Indian spice industry and global scenario – A brief
• One of the largest spice producing and consuming country. • The Indian spice industry is booming with a substantial increase in exports over the past few years. • India accounts for nearly 45% and 30% in terms of volume and value in the world spice trade. • Indian spice industry provides quality spices at competitive prices. India faces stiff competition form China, Malaysia and Pakistan in terms of pricing of the products. • India is one of the prime exporters of pepper, chilies, turmeric, seed spices • Indian Government along with the Indian spice board is providing financial assistance to farmers, growers and spice producers and has also taken certain steps to ensure the availability of better quality spices, more hygienically processed spices in order to boost exports.
• ITC was formed on August 24, 1910 under the name Imperial Tobacco Company of India Limited. • ITC has a conglomerate business in agribusiness, greeting and gifting products (expressions), stationary products( classmate), lifestyle retailing business ( wills lifestyle), Information technology business ( ITC InfoTech), FMCG, hotels. • ITC is India’s largest exporter of Agri - products. • ITC is rated among the World's Best Big Companies.
Market trend of ITC Products
MISSION & VISION of ITC (Spices)
Sustain ITC’s spice position as one of India’s most valuable spice producing corporation through world class spice production, creating growing value for the Indian spices sector and company’s stakeholders.
To enhance the wealth generating capability of the ITC spices in a globalizing environment, delivering superior and sustainable stakeholder value.
Goals of ITC
• ITC’s goal is to help developing and transition economies to achieve sustainable human development through exports, with an emphasis on competitiveness. • export promotion of “green” products and services through advisory services and market analysis of sectors including organic food; spices and herbs; rubber; jute and coconut fibers; medicinal plants; sustainably produced wood products and artisanal products; and environmental services and technologies; • eco-trade information through specialized databases for eco-standards; new process and production requirements; green packaging; ecolabeling; prices of environmentally preferable products; and supply sources for environmentally supportive products, technologies and services.
Product Description (SPICES)
• Spices include black pepper, cardamom, chillies, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, garlic, curry powder, spice oils and oleoresins. • There are about 109 spices listed by International Organization for Standardization and Asia grows about 60 of these spices. • America is the largest consumer of spices by volume and value. U.S. is accounting a share of 33%.Western markets have a huge demand for Indian spices. • Spice market key player countries in North America is U.S.A, in Asia are India, China, and Japan, and in Europe are UK, Germany, France, Spain, and Italy. India is the fastest growing market.
Political – Growing Economy, Expanding trade, developing industries,
fostering pro-enterprise environment
Economical – Corruption free environment, highest per capita income in
ASEAN, active promotion of export of goods / services
Social – Work hard to fulfill their materialism desire, it positively increases
nation productivity and hence high purchasing power from customers, has compulsory education for primary school and English is primary language.
Technological – Comprehensive infrastructure setup, successive of ecommerce and B2C model relies on broadband service, electronic government era.
Singapore and other markets catered
Potential market (Why Singapore) ? • ITC aims to target the international market which has a good number of Indian population. • Curries and spices form an integral part of Singaporean cuisine. (food festivals)
Singapore and other markets catered
Demand for Spices in Singapore
• Curries and spices form an integral part of Singaporean cuisine. • Singapore comprises of a good number of Indian population which has a demand for Indian spices.
Spices imported by Singapore
Buying behavior of Singaporeans towards spices
• Women like to stick to traditional ways of doing things including cooking which demands variety of spices in it. • The household income of the Singaporeans is high as well as the people are well aware of the brands( ITC ltd) and therefore they prefer to buy best of the spices available.
The country organizes food festival, this is the period when the demand for spices is highest in the country.
Spices exported by ITC Ltd.
10% chilly ,pepper, tumeric 16%
coriander , cumin fennel fenugreek garlic, ginger, tamarrind
SWOT OF 2 COMPETITORS
Agrocrops Exim Ltd
• Lies in collecting domestic market information and sharing them transparently with our clients and business networks. Fall in the commodity prices as well as fall in the share of commodity market. Introduction of new technologies Increasing research in the agriculture field
• • •
• • • Uncertainty of the monsoons Though competition from foreign countries Threat from natural calamities like floods, droughts
Unique Organics LTD
Strengths: • Strong resources and network. • Quality service. • Standardization and gradation of products as per international standards. Weakness: • Forces affecting competitive advantage in Spices market. • Lack of training opportunities. Opportunities: • Government policies like the automatic approval for FDI up to 100%. • Introduction of new products. • To capture the market share as using the latest technology. Threats: • Since it is little more expensive than the other food items people may look back. • MNC’s: Multi-national companies are growing faster in the city due to which it may cause a threat to it.
Market Penetration Strategy
Trade Promotion Scheme • • Product and Packaging Development and Bar Coding Brand Promotion: Sending business Samples abroad Printing Promotional Literatures/Brochures Packaging Development and Bar Coding Distribution channel: • Wholesale middlemen • Import agent • Method of payment • Terms of sale Pricing: • Demand • Shipment Cost • Exchange rates
Open for Q&A