Professional Documents
Culture Documents
As Per Ram Sir PDF
As Per Ram Sir PDF
PROJECT REPORT ON
SUBMITED TO
BY
VIKASH KUMAR
S NO-5/2-7,TATHAWADE,WAKAD,PUNE,41103
1
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
SUBMITTED BY
VIKASH KUMAR
IB1715261
In partial fulfillment of the requirement for the award of the Post Graduate
Diploma in Management
PGDM(MARKETING)
IN
2
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
ACKNOWLEDGEMENT
I dedicate this page to all those who have silently or actively left an
indelible mark on my project report, so that they may be given credit which
they richly deserve.
VIKASH KUMAAR
IB1715261
3
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
TABLE OF CONTENT
4
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
EXECUTIVE SUMMARY
Title of the project: - “Study on Business Opportunities for STC in West African
Markets Utilizing LOC Sanctioned by EXIM Bank of India”.
Objective of the project: -
Primary Objective: -
▪ To find out the market attractiveness for STC in West African
markets utilizing EXIM Bank Line of credit.
Secondary Objective: -
I. To analyze insight of trade in west African market.
II. To understand EXIM Bank line of credit (LOC) procedure.
III. To analyze insight of trade in Indian market.
IV. To recommend the best possible opportunities available for STC in
West African market.
I intended to find out the business opportunities for STC in West African market utilizing
EXIM Bank Line of Credit (LOC). This will help STC to make reach in new market and
also helps Indian exporters who want to expand their business in West African market.
This project is completed by collecting the secondary and primary data. Secondary data is
collected from the various internal and external source.
Primary data is collected with the help of doing discussion with company employee and a
questionnaire was mailed to various industry and their responses was recorded.
Finding: -
▪ Most of the countries in West African region are underdeveloped so
all of them are seeking towards infrastructure development.
▪ Almost all of the countries importing commodities that STC can
supply from India.
▪ Most of the country don’t have stable banking system so EXIM
Bank’s LOC can play a vital role.
5
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Chapter – 1
INTRODUCTION
6
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
1) Import of items like edible oils, pulses and fertilizers on behalf of the Govt. of
India.
2) Business carried out on behalf of business associates on back-to-back basis.
3) Direct buying and selling in items like tea, soybean seed, Chana, etc.
Imports on behalf of the Govt. are arranged by STC through floating of global tender and
imported quantities are either handed over to the agency (such as FCI, Department of
Fertilizers) nominated by the Govt. or sold in the domestic market through tenders. In the
case of back-to-back business, the terms of trade are finalized in consultation with the
business associate and STC charges a fixed trade margin in the range of 1 to 1.5%.
Thus, today STC undertakes exports/imports of a diverse range of items to/from
countries all over the world. Its export basket includes wheat, rice, tea, coffee, cashew,
extractions, castor oil/seed, sugar, spices, jute goods, iron ore, chemicals, pharmaceuticals,
light engineering goods, construction materials, consumer goods, processed foods, textiles,
garments, jewellery, leather ware, etc. The Corporation also monitors counter trade
commitments against Government purchases.
7
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Major items of import by STC include gold, silver, edible oils, sugar, pulses, fertilizers,
metals, minerals, ores, hydro-carbons, petro-chemicals and raw materials for the Indian
industry. It also undertakes import of technical and scientific equipment on behalf of
Forensic Science Laboratories, State Police and Intelligence Departments and Paramilitary
Organizations, etc.
Vision
"To be a leading world class organisation, continuously diversifying and delivering
excellence in all areas of its operation thereby enhancing stakeholder's value."
Mission
"To consistently take advantages of upcoming business opportunities and trends
with proactive enterprising spirit thereby delivering substantial year on year growth and
contribute to enhancing India's share in world trade”.
8
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
pharmaceutical products (5 %) and organic chemicals (4 %). India’s main export partners
are: United States (15 %of the total exports), United Arab Emirates (11 %), Hong Kong (5
%), China (4 %), Singapore (4 %) and United Kingdom (3 %). Out of total export India
have only 8.2% export with African Continent.
9
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
10
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
As we know that in West African countries economy is growing rapidly so it can be a good
market for STC to expand business.
11
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Fig No. 1.4.2.1 LOC Share as per Continent (Source EXIM Bank’s)
12
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Fig No. 1.4.3.1 EXIM Bank’s Financial Program (Source EXIM Bank)
13
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
L& LMI
countries with L& LMI countries with
minimum binding no minimum binding
Country concessional concessional Other developing
classification requirement requirement countries
Rate of interest 1.5 % 1.75% Libor+1.5 %
Maturity 25 years 20 years 15 years
Moratorium 5 years 5 years 5 years
Grant element* 37.48 % 31.37 % 24.31%
Table No. 1.4.4.1 revised terms of credit (Ministry of External Affairs, GOI)
LOCs extended in FY 2017 were to Ghana, Guyana, Kenya, Malawi, Mauritius, Mongolia,
Nepal, Nicaragua, Niger, Senegal, Sierra Leone and Tanzania.
EXIM Bank extends LOCs on its own and also with the support of Government of India.
Basically, LOC is the fund or loan provided to developing or poor countries for their
development project. Interest rate is very low and time period for credit is around 20-25
years depending upon the type of project.
14
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
The process for approving LOCs is simple. First, the host-country requests for an LOC,
along with a pre-feasibility report and an estimated cost of the project. Then, the Indian
Mission in the partner country forwards the proposal along with its recommendations to
the Ministry of External Affairs (MEA) in New Delhi. The MEA then recommends the
proposal to the Foreign Trade Division in the Department of Economic Affairs, Ministry
of Finance for appraisal. After examining and accepting the proposal, the Ministry of
Finance conveys its approval of the LOC and terms (interest rate, credit period) to the
Export-Import (EXIM) Bank of India. The EXIM Bank then conveys the terms and sends
the draft LOC agreement to the borrower government/institution which then can accept the
terms and draft of LOC and suggest changes to EXIM Bank. After the draft of the
agreement is finalized, the LOC agreement is signed between EXIM Bank and borrower
country/institution.
15
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
1.4.4.2 Pre-requisite for host country for availing EXIM Bank’s LOC:
Goods and services for at least 85% value of the contracts covered under these
LOCs must be sourced from India.
➢ Advance payment of at least 10% of the value of the contract to be borne by the
LOC recipient/foreign buyer.
➢ LOCs may finance up to 90% value of contract on FOB/CFR/CIF/ CIP basis.
➢ Pre-shipment inspection of equipment / goods is mandatory.
1.4.4.3 Benefit of LOC:
▪ The LOCs enable the recipient countries to set up developmental projects in a
variety of sectors e.g. agricultural mechanization, rural electrification, power
generation, power distribution, sugar, cement, mini hydro-plants, transportation-
rail and road, infrastructure.
▪ The recipient countries can acquire Indian equipment and technology, which are
found to be appropriate, adaptive and affordable in developing countries of Africa,
Asia, Latin America & the Caribbean.
▪ Opens new market opportunities for Indian companies and generates goodwill for
India.
▪ Strengthen Bilateral Cooperation
▪ Help enable the private sector to leverage its strength
▪ LOC also contribute to increase India GDP.
▪ It also creates new job opportunities in Indian market.
▪ It also contributes to India mission of Make in India.
16
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Chapter 2
OBJECTIVE OF THE STUDY
17
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
18
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
CHAPTER 3
RESEARCH METHODOLOGY
19
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
3.1 INTRODUCTION: -
Research methodology is a way to systematically solve the research problem. It
may be understood as science of studying how research is done scientifically. In it we study
various steps that are generally adopted by a researcher in studying his research problem
along with logic behind them. In short research methodology act as a ladder for the whole
research.
3.2 RESEARCH DESIGN: -
Research design as a basic plan or strategy of the research study and the logic
behind it that makes it possible and valid to draw more general conclusions from it. Design
refers to the format and theoretical structure under which the study would be carried out,
that is how the worthiness and contribution of certain elements are.
3.2.1 Interview Method: -
The interview method of collecting data involves presentation of oral-verbal stimuli
and reply in terms of oral-verbal responses. This method was done through personal
interviews inside the allocated office.
20
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
b) EXTERNAL SOURCES: -
Information that is collected and compiled by another source that is external to the
organization is referred to as external sources of data. There could be two kinds of
published data-one that is from the official and government sources-this could include
census data, policy documents and govt of India trade data. The other kind of data is that
which are prepared by individuals or private agencies or organizations. This could be in
the form of books, periodicals, industry data such as directories and guides for example
data from WTO and world bank.
21
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Chapter: -4
Analysis of GOI LOCs to African Nations with focus on West
Africa
22
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
4.1 Background: -
The African continent over the years has remained a primary destination for the
government’s Lines of Credit (LOCs). The many success stories of Indian LOC funded
projects, which has been welcomed positively by Africa, indicates the point that African
countries have over the years remained the primary beneficiary of Indian development
assistance through LOCs. It is important to note that the extension of LOC by India to
African countries is different from that of other international financial organizations such
as IMF and World Bank. The funding of these global institutions is directly passed over to
the respective countries treasury, thereby opening lot of scope for theft and mishandling of
funds. Africa’s centrality in India’s foreign policy initiatives has consolidated over the
years, primarily driven by economic interests and the quest for international recognition.
Indian efforts to contribute developmentally to Africa have lately come to the forefront of
its policy engagement with these countries with a promise to become more central in the
years to come. India has a long-standing development cooperation policy. Four main
techniques embody India’s development cooperation, namely; capacity building and
training, lines of credit (LOC), grant assistance, and bilateral trade and investments. The
Government of India has been providing LOC to African countries since 1964 under Indian
Technical and Economic Cooperation (ITEC) and Special Commonwealth Assistance for
Africa Programme (SCAAP).
23
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Railway, 3.29%
Others, 16.40%
Agriculture, 20%
Transportation,
Railway
6.50%
Health Sector, Agriculture
2.30%
Electrification Project
Solar Project
Solar Project,
3.90% Health Sector
Transportation
Others
Electrification
Project, 47.59%
24
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Trade: - Total amount of export and import by Ghana in 2016 was US$ 22.0168B.
Export Commodities: -
Oil, gold, cocoa, timber, tuna, bauxite, aluminum, manganese ore, diamonds,
horticultural products. Out of total export 65% is Tin & Articles and rest 35% is Zinc.
25
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Export Partners: - Switzerland 17.54%, India 14.62%, United Arab Emirates 13.40%,
China 8.84%, Vietnam 5.16%.
Import Commodities: -
▪ Vehicles other than railway, tramway of value USD1.7B.
▪ Machinery, nuclear reactors, boilers of value USD 1.51B.
▪ Electrical, electronic equipment of value USD 1.01B.
▪ Articles of iron or steel of value USD 514.82 M.
▪ Cereals of value USD 467.02M.
Import Partners: - China 17.29%, United Kingdom 9.16%, United State of America
7.76%, Belgium 5.06%, India 4.64%.
Export Import
0
2005-06 2007-08 2014-15
26
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
UNATTRACTIVE 0
NEUTRAL OR GOOD 50
VERY ATTRACTIVE 100
27
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
From the above table we can see Ghana market attractiveness score is 63.50 which shows that
there is highly attractive market for Indian exporter as well as for STC.
28
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
4.5 Mali
Population: - 18 Million
Area: - 1,240,192 sq. km
Literacy rate: - 33.07% (Adult)
Population below poverty line: - 43.6%
Ease of doing business rank: - 143
GDP of Mali:
The Gross Domestic Product (GDP) in Mali was worth 14.03 billion US dollars in
2016. The GDP value of Mali represents 0.02 percent of the world economy. GDP in
Mali averaged 4.10 USD Billion from 1967 until 2016, reaching an all-time high of 14.38
USD Billion in 2014 and a record low of 0.28 USD Billion in 1967.
G DP
14.338
Annual GDP
14.5
14.03 Growth %
14
7
13.5 13.246 5.691 5.808
13.1 6 5.34
5.018 4.714 4.738
13 5
12.443
12.5 4
3
12
2
11.5 1
11 0
2012 2013 2014 2015 2016 2015 2016 2017 2018 2019 2020
Trade: - Total Amount of Export and Import by Mali in 2017 was US$ 3157.65
Million.
Export Commodities: -
Pearls, precious stones, metals, coins - (72%), cotton, fertilizers, edible fruits, nuts,
peel of citrus fruit, melons etc.
Export Partners: - South Africa 46.96%, Switzerland 15.04%, India 12.2%, UAE
7.61%, Cote d’Ivoire 5.98%, Burkina Faso 3.86%.
29
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Import Commodities: -
Mineral fuels, oils, distillation products, electrical, electronic equipment,
machinery, nuclear reactors, boilers, pharmaceutical products, tobacco and manufactures
tobacco substitutes, furniture, lighting signs, prefabricated buildings etc.
Import Partners: - Senegal 19.73%, China 15.62, Cote d Ivoire 9.82%, France 8.62%,
Germany 4.41%, India 3.2%.
2016 2017
30
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Purpose of LOC:
▪ Rural electrification and setting up of agro machinery and tractor assembly plant.
▪ Electricity transmission and distribution project from Cote d'Ivoire to Mali.
▪ Completion of Mali-Ivory Coast Interconnection Link for integrating the national
power grids of the two countries.
▪ Agriculture and food processing projects.
▪ Power Transmission Project Connecting Bamako and Sikasso via Bougouni.
31
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
From the above table & GE matrix we can see Mali market attractiveness score is 37.3 which
shows that there is harvest/divest market. Which indicate Mali market is not good option for
Indian exporter as well as for STC.
32
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
0 0
2013 2014 2015 2016 2016 2017 2018 2019 2020
Trade: - Total amount of export and import by Sierra Leone in 2017 was 1423.52
Million.
Export Commodities: -
Meat, fish and seafood preparations, dairy products, eggs, honey, edible products,
milling products, malt, starches, wheat gluten, fish, crustaceans, molluscs, aquatics
invertebrates, wood and articles of wood, wood charcoal etc.
33
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Export Partners: - Cote d’Ivorie 34.69%, USA 31.01%, Belgium 19.34%, China
7.14%, Netherland 3.65%, India .38%.
Import Commodities: -
Cereals, machinery, nuclear reactors, boilers, salt, Sulphur, earth, stone, plaster,
lime and cement, pharmaceutical products, iron and steel, optical, photo, technical, medical
apparatus, dairy products, eggs, honey, edible products etc.
Import Partners: - Benin43%, China 7.1%, USA 5.5%, India 4.5%, UAE 4.1%,
Senegal 3.5%, Belgium 3.1%.
Export Import
60
40 30 30
15 15
20
0
2008-09 2009-10 2013-14 2013-14 2015-16
34
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Purpose of LOC:
▪ Procurement of tractors and connected implements, harvesters, rice threshers, rice
mills, maize shellers and pesticide spray equipment.
35
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
From the above table & GE matrix we can see Sierra Leone market attractiveness score is
36.4 which shows that there is harvest/divest market. Which indicate Sierra Leone market
is not good option for Indian exporter as well as for STC.
36
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Trade: - Total amount of export & Import by Cote d'Ivoire in 2017 was US$ 18.21B.
Export Commodities: -
cocoa, coffee, timber, petroleum, cotton, bananas, pineapples, palm oil,
fish.
Export Partners: - Netherland (12%), USA (8.2%), Belgium, France (6.5%), Germany
(6.1%), India (4.2%).
37
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Import Commodities: -
Mineral fuels, mineral oils and products of their distillation, machinery, mechanical
appliances, nuclear reactors, boilers, cereals, pharmaceutical products etc.
Import Partners: - China (17.6%), France (12.8%), Nigeria (11.6%), India (4.45%),
USA (4.3%), Germany (2.5%).
Export Import
38
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Purpose of LOC: -
▪ Renewal of urban transport system in Abidjan and for agricultural projects in the
field of vegetable oil extraction, fruits and vegetable chips production, production
of cocoa, coffee.
▪ Mahatma Gandhi IT and Biotechnology Park, Fisheries Processing Plant and
Coconut fiber processing plant.
▪ Transmission line between Cote d'Ivoire and Mali
▪ Rice production program.
▪ Electricity Interconnection Project between Cote d'Ivore and Mali.
▪ Upgradation of Military Hospitals.
4.7.2 Market Attractiveness for Cote d'Ivore: -
39
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
From the above table & GE matrix we can see Cote d’Ivorie market attractiveness score is
36.25 which shows that there is harvest/divest market. Which indicate Cote d’Ivorie market
is not good option for Indian exporter as well as for STC.
40
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
4.8 Senegal
Trade: - Total amount of export & import by Senegal in 2017 was US$ 10.43 Billion.
Export commodities: -
Fish, crustaceans, molluscs, aquatics invertebrates, pearls, precious stones, metals,
coins, inorganic chemicals, precious metal compound, isotope, essential oils, perfumes,
cosmetics, toiletries, oil seed, elegiac fruits, grain, seed, fruits etc
Export Partners: - Mali 18%, Switzerland 11%, India 8.2%, Cote d’Ivorie 5.3%, China
5%, Spain 3.6%, Gambia 3.4%.
41
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Import Commodities: -
Mineral fuels, oils, distillation products, machinery, nuclear reactors, boilers,
cereals, electrical, electronic equipment, pharmaceutical products, iron and steel, paper and
paperboard, articles of pulp, paper and boar etc.
Import Partners: - France 17%, China 9.7%, Nigeria 7.9%, India 7.3, Netherland
5.6%, Germany 4.2%, Gambia 4%.
Import Export
42
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Purpose of LOC:
▪ Development of rural SME and purchase of agricultural machinery and equipment.
▪ Export of 350 buses and accessories and 85 pick-up vans
▪ Irrigation Project
▪ Supply of 70 multipurpose oil presses, 70 mini bakeries and 70 cereal and fruit
processing units for women poverty alleviation.
▪ Supply of 320 pickup vehicles and 80 station wagons for support of decentralized
administration.
▪ Rural electrification project and fishing industry development project.
▪ Supply of medical equipment’s, furniture and other accessories to four hospitals.
▪ Rice Self Sufficiency program in Senegal.
43
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
From the above table & GE matrix we can see Senegal market attractiveness score is 52.35
which shows that there is hold or average market. Which indicate Senegal market is not
good or not bad option for Indian exporter as well as for STC. In this type of market
investment is not that much risky but at the same time you can’t expect good return.
44
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
1.5 1
1.4 0
2013 2014 2015 2016 2016 2017 2018 2019 2020
Trade: - Total amount of export and import by Cabo Verde in 2016 was US$ 732.521M.
Export Commodities: -
Meat, fish and seafood preparations, fish, crustaceans, molluscs, aquatics
invertebrates, footwear, gaiters, toys, games, sports requisites, cereal, flour, starch, milk
preparations etc.
45
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Export Partners: - Spain (42%), Portugal (15%), Jamaica (12%), Senegal (3.4%),
Turkey (3%), India (.24%).
Import Commodities: -
Foodstuffs, machinery, mechanical appliances, nuclear reactors, boilers, transport
equipment, fuels, iron and steel, articles of iron or steel.
Import Partner: - Portugal (44%), Spain (13%), Italy (6.2%), China (5.5%),
Netherlands (4.7%), India (0.14%).
Export Import
46
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
47
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
From the above table & GE matrix we can see Cabe Verde market attractiveness score is
56 which shows that there is hold or average market. Which indicate Cabe Verde market
is not good or not bad option for Indian exporter as well as for STC. In this type of market
investment is not that much risky but at the same time you can’t expect good return.
48
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
OPPORTUNITIES THREATS
➢ STC’s reputation as a Government ➢ STC’s Back-up suppliers may want to go
Organization and established solo and tie up with EXIM Bank and
trading company. recipient Governments for directly
➢ Proactive government at the Centre supplying the goods.
to promote exports through EXIM
Bank LOC & “Make in India”
programme.
➢ Government of India is financing
medium & long term EXIM Bank
Line of Credit worth Billions of
Internal
49
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
50
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Chapter 5
Findings & Recommendations
51
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
5.1 Findings: -
52
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
5.2 Recommendations
5.2.1 Primary Recommendations
➢ In order to hit West African market STC Should focus more on the following
countries-
I. Ghana
II. Senegal
III. Cabe Verde
IV. Nigeria
➢ Major sector to focus for export in West African Market are agriculture
equipment’s, electrification project related equipment, solar power products,
pharmaceuticals, railway equipment’s, processed oil etc.
5.2.2 Secondary Recommendations
➢ An annual supplier meet can be organized in order to develop strong and long-
lasting bond with the suppliers. Also, customer-dealer meets can be organized once
in each region in a year to ensure 100% customer satisfaction.
➢ STC Should participate in various trade meets organized by govt of India with
various African nations.
➢ STC should focus on search engine optimization (SEO) so that it can appear on top
in search result when an organization who wants to import from India search trading
company in India.
53
Balaji Institute of International Business
Study on Business opportunities for STC in West African Markets Utilizing LOC Sanctioned by
EXIM Bank of India
Bibliography: -
➢ https://www.ciiblog.in/india-africa-trade-and-investment-
relations/
➢ https://tradingeconomics.com/burkina-faso/imports-by-category
➢ https://www.ibef.org/economy/trade-and-external-sector
➢ https://www.africa-business.com/features/stationery.html
➢ http://www.rogerjbest.com/nav.cfm?A=N&C=17&P=2
➢ http://commerce.gov.in/analytics/
➢ https://www.eximbankindia.in/
➢ http://www.stclimited.co.in/
➢ https://trends.google.com/trends/?geo=IN
➢ https://www.bbc.com/news/world-africa-13433790
➢ http://www.worldbank.org/en/country/ghana
➢ https://www.cia.gov/library/publications/the-world-
factbook/geos/gh.html
➢ https://www.trademap.org/Index.aspx
54
Balaji Institute of International Business