EXPORT

MARKETING
PROJECT
TOPIC – INDIAN EXPORT IN SEA
FOOD

L.S. RAHEJA COLLEGE OF

ARTS AND COMMERCE,
SANTACRUZ(WEST),
MUMBAI-400 054

YEAR 2010-2011
NAMES SEAT
NUMBERS
SHIKHA JAIN 472

PRATIMA NAIR 489

SAURISH NAIK 486

CLASS – TYBCOM C
DECLARATION
We, the students of L.S. Raheja College of Arts
and Commerce, T.Y.BCom in the academic
year 2010-2011, declare that the work on the
project titled INDIAN EXPORTS OF SEAFOOD is
original.

The work is conducted by us and is not

submitted in any of the examinations.

Names Signature
SHIKHA JAIN
PRATIMA NAIR

SAURISH NAIK

Place : Santacruz

Date : 4th Jan, 2011

Signature of the Teacher

ACKNOWLEDGEMENT
We would like to take this as an opportunity to
express our gratitude to all those who have
contributed their valuable time and guidance in
helping us to achieve success in our project
work.
We would like to express our special thanks to
our subject teacher Mrs. Nerulkar who helped
and guided us throughout the project.

INDEX

SR NO. TOPICS

1. Introduction of Exports

2. Definition

3. Advantages of Exporting

4. History Of India’s Export in Seafood

5. Market structure and Data of Export of Seafood

 6. Increasing and Decreasing trends

7. Indian Organisations promoting Seafood Export

8. Market Share of Seafood

9. Formalities of Registration for Exports Units

10. SWOT Analysis

11. Bibliography

INTRODUCTION OF EXPORTS
The term export is derived from the conceptual meaning as to ship the goods
and services out of the port of a country. The seller of such goods and services is
referred to as an "exporter" who is based in the country of export whereas the
overseas based buyer is referred to as an "importer". In International Trade,
"exports" refers to selling goods and services produced in home country to other
markets.
Any good or commodity, transported from one country to another country in a
legitimate fashion, typically for use in trade. Export goods or services are
provided to foreign consumers by domestic producers.

DEFINiTION
The definition of "export" is when you trade something out of the country. In
economics, an export is any good or commodity, transported from one country
to another country in a legitimate fashion, typically for use in trade.
In national accounts "exports" consist of transactions in goods and services (sales,
barter, gifts or grants) from residents to non-residents.[3] The exact definition of
exports includes and excludes specific "borderline" cases.[4] A general
delimitation of exports in national accounts is given below:

 An export of a good occurs when there is a change of ownership from a

resident to a non-resident; this does not necessarily imply that the good in
question physically crosses the frontier. However, in specific cases national
accounts impute changes of ownership even though in legal terms no change
of ownership takes place (e.g. cross border financial leasing,cross border
deliveries between affiliates of the same enterprise, goods crossing the border for
significant processing to order or repair).
 Export of services consist of all services rendered by residents to non-
residents. In national accounts any direct purchases by non-residents in
the economic territory of a country are recorded as exports of services;
therefore all expenditure by foreign tourists in the economic territory of a
country is considered as part of the exports of services of that country.

ADVANTAGES OF EXPORTING
 Ownership advantages are the firm's specific assets, international
experience, and the ability to develop either low-cost or differentiated
products within the contacts of its value chain. The locational advantages
of a particular market are a combination ofmarket
potential and investment risk.

  Internationalization advantages are the benefits of retaining a core

competence within the company and threading it though the value chain
rather than obtain to license, outsource, or sell it.

 In relation to the Eclectic paradigm, companies that have low levels of

ownership advantages either do not enter foreign markets. If the company
 and its products are equipped with ownership
advantage and internalization advantage, they enter through low-risk
modes such as exporting.

 Exporting requires significantly lower level of investment than other

modes of international expansion, such as FDI. As you might expect, the
lower risk of export typically results in a lower rate of return on sales than
possible though other modes of international business. In other words, the
usual return on export sales may not be tremendous, but neither is the risk.

 Exporting allows managers to exercise operation control but does not

provide them the option to exercise as much marketing control. An
exporter usually resides far from the end consumer and often enlists
various intermediaries to manage marketing activities.

HISTORY OF INDIA’S EXPORT IN SEAFOOD

Till the end of 1960, export of Indian marine products mainly consisted of dried
items like dried fish and dried shrimp.  Although frozen items were present in the
export basket from 1953 onwards in negligible quantities, it was only since 1961
the export of dried marine products was overtaken by export of frozen items
leading to a steady progress in export earnings.  With the devaluation of Indian
currency in 1966 the export of frozen and canned items registered a significant
rise.  Frozen items continued to dominate the trade.  Markets for Indian products
also spread fast to developed countries from the traditional buyers in
neighboring countries.

MARKET STRUCTURE AND DATA OF EXPORTS

OF SEAFOOD
Before 1960, the markets of Indian marine products were largely confined to
neighbouring countries like Sri Lanka, Myanmar (formerly Burma), Singapore
etc. when our exports were dominated by dried items. This situation changed
with the development of technology/modernization; dried products gave way to
canned and frozen items. The product shift also resulted in market shift. More
sophisticated and affluent markets viz. Japan, USA, Europe, Australia, etc.
became our important buyers.  Several seafood processing units with modern
machinery for freezing and production of value added products were set up at all
important centers in the country for export processing.

For a long time USA was the principal buyer for our frozen shrimp but after 1977,
Japan emerged as the principal buyer of the product, followed by the West
European countries.  Japan retained its position till 2001-02 as the single largest
buyer for our marine products accounting for about 31% in the total export
value.   During the year 2002-03 and 2003-04 USA emerged as the single largest
market for our marine products.  During the year 2004-05, the European Union
has collectively become the largest importer of Indian marine products and it
retained its position since 2005-06. During 2008-09 European Union (EU)
continued as the largest market with a percentage share of 32.6% in $ realization
followed by China 14.8%, Japan 14.6%, USA 11.9%, South East Asia 10%, Middle
East 5.5% and Other Countries 10.6%. May be due to the prevailing economic
recession export to EU, USA and Japan declined 6.08%, 10.18% and 8.80%
respectively, all other countries increased their import of marine products from
India during the year.

INCREASING AND DECREASING TRENDS OF

SEAFOOD
According to the Seafood Exporters Association of India (SEAI), the country’s
exports yielded $638 million (€485.6 million) during the first four months of FY
2010-11 compared with $517.4 million (€393.9 million) during the same period of
the previous fiscal year.

Higher catches in India have helped the trend and led to diminished domestic
prices. The only worry of the $2 billion (€1.5 billion) industry, said national SEAI
President Anwar Hashim, is the weakening dollar and the consequent lowering of
the export realisation.
The Marine Products Export Development Authority (MPEDA) said growing
Japanese demand for tiger black shrimp played an important role in the rising
exports.

Shrimp exports to the US market have grown despite the fact that the anti-
dumping duty increased after the fourth review, said Hashim.

Exports to West and South Asian countries increased 27% during the past year
while exports to South East Asian countries soared by 62%.

Exports to Japan have grown despite the country’s very high quality standards,
MPEDA said. The first quarter’s export volume rose by 47%, while the value
climbed 30%.

As well as black tiger shrimp, India’s exports also include freshwater shrimp, fresh
sailfish, frozen versatile fish, frozen skipjack and frozen squid.

India's marine product exports have for the first time crossed $2 billion, according
to official figures for financial year 2009-10 released here today.
Recession in the international market has not impacted the export of marine
products from the country, the Marine Products Exports Development Authority
said.
In terms of volumes too, 2009-10 was exceptional, it added. Exports aggregated
663,603 tonnes valued at Rs.9,921.46 crore. In terms of US dollars, it was
$2,105.60 million.
Compared to the previous year, there was 10.08 percent growth in volume, 15.26
percent in rupee earning and 10.32 percent growth in US dollar earnings. Frozen
shrimp continued to be the major export item accounting for 41.74 percent of the
total dollar earnings.
Fish, the principal export item in terms of volume and the second largest in value
terms, accounted for 38.37 percent in quantity and 20.09 percent in dollar
earnings.
Export of live lobster, live crab and Baigai (little water snail) showed an increase
in exports. However, the export of ornamental fish showed a declining trend,
mainly because of a ban on export of Denisonii by the Kerala government.
 The European Union remained the largest market with a share of 30.07 percent in
dollar realization, followed by China with a share of 17.73 percent and Japan 12.96
percent. (IANS)

Export Trends
The export of marine products has steadily grown over the years - from a mere
Rs.3.92 crore in 1961-62 to Rs. 8607.94 crore in 2008-09. Marine products
account for approximately 1.1 % of the total exports from India.

GROWTH IN EXPORT OF INDIAN MARINE

PRODUCTS

(2000-2001 to  2008 – 2009) 

Avera Growth rate %
ge
Averag Value
Quanti Unit Average Unit
Value e in US
ty in value ValueRealiza Dollar 
Year inRs. Exchan $ Quan
Tonne Realiz tion US $ / Rupee Value   
Crore ge Rate Millio tity
s ation Kg. Value
US $ n
(Rs. /
Kg)
     
2000- 44047 6443.89 146.29 45.497 1416. 3.22 28.41 25.94 19.11
01 3 5 32
2001- 42447 5957.05 140.34 47.529 1253. 2.95 -3.63 -7.56 -11.51
 02 0 2 35
2002- 46729 6881.31 147.26 48.293 1424. 3.05 10.09 15.52 13.69
03 7 3 90
2003- 41201 6091.95 147.86 45.709 1330. 3.23 - -11.47 -6.61
04 7 1 76 11.83
2004- 46132 6646.69 144.08 44.668 1478. 3.20 11.97 9.11 11.10
05 9 3 48
2005- 51216 7245.30 141.46 44.065 1644. 3.21 11.02 9.05 11.21
06 4 5 21
2006- 61264 8363.53 136.52 45.136 1852. 3.02 19.62 15.43 12.69
07 1 7 93
2007- 54170 7620.92 140.68 40.129 1899. 3.51 - -8.88 2.49
08 1 3 09 11.58
2008- 60283 8607.94 145.79 45.99 1908. 3.17 11.29 12.95 00.50
09 5 63

INDIAN ORGANISATIONS PROMOTING SEAFOOD

EXPORTS

1. Seafood Exporters Association of India (SEAI) was incorporated with the

main objective to protect and promote the interest of the companies
engaged in the seafood business and to develop the international trade of
seafood from India.SEAI has its corporate base in Cochin in Kerala and
 eight regional offices in Kerala, Tamil Nadu, Karnataka, Gujarat, orissa,
West Bengal, Maharashtra and Andhra Pradesh.

2. The Marine Products Export Development Authority (MPEDA) was

constituted in 1972 under the Marine Products Export Development
Authority Act 1972 (No.13 of 1972). The role envisaged for the MPEDA
under the statute is comprehensive - covering fisheries of all kinds,
increasing exports, specifying standards, processing, marketing, extension
and training in various aspects of the industry.

a. Work programme of MPEDA

i. Registration of infrastructure facilities for seafood Export trade

ii. Collection and dissemination of trade information

iii. Projection of Indian marine products in overseas markets by

participation in overseas fairs and organising international
seafood fairs in India.

iv. Implementation of development measures vital to the industry

like distribution of insulated fish boxes, putting up fish landing
platforms, improvement of peeling sheds, modernisation of
industry such as upgrading of plate freezers, installation of IQF
machinery, generator sets, ice making machineries, quality
control laboratory etc.

v. Promotion of  aquaculture for production of  shrimp and prawn

for export.

3. The Seafood Exporters Association of India was established in year 1973.

This is an organisation registered under the Registrar of Companies Act
1956. This is the only organisation that is catering for the well being of the
seafood exporting fraternity of this country. Almost 90% of the seafood
 exporters of India are members of this organisation.

MARKET SHARE OF SEAFOOD

The share of marine product exports has steadily grown over the years; from a
mere Rs 3.92 crore in 1961-62 to Rs 6,292.04 crore in 2005-06, accounting for
approximately 1.5% of the total exports from India. Japan, USA and the Western
European countries are the principal buyers of Indian frozen shrimp. Japan
retained its position as the single largest buyer for Indian marine products till
2001-02 accounting for about 31% in the total export value. During the year 2002-
03 and 2003-04 USA emerged as the single largest market for our marine
products.
 
Maritime States of India
The European Union, in the year 2004-05, collectively became the largest
importer of Indian marine products. As compared to 2004-05, EU's share
increased by 10% in quantity, 12.8% in value terms in 2005-06. The share of USA
also increased by 11.8% in quantity and 3.6% in value terms in 2005-06. The
exports to the US, EU, China, and Middle East showed an increase whereas the
export to Japan recorded a declining trend in the past few years.
 
Major marine products exported from India includes frozen shrimps, Individually
Quick Frozen (IQF) shrimps, canned shrimps/prawns, dried shrimps/prawns,
lobsters, cuttle fish, squid tubes, fresh fishes, canned fish, dried fish, crab, clam,
mussel, aquarium fishes, dried shark fins, dried cuttle fish bones, dried fish maws,
etc.
 
Frozen shrimp is the largest item exported in terms of value with a share of
59.02% of the total exports and frozen fish is the major item exported in terms of
quantity with a share of 35.60% in total exports of marine products (MPEDA,
2005-06).
 
Market Structure
It was before 1960 the markets of Indian marine products were largely confined to
neighbouring countries like Sri Lanka, Myanmar formerly known as Burma, and
Singapore etc. when dried items dominated our exports. This situation changed
with the development of technology and modernization; dried products gave way
to canned and frozen items. The product shift also resulted in market shift. More
sophisticated and affluent markets viz. Japan, USA, Europe, Australia, etc.
became our important buyers. Several seafood processing units with modern
machinery for freezing and production of value added products were set up at all
important centers in the country for export processing.
 
For a long time USA was the principal buyer for our frozen shrimp but after 1977,
Japan emerged as the principal buyer of the product, followed by the West
European countries. Japan retained its position till 2001-02 as the single largest
buyer for our marine products accounting for about 31% in the total exports
value.   During the year 2002-03 and 2003-04 USA emerged as the single largest
market for our marine products. During the year 2004-05, the European Union
has collectively become the largest importer of Indian marine products and it
retained its position during the year 2005-06 also. As compared to 2004-05, its
share is increased by 16.22% in quantity, 17.31% in value and 19.39% in US $
realization. USA became the second largest market in terms of value, followed b y
Japan.   Exports to USA, EU, China, Middle East etc showed an increase where as
the export to Japan and South East Asia recorded a declining trend

FORMALITIES OF REGISTRATION FOR

EXPORT UNITS 
REGISTRATION AS A BUSINESS ENTITY:- 
No additional registration formalities are required for a domestic unit if it wants
to enter exports. A new export unit can be started as a proprietorship concern, a
partnership concern or as a company with limited liability and the formalities
remain the same as for domestic units. 

IEC NUMBER:- 
Every individual, firm or a company seeking to export or import is required to
obtain a code number, called Import Export Code (IEC) number, from the office of
Regional licensing authority of DGFT. This number is required for communication
with any office related to export and import. 

REGISTRATION-CUM-MEMBERSHIP CERTIFICATE (RCMC) 

RCMC means the certificate of registration and membership granted by an 
Export Promotion Council/ Commodity Board/ Development Authority or other
competent authority as prescribed by Foreign Trade Policy to an exporting unit. 

Any person, applying for (i) a licence/ authorisation/ certificate/permission to

import/ export, or (ii) any other benefit or concession under Foreign Trade Policy
is required to furnish Registration-cum-Membership Certificate (RCMC). RCMC is
also required for executing a bond before Central Excise authorities, which
exempts exporters to furnish bank guarantees. 

Export Promotion Councils have been set up by various ministries of the Central
Government to promote and develop the exports of particular group of products,
projects and services. For certain group of products, which are sensitive from the
viewpoint of national consumption, there are commodity boards instead. Thus
while we have export promotion councils for apparel, leather, software,
chemicals, engineering goods etc., we have commodity boards for tea, coffee,
jute etc. 

REGISTRATION WITH SALES TAX OFFICE 

Goods exported from India are exempt from central and state sales tax. However,
for getting exemption of such taxes or claming their refund, wherever permissible
under Foreign Trade Policy, the exporting unit should be registered with sales tax
authorities. 
REGISTRATION WITH EXCISE DEPTT 
If the exporting unit is engaged in manufacture of the product, it needs
registration with excise department and the formalities remain the same as for
any domestic unit. This registration is required for claiming refund of excise duties
under various schemes of the government.
Registration

 Registration with Reserve Bank Of India: No longer required. Prior to

1.1.1997 it was compulsory for every exporter to obtain an exporters' code
number from the Reserve Bank of India before engaging in export. This has
since been dispensed with and registration with the licensing authorities is
sufficient before commencing export or import.
 Registration with Regional Licensing: Authorities (obtaining IEC Code
Number) The Customs Authorities will not allow you to import or export
goods into or from India unless you hold a valid IEC number. For obtaining
IEC number you should apply to Regional Licensing Authority (list given in
Appendix 2) in duplicate in the prescribed form given in Appendix 1. Before
applying for IEC number it is necessary to open a bank account in the name
of your company / firm with any commercial bank authorised to deal in
foreign exchange. The duly signed application form should be supported by
the following documents:

Bank Receipt (in duplicates)/Demand Draft for payment of the fee of Rs.
1,000/-.

Certificate from the Banker of the applicant firm as per Annexure 1 to the
form given in Appendix 1 of this Book.

Two copies of Passport size photographs of the applicant duly attested by

the banker to the applicants.

A copy of Permanent Account Number issued by Income Tax Authorities. If

PAN has not been allotted, a copy of application of PAN submitted to
Income Tax Authorities.

In case the application is signed by an authorised signatory, a copy of the

letter of legal authority may be furnished.
 If there is any non-resident interest in the firm and NRI investment is to be
made with repatriation benefits, a simple declaration indicating whether it
is held with the general/specific permission of the RBI on the letter head of
the firm should be furnished. In case of specific approval, a copy may also
be furnished.

Declaration by the applicant that the proprietors/partners/directors of the

applicant firm/company, as the case may be, are not associated as
proprietor/partners/directors with any other firm/company which has been
caution-listed by the RBI. Where the applicant is so associated with a
caution-listed firm/company the IEC No. is allotted with a condition that he
can export only with the prior approval of the RBI.

Exporter's Profile as per form attached to Appendix 1 of this book (See

Appendix 1A of this Book). The Regional Licensing Authority concerned will
on merits grant an IEC number to the applicant. The number should
normally be given within 3 days provided the application is complete in all
respects and is accompanied by the prescribed documents. An IEC number
allotted to an applicant shall be valid for all its branches/divisions as
indicated on the IEC number

SWOT ANALYSIS
When conducting strategic planning for any company -- online and/or offline -- it
is useful to complete an analysis that takes into account not only your own
business, but your competitors' activities and current industry happenings as well.
A SWOT is one such analysis.

Completing a SWOT analysis helps you identify ways to minimize the affect of
weaknesses in your business while maximizing your strengths. Ideally, you will
match your strengths against market opportunities that result from voids in your
competitors' products and/or services.

Traditionally, a SWOT confines strengths and weaknesses to your company's

internal workings while opportunities and threats refer only to the external
environment. Here, I suggest a twist to the "text book" approach. To get a better
look at the big picture, consider both internal *and* external forces when
uncovering opportunities and threats.

A Basic SWOT Analysis

You can develop the basic analysis in a brainstorming session with members of
your company, or by yourself if you are a one-person shop. To begin the analysis
create a four- cell grid or four lists, one for each component:

| Strengths | Weaknesses | Opportunities | Threats |

Then, begin filling in the lists.

Strengths. Think about what your company does well. Some questions to help
you get started are: What makes you stand out from your competitors? What
advantages do you have over other businesses?

Weaknesses. List the areas that are a struggle for your company. Some questions
to help you get started are: What do your customers complain about? What are
the unmet needs of your sales force?

Opportunities. Traditionally, a SWOT looks only at the external environment for

opportunities. I suggest you look externally for areas your competitors are not
fully covering, then go a step further and think how to match these to your
internal strengths.

Try to uncover areas where your strengths are not being fully utilized. Are there
emerging trends that fit with your company's strengths? Is there a product/service
area that others have not yet covered?

Threats. As with opportunities, threats in a traditional SWOT analysis are

considered an external force. By looking both inside and outside of your company
for things that could damage your business, however, you may be better able to
see the big picture.

BIBLIOGRAPHY

1. www.google.com
2. www.seai.in
 3. www.sea-ex.com
4. www.yahoo.com

The Seafood Export Industry in India is over 50 years old and canned shrimp
exports were
The Seafood Export Industry in India is over 50 years old and was initiated when the first shipment of frozen shrimp
was sent from the port of Cochin in 1953

The Seafood Export Industry in India is over 50 years old and was initiated when the
of frozen shrimp was sent from the port of Cochin in 1953