INTERNATIONAL BUSINESS

Country: Russia Product: TEA Case: Economy of Kenya

Presented To: Prof. C. S. Balasubramaniam

Presented by: Name Chintamani Dhamapurkar Siddhi Joshi Aswathi Nair Pranit Nikkam Mansi Palve Jerin Mathew Roll. No. 13 27 35 36 38 79

RUSSIA

Rossiya

The Map of RUSSIA

About RUSSIA

Government: Federal Semi-Presidential Constitutional Republic Language: Russian Currency: Russian Ruble Population: 142,517,670 Age Structure: Male: 35.6 yrs; Female: 42.1 yrs Population growth rate: -0.01% Birth rate: 12.3 births/1,000 population Death rate: 14.1 deaths/1,000 population Gender ration: 0.85 male(s)/female Literacy Rate: Total population: 99.6% Male: 99.7% Female: 99.5%

RUSSIAN MARKET OVERVIEW

140 Million consumers Real GDP growth : 8.1% to $ 1.3 trillion Remains relatively dependent on oil, gas, natural resources. Government attempting to build manufacturing base Federal budget surplus of $ 72 billion Sovereign credit rating; investment grade Foreign currency and gold reserves : $ 400 billion

Industrial View
1.

Industrial Centres
MAGNITOGORSK SAMARA IVANOVO

2. 3. 4. 5.

SEZs Airports Sea Ports

Statistics

OVERVIEW OF INDIA-RUSSIA ECONOMIC COOPERATION

Overview Trade

Institutional Framework for Bilateral Economic Cooperation

Product: TEA

.Why go Global
To increase sales, revenues and profits To grow the companys global market share To achieve greater economies of scale To reduce costs To reduce risk To establish a foothold in a promising market To learn from a leading market To build a Global brand

Global Outlook for Tea (2012)

Market size in terms of retail value: $ 23,323 millions Market size in terms of retail volume: 1,765 million kg Growth rate in terms of retail value: 4.5% Growth rate in terms of retail volume: 3.5% Per capita consumption: 0.3kg Average retail price: $ 13.2per kg Growth in retail price: 0.9% Major producers of tea: China, India, Kenya and Sri Lanka Major importers of tea: Russia, UK, US, Pakistan and Japan

Current Statistics and Trends in the Teas Industry (2012)

Tight supply due to projected decrease in Kenyan tea production. Continuation of upward trend in world tea prices.(FAO report) FAO composite price, (a world indicator price for commodities) has increased 6.5% to Us $1.95 per kg in 2011. For the next 10years to 2021

Why RUSSIA?

Suring economy

Wealthier Consumers
Government Deals in Russia 2010-2011

Reasons for Indian Tea Companies to enter the Russian market

Grow revenues Lower Fixed Costs per unit Higher prices + lower costs = greater margins Mature home market and/or excess capacity Global competition Gain access to a distribution network Broaden existing product portfolio Global branding, exposure, and geographic reach Diversify business risks

Conclusion

Case Study: Economy of Kenya

Economic Problems
Rising external debt Declining currency Low per capita income Troublesome international financial climate