White tea

Yellow tea

Green tea

Oolong tea



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Black tea

Production

In 2003, world tea production was 3.21 million tonnes.

In 2010, world tea production reached over 4,520,000 tones after rising 5.7% between2009 and 2010 production increased by 3.1% between 2010 and 2011. 'S largestproducers of tea are the China, India, Kenya, Sri Lanka and Turkey

Tea Production April to September 2012-2013

In the period September 2012 tea production has fallen by 2.8% since August 2012.

Tea production in the country rose marginally 690.31million kg in the first half of the

financial year on the back of increased production in northern India.

The country produced 688.67 million kg of tea in April and September 2011 at 12.

Tea production in north India, comprising the main tea-producing regions of Assam andWest Bengal rose 1% to 562.67 million kg in April-September 2012-13 compared to559.82 million tax kg in the previous year

Tea manufacturing Process

Withering

Rolling

Roll-Breaking

Fermentation/Oxidization

Firing & baking

Sorting & grading

Top tea brands in India

Tata Tea

Society Tea

Duncan’s Double Diamond Tea



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Brooke Bond Red Label Tea

Taj Mahal Tea

Wagh Bakri Tea Group

Lipton Tea

Tetley Tea

Marvel Tea

Pataka Tea

India tea industry present scenario

At present, tea prices have increased due to dry weather during the early part of 2012,followed by the recent floods in Assam.

In 2011 the industry produced 988 million kilos of tea and it is expected that totalproduction for 2012 to be the same.

In July 2012 Tea prices had increased by 18 percent compared to July 2011.

From 2001-2010 this figure was 73 INR . This will occur by the application of black teais more production levels.

India is the largest consumer of black tea and exports 17 to 20 percent of totalproduction compared to Kenya and Sri Lanka to export 90 to 95 percent of total

production due to smaller markets

A portion of the tea, which is supposed to be used for exports is being redirected tolocal consumers in India. In 2011, 192 million kilos were exported , but in 2016 thefigure is supposed to fall to 127 million kg

Top tea producing states in India

Himachal Pradesh

Arunachal PradeshBiharDarjeeling

AssamKeralaSikkimTamil Nadu



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SWOT analysis

Strengths

Strong production base with 75 percent of production is explained by organized

sector covering 1,600 landscaped property of nearly 1,100 institutions competentmanagement staff. Strong research backing of well-established research institutions. Availability of

facilities modernized and improved manufacturing. Labour Welfare Laws protecting workers

Weaknesses

Decreased availability of labor especially in southern India. Remote location of

plantations and transport of long-distance tea gardens tea outlets . Lack of

infrastructure access roads to the gardens

Difficulties in introducing mechanization of field operations due to topographical

constraints and quality.

Lack of quality control mechanism particularly for teas sold through private sales

Opportunities

Specify the gap between supply and demand due to the increase in the growthrate of consumption in the major producing countries.

Producing countries to agree the formation of an exclusive forum to resolve their

differences on issues of common interest.

Threats

The production in countries such as Sri Lanka, Vietnam Round-the-year. Low

cost of tea production in Kenya, Vietnam and Indonesia, etc.

Better developed packaging and bagging ability Sri Lanka

Other producing countries produce better quality of tea



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PORTER'S FIVE FORCES MODLE:

Industry Rivalry (High):

Market is dominated by a large number of unorganized players.

There are low switching costs

Bargaining Power of Buyers (High):

There are a large number of buyers who buy the product

bargaining power of buyers is high and buyers have many options available.

Bargaining Power of supplier (Low):

There are a number of tea products in India

Threat of substitute (moderate):

Substitutes –coffee, cold drinks, juice.

Threat of new Entrance (high):

Large untapped rural market for branded tea segment in rural India and Indiantea in global market.

Export of Tea 2011-12 to 2012-13

Data from the Tea Board of India show that last year, tea production in the country was

set at 1,126 million kg.

During January and August, tea production has increased by 6.2 percent to 705 million

kg, compared to 664 million kg in the corresponding period last year.



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In the first quarter January to March 2013 , exports increased by approximately 34

percent to 59.8 million kg

The total volume of exports in 2011-12 was 214 million kilos, compared to 214 million kgin 2010-11.

Total foreign exchange earned during 2011-12 was Rs. Rs 3.305 million compared toRs. Rs 2.996 million in 2010-11

During 2012-13 (April-December) exports are estimated at 156.38 million kgs valued at

Rs. 3062.69 crore with a price of Rs.195.85 per kg against 169.65 million kgs valued at

Rs. 2617.57 crore with a price of Rs.152.04 per kg during the corresponding period last

year.

Tea DevelopmentThe formulation and implementation of development plans for increasing production andproductivity of tea plantations, modernization of tea processing , packaging and facilities

Financial assistance for the above activities extending through plan approved for

implementation plans

Total subsidy paid during the period of the XI Plan was Rs.515 Cr . ( Approx.) . Thephysical achievement over the past five years is on the table

Spain

India also seems to export tea to Spain very less used for commercial purposes.

Spain is a country of coffee consumption.

As a result, the tea does not have a great tradition in Spain, although the demand for

which is increasing

Spanish used type of tea is following

Black tea.

Green tea

Fruit tea



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Lime blossom tea

Strategy

Export strategy was used. In Spain, the black tea and green tea is the most demand.

Procedure of export

STEP1: Enquiry

STEP 2: - Performa generation

STEP 3: Order placement

STEP 4: Order acceptance

STEP 5: Goods readiness & documentation

STEP 6: Goods removal from works

STEP 7: Documents for C & F agent

STEP 8: Customs Clearance

STEP 9: Document Forwarding

STEP 10: Bills negotiation

Step11: Bank to bank documents forwarding

STEP 12: Customs obligation discharge

STEP 13: Receipt of Bank certificate


Export License

Export of Samples

Processing of Shipping Bill

Let Export Order



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HOW TO START AND OPERATE YOUR OWN PROFITABLE

IMPORT/EXPORT BUSINESS AT HOME

1. Making Contacts

2. Analyze the Market

3. Where to Find Help

4. Making Connections

5. Getting the Goods

6. Making an Agreement

7. The Sale

8. Terms of Shipping

9. The Freight Forwarder

10. The Letter of Credit

11. Delivering the Goods

INDIA-SPAIN RELATIONS

Bilateral Agreements and Treaties

Agreement on Trade and Economic Cooperation (1972) Agreement on Cultural Cooperation (1982). The CEP for the period 2005-08 was

signed in March 2005 Civil Aviation Agreement (1986). Double Taxation Avoidance Agreement (1993). Bilateral Investment Protection and Promotion Agreement (1997). Extradition Treaty (2002) MoU on Institutionalization of Political Dialogue (2006) Mutual Legal Assistance treaty on Criminal Matters (2006). MoU between Technology Development Board (TDB) and the Centre for

Development of Industrial Technology (2006).



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Trade and Investment

India-Spain bilateral trade in the year 2012 stood at USD 5.17 billion (Exports fromIndia: USD 3.56 billion; imports from Spain: USD 1.61 billion).

Bilateral Trade between India and Spain from January to November, 2013 stood at USD4.33 billion; Spain’s exports to India during the given period stood at USD 1.36 billion

and India´s exports to Spain stood at USD 2.96 billion.

Science and Technology

The Technology Summit was inaugurated by the Hon´ble Minister of Science &Technology.

A 17- member delegation comprising of officials of DBT, representatives of Academia,Industry and FICCI visited Madrid and Barcelona from May 20-22, 2013.

Cultural and Academic Relations

Cultural performances, film shows and exhibitions are regularly organized to strengthenmutual understanding of the societies.

Academic exercises like seminars and colloquiums facilitating study of each other’shistory and culture and the provision of scholarships play an important role in this matrix

PROMISING SECTORS OF INDO-SPANISH COOPERATION

Science and TechnologyEnergyInformation and Communication TechnologyBiotechnology including Pharmaceuticals, Life Sciences and Nano Technology Agriculture Technology & Food ProcessingInfrastructure

Current and Futu re Challenges

Despite the booming business relations between the two countries, Indian companies

expanding into Spain and vice versa, need to be aware of the language barriers and thecultural differences that exist between the two countries.

Cultural sensitization is a topic, which can be dealt easily, if identified and recognized intime.

All the experts on the panel agreed that the best way to enter either market is throughJoint Ventures in a specific industry as a testing ground.



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Tea Industry in India

The tea is just tea in India, but as a staple drink here and a day without it is impossible

and incomplete. The Indians prefer their steaming cup of tea, because for them it acts

as an energy booster and is simply indispensable. This popular beverage has a lot of

health benefits too, and its antioxidants help to eliminate toxins and free radicals from

the blood.

Originally tea comes from the east and north parts of India, but the tea industry has

expanded and has grown tremendously in recent years, making India the largest

producer and producer of tea in the world. Tea production in India was 979,000 tonnes

from 2009. In terms of consumption, production and export of tea, India is the world

leader. It is responsible for 31% of global tea production. India has maintained its

leadership in the tea industry in the last 150 years. The total turnover of this industry is

about Rs.10, 000 crore. Since 1947, tea production in India has increased by 250% andthe land is used for production has increased by 40%.

Even the export sector in India has seen an increase in the export of this product. The

type of total net change in India's roughly Rs.1847 crores per year. The tea industry in

India is labor intensive, ie, which depends heavily on human labor rather than

machines. This industry employs over 1.1 million Indian workers and nearly half of the

workforce is women

There is a wide variety of tea offered by India; Green Tea with CTC tea for sweet tea

Darjeeling and Assam tea strong, the range of tea available in India is unparalleled.

Indians take great pride in their tea industry, due to the dominance of the industry as a

major source of foreign exchange earnings and a major contributor to India's GDP.



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The three prominent regions of tea cultivation in India are Darjeeling, Assam and Nilgiri.

While Darjeeling and Assam are found in the northeastern, Nilgiri is a part of the

southern region. A visit to these regions is made truly memorable by endless rolling

green mats that are tea gardens and one cannot help but feel captivated and enthralled

at the sight of the huge tea plantations. Most tea factories are located within thepremises of the tea plantations and this is what accounts for the freshness of the tea.

The tea production process has a number of procedures and processes. The process

begins with plucking tea leaves in tea plantations by employees carrying a basket on

her head and ends with the production of the final tea.

There are mainly two forms of tea production in India namely the production of CTC and

orthodox production. CTC is an acronym crush, tear and curl. The tea produced by this

method is mostly used in tea bags. Orthodox production method has five stages,

namely, fulminant, rolling, fermentation, drying and finally storage. You can not compare

the two varieties, since their quality depends on factors such as rain, earth, wind andmethod of pluck tea leaves and both have a unique charm of their own.

Health Benefits of Tea

• Contain fluoride to protect your teeth and remove bacteria properties to maintaingood breathing.

• Study finds tea drinkers have lower blood pressure

• Tea may lower cholesterol and protect against heart disease

• Black tea can lower "bad" cholesterol

• Green and black tea can slow the spread of prostate cancer

• Tea may protect against cancer caused by snuff.

• Green tea and white tea fight colon cancer

• Hot tea may reduce the risk of some types of skin cancer

• The consumption of green tea may reduce the risk of stomach cancer green andoolong teas reduce risk of hypertension

• Tea believed to boost the body's defenses

• Tea may play a role as a fighter AIDS



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Types of Tea

Type Water temp. Steep time Infusions

White tea 65 to 70 °C (149 to 158 °F) 1 –2 minutes 3

Yellow tea 70 to 75 °C (158 to 167 °F) 1 –2 minutes 3

Green tea 75 to 80 °C (167 to 176 °F) 1 –2 minutes 4 –6

Oolong tea 80 to 85 °C (176 to 185 °F) 2 –3 minutes 4 –6

Black tea 99 °C (210 °F) 2 –3 minutes 2 –3

White tea:

In China, the rare tea shorter evaporation, not rusty, new shoots of growth, not theleaves, sweet and mild flavor are collected This is the rarest variety of tea. The leavesare picked and harvested before they are fully open and the buds still have a coveringof white hairs on them. White tea undergoes less processing and is not fermented. Ithas a mild, sweet flavor and contains less caffeine and more antioxidants than anyother tea.

The ideal water temperature for brewing white tea is 76 to 85 degrees Celsius. Theleaves should be soaked in water for at least seven to eight minutes.



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Green tea

Evaporation for 8-24 hours , there is a process of oxidation , very popular in China andJapan, low in caffeine and high in antioxidant properties, aid digestion . When tealeaves are collected , generally , where dry , and when this occurs, the oxidation iscarried out . When green tea is made , are not allowed to rust. The leaves are dried veryquickly , either in a pan or oven for drying and then stored . This process preserves the

catechism polyphenols and flavonoids that make drinking green tea a healthy andbeneficial option . But green tea has a grassy taste and flavor is lost within a year .To prepare a cup of green tea , the water is over 80 degrees Celsius should be pouredover the tea leaves . Let the leaves soak in water for about two or three minutes. Someof the benefits of green tea are its antioxidant properties that help prevent cancer ,increase metabolic rate and reduce fat and even reduce the likelihood of heart disease .Because of its short preparation time, green tea is stimulating

Black tea:

The highest in caffeine, evaporated 8-24 hours, roll the leaves, fully oxidized, strong in

flavor of this tea is stronger than any other type of tea. The caffeine content is higher inblack tea compared with the less oxidised varieties. It retains its flavor for many years.

The black tea is the tea that enjoys the highest sales in the world.

To prepare a cup of black tea we need a teaspoon of tea leaves for a cup of tea. The

tea leaves are immersed in boiling water for at least three or four minutes before it is

poured and served. Unsweetened plain black tea contains antioxidants and is beneficial

in reducing cardiovascular disease.

Oolong tea:

More difficult to process, partially oxidized, evaporate for 8-24 hours, throw to hurt theedges of the leaves are of Chinese origin, this tea is a cross between the popular blackand green varieties and healthy both styles commonly associated with this tea are



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green and amber. The uniqueness of this tea is attributed to the different way in whichthe leaves are prepared and due to this reason, in addition to being deprived of leafygreen tea flavor it tastes different from other types of tea also.

Yellow tea

This tea is processed in a manner similar to green tea, but instead of drying immediatelyafter fixation is stacked covered and gently heated in a moist environment. This initiatesthe oxidation in the leaf chlorophyll through non-enzymatic and non-microbial media,resulting in a yellowish or greenish-yellow

Production

In 2003, world tea production was 3.21 million tonnes. In 2010, world tea productionreached over 4,520,000 tones after rising 5.7% between 2009 and 2010 production

increased by 3.1% between 2010 and 2011. 'S largest producers of tea are the China,India, Kenya, Sri Lanka and Turkey

WORLD TOP 10: HIGHEST TEA EXPORTS IN THE WORLD

RANK COUNTRY EXPORT VALUE 1000 US$

1 Sri Lanka 1,476,881

2 China, mainland 965,080

3 India 867,143

4 Kenya 858,250

5 United Kingdom 262,959

6 Germany 229,383

7 Viet Nam 204,018

8 United Arab Emirates 191,814

9 Indonesia 166,717

10 Poland 139,393



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Tea manufacturing Process

Once the fresh leaf is brought to the factory, the sheet is subjected to a process that

transforms fresh leaf in black tea, or "tea made." On average, 22 to 25 kilos of tea made

is made to from each 100kgs of fresh tea leaves. This process is one that has been

honed and perfected over more than a century and requires a lot of knowledge and

experience to ensure the quality of tea is not compromised at any stage manufacturing

Withering

Withering is most critical in the black tea manufacturing process. The primary goals areto reduce fulminant moisture content of the leaf and to soften , so it becomes pliableand resists posterior process of " balancing " without spalling . In addition , controlledremoval of moisture from the fresh leaves to activate a series of biochemical reactionsis required. These enzymatic changes are responsible for the production of variousproducts to achieve desired biochemical quality parameters in the tea made .Withering the duration depends on the temperature and humidity and can vary from 18

to 24 hours , with the season and the region is also a factor. A neglected cross as anunequal distribution will not result in a good area, even from the best type of blade.Good wither prevent blade breakage , but will give a twist. Spirits of fresh leaves arebitter , but the well dried leaf : the sweetness

Rolling



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The purpose of the lamination is to achieve the final curved appearance and to breakthe cell walls of the sheet in order to release the essential oils to initiate a chemicalreaction of the fermentation . The lamination process is what releases the color,strength , aroma and flavor of the liquid ultimately pour into our cups .In this process the green leaf is replaced by a coppery brown texture. The application ofpressure during rolling is important to express the juice and the rolling cycle consists ofpressure applied and then released . During leaf juices extend themselves over the

sheet, which are dried and kept in a soluble state. When the cells of the leaves werebroken after lamination withered leaf , leaf enzymes in contact with oxygen in the airwhich initiates the chemical reactions necessary for the production of black tea .

Roll-Breaking

Roll breakup has two main objectives. To remove the twisted sheet laminates andprevents outbreaks obstructing circulation, and further facilitate the twisting action of thelarge sheet. Furthermore, the sheet would have increased in temperature during therolling process also cooled. Automatic deployment is simply an inclined board shakingback and forth at high speed. The fineness of the mesh allows only small tea particlesthrough, which is part of a fine spray into a container below. The rest is shaken to theend of the table, and is taken back to the rolls, where the process is replicated. Thiscycle is generally repeated at least four times.



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sheet in hand, are lighter and less strong color. The quality of tea is not related to thedegree .The graded teas are finally weighed and packed in plywood boxes , bags or multi-walledcorrugated cardboard - all lined interior with foil . Each chest bag or cardboard boxrepresenting its outline with details such as the name of the plantation, the tea grade ,weight, invoice number and so on. This is the final process in the manufacture of blacktea and tea chests is what constitutes ' made tea '

Top tea brands in India

1 Tata Tea

2 Society Tea

3 Duncan’s Double Diamond Tea



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4 Brook e Bond Red Label Tea

5 Taj Mahal Tea

6 Wagh Bakri Tea Group



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7 Lipton Tea

8 Tetley Tea

9 Marvel Tea

.

10 Pataka Tea:



32

India tea industry present scenario

• At present, tea prices have increased due to dry weather during the early part of

2012, followed by the recent floods in Assam.

• In 2011 the industry produced 988 million kilos of tea and it is expected that

total production for 2012 to be the same.

• Between January and July 2012, the production of tea in India was 4 percent

lower than the same period in 2011.

• Demand has been steadily increasing in the meantime, and this has led to an

increase in prices of commodities such as black tea, the average price has

increased by 10 percent compared to the previous period.

• In July 2012 Tea prices had increased by 18 percent compared to July 2011.

• From 2001-2010 this figure was 73 INR . This will occur by the application of

black tea is more production levels.

• India along with Kenya and Sri Lanka is one of the largest tea producers in the

world. If any local or climate problem alters the production of tea in these

countries, then , along with the problems of price, it could have serious concerns

for the global tea industry.

• Experts have already had a serious situation with regard to the balance

between production and consumption of tea.

• Ther e has been a significant decrease in inventory as is evident from the

statistics.

• India along with Kenya and Sri Lanka 60 to 62 percent of the global supply of

black tea.

• India is the largest consumer of black tea and exports 17 to 20 percent of tot al

production compared to Kenya and Sri Lanka to export 90 to 95 percent of total

production due to smaller markets .

• A portion of the tea, which is supposed to be used for exports is being



33

redirected to local consumers in India. In 2011, 192 million kilos were exported ,

but in 2016 the figure is supposed to fall to 127 million kg .

• It is expected that by 2017 tea production in India will grow at a compound

annual growth rate of 1.6 percent , while for consumption in the same period , the

rate has been estimated at 1.8 percent .

• At present, tea prices have increased due to dry weather during the early part of

2012 , followed by the recent floods in Assam.

• In 2011 the industry produced 988 million kilos of tea and it is expected that

total production for 2012 to be the same.

• Between January and July 2012 , the production of tea in India was 4 percent

lower than the same period in 2011.

• Demand has been steadily increasing in the meantime , and this has led to an

increase in prices of commodities such as black tea , the average price has

increased by 10 percent compared to the previous period .

• In July 2012 Tea prices had increased by 18 percent compared to July 2011.

From 2001-2010 this figure was 73 INR . This will occur by the application of

black tea is more production levels .

• India along with Kenya and Sri Lanka is one of the largest tea producers in the

world. If any local or climate problem alters the production of tea in these

countries, then , along with the problems of price, it could have serious concerns

for the global tea industry.

• Experts have already had a serious situation with regard to the balance

between production and consumption of tea.

• There has been a significant decrease in inventory as is evident from th e

statistics.

• India along with Kenya and Sri Lanka 60 to 62 percent of the global supply ofblack tea.

• India is the largest consumer of black tea and exports 17 to 20 percent of total

production compared to Kenya and Sri Lanka to export 90 to 95 percent of total

production due to smaller markets .



34

• A portion of the tea, which is supposed to be used for exports is being

redirected to local consumers in India. In 2011, 192 million kilos were exported ,

but in 2016 the figure is supposed to fall to 127 million kg .

• It is expected that by 2017 tea production in India will grow at a compound

annual growth rate of 1.6 percent , while for consumption in the same period , therate has been estimated at 1.8 percent .

Top tea producing states in India

The leading states with regards to tea production in India may be enumerated as below:

State Produce teaHimachal Pradesh Black Tea , Green Tea

Arunachal Pradesh Black Tea , Green TeaBihar Silver Needle , Jasmine Tea , White Peony TeaDarjeeling Darjeeling Second Flush , Darjeeling First Flush ,

Darjeeling Black Tea , Darjeeling Autumnal FlushDarjeeling Green Tea , Darjeeling Oolong , EarlGrey Tea , Darjeeling In-Between , DarjeelingWhite Tea , Black Tea , Fruit Black Tea , FlavoredBlack Tea , Darjeeling Winter / Early Flush ,

Assam Assam , White Tea , Irish Breakfast , Chai /Spiced Tea , Earl Grey Tea , Black Tea , OolongTea , Assam Green , Silver Needle . Green Tea

with Mint , Green Tea , Chun MeeKerala White Peony Tea , White Tea , Black Tea , Green

TeaSikkim Black TeaTamil Nadu Black Tea

http://ratetea.com/style/black-tea/2/

http://ratetea.com/style/green-tea/4/



http://ratetea.com/style/silver-needle/26/

http://ratetea.com/style/jasmine-tea/27/

http://ratetea.com/style/white-peony-tea/25/

http://ratetea.com/style/darjeeling-second-flush/82/

http://ratetea.com/style/darjeeling-first-flush/81/

http://ratetea.com/style/darjeeling-black-tea/23/

http://ratetea.com/style/darjeeling-autumnal-flush/84/

http://ratetea.com/style/darjeeling-green-tea/34/

http://ratetea.com/style/darjeeling-oolong/32/

http://ratetea.com/style/earl-grey/28/


http://ratetea.com/style/darjeeling-in-between/85/

http://ratetea.com/style/darjeeling-white-tea/86/



http://ratetea.com/style/fruit-black-tea/39/

http://ratetea.com/style/flavored-black-tea/55/


http://ratetea.com/style/darjeeling-winter-early-flush/83/

http://ratetea.com/style/assam/31/

http://ratetea.com/style/white-tea/5/

http://ratetea.com/style/irish-breakfast/68/

http://ratetea.com/style/chai-spiced-tea/40/




http://ratetea.com/style/oolong-tea/3/


http://ratetea.com/style/assam-green/108/


http://ratetea.com/style/green-tea-with-mint/46/





















http://ratetea.com/style/assam-green/108/







http://ratetea.com/style/irish-breakfast/68/


http://ratetea.com/style/assam/31/

http://ratetea.com/style/darjeeling-winter-early-flush/83/



http://ratetea.com/style/fruit-black-tea/39/




http://ratetea.com/style/darjeeling-in-between/85/



http://ratetea.com/style/darjeeling-oolong/32/

http://ratetea.com/style/darjeeling-green-tea/34/

http://ratetea.com/style/darjeeling-autumnal-flush/84/

http://ratetea.com/style/darjeeling-black-tea/23/

http://ratetea.com/style/darjeeling-first-flush/81/

http://ratetea.com/style/darjeeling-second-flush/82/


http://ratetea.com/style/jasmine-tea/27/








35

Indian tea industry: A SWOT analysis

With tea prices rising, the tea industry is on the upswing again after several years andthe expectation is that the trend will continue. But the industry is not without challenges.

The following is the SWOT analysis.

Strengths

• The diverse agro- climatic conditions prevailing in the tea growing areas of Indiaare provided for producing a wide range of teas - black , (CTC , Orthodox ) ,green tea and organic tea .• A one-stop -shop for high quality specialty teas such as Darjeeling , Assamorthodox high end Nilgiris, etc.• Strong production base with 75 percent of production is explained by organizedsector covering 1,600 landscaped property of nearly 1,100 institutions .

• competent management staff . • strong research backing of well-established research institutions . Availability offacilities modernized and improved manufacturing .• Labour Welfare Laws protecting workers. • Emerging smallholder sector, with profiles of young plantations . Availability oftraining facilities for plantation managers , supervisory staff and workers andcontinuous updating of their knowledge. Strong domestic market - thusrepresenting almost 80 percent of the production featuring cushion for the teaindustry demand



36

Weaknesses

• Aging tea bushes - about 38 percent have crossed the economic threshold limitof age 50 years and 10 per cent to cross this limit soon. High cost of productionmainly due to low productivity , high cost of energy and the high burden of socialcost.• Decreased availability of labor especially in southern India. Remote location of

plantations and transport of long-distance tea gardens tea outlets . Lack ofinfrastructure - access roads to the gardens , improper storage ports, the limitedavailability of containers , placements of ships and transportation costs offshore(due to vessel transfers power from the mother ) .• Difficulties in introducing mechanization of field operations due to topographicalconstraints and quality .Weak extension service - • unorganized smallholders with small and scatteredfragmented properties leading to the production of low quality tea mainly due tothe lack of availability of expertise in the door character.• Lack of quality control mechanism particularly for teas sold through privatesales .

Opportunities

• Good level of awareness of the world in terms of health attributes of tea leading togrowing demand for good quality tea and specialty teas and organic teas, green teas.• Specify the gap between supply and demand due to the increase in the growth rate ofconsumption in the major producing countries. Producing countries to agree to theformation of an exclusive forum to resolve their differences on issues of commoninterest.• Positive response from the tea industry respond to the Government for the renewal ofthe fields and processing factories. (Special Purpose Tea Fund and initiative and

updating of quality).• The increased strength of small producers and showing a good response to thesuggestion of the Tea Board collective approach towards the adoption of BPA and BPM

Threats

• The production in countries such as Sri Lanka, Vietnam Round-the-year. Low cost of

tea production in Kenya, Vietnam and Indonesia, etc.

• Minors bushes (better quality tea) from other producing countries.

• Consistency in the commitment to quality and high perceived quality of serviceexporters from other countries.

• Better developed packaging and bagging ability Sri Lanka



37

PORTER'S FIVE FORCES MODLE:

Industry Rivalry (High):

• There are approximately700 tea companies in India, so there is an intenserivalry between them.

• Market is dominated by a large number of unorganized players

• The industry growth is slow

• There are low switching costs.

Bargaining Power of Buyers (High):

• There are a large number of buyers who buy the product

• The bargaining power of buyers is high and buyers have many options available.

• Not much product differentiation in terms of taste also inexpensive switching.

• Buyers purchase a large proportion of the total output of the industry

Bargaining Power of supplier (Low):

• There are a number of tea products in India

• Like coffee substitute are available

• Product Provider create low-cost switching



38

Threat of substitute (moderate):

Substitutes –coffee, cold drinks, juice.

Existing consumers are loyal.

Substitute‘s price may be lower. As there are so many player in the industry a

price war is unavoidable. The substitute product quality & performance may be better.

Threat of new Entrance (high):

Large untapped rural market for branded tea segment in rural India and Indiantea in global market.

Encouraging government policies like food & beverage act.

Tea Production April to September 2012-2013

The data show trends in the State wise production of tea in India given time period. Teaproduction in Assam state has over other states. In the period September 2012 teaproduction has fallen by 2.8% since August 2012. Tea production in the country rosemarginally 690.31million kg in the first half of the financial year on the back of increasedproduction in northern India. The country produced 688.67 million kg of tea in April andSeptember 2011 at 12. Tea production in north India, comprising the main tea-producing regions of Assam and West Bengal rose 1% to 562.67 million kg in April-

September 2012-13 compared to 559.82 million tax kg in the previous year.

Tea Production April to September 2012-2013 (Million Kgs.)

Districts / States During Aug During Sept Apr-Sept

2012 2011 2012 2011 2012-13# 2011-12#

Assam Valley 83.91 78.62 82.83 83.74 352.06 352.16

Cachar 7.51 7.20 7.99 7.13 33.78 31.66

Total Assam 91.42 85.82 90.82 90.87 385.84 383.82



39

Darjeeling 1.73 1.39 1.37 1.57 7.44 7.36

Dooars 24.47 22.88 24.51 22.87 100.99 105.79

Terai 15.10 14.77 15.01 14.00 62.11 56.50

Total W.Bengal 41.30 39.04 40.89 38.44 170.54 169.65

Others 1.52 1.53 1.52 1.53 6.29 6.35

Total North India 134.24 126.39 133.23 130.84 562.67 559.82

Tamil Nadu 12.79 12.54 11.13 12.47 91.26 92.25

Kerala 5.30 3.85 4.53 4.76 33.63 33.93

Karnataka 0.26 0.30 0.36 0.32 2.75 2.67

Total South India 18.35 16.69 16.02 17.55 127.64 128.85

All India 152.59 143.08 149.25 148.39 690.31 688.67

Chart :



40

Export of Tea 2011-12 to 2012-13

• Data from the Tea Board of India show that last year, tea production in the

country was set at 1,126 million kg.

• During January and August, tea production has increased by 6.2 percent to 705

million kg, compared to 664 million kg in the corresponding period last year.

• In 2012, the total supply of tea, including imports, was of 1,147 million kg, while

total demand, including exports, was 1.096 million kg, according to the Tea

Board of India

.

• With a growth of about 5 percent for the year, this will result in the production of

about 1.180 million kg.

• Along with the importation of 20 million kilos, the total supply of tea would beabout 1,200 million kg this year

• In the first quarter January to March 2013 , exports increased by approximately

34 percent to 59.8 million kg . "Even if exports increase by 15 percent compared

to last year , we would have over 900 million kilos of tea left for domestic

consumption ,

• After a decline in tea exports last year, shipments abroad Drink up this year

(2013 ) , according to the Tea Board of India. Export of tea is scheduled to touch

220 million kg in 2013 due to good demand from Iran and CIS countries.

• Last year , in 2012 , exports had fallen to a low of 210 million pounds 215

million pounds in 2011. Decrease in export in 2012 was largely due to problems

in Iran due to sanctions led United States against the country over its nuclear

program . But the demand for tea worldwide is increasing and prices are

expected to realize during the year



41

Production

During 2011-12, the total tea production increased from 129 million kg in 2010-11 due to

better climatic conditions that prevailed in major tea producing areas in northern India.

During 2012-13 (April-December) tea production was estimated at 1,037,430,000

against 1,021,150,000 kgs kgs compared to the corresponding period last year.

Production of Tea in India during last three financial years (in million kgs)

Year North India South India All India

2009-10 734.38 256.80 991.18

2010-11 728.52 238.21 966.73

2011-12 865.59 229.87 1095.46

Exports

During 2011-12 exports remained at the same level as last year. The total volume ofexports in 2011-12 was 214 million kilos, compared to 214 million kg in 2010-11.However, the highest unit price, the total value of exports in 2011-12 was significantlyhigher than the previous year. Total foreign exchange earned during 2011-12 was Rs.Rs 3.305 million with an average unit price of Rs.154 per kg compared to Rs. Rs 2.996million in 2010-11, with an average price of Rs.140 per kg. Despite a weakening rupee,profits and unit prices in U.S. dollar terms were also higher in 2011-12 compared to theprevious year. In summary, the position is a comparative table.

Table

2011-12 (Provisional) 2010-11

Qty M.KgsValueRs.Crore.

ValueM.US$.

UnitPriceRs./Kg.

UnitPrice($/Kg)

QtyM.Kgs

ValueRs.Crore.

ValueM.US$

UnitPriceRs.Kg

UnitPrice($/Kg.)

214 3305 690 154 3.22 214 2996 658 140 3.08

During 2011-12, the improvement in exports was compared to countries like

Kazakhstan, UK, USA, Egypt and Pakistan. The increase varies from 3% (U.S.) to 16%(Egypt). Markets such as Russia, Kazakhstan, UK, USA, Iran, UAE, ARE (Egypt) andPakistan remained crucial, considering the market potential and the ability of India tomeet market demand respective.During 2012-13 (April-December) exports are estimated at 156.38 million kgs valued atRs. 3062.69 crore with a price of Rs.195.85 per kg against 169.65 million kgs valued atRs. 2617.57 crore with a price of Rs.152.04 per kg during the corresponding period lastyear.



42



43

Analysis of India’s Trade in Tea

Export Of Tea

Year Quantity (M kg) Value (Rs.Crore) Unit Price (Rs/Kg)Jul-Sep Apr-Jun Apr-Sep Jul-Sep Apr-Jun Apr-Sep Jul-Sep Apr-Jun Apr-Sep

2011-2012

39.37 63.05 102.62 598.65 961.58 1560.23 151.29 152.51 152.04

2012-2013

30.70 51.15 81.85 528.29 979.23 1507.52 172.08 191.44 184.81

Tea Development

One of the important functions assigned to the Board of tea in the Tea Act includes theformulation and implementation of development plans for increasing production andproductivity of tea plantations , modernization of tea processing , packaging andfacilities value addition and promotion of cooperative efforts among small tea growers .Financial assistance for the above activities extending through plan approved forimplementation plans. Activities supported during the XI Plan period include uprooting

and replanting / rejuvenation of old tea bushes old building irrigation and transportservices , new plantations in mountainous regions NE and small farms thecollectivization of smallholders through SHGs groups / Producer, training,demonstration , field trips, etc. modernize tea factories processing , value addition ,quality certification , stimulating the production of orthodox teas and green . Totalsubsidy paid during the period of the XI Plan was Rs.515 Cr . ( Approx.) . The physicalachievement over the past five years is on the table



44

Table

The physical achievements during the last five year plan period

Sl.

No Activity

Achievement during XI Plan

period 1 New Planting (Ha) 3,738

2 Irrigation (Ha) 27,427

3 Transport (Nos) 543

4 SHG of small growers (Nos) 250

5 Replanting (Ha) 25,195

6 Rejuvenation (Ha) 6,817

7 Factory Modernization (No.) 1,485

8 Value Addition (No.) 142

9 Quality certification (No.) 22410 Product Diversification (No.) 3

11Orthodox subsidy ( Vol.M.Kg.)

465

12 Training (No. of persons) 49,689

Achievements during 2012-13

The above noted activities have been continued during the year 2012-13 as well. Thefinancial and physical progress up to December 2012 are as at Table

Table

Financial Achievement during 2012-13 from April to December 2012

Scheme Name

ApprovedOutlay for2012-13 (Rs.crore)

Receipt(Rs.crore)

Expenditure (Rs..crore) (April toDecember 2012)

Tea PlantationDevelopmentscheme

10.00 8.12 8.10

Quality Upgradation& ProductDiversificationScheme

45.00 30.64 29.87



45

Research &DevelopmentScheme

12.00 9.00 8.95

Human ResourceDevelopmentScheme

12.00 12.12 12.10

Market Promotion

Scheme 26.00 19.93 19.90Orthodox Subsidy 25.00 19.09 19.00

Scheduled Caste-Sub Plan

10.00 2.75 2.74

Small GrowersDevelopmentScheme

0.10 0.00 0.00

NationalProgramme on TeaRegulation

0.10 0.00 0.00

Special purposeTea fund scheme

60.00 42.51 42.49

Total 200.20 144.16 143.15

TablePhysical Targets & Achievements for the period 01.04.2012 to 31.12.2012

Activity Target Achievement Percentage

Achieved 1 New Planting (ha) 1500 551.39 36.76

2 Irrigation (ha) 4000 1307.29 32.68

3 Transport (no.) 41

4 SHG (no.) 25.00 12 48.00

5 Replanting (ha) 6000 2802.66 46.71

6 Rejuvenation (ha) 1000 807.05 80.71

7Factory Modernisation(no)

350 192 54.86

8 Value Addition (no) 13 6 46.15

9 Quality Certification (no) 110 7 6.36

10Orthodox subsidy (Vol inM.kg)

95 35 36.84

11 Number of beneficiary 400 350 87.50

12 Training (No. of persons) 5000 715 14.30



46

Spain

Spain is a small tea consumption and the growth rate for consumption of green tea onthe market exceeds the consumption of black tea. India also seems to export tea toSpain very less used for commercial purposes.

Spain is a country of coffee consumption. As a result, the tea does not have a great

tradition in Spain, although the demand for which is increasing (while coffee sales fall).There is a particularly good range of teas in the halls of Granada Moroccan tea.Coffee in Spain have a few boxes of bags gathering dust next to the clock on yourabacus, pen and pocket but is always of very poor quality. However, there are somefruit and herbal infusions which are very popular.

Spanish used type of tea is following

Té Negro - Black tea. Doesn't come with milk

Té Rojo - Pu-erh tea.

Té Verde - Green tea.

Té de Fruta - Fruit tea.

Manzanilla - Chamomile tea.

Menta Poleo - Pennyroyal tea.

Tila - Lime blossom tea.

Tea in Granada and Lavapies (Madrid)

The influence of Morocco in Granada has created a bit of tea culture in the city. There Arabs " tearooms " ( tea houses ) throughout Granada with menus that are usually fivepages. It is also common that the streets outside these tea houses to sell packages ofthe most common teas that you can buy in stores. One tip - try the tea in tea houses ,but do not buy from there. Instead , go to the spice stalls around the Cathedral (thereare two of them). The tea here is of a much higher quality than that sold in Arab areasand is also cheaper.The menus at once are rare teterías English : just pick something random ! My favoriteis the tea Pakistan, a black tea with milk is taken and mixed with vanilla, cinnamon and

cardamom pods .Lavapies neighborhood of Madrid.The Tea Shop of East West Company was one of the first in Spain tea shops thatexclusively sell tea and tea accessories . Today about 120 varieties of tea are sold.The Tea Shop is slowly opening new lines of business as the distribution of the butt -end restaurants and hotels. There are even plans to repeat the positive SpanishSpain is a small tea consumption , with a market share of 0.5% in 2008 ( ITC , 2009).



47

between 2004 and 2008 , total consumption of tea Spanish achieved an average annualincrease of 3.2 %, to 1,400 tones in the last year

Strategy

Export strategy was used. In Spain, the black tea and green tea is the most demand.

Procedure of export

STEP1: Enquiry

The starting point for any Export Transaction is an enquiry.

An enquiry for product should, inter alia, specify the following details or

provide the following data Size details - Std. or oversize or undersize

Drawing, if available

Sample, if possible

Quantity required

Delivery schedule

Is the price required on FOB or C& F or CIF basis

Mode of Dispatch - Sea, air or Sea/air

Mode of Packing

Terms of Payment that would be acceptable to the Buyer - If the buyerproposes to open any Letter of Credit, any specific requirement to becomplied with by the Exporter

Is there any requirement of Pre-shipment inspection and if so, by whichagency

Any Certificate of Origin required - If so, from what agency

STEP 2: - Proforma generation :

After studying the enquiry in detail, the exporter - be it Manufacturer Exporter orMerchant Exporter - will provide a Proforma Invoice to the Buyer.

STEP 3: Order placement :

If the offer is acceptable to the Buyer in terms of price, delivery and payment terms, the

Buyer will then place an order on the Exporter, giving as much data as possible in terms



48

of specifications, Part No. Quantity etc. (No standard format is required for such a

purchase order

STEP 4: Order acceptance :

It is advisable that the Exporter immediately acknowledges receipt of the order, giving a

schedule for the delivery committed.

STEP 5: Goods readiness & documentation :

Once the goods are ready duly packed in Export worthy cases/cartons(depending upon the mode of despatch), the Invoice is prepared by theExporter.

If the number of packages is more than one, a packing list is a must.

Even If the goods to be exported are excisable, no excise duty need be chargedat the time of Export, as export goods are exempt from Central Excise, butthe AR4 procedure is to be followed for claiming such an exemption.

Similarly, no Sales Tax also is payable for export of goods

STEP 6: Goods removal from works :

There are different procedures for removing Export consignments to the Port,following the AR4 procedure, but it would be advisable to get theconsignment sealed by the Central Excise authorities at the factory premisesitself, so that open inspection by Customs authorities at the Port can beavoided.

If export consignments are removed from the factory of manufacture, following the AR4

procedure, claiming exemption of excise duty, there is an obligation cast on the exporter

to provide proof of export to the Central Excise authorities

STEP 7: Documents for C & F agent :

The Exporter is expected to provide the following documents to the Clearing &Forwarding Agents, who are entrusted with the task of shipping theconsignments, either by air or by sea.

Invoice

Packing List

Declaration in Form SDF (to meet the requirements as per FERA) in duplicate.

AR4 - first and the second copy Any other declarations, as required by Customs

On account of the introduction of Electronic Data Interchange (EDI) system forprocessing shipping bills electronically at most of the locations - both for air orsea consignments - the C&F Agents are required to file with Customs theshipping documents, through a particular format, which will vary dependingon the nature of the shipment. Broad categories of export shipments are:



49

Under claim of Drawback of duty

Without claim of Drawback

Export by a 100% EOU

Under DEPB Scheme

STEP 8: Customs Clearance :

After assessment of the shipping bill and examination of the cargo by Customs (whererequired), the export consignments are permitted by Customs for ultimate Export. This

is what the concerned Customs officials call the ‘LET EXPORT’ endorsement on the

shipping bill.

STEP 9: Document Forwarding :

After completing the shipment formalities, the C & F Agents are expected toforward to the Exporter the following documents:

Customs signed Export Invoice & Packing List

Duplicate of Form SDF Exchange control copy of the Shipping Bill, processed electronically

AR4 (original duplicate) duly endorsed by Customs for having effected the Export

Bill of Lading or Airway bill, as the case may be

STEP 10: Bills negotiation :

With these authenticated shipping documents, the Exporter will have to negotiatethe relevant export bill through authorized dealers of Reserve Bank, viz.,Banks.

Under the Generalized System of Preference, imports from developing countriesenjoy certain duty concessions, for which the exporters in the developingcountries are expected to furnish the GSP Certificate of Origin to theBankers, along with other shipping documents.

Broadly, payment terms can be:

DP Terms

DA Terms

Letter of Credit, payable at sight or payable at... days

Step11: Bank to bank documents forwarding :

The negotiating Bank will scrutinize the shipping documents and forward them tothe Banker of the importer, to enable him clear the consignment.

It is expected of such authorized dealers of Reserve Bank to ensure receipt of export

proceeds, which factor has to be intimated to the Reserve Bank by means of periodical

Returns.



50

STEP 12: Customs obligation discharge :

As indicated above, Exporters are also expected to provide proof of export to the

Central Excise authorities, on the basis of the Customs endorsements made on the

reverse of AR4s and get their obligation, on this score, discharged.

STEP 13: Receipt of Bank certificate :

Authorized dealers will issue Bank Certificates to the exporter, once the paymentis received and only with the issuance of the Bank Certificate, the exporttransaction becomes complete.

It is mandatory on the part of the Exporters to negotiate the shipping documents only

through authorized dealers of Reserve Bank, as only through such a system Reserve

Bank can ensure receipt of export proceeds for goods shipped out of this country


Export Licence

Majority of goods are allowed to be exported without obtaining a licence. Exportlicenses are only required for items listed in the Schedule 2 of ITC (HS) Classificationsof Export and Import items. An application for grant of Export Licence for such itemsmust be submitted to the Director General of Foreign Trade (DGFT). The ExportLicensing Committee under the Chairmanship of Export Commissioner considers suchapplications on merits for issue of export licenses.

Export of Special Chemicals, Organisms, Materials, Equipment and Technologies(SCOMET) items are also permitted under a licence or prohibited altogether. Guidelinesfor Export of SCOMET items can be viewed here..

Export of Samples

Export of samples upto specified limits are allowed free. The exporter is required to beregistered with the appropriate Export Promotion Council to avail of this benefit.Samples with permanent marking as "sample not for sale" are allowed freely for exportwithout any limit.

Processing of Shipping Bill

In case of export by sea or air, the exporter must submit the 'Shipping Bill', and in caseof export by road he must submit 'Bill of Export' in the prescribed form containing theprescribed details such as the name of the exporter, consignee, invoice number, detailsof packing, description of goods, quantity, FOB value, etc. Along with the Shipping Bill,

http://business.gov.in/outerwin.php?id=http://www.dgciskol.nic.in/ITC%28HS%29.htm


http://business.gov.in/outerwin.php?id=http://dgftcom.nic.in/exim/2000/scomet2007.htm


http://business.gov.in/outerwin.php?id=http://commerce.nic.in/epc.htm

http://business.gov.in/outerwin.php?id=http://commerce.nic.in/epc.htm







51

other documents such as copy of packing list, invoices, export contract, letter of credit,etc. are also to be submitted. There are 5 types of shipping bills:-

Shipping Bill for export of duty free goods. This shipping bill is white coloured. Shipping bill for export of goods under claim for duty drawback. This shipping bill

is green coloured. Shipping bill for export of duty free goods ex-bond i.e. from bonded warehouse.

This shipping bill is pink coloured. Shipping Bill for export of dutiable goods. This shipping bill is yellow coloured. Shipping bill for export under DEPB scheme. This shipping bill is blue in colour.

The Bills of Export are:-

Bill of export for goods under claim for duty drawback Bill of export for dutiable goods Bill of export for duty free goods Bill of export for duty free goods ex-bond

Exporters can check and track the status of Shipping Bills online.

Let Export Order

After the receipt of the goods in the dock, the exporter may contact the Customs Officerdesignated for the purpose and present the checklist with the endorsement of Port

Authority and other declarations along with all original documents. Customs Officer mayverify the quantity of the goods actually received and thereafter mark the ElectronicShipping Bill and also hand over all original documents to the Dock Appraiser, who mayassign a customs officer for the examination of the goods. If the Dock Appraiser issatisfied that the particulars entered in the system conform to the description given in

the original documents, he may proceed to allow "let export" for the shipment.

HOW TO START AND OPERATE YOUR OWN PROFITABLE

IMPORT/EXPORT BUSINESS AT HOME

Making Contacts

Analyze the Market

Where to Find Help

Making Connections

Getting the Goods

Making an Agreement

http://business.gov.in/outerwin.php?id=http://www.cbec.gov.in/customs/forms_pdf/95.pdf








http://business.gov.in/outerwin.php?id=http://dgftcom.nic.in/licasp/sbdetformnew.asp

http://www.foreign-trade.com/reference/impexp.htm#contacts

http://www.foreign-trade.com/reference/impexp.htm#market

http://www.foreign-trade.com/reference/impexp.htm#help

http://www.foreign-trade.com/reference/impexp.htm#connections

http://www.foreign-trade.com/reference/impexp.htm#goods

http://www.foreign-trade.com/reference/impexp.htm#agreement

http://www.foreign-trade.com/reference/impexp.htm#agreement

http://www.foreign-trade.com/reference/impexp.htm#goods

http://www.foreign-trade.com/reference/impexp.htm#connections

http://www.foreign-trade.com/reference/impexp.htm#help

http://www.foreign-trade.com/reference/impexp.htm#market

http://www.foreign-trade.com/reference/impexp.htm#contacts

http://business.gov.in/outerwin.php?id=http://dgftcom.nic.in/licasp/sbdetformnew.asp











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The Sale

Terms of Shipping

The Freight Forwarder

The Letter of Credit

Delivering the Goods

INDIA-SPAIN RELATIONS

Relations between India and Spain are cordial, particularly since the establishment ofdemocracy in Spain in 1978. Diplomatic relations between India and Spain were

established in 1956 with the opening of the Spanish Embassy in New Delhi which wasfollowed by concurrent accreditation of our High Commissioner to London as

Ambassador to Spain in 1958. A Mission headed by a Cd’A opened in Madrid the sameyear. The first resident Ambassador of India was appointed in 1965.

High Level Visits

In recent years India –Spain bilateral relations have gathered momentum through highlevel visits and regular ministerial and official level contacts. His Majesty King JuanCarlos I paid a state visit to India from 24-27 October 2012. The King was accompaniedby a high level delegation, including Spanish Ministers of Foreign Affairs; Defence;

Industry, Energy and Tourism; Infrastructure and Transport. The delegation alsoincluded senior government officials and CEOs of about 20 top-notch Spanishcompanies.

During the visit the following Agreements/MOUs were signed:

1. Protocol for amending the Convention and Protocol between India and Spain forthe avoidance of double taxation and the prevention of fiscal evasion with respectto taxes on income and on capital, which was signed on February 8, 1993 inNew Delhi.

2. Memorandum of Understanding on Defence Cooperation.

3. Memorandum of Understanding on Roads and Road Transport Sector.4. Agreement between India and Spain in the field of Audio-visual Co- production5. Memorandum of Understanding between the Indian Railways and

RENFE- OPERADORA and ADIF of Spain on technical cooperation in the field ofrailway sector.

President Smt. Pratibha Devisingh Patil paid a State Visit to Spain from 20-23 April,2009 at the invitation of the King of Spain. This was the first-ever State visit from India

http://www.foreign-trade.com/reference/impexp.htm#sale

http://www.foreign-trade.com/reference/impexp.htm#shipping

http://www.foreign-trade.com/reference/impexp.htm#freight

http://www.foreign-trade.com/reference/impexp.htm#letter

http://www.foreign-trade.com/reference/impexp.htm#letter

http://www.foreign-trade.com/reference/impexp.htm#freight

http://www.foreign-trade.com/reference/impexp.htm#shipping

http://www.foreign-trade.com/reference/impexp.htm#sale



53

to Spain. During the visit, three MoUs on cooperation in the fields of Agriculture,Renewable Energy and Tourism were signed. Seven areas viz. infrastructure,agriculture, tourism, cooperation in Latin America, renewable energy, SMEs andresearch and development in S&T were identified as focus areas for strengtheningbilateral cooperation.

Bilateral Agreements and Treaties

India has the following treaties/agreements with Spain.

Agreement on Trade and Economic Cooperation (1972) Agreement on Cultural Cooperation (1982). The CEP for the period 2005-08 was

signed in March 2005 Civil Aviation Agreement (1986). Double Taxation Avoidance Agreement (1993). Bilateral Investment Protection and Promotion Agreement (1997). Extradition Treaty (2002) MoU on Institutionalization of Political Dialogue (2006) Mutual Legal Assistance treaty on Criminal Matters (2006). MoU between Technology Development Board (TDB) and the Centre for

Development of Industrial Technology (2006). MoU of cooperation in the field of S&T (2007) MoU on Agriculture and Allied Fields (April 2009) MoU on cooperation in Tourism (April 2009) MoU on Renewable Energy(April 2009) Protocol for amending the Convention and Protocol between India and Spain for

the avoidance of double taxation and the prevention of fiscal evasion with respect

to taxes on income and on capital, which was signed on February 8, 1993 in NewDelhi. ( October 2012)

Memorandum of Understanding on Defence Cooperation. (October 2012) Memorandum of Understanding on Roads and Road Transport Sector. (October

2012 Agreement between India and Spain in the field of Audio-visual Co-production

(October 2012)

Trade and Investment

India-Spain bilateral trade in the year 2012 stood at USD 5.17 billion (Exports fromIndia: USD 3.56 billion; imports from Spain: USD 1.61 billion).



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Bilateral Trade between India and Spain from January to November, 2013 stood at USD4.33 billion; Spain’s exports to India during the given period stood at USD 1.36 billionand India´s exports to Spain stood at USD 2.96 billion.

There has been a drop of 10.8% in the bilateral trade as compared with the same periodin 2012, which stood at USD 4.86 billion.

The drop in bilateral trade is mainly due to reduced imports by Spain in a time ofeconomic downturn.

Main Indian exports included organic chemicals, textile and garments, Iron and steelproducts, automotive components, marine products, leather goods. Indian importsconsisted of machine and mechanical appliances, vehicles and automobiles, plasticmanufactures, electrical appliances, rubber and rubber products and olive oil.

Spain is the 13th largest investor in India with total FDI at $820 million.

The main investments are in the sectors such as infrastructure, renewable energy, auto

components, water desalination/purification and single brand retail.

A total of 140 Spanish companies have subsidiaries, joint ventures, projects or liaisonoffices and purchase offices in India.

There are about 30 Indian companies in Spain in the fields of IT, automobiles,pharmaceuticals and road maintenance.

The total Indian investment in Spain is at Euro 687 million. In areas of infrastructure(roads, airports, ports, railways), energy (renewable and non-renewable), agriculture,food processing, water desalination/purification, city waste management and tourism

there is a huge potential for cooperation from Spain to India. Similarly, from our sidethere is a huge potential for cooperation in the areas of pharmaceuticals (genericmedicines) and IT.

Science and Technology

Spain was the Partner Country at the 17th edition of the Technology summit and

Technology Platform organized by our Department of Science and Technology in NewDelhi from 22 – 23 November, 2011.

Main thematic areas for this year’s edition were biotech, renewable energy and water-related technologies.



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About 127 Spanish companies and 250 Indian companies participated in theSummit. About 127 MOUs were also signed between the various Spanish and Indianparticipating companies.

The Technology Summit was inaugurated by the Hon´ble Minister of Science &Technology.

The Spanish delegation was led by Mr. Juán Tomás Hernani Burzaco, SecretaryGeneral of the Spanish Ministry of Science & Innovation.

The Department of Biotechnology (DBT) has an on-going programmed of cooperationwith the Centre for the development of Industrial Technology (CDTI), Spain.

A Programmed of Cooperation for Technological cooperation was signed between thetwo bodies in November, 2011 to promote and fund innovation-driven research andtechnology development as well as to encourage partnerships and business led R &Dcollaborative projects in the field of biotechnology

Under this programmed DBT and CDTI have successfully concluded one round of callfor proposals and have announced second call for proposals

A 17- member delegation comprising of officials of DBT, representatives of Academia,Industry and FICCI visited Madrid and Barcelona from May 20-22, 2013.

The delegations had useful interactions with their Spanish counterparts and visitedstate of the art Spanish bio-tech centers and facilities.

Cultural and Academic Relations

Cultural exchange is an important component of India-Spain bilateral relations.

Cultural performances, film shows and exhibitions are regularly organized to strengthenmutual understanding of the societies.

Academic exercises like seminars and colloquiums facilitating study of each other’shistory and culture and the provision of scholarships play an important role in this matrix

ICCR sponsors visits of cultural troupes for performances in various parts of Spain.

Further, ICCR offers five scholarships to Spanish students every year to study in India.

The Indian performing arts scene has become increasingly vibrant in Spain over thepast few years.

After the successful organization of ‘India en Concierto’ in 2012, the momentum wastaken further up in 2013 through performances of very high quality – including those byMs Priya Venkataraman and Group (Bharatnatyam), Pt. Ashok Pathak and Pt. Baluji



56

Srivastava (Sitar), Dr. L Subramaniam and ensemble (Violin), Shri Astad Deboo andGroup (Contemporary Dance), amongst others. Shri Deboo and Group also performedin Andorra, which was the first performance by an Indian cultural group in Andorra.The13th Edition of the ImagineIndia Film Festival took place in Madrid, Barcelona andBilbao. More than 50 films were screened throughout the festival, including 26 fromIndia..

PROMISING SECTORS OF INDO-SPANISH COOPERATION

Science and TechnologyEnergy (particularly wind energy, where Spain and India are respectively the third andthe fourth largest producers in the world)Information and Communication TechnologyBiotechnology including Pharmaceuticals, Life Sciences and Nano Technology

Agriculture Technology & Food ProcessingInfrastructure

Environment & Tourism

Current Scenario

With an annual bilateral trade involving $5 Billion, trade partnership between India andSpain.

In recent times, where we have been witnessing an increasing volatility in Euro zone

and an imminent global financial crisis, a story like this comes as a breath of fresh airand needs worth mentioning.

Notwithstanding all the economic turmoil of recent past, the Indo-Spanish trade ispoised to grow at around 20% in the coming years.

In a recent survey published by Indian embassy in Madrid, trade balance between thetwo countries has hovered around $2000 Million mark year-on-year: a clear indication of

http://alumninews.blogs.ie.edu/2011/09/indo-spain-bilateral-trade-celebrating-the-dawn-of-a-new-era.html/316162_10150282050042832_573022831_7775930_1125501069_n



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growing interest of Spain to seek new partners in emerging economies like India andalso an indication of Indian Government’s persistence of continuing with economicliberalization policy that started about two decades ago.

Presently, there are around ten major Spanish companies working in India.

Sectors where tie-up and expansions are happening in Indian market are consumer

goods, travel, tourism, energy, banking, construction and retail, with renewable energybeing most dominant among them.

Indian companies have also entered the Spanish market in Pharmaceuticals, ITServices, Energy and automobile industries. Financial sector has been identified asmajor growth area of India.

Apart from these, following sectors have been identified as, priority sectors where Indo-Spanish joint ventures can happen in the future: Infrastructure, energy, agriculture,automobile components, information Technology, pharmaceuticals, textile and tourism.

What does India offer to Spain and rest of the world?

After years of stagnation due to Socialist policies, Indian economy breathed a new leaseof life in early 90s, when the then finance minister (Dr. Manmohan Singh) introducedsweeping reforms in various sectors.

In the following years, Indian economy has witnessed huge spells of GDP growth(almost touching double digit in 2000s and currently estimated to be 8.8% for 2011),increasing interest of multinationals to invest in the country, resulting in rising levels ofliving standards

Conditions for doing business for international companies remain positive.

India has potential to emerge as an important partner for alleviating the tradeimbalances and providing attractive investment incentives:

India is 4th largest economy in the world in terms of PPP 70% of foreign investments are making profits 84% plan to expand 91% perceive new opportunities for investments 60% of the companies are obtaining better margins in their businesses in India

than their average in their global businesses

220 of Fortune 500 are present in the Indian market Indian Economy: Service: 58%, Agriculture: 20%, Industry: 19% Forex reserves in India: $320 Billion FDI attractiveness: among top 5 in the world As per BCG study, banking sector will be third largest in the world in next 14

years Growth of India is based on internal demand India ranks among highest in consumer confidence



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Current and Future Challenges

Despite the booming business relations between the two countries, Indian companiesexpanding into Spain and vice versa, need to be aware of the language barriers and thecultural differences that exist between the two countries.

English is the business language used in India and the focus on learning Spanish for

business is almost non-existent.

English is now the second language taught in Spanish schools (moving from French),which implies that language would cease to be a big barrier in the near future.

Cultural sensitization is a topic, which can be dealt easily, if identified and recognized intime.

All the experts on the panel agreed that the best way to enter either market is throughJoint Ventures in a specific industry as a testing ground.

The lessons learnt from these ventures can serve as a benchmark for doing businesswith each other

This helped them understand the local market and test waters for entering into thePower transmission business and explore other avenues of engagement.



Bibliography

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www.studymode.com

www.portal.indiainfoline.com

www.onicra.com

www.commerce.nic.in

www.tea.in/industry

www.ibet.org/export/india-teaindustry

www.wikipedia.com

www.financialexpress.com

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http://www.mapsofworld.com/

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http://www.studymode.com/

http://www.mapsofworld.com/

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http://www.teaboard.gov.in/

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