Professional Documents
Culture Documents
Yhhh
Yhhh
On
‘Dairy Industry of USA’
w.r.t
Business Opportunities for Gujarat and Rajasthan
Submitted to
Institute Code: 705
Institute Name: C.K.Shah Vijapurwala Institute of Management
Prepared by:
Shikha shah (157050592101)
Shreyansh Raval (157050592103)
Harsh Sidana (157050592104)
Vishnu singh Thakur (157050592105)
Santosh Thapa (157050592106)
MBA Semester - IV
Month & Year: April, 2017
STUDENT’S DECLARATION
We, following students, hereby declare that the Global Country Study Report titled “Business
Opportunities for Dairy Industry” in USA And Rajasthan is a result of our own work and our
indebtedness to other work publications, references, if any, have been duly acknowledged. If we are
found guilty of copying any other report or published information and showing as our original work,
or extending plagiarism limit, we understand that 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.
Place: Date:
PREFACE
With great pleasures, we undertake the writing of this Global Country Study Report because it is a
really to be proud that we are one of the very few students who are presently undertaking education
in the field of business administration which is being offered at post-graduation level in only colleges
of Gujarat Technological University. And in this report all detail and figure is related to Dairy Industry
of USA and India is given.
This type of reports helps to understand various kinds of business activities running in the foreign
countries. The report indicates that how foreigners deals with their business operations and how
they sustain and grow by applying their different features.
The report contains the information regarding Dairy Industry of USA and India with relevant analysis
models. The data collected by secondary data sources which are described in Bibliography.
The present report pens down the business or trade opportunities between INDIA and USA with
respect to the ‘DAIRY Industry’. The report is initiated by an overview to the business or company
under study, competitive environment in the industry and a brief about selected product/service
including import export data analysis.
The second part throws light on the Import-Export Policies & Procedures for the selected
product/service.
The third part deals with Market analysis, Marketing plan, Financial Feasibility and Commercial
viability of the Project (Expansion of the existing Business for the purpose of International trade).
Finally, the report is concluded with the Findings in terms of comparative analysis of INDIA (Gujarat)
and USA.
ACKNOWLEDGEMENT
Behind every success there are thousand hands. We wish to pay our gratitude to each one of them.
At the outset, we wish to express our gratitude towards our lovable faculty & thankful to all whom
contributed the completion of this report.
We express our sense of gratitude to Dr. Rajesh Khajuria, Director, C.K.S.V.I.M; and Dr. Kerav Pandya
(Associate Professor, C.K.S.V.I.M (Faculty guide) for his timely and valuable guidance & suggestions
and being always available to solve the queries.
We would also like to thanks all the faculty members, who directly or indirectly help us to successfully
complete our project.
We would also like to extend our thanks to all our friends who spared their valuable time and helped
us for providing the needed information regarding the project.
TABLE OF CONTENTS
Students’ Declaration 2
Company Certificate 4
Plagiarism Report 5
Preface 6
Acknowledgement 7
Table of Contents 8
1.
Description of Business (Company) & Industry
23
1.1. Overview of Ellora Milk center
1.2. Competitive Environment (w.r.t. Gujarat and USA) 26
1.3. Overview of milk products(shrikhand,basundi) 29
REFERENCES / BIBLIOGRAPHY 82
EXECUTIVE SUMMARY - (Part I)
The objective or purpose behind this present GCSR report is to explore and showcase various
business / trade opportunities between India (Gujarat) and USA with reference to their respective
Dairy Industries.
India is currently the largest producer of milk in the world, overwhelmingly from the output of
millions of smallholder farms. The cooperative movement (Operation Flood) has been important in
dairy development in different parts of the country, especially in the western region (Gujarat), and
undoubtedly has played an important role in keeping smallholders involved with this fast growing
sector. The Indian dairy sector has become progressively more liberalized since 1991, culminating in
the repeal in 2002 of the licensing requirement under the Milk and Milk Products Order, which
restricted the ability of private milk processing plants to procure milk in areas being served by the
parastatal cooperative sector. One fear is that private dairies will begin to procure primarily from
larger scale suppliers, even as they provide tough competition to cooperative milk processors, and
eventually lead to the eclipse of smallholder dairy production that has been so important to so many
in India. While it is too early to assess changes in procurement patterns for milk as a result of the
recent policy changes, it is important under liberalization framework to know whether larger scale
producers have a cost advantage that will lead to the displacement of smallholders under a liberalized
market.
USA and India both are different countries on the basis of some major factors like geographical
Locations, Social culture, Public involvement, Government Norms and Regulations, Transportation,
Technologies, Gross Domestic Production, Infrastructure, Trade and Commerce etc. It is essential to
study their Dairy industries and milk products in terms of numerous factors.
We have prepared our study report on Dairy industries located in India and USA which have done
with considering all major factors stated in above paragraph. We have analyzed both of countries
with two major methods which is SWOT analysis and STEEPLED analysis and compared both of them
for a respected countries. It is a single report in which you can get detailed information about current
methodology and current environment in Both of Countries related to Dairy Industries.
STEEPLED ANALYSIS OF USA
Social Factor
A move towards vegan lifestyle will negatively affect the sales of dairy products. Vegans make it a
point to shun all animals’ products, including milk and eggs, in their lifestyle including their diet. As
this lifestyle gains more and more followers, the sales of milk and other dairy products, including ice
cream and chocolate will decrease, negatively impacting the dairy industry.
Technological Factor
Technology has made it possible for dairy manufacturers to market several different kinds of dairy
products, along with several variants of these products at a very low cost. A main factors in the
upwards trend of the dairy industry has been the pace with which technological advances have been
embedded into farming practices, often enough under the pressure of failing prices and the necessity
to vindicate land values resulting from excessive optimism in period of rising prices.
Economic Factor
The most obvious economic factors affecting the dairy industry would be purchasing power in the
economy whole. Milk in its most basic form is considered an essential product and people still make
an effort to purchase milk regardless of their cash position. As a result, the sales of milk would not
be significantly hitting case of a reduction in a family income, unless the income is reduced to a bare
minimum. On the other end of the spectrum, an increase in purchasing power will only boost the
sales of milk up to a certain level after which it would taper off, as there is a limit to the amount of
milk a family can assume.
Political Factor
The agreement on the Health Check made it compulsory for USA to stop the milk quotas in 2015. The
benefits of a World Trading Organization’s agreement the lift to the world’s market are recognized,
such deals should be equitable and must take USA’s interests into consideration, particularly in
agriculture.
In countries which import agricultural products instead of producing its own, the dairy industry would
also be affected by import laws as well as the government's foreign relations. Similarly, a company
that exports its dairy products must take care to comply with the regulations of its own country, but
also of the country to which to export to.
Legal Factor
Water Framework Directive is for all types of waters to achieve a better water condition by the end
of 2016. To support this River Basin Management Plans are implemented in early 2010. It is predicted
that the agricultural measures in the RBMPs will be derived from the Nitrates Action Programmed.
Prices of food have increased in past years due in part to monopoly in the market.
Dairy manufacturers will also have to comply with all laws related to advertising and product labeling
in their own country. For example, they will have to clearly mention any potential allergy-causing
ingredient, for example nuts or gulten, on their product labels.
Environmental Factor
The climate in which a dairy manufacturer choose to operate is another concern. In a warm climate,
a dairy manufacturer will have to look into methods of preservation in order to be able to extend
their product's shelf lives without the items going bad. Similarly, in the case of refrigerated or frozen
foods they will also have to look ways of extending durability in regions where power outage are
common.
The climate also influence the product lines the manufacturer will branch into. In warmer countries,
for example, ice cream and frozen desserts may be more successful, while in a colder country cheese
or tea whiteners would be more successful than ice creams.
Source: http://freepestelanalysis.com/pestelpest-of-dairy-industry/
Sociological Factor
Technological Factor
Cold chain technologies
Automatic machines in milk production
natural milk production
bulk feeding of cattle
Animal food hygiene
Integrated production technology
Nuetraceutical product technologies
Better cooling system
Proper transferring facilities
Increase in productivity and artificial production
Upgraded packaging
Economical Factor
Foreign Direct Investment
Private/Public investment
Rural market Development
Easy availability of credit facilities
Good urban and rural market
Cheap labour
Competition for procurement of quality raw milk
Environmental Factor
Organic milk products
Further use of dairy waste
Transfer of dairy waste to useful products
Political Factor
High political interference
Influence of ruling parties
New policy and plans
New laws
Food recall system
Market shares of dairy Industry
Quality of animals(Live The quality of animals is critical in determining its milk productivity
population) and hence overall production. Currently, low productivity per
animal hinders development of the dairy sector. Despite being the
world’s largest milk producer, India’s productivity per animal is
very low, at 987 kg per lactation, compared with the global average
of 2,038 kg per lactation.
Training activities In this year 2016, around 14,043 participants were trained to
strengthen the human resources for sustainable dairy
development. The number of women milk producers who
participated in trainings increased to 3,344 in 2015-16 as
compared to 2,556 in the previous year.
Market size and growth Market growth is due to high per capita consumption, increasing
population and health consciousness
Consumption patterns Consumption of processed and packaged dairy products is
increasing in urban areas
Consumption patterns Unpackaged milk is still preferred because of taste and price
Production capacity Strengthen economic viability of dairy farms by interventions on
the input side as well as ensuring fairer farmer prices. Increase the
link between rural production areas and urban markets
Quality of medicines of Ensure availability of quality medicines by strengthening
milk animals regulatory framework for quality.
Ellora milk center is small dairy and located in Vadodara, Gujarat where they manufacturing milk
products. Ellora mill center established in 1978 and its manufacturing milk products. They collect milk
from majorly luna, padra and nearby villages in Vadodara depends on fat of milk. They provide only
cow milk.
Ellora milk center daily usage is average 2000 liter milk and weekly cost is Rs.40, 000 in Vadodara and
is less competitive. They do not require marketing and sales promotion activities.as they have
monopoly market and small size of human resource.
There main cost in daily operation is around 15000 per day. They do not have other expenses like,
inbound and outbound logistics and marketing and sales activity.
They provide different types of milk products are curd, cream, paneer, white Butter, and ghee. They
provide sweets of milk product like Badam Pista Basundi, kesar pista basundi and angoor basundi.
Ellora milk center have specialist in products like different types of shrikhand.
Our vision: to provide customized solutions with quality and cost effective product range
Contact details
+(91)-265-2396025
Cream Rs.310
Paneer Rs.320
Ghee Rs.440
Elachi Rs.180
Kesari Rs.180
Pineapple Rs.210
Rajbhog Rs.250
Strength Weakness
Oppourtinity Threat
Indian American
Total population % of Total
Metropolitan Statistical Area population (2010
(2010 census) population
census)
Washington–Arlington–
127,963 5,582,170 2.3%
Alexandria, DC–VA–MD–WV
San Francisco–Oakland–Hayward,
119,854 4,335,391 2.8%
CA
Houston–The Woodlands–Sugar
91,637 5,946,800 1.5%
Land, TX
Philadelphia-Camden-Wilmington,
90,286 5,965,343 1.5%
PA-NJ-DE-MD
Source : https://en.wikipedia.org/wiki/Indian_Americans
Secondly the company will target the Indians customers as they will get emotionally attached
to the product and the company. The Indians will be consuming the products more compare
to that of Americans who don’t have any knowledge and awareness about the products.
So till we target the Indian customers we can side by side spread awareness about the
products among the American customers.
1.3 Positioning
Once the company has identified the segments and chosen which segment or segments to target the
final step is to decide on, what position it wants to occupy in those segments. Positioning is concerned
with how the customers perceive the products and how it is defined by the customers in order to
maximize the potential benefit to the company.
Customers are not capable of remembering information about each product and thus the consumers
organize the products, services and companies in their minds in order to simplify the buying process.
It is necessary for the companies to plan positions to gain advantage to their products in selected
target markets.
The company will position it’s products as Indian sweets and the products that will not be easily
available in the American market. The company will try to get advantage of the low availability of
Indian sweets over American market.
Source : http://pure.au.dk/portal/files/11462/BA.pdf
Chapter 1: Description of Ellora Milk Center
Company Information
Ellora milk center is small dairy and located in Vadodara, Gujarat where they manufacturing milk
products. Ellora mill center established in 1978 and its manufacturing milk products. They collect milk
from majorly luna, padra and nearby villages in Vadodara depends on fat of milk. They provide only
cow milk.
Ellora milk center daily usage is average 2000 liter milk and weekly cost is Rs.40, 000 in Vadodara and
is less competitive. They do not require marketing and sales promotion activities.as they have
monopoly market and small size of human resource.
There main cost in daily operation is around 15000 per day. They do not have other expenses like,
inbound and outbound logistics and marketing and sales activity.
They provide different types of milk products are curd, cream, paneer, white Butter, and ghee. They
provide sweets of milk product like Badam Pista Basundi, kesar pista basundi and angoor basundi.
Ellora milk center have specialist in products like different types of shrikhand.
Contact details
+(91)-265-2396025
Cream Rs.310
Paneer Rs.320
Ghee Rs.440
Elachi Rs.180
Kesari Rs.180
Pineapple Rs.210
Rajbhog Rs.250
Strength Weakness
Overall, branches that have high assets turnover and relatively low profit margin have lower barriers
to entry than branches with high profit margin and low assets turnover. Nevertheless, there are some
high barriers to entry in the dairy industry, among them the most important are laws on food safety,
customer loyalty to established brands of leading market players and contracting with grocery
retailers and milk suppliers. Moreover, dairy products are mostly perishable, which requires high
turnover, reliable supply chain and distribution channels. Alternatively, there are relatively weak
barriers to entry for small dairy processors looking to sell products at the local market. They must
obey laws on food safety and have to build up consumer confidence in the region.
The dairy processors are dependent on one major raw material – milk. There are no basic substitute
inputs for the dairy processors. It means that the dairy industry must face bargaining position of dairy
farms. Although there is no significant vertical integration between dairy farms and processors in the
people, the supply chain is based on the long-term contracts. Some small dairy farms also process
own milk and produce milk products with higher value added, or even organic products, for
distribution at local farmers’ market, via Internet or via automatic milk vending machines. Large dairy
processors often use hedging against price fluctuation as well as against exchange rate changes,
when they export milk. The number of suppliers in the people can be set by the number of registered
milk quota holders. There can be both direct sales quotas, for producers who sell dairy products
direct to consumers, or wholesale quota, for producers who sell milk to approved milk purchasers.
The number of wholesale quota holders has been decreasing. It goes hand in hand with gradual
decline of the number of dairy cows.
Buyer power depends on the structure of market channels as well as on the character of the product.
In the people, as mentioned above, the main distribution channels for dairy products are
hypermarkets and supermarkets with more than 50 % of the total market value. The competitive
environment of the hypermarkets and supermarkets is highly concentrated. The biggest grocery
retailers are multinational companies with strong bargaining power. There is not vertical integration
between leading grocery retailers and dairy processors. Thus, the consumer price setting is highly
independent on suppliers (dairy processors) and considers the purchasing power and preferences of
final consumers of food products. Moreover, all main hypermarkets and supermarkets started to
increasingly promote their cheaper private labels brands. It also affects the brand competition
environment within the dairy industry. The increasing market share of private labels brands indicates
that the price sensitivity of milk products becomes higher.
Product Differentiation and Switching Costs - According to Porter (1998), the product differentiation
and the switching costs are of great importance to the intensity of the competition. The more similar
are the products offered by rivals, the more willing are the customers to switch among these products
and the greater the firms tend to cut prices to promote sales. In the industry where the products
offered by rivals are indistinguishable, the price competition is the sole form of competition. In
contrast, in the industry where products offered by rivals are highly differentiated, the price
competition is weak, even though there are a large number of firms competing.
New products like soyabean milk which have more nutrition have been launched in the market,
announcement by US government that raw material of milk has urine contents which led to switch
consumers not to buy milk but other products.
Product/services
Product Shrikhand/Matho
Name
Description Shrikhand is a semi soft, sweetish sour, whole milk product prepared from lactic
fermented curd. The curd (dahi) is partially strained through a cloth to remove the
whey and thus produce a solid mass called chakka (the basic ingredient for
Shrikhand). This chakka is mixed with the required amount of sugar, etc., to yield
Shrikhand.
PFA Definition
A.11.02.22.01-SHRIKHAND-means the product obtained from Chakka or Skimmed
Milk Chakka to which milk fat is added. It may contain fruit, nuts, sugar,
cardamom, saffron and other spices. It shall not contain any added colouring and
artificial flavouring substances. It shall conform to the following specifications,
namely:-
In case of Fruits Shrikhand it shall contain Milk fat (on dry basis) per cent by
weight----Not less than 7.0 and Milk Protein (on dry basis) per cent by weight----
Not less than 9.0.
Flavours ElachiKesari ,Fresh Fruit ,Mango Fruit ,Black Current,Pineapple ,Kesar Pista ,Green
Pista, Butter Schoth ,Fry Fruit,American Dry Fruit, Rajbhog
Product Basundi
Name
Description Badam Pista Basundi, Kesar Pista Basundi And Angoor Basundi
Elephant foot yam vegetable purchased from local market were washed with clean water. The skin
was removed. Vegetable was cut in pieces/ slices with the help of knife and finally converted into
homogenous pulp by using Deluzx pulp machine.
Preparation of basundi
The standardized cow milk bottle gourd basundi was prepared by the flow diagram given. For
the preparation of bottle gourd basundi, Cow milk was procured from local milk producers and
standardized according to Pearson‟s square method described by De (1980) to 4% fat and 9% SNF
using Cow skim milk. The standardized milk was taken in stainless steel “karahi” and heated over a
direct fire. For heating, medium LPG was used. The milk was stirred vigorously and constantly with
a circular motion (clockwise) by a “khunti” so as to avoid scorching the milk. As soon as the milk
started boiling, constant evaporation of moisture took place. The speed of churning cum scrapping
was maintained constantly to evaporate the maximum moisture as soon as possible. When the
concentration of milk reached 2:1, add the three levels bottle gourd pulp (5, 10 and 15% w/w of
concentrated milk) and sugar were added. After the addition of sugar the milk was continuously
heated, stirred vigorously till the three levels of concentration were obtained. After the final
concentration the product was transferred to aluminum tray and allowed to cool at room
temperature to attain desired body and texture.
Fig 1: Preparation of bottle gourd basundi
Receiving milk
Filtration
Heating of milk
Boiling of milk
Concentration
T1- 0 parts of bottle gourd pulp + 100 parts of cow milk weight
The different levels were tried and compare with control (T1)
Chemical analyis
Fat content basundi as per Indian standards (Sp:18, part XI,1981), Protein by AOAC (2005),
Sucrose volumetrically by Lane Eynon Indian standards (Sp:18, Part XI, 1981), Ash Indian
standards(Sp:18, Part XI, 1981), and moisture Indian standards (Sp:18, Part XI, 1981).
Sensory evaluation
Sensory analysis carried out by panel of Judges in respect of color and appearance, Flavour body
& texture. Sweetness and overall acceptability by 9 hedonic scale developed by Quarter
master Food and Container Institute USA (Gupta 1976)
Statistical method
The data were analyzed statistically by using the completely randomized block design as per
method described by Panse and Sukhatme (1967). The significance was evaluated on the basis of
critical difference
Shrikhand is a popular, classic, thick and delectable Indian yoghurt sweet commonly known all
over India especially in the states of Gujarat and Maharashtra. It is one of the prime sweet delicacies
from the Gujarati and Maharashtrian cuisines made with hung & strained yoghurt flavoured with
saffron and cardamom. Shrikhand is one such excellent and luscious Indian sweet served during
festivals, feast or get together.
It is a popular Janmastami recipe and also part of the Gujarati thali. Since India is a vast country with
diversified cultures and cuisines having umpteen numbers of popular Indiansweets and
desserts, Shrikhand outshines and truly showcase its popularity particularly among the people
of Gujarat. Preparation of Shrikhand is very simple but takes some time to process the yoghurt
perfectly.
Strained yoghurt also known as yoghurt cheese, labneh or Greek yoghurt is the main ingredient in
preparing the Shrikhand. It is thick yoghurt which has been strained in a cloth or paper bag or filter
to remove the whey giving a consistency between that of yoghurt and cheese, while
preserving yoghurt’s distinctive sour taste. Strained yoghurt is often made from milk which has been
enriched by boiling off some of the water content or by adding extra butter fat and powdered milk.
Yoghurt strained through muslin is a traditional food in Eastern Mediterranean, Middle East, and
South Asia, where it is often used in cooking, as it is high enough in fat not to curdle at higher
temperatures. It is used in cooked and raw, savory and sweet dishes. Due to the straining process to
remove excess whey, even non-fat varieties are rich and creamy.
Shrikhand is a classic Indian dessert incorporating strained yoghurt, sugar, saffron, cardamom, dicbed fruit and
nuts together to give a thick smooth creamy texture. It is a very popular diary product in the state of Gujarat
similar to ice cream. In Pashtun, dominated regions of Pakistan, strained yoghurt is known as chaka and often
consumed with rice and meat dishes.
In India, Shrikhand is generally served with puri or poori. Dahi or curd is one of the most important
dishes in the South Indian meal. There are a variety of dishes that be made with curds like raita, curd
rice etc. Curd is also used as marination to many non-vegetarian recipes. In south Asia, regular
unstrained yoghurt (dahi), made from cow or water buffalo milk, is often sold in disposable clay pots.
Kept for a couple of hours in its clay pot, some of the water evaporates through the clay's pores.
But true strained yoghurt (chakka) is made by draining dahi in a cloth. Yogurt is a very versatile
creation and can be used alone or as an adjunct to any dish. Yogurt is acidic in nature, has a sour and
tart taste and stays fresh longer than milk. It can be eaten plain or mixed with vegetables, fruits or
other flavors. Fruits like strawberry, mango and the like are also mixed to make yummy yogurts.
The beauty of Shrikhand is that it can be very creative in terms of flavours. It is an excellent, mouth-
watering party dessert. For preparing this delicious and yummy Shrikhand, set milk to make yoghurt
but do not rest it out for a long time as the yoghurt should be sweet and sour to make this sweet.
Take a muslin cloth and pour in the yoghurt and hang the yogurt for 2 to 3 hours to completely drain
all the whey from it. When the whey is completely drained off, take the thick yogurt into a bowl. If
you get about 500 gms of yogurt and add in 500 gms of sugar and mix well. Let this sit for about 2 to
3 hours in the refrigerator. Add some saffron colour and mix well. Stain this mixture through a
strainer, this helps in removing off the milk solids if any. Add cardamom powder and mix well.
Hung or strained yoghurt is great for those wanting to reduce weight as it is devoid of fat and
cholesterol. It contains very less amount of sodium but good amounts of carbohydrates for a quick
shot of energy. It contains good amount of protein and is lower in sugar than most other types of
yogurts. It is a rich source of calcium, phosphorus, Vitamins B1, B2 and B12.
Basundi is traditional heat desiccated milk product delicacy having sweetish caramel and pleasant
aroma, light to medium brown colour, thick body and creamy consistency with or without soft
textured flakes that are uniformly suspended throughout the product. It contains all the solids of
milk in an appropriate concentration plus additional sugar and dry fruits. It is consumed directly as a
delicious sweet dish. It is most popular in Maharashtra, Gujarat and parts of Karnataka and is mainly
prepared at home by the housewives on some special occasions like festivals, weddings etc. And
relished due to its rich, caramel, pleasant and nutty flavor and thick consistency (Pagote, 2003).
Now-a-days, the popularity and demand of Basundi is increasing due to its delicacy. Hence its
production and marketing is increasing in a few big cities of the country. With rapid expansion of
urban and semi-urban areas, the demand for traditional dairy products is increasing at a fast pace. In
spite of the fact that the dairy industry has made rapid strides in the last 3-4 decades, the methods
of manufacture of the traditional products have remained essentially unchanged. The small-scale
producers find it difficult to cope up with the increasing demand. Therefore, in recent times,
attention is being focused either to scale-up the operation or to modify the technology so as to make
it amenable to mechanization and continuous operation.
The unique adaptability of condensed milk based based sweet all over India. The unique adaptability
of khoa in terms of its flavour, thichness to blend with a wide range of food adjust had permitted
development of an impressive array of basundi varieties. In India for all the classes of people the
vegetables like bottle gourd, red pumpkin, elephant foot yam etc are popular and regular consumed
vegetable. Bottle gourd is a rich source of vitamin and minerals. It contains higher concentration of
dietary fibre,Vit. A, C, E, K, B1, B2 B6, foliate, potassium, manganese, pantothenic acid, calcium,
magnesium and phosphorus. . Bottle gourd is used for diabetics, heart problems, blood pressure and
so many other ailments. Those who do not have any problems can also use this juice as a health tonic.
Now a days local producers are using only traditional basundi nothing use the vegetables. Therefore
present study the vegetables like bottle gourd pulp used for the preparation of basundi.
Chapter 2:
Import/export policies & procedures for milk
products(shrikhand & Basundi)
EXPORT IMPORT NORMS
(a) Exports and Imports shall be ‘Free’ except when regulated by way of ‘prohibition’,
‘restriction’ or ‘exclusive trading through State Trading Enterprises (STEs)’ as laid down in
Indian Trade Classification (Harmonised System) [ITC (HS)] of Exports and Imports.
(b) Further, there are some items which are ‘free’ for import/export, but subject to conditions
stipulated in other Acts or in law for the time being in force.
Indian Trade Classification (Harmonised System) [ITC (HS)] of Exports and Imports
(a) ITC (HS) is a compilation of codes for all merchandise / goods for export/ import. Goods are
classified based on their group or sub-group at 2/4/6/8 digits.
(b) ITC (HS) is aligned at 6 digit level with international Harmonized System goods nomenclature
maintained by World Customs Organization. However, India maintains national Harmonized
System of goods at 8 digit level.
(c) The import/export policies for all goods are indicated against each item in ITC (HS). Schedule
1 of ITC (HS) lays down the Import Policy regime while Schedule 2 of ITC (HS) details the Export
Policy regime.
(a) Domestic Laws/ Rules/ Orders/ Regulations / Technical specifications/ environmental/ safety
and health norms applicable to domestically produced goods shall apply, mutatis mutandis,
to imports, unless specifically exempted.
Following are the required details /documents to be submitted/ uploaded along with the
application for IEC:
PAN of the business entity in whose name Import/Export would be done (Applicant
individual in case of Proprietorship firms).
Address Proof of the applicant entity.
LLPIN /CIN/ Registration Certification Number (whichever is applicable).
Bank account details of the entity. Cancelled Cheque bearing entity’s pre-printed
name or Bank certificate in prescribed format ANF2A(I).
2. Details of the Proprietor/ Partners/ Directors/ Secretary or Chief Executive of the
Society/ Managing Trustee of the entity:
Identity proof
PAN
Digital photograph
Only one IEC against one Permanent Account Number (PAN)
Only one IEC is permitted against on Permanent Account Number (PAN). If any PAN card holder
has more than one IEC, the extra IECs shall be disabled.
Principles of Restrictions
DGFT may, through a Notification, impose restrictions on export and import, necessary for: -
Documents
Export Import
Documents Documents
Commercial Regulatory
Documetns Documents
Invoice: This is the first basic and the only complete document in an
export transaction. Document of contents information about
goods. Harmonized System Nomenclature (HSN), price
charged, the terms of shipment and marks and numbers on
the packages holding the produce.
The exporter needs this document for other resolves also such
as:
b)Bill of exchange: Bill of exchange is tool or waft used for the payment in
international / export trade. It is tool in writing comprehending
an unreserved order, signed by the indication, pointing a
certain person to pay a certain sum of money only to or to the
order of a person or to the deliverer of the tool. The person to
whom the bill of exchange is spoken is to pay either on demand
or at a fixed or a determinable future.
The person who marks and implements the B/E or say, the
person to whom payment is due.
c)Bill of Lading : Bill of lading is a tool which is issued by the shipment company
accepting that the goods declared therein are either being
shipped or have been shipped. This is also duty that the goods
in like order and ailment as received will be delivered to the
consignee, provided that the consignment specified therein has
been appropriately paid.
The bill of lading gives the details about the exporter, carrying
vessel, goods shipped, port of shipment, destination, consignee
and the party to be informed on advent of the goods at
destination. Bill of ladings is made the collections.
d)Bill of airway: In air deportment, the trade paper is known as the airway bill.
This document executes three functions of a furthering note for
the goods, receipt for the goods tendered, and authority to
obtain delivery of goods. Since it is inflexible, so it does not
transfer the same legitimacy as a bill of lading for sea transport
conveys.
e)Letter of Credit : 1. It is a written tool issued by the buyer’s (importer’s) bank,
permitting the seller (exporter) to draw in harmony with
certain terms and requiring in a legal form that all such bills
(drafts) will be flattered. Letter of credit offers the exporter
with more security than open accounts or bills of exchange.
ii. The issuer – the bank that issues the letter of credit.
a) GR Form :
b) PP Form :
c) VP/COD Form :
d) EP Form :
e) SOFTEX Form :
f) Shipping Bill :
2. Import documents
Customs Invoices :
It is also made out on a specified form prescribed by the
customs authority of the importing country. The details given
on the document will enable the customs authority of the
importing country to levy and charge import duty.
Certificate of Origin :
Source:http://www.yourarticlelibrary.com/export-management/list-of-documentation-needed-in-
export-business/41221/
MODES OF THE ENTRY INTO UNITED STATES MARKET
For a corporation, the minimum is the certificate/articles of incorporation, bylaws and an action of
the incorporator (naming the initial board and officers). For an LLC, the minimum is the certificate of
formation and limited liability company agreement. It’s usually a good idea to add a few things to
the basic documents, such as a form of confidentiality and invention assignment agreement (for
officers, employees and contractors), and an option plan
Make the necessary filings with the state in which you decide to form your company (usually
Delaware)
Hire a service company (CSC and CT Corp are the most common, but there are many others)
to serve as the company’s “agent for service of process” in the state in which you decide to
form it.
Depending on who is involved and whether anyone is investing, you might have some securities
filings, too. None of this is incredibly complex, but there are lots of ways to mess up, some of which
have very bad consequences. So it’s best not to do it as a DIY project. Find a lawyer and pay for a
corporate filing service to handle the filings for you (again, CT Corp. and CSC are the best known but
there are many others).
U.S. Regulations
When the company form a U.S. entity, company create a legal person in the U.S. That means that
some activities abroad may come under U.S. regulations that wouldn’t apply if no U.S. person were
involved. There are two types of raise issues – the Foreign Corrupt Practices Act and U.S. “export”
regulations.
The federal Foreign Corrupt Practices Act basically prohibits U.S. persons from bribing foreign
officials, political parties and party officials to obtain or retain business, including bribes paid through
intermediaries. It allows payments that merely “expedite” a routine official action (such as clearing
a shipment through customs that is legally entitled to be cleared). If we form an entity in the U.S.,
both the entity and its directors, officers and employees, when acting on its behalf, are subject to the
FCPA, even if all operations and personnel are located outside the U.S. We need to form a Delaware
corporation and then bribe a local official to “overlook” some building code violations in our office,
we have violated the FCPA. By contrast, if the company is in India and did the same thing, U.S. law
would not apply. The FCPA is a criminal statute, so the consequences of violating it are potentially
very serious. The federal government has enforced the FCPA very aggressively in recent years.
Export Regulations
The United States has a very complicated set of laws and regulations governing the “export” of
certain technologies from the U.S., as well as other commercial dealings between U.S. persons and
certain countries (especially Cuba, Iran and North Korea). These laws normally don’t apply to foreign
national’s resident outside the United States, except to the extent they actually conduct business in
the U.S
Tax
The two entities are most likely to use to “incorporate” a business in the U.S. are the corporation and
the LLC. The equity holders in a corporation are called shareholders or stockholders and the equity
holders in an LLC are called members. From a non-tax perspective, the LLC is generally preferable
because it is more flexible. The normal income tax treatment of corporations and LLCs is very
different. Corporations are normally considered to be a separate taxpayer. That means that the
corporation pays income tax on its income. When it pays dividends to its stockholders, they are taxed
again on receiving the dividends. By contrast, LLCs are normally not taxed separately. Rather, they
“pass through” all of their tax attributes (income, deductions, credits etc.) to their members, who
then pay tax individually. A corporation can make an election to be taxed on a pass-through
basis. This is called an “s” election and corporations that make it are referred to as “s”
corporations. Nonresident foreigners are not allowed to hold stock in an “s” corporation, however,
so it’s not an option for Indian company.
As a rule, venture backed startups (and startups that hope to be venture backed) form as taxable “c”
corporations, rather than as pass-through LLCs. There are several reasons for this:
Venture capital firms do not like “pass through” taxation because it can complicate life for
them, particularly if they have pension funds or university endowments as investors (most of
them do).
Companies whose shares are publicly traded are almost always taxable corporations (there’s
few advantages and some disadvantages to being anything else).
People forming tech startups usually plan to profit from the endeavor by selling their equity
in the business, either in a sale of the company or in a public market after an IPO. Since they
never plan for the company to pay dividends, it doesn’t bother them that they would get
taxed twice (the corporation pays tax on its income and then the shareholder pays tax on
receiving the dividend) if it did.
Now that we’ve reviewed the available entities, let’s review how the U.S. taxes nonresident foreign
nationals. First, it taxes income that is “effectively connected” with a U.S. business roughly the same
way it would tax a U.S. citizen or resident. If that income results from an interest in an LLC that
“passes through” its tax items to its members, the LLC is required to make a “withholding” payment
to the federal government to cover the member’s liability. Second, certain categories of “U.S.
source” passive income (such as dividends, royalties and interest) are subject to a flat 30% tax. This
tax is, again, enforced by a requirement that the U.S. payer withhold it at the source. On the other
hand, capital gains (e.g. from the sale of stock) are generally not taxed.
Both of these taxes are modified by a tax treaty between the U.S. and India. In particular, the rate of
the flat tax on passive income is reduced to 15 or 25% (depending on corporate structure) for
dividends, 10 or 15% (again, depending on corporate structure) for interest, and 15% for
royalties. One unusual twist in the U.S. India tax treaty is that it gives particularly favorable treatment
to income from consulting or technical services that are ancillary to the use of licensed
technology. So it might be beneficial to develop the technology in India, license it to the U.S. entity,
and then provide consulting/technical services (such as software maintenance and updates) for a
fee. But it is worth reemphasizing that the U.S. doesn’t tax capital gains earned by nonresident
foreign nationals. So if there is no plan to move to U.S. at any point during the development of the
business and your ultimate goal is a capital “exit” (i.e. a sale of the company or a sale of your stock in
an IPO or a private secondary market), the best strategy might be to use a taxable corporation.
Summary of Key Visas Available to Indian Small Business Owners, Investors and Entrepreneurs in
United States of America
Visa available to
✔ ✔ ✖ ✔
Indian nationals
Ability of dependent
✔ ✖ ✔ ✔
Spouse to work in US
✔
✖
✖
EbB-5 visa initially
Immigrant visa status Can lead to green card ✖ Transition to green
issued for a
card status through
after one year conditional two year
EB5 program possible
period.
Source:http://www.newsdigest.org/2014/03/17/how-does-an-indian-citizen-and-resident-form-a-
company-in-the-u-s/
L1 Visa
An L-1 visa is a visa trade bill used to enter the United States for the persistence of work in L-1
status. It is a non-immigrant visa, and is valid for a relatively short amount of time, from three
months (for Iran nationals) to five years (India, Japan, Germany), based on an exchange
schedule. With extra time, the maximum stay is seven years.
L-1 visas are presented to employees of an international company with offices in both the United
States and abroad. The visa consents such foreign workers to reposition to the corporation's US
office after having worked abroad for the company for at slightest one unceasing year within the
previous three prior to admission in the US. The US and non-US employers must be related in one
of four ways: parent and subsidiary; branch and headquarters; sister companies owned by a mutual
parent; or 'affiliates' owned by the same or people in approximately the same percentages.
Spouses of L-1 visa holders are allowed to work without restriction in the US (using an L-2 visa)
once EAD is granted, and the L-1 visa may legally be used as a stepping stone to a green card under
the doctrine of dual intent.
H1B Visa
The H-1B is a non-immigrant visa in the United States under the Immigration and Nationality Act,
section 101(a)(17)(H). It allows U.S. employers to temporarily employ foreign workers in specialty
occupations. If a foreign worker in H-1B status quits or is dismissed from the sponsoring employer,
the worker must either apply for and be granted a change of status to another non-immigrant
status, find another employer (subject to application for adjustment of status and/or change of
visa), or leave the U.S.
The regulations define a "specialty occupation" as requiring theoretical and practical application
of a body of highly specialized knowledge in a field of human endeavor including but not limited to
biotechnology, chemistry, architecture, engineering, mathematics, physical sciences, social
sciences, medicine and health, education, law, accounting, business specialties, theology, and the
arts, and requiring the attainment of a bachelor's degree or its equivalent as a minimum (with the
exception of fashion models, who must be "of distinguished merit and ability"). Likewise, the
foreign worker must possess at least a bachelor's degree or its equivalent and state licensure, if
required to practice in that field. H-1B work-authorization is strictly limited to employment by the
sponsoring employer.
Source:http://www.lehighvalleychamber.org/uploads/4/4/5/3/44535475/pp_immigration_policy
_and_priorities_100114.pdf
E-VISAS
Treaty Trader (E-1), Treaty Investor (E-2), Australian Specialty Occupation Worker (E-3)
The E category includes treaty traders and investors who come to the U.S. under a treaty of
commerce and navigation between the U.S. and the country of which the treaty trader or investor
is a citizen or national. This category also includes Australian specialty occupation workers.
Treaty traders pursue substantial trade in goods, including but not limited to services and
technology, principally between the U.S. and the foreign country of which they are citizens or
nationals. Treaty investors direct the operations of an enterprise in which they have invested, or
are actively investing, a substantial amount of money.
Before entering the U.S., treaty traders or investors must apply for and receive an E-1 or E-2 visa
from a U.S. Consulate or Embassy overseas. However, a U.S. company may also request a change
of status to E-1 or E-2 for a nonimmigrant that is already in the U.S. USCIS processes change of
status and extensions of stay requests for nonimmigrants whose companies have filed such
petitions.
EB5 VISA
The EB-5 visa provides a method of obtaining a green card for foreign nationals who invest money
in the United States. To obtain the visa, individuals must invest $1,000,000 (or at least $500,000 in
a Targeted Employment Area - high unemployment or rural area), creating or preserving at least
10 jobs for U.S. workers excluding the investor and their immediate family. Initially, under the first
EB-5 program, the foreign investor was required to create an entirely new commercial enterprise;
however, under the Pilot Program investments can be made directly in a job-generating
commercial enterprise (new, or existing - "Troubled Business"), or into a "Regional Center" - a 3rd
party-managed investment vehicle (private or public), which assumes the responsibility of creating
the requisite jobs. Regional Centers may charge an administration fee for managing the investor's
investment.
If the foreign national investor's petition is approved, the investor and their dependents will be
granted conditional permanent residence valid for two years. Within the 90-day period before the
conditional permanent residence expires, the investor must submit evidence documenting that
the full required investment has been made and that 10 jobs have been maintained, or 10 jobs
have been created or will be created within a reasonable time period.
To consider Govt. on export growth, compulsory data and of exporters problems in general
trade and advise Govt.. to confiscate such difficulties and tenacity trade disputes.
To manner market surveys, researches and publish the results complete its bulletins and
publications in different marketplaces
To make available reliability reports on suppliers' status, technical aptitude and help in
linkups
To arrange buyers-sellers meet, supply of homegrown and imported raw materials and help
in shipping and transport hitches.
To inaugurate contacts with overseas buyers, project associates, locate, right suppliers and
buyers and socialize the trade reviews among associates.
To mark out plans for presentation or advertising of member's products in overseas
markets
To try to find foreign offices of EPC's help to exporters in fusing the existing exports and
differentiating into new products by opening new offices and explore export makings and
mediate with industry, trade, Govt. and trade bodies.
Govt. of India has also created various other services and support institutes to facilitate the task of
promoting exports through export finance, market research, export credit insurance, resource
personnel for exports, publicity, packaging, quality control, transport, etc.
2.Commodity These are organisations set up for the development of certain commodities
Boards for export and deal with all problems of production, development and
marketing of the commodities concerned.
India needed trained and skilled personnel for the development of export
trade and IIFT was set up in 1963 as an autonomous body registered under
Societies Regulation Act.
Main functions of IIFT
It is a nodal agency of Indian Govt.. to make available a wide range of services to export trade and
industry and act as compound for growth of India's export trade.
Activities of ITPO
Categorizes and encourages precise export products with long series growth scenarios
Categorizes numerous trade fairs and exhibitions in India and impending foreign countries
Supports overseas buyers and begins durable contacts among, Indian suppliers and
overseas buyers
Arranges India promotions with Separation stores and order Houses overseas
Deportments in house and need based research on export trade and promotion
Accomplishes the widespread trade five complete pragati maidan Delhi and establishes
such fair facilities in many states to stimulate exports from India
Overseas offices of ITPO trails investment opportunities also activities intended at
promoting India's exports.
Conscripts the involvement and support of the state governments in India for promotion of
foreign trade.
With the objective of exporting Indian goods of good eminence with international ethics and for
providing any solid in overseas buyers the government of India passed export eminence regulator
and inspection Act 1963
Consults trade and industry, conducts detailed discussions, studies of buyers exacting
needs and formulate standards for pre-shipment inspection.
Comes out with various schemes of quality control, pre-shipment inspection and self-
certificate schemes
Recommends to Govt... Of India the commodities for quality control ,and inspection type
and organizes to conduct the same.
Govt. of India in cooperation with the industry has set up IIP in 1966 with Mumbai as its
headquarters to contest the packaging criteria of export goods with that of international standards
and complexity
Govt. of India has established up in 1965 ICA as Apex negotiation body to solve issues between
exporters and importers.
To agreement with all troubles relating to commercial transport like direction finding and
management of merchant shipping etc.
The Apex body titled All India transporters council was established up in Delhi with five regional
transporters body like Easter, Western, Southern, Northern and South Western Shippers council
to provide periods conference with all parties troubled on troubles of mutual attention such as
freight structure, conference practices, conference lines like accessibility of shipping space, port
facilities port charges etc. for export import shipments.
Functions
Separately from the above your head there are counselling organizations such as central advisory
committee on trade and regional export import recommended committees have been created to
converse various difficulties relating to export and import and advocate ways and means for
sponsoring exports trade. On the considerations of such organizations the Govt.. of India, frames
and articulates its export and import promotion strategies and successful carrying out of export
structures.
This was set up in 1978 by integration Board of trade and recommended convention on trade
regulated by Union Minister of Commerce. This comprises of 28 adherents from Reserve Bank of
India, Exim Bank, Federation of Indian Exports Organization Member of legislatures and
entrepreneurs and clasp office for two years.
Functions
To advise Govt. an export import procedures and programmers and operations of the same.
These are set up as monitors in four zones namely Northern, Southern, Eastern and Western Zonal
Export Import advice-giving working group Functions of the Zonal export import advisory
committees are
Source: http://www.iiem.com/em/export_marketing/chapter9.html
PACKAGING AND LABELLING REGULATION IN INDIA
Unit of Measurement All imported goods as well as transport documents must show
standard units of measurement and weight.
Mark of Origin "Made Not mandatory, except in the case of foodstuffs and drinks and
In" also where preferential import duties are claimed.
Labeling Requirements The packaging and Labeling requirements for packaged food
products is laid down in the Part VII of the Prevention of Food
Adulteration (PFA) Rules, 1955, and the Standards of Weights
and Measures (Packaged Commodities) Rules of 1977.
Specific Regulations
Obligation to Use Standards Although the standards proposed by the BIS are
'voluntary' in nature and are not at all mandatory,
the Government of India has enforced mandatory
certification on various products.
Classification of Standards The symbol of the standard is ISI. Every ISI mark has
a fixed format that carries the Indian Standard
number on top of the mark based on the type of
product.
1. Supply of inputs for dairying in form of fodder, animal feed plant, vetenery aids for the animal
(cattle and buffalos).
2. Milk is taken out from the mulching animal on the daily basis by the dairy farmers (large,
medium and small scale farmers).
4. Milk collected by the cooperative societies are sent to the dairy plants where chilling of milk,
processing and packaging of milk and milk product, transportation of milk and milk product is
carried out.
5. The transportation of chilled milk and milk products from one place to another is done
through the means of refrigerated vans, or insulated milk tankers vans of private, government
and cooperatives societies.
6. Final processed milk and milk products are transported to various retails outlets,
supermarkets, and to retails markets from where the processed milk and milk products finally
reaches to their end customers.
Chapter 3: Business Plan Strategies
Business Plan Strategies
Indian American
Total population % of Total
Metropolitan Statistical Area population (2010
(2010 census) population
census)
Washington–Arlington–
127,963 5,582,170 2.3%
Alexandria, DC–VA–MD–WV
San Francisco–Oakland–Hayward,
119,854 4,335,391 2.8%
CA
Houston–The Woodlands–Sugar
91,637 5,946,800 1.5%
Land, TX
Philadelphia-Camden-Wilmington,
90,286 5,965,343 1.5%
PA-NJ-DE-MD
Source : https://en.wikipedia.org/wiki/Indian_Americans
Secondly the company will target the Indians customers as they will get emotionally attached
to the product and the company. The Indians will be consuming the products more compare
to that of Americans who don’t have any knowledge and awareness about the products.
So till we target the Indian customers we can side by side spread awareness about the
products among the American customers.
1.3 Positioning
Once the company has identified the segments and chosen which segment or segments to
target the final step is to decide on, what position it wants to occupy in those segments.
Positioning is concerned with how the customers perceive the products and how it is defined
by the customers in order to maximize the potential benefit to the company.
Customers are not capable of remembering information about each product and thus the
consumers organize the products, services and companies in their minds in order to simplify
the buying process. It is necessary for the companies to plan positions to gain advantage to
their products in selected target markets.
The company will position its products as Indian sweets and the products that will not be
easily available in the American market. The company will try to get advantage of the low
availability of Indian sweets over American market.
Source : http://pure.au.dk/portal/files/11462/BA.pdf
2. 4 P’s
4P’s is a theory which show the details the company’s plan about their products and other strategies.
Here refers to Product, Price, Place, Promotions.
Price : 20 $ Price : 22 $
Price : 22 $ Price : 21 $
Angoor basundi Rasmalai
Price : 23 $ Price : 25 $
Sitafal basundi
Price : 21 $
2.2 Place
Initially the company will enter the US market from two states. First in New Jersey, New York and
second in Naperville, Elgin, Chicago.
We have choose this place because this are the places where there are highest number of Indians
compare to other states. New Jersey, New York there is a population of 18,897,109 out of which
623,000 are Indians i.e 2.8% and in Naperville, Elgin, Chicago there is a population of v9,461,105 out
of which 171,901 are Indians i.e 1.8%.
2.3 Promotions
The company will start its dealership with some dealer or agent in USA or will be directly exporting
its products to malls like Wal-Mart.
There is an advantage of directly exporting to Wal-Mart, that is the company does not have to pay
any commission to dealers or agents in between and moreover here not only the Indians but also the
American customers will get aware about the products . But there is also an disadvantage that is
there will not be any direct promotions to the customers. The products will be places on the shelf
and the customers may or may not see them. So there will not be that much awareness about the
products in the eyes of customers.
While in exporting to the dealers or agents there will be direct promotions to the customers as the
agent or dealer will target the potential customers only.
3. Integrated Marketing Communication Process
3.1 Advertising :
The main objective of doing Advertising is to promote our brand and to make awareness of product
to Indian and Americans.
The main objective of doing the word of mouth when one person taste the food, they will like it ,
when they like it they will tell others so like this process we can promote our dairy products.
The main objective of doing public relations to make aware about our dairy Products through
different sources as follow:
The company will have a software which will save all the details of the customers which visits us once.
Which products they prefer in which quantity. So when next time that customer visits us we can first
show them the related products which the y may like.
And moreover their numbers will be saved so that when we have any discount or offers on occasions
so we can sms them and attract them and they can also avail advantage of the discount / offers.
B) Break even analysis
Input
Machine Take Output
Time=7Hr
Machine take time 7 hrs per 185 kg of milk products
i.e., by just selling 41,558 kg, we’ll have no profit no loss situation.
Unlike a past balance sheet that shows a business's actual, historical financial positions, a projected
balance sheet communicates expected changes in future asset investments, outstanding liabilities
and equity financing. Businesses may consider the creation of a projected balance sheet as a way to
facilitate long term, strategic planning. A business' long-term plans often concern future asset growth
and how it may be supported by increased financing through both debt and equity. A projected
balance sheet provides the most relevant financial information needed in the business planning
process.
Here 2016 is taken as a base year and on the bases of this base year the financial analysis of 2018
is projected.
Liabilities
Assets
Fixed Assets
The Income statement (also known as the profit-and-loss or P&L statement) details all of the
company’s revenues and expenses — how much the company receives in sales and how much the
company spends to make those sales. After all the additions and subtractions, the final tally tells you
whether the company earned a profit or suffered a loss and how much. The income statement
contains the fundamental equation for every business: Sales – Expenses = Net Income A positive net
income indicates the company is profitable.
Here 2015 is taken as a base year and on the bases of this base year the financial analysis of 2017
is projected
Income
Expenditure
Income from dairy production contributes on regular 40% households in East, 32% in
North, 21% in South and 34% in West Zone of the country.
There is availability of the following visas to the Indians : L-1 Visas, H-1B Visas, E-Visas,
EB-5 Visas.
To avail L-1 Visas for investing there should be Sufficient money to operate valid foreign
business and US office or business entity.
Sufficient to fund business enterprise, generally around USD 100,000.00 for minimum
investment to avail the E-Visas.
To avail EB-5 Visas Either USD 500,000.00 or USD 1,000,000.00 for minimum investment.
The company will segments the market on the basis of two variables – Geographic and
Demographic.
The states of USA where there is higher population of Indians compare to other states.
So initially the company will choose the states like New York, Chicago, Washington DC,
Los Angeles, San Francisco, San Jose which are having Indian population.
Newak- Jersey City of New York have a total population of 18,897,109 out of which
623,000 are Indians i.e 2.8%.
Naperville and Elgin city of Chicago are having total population of 9,461,105 out of
which 171,901 are Indians i.e 1.8%.
Target the Indians customers as they will get emotionally attached to the product and
the company.
The company will position it’s products as Indian sweets and the products that will not
be easily available in the American market.
The company will try to get advantage of the low availability of Indian sweets over
American market.
Business Opportunities
The Indians get emotionally attached to Indian products and there is low availability of
Indian foods in USA so there is a good opportunity for Indian food particularly sweets. So
the company have a opportunity to have a business there. There is a good population of
Indians in USA which will also be a advantage for the company.
So according to the findings there is a business opportunity in USA for Indian sweets. So
there are chances that the company can start its business in American market.
References & Bibliography
https://www.hilmarcheese.com/wp-content/uploads/2015/11/USDEC-2014-16-
Business-Plan-shortened-compressed.pdf
https://www.google.co.in/?gfe_rd=cr&ei=CcVTWNCaLOns8AfIyoOABg#q=industries+
in+Rajasthan
https://www.google.co.in/?gfe_rd=cr&ei=CcVTWNCaLOns8AfIyoOABg#q=industries+
in+gujarat
http://www.gujarat-tourism.net/Gujarat_Geography.htm
http://npaper-wehaa.com/cheese-reporter/2015/10/s3/#?article=2630804
http://pure.au.dk/portal/files/11462/BA.pdf
https://en.wikipedia.org/wiki/Indian_Americans
http://freepestelanalysis.com/pestelpest-of-dairy-industry/
http://www.yourarticlelibrary.com/export-management/list-of-documentation-
needed-in-export-business/41221/
http://www.newsdigest.org/2014/03/17/how-does-an-indian-citizen-and-resident-
form-a-company-in-the-u-s/
http://www.lehighvalleychamber.org/uploads/4/4/5/3/44535475/pp_immigration_
policy_and_priorities_100114.pdf