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SHADVARNA

COMMODITI
ES LIMITED
PROJECT REPORT
ON
IMPORTS & EXPORTS OF ALL KINDS OF
COMMODITIES

Registered Office:
11-2-7/4, Flat No 2A,
Opp: Dasapalla Executive Court,
Ram Nagar,
Visakhapatnam 530 003
Andhra Pradesh, INDIA

Location:
11-2-7/4, Flat No 2A,
Opp: Dasapalla Executive Court,
Ram Nagar,
Visakhapatnam 530 003
Andhra Pradesh, INDIA

INDEX:
1. Project at a glance
2. Company Profile
3. Product Introduction
4. Scope of the Project
5. Constitution / Sector
6. Background of the Promoter
7. Marketing
8. Location Advantages
9. Licenses
10.
Project Cost & Means of Finance
11.
Notes on Project Cost
12.
Notes on Means of Finance
13.
Utilities
14.
SWOT Analysis

Project at a Glance
1. Name of the Unit
2. Office

SHADVARNA COMMODITIES LTD.,


11-2-7/4, Flat No 2A,
Opp: Dasapalla Executive Court,
Ram Nagar,
Visakhapatnam 530 003

3. Location

11-2-7/4, Flat No 2A,


Opp: Dasapalla Executive Court,
Ram Nagar,
Visakhapatnam 530 003

4. Line of Activity

Imports and Exports of All Kinds of

5. Sector
6. Constitution
7. Name of the Promoters

Commodities
Small
Limited
PILLA VENKATA RAMANA BABU
PILLA RAMA LAKSHMI

PILLA VEERA SIVA KISHORE


KARRI LALITHA SIVA JYOTHI
PILLA SURYA JANARDHANA RAO
POLIMERA VENKATA LAKSHMI
PILLA PADMA PYDIRAJU

Company Profile
The Limited Company M/s Shadvarana Commodities Limited is for
carrying on business of exporters, importers, liaison agents, suppliers,
stockiest, agents, buyers, sellers, C & F agents, dealers and distributors of
all

kinds

of

food,

agricultural

products,

agro-herbal-horticultural,

pisciculture, sericulture, floriculture and apiculture products, marine


products, aqua seed and equipment etc.,
Carry on business of all kinds of selling and purchasing activities
directly or indirectly both internal and external markets on its own or as
commission, agents, to act as service agents for providing services etc.,

Carry on business as terminal port operators, cargo handling


services, freight contractors, freight forwarding services, chatterers,
clearing and forwarding agents and all kinds of merchandise, industrial,
chemical and commercial goods containerized cargo and other goods and
articles of every description and also to provide services of trans loading
and transhipment operations.
Name of the Promoters:

Mr. Pilla Venkata Ramana Babu


Mrs. Pilla Ramalakshmi
Mr. Pilla Veera Siva Kishore
Mrs. Karri Lalitha Siva Jyothi
Mr. Pilla Surya Janardhana Rao
Mrs. Poilera Venkata Lakshmi
Mrs. Pilla Padma Pydiraju

Introduction
Import:
The term impor t is derived from the conceptual meaning as to bring in the
goods and services into the port of a country.
The buyer of such goods and services is referred to an "importer

Export:

This term expor t is derived from the conceptual meaning as to ship the goods
and services out of the port of a country.
The seller of such goods and services is referred to as an "exporter"

Balance of Trade:
Balance of trade represents a difference in value for impor t and expor t
for a country.
A trade deficit occurs when impor ts are large relative to exports.
Impor ts are impacted principally by a
income and it productive resources.

country's

Types of Import:
There are two basic types of impor t:

Industrial and consumer goods


Intermediate goods and services
Types of Export:
Physical Export : If goods physically go out of the country.
Deemed Export : If goods and services are supplied to another entity.
Export and Import Process:

Register as an
AN
Exporter or
IMPORTER
Importer
OR
EXPORTER
r

Submit to the
bank for onward
Transmission to
Buyer

Negotiate Terms
of Sales

For Export,
Complete
Custom
Formalities and
obtain

Understand
Export
Formalities and
Responsibility
towards sale
Proceeds
Understand
Documentation
and Incoterms

Receive Sale
Proceedings

Advantages of Import:
Reduce dependence on existing markets
Exploit international trade technology
Extend sales potential of existing products
Maintain cost competitiveness in your domestic market

Disadvantages of Import:
Impor tation of items from other countries can increase the risk of
getting them which is no more common in the warm weather.
it leads to excessive competition

It also increases risks of other diseases from which the country is


expor ting the goods.
Advantages of Export:
Exporting is one way of increasing your sales potential
Increasing sale& profits
Reducing risk and balancing growth
Sell Excess Production Capacity.
Gain New Knowledge and Experience

Disadvantages of Export:
Extra Costs
Financial Risk
Export Licenses and Documentation
Market Information

Modes of Payment:
In order to complete the export process, the payment of the exported
goods has to be received by the exporters. An exporter can receive the
export proceeds as
ADVANCE PAYMENT
PAYMENT AGAINST DOCUMENTARY BILLS
PAYMENT AGAINST DOCUMENTARY BILLS UNDER LETTER OF

CREDIT

Role of Export Documentation:


Export documentation plays a vital role in international marketing as it
facilitates the smooth flow of goods and payments thereof across national
frontiers.
Exporters are required to follow certain formalities and procedures,
using a number of documents.
Each of these documents serves a specific purpose and hence carries
its own significance.
A clear understanding of all documents and their purpose, how to
prepare these, number of copies required, when and where to file, is a
must for all export professionals.
Export Documentation in India has evolved a great deal of interest since
1990.
Efforts are on, at a faster footing to streamline and modernize the
system further.
Prior to 1990, documentation was manual and it lacked proper coordination.

The result was lot of delays and mistakes, rendering the task very
clumsy, tiresome, repetitive, and truly frustrating.
India adopted the ADS (Aligned Documentation System) in 1991 which
is the internationally accepted documentation system Export
documentation is complex in nature as the number of documents to be
filled-in is very large, so also is the number of the concerned authorities to
whom the relevant documents to be submitted.
It is, therefore, advisable to take the help of shipping and forwarding
agents who will obtain and fill out the documents correctly as well as
arrange for transportation.
There are buyers and exporters, buying agents, RBI, authorized dealers
(where the exporter has his bank Account), buyers bank (foreign bank),
DGFT, Customs and Port Authorities, VAT and Excise Authorities, EPCs,
Insurance Companies, Inspection Agencies, Clearing and Forwarding
Agents, Shipping Companies/Airlines and Inland Carriers etc
Proper Documentation will ensure smooth sailing with the requirements of
the above agencies and the resulting transaction will be a successful one.
Inaccurate or incomplete documentation will result in serious financial
and goodwill losses.
Such losses can be completely avoided by understanding clearly the
documentation
requirements of all concerned parties and then meticulously planning to
get the right documents in the right numbers, at the right places and at
the right time.
Classification of Documentation:
Export Documents can be classified into following four categories:
(1) Commercial Documents
(2) Regulatory Documents
(3) Export Assistance Documents
(4) Documents Required by Importing Countries
(1) Commercial Documents: These documents are used by
exporters/importers to discharge their respective legal and other
incidental responsibilities under sales contract.
Commercial documents can be further sub-divided into:
(i) Principal Commercial Documents
(ii) Auxiliary Commercial Documents
(i) Principal Commercial Documents: These documents serves the
following purposes:
(a) To effect physical transfer of goods and title of the goods from exporter
to the buyer.
(b) To realize export sales proceeds.
Principal Documents include:
Commercial Invoice (and the invoice prescribed bythe importer)
Packing list
Certificate of Inspection
Certificate of Insurance/Insurance Policy
Bill of Lading/Airway bill/Combined Transport Documents
Certificate of Origin
Bill of Exchange
Shipment Advice

Auxiliary Commercial Documents: These Documents are required to


prepare /procure the principal commercial documents and include:
Proforma Invoice
Shipping Instructions
Insurance Declaration
Intimation for Inspection
Shipping Order
Mates Receipt
Application for Certificate of Origin
Letter to bank for negotiation /collection of
Documents
(2) Regulatory Documents: These are prescribed by various
Government Departments/Bodies for compliance of formalities under
relevant laws governing export transactions. These include:
(i) Exchange Control Declaration Form-GR Form
(ii) Freight Payment Certificate
(iii) Insurance Premium Payment Certificate
(iv) ARE I/ARE II Forms
(v) Shipping Bill/Bill of Export
(vi) Port Trust Copy of Shipping Bill/Export
Application/Dock Challan
(vii) Receipt of Payment of Port Charges
(viii) Vehicle Ticket.
(3) Export Assistance Documents: These are the documents which are
required for claiming assistance under the various export assistance
measures as may be in operation from to time. Currently, these refer to
drawbacks of central excise and customs duties, packing credit facilities
etc
(4) Documentation required by Importing
Countries: These are the documents which are required by the importer
in order to satisfy the requirements of his Government. These include
certificates of origin, consular invoice, quality control certificate etc.

Commercial Documents:

(1) Commercial Invoice:


It is the basic and most important document in an export transaction
and extreme care has to be taken by the exporter to prepare this
document.
This document requires the exporter to submit details such as his own
details, Invoice number with date, details of the consignee and buyer (if
the buyer is other than consignee), buyers order number with date,
country of origin of the goods, country of final destination, terms of
payment and delivery, pre-carriage details (Road/Rail), vessel/flight
number, port of loading, port of discharge, final destination, container
number, number and kind of packaging, detailed description of goods,
quantity, rate and total amount chargeable etc
Therefore, a Commercial Invoice contains the complete details of the
export order.
Normally, the trade practice is to raise and send a Proforma Invoice to
the buyer for his approval, once the order has been finalized.

On receipt of the approved Proforma Invoice, the exporter can use it as


a part of the export contract.
The Commercial Invoice then becomes easier to prepare on the basis of
the approved Proforma Invoice.
(2) Packing List:
This document provides the details of number of packages; quantity
packed in each of them; the weight and measurement of each of the
package and the net and gross weight of the total consignment.
Net weight refers to the actual weight of the items and the gross weight
means the weight of the items plus the weight of the packing material.
The packing list serves a useful purpose of the exporter while
dispatching the consignment as a cross check of goods sent.
For the port personnel, it comes handy while planning the loading and
offloading of cargo.
It is also an essential document for the customs authorities as they as
they can carry out the physical examination of the cargo and conduct
checks on the weight and measurements of the goods smoothly against
the declarations made by the exporter in the packing list.
(3) Certificate of Inspection: This is the Certificate issued by the Export
Inspection Agency after it has conducted the pre-shipment inspection of
goods for export provided the goods fall under the notified category of
goods requiring compulsory shipment of inspection.
(4) Certificate of Insurance/Insurance Policy:
Insurance is an important area in the export business as the stakes are
usually very high.
Protection needs to be taken in the form of insurance cover for the
duration of transit of goods from the exporter to the importer.
(5) Bill of Lading:
This is issued when the goods are shipped using ocean (marine)
transport.
When the exporter finally hand over the goods to the shipping company
for loading on board the ship for transport to their final destination, the
shipping company issues a set of Bills of Lading to the exporter.
(6) Airway Bill:
Airway Bill is a bill of lading when the goods are shipped using air
transport.
It is also known as air consignment note or airway bill of lading.
(7) Combined Transport Document:
This is also known as Multi-modal Transport Document.
Ever since containers have become popular, the concept of Combined
Transport Document has gained solid ground.
(8) Certificate Of Origin:
This document serves as a proof of the country of origin of goods for
the importer in his country.
Imported countries usually require this to be produced at the time
customs clearance of import cargo.
It also plays an important part in computing the liability and the rate of
import duty in the country of import.
This certificate declares the details of goods to be shipped and the
country where these goods are grown, manufactured or produced.
Such goods needs to have substantial value addition so as to become
eligible to certification of this nature.

(9) Bill of Exchange:


Also known as Draft, this is an instruments for payment realization.
It is a written unconditional order for payment from a drawer to a
drawee, directing the drawee to pay a specified amount of money in a
given currency to the drawer or a named payee at a fixed or determinable
future date.
The exporter is the drawer and he draws (prepares and signs) this
unconditional order in writing upon the importer (drawee) asking him to
pay a certain sum of money either to himself or his nominee (endorsee).
This order could be made for payment on demand, called a bill of
exchange at sight or payment at a future date, called a usance bill of
exchange.
(10) Shipping Advice:
The exporter sends this document , called shipping advice, to the buyer
soon after the shipment is made to provide him all the shipment details.
This serves as an advance intimation of the shipment and allows the
importer to arrange for delivery of the same.

Risk Management in Export-import Business

Risk is a fact of business life, more so of international business.


The Management of International business is the management of risk.
No manager can make a strategic business decision or enter into
important business transaction without a full evaluation of the risks
involved.
Many of the best business plans have been ruined
by a miscalculation or a mistake, or an error in judgment that could have
been avoided with proper planning.
If the risk cannot be reduced through advance planning and careful
execution, perhaps it can be shifted to some other party to the
transaction.
If the risk cannot be shifted to another party to the transaction, it
might be shifted to an
insurance company.
Many types of risks can be insured against, including the risk of
damage to the goods at
sea, the risk of loosing an investment in a developing country and many
others.
(1) Risk Assessment and the Firms Foreign
Market Entry Strategy:
When a firm is considering its entry or expansion in a foreign market, it
must consider all options and decide on a course of action commensurate
with its objectives, capabilities and its willingness to assume risk.
Selling to a customer in another country results in less risk to the firm
than licensing trademarks, patents and copyrights there.
(2) Managing Distance and Communications:
The risks of doing business in a foreign country are different from those
encountered at home.
A firm doing business in a foreign country would encounter greater
distances; problems in
Communications; language and cultural barriers; differences in ethical,
moral and religious codes; exposure to strange foreign laws and
government regulations; and different currencies. All these factors affect
the risks of doing business abroad.

(3) Managing Currency and Exchange Rate Risks:


Currency risk is risk a firm is exposed to as a result of buying, selling, or
holding a foreign currency.
Currency risk includes:
(i) Exchange Rate Risk
(ii) Currency Control Risk
(i) Exchange Rate Risk: Exchange rate risk results from the fluctuations
in the relative values of the foreign currencies against each other when
they are bought and sold on international financial markets.
(ii) Currency Control Risk:
Some countries, particularly developing countries where access to
ready foreign reserve is limited, put restrictions on currency transactions.
In order to preserve the little foreign exchange that is available for
international transactions, such as importing merchandise, these countries
restrict the amount of foreign currency that they will sell to private
companies.
This limitation can cause problems for a U.S or any other country
exporter waiting for payment from its foreign customer who cannot obtain
the dollars needed to pay for the goods.
(4) Special Transactions Risks in Contracts for the Sale of Goods:
Special risks are inherent in international transactions for the purchase
and sale of goods.
These transactions present special risks to both the parties because the
process of shipping goods and receiving payment between distant
countries is riskier than within a country. Such risks are:
(i) Payment or Credit Risk
(ii) Property or Marine Risk
(iii) Delivery Risk
(iv) Pilferage and Theft Risk
(5) Managing Political Risk:
Political Risk is generally defined as the risk to a firms business
interests arising form political instability or political change in a country in
which the firm is doing business.
Political Risk includes risk derived from potentially adverse actions of
Governments of the foreign countries in which one is doing business or
whose laws and regulations one is subject to.
It also includes laws and Government policies instituted by the firms
home country which adversely affect the firms that do business in a
foreign country.
(6) Risks of Foreign Laws and Courts:
Many Acts that are perfectly legal in one country can be illegal in
another. Indeed, most travelers to a foreign country could conceivably
break a host of laws and not even be aware of it.
The same is true for the law of contracts, employment, competition,
torts and other business laws.
It is virtually impossible to catalog all of the differences between these
laws from country to country
(7) Commercial Risks: The risks arising from suitability of the product
for the market or
otherwise change in supply and demand conditions and changes in price.
Commercial risks arise due to:

(i) Lack of Knowledge


(ii) Inability to adapt to the environment
(iii) Different kinds of situations to be dealt with
(iv) Greater transit time involved

(8) Cargo Risk:


Transit disasters are an ever present hazard for those engaged in
Export-Import business.
Every shipment runs the risk of a long list of hazards such as storm,
collision, theft, leakage, explosion, spoilage etc. It is possible to transfer
the financial losses resulting from perils of and in transit to professional
risk bearers known as underwriters.
As most goods are transported by marine transport, every exporter
should have an elementary knowledge of marine insurance to get the
protection at the minimum cost.
Global trade relations

A map showing the global distribution of Indian exports in 2006 as a


percentage of the top market (USA $20.9 billion).
Until the liberalisation of 1991, India was largely and intentionally isolated
from the world markets, to protect its economy and to achieve selfreliance. Foreign trade was subject to import tariffs, export taxes and
quantitative restrictions, while foreign direct investment (FDI) was
restricted by upper-limit equity participation, restrictions on technology
transfer, export obligations and government approvals; these approvals
were needed for nearly 60% of new FDI in the industrial sector. The
restrictions ensured that FDI averaged only around $200 million annually
between 1985 and 1991; a large percentage of the capital flows consisted
of foreign aid, commercial borrowing and deposits of non-resident Indians.
India's exports were stagnant for the first 15 years after independence,
due to general neglect of trade policy by the government of that period.
Imports in the same period, due to industrialisation being nascent,
consisted predominantly of machinery, raw materials and consumer
goods.

India's exports (top) and imports, by value, in 2013-2014.


Since liberalisation, the value of India's international trade has increased
sharply, with the contribution of total trade in goods and services to the
GDP rising from 16% in 199091 to 47% in 200810. India accounts for
1.44% of exports and 2.12% of imports for merchandise trade and 3.34%
of exports and 3.31% of imports for commercial services trade
worldwide. India's major trading partners are the European Union, China,
the United States of America and the United Arab Emirates. In 200607,
major export commodities included engineering goods, petroleum
products, chemicals and pharmaceuticals, gems and jewellery, textiles
and garments, agricultural products, iron ore and other minerals. Major
import commodities included crude oil and related products, machinery,
electronic goods, gold and silver. In November 2010, exports increased
22.3% year-on-year to 850.63 billion (US$14 billion), while imports were
up 7.5% at 1251.33 billion(US$20 billion). Trade deficit for the same
month dropped from 468.65 billion (US$7.4 billion) in 2009 to 400.7
billion (US$6.4 billion) in 2010.
India is a founding-member of General Agreement on Tariffs and
Trade (GATT) since 1947 and its successor, the WTO. While participating
actively in its general council meetings, India has been crucial in voicing
the concerns of the developing world. For instance, India has continued its
opposition to the inclusion of such matters as labour and environment
issues and other non-tariff barriers to trade into the WTO policies.[

Balance of payments

Cumulative Current Account Balance 19802008 based on IMF data


Since independence, India's balance of payments on its current
account has been negative. Since economic liberalisation in the 1990s,
precipitated by a balance of payment crisis, India's exports rose
consistently, covering 80.3% of its imports in 200203, up from 66.2% in
199091. However, the global economic slump followed by a general
deceleration in world trade saw the exports as a percentage of imports
drop to 61.4% in 200809. India's growing oil import bill is seen as the
main driver behind the large current account deficit, ] which rose to
$118.7 billion, or 11.11% of GDP, in 200809. Between January and
October 2010, India imported $82.1 billion worth of crude oil.
Indian economy has run a trade deficit every year over 2002-2012 period,
with a merchandise trade deficit of US$189 billion in 2011-12. Its trade
with China has the largest deficit, about $31 billion in 2013.
India's reliance on external assistance and concessional debt has
decreased since liberalisation of the economy, and the debt service
ratio decreased from 35.3% in 199091 to 4.4% in 200809. In
India, External Commercial Borrowings (ECBs), or commercial loans from
non-resident lenders, are being permitted by the Government for
providing an additional source of funds to Indian corporates. The Ministry
of Financemonitors and regulates them through ECB policy guidelines
issued by the Reserve Bank of India under the Foreign Exchange
Management Act of 1999. India's foreign exchange reserves have steadily
risen from $5.8 billion in March 1991 to $318.6 billion in December
2009. In 2012, the United Kingdom announced an end to all financial aid
to India, citing the growth and robustness of Indian economy

Scope of the Project


The envisaged project is to Imports and Exports of all kinds of
Commodities Door No: 11-2-7/4, Flat No 2A, Opp: Dasapalla Executive
Court, Ram nagar, Visakhapatnam Dist.. The administrative office at Door
No: 11-2-7/4, Flat No 2A, Opp: Dasapalla Executive Court, Ram nagar,

Visakhapatnam 530 003. The Project cost is estimated of Rs Cr. The


installed capacity is 2, 00,000 MTS per annum

Constitution & Sector


Constitution
Shadvarna Commodities Limited, unit is constituted as a company
act for Imports and Exports of All Kinds of Commodities.
Sector :
The proposed sector comes under Small Sector. The company has
already obtained registration Certificate from District Industries Centre,
Visakhapatnam.

Background of the Promoter


Mr. Pilla Venkata Ramana Babu S/o P Surya Janardhana Rao aged 42
years, residing at 11-2-7/4, Ram nagar, Opp: Dasapalla Executive
Court, Visakhapatnam.
He is a graduate. He is having over 15
years experience in Transport Business. He is financially sound
besides possessing good leadership qualities and vast experience in
business dealing and solving labour problems. With his experience
and influence he plays a key role in making this successful project
Mrs. Pilla Ramalakshmi w/o Dadi Ramanjaneyulu aged 34 years,
residing at 15-12-34(1), Gavarapalem, Anakapalli, Visakhapatnam.
She is a graduate. She is having 3 years experience in dealing of
Trading and financially sounds besides possessing the required
competence and business skills to make the proposed project a
successful and profitable venture.
Mr. Pilla Veera Siva Kishore S/o P Surya Janardhana Rao aged 35
years,
residing
at
15-12-34(1),
Gavarapalem,
Anakapalli,
Visakhapatnam. He is a graduate. He is financially sound besides
possessing good leadership qualities and vast experience in
business dealing and solving labour problems.
Mrs. Karri Lalitha Siva Jyothi w/o Karri Appa Rao aged 38 years,
residing at Flat No 310, Sobha Pavani Apts, Vidyanagar, Hyderabad,
TG. She is a graduate. She is an income tax assesse.

Mr. Pilla Surya Janardhana Rao S/o P Pramatayya Naidu aged 66


years,
residing
at
15-12-34(1),
Gavarapalem,
Anakapalli,
Visakhapatnam. He is an income tax assesse. He is having over 30
years experience in other Businesses. He is financially sound
besides possessing good leadership qualities and vast experience in
business dealing and solving labor problems. With his experience
and influence he plays a key role in making this successful project
Mrs. Poilera Venkata D/o P Surya Janardhana Rao aged 42 years,
residing at 15-12-34(1), Gavarapalem, Anakapalli, Visakhapatnam.
She is a graduate. She is an income tax assesse. She is having
some sort of experience in the same line of activity.
Mrs. Pilla Padma Pydiraju D/o P Surya Janardhana Rao aged 39
years,
residing
at
15-12-34(1),
Gavarapalem,
Anakapalli,
Visakhapatnam. She is a graduate. She is an income tax assesse.
She is having some sort of experience in the same line of activity

Location & its Advantages


LAND: The proposed location of the Unit is situated at Door No: 11-2-7/4,
Flat No 2A, Opp: Dasapalla Executive Court, Ram nagar, Visakhapatnam
530 003, Visakhapatnam Dist. The location of the company has
considerable influence on the techno-economical facility. There are
various factors contributing to the functioning of an company and
following are the primary factors taken into consideration.

REASONS FOR THE SELECTION OF THE SITE:


1. Availability of labor at economically rate.
2. Adequate supply of electricity power.
3. Adequate supply of water throughout the year.
4. The site is well connected with road facility.
5. Banking facilities and Government supports.
6. Adequate Transport facilities for economical transportation of
finished product and Spare parts.
7. Nearness to the Market.
8. As the area is developing area, the setting up of a unit in this will
help the people to progress both socially and economically. There
are several Engineering Colleges around the proposed unit.

Licenses
The following licenses will be required for the Starting up the Company:
1. Part I
2. Memorandum of Articles

Market Potential

India's total merchandise trade has increased over three-fold from $252bn
in 2006 to $794 in 2012 - both exports and imports have trebled during
this period according to the Export-Import Bank of India (Exim bank). The
bank is the premier export finance institution of the country and was set

up for the purpose of financing, facilitating, and promoting foreign trade of


India
Exports
India's key exports in 2012 were petroleum products which generated
$56bn, followed by gems and jewellery with $47bn. Pharma products,
transport equipment, machinery and readymade garments are also big
exports for India.
The 2012 data shows that the United Arab Emirates (UAE) was India's
biggest export market, closely followed by the USA. The latest data
available from the Indian Government's Ministry of Commerce and
Company covering April-September 2012, shows the US to have slightly
overtaken the UAE. Explore the graphic above to see India's imports and
exports by value and year. The UK is the eighth biggest export market for
India and held 2.9% of the market share in April-September 2012.
Imports:
Crude petroleum is India's biggest import with $155bn spent on it in 2012.
Imports of gold and silver amounted to $62bn and electronic goods and
pearls and precious stones are also top import items for the country.
India's top import source is China followed by the UAE, Switzerland and
Saudi Arabia. The UK came in at 21st place in 2011-12 with India
importing a total of $7.7bn. In the six months recorded so far for 2012-13,
the UK has dropped a place and has a 1.4% share of the India's import
sources.
Top ten exporters to India, by value of trade in US$m and share of total
Country

2012-2013 (Apr- Sep)

%Share (2012-2013 (Apr- Sep)

CHINA

28025.57

11.92

UAE

19622.81

8.35

SAUDI ARABIA

16094.83

6.85

USA

12208.05

5.19

SWITZERLAND

10779.45

4.59

IRAQ

9803.79

4.17

QATAR

8144.45

3.47

KUWAIT

8134.73

3.46

Top ten exporters to India, by value of trade in US$m and share of total
Country

2012-2013 (Apr- Sep)

%Share (2012-2013 (Apr- Sep)

GERMANY

7154.41

3.04

INDONESIA

6944.86

2.95

Top ten importers from India, by value of trade in US$m and share of total
Country

2012-2013 (Apr- Sep)

%Share (2012-2013 (Apr- Sep)

USA

19704.05

13.87

UAE

18601.71

13.09

SINGAPORE

6652.77

4.68

CHINA

6417.32

4.52

HONG KONG

6137.9

4.32

SAUDI ARAB

4636.29

3.26

NETHERLANDS

4458.24

3.14

UK

4112.26

2.89

GERMANY

3491.77

2.46

BRAZIL

3042.64

2.14

Notes on Project Cost


Land & Buildings:

The proposed unit is being set up at Survey No: 205/29,30, Koduru Village,
Anakapalli Mandal, Visakhapatnam Dist and the administrative office at
Flat

No

104,

Bhavana

Heights,

Sramik

Nagar,

Chinagantyada,

Visakhapatnam 530 026. The promoter already acquired land for setting
up the unit. The location is quite suitable for setting up the unit.
Plant & Machinery:-

The machinery and equipment worth of Rs. 668.00 lacs are required to run
the unit. The promoter has already approached reputed suppliers,
obtained quotations and enclosed the same for your reference.
Working Capital:-

An amount of Rs. 225.00 Lacs provided towards working capital facility to


run the unit in smooth levels. The detailed working requirement placed as
annexure.

Notes on Means of Finance


1. CAPITAL:
The promoters capital was fixed at Rs.343.00 Lacs.
2. TERM LOAN:
The

unit

desires

to

avail

Term

Loan

of

Rs.

730.00

Lacs.

from

Bank/Financial Institute to meet part cost of the project cost, which works
out to % of the total project cost of Rs. 1298.00 Lacs. The amount would
be repayable in 28 quarterly installments of Rs. 26.07 lacs each with a
moratorium of twelve months from the date of commencement of
Commercial Production.

However, the interest on the term loan would be

payable as and when it is applied on the account.

The detail of the

repayment programmed is placed in this report.

Utilities & Services


POWER:
The Unit requires 150 HP power supply under L.T.

Limit. No

problems are anticipated with regard to obtaining of power supply.


WATER:
The unit requires 1,000 Liters of water per day.

EFFLUENTS:
There are no harmful effluents generated in the process.
TRANSPORTATION:
The proposed unit is located at Survey No: 205/29,30, Koduru
Village, Anakapalli Mandal, Visakhapatnam Dist. There is no problem
for transportation of raw material and finished goods.
MANPOWER REQUIREMENTS:
The unit will be employing 19 Nos. of workers besides Nos. of
administrative staff. All the above persons can be recruited locally
without any difficulties.

SWOT Analysis

STRENGTH:
The unit is located at Survey No: 205/29,30, Koduru Village,
Anakapalli Mandal, Visakhapatnam Dist.

The company is having some sort of experience in the same line of


activity

WEAKNESS:

The unit has competition from the existing units as the proposed unit
is having latest technology and by the government encouragements to
start new company the units can competent with the old industries.

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