revitalizing indian tea export in russia

Download Revitalizing Indian Tea Export In Russia

Post on 04-Jan-2017

216 views

Category:

Documents

2 download

Embed Size (px)

TRANSCRIPT

  • AAA

    GGGLLLOOOBBBAAALLL SSSTTTUUUDDDYYY RRREEEPPPOOORRRTTT

    OOONNN

    RRReeevvviiitttaaallliiizzziiinnnggg IIInnndddiiiaaannn TTTeeeaaa EEExxxpppooorrrttt IIInnn RRRuuussssssiiiaaa Submitted to:

    Gujarat Technological University

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

    MASTER OF BUSINESS ADMINISTRATION

    Under the guidance of:

    Dr. Viral Bhatt Principal

    SAL Institute of Management, Ahmedabad.

    Submitted By: SSS ttt uuu ddd eee nnn ttt sss ooo fff MMM aaa rrr kkk eee ttt iii nnn ggg ,,,

    SSS EEE MMM ::: III VVV ,,, MMM BBB AAA ::: 222 000 111 000 --- 111 222 ,,,

    SSS AAA LLL III nnn sss ttt iii ttt uuu ttt eee ooo fff MMM aaa nnn aaa ggg eee mmm eee nnn ttt ...

    SAL INSTITUTE OF MANAGEMENT MBA PROGRAMME

    Affiliated to Gujarat Technological University, Ahmedabad. March, 2012.

  • Certificate

    This is to certify that this Comprehensive Project Report title,

    RRReeevvviiitttaaallliiizzziiinnnggg IIInnndddiiiaaannn TTTeeeaaa EEExxxpppooorrrttt IIInnn RRRuuussssssiiiaaa

    is the bonafide work of SSS ttt uuu ddd eee nnn ttt sss ooo fff MMM aaa rrr kkk eee ttt iii nnn ggg ,,, SSS EEE MMM ::: III VVV ,,, MMM BBB AAA :::

    222 000 111 000 --- 111 222 ,,, SSS aaa lll III nnn sss ttt iii ttt uuu ttt eee ooo fff MMM aaa nnn aaa ggg eee mmm eee nnn ttt who carried out the

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

    my knowledge the work reported herein does not form part of any other

    project report or dissertation on the basis of which a degree or award

    was conferred on an earlier occasion on this or any other candidate.

    Project Guide

    :

    Dr. Viral Bhatt Principal, SAL Institute of Management, Abad. Sign: __________________

    SAL INSTITUTE OF MANAGEMENT Affiliated to Gujarat Technological University, Ahmedabad.

  • I

    We, SSS ttt uuu ddd eee nnn ttt sss ooo fff MMM aaa rrr kkk eee ttt iii nnn ggg ,,, SSS EEE MMM ::: III VVV ,,, MMM BBB AAA ::: 222 000 111 000 --- 111 222 ,,,

    SSS AAA LLL III nnn sss ttt iii ttt uuu ttt eee ooo fff MMM aaa nnn aaa ggg eee mmm eee nnn ttt , hereby declare that the Global Study

    Project entitled RRReeevvviiitttaaallliiizzziiinnnggg IIInnndddiiiaaannn TTTeeeaaa EEExxxpppooorrrttt IIInnn RRRuuussssssiiiaaa is a result of our own work and our indebtedness to other work publications,

    references, if any, have been duly acknowledged.

    Date: 22/03/2012 Sign, Place: Ahmedabad

    SSS ttt uuu ddd eee nnn ttt sss ooo fff MMM aaa rrr kkk eee ttt iii nnn ggg ,,,

    SSS EEE MMM ::: III VVV ,,, MMM BBB AAA ::: 222 000 111 000 --- 111 222 ,,,

    SSS AAA LLL III nnn sss ttt iii ttt uuu ttt eee ooo fff MMM aaa nnn aaa ggg eee mmm eee nnn ttt ...

  • II

    Experience is the best teacher This saying has played a guiding role

    in including GSR as a part of the curriculum of the M.B.A. programme of the

    Gujarat Technological University. This study Report allows students to do

    practical work and to study real global business environment which develops a

    feeling about the difficulties and challenges in the business world.

    In this direction, we have tried our best to present a project report.

    This project report will help the readers to know in-depth about global tea

    business environment and major reasons for poor performance of Indian tea

    export in Russia during last few years along with measures to revitalize Indian tea

    export in Russia.

    The preparation of this project is based on facts and findings noted and

    information collected from various secondary sources such as internet, Books,

    News Papers, Magazines and written and published documents.

    In spite of our best efforts, there may be omission and commissions

    which may please be excused..!

  • III

    AAAccckkknnnooowwwllleeedddgggeeemmmeeennntttsss

    We are extremely thankful to Dr.Viral Bhatt for his valuable guidance and helpline that was provided to us throughout completion of this project. He was

    always there to lend a helping hand & directed us towards proper attitude to

    develop the project. He has always welcomed our queries and doubts regarding

    the project work. Without his help and right guidance the completion of the project

    would have been very difficult.

    The level of knowledge he possess has covered entire aspects of the

    management expertise in different fields, particularly in market research and

    marketing management. We are also really indebted to those all people who

    heartily helped us throughout completion of this project.

    We are also thankful to our institute SAL Institute of Management and

    GTU for offering us such a great subject that bind all the knowledge we have

    gained throughout our study And last but not the least we would like to thank all

    our friends who have provided their thoughts and help directly or indirectly about

    our project during development and for the further enhancement.

    With Thanks

    SSS ttt uuu ddd eee nnn ttt sss ooo fff MMM aaa rrr kkk eee ttt iii nnn ggg ,,, SSS EEE MMM ::: III VVV ,,,

    MMM BBB AAA ::: 222 000 111 000 --- 111 222 ,,, SSS AAA LLL III nnn sss ttt iii ttt uuu ttt eee ooo fff MMM aaa nnn aaa ggg eee mmm eee nnn ttt ...

  • Revitalizing Indian tea export in Russia

    1 GSR-SAL Institute of Management, Abad.

    Table of conTenTs

    Sr. No. Particulars Page No.

    Chapter-1 Introduction 2

    Chapter-2 Problem statement 7

    Chapter-3 Research Methodology 28

    Chapter-4 India: Tea sector analysis 32

    Chapter-5 Russia: Tea Market & consumption Pattern 62

    Chapter-6 Competitive analysis of Tea Exporters 87

    Chapter-7 Findings 111

    Chapter-8 Suggestions / Recommendations 128

    Chapter-9 Conclusion 134

    Chapter-10 Bibliography/ 137 References

  • Chapter 1

    IntroduCtIon

  • Revitalizing Indian tea export in Russia

    2 GSR-SAL Institute of Management, Abad.

    InTroducTIon:

    Tea is the oldest and the most widely consumed beverage in the world

    after water. It is estimated that there are over 2,000 different types of tea. Though

    several varieties of tea such as green tea and herbal tea are now becoming popular,

    by far the most important tea to international trade is black tea. In the global tea

    market, China, India, Kenya, and Sri Lanka are the major producers and also play a

    major role as exporters of tea, while Russia, U.K., U.S., Pakistan, and Japan form

    the major markets for these exports. Consumer awareness of the health benefits of

    tea and premium have been the growth drivers of the tea market recently.

    The global tea industry is largely dominated by India, the second largest

    producer and one of the largest consumers of tea. India is succeeded China and

    followed by Kenya Sri Lanka, Vietnam and Indonesia in the production hierarchy

    of countries.

    The tea industry is peculiar, the soil characteristics, the climate and the

    rainfall determine the nature of the tea and its taste. Tea affects the taste buds;

    therefore, it is difficult to replace a particular variety with a substitute. This

    explains why certain types are favored by certain countries: for example, the CIS

    (commonwealth of independent states i.e. Russia) countries favor Indian and Sri

    Lankan teas. UK and Pakistan favor Kenyan teas.

    India accounts for 23.6 per cent of world's production. While Sri Lanka,

    Kenya and Indonesia are the other leading producers; their combined production is

    lower than that of India. What makes India an interesting object of study is that its

    size is no millstone around its neck; its production growth between 1996 and

  • Revitalizing Indian tea export in Russia

    3 GSR-SAL Institute of Management, Abad.

    1998at 5.63 per cent was way ahead of the increase in world production of one per

    cent only.

    In 2008, world tea production reached over 4.73 million tones. Producing

    1.16 billion kilos (2.56 billion pounds) of tea per year, China is the number one

    source for tea on the planet. At 980million kilos (2.16 billion pounds), India stands

    at number two. Kenya and Sri Lanka follow.

    When it comes to exports, China ships out 297million kilos

    (654.78million pounds) o