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    Bhavan'S College, Andheri (2009-10) : Importance of Export Incentives in Promoting Exports From India

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    Tarush Goradia
    The document discusses incentives provided by the Indian government to promote exports. It profiles M/S Marve Wines, an alcohol exporter that receives a 15% subsidy on exports and exemptions on import duties and taxes. The company faces competition from other exporters but aims to expand to new markets in Kenya and Malaysia. The conclusion emphasizes that incentives encourage more exports and help companies succeed globally, though exporters also face challenges like rejected shipments.

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    Bhavan'S College, Andheri (2009-10) : Importance of Export Incentives in Promoting Exports From India

    Uploaded by

    Tarush Goradia
    40 views17 pages
    The document discusses incentives provided by the Indian government to promote exports. It profiles M/S Marve Wines, an alcohol exporter that receives a 15% subsidy on exports and exemptions on import duties and taxes. The company faces competition from other exporters but aims to expand to new markets in Kenya and Malaysia. The conclusion emphasizes that incentives encourage more exports and help companies succeed globally, though exporters also face challenges like rejected shipments.

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    The document discusses incentives provided by the Indian government to promote exports. It profiles M/S Marve Wines, an alcohol exporter that receives a 15% subsidy on exports and exemptions on import duties and taxes. The company faces competition from other exporters but aims to expand to new markets in Kenya and Malaysia. The conclusion emphasizes that incentives encourage more exports and help companies succeed globally, though exporters also face challenges like rejected shipments.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    40 views17 pages

    Bhavan'S College, Andheri (2009-10) : Importance of Export Incentives in Promoting Exports From India

    Uploaded by

    Tarush Goradia
    The document discusses incentives provided by the Indian government to promote exports. It profiles M/S Marve Wines, an alcohol exporter that receives a 15% subsidy on exports and exemptions on import duties and taxes. The company faces competition from other exporters but aims to expand to new markets in Kenya and Malaysia. The conclusion emphasizes that incentives encourage more exports and help companies succeed globally, though exporters also face challenges like rejected shipments.

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    You are on page 1of 17

    BHAVAN’S COLLEGE, ANDHERI

    (2009-10)

    IMPORTANCE OF EXPORT INCENTIVES


    IN PROMOTING EXPORTS FROM
    INDIA

    NAME DIVISION ROLL NO.


    TARUSH GORADIA 2 184
    SUSHIL AGRAWAL 2 124
    KARUNA SRIDHAR 2 219
    RUCHI BAROT 2 134
    TABLE OF CONTENTS
     LETTERHEAD OF THE COMPANY

     INTRODUCTION

     COMPANY PROFILE
     COMPANY’S NAME AND INTRODUCTION
     PRODUCT EXPORTED , PRODUCT DEMAND & PRODUCT COST
     MARKET SHARE OF THE COMPANY IN THE COUNTRIES EXPORTED AND
    COMPETITORS
     FUTURE PROSPECTS

     INCENTIVES
     INCENTIVES RECIEVED BY THE COMPANY
     GENERAL INCENTIVES UNDER EXIM POLICY AND GOVT. OF INDIA

     PROCEDURE TO GET INCENTIVES

     DOCUMENTS REQUIRED TO APPLY FOR INCENTIVES

     PROBLEMS FACED BY THE EXPORTERS

     SUGGESTIONS FOR THE PROBLEMS FACED BY THE EXPORTERS

     TESTIMONIALS BY THE DIRECTOR OF MUKUND INDUSTRIES

     BALANCE SHEET OF M/S MARVES WINES & CO.

     CONCLUSION
    INTRODUCTION

    Export plays a vital role in the economic development of a nation. To


    increase export earnings, there is a need for efficient marketing and good
    incentives for the same.

    Thus, Government of India under EXIM Policy has been giving number of
    incentives for encouraging exports from India.

    There are trade related incentives as well as money back or subsidy based
    incentives due to which the exporters from India earn high earnings .Some
    of the incentives are like Exemption from excise duty, exemption from Sales
    Tax or VAT or subsidised rates for imports of plant and machinery etc.

    For a better study of these incentives and to understand the procedure to get
    these incentives, M/S Marve Wines & Co. which is a part of Mukund Pvt.
    Ltd helped us. Our group visited the field, in Malad and got to know the
    insight of this larger to life Export and Import Business.
    COMPANY PROFILE

    COMPANY’S NAME

    NAME OF THE COMPANY: M/S MARVE WINES


    (A Part of Mukund Private Limited)

    COMPANY OWNER: Mr. T.M. KAMBLE


    Mrs. NANDA KAMBLE
    Mr. KANISHKA KAMBLE

    INTRODUCTION OF THE COMPANY

    Mukund Private Limited was established in the year 1992, it started with two
    partners with a nominal investment of rupees 10 Lakhs and now it’s a company
    worth more than 20 crores.

    Mukund Private Limited has spread its business over many fields such as
    construction, media, printing press, exports etc.

    M/s Marve Wines is one of its companies which exports various alcohol and
    also sells some of the biggest brands of alcohol in the market. It has turnover
    of Rs. 6 Crores in the year 2008-09. Marve Wines is located in Malad, Mumbai
    and handled by Mr. Gupta. M/s Marve Wines exports in many countries such
    as Nigeria, Uganda and other part of Africa along with some countries of
    Europe and Canada.

    M/S Marve Wines now plans to open a new branch at the happening zone of
    south Mumbai and expand its business to countries such as Kenya and
    Australia in the year 2011.
    PRODUCT EXPORTED , PRODUCT DEMAND & PRODUCT COST

    TYPE OF PRODUCT EXPORTED: Alcohol and Spirits

    BRANDS EXPORTED: Kingfisher, Chantilli, Smirnoff, Royal Stag, Hayward’s and


    many others.

    COUNTRIES EXPORTED : Nigeria, Uganda and some parts of Canada , Europe


    and African Countries also.

    PRODUCT DEMAND

    Alcohol and Spirits have a very high demand in countries of African Continent
    as well as Europe says Kanishka Kamble, Director of Mukund Private Limited.
    He says that they export over 1,00,000 containers of Kingfisher beer to
    Uganda.
    The clients of the product in Uganda KIAMUSU, and in Nigeria Liquor Enrgy
    Supplier, Romania AMARETT ITALIANO are selling the product at a profit
    margin of 10-15%, still the product is sold at a full swing.

    According to the survey report of Nigeria’s News Digest, Kingfisher and


    Smirnoff are planning to setup their own shops in Nigeria since there is quite a
    good market there. The product demand in Canada and Europe cannot be
    determined because the company exports accordingly to the order placed by
    their clients which is worth around $ 100,000.

    PRODUCT COST

    The product cost in Indian markets are as follows:

    Brand Name Price /Litre


    Kingfisher 68*
    Haywards 74*
    Chantilli Wines 1500*
    Smirnoff 450*

    *Price indicated at the price mark.


    PRODUCT DEMAND IN THE YEAR 2007-2008
    7

    4
    Kingfisher
    Fosters
    3 Local Brand

    0
    Nigeria Uganda Others
    MARKET SHARE OF THE COMPANY IN THE COUNTRIES EXPORTED AND
    COMPETITORS.

    Since there is a huge demand for such products in other countries many export
    firms have a eye on these countries to earn high profits as well as the import
    country try to strike a deal with a firm which gives them the best rate for the
    product. Thus, there are many competitors to M/S Marve Wines.
    Namely,
    1.) Rama Exports, Bengaluru
    2.) Gupta Wines, Mumbai
    3.) Akash Traders
    4.) Ocean Distributors and many more.
    Since there are many companies exporting to this country not only from India
    but from other countries as well with their brand, the market share of the
    company in the countries exported is mere 2%.

    As mentioned above, there are many competitors of the company but the
    main competitors of M/S Marve Wines are Rama Exports based in Bengaluru,
    Gupta Wines, Mumbai , Akash Traders and Ocean Distributors.
    Ocean Distributors have the highest market control in exporting of products in
    African Countries. Thus, there is a perfect competition in the export business.
    Thus, the price determinant or the price maker is the importer.
    FUTURE PROSPECTS OF THE COMPANY

    Marve Wines as a company has a huge goodwill in the export business of


    alcohol.
    Marve Wines now plans to open a new branch at the happening zone of south
    Mumbai and expand its business to countries such as Kenya and Malaysia in
    the year 2011 and increase its production value by exporting more brands to
    different countries.

    Marve Wines, Owner, Kanishka Kamble says there is a huge market in third
    countries but it is not explored by many exporters. He says there is huge
    market for Indian liquor in countries like Bahamas and Jamaica but due to
    government reforms and restrictions cant export the products. Thus, along
    with its union they are sending petitions for liberalisation for trade in such
    countries thereby increasing export earnings.
    INCENTIVES

    INCENTIVES RECIEVED TO THE COMPANY BY GOVT. OF INDIA UNDER EXIM


    POLICY

    1.) Company receives a subsidy of an average of 15% on products exported


    to the country as well as receives subsidy on same product of
    international brand.

    2.) Company receives exemption on excise duty for import of plant and
    machinery for its business.

    3.) Company also receives a bank loan at very low rate of interest.

    4.) Company also is exempted from paying sales tax or VAT.


    GENERAL INCENTIVES ARE AS FOLLOWS
    PROCEDURE TO GET INCENTIVES
    DOCUMENTS REQUIRED TO APPLY FOR INCENTIVES
    PROBLEMS FACED BY THE EXPORTER
    SUGGESTIONS FOR THE PROBLEMS FACED BY THE EXPORTERS
    TESTIMONIALS BY THE DIRECTOR OF MUKUND PRIVATE LIMITED

    “Mukund Industries started when my Grandfather, Mr.Mukund Kamble


    dreamt of having a huge industry having all people of different walks of life to
    work for us. Thus, Mukund Industries was established by my father
    Mr.T.M.Kamble in the year 1992, with an investment of Rs. 10,00,000 and
    within 17 years our company is worth around 20 Crores. We are doing business
    in diverse fields from construction to media to printing to import and exports.
    Marve Wines was established in the year 1997 in Malad where there were
    hardly any people living there but a visionary my father, invested a huge
    money in Marve Wines making a huge profits for our company. Marve Wines
    not only exports its product we also sell it to retailers all over Mumbai. Our
    clientele include Mainland China, Sheesha, etc.
    T o conclude with, I say Import-Export business surely is a profit engaging
    business but it also comes with huge risks involved.”

    --Kanishka Kamble
    CONCLUSION

    Incentives in Export helps the exporters to earn high profits as well it


    encourages exporters to engage in more exports thus increasing countries
    exports earnings.

    Thus, if there is more exports from a country , in the international market


    there becomes a goodwill as well as it terms a country self-sufficient by making
    the export –import ratio higher in export side.

    Incentives in export only increases exporters to involve in export products


    outside the home country and making a home product successful in the
    international markets.

    Companies like Philips, Videocon have made a mark in international market


    because of liberalisation and globalisation in its terms and conditions of
    exports .

    Incentives such as Duty Drawback, Exemption from excise duty and sales tax,
    Financial Assistance also helps export companies to expand themselves and
    export goods in more safe and innovative way.

    Incentives has also given artists a homage as well as appreciation of its work
    world wide due to liberalisation and exemption of taxes and low rate of
    shipment.

    Still, there are problems faced by the exporters such as which has to be work
    upon.
    Here we cconclude by saying have a safe business because,
    As Mr. Kamble said export import business is a huge business but involves very
    high risk from rejection of goods exported to fraudulent companies.

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