ARTICLE PUBLISHED IN WWW.MAURIMAR.COM

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INDIA –MAURITANIA TRADE RELATIONS


Long ago the centuries before, Indian traders traveled across the African continents to sell their hand made fabrics and exotic spices. They enjoyed fruitful business with African countries. The business relations between India and Mauritania also started like this and till continues to grow rapidly in year by year.

Some of the very ancient products like Mysore sandal soap, henna, perfumes & cotton fabrics from India still very popular with Mauritanians.

India use Mauritania as a gateway for entry of Indian products in west and central African markets. Textiles, pharmaceuticals cosmetics, steel and Automotive are hugely exported to Mauritania. Pharmacy, IT hardware and Software industries have good potentials for Indian Exporters. Indian companies like ONGC, BPCL, IBP etc. looking to invest in petroleum and gas sector in Mauritania. Some Indian companies also willing to participate in the infrastructure and Telecommunications sectors.

Interestingly, although, Mauritania’s trade interactions with India have been very friendly, no bilateral high level visits happened so far. No commerce ministers or presidents visited each others country.

But in recent years, Some of Mauritanian Businessmen had set up own offices in India to help fellow Mauritanians to buy quality products from India. Also many Indians travel across the Mauritania to sell their products. Also few work in Mauritanian Factories.

Mauritania’s Main Imports from India are Cotton textiles, Pharmaceuticals, plastics and metal products like steel, biscuits, cosmetics, machineries and auto spares.

Mauritania’s main Exports to India: Metal scraps.

We will look in to depth of this in next issues like trade statistics of cotton textiles & other products.

INDIA –MAURITANIA TRADE RELATIONS

In textile business

Mauritania’s affection in cotton fabrics never fades. In fact it rises year by year.

From the year 2003-04 to 2007-08 Textile imports are growth rate is 45%

Here goes the statistical report from India:

		2003-2004	2004-2005	2005-2006	2006-2007	2007-2008
Cotton & Textiles		13.45	15.66	15.28	11.74	17.05
Growth %			16.43	-2.37	-23.16	45.19

• Values are in US Million Dollars.

Apart from the direct import to Mauritanian ports goods are arriving into the country from Dakar port also.

Approximately Mauritania has imported 7,518,000 meters of fabrics from India which includes dyed fabrics bleached fabrics and plain fabrics. Around 45 containers has been imported to this country on 2007-08.

Textile business in Mauritania had a slow down in 2006-07 but it swings back at the next year. Hopefully 2009 will be another best year for textile importers because of good growth expectations in Mauritania’s Economy. We wish all of them good luck.

-Suresh Aiyer

GLASS AND GLASS WARE - BUSINESS IN WEST AND NORTH AFRICA

Glass: an International commodity

Glass an accidental discovery, in an ancient kiln in the Mediterranean region, almost 3500 years ago, it is the apparently infinite flexibility of glass that has rapt and captured the imagination of mankind, ever since. After its discovery, glass was made into thin sheets, which were strong enough to be used as windows, and stronger to use in Automobiles, as power reflectors to use in solar panels etc., and recent days the use of Glass gone beyond the imaginations.

Glass is the most eco-friendly for packaging and Building material. Principal raw materials used in the manufacture of glass are silica sand, soda ash, calcite, dolomite, etc... The usage in developed countries is very high and developing countries also adopting Glass as a precious building material.

Imports of Glass & Glass Wares in Africa:

Africa is major destination for several minerals like tungsten, diamond and petrol. But, it fully depends on other countries for the end used products. 900 Million Populated African continent, still on growing process. Africa becomes major trade centre for china, India and other Asian countries. East & South Africa already attracted several investors and traders around the world. Lot of foreign companies opened their shops there. Apart from that, North and West Africa came to lime light of the international trade.

Major Glass Products Imports in Africa:

• Cast glass sheet, colored absorbent reflect Cast glass sheet, non-wired, clear Cast glass profiles


• Drawn glass sheet colored, absorbing, reflect, , clear
  


• Float glass etc sheets, absorbent or reflecting layer, colored throughout wired
  


• Safety glass (tempered) for vehicles, aircraft, etc), non-vehicle use


• Multiple-walled insulating units of glass • Glass-ceramic ware for table kitchen, etc
  


• Glass fibers, glass wool and articles
  

Float Glass and Safety Glass are major part of the imports in South Africa and other African countries.

Africa Imports – country wise:

South Africa is one of the biggest importers of Glass in Africa. 46% of the Import is consumed by South Africa itself from total Africa's Import. South Africa Construction Industry Glass usage in Building Industry increases 10-15% annually, Morocco and Algeria follows the trends.

Exports: Glass and Glass wares from India:

India is a Major Trade Partner for AFRICA. African continent is one of the biggest Importers from India. South Africa is one of the foremost Importers from India for glass and Glass ware products.

28% of the Export has been sent to South Africa and another 28% of exports to Nigeria.

Tanzania is another country becomes important destination for Glass products as their import volumes are 22%.

Algeria and Morocco follows as 10% & 8% in terms volume imports from India.


Tanzania’s GDP Growth was 7.3% in 2007 according UN statistics and The country’s expenditure is also growing around 8% annually, while construction industry growth rats is 8.7%.

South Africa’ GDP Growth was 5.1% in 2007 and Expenditure growth rate is 10.4% in imports. Economic Activity - Rate of Growth in construction is 18.1%

Export statistics: India-Africa





Glass exporters are mainly concentrating in East & South Africa, where the trade potential is high. Also, they can keep an eye on other part of Africa in North and West African countries where the economy is booming. Africa is changing and growing in the manner of International Trade. Construction Industry have long term growth prospectus and it will support Glass & Glass ware Exporters in near future.

Marketing Strategy: should be planned as per Company’s Trading policies.

Best wishes.... ssuressh@gmail.com

EXPORT MARKET PLANNING - PHARMA

MARKET RESEARCH / MARKET SIZE

Foreign Trade Data

HS code: 30 (Pharmaceutical products)
Selected Countries: Benin, Burkina Faso, Cape Verde, Côted'Ivoire,Gambia,Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, and Togo

Selected years: 2005, 2006, 2007

*Data not available for some countries for 2006 & 2007.

Top Importers	Trade Value
Côte d'Ivoire	$512,759,168
Senegal	$355,433,828
Mali	$135,609,231
Ghana	$115,328,987
Togo	$80,866,804
Other countries	$92,918,772
Total Import: $1,292,916,790

Top Import Partners
Importers	Trade Value
France	$732,079,005
India	$106,179,456
Belgium	$43,103,148
China	$28,175,963
Portugal	$27,700,687
Other partners	$263,160,145

Total Pharma exports to West African Countries from India on 2006-07 297.93 Million US$ 2007-08 267.55 Million US$

Total Exports to West and North Africa from India on Medical wadding, gauze, and dressings etc on 2007-08 (Apr-Dec) 202824 US $

Total Exports to West and North Africa from India on medical or surgical inst.

2006-07 17.48 million US$

2007-08(Apr-dec) 15.32 Million US$

Top Competitors: Worldwide competition comes from France, Belgium& China.

Top competitors from India: Cipla, Ranbaxy and Flamingo pharmaceuticals and

other players

Products

Human Medicines, injections, Medical devices, surgical instruments, Medical Equipments etc.,

Veterinary products, bolus, vitamins and boosters etc..,

West and North Africa’s Animal husbandry ration is 3:1 as per UN statistic. It will be good to enter into veterinary medicines market along with Medical device and surgical instruments business.

The competition in human medicines market is higher although that market is having high potential. As per statistics available it found that Medical devices and surgical market is growing rapidly. Since the company is manufacturing entire range of products in medical devices it will be easy to launch in the markets. The company has advantage of supplying any quantity in a minimum lead time.

Regulatory norms: some countries are non-regulated and some countries like Ghana, Gambia, Algeria, Morocco follows WHO norms and strictly follows the regulatory norms.

Pricing & Pricing strategy

West Africa & North Africa’s buying capacities not very high like EU. So product prices should to be maintained as Low to Medium range. This will help the company to position the products at the market.

Pricing strategy would change as per country to country and it would be discussed time to time as per company policies.

MARKET ENTRY/PROMOTION:

Initially the company can concentrate in two modes of entry as below:

• Direct sales to Distributors / hospitals
• Sales through overseas agencies on commission basis

PROMOTION:

Direct mails & Website: cheapest way to initiate international business

Trade Fairs: Participating international Trade fairs

Personal Visit to the markets: will build long term relationships with the customers

MARKET SHARE TARGET

These markets are growing at the rate of 5 -7% per year as per IMS health’s forecast. So, Comfortably Company’s target could be achieving 5-10% of the Market share within the period of three years.

Financial Resources & Marketing costs

Could be discussed with the financial dept.

Action Plan

Further Activities and responsibilities could be discussed with the company management to go-ahead with international business.

BEST OF LUCK FOR BETTER BUSINESS.. SURESH

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EXPORT MARKET PLANNING - PHARMA

EXPORT PLAN

Written by Suresh Aiyer ssuressh@gmail.com

SUMMARY

Manufacturers and exporters of Pharmaceuticals & medical devices and established on 1987. Products are exported to the Ministry of health in several countries through tenders. All Manufacturing units are having W.H.O. G.M.P. Certification and well equipped with latest equipments.

Objectives and Goals

Creating a global brand and capturing a considerable Market share in the International business.

Production Capacity

The company is having several and Job work plants so that for different sections the operational areas are spacious enough.

Market Selection

Target Markets: West African Countries and North African Countries

West African countries : Benin, Burkina Faso, Cape Verde, Cote d'Ivoire (Ivory Coast), Gambia, Ghana, Guinea (Conakry), Guinea(Bissau), Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, Togo.

North African Countries: Algeria, Egypt, Libya, Morocco, Tunisia, Western Sahara

MARKET RESEARCH / PRIMARY LEVEL:

West African Region: 300 million population in 2007, 480 million in 2030. And soon to be mainly urban region that will include 23 cities with more than one million inhabitants. 60 % of the population is under 25 years of age.

In 2005, the combined Gross Domestic Product (GDP) for ECOWAS was estimated at $139 billion Economies within the Community are at varying stages of development. Nigeria’s economy is larger than the combined GDP of all other West African countries, with a GDP of $78 billion. GDP average growth rate of 4.5% per year since 2000.

External trade represents ¾ of regional GDP. The European Union, the United States and China, are the three main trading partners.

Official languages: Arab, English, French, Portuguese.

Basmati rice

Global Scenario

¨ Global rice production in the recent years has fluctuated between 375-400 million tons. Consumption at around 410 million tons has been above production in the recent years.

¨ Global ending stocks, which had average above 120 million tons in the 1990's is currently getting reduced to 80 million tons.

¨ Asia is the biggest rice producer, accounting for 90% of the world's production and consumption of rice.

¨ Per capita rice consumption has declined in recent years in many of the wealthier rice-consuming countries, such as Japan, the Republic of Korea and Thailand, because rising incomes have enabled people to eat more varied diet.

¨ Although rice is widely grown and consumed, less than 6% of world production (20-24 million tons) is traded annually.

¨ Major importing nations of rice are West Asian countries and African countries. Apart from it countries like Japan, Malaysia, and Brazil also figures in top 10 importing country. In West Asia and Middle East Basmati rice is favorite and India is the major supplier in this category.

Indian Scenario

¨ India is the largest producer and exporter of basmati rice in the world. The annual production in the country hovers at around 10-15 lakh tons a year, of which around two-thirds is exported. The remaining is consumed, within the country.

¨ Basmati rice is grown exclusively in the northern part of Western Punjab (on both sides of the Indo-Pakistan border), Haryana and Western Uttar Pradesh. Haryana accounts for around 50% of the area under basmati rice in India, followed by Uttar Pradesh with 25% and Punjab with 18%.

World Trade

¨ In the international market rice is traded under two main categories such as Fragrant and Non Fragrant. In case of fragrant rice, India dominates the trade with its Basmati Rice followed by Pakistan.

¨ Basmati exports from India peak during March-April period and the November-December period.

¨ Gulf region is the major market for Indian basmati rice and inside Gulf, Saudi Arabia accounts for the major chunk of basmati imports from India.

¨ Pakistan is the sole competitor for India in the international market for basmati rice.

Rice Varieties from India

Ø Traditional White Basmati

Ø Sella Sharbathi White

Ø Sella Sharbathi Golden

Ø Non Basmati Rice / White & Brown

In recent years India has started exporting Non Basmati rice in view of large production and huge stockpile of the rice in the storage houses.

Seasons

Approximately 87 percent of total rice production is grown during the kharif /monsoon season, and is dependent on the monsoon rains. Planting was delayed in some areas and a large portion of the now-grain-filling crop is experiencing moisture stress.

Basmati Rice Cultivating Districts of India

Haryana and Punjab	Karnal, Panipat, Kurukshetra, Kaithal, Amritsar, Fatehgar, Gurudaspur, Hoshiarpur, Jalandhar, Patial, Sangrur, Ropnagar
Himachal Pradesh	Kangra, Solan, Una, Mandi, Sirmour,
Rajasthan	Bundi
Uttar Pradesh	Saharanpur, Muzaffar nagar, Pilibhit, Bareily, Bijnour, Moradabad, Jyotibaphule Nagar
Uttaranchal	Rampur, Raibereily, Sitapur, Udham Singh Nagar, Haridwar and Dehradoon
Jammu & Kashmir	In lesser quantities in some areas

Cultivation

India's annual rice production is around 85-90 million tons. However, it fell to 73 million tons due to monsoon rains. Annual consumption is around 85 million tons.

India also annually produces around 6-10 Lakh tons of Basmati rice, more than 70% of which is exported.

India's basmati rice and non-basmati rice exports are valued at US $800 million per annum.

Current Prices

ü Basmati : export price firmed up to $1,750 MT FOB

ü Non basmati: Exports Banned from India right now.

Future Trade prices

The government is thinking a temporary ban on or to Impose Export Duty on export of Basmati rice as part of its drive against inflation.

This would mean to affect on total rice exports as overseas sales of non-Basmati rice have already been stopped, as per news on 15^th April 2008.

Factors that Affects Rice Prices

¨ Changes in the minimum support prices (MSP) by the government also have immense impact on the prices.

¨ Temperature, rainfall and natural calamities like typhoon, floods, droughts and earthquake can also affect crops.

¨ Seasonal cycles are present in agriculture crops, Price tends to be lower as harvesting progresses and produce starts coming into the market. At the time of sowing and before harvesting price tends to rise in view of tight supply situation.

¨ Domestic demand and consumption guide