Tusker Exporters

Prin. L. N. Welingkar Institute of

Management Development & Research,
International Marketing

Report by Group A-12 (MMM, Batch: 2013-2016)

Sr. No.
1.
2.
3.
4.
5.
6.

Name
Devendra Chavan
Rajkumar Gavas
Reshma Kamat
Sandeep Surve
Pankesh Thorat
Abhishek Tonpe

Roll No.
17
19
37
98
104
106

1.0 Executive summary:

1.1 Key Elements of the plan:
Tusker Exports is an exporting firm engaged in
disseminating Non-hazardous Chemicals to
Malaysia. The company has started its business
with the purpose of acquiring market of 15 Mio
INR in the first year with a CAGR of around 20%
YoY for the next 5 years.
1.2 Description
of
Business
and
Target
markets:
This exports firm will mainly focus on specialty
chemicals mainly defoamers for industries like
paint, coatings, and emulsions in the Malaysian
market.
1.3 Brief description of management team:
The Tusker exports is promoted by Mr. Raj Gavas
and Mr. Abhishek Tonpe. Mr. Raj Gavas with his
initial capital of INR 75 lacs has major stakes in
the firm and is the chairman and managing
director. Mr. Abhishek with its capital of INR 50
lacs is working as a Marketing and/or Business
Development chief.

1.4 Summary of financial projections:

The

financial

projection

shows

that

Tusker

exports show the high potential for success and

growth with the exports of specialty chemicals to

the Middle East countries. It shall be profitable

by the end of the first year but shall have a
negative cash flow of INR 20 lacs as seen in
table 1 below. From the second through the fifth
year Tusker Exports shall make both profit and
positive cash flows in an increasing manner.
Tusker Exports shall also pay off the loan
completely together with interest by the end of
the fourth year and also pay dividends to its
shareholders.
Year
Sales/Turnover
COGS
GROSS PROFIT
Earnings Before
Tax
Taxes
Earnings After
Tax
Loan Refund
Surplus( )/
Deficit(-)

Year 1
FCFA
100000000
70 000 000
30 000 000
7 500 000

Year 2
FCFA
110000000
77 000 000
33 000 000
9 665 000

Year 3
FCFA
121000000
84 700 000
36 300 000
12 088 250

Year 4
FCFA
133100000
93 170 000
39 930 000
14 797 663

Year 5
FCFA
146410000
102 487 000
43 923 000
18 824 046

3 450 000
4 050 000

4 445 900
5 219 100

5 560 595
6 527 655

6 806 925
7 990 738

8 659 061
10 164 985

5 000 000

5 000 000

5 000 000

5 000 000

-950 000

219 100

1 527 655

2 990 738

10 164 985

2.0 Business History

2.1 History of Company:
Tusker Trading Company Pvt. Ltd. has been
established in 2005 by Mr. Raj Gavas in Mumbai.
This company catered the supplies of specialty
chemicals mainly for the Coatings, Paints,
Emulsions and Leather industries. Our major
clients are Asian paints, Nippon paints etc. We
deal directly for captive sales. Our current
domestic business is worth 20 Cr INR.
We have our head office in Thane and
warehouse in Bhiwandi.
Office address:
Tusker Exports House
A-12, Road No. 17, Wagle Industrial Estate,
Thane (West), Pin: 400601, Maharashtra, India
Phone: 91-22-23445555
Fax: 91-22-23453434
Website: www.tuskerexports.com
Warehousing facility:
Clarity Ware Housing Facilities
Plot No. 12, Sonale, Bhadwad Gaon,
Bhiwandi, Thane 421302, Maharashtra

2.2 Product services offered and their unique

advantages:
Tusker Trading Company offers variety of product
range in the specialty chemicals with an

excellent technical inputs and after sales

support.
We have application and QC lab for specific
testing parameters required by the customers.
We also provide test reports if required from the
accredited labs like SGS, Texan Labs etc.
We have technical support personnel with high
technical competence who have been hired from
the reputed institutions like IIT, UICT and UDC
etc.
We
offer
products
which
have
been
manufactured under GMP from companies with
various
compliances required
under ISO
certification and Oekotex certification.
2.3 Domestic Market Experience:
As a startup firm, we do not have any prior
experience in any domestic market. But we have
personnel who have worked in domestic market
for more than 5-8 years.
2.4 Foreign Market Experience:
Although our company has no prior experience
in export business, its important to venture into
this market as domestic market is getting
stagnated due to high competition and reduced
margins.

2.5 Production facilities:

As a Chemical trading company, we have

exclusive tie ups with toll manufacturers of high
repute which comply to high manufacturing
standards and comply to various quality and/or
environmental certifications.
2.6 Personnel- International experience and
expertise:
Our company has hired 2 technical experts who
have their basic degrees in Chemical technology
and with the post graduate qualifications MMS,
in Marketing. One of these persons have been
part of the exports business in his earlier
experience.
3.0 Market Research
A) Target Countries:
Primary

: Malaysia

Secondary : Indonesia
Tertiary

: Singapore

B) Market Conditions in Target Countries:

Country : Malaysia
By Application Segment :

Volume (8 K MT)

Pulp and paper

water treatment

1.2
Paints and Coatings 1.6Food and beverages
1.6
0.8
Other

2.8

By Sales:

Sales 3500 Mio INR

Pulp and paper

water treatment

525 700
Paints and Coatings
Food and beverages
700
350
Other

By Product Segment:

1225

Volume
oil based defoamer

water based defoamer

400

1040

4480
2080
Silicone based defoamer
other

By Sales Product Segment wise :

Sales
water based defoamer
420

Oil based defoamer

1225

840
Silicone based defoamer other
1015

2. Competitions:
Top Players:

Elementis
Evonik Industries
Air Products and Chemicals
BASF SE
Wacker Chemie
Others:
Clariant
Ashland
Dow Corning corp.

Market share (% Value )

12%
9%
13%
17%

21%
28%

Elemetis
Air Products
and Chemicals
Others

Evonik Ind
Wacker chemie
BASF SE

3. Strengths and weakness of the country

barriers to entry:

Its a non hazardous chemical so there is no entry

barrier.
Strength:
a) The CECA is the addition to the existing India
ASEAN agreement on Trade in goods.
b)Malaysia is a member of the ASEAN Free Trade
Area (AFTA), which aims to reduce trade barriers
among the member countries over a 15-year
period.

4.0 Marketing Decisions

A) Direct Exporting :
Products will be sold directly to the end
consumer in Malaysia against Advance
Payment by raising of a purchase order.
Documentations:

Invoice

Packing list
Delivery letter
Leaflet, catalogue or other related documents
Insurance certificate, if insured

 Bill of lading / airway bill

Letter of credit (if used)
Permit, licenses/ certificates
Proof of fare payment
A declaration form (Customs Form No. 1) that
indicates the number, description of packages/
crates, value, weight, quantity and type of goods and
country of origin
Completed Custom forms should be submitted to
Customs offices at the place where the goods are
imported or exported.
All duties/ custom taxes imposed on imported goods
will need to be paid in advance before the goods can
be released. Taxes to be paid include import tax and
sales tax.

B ) Pricing Strategy :
Product name

Packi
ng
size

Stratafoam OB 200K
2755
G

FCL
USD/K
G

LCL
USD/KG

MOQ USD/KG

7.8

8.3

8.8

Startafoam OB 200K
0253
G

2.3

2.8

3.3

Stratafoam WB 200
1865
KG

1.7

2.2

2.7

Stratafoam WB 200
1904
KG

2.1

2.6

3.1

Stratafoam
3850

7.5

8.0

8.5

SB 200

C ) Promotion strategy
Chemical Industry Magazines like Paint India,
Chemical Weekly etc.
International Trade fair Like China COAT, PAINT
INDIA etc
Google related ads (Ad word)

D) Product Strategy

 Oil based Defoamer

Stratfoam OB 2905
Strata foam OB 1650
Stratafoam OB 0705
Stratafoam OB 2755
Startafoam OB 0253

Water based defoamer

Stratafoam WB 1865
Stratafoam WB 1904
Stratafoam WB 4900

Silicone Based defoamer

Stratafoam SB 3850
Stratafoam SB 1652
Oil based

Water Based

Silicone Based

Premium

OB 2905

WB 4900

SB 3850

Medium

OB 0705

WB 1904

SB 1652

WB 1865
Economical

0253

WB 1865

NA

5.0 Legal Decisions:

A. Agent/Distriutor agreement
B. Patent,Trademark,copyright protection
C.Export/Import regulation
D. ISO 9000
E.Dispute Resolution
Under the Chapter of Dispute Settlement Mechanism, the Parties shall
resolve the disputes, if any, through consultations and negotiations,
failing which, they may resort to an arbitral tribunal, consisting of three
members. Each Party to the dispute shall appoint a member and the
third member, who would be the Chair of the panel, shall be appointed
by mutual agreement. The CECA provides for (i) reviewing the
implementation and operation of the Agreement;(ii) consider any
matters relating to the implementation of the Agreement; (iii)
supervise and coordinate the work of all Sub-Committees established

under this Agreement; and (iv) adopt

recommendations of the Sub-Committees.

any

decisions

and

6.0 Manufacturing and operations:

6.1 Location of Production facility for exports
As mentioned earlier in this report, we have an
exclusive manufacturing tie up with one of the
toll manufacturer based out of Vapi, Gujrat.
6.2 Capacity of existing facilities:
The existing plant has a capacity of 1tonn of
product per month.
6.3 Plans for Expansion:
The production facility will be expanded further
with the increase in demand from the foreign
markets.
6.4 Product modifications necessary to adapt
to local environment:
The products will be exported to the region with
very high temperature and highly dry weather. In
these conditions the product will be accordingly
modified to adapt to the weather. The processes
will be optimized to make this change.
7.0 Personnel strategies:
7.1 Personnel needed to manage exports:
Exports manager:
Export managers serve as intermediaries between
foreign buyers and domestic sellers. Unlike export
traders, who buy the products before selling directly
to foreign buyers, export managers find buyers
internationally for domestic product manufacturers. A
college graduate is the minimum educational

requirement for this position, with relevant work

experience.
Experience and expertise:
As middlemen, export manager will plan and
coordinate the international shipment of goods.
During the course of the day, he will negotiate with a
variety of people, such as shippers, agents and
vendors, and are expected to have excellent
customer service skills in dealing with customers. He
will often be responsible for personnel management,
which often includes the hiring, training and
supervision of staff.
In his accounting function, export manager may keep
track of invoices and prepare reports to expedite the
billing process. He may also have to ensure that
shipments are in compliance with the laws and
regulations governing the export industry.

7.2 Training strategy:

The personnel will be trained on various aspects
of exporting including the material/product
knowhow along with the details of the countrys
regulations for exporting the specific items.
A periodic and regular refresher training will act
as booster for the personnel. This includes in
house training

7.3 Hiring needs in short term and long term

For short term, the company shall hire a trainee
for managing the documentation

Organogram:

Marketing/Busine
ss Development

Admin/Finance

Quality
Control/Manager

Bill Desk
Executive

Purchase
Manager

Asst. Manager
Technical

Overseas
Marketing
Manager

Trainee

8.0 Financial Decisions

8.1 Pro Forma financial
statements and
projected cash flows assuming exports
activity
8.2 Identification of Key Assumptions
8.3 Current sources of funding private and
bank funding

8.4 Financial
funding

needs

and

future

sources

8.5 Tax consequences of Export Activity

8.6 Potential Risk and sources of protection
9.0 Implementation schedule

of