Export of Spices to UK- International business

Description
This presentation analyses various marketing aspects like demographics, population, UK's scenario, export rules in India, import rules in UK, logistics involved, registration, liscense and marketing strategies

EXPORT OF INDIAN SPICES TO UNITED KINGDOM

Objective
To Understand nuances involved in Export of Spices ? Understand the Export Regulation of India pertaining to Spices ? Understand the Import Regulation of UK with regards to Spices ? Marketing Potential of Indian Spices in UK
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Scope & Limitation
The prevailing market growth will remain the same ? The Existing Rules & Regulations are only considered both in India & UK ? Only the Exporting of Spices is considered and not the Manufacturing.
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Flow of Presentation
1. 2. 3. 4. 5.

Rohit Bhopale – India’s Spicy Profile. Viraj Salunke – UK’s Scenario. Rohit Kolekar – Export of Spices from India. Arun C. – Import of Spices into UK. Nehul Makwana – Marketing of Spices in UK.

India’s Spicy Profile
? ? ? ?

India – The Home of Spices. Exports to 140 Countries India’s Global Position. Spice Board of India. (Ministry of Commerce, Govt. of India)

India’s Spices Exports (2009 - 10)
5.02 Lakh Tonnes - Growth of 7%. ? Rs. 5,560 Crores – Growth of 5%.
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Export Share:
? ? ?

?
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Value Added Products – 34% Chilly – 23% Cumin – 10% Turmeric – 7% Pepper – 6%
*Source – Spices Board Of India.

Major Importers of Indian Spices
1.

USA – 16% Malaysia – 8% China – 7% UAE – 6% Uk – 5%

2.

3.

4.

5.

India – Spice Export Basket
Whole Spices ? Organic Spices ? Spice Mixes ? Spice Blends ? Freeze Dried ? Curry Powders / Mixtures ? Oleoresins ? Essential Oils ? Dehydrated Spices
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Spices – Curry Powder

Spices – Essential Oils
Pepper oil Mustard seed oil

Turmeric oil Garlic oil Mace oil Kokam oil Basil oil Spearmint oil Cardamom oil Coriander seed oil Fennel seed oil

Clove oil Cinnamon oil Ginger oil Cumin seed oil Nutmeg oil Rose mary oil Peppermint oil Parsley oil Ajwan seed oil

United Kingdom

Why UK?
?Spices

market size in UK ?UK an interesting market for developing countries. ?Annual growth rate. ?Intresting fact.
?Over

1000 Indian hotels in London itself.

Demographics
• • • • •

Population Age Structure Ethnicity Religion Languages

Population
?The population of the UK in the 2007 was 60million ( 60,587,300).

? In 2010 current estimates put the population at closer to 63million
Part Population %

England

50,762,900

83.8

Scotland

5,116,900

8.4

Wales

2,965,900

4.9

Northern Ireland

1,741,600

2.9

Age Structure
Age Male Female %

0–14

5,560,489

5,293,871

15.3

15–64

20,193,876

19,736,516

65.1

65+

4,027,721

5,458,235

19.6

Age Structure

Ethnicity
Ethnic group British Population 50,366,497 % 85.67%

Other european
Indian Pakistani Irish Mixed race

3,096,169
1,053,411 977,285 691,232 677,117

5.27%
1.8% 1.6% 1.2% 1.2%

Caribbean
African Bangladeshi Chinese Other

565,876
485,277 283,063 247,403 230,615

1.0%
0.8% 0.5% 0.4% 0.4%

Religion
Religion Christian Muslim Hindu Sikh Jewish Buddhist Number 42,079,000 1,591,000 559,000 336,000 267,000 152,000 % 71.6% 2.7% 1.0% 0.6% 0.5% 0.3%

Other religion

179,000

23.1%

Religion

Languages
•English •Scots

•Ulster
•Welsh

Scots

•Scottish

Gaelic •Scotland Cornish •Irish •Polish

UK places with large Indian population
Region London West Midlands East Midlands South East North West East Population of region 7,556,900 5,381,800 4,399,600 8,308,700 6,864,300 5,661,000 5,177,200 5,178,000 Indian population 501,600 199,900 147,200 140,800 99,900 88,200 76,400 42,400 Percentage of total population 6.6% 3.7% 3.3% 1.7% 1.5% 1.6% 1.5% 0.8%

Yorkshire and the Humber
South West

North East
Scotland Wales

2,549,700
5,094,800 2,903,085

17,900
17,000 8,200

0.7%
0.3% 0.3%

Northern Ireland

1,685,267

1,600

0.1%

Importance of Leicester
?Leicester

is set to soon become the UK's first ethnic minority-majority city and Indians make up by far the largest ethnic group.
?Leicester

has one of the highest percentages of Indians per head of the population of any local authority in the UK.
?Leicester

accounts for (25.0%) 73,100 of London’s Indian population of 501,600 (6.6% of the city's population)

EXPORT OF SPICES FROM INDIA

Logistics

Spices Processed Spices Procured from Farmers

Export Packaging

Containerization Shipped to retailers via distributors Ship load

Spices Packaging for Export
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Wooden boxes Plywood boxes with aluminum lining Paper packaging Cartons

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?

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Export via Sea Route
Loaded at Nhava Sheva International Port - Mumbai Cochin Port – Kerela and transported to Grimsby and Immingham Port – UK London Port – UK *Grimsby and Immingham is the biggest and busiest port in UK

Sea Route from India to UK
London Port, UK

Suez Canal

Nhava Sheva, Mumbai Cochin Port, Kerela

Statistics: Sea route
? ? ? ?

Nautical miles : 3890 nautical miles Time taken to reach UK : 15-20 days appox Port clearance : 1 day The rates are $500 for a 20 feet container and $900 for a 40 feet container

Registration & Licensing
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Mandatory quality check
?
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Chilli/chilli products or other food products containing chilli products Turmeric Powder

IE Code certificate ? Registration fee of Rs. 2000/? Confidential Bank certificate ? Self certified/attested copies of Sales Tax Registration (CST/VST/VAT) certificate.
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Documents Required
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Commercial invoice Bill of landing or airway bill Packing list Insurance documents Special certificates of origin Sanitation Ownership Import declaration in UK
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What the goods are? Commodity Code

Spices Board of India
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Exports and imports are regulated by the Foreign Trade (Development and Regulation) Act, 1992
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Export and Import (EXIM) Policy

Constituted on 26th February 1986 ? Spices Board Act 1986
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Spices Board - Main Functions
? ? ? ? ? ? ? ? ?

Research & production development of vanilla Post harvest improvement of all spices Promotion of organic production, processing and certification of spices Export promotion Quality certification Quality control Registration of exporters Collection & documentation of trade information Provision of inputs to the Central Government on policy matters relating to import & export of spices

Spices Board’s Initiatives for Export Development
Award of Spice House Certificate for good manufacturing practices ? Award of Logo for quality of the product ? Accreditation under ISO 9000 for international acceptance
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EXPORT OF SPICES INTO UK

UK Import Procedure
HM Revenue & Customs ? Correct 'class' or commodity code ? 091091- Spices ? Form C88 Single Administrative Document (SAD) ? The HM Revenue & Customs Integrated Tariff of the United Kingdom
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UK Import Procedure Contd…
Seasonal ticket’ valuation statement ? Custom Freight Simplified Procedure ? Warehouse ? Free Zones ? Inland Clearance Depot (ICD) ? Enhanced Remote Transit Sheds( ERTS) ? Interport Removals ? Transit and Shipments
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Marketing Strategy
•Packaging

Development including design and bar coding. •Business promotional trips. •Participation in international food fairs. •Forwarding business samples abroad. •Printing of promotional brochures. •Directory of Importers and Exporters.

Marketing Strategy
•Foreign

Trade Enquiry Bulletin. •Spice Market (a weekly publication in English providing market information) •Tie up with Indian Restaurants •Small Retail Outlets •Expand in EU

Marketing Strategy
?Launching

the book titled “ Secret Recipes” this will book features 100 Indian and international recipes made with our Spices.

References
http://www.indianspices.com ? www.indianspices.com/html/spices_board _advocacy_pfa.htm ? http://customs.hmrc.gov.uk ? http://www.thehindubusinessline.com/201 0/06/21/stories/2010062151651400.htm
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THANK YOU! ?



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