DIPLOMA IN INTERNATIONAL BUSINESS MANAGEMENT

(Batch XXIX: July-December, 2009)

MARKET RESEARCH REPORT ON EXPORT OF SYNTHETIC ORGANIC PIGMENTS TO AUSTRALIA

Submitted By: Snehal Soni

Submitted To: Prof. P V Desai

Export of Synthetic Organic Pigments to Australia

AHMEDABAD MANAGEMENT ASSOCIATION

DECLARATION

I, Snehal Soni student of Diploma in International Business Management (Batch # 29) from Ahmedabad Management Association, Ahmedabad hereby declare that I have completed Research Report ion on Exports of Synthetic Organic Pigment to Australia as part of the course requirement. I further declare that the information presented in this project is true and original to the best of my knowledge and belief.

Date: 31St December 2009 Place: Ahmedabad

SNEHAL SONI Program: DIPLOMA IN IBM

Diploma in International Business Management (Batch # XXIX)

Snehal Soni

Export of Synthetic Organic Pigments to Australia

ACKNOWLEDGEMENT

I express my deep sense of gratitude to my all Faculty of Ahmedabad Management Association, Ahmedabad for his able guidance, continuous support and

cooperation throughout my curriculum, without his efforts and motivation, the present work would not be possible.

Snehal Soni

Diploma in International Business Management (Batch # XXIX)

Snehal Soni

Export of Synthetic Organic Pigments to Australia

CONTENTS
Declaration Acknowledgement S.No. Part I Contents Ch, 1 What is Pigment Ch. 2 Wordl Trade of Synthetic Organic Pigments Ch. 3 Trade of India of Synthetic Organiv Pigments Ch. 4 Trade of Australia of Synthetic Organic Pigments Ch. 5 Trade Relationship of India and Australia special respect to Synthetic Organic Pigments Part II Part III Part IV Objectives of the Research Methodology of Research Australia Fact Sheet Ch. 1 Goegraphy and People Ch. 2 Economy Ch. 3 Government : Legal and Political Ch. 4 Logistics and Customs Ch. 5 Business Visa Rules Ch. 6 India Australia FTA Feasibility Ch. 7 Major Players of SO Pigment Industry Part V Part VI Primary Research Data Analysis Suggestions from Indian Consulate at Sydney for Exporters of India SWOT Analysis Survey Questionnaires Bibliography 52 58 59 61 23 30 35 41 43 44 45 46 17 21 22 Page No. 05 06 10 14

Diploma in International Business Management (Batch # XXIX)

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Export of Synthetic Organic Pigments to Australia

PART I CH 1 - What is Pigment?

Any of a group of compounds that are intensely coloured and are used to colour other materials . Pigments are insoluble and are applied not as solutions but as finely ground solid particles mixed with a liquid. In general, the same pigments are employed in oil- and water-based paints, printing inks, and plastics also finding the application in textile, leather and rubber. Pigments may be organic (i.e., contain carbon) or inorganic. Organic pigments made from natural sources have been used for centuries, Inorganic pigments are made by relatively simple chemical reactionsnotably oxidationor are found naturally as earths. But most pigments used today are either inorganic or synthetic organic ones. Synthetic organic pigments are carbon based molecules manufactured from petroleum compounds, acids, and other chemicals, usually under intense heat or pressure. The techniques for producing these substances on an industrial scale were invented after 1860, which created the modern era of consumer color. Chemical and industrial innovations increased at an astonishing pace through the end of the 19th century and have continued up to the present. Synthetic organic pigments are manufactured to be very potent and are often the most saturated and strongest tinting colorants available for any specific hue. However, they can be expensive to manufacture, and their lightfastness can change dramatically depending on particle size, crystal form, or the type of substrate used in laking. Synthetic Organic pigments include azo pigments, which contain a nitrogen group; they account for most of the organic red, orange, and yellow pigments. Copper phthalocyanines provide brilliant, strong blues and greens that are unusually colourfast for organic colours. Some pigments, such as fluorescent ones, are simply dyes that have been rendered insoluble by chemical reaction. Apart from that there are also quinacridones pigments, disazomethine pigments, Dioxazine pigments.

Diploma in International Business Management (Batch # XXIX)

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Export of Synthetic Organic Pigments to Australia

It's worth noting that, for at least the last three centuries, artists were not of any economic significance in the discovery and development of pigments. About half the total volume of synthetic organic pigments produced around the world is used in printing inks; another quarter is used in architectural paints; and the rest for coloring textiles, plastics, automotive finishes, ceramics, enamels, papers, cements, candles, foods, cosmetics and

pharmaceuticals. Art materials manufacturers buy what they can use from the scraps and remnants of the industrial pigment consumption driven by mass consumer products. The worldwide market for pigments had a total volume of around 7.4 million tons in 2006. Asia has the highest rate on a quantity basis followed by Europe and North America. In 2006, a turnover of 17.6 billion US$ (13 billion Euro) was reached mostly in Europe, followed by North America and Asia.

CH 2 : WORLD TRADE OF SYNTHETIC ORGANIC PIGMENT

2004 Imports In USD 000 Exports In USD 000 Imports (In MTS.) Exports (In MTS.) Total ( In USD 000) Total (In MTS.) 4022641 4072945 2005 4064584 4123667 2006 4445685 4499679 2007 5040562 5034077 2008 5384908 5246714

521748 500294 8095586 1022042

563170 525971 8188251 1089141

568075 571995 8945364 1140070

626211 603616 10074639 1229827

601745 550546 10631622 1152291

% of Grown (By Value)

-----

1.14%

9.25%

12.62%

5.52%

Diploma in International Business Management (Batch # XXIX)

Snehal Soni

Export of Synthetic Organic Pigments to Australia

Diploma in International Business Management (Batch # XXIX)

Snehal Soni

Export of Synthetic Organic Pigments to Australia

12000000 10000000

In USD 000

8000000 6000000 4000000 2000000 0 2004 2005 2006 2007 2008 Worl Trade

Year

TOTAL WORLD TRADE V/S. TRADE OF SYNTHETIC ORGANIC PIGMENT

2004 Total World Trade In USD Billion Trade of SO Pigment In USD Billion % of Grown of World Trade (By Value) % of Grown of SO Pigments (By Value) 8.095586 2005 8.188251 2006 8.945364 2007 10.07464 2008 10.63162

18454.19 -----

20976.28 13.67%

24272.83 15.71%

27883.9 14.88%

31481.09 12.90%

-----

1.14%

9.25%

12.62%

5.52%

Diploma in International Business Management (Batch # XXIX)

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Export of Synthetic Organic Pigments to Australia

20 15 10 5 0 2004 2005 2006 2007 2008 Trade of SO Pigment World Trade World Trade Trade of SO Pigment

The world trade of the SO Pigment has been continuously increasing along with the increasing total world trade thought not parallel to the rate of the total world trade growth till the year 2007 but not kept its steady growth in the year of 2008 as past times as because of the recession period at that time.

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CH 3 : THE TRADE OF INDIA OF SYNTHETIC ORGANIC PIGMENT.

In recent years due to economic reforms India has become more open to the world economy and more economically dynamic. Indias real GDP growth over the past four years has averaged 8.8 per cent in constant 1999 Rupee terms. Real GDP per capita has grown substantially, giving rise to a sizable middle class, with significant disposable income by Indian standards, which is seeking new products. The WTO Economic Unit has forecast India will be the fastest growing economy in the world between 2007 and 2030, with growth averaging 6 per cent a year. As a result of extensive reforms, including in the financial sector, trade liberalisation and reduced government administrative controls, trade is of growing importance to India. Between 2000 and 2006, Indias merchandise exports increased by about 200 per cent, outstripping GDP growth: the ratio of merchandise trade to GDP jumped from 22 per cent in 2000 to 35 per cent in 2006. In 2006, India was ranked as the worlds 28th largest exporter of goods and 10th largest exporter of commercial services. Services exports increased by over 30 per cent a year between 2001 and 2006, outpacing merchandise exports, and now account for around 38 per cent of total exports. The strong growth in services exports has been led by software and business process outsourcing, tourism and transport services. Imports have also grown significantly, driven by the wide-ranging reforms to the economy. Merchandise imports have grown at an annual average of 23 per cent since 2000.

The same trend also reflects in the trade of the Synthetic Organic Pigments. India is enjoying high surplus in the trade of the SO Pigments. Her Exports are very high than Imports of the same. Not only that the Exports are continuously increasing at extensive rate as reflected in the below data.

Diploma in International Business Management (Batch # XXIX)

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Imports & Exports of India of S O Pigments

2004 Exports In USD 000 Imports In USD 000 Exports (In MTS.) Imports (In MTS.) Total ( In USD 000) Total (In MTS.) 129477 15879 25401 1817

2005 191250 23959 36292 2659

2006 236301 28608 42457 3235

2007 291575 32667 47046 3489

2008 369819 54595 54142 5400

145356 27218

215209 38951

264909 45692

324242 50535

424414 59542

% of Grown Exports (By Value) % of Grown Imports (By Value) % of Grown Total (By Value)

-----

47.71%

23.56%

23.40%

26.83%

-----

50.88%

19.40%

14.19%

67.13%

-----

48.05%

23.10%

22.40%

30.90%

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IMPORT V/S. EXPORTS

Diploma in International Business Management (Batch # XXIX)

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Diploma in International Business Management (Batch # XXIX)

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CH 4 : TRADE OF AUSTRALIA OF SYNTHETIC ORGANIC PIGMENTS

Having abandoned natural recourses Austral ia took advantage of its to rapidl y develop agricul tural and manufacturing industries and to m ake a m ajor contribution to the British effort in Worl d Wars I and II. In recent decades, Austral ia has transform ed itsel f into an internationally com petitive, advanced m arket econom y. It boasted one of the OECD's fastest growing econom ies during the 1990s, a perform ance due in l arge part to econom ic reforms adopted in the 1980s. Based on such efforts the Paint, Pl astic, Ink have get m ajor chunk which raised the dem and of the col orant m aterial s, such as Dyes and Pigm ents. The Pigm ents having the high strength col oring material the share of such has been al ways at high to the proportion com paring to other col oring m aterial s. Imports & Exports of Australia of S O Pigments 2004 Exports In USD 000 Imports In USD 000 Exports (In MTS.) Imports (In MTS.) Total ( In USD 000) Total (In MTS.) 15181 45298 2996 4826 2005 18136 44073 3876 5244 2006 16556 43097 3331 5108 2007 13276 47423 2423 6068 2008 13848 50654 1882 5875

60479 60479

62209 62209

59653 59653

60699 60699

64502 64502

% of Grown Exports (By Value) % of Grown Imports (By Value) % of Grown Total (By Value)

-----

-2.71

-2.22

10.04

6.81

-----

19.47

-8.72

-19,82

4.031

-----

2.86

-4.11

1.75

6.27

Diploma in International Business Management (Batch # XXIX)

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Diploma in International Business Management (Batch # XXIX)

Snehal Soni

Export of Synthetic Organic Pigments to Australia

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Diploma in International Business Management (Batch # XXIX)

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CH 5 : TRADE RELATIONSHIP BETWEEN INDIA AND AUSTRALIA

Austral ias two-way goods and services trade with India grew to $13.6 billion in 2006-07, m aking India Austral ias ninth largest trading partner (see Tabl e 1). Five year average annual growth in two-way goods and services trade was almost 30 per cent about four tim es faster than Austral ias total two-way trade growth over the sam e period (see Chart 1). Austral ia is an im portant source of im ports for India, increasing from the 10th l argest m erchandise im port source (2.4 per cent of total im ports) in 2001, to 7th in 2006 (3.7 per cent of the total ). Austral ia has al so emerged as an im portant trading partner for India: Austral ia ranks as Indias 11th l argest m erchandise trading partner accounting for 2.5 per cent of total trade, com pared with 15th in 2001.

Diploma in International Business Management (Batch # XXIX)

Snehal Soni

Export of Synthetic Organic Pigments to Australia

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Diploma in International Business Management (Batch # XXIX)

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TOTAL IMPORT FROM V/S. EXPORT TO THE WORLD OF S.O. PIGMENTS AUSTRALIA (IN USD MILLION)

60 40 Imports 20 0 2004 2005 2006 Exports

Exports Imports 2007 2008

INDIA (IN USD MILLION)

400 300 200 100 0 2004 2005 2006 Exports Imports 2007 2008 Imports Exports

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Export of Synthetic Organic Pigments to Australia

Department of Commerce
Export Import Data Bank Export :: Commodity x Country - wise
Commodity: 320417 PIGMENTS & PREPTNS BASED THEREON Country: AUSTRALIA S.No. 1. 2. 3. 4. 5. 6. 7. 8. Values in US$ Million %Growth Total export of commodity %Growth %Share of country (1 of 3) Total export to country %Growth %Share of commodity (1 of 6) Exchange rate: (1US$ = Rs.) 0.33 45.9516 1.35 584.29 140.51 \Year 20032004 1.90 20042005 1.34 -29.66 142.48 1.40 0.94 720.25 23.27 0.19 44.9315 20052006 1.21 -9.78 190.52 33.71 0.63 821.23 14.02 0.15 44.2735 20062007 1.38 14.27 236.54 24.16 0.58 924.05 12.52 0.15 45.2849 20072008 3.10 124.43 319.74 35.17 0.97 1,150.60 24.52 0.27 40.2410

The growth has been continuously increasing for the exports of SO Pigments once it was negative in year of 2004-05 afterword the rate though negative but it is much lower than the previous rate. In 2007-08 the rate of growth of exports of the same achieve comprehensive increase and comes to above 100 pct which was previously over 14pct but positive compare last year of it.

Diploma in International Business Management (Batch # XXIX)

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PART II OBJECTIVES FOR THE RESEARCH

As described in the first portion of the Research Report about the usefulness of the Synthetic Organic Pigment of its being strength, it is widely used as the colorant basic raw material. The world trade of the such is continuously increasing. The share of consumption of the same is also increasing in Australia, reflected in the trade of the same over the last five years. Parallel to such situation, India is becoming achieved the higher rank with the Australia in terms of trade. The export of SO Pigment is also get benefited due to this scenario. As the imports of Australia is quiet higher than its import, that occurs the possibility of increasing export of the SO Pigments to Australia.

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PART III METHODOLOGY ADOPTED FOR THE RESEARCH

Primary Data: The Primary Data has been collected through the Questioners having nine questions in it. The questioners have seven close ended questions and two of it open ended questions. Such has been circulated through E-mails to various manufacturers and agents who are in the industry of SO Pigments, whether buying domestically or internationally. Out of them there have been seventeen reply received.

Secondary Date: The secondary data has been collected from the internet through official government websites of both Australia and India. The data has been also collected from the private websites as well.

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PART IV AUSTRALIA Fact Sheet

CH 1 General (Geography & People)

Country name :
Conventional Long Form: Commonwealth Of Australia Conventional Short Form: Australia

Brief Background :
Aboriginal settlers arrived on the continent from Southeast Asia about 40,000 years before the first Europeans began exploration in the 17th century. No formal territorial claims were made until 1770, when Capt. James COOK took possession in the name of Great Britain. Six colonies were created in the late 18th and 19th centuries; they federated and became the Commonwealth of Australia in 1901. The new country took advantage of its natural resources to rapidly develop agricultural and manufacturing industries and to make a major contribution to the British effort in World Wars I and II. In recent decades, Australia has transformed itself into an internationally competitive, advanced market economy. It boasted one of the OECD's fastest growing economies during the 1990s, a performance due in large part to economic reforms

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adopted in the 1980s. Long-term concerns include climate-change issues such as the depletion of the ozone layer and more frequent droughts, and management and conservation of coastal areas, especially the Great Barrier Reef.

Flag Description Blue with the flag of the UK in the upper hoist-side quadrant and a large seven-pointed star in the lower hoist-side quadrant known as the Commonwealth or Federation Star, representing the federation of the colonies of Australia in 1901; the star depicts one point for each of the six original states and one representing all of Australia's internal and external territories; on the fly half is a representation of the Southern Cross constellation in white with one small five-pointed star and four larger, seven-pointed stars

Geographical::Austraila

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Location : Oceania, continent between the Indian Ocean and the South Pacific Ocean (Lat) 10 41 South and 43 39 South (Long) 113 09 East and 153 39 East

Time Difference: UTC+10 (15 hours ahead of Washington, DC during Standard Time) Daylight saving time: +1hr, begins last Sunday in October; ends last Sunday in March note: Australia is divided into three time zones

Area : Total: 7,741,220 Sq Km Land: 7,682,300 Sq Km Water: 58,920 Sq Km Note: Includes Lord Howe Island And Macquarie Island

States and Territories : New South Wales, Victoria, Queensland, Western Australia, South Australia and Tasmania. Territories are - Northern Territory and - Australian Capital Territory.

Federal Capital : Canberra

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Other Major Cities : Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart and Darwin

Climate : Generally arid to semiarid; temperate in south and east; tropical in north Summer from December to February autumn from March to May winter from June to August spring from September to November. Conditions vary depending on location.

Natural resources : Bauxite, Coal, Iron Ore, Copper, Tin, Gold, Silver, Uranium, Nickel, Tungsten, Mineral Sands, Lead, Zinc, Diamonds, Natural Gas, Petroleum Note: Australia Is The World's Largest Net Exporter Of Coal Accounting For 29% Of Global Coal Exports

Geography - note:

world's smallest continent but sixth-largest country; population

concentrated along the eastern and southeastern coasts; the invigorating sea breeze known as the "Fremantle Doctor" affects the city of Perth on the west coast and is one of the most consistent winds in the world

People::Austraila
Nationality: Adjective: Noun: Australian(S) Australian

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Population : 21,262,641 (July 2009 Est.) Country Comparison To The World: 54 Population growth rate: 1.195% (2009 est.)

Age structure : 0-14 years: 18.6% (male 2,026,975/female 1,923,828) 15-64 years: 67.9% (male 7,318,743/female 7,121,613) 65 years and over: 13.5% (male 1,306,329/female 1,565,153) (2009 est.) Median age: Urbanization : Urban Population: 89% Of Total Population (2008) Rate Of Urbanization: 1.2% Annual Rate Of Change (2005-10 Est.) total: 37.3 years

Religion : Catholic 25.8%, Anglican 18.7%, Uniting Church 5.7%, Presbyterian and Reformed 3%, Eastern Orthodox 2.7%, other Christian 7.9%, Buddhist 2.1%, Muslim 1.7%, other 2.4%, unspecified 11.3%, none 18.7% (2006 Census)

Ethnic groups: English, Irish, New Zealander, Italian, Croatian, Serbian, Vietnamese, Greek, Chinese, Indian (Caucasian 92%; Asian 7%; Aboriginal and others 1%)

Languages : English 78.5%, Chinese 2.5%, Italian 1.6%, Greek 1.3%, Arabic 1.2%, Vietnamese 1%, other 8.2%, unspecified 5.7% (2006 Census)

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Eductation : Literacy definition: age 15 and over can read and write School life expectancy (primary to tertiary education): 20 years Education expenditures: 4.5% of GDP (2005) country comparison to the world: 86

Attitudes & Beliefe

Austral ians have very strong attitudes and bel iefs which are reinforced by the tenets of the country's society. The Austral ian national character has been forged by the difficul ty of subduing the l and. Unl ike other cultures based on a nurturing l andscape that they seek to protect from others, The need to l augh in the face of danger whil e battl ing the l andscape has provoked a strange view of the worl d, with a distinctive upsidedown sense of hum our Tim es of hardship or even disaster are ridicul ed, and this extends to the Austral ian del ight in dubbing a tall m an "Shorty," a quiet one "Rowdy," a bal d m an "Curly" and a redhead "Bl uey".[ "Mateship", or l oyal fraternity, has been a central tenet of survival in the harsh l andscape. Mateship is seen as an im portan t el ement of the qual ities that the Austral ian Defence Force val ues in its troops. An aspect of the mateship culture on language is that Australians have a propensity for the diminutive forms of names (e.g. Hargrave -> Hargie; Wilkinson -> Wilko;). This is a display of affection and acceptance rather than belittlement Australian history glorifies its sportsmen and its soldiers. Yet like many legends, truths do stem from it. Australia has shown, in the past and present, that for a country of just over 20 million people, it is capable of extraordinary things in the sporting arenas, such as the 49 medals won at the 2004 Athens Olympic Games.

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Australians were considered to be remarkably determined, united and hard-working individuals. Australians also had a lax attitude towards discipline, a notoriety which the Australian soldiers revelled in.

Customs Friendly Rivalry Australians and New Zealanders have a rivalry, especially in certain sports such as rugby union. The rivalry is often compared to brothers in the same family competing against each other. During the First World War the Australian Soldiers and the New Zealand Soldiers joined forces to become the ANZACs, otherwise known as the Australian New Zealand Army Corps. The biggest sporting rivalry exists between Australia and England. As Australians see New Zealanders as their little brother they see the English as big brother, with more people, history and money. The sporting paddock was a place where Australians could shine. Underdog" Identity There is the traditional Australian support for the "underdog." Australians will support those who appear to be at a disadvantage unless the underdog is against fellow Australians. This underdog attitude is most evident in sport, as sport is also a large part of Australian culture. Should an Australian be asked to choose between two unknown competitors, very often they will choose the one least likely to win. The success of Steven Bradbury in the 2002 Winter Olympics who won a skating gold medal after all his competitors crashed has coined the expression 'doing a Bradbury' which underpins the spirit of the underdog, positive thinking and never giving up. The Australian Dream The Australian Dream of home ownership underpins suburban Australia. However, this has been challenged by the low affordability of housing in Australia.

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AUSTRALIA CH 2 Economy Overview

Australia is one of the most laissez-faire capitalist economies according to indices of economic freedom. Australia's per-capita GDP is slightly higher than that of the UK, Germany, and France in terms of purchasing power parity. The country was ranked second in the United Nations 2009 Human Development Index and sixth in The Economist worldwide quality-of-life index 2005. Australia has grown at an average annual rate of 3.6% for over 15 years, well above the OECD average of 2.5%. Australia's average GDP growth rate for the period 1901-2000 is at 3.4% annually. As of September 2009, there were 10,770,200 people employed, with an unemployment rate of 5.8%. Over the past decade, inflation has typically been 23% and the base interest rate 56%. The service sector of the economy, including tourism, education and financial services, constitutes 69% of GDP. Rich in natural resources, Australia is a major exporter of agricultural products, particularly wheat and wool, minerals such as iron-ore and gold, and energy in the forms of liqufied natural gas and coal. Australia has a labour force of about ten million people. In the past decade, one of the most significant sectoral trends experienced by the economy has been the growth (in relative terms) of the mining sector (including petroleum). In terms of contribution to GDP, this sector grew from around 4.5% in 1993-94, to almost 8% in 2006-07. Growth in the services sector has also grown considerably, with property and business services in particular growing from 10% to 14.5% of GDP over the same period, making it the largest single component of GDP (in sectoral terms). This growth has largely been at the expense of the manufacturing sector, which in 2006-07 accounted for around 12% of GDP.

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A decade earlier, it was the largest sector in the economy, accounting for just over 15% of GDP.

Financial Year : July 1 - June 30 Currency : Australian Dollar Exchange Rate: Symbol : A$ / AUD

1USD = 1.12614 AUD (1AUD = 0.887989 USD 1AUD = 41.3542 INR (As on 28.12,2009)

Budget:

Revenues: USD 350 Billion

Expenditure: USD 332 Billion (2008)

Recent economic indicators: College GDP (US$bn) (current prices): GDP PPP (US$bn) : GDP per capita (US$): GDP per capita PPP (US$) : Real GDP growth (% change): Goods & services exports (% GDP): Inflation (% change yoy): 2004 640.6 636.4 31,629 31,422 3.2 18.1 2.6 2005 713.9 672.5 34,749 32,736 3.1 19.4 2.8 2006 756.4 714.2 36,238 34,213 2.6 20.9 3.3 2007 912.5 764.3 42,967 35,990 4.2 20 3 2008 1,013.10 799.1 46,806 36,918 2.3 23.4 3.7
Data from the ABS

2009 920 817.5 41,982 37,302 0.7 21.3 1.6

GDP COMPOSITION BY SECTOR 2008

Agriculture Industry Serevice

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Public Debt: Investment (gross): Unemployment rate:

13.9% of GDP in 2008 17.4% of GDP in 2007 28.7% of GDP (2008) 5.8% (2009) 4.2% (2008) 4.4% (2007) 3% (2008) $820.4 billion (Dec 2007)

Industrial production growth rate: Debt - external:

$770.3 billion (Dec 2008)

Current account balance (US$m): 2004 -39,204 (%of GDP) -6.1 2005 -40,922 -5.7 2006 -39,967 -5.3 2007 -57,576 -6.3 2008 -46,728 -4.6 2009 -29,890 -3.2

In trade terms, the Australian economy has had persistently large current account deficits for more than 50 years. One single factor that undermines balance of payments is Australia's narrow export base. Since there isnt enough funds available within the domestic economy, the private sector is forced to borrow funds from overseas. Main Exports - commodities: Coal, Iron Ore, Gold, Meat, Wool, Alumina, Wheat, Machinery And Transport Equipment Main Imports - commodities: Machinery And Transport Equipment, Computers And Office Machines, Telecommunication Equipment And Parts; Crude Oil And Petroleum Products Largest trading partners : Japan, China, United States of America, Republic of Korea, Singapore and New Zealand

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Diploma in International Business Management (Batch # XXIX)

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Diploma in International Business Management (Batch # XXIX)

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AUSTRALIA CH 3 Government :: Political & Legal

Government type: Federal parliamentary democracy and a Commonwealth realm Administrative divisions: 6 states and 2 territories*; Australian Capital Territory*, New South Wales, Northern Territory*, Queensland, South Australia, Tasmania, Victoria, Western Australia Dependent areas: Ashmore and Cartier Islands, Christmas Island, Cocos (Keeling) Islands, Coral Sea Islands, Heard Island and McDonald Islands, Macquarie Island, Norfolk Island Independence: 1 January 1901 (federation of UK colonies) National holiday: Australia Day, 26 January (1788); ANZAC Day (commemorated as the anniversary of the landing of troops of the Australian and New Zealand Army Corps during World War I at Gallipoli, Turkey), 25 April (1915) Constitution: 9 July 1900; effective 1 January 1901 Suffrage: 18 years of age; universal and compulsory.

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LEGAL SYSTME

Based on English common law; accepts compulsory ICJ jurisdiction with reservations The Politics of Australia take place within the framework of parliamentary democracy. Australia is a federation and a constitutional monarchy, and Australians elect state and territory legislatures based on the Westminster tradition, as well as a bicameral Parliament of Australia, which is a hybrid of Westminster practices with the uniquely federalist element of the Australian Senate.

Executive branch: Chief Of State: Queen of Australia ELIZABETH II (since 6 February 1952); represented by Governor General Quentin BRYCE (since 5 September 2008) Head Of Government: Prime Minister Kevin RUDD (since 3 December 2007); Deputy Prime Minister Julia GILLARD (since 3 December 2007) Cabinet: Prime minister nominates, from among members of Parliament, candidates who are subsequently sworn in by the governor general to serve as government ministers Elections: The monarch is hereditary; governor general appointed by the monarch on the recommendation of the prime minister; following legislative elections, the leader of the majority party or leader of a majority coalition is sworn in as prime minister by the governor general

Diploma in International Business Management (Batch # XXIX)

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Legislative Branch: The Parliament of the Commonwealth of Australia consists of two chambers:

The House of Representatives has 150 members, elected for a three year term in single-seat constituencies with a system of alternative vote known as full preferential voting.

The Senate has 76 members, elected through a preferential system in 12-seat state constituencies and two-seat territorial constituencies with a system of single transferable vote. Electors choose territorial senators for a three-year term. The state senators serve for a six-year term, with half of the seats renewed every three years.

At the national level, elections are held at least once every three years. The Prime Minister can advise the Governor-General to call an election for the House of Representatives at any time, but Senate elections can only be held within certain periods prescribed in the Constitution. The last general election was in November 2007. Elections: Senate Last held 24 November 2007 (next to be held no later than 2010); House of Representatives - last held 24 November 2007 (next to be called no later than 2010)

Judicial Branch: Law System: The common law system, as developed in the United Kingdom, forms the basis of Australian jurisprudence The Australian Constitution of 1901 established a federal system of government, under which powers are distributed between the federal government and the states. It defined exclusive powers (investing the federal government with the exclusive power to make laws on matters such as trade and commerce, taxation, defence, external affairs, and immigration and citizenship) and concurrent powers (where both tiers of government are able to enact laws). The states and territories have independent legislative power in all Diploma in International Business Management (Batch # XXIX) Snehal Soni

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matters not specifically assigned to the federal government. Where there is any inconsistency between federal and state or territory laws, federal laws prevail. Federal laws apply to the whole of Australia. Key Facts

All peopleAustralians and non-Australians alikeare treated equally before the law. The Australian legal system is based on the concept of the rule of law. In all cases, defendants are considered to be innocent until proven guilty beyond all reasonable doubt. Laws are made by the federal and state parliaments, while an independent judiciary interprets and applies them. People who cannot afford legal representation may be given legal aid, subject to a means test and certain other conditions. Independent Australian agencies safeguard legal and administrative rights.

Diploma in International Business Management (Batch # XXIX)

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POLITICS
Political Parties in Aurstalia.

Major parties:

The Australian Labor Party (ALP) is a social democratic party founded by the Australian labour movement and broadly represents the urban working class, although it increasingly has a base of middle class support. The Australian Labor Party currently governs.

The Liberal Party is a party of the centre-right which broadly represents business, the suburban middle classes and many rural people. Its junior coalition partner is the National Party of Australia, formerly the Country Party and now known for electoral purposes as "The Nationals", a conservative party which represents rural interests. Their NT counterpart is the Country Liberal Party. They are collectively known as the Liberal/National coalition.

Minor parties include:

The Australian Greens a green and socially progressive party. The Family First Party, a socially conservative party.

Political pressure groups and leaders: Other: business groups; environmental groups; social groups; trade unions

Diploma in International Business Management (Batch # XXIX)

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Current Politics Scenario: The Australian Labor Party came to power in the November 2007 election, ending John Howard's 11 years in office as Prime Minister and head of Liberal/National coalition government. The Labor Party now holds a majority in the House of Representatives. The Senate, however, reverted to its prior state, with the balance of power being held by minor parties. Election results: Senate Percent of vote by party - NA; seats by party - Liberal Party-National Party coalition 37, Australian Labor Party 32, Australian Greens 5, Family First Party 1, independent 1; House of Representatives - percent of vote by party - NA; seats by party - Australian Labor Party 83, Liberal Party 55, National Party 10, independents 2.

Prime Minister Deputy Prime Minister Minister for Foreign Affairs Minister for Defence (since 2009) Minister for Trade

Kevin Rudd Julia Gillard Stephen Smith John Faulkner Simon Crean

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CH 4 : LOGISTICS AND CUSTOMS DEPARTMENT IN AUSTRALIA.

Logics: Airports: Heliports: 464 (2009) 1 (2009)

Railways: total: 37,855 km Waterways: 2,000 km Ports and terminals: Brisbane, Dampier, Fremantle, Gladstone, Hay Point, Melbourne, Newcastle, Port Hedland, Port Kembla, Port Walcott, Sydney Shipping to Australia Internal freight transport rates are very high as distances between major marketing centres in Australia are considerable. It is recommend that goods are shipped directly to the nearest port. Various Shipping lines and Air Lines offers today service of Logistics to any of Australian Port. The total transit time taken to reach any port of Australia from Bombay is about 32 to 37 days and the air shipment reaches about 4 to 7 days depends upon the services if different Lines.

Tariff customs duties All goods imported into Australia require customs clearance. Australia adopts the

Harmonised Tariff System for classifying goods. The tariff system provides for both general and preferential rates of duty. The preferential rate applies to goods of a developing country origin entering under all dutiable classifications of the Customs tariff. The preferential rate is mostly set at five percentage points below the General rate , or at Free when the General rate is 5 percent or less. Australia is a non-quota country and products are only subject to import duties.

Diploma in International Business Management (Batch # XXIX)

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Commodities from Forum Island Countries are free of import duties unless specified. India falls within the "DCS" category. A few other countries included in the DCS list are Brazil, China PR, Korea DPR, Malaysia, Indonesia, Mexico, Pakistan and Sri Lanka. Countries like Afghanistan, Bangladesh, Bhutan and Zambia still fall under the "DC" classification of Developing Countries. The category designated as "DCS" has a rate of duty which applies to countries within this new sub-group among the developing countries . The rate of duty is slightly higher than applied to "DC" countries. The general rate of duties are applicable for DCT countries Hong Kong, Singapore, Korea (ROK), and Taiwan unless otherwise specified. NZ, PNG, FI and DC rates are free, unless otherwise specified The rate applicable for duty on chemicals is standard 5%.

Diploma in International Business Management (Batch # XXIX)

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CH 5 : BUSINESS VISA RULES

Business Visa is issued to the following categories:

Executives, managers and specialists employed by a company operating in Australia.

Personnel from foreign companies which are seeking to establish a branch there or participate in joint ventures. They are also available to employees fulfilling a contract awarded to a foreign company.

Independent executives seeking to join an existing business, or establish their own in Australia. In order to qualify for a temporary business visa in this category, you must have personal net assets of at least $250,000, and a genuine commitment (either as owner or part owner) to a business which is of benefit to Australia.

Personnel sponsored by an Australian business.

Note :- The processing time varies depending on the person's circumstances. 3 to 6 months is the estimated time taken. Sponsored applications are given priority. Established business in visa may take 5 to 10 months.

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CH 6 : AUSTRALIA-INDIA FTA FEASIBILITY

Overview Australias bilateral relationship with India has increased in significance in recent years. Cooperation between India and Australia spans a range of areas. Notable agreements include a Trade and Economic Framework as well as Memoranda of Understanding on Defense Cooperation, Customs, Information and Communications Technology, Combating International Terrorism and Biotechnology, a bilateral Air Services Agreement, and the Scientific Collaboration Fund. Given this rapidly expanding bilateral trade and economic relationship, Australia and India have agreed to undertake a joint feasibility study of the merits of a free trade agreement (FTA). An FTA between Australia and India would provide benefits to both countries. Australia is a reliable supplier and would provide India with inputs for its growing manufacturing sector. Both countries would benefit from an FTA, including from increased investment flows, not just from each other, but from other sources as a result of a comprehensive FTA.In August 2007 Australia and India commenced a joint feasibility study on the merits of a free trade agreement (FTA) between the two countries. The officials-level Joint Study Group (JSG) has met twice in New Delhi (April and August 2008) and in Melbourne (May 2008).

Diploma in International Business Management (Batch # XXIX)

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CH 7 MAJOR PLAYERS OF AUSTRALIAN SO PIGMENT INDUSTRY

The below are the major player of Australian economy Paint, Plastic, Ink Industry. Orica Limited PPG Industries Australia Pty Ltd Wattyl Limited Akzo Nobel Coatings (Holdings) Pty Limited Flint Group Australia Pty Ltd DIC Australia Pty Limited Delta Group Holdings Pty Limited PPG Industries Australia Pty Ltd

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PART V Primary Research Data Analysis

Source of the Synthetic Organic Pigments: Domestic Imported 7 12

Pigments Purchase Source

Domestic Imported

37%

63%

If importation of Synthetic Organic Pigments, From which source they import: India China Europe USA Other 2 5 3 1 1
India

Imported Source
China 8% 8% Europe USA 17% Other

25%

42%

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For which purpose they are buying/importing SO Pigments Trading Domestically/Internationally As a basic raw material 7 12

Purpose of Buying
Trading Domestically/Internationally As a basic raw material 37%

63%

Appliication for which they are using SO Pigments Paint & Coatings Plastic Master Batch Printing Ink Textile Rubber Leather 12 10 7 3 3 1

Preference on the Basis of Application

Leather Rubber Textile Printing Ink Plastic Master Paint & Coatings 1 3 3 7 10 12

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Views regarding Marketing Essentials: The participants purchasing domestically or internationally have given different replies based on which each essentials overviewed based on their purchasing source as below. For the critters o o o o Quality Price Logistics Overall Supply Chain Management

Buying Domestically: As per the distance is small comparing if they are importing and the Buyer and Seller are from same culture the relation between them is strong. Transportation time is short so quick procurement is possible on receiving short time for supply. The response for quality received good.

From China: Today China is major source of all types of basic chemicals being the cheaper than the all over the world which is also seen from economic diagrams of trade of Australia with the world. Here China is also major of all the source from the world for Australia. The response of Price received very good in four cases out of five, the rest was good, Regarding quality, the response received for this criteria was good in four and average in one. Logistic and Supply Chain Management hold good in each case.

From Europe: Being in the possession of one of the European Country Grate Britain till 19th century, Australia has deep relationship with Europe for trading. The qulity standard are very good from such part of the world. The same response received for Logistics and Supply Chain Management. But here very high from this part of the world.

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From UAS: The price of SO Pigment imported from USA is relatively average for Australian Importer. The Quality is good and Logistics and Supply Chain Management is very well managed from USA Exporters.

From India: The price is good in one case and average in another one. Quality consistence does not maintained by the Indian Suppliers. Logistic has the same scenario and Overall Supply Chain Management is the average from Indian suppliers.

Other Source: One reply received for the Import source towards Japan. Japanese Suppliers are good in case of Price, very good for quality and also same in the Logistics and Supply Chain Management.

If importing Government restriction for the same: Supportive Normal Strict 3 16 0

Govt. Regulations towards Imports of S.O. Pigments

Supportive Normal 0% 16% Strict

84%

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Annual consumption of the respective user of SO Pigments 100 to 200 Kgs 200 to 500 Kgs 500 to 1000 Kgs 1 MT to 2 MT 2 MT to 5 MT More than 5MT 0 3 3 4 7 2

S.O. Pigment Annual Consumption

100 to 200 Kgs 1 MT to 2 MT 200 to 500 Kgs 2 MT to 5 MT 10% 0% 16% 16% 500 to 1000 Kgs More than 5MT

37% 21%

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Which color they use of SO Pigments: Green Blue Red Yellow Orange Violet Black Brown 13 10 7 6 4 3 0 0

Preference on the Basis of Color Type

Brown Black Voilet Orange Yellow Red Blue Green 0 0 3 4 6 7 10 13

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PART VI SUGGESTIONS FROM INDIAN CONSULATE AT SYDNES FOR THE INDIAN EXPORTERS
Professional Approach It has been observed that most of the Indian companies send incomplete details while approaching Australian importers. It is advised that companies should always attach their company profile, supported with brochure and literature, illustrating the product/products for export. Experience in exporting to other countries if any should invariably be mentioned along with the popularity/growing demand of the product/products in overseas markets. Prices of product/products and terms of trade should also be included, as required.

Financial Viability Indian companies are advised to observe the standard safeguards before entering into a deal with local companies, At the same time, it could be mentioned that means of finding out the financial standing of the company on payment basis and also the services of lawyers and debt collectors may be availed if the need arises.

Quality and Packaging Australian market is highly developed, sophisticated and competitive. Success in business can be achieved by offering quality products and adherence to the delivery commitments etc. We have generally found that even where a product is of international quality, lack of packaging to international standards and nonobservance of the labelling requirements leads to rejection of the product e.g. garments should have labelling indicating the maintenance and handling instructions. Likewise in case of food products, Australia Quarantine and Information

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Service (AQIS) requires details of ingredients, quantities, weight, expiry date, etc. to avoid confiscation of products. Foreign Competition Competition for Indian companies in Australia is primarily from Chinese products. The Indian company may, therefore, evaluate its position vis-a-vis a Chinese company, in respect of cost and related items before probing the local market. The Australian Market The market is very competitive. Its economic activity is focused in the major Eastern States where majority of the population lives New South Wales, Victoria and

Queensland. Large business agencies and distributors are located mostly in Sydney and Melbourne.

Import Channels Major retail companies have their own Buyers /buying organizations in overseas

markets either through overseas buying offices, purchasing agents or travelling buyers. Some retailers deal directly with overseas suppliers, especially in some highly competitive consumer lines. Agents operate either on a commission basis or as importers. Importers and Merchants / Wholesalers import and also sell to smaller

wholesalers and retailers.

Importers' Attitudes Importers are very conscious of quality and price. They are extremely concerned

about delivery on time. They expect timely delivery especially for seasonal products. Orders may be smaller due to the size of the market. This may be due to there being many players in the market trying to establish their own niche. Established importers do not quickly change to new overseas suppliers. But would consider products or designs that would interest them. In other words an exporter may Diploma in International Business Management (Batch # XXIX) Snehal Soni

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have to show a good reason for change like innovative designs, colors or high quality. Price may not be the only attraction! Importers may place trial orders to ensure suppliers perform to standards. The importers expect prompt replies to their queries. It would be professional etiquette to reply immediately whether the exporter is in a position to take an order / would

take some time /or cannot do so due to other commitments. However large or small the exporter organisation is potential importers expect a reply. Australian importers have often complained to this Consulate in this regard. They always are at a loss to know whether their mail has reached the right company or person. The quickest means of communication is the fax or E-mail.

Image in the Market The quality of Indian products has improved a lot as accepted by this market. The Made in India brand has made it in the textiles sector and to some extent in the engineering goods sector. However there is yet a need to maintain the quality for each and every consignment. The perception or otherwise of some importers is that Indian suppliers are at pains to impress the first time and then send poor quality goods after receiving subsequent orders. Australian market being highly competitive, most importers know their competitors and learn of problems being experienced with products from particular countries/ companies. Some of the typical complaints received against Indian manufacturers / exporters are : Low quality of products, Shortages in supplies and delayed deliveries. Indian exporters do not accept to take back rejects etc, It is also felt that invariably Indian exporters are unable to or unwilling to settle commercial claims promptly and amicably. Even after acceptance of claims, some Indian parties attempt to settle the claim by offering to adjust the agreed amount against future orders. Australian importers, on the other hand, are of the view that their claims should be settled quickly and refunds sent to them rather than use defective supplies as a leverage for future orders.

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Quality being of prime importance, accreditation from relevant authorities or importers overseas (USA, UK, Germany and other European countries.) may help in concluding business contracts. Exporters should aim at a long term relationship with buyers. It is advisable to approach the importers with a colorful brochure, where possible, stating the company profile and illustrating the product/ products for export and stating experience in exporting to other countries. Prices of various products and terms of trade may also be included.

Prices Indian Exporters visiting Australia should note that the relatively high retail prices in Australia do not necessarily reflect high FOB prices. The prices reflect the cost of doing business in the country.

Buying Periods The Australian seasons are the reverse of the Northern Hemisphere viz: summer is from December to February and winter is from June to August.

Quotations, Payment Terms The preferred form of a quotation is F.O.B Terms of payment like Documents on Acceptance, Documents against Payment, or Telegraph transfers are preferred to payment by Letter of Credit. However, first time exporters and others would be

advised to use the safest terms of payment. Standard quoting practices used in world trade are acceptable. Prices will usually be required in Australian dollars or US dollars.

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Standards & Quarantine Standards are usually related to health and safety. The standards, in certain sectors, are often compulsory and new products must be approved by the relevant authorities before they can be sold. Standards and codes for a range of goods and services can be obtained through the importers or Standards Australia. Australian health requirements are strict in the food area, the purity of food sold to the consumer, covers not only the ingredients but also the type of packaging used. The Australian Quarantine and Inspection service (AQIS) monitors the imports. The

Consulate receives notice from AQIS if products from India are found contaminated or packaged / labeled improperly. Quarantine regulations in Australia are very strict.. All imported plants living or dead, or parts of plants, etc as well as all articles made of wood bamboo etc are subjected to quarantine.

Packaging and Labeling Packaging of consumer products for sale to retailers in Australia must also meet both health and safety regulations and generally conform to the requirements of developed country markets around the world. Importers or agents generally will be able to advise the standards to be followed. However the exporters have to ensure that goods are correctly marked while labeling e.g. weight (metric), country of origin, manufacturer, preparation, contents, copyright etc. Description should be in English and in legible characters. Packing and labeling must not only conform to importers' requirements but also be able to withstand handling and facilitate transport of the goods.

Promotion and Advertising Indian Exporters could make an initial visit to assess the market. Exporters can participate in Buyer Seller meets organized by their respective Export Promotion Diploma in International Business Management (Batch # XXIX) Snehal Soni

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Councils. They could participate in International Trade Fairs in Australia either directly or through the Indian Trade Promotion Organization. Media advertising in Australia can be very expensive. Those exporters intending to advertise in Australia may employ advertising agencies for specialist advice. These agencies can help in arranging for advertisements on a chargeable basis. Exporters could also contact magazines and newspapers directly. Payment is generally

required to be made before the advertisement is run. Indian exporters can advertise their company on the Internet through the website of their respective Export promotion councils.

Entry of Goods for Promotion Australia is a party to the Customs Co-operation Council Nomenclature Convention, concerning facilities for the importation of goods for display or use at fairs, exhibitions, meetings or similar events. Australia is also a party to the Customs Convention on the ATA Carnet which is an International Customs Document issued by certain Chamber of Commerce & Industry in the country of origin. Indian exporters may contact for advice FICCI (Federation of Indian Chambers of Commerce and Industry) or Chambers of Commerce & Industry in their State - authorized by FICCI. The Australian Customs Service declares such fairs, exhibitions or meetings as an event. The term "event" could include a trade, industrial, agricultural or crafts exhibition, fair or similar show or display; but excludes exhibitions organised with a view to the sale of foreign goods at the event. Samples of commercial value may be imported temporarily

without duty when covered by an ATA Carnet.

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S W O T ANALYSIS
Strength: The quality of Indian products has improved a lot as accepted by this market. And being one of the major source of Pigment Industry, India is enjoying 4th rank among the suppliers of SO Pigment of Australia in 2008. Weakness: Indian Companies are not consistent in the Quality matters and also in Logistic & Supply Chain Management, which results into loss of good business of Australia which has high quality consciousness. Further, Indian industry is facing high level of competition from Chinese Industry by their law prices.

Opportunity: Due to rise in the growth rate of bilateral trade between India and Australia. So both countries have agreed to undertake a joint feasibility study of the merits of a free trade agreement. The time when such FTA come into force the potentials of business will further increase.

Threats: From several months the Indian origin people have been attacked by some of the Australian citizen and more to this the Australian Government has not taken reasonable steps to avoid such situation which has brought some bitterness in the relationship of both the countries. This attitude of Australian people may harm the business of both the countries with each other

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Survey Questionnaire
Research Topic:
Supplier Services
(To mark Tick on the appropriate response:- The check boxes can be filled in by double-clicking on the box and thenselecting checked in Defaulted Value and OK as demonstrated below)

Customers Perception towards Synthetic Organic Pigment Market and their

1. From which source you buy the Synthetic Organic Pigments Domestic Imported If you are Importing Synthetic Organic Pigments, please tick from the below India Other, specify 2. For which purpose you buy Synthetic Organic Pigments? Trading it Domestically / Internationally. Use in your production process as the basic Raw Material. 3. If you use Synthetic Organic Pigments as Raw Material / Trading / Agent please tick the end application. Paint & Coating Printing Ink Plastic Master Batc Textile Leather Rubber Other, specify China European USA

4. Kindly rate the criteria related to the purchase of Synthetic Organic Pigment. Very Good Good Avg. Qaulity Any Recommendation :Price Any Recommendation :Logistics Any Recommendation :Overall Supply Chain Management Any Recommendation :-

Bad

Very Bad

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5. If you are importing, please rate the Govt. Policy for importation of Synthetic Organic Pigments. Supportive (Liberal) Normal Strict If other, Please specify: Please Specify the Custom Duty Rate: %

6. Your annual Consumption of Synthetic Organic Pigments. 100 to 200 kgs 200 to 500 kgs 500 to 1000 kgs 2mt to 5mt More than 5mt

1mt to 2mt

7. Which of following Synthetic Organic Pigment you use frequentlyYellow Orange Red Blue Green Brown

Violet Black

8. Your view toward the possibilities for enhancement the future Trade between India and Australia.

9. If you have any view / recommendation / thoughts / comments -

Thanking you for your valuable comments & support.

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BIBLIOGRAPHY Consulate General of India at Sydney, Australia www.commerce.nic.in (Department of Commerce, India) www.intracen.org (Joint Agency of WTO and UN) www.dfat.gov.au (Department of Foreign Trade And Affairs Australia) www.indianindustry.com www.trademap.org/countrymap www.abs.gov.au (Australian Bureau of Statistics) www.ibisworld.com.au www.wikipedia.com www.britannica.com

Diploma in International Business Management (Batch # XXIX)

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