SHRI JAIRAMBHAI INSTITUTE OF BUSINESS MANAGEMENT AND

COMPUTER APPLICATIONS

MBA PROGRAMME

Affiliated to Gujarat Technological University

INSTITUTE CODE : 769

SUBJECT NAME : GLOBAL COUNTRY STUDY REPORT

SUBJECT CODE : 2830003

COUNTRY : AUSTRALIA

[SEMESTER 3 & 4 Combined Report / BATCH 2011-13]

DIVISION : A

INDEX

Group No GCSR Project Title / Industry selected Page No 1 The exporting opportunity of floriculture in

Australia 2

2 Gems & Jewellery Industry Analysis of Australia

12

3 Mining and minerals industry of Australia 40

4 Exploring emerging avenues of medical tourism in Ahmedabad with special focus on packages for patients from Australia

59

5 Textile industry in Australia 78

6 The Wine Industry in Australia 83

7 Organic farming industry of Australia 94

8 Analysis on education industry of Australia 109

9 Australian tourism- recommendations for the development of Gujarat tourism

118

10 Analysis of telecom industry of Australia 131

GROUP 1

A

Global Country Study & Report (GCR)

On

“THE EXPORTING OPPORTUNITY OF FLORICULTURE IN AUSTRALIA”

Submitted To:

Gujarat Technological University - Ahmedabad

In partial fulfillment of the requirement of the award for the degree of

Master of Business Administration

Under the guidance of

Dr.S.O Junare

Submitted By:

Rahul Thummar 117690592004

Nisha Sudhakar 117690592005

Mohanlal Purohit 117690592036

Nirzari Vihol 117690592056

Mayank Amin 117690592081

Raju Odedra 117690592103

BATCH 2011-13

MBA Semester III & IV

Shri Jairambhai Patel Institute of Business Management & Computer Applications

(Formerly known as NICM, Gandhinagar)

MBA PROGRAMME

Affiliated to Gujarat Technological University – Ahmedabad

Summary

Australia has majorly six states — New South Wales (NSW), Queensland (QLD), South

Australia. (SA), Tasmania (TAS), Victoria (VIC), and Western Australia (WA) — and two

major mainland territories — the Australian Capital Territory (ACT) and the Northern Territory

(NT). Australia is the 52nd most populous country in the world. Its population is concentrated

mainly in urban areas. The largest immigrant groups were those from the United Kingdom, New

Zealand, China, India, Italy, Vietnam, and Philippines. Australia‘s diverse culture and lifestyle

reflect its liberal democratic traditions and values, geographic closeness to the Asia–Pacific

region and the social and cultural influences of the millions of migrants who have settled in

Australia. The Australian national flag symbolises Australia‘s historical links with Britain and

Australia‘s location in the southern hemisphere (represented on the flag by stars). The larger

seven-pointed star represents the six original states and the territories of the Commonwealth.

Australia is the world’s smallest continent, but also its sixth-largest country, lying between the

Pacific and Indian Oceans in the Southern Hemisphere. Covering over 7.5m square kilometres of

land, it consists of the continental mainland plus the island of Tasmania and numerous other

smaller islands.

Australia’s population is over 21.5m and, while around 90% of Australia’s population is of

European ancestry, there has been significant immigration from Asia. English is the national

language and, while over 60% of Australians are Christian, it has no state religion.

The economy of Australia is one of the largest capitalist economies in the world with a GDP of

US$1.57 trillion Australia's total wealth is 6.4 trillion dollars. In 2012, it was the 13th largest

national economy by nominal GDP and the 17th-largest measured by PPP adjusted GDP, about

1.7% of the world economy. Australia is the 19th-largest importer and 19th-largest exporter.

Economy of Australia is quarterly forecasted by the Reserve Bank of Australia. Australian

National University also supplements Probabilistic interest rate setting project for the Australian

Economy, which is compiled by Shadow Board Members from the ANU academic staff.

High export prices for raw materials and agricultural products have boosted the economy in

recent years, particularly in mining states. GDP growth was estimated to be in 2013, 3.1 % in

2012, 2% in 2011 and 2.5% in 2010. The currency is the Australian dollar (AUD).

The major industries of Australian economy are—manufacturing, finance, ship building,

information and technology, agricultural, mining, insurance, aviation and telecommunications

industry.

Australia is a country which is largely dependent on its agricultural industries. Agriculture has

always been one of the primary sources of income for Australian people. Earlier agro products

accounted to about 80% of the total export goods but now it has gone down to 3% of the total

export. Despite the decline in agricultural exports, even now, about 370,000 people are engaged

in farming in Australia. Although the agricultural industry has witnessed a fall from its position

during the 1970’s, it still contributes largely towards Australian economy. Australia was one of

the largest exporters of beef and wool in the whole world and the third largest of wine and wheat

even in the year 2012.

Floriculture Overview

Floriculture Activity, defined for the purpose of this report as consisting of Cut Flowers

cultivated under controlled conditions mainly for export, is growing in the world at around 6-10

per cent per annum.

This is supported by the demand in the developed countries of Europe, America, Australia, Japan

and Singapore. The climatic condition in most of these countries does not favor year around

cultivation of these flowers and many of them import flowers from other countries.

The major importing countries of Cut Flowers are Netherlands, USA, Germany, France, UK,

Switzerland, Italy and Japan.

The major exporting countries include Netherlands, Columbia, Ecuador, Israel, Spain and Kenya.

Being a major market for floriculture, Netherlands both imports and re-exports the flowers. The

most important flower traded in the international market is still Rose; however, others like

Chrysanthemum, Carnation, Gerbera, Dahlia, Poinsettia, Orchids, Lily etc. are also marketed in

large quantities in these countries.

In spite of a long tradition of Agriculture and Floriculture, India’s share in the international

market for these flowers is negligible.

During the last ten years, taking advantage of the incentives offered by the Government, a

number of Floriculture units were established in India for producing and exporting flowers to the

developed countries.

Most of them were located near Mumbai, Bangalore and Delhi and obtained the technical know-

how from Dutch and Israeli Consultants. Almost all of them were capital intensive and made

large investments in greenhouse and other infrastructure. Several of them are at present non-

working.

The major reasons for their failure were lack of experience, inadequate research support,

inadequate market knowledge and infrastructural and procedural problems.

Those who have survived the initial difficulties and are working, have increased the export of

Floricultural products of India and enabled the country to become, although still small, an

important player in the world market.

They have also diversified their exports and, besides Europe, have reached to the countries of

Singapore, Japan and Australia. Moreover, there is also an increasing tendency of the Indian

growers to directly send flowers to the European countries rather than through Netherlands. In

spite of this achievement, the present health of the floriculture units is not exactly sound and

many of them are facing both routine problems as also long term financial and marketing

difficulties.

To enable these units to function more efficiently and competitively and to increase the volume

of India’s exports, it is necessary to orient this activity entirely from a new angle.

The first and theforemost policy change dictated by the past experience is to treat the entire

floriculture activity, whether it is catering to local demand or to the international demand, as an

agricultural activity and not as an industry.

The only difference between Agriculture and Floriculture is that the latter uses high technology

like poly-houses and refrigeration.

But quite soon, the technological inputs in the entire Agricultural activities will have to be

upgraded and modernized on more scientific lines. By declaring Floriculture as Agriculture, we

will not only take a logical step, but also we will ensure it certain benefits like income tax relief

and will free the growers from many procedural hassles and unnecessary regulatory provisions.

The second most important step will be to encourage a "consortium" approach among the units

for branding, grading, packaging, transporting, quality control, supply assurance, market

development, market promotion, and research and development.

For this purpose, it is necessary to encourage some of the successful and experienced

entrepreneurs to take a lead in forming such consortia.

They can also develop satellite farms and operate the existing closed or semi-closed units with a

suitable waiver or postponement of their liabilities.

This would also necessitate the relief from Land Ceilings Act.

The other measures include more focused attention on the locations near Mumbai, Bangalore

infrastructure (which is extremely critical for Floriculture)reduction in air freight charges,

reduction in interest rates by Banking institutions, waiver of excise duties on domestic sales and

very focussed research on key areas. Training and manpower development is also another

important area, which will and Chennai airports, encouraging establishment of viable units of

around 7-15 Ha, a very close linkage between governments, research institutions and flower

growers, assistance for market development, provision of assume criticality in future. The use of

information technology and, particularly, Internet for trading should also be promoted

Overview of Indian and World Floriculture Industry

Floriculture is a major global industry in both developing and developed countries. Global trade

volume is estimated to be worth more than $100bn per annum. The main players are divisible

into producers (in developing countries) and consumers (in developed countries, including many

in Africa).

Netherlands has retained its position as world most important producer of flowers, as well as an

important supplier to other continents. Its flower auction in the northern town of Aalsmeer is by

far the world’s largest flower market.

In the recent years, two developments have had a significant effect on the global floriculture

industry.

1. Increased competition in production and distribution.

2. Consolidation and vertical integration in floriculture industry.

Floriculture has emerged as an economically viable diversification option in the Indian

agribusiness and has captured the interests of many new entrepreneurs into agricultural sector in

recent times. Government of India has identified floriculture as a sunrise industry and accorded it

100% export oriented status. Owing to steady increase in demand of flower floriculture has

become one of the important Commercial trades in Agriculture.

Indian floriculture industry comprises of flowers such as Rose, Tuberose, Glads, Anthurium,

Carnations, Marigold etc. Cultivation is undertaken in both open farm conditions as well as state-

of-the-art poly and greenhouses.

Importance of flowers is not restricted upio the beautification, decoration or preparation of Gajra,

Garland, Veni or Bouquets but afso have the industrial importance too. In floriculture sector

create employment opportunity and also create entrepreneur opportunity for women.

In India main floriculture product are produce and export are Rose, Carnation, Chrysanthemum,

Gargera, and Gladiolus and main area of cultivation are Maharashtra, Karnataka, Andhra

Pradesh , Haryana, Tamil Nadu.

We find out many challenges in Indian floriculture industry faced in today

Declining margins

Environment

Pest control

Employment

Capital costs

We find that Indian government and many banks like NABARD help in develop floriculture

production and industry in India. APEDA is providing guideline for floriculture production and

it’s also responsible for floriculture development in India. In India floriculture industry is initial

stage in future there is lots of opportunity for growth in floriculture industry. It also provides

economic development for country.

Today the industry faces many issues (apart from the primary infrastructural issues), which have

constrained its growth potential. The Government of India has introduced many developmental

programmes mainly through the schemes of Ministry of Commerce (APEDA) and Ministry of

Agriculture (National Horticulture Board, etc.). Most of the state governments have also initiated

their own programmes providing technical and financial assistance to the millions of small and

large producer

AUSTRALIAN FLORICULTURE INDUSTRY

Australia's Floriculture Production industry has struggled to grow over the past five years due to

stagnant demand for flowers by Australian consumers, rising import competition and the

inability to expand export markets. Australians traditionally have a low rate of flower

consumption compared with consumers, for example, in the United States, Japan and Europe,

who live in cooler climates and are more likely to purchase flowers due to spending greater time

indoors. Nevertheless, domestic demand has been depressed by other factors over the past five

years, including the high level of competition from substitute products for traditional flower-

giving occasions such as chocolates, gift vouchers and charity donations.

Traditional flowers account for the bulk of industry production and are generally produced under

the cover of greenhouses, cold frames, and cloth or lath houses. Wildflowers are the second-

largest segment and generally involve in-ground production. The industry's final product

category involves seed production, which is generally produced under contract.

Floriculture or flower farming as it is popularly called is a discipline of Horticulture, and is the

study of growing and marketing flowers and foliage plants. Floriculture includes cultivation of

flowering and ornamental plants for sales or for use as raw materials in cosmetic and perfume

industry and the pharmaceutical sector. The persons associated with this field are called

floriculturists.

Officially Floriculture began in the late 1800's in England where flowers were grown in large

estates, and now has spread to most other countries as well. The floral industry today has grown

to much larger proportions and offers a wide scope for growth and profits.

The countries involved in the import of flowers are Netherlands, Germany, France, Italy and

Japan while those involved in export are Columbia, Israel, Spain and Kenya.

Indian floriculture industry has been shifting from traditional flowers to cut flowers and dry

flowers for export purposes. The liberalized economy has given an impetus to the Indian

entrepreneurs for establishing export oriented floriculture units under controlled climatic

conditions. About 60000 ha area is under floriculture at present.

During nineties, increasing demands for flowers in world market was coupled with production

technology available abroad for high flowers. This encouraged some entrepreneurs to establish

export-oriented units in Hyderabad, especially for the production of long stem rose by importing

cultivators and Green House technology.

Australian Dry Flower Industry

Australia is now an integral part of the expanding world flower trade, which in 2000 was worth

an estimated US$7 billion. Australia's potential for exporting flowers lies in its unique native

flora. The true value of the Australian export industry is not clearly defined but is likely to be

around 50 million dollar per annum. Australian flowers account for around 95 %. Domestically

and internationally, the industry is recognized for its strict production standards, a sophisticated

supply chain and high quality products.

GARDENING AUSTRALIA

The cut flower industry is one of the biggest consumers of pesticides worldwide. It also has a

dubious record when it comes to worker health and environmental damage. By global standards,

the Australian flower industry is relatively small, although precise figures are hard to find.

Anecdotal information from florists suggests imports only make up about 5 per cent of the

market, largely roses and lilies for Valentine's Day and Mother's Day.

However, Australia is no exception when it comes to the extensive use of pesticides to grow

flowers. The Australian Pesticides and Veterinary Medicine Authority (APVMA) indicates there

are around 100 different pesticide active ingredients permitted for use on flowers. The list

includes highly toxic insecticides such as chlorpyrifos, diazinon and endosulfan (now banned in

over 60 countries), persistent herbicides such as simazine (a known groundwater contaminate)

and fungicides like thiram, which is a nervous system poison that also causes developmental and

reproductive effects

There are also pesticides used under permits issued by the APVMA, which effectively means

they have never been thoroughly assessed for use on flowers. Not content with nature's bounty,

Australia was also an early adopter of genetically engineered carnations, commercialized in 2004

to produce blue, mauve and violet colored blooms.

Overview Objectives

Floriculture has been proposed as an ideal basis for sustainable enterprise development for

resource-poor communities - whether remote, rural or peri-urban - in the Pacific Islands, Papua

New Guinea and northern Australia. World trade in floricultural products (live ornamental

plants, as well as cut-flowers and foliage) continues to increase and there are recognized market

opportunities - so far largely unrealized - for the supply of novel products based on the rich

biodiversity of the Pacific and Australian region.

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Feasibility-Study.pdf

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http://www.tradecommissioner.gc.ca/eng/document.jsp?did=10460&cid=511&oid=296

http://www.mapsofindia.com/india/flower-export-zones.html

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0101

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101

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GROUP 2

A

GLOBAL / COUNTRY STUDY AND REPORT

ON

“Gems & Jewellery Industry Analysis of Australia”

Submitted to

Gujarat Technological University

(IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION)

UNDER THE GUIDANCE OF

Dr. (Prof.) Mamta Brahmbhatt, Associate Professor, NICM

Submitted by

Name Enroll. No.

Nair Shyam C. 117690592022

KhambhadiyaDenish G. 117690592024

Patel Viral A. 117690592033

Lathiya Harshad M. 117690592044

SarvaiyaBhoomita 117690592107

PrajapatiHemendra R. 117690592110

Batch: 2011-13

MBA SEMESTER III / IV

---------------------------------------------------------------------------------------- Shri Jairambhai Patel Institute of Business Management

and Computer Application (NICM), Gandhinagar.

MBA PROGRAMME

Affiliated to Gujarat Technological University, Ahmedabad.

EXECUTIVE SUMMARY

The gems and jewellery sector is a major foreign exchange earner. This chapter focuses on the

various policies and measures that were taken by the government for the gems and jewellery

sector. India has been the world's largest consumer and importer of gold. Gold dominates the

Indian jewellery market and formulates almost 80 per cent of the market share, which is followed

by fabricated studded jewellery including diamond and gemstone studded jewellery.

Indian Industry Structure

Indian gems and jewellery sector is expected to grow at a compound annual growth rate (CAGR)

of around 13 per cent during 2011-2013

Gold

India's culture and mythology embrace gold. India's traditions of unparalleled craftsmanship and

skill are exemplified by its gold jewellery manufacturing, with the majority of pieces still made

meticulously by hand. Gold with its intrinsic luster and ease of fabrication has always been the

jewelers’ favourite metal. Gold jewellery forms the backbone of the precious jewellery industry.

Diamonds

Diamonds have always enjoyed a special place among precious gemstones. India has the

distinction of being one of the first countries to introduce diamonds to the world. Earlier,

diamond jewellery was limited to a very small elite segment of the population but now it has

found way in various segments of consumers. Besides, India has emerged as one of the world's

leading diamond cutting and polishing centers.

Colored Gemstones

The colored gemstones segment includes remaining forms of jewellery which includes precious

gemstones like emeralds, sapphires, rubies and tanzanite; and semi-precious gemstones like

silver, pearls, etc. Traditional Indian gemologists identified around 84 precious and semi-

precious stones, amongst them nine stones form the 'Navratnas or the nine gems'.

The diamond industry can be separated into two distinct categories: one dealing with gem-grade

diamonds and another for industrial-grade diamonds.

Gem-grade diamonds

A large trade in gem-grade diamonds exists. Unlike other commodities, such as most precious

metals, there is a substantial mark-up in the retail sale of gem diamonds. There is a well-

established market for resale of polished diamonds (e.g. pawn broking, auctions, second-hand

jewelry stores, diamantaires, bourses, etc.). One hallmark of the trade in gem-quality diamonds is

its remarkable concentration: wholesale trade and diamond cutting is limited to just a few

locations; in 2003, 92% of the world's diamonds were cut and polished in Surat, India.

The production and distribution of diamonds is largely consolidated in the hands of a few key

players, and concentrated in traditional diamond trading centers, the most important being

Antwerp, where 80% of all rough diamonds, 50% of all cut diamonds and more than 50% of all

rough, cut and industrial diamonds combined are handled

Cutting

Mined rough diamonds are converted into gems through a multi-step process called "cutting".

Diamonds are extremely hard, but also brittle and can be split up by a single blow. Therefore,

diamond cutting is traditionally considered as a delicate procedure requiring skills, scientific

knowledge, tools and experience. Its final goal is to produce a faceted jewel where the specific

angles between the facets would optimize the diamond luster that is dispersion of white light,

whereas the number and area of facets would determine the weight of the final product. The

weight reduction upon cutting is significant and can be of the order of 50%.

De Beers' market share dipped temporarily to 2nd place in the global market below Alrosa in the

aftermath of the global economic crisis of 2008, down to less than 29% in terms of carats mined,

rather than sold.

Brown-colored diamonds constituted a significant part of the diamond production, and were

predominantly used for industrial purposes.After the development of Argyle diamond mine in

Australia in 1986, and marketing, brown diamonds have become acceptable gems. The change

was mostly due to the numbers: the Argyle mine, with its 35,000,000 carats (7,000 kg) of

diamonds per year, makes about one-third of global production of natural diamonds; 80% of

Argyle diamonds are brown.

Inspection

If buyers are only able to purchase the diamond mounted, so that buyers are unable to fully

inspect the product, or if the diamond comes without a full GIA lab grading report, or a written

guarantee that it was sourced from a legitimate supplier, these are other indicators of a lower

valued diamond.

The boundary between gem-quality diamonds and industrial diamonds is poorly defined and

partly depends on market conditions (for example, if demand for polished diamonds is high,

some suitable stones will be polished into low-quality or small gemstones rather than being sold

for industrial use).

Mining

Approximately 130,000,000 carats (26,000 kg) of diamonds are mined annually, with a total

value of nearly US$9 billion, and about 100,000 kg (220,000 lb) are synthesized annually.

Roughly 49% of diamonds originate from Central and Southern Africa, although significant

sources of the mineral have been discovered in Canada, India, Russia, Brazil, and

Australia. They are mined from Kimber lite and Lamproite volcanic pipes, which can bring

diamond crystals, originating from deep within the Earth where high pressures and temperatures

enable them to form, to the surface.

In the U.S., diamonds have been found in Arkansas, Colorado, Wyoming, and Montana. In 2004,

the discovery of a microscopic diamond in the U.S. led to the January 2008 bulk-sampling

of kimberlite pipes in a remote part of Montana.

Today, most commercially viable diamond deposits are in Russia (mostly in Sakha Republic, for

example Mir pipe and Udachnaya pipe), Botswana, Australia (Northern and Western Australia)

and the Democratic Republic of Congo. In 2005, Russia produced almost one-fifth of the global

diamond output, reports the British Geological Survey. Australia boasts the richest

diamantiferous pipe, with production from the Argyle diamond mine reaching peak levels of 42

metric tons per year in the 1990s. There are also commercial deposits being actively mined in

the Northwest Territories of Canada and Brazil. Diamond prospectors continue to search the

globe for diamond-bearing Kimber lite and lamproite pipes.

Australian structure

Australia’s substantial diamond resources are mostly associated with the world-class Argyle

deposit in the Kimberly region of Western Australia. Other smaller resources are associated with

small diamond pipes at Ellendale in Western Australia and Merlin in the Northern Territory with

each containing about five million carats.

Australia’s diamond exports are worth about $600-700 million a year.

Geoscience Australia provides a range of geoscience data and information to encourage and

support exploration for new diamond resources in Australia.

Diamond Uses

Gem quality diamond is used in jewellery. Lower quality diamonds are used in a wide range of

industrial applications, especially in cutting tools and abrasives because diamond is the hardest

naturally occurring material.

Diamond Production and Exports

Hand sorting diamonds

Australia’s diamond production of about 16 million carats is almost entirely from the

Argyle mine in Western Australia. However, Argyle’s output has reduced substantially from 30-

40 million carats a year to current levels as production from the open pit winds down and

underground mining ramps up. Despite this Argyle remains to the largest single source of

diamonds, supplying about 20 per cent of world natural diamond production. About five per cent

of Argyle production is gem, about 45 per cent cheap gem and the remainder of industrial grade.

A small amount of diamond totaling about 200 000 carats, including high quality yellow

diamonds, is produced from the Ellendale mine. Trial mining is being conducted at the

Merlin project. Nearly all Australia diamond production is exported, mostly to India.

Diamond Resources

Australia is estimated to have about 16 per cent of the world’s Economic Demonstrated

Resources (EDR) of industrial quality diamonds, the third largest after the Democratic Republic

of Congo and Botswana. Australia’s gem and near-gem quality diamond resources are similarly

large but detailed information on world resources are not available. Australia’s national

inventory of diamond resources are updated annually in Australia’s Identified Mineral

Resources.

Diamond exploration and discovery

Australia’s large areas of Precambrian cratons are considered prospective for diamond and large

areas of the continent have been explored at least at the reconnaissance level during the past 40

years. Current levels of diamond exploration in Australia are low, reflecting a lack of recent

success and the difficulties in exploring areas with extensive regolith and sedimentary cover.

Most of the exploration is focused in the Northern Territory, Western Australia and South

Australia.

INDIAN DIAMOND INDUSTRY

Size of the Industry

The diamond industry in India today is worth about Rs. 6000

crores and is rated amongst the fastest growing diamond

markets in the world.

Geographical distribution Gujarat, Mumbai , Surat, etc

Output per annum

Indian has exported rough diamonds worth US$ 566 million

in 2007-08 and polished diamonds of worth US$ 14.18

billion.

Percentage in world market

Today India is the largest diamond cutting and polishing

center in the world, it enjoys 60% value share for diamond

cutting and polishing. 85% volume share and 92% share of

the world market in terms of number of pieces.

Market Capitalization

Indian Diamond Industry currently constitutes about 15% of

Rs. 900 crores approx. of the market and is growing at a rate

of 40%

Introduction of Indian diamond market

Indian Jewellery is made scrupulously by hand and was traditionally crafted by family jewelers

skilled in a particular style. India`s artisans with traditional skills dominated contemporary

techniques to provide the world with jewelry that conformed to international standards. Today

there are new generations of young designers dominating the world market, apart from a host of

established houses that design the fashion jewelry across India and several jewelry design

institutes, encouraging fresh ideas and talent. The zenith body Gem and Jewelry Export

Promotion Council (GJEPC) is dazzling and growing industry. The council was set up under the

patronage of the Ministry of Commerce in 1966 and has helped to form a better understanding

between the diamond industry and the government. The chief function of the council is to

develop and promote the export of gems and jewelry from India, to contribute towards

establishing a code of ethics to ensure that fair trade practices are followed in the jewelry arena.

Market Capitalization

Indian Diamond Industry currently constitutes about 15% of Rs. 900 crores approx. of the market

and is growing at a rate of 40%, and this is attributed to many factors such as higher disposable

incomes, changing outlook and attitude of the consumers, aggressive marketing and promotional

activities by the branded players.

Size of the industry

The diamond industry in India today is worth about Rs. 6000 crores and is rated amongst the

fastest growing diamond markets in the world. India ranks third in the world in domestic

diamond consumption behind only to USA & Japan.

Total contribution to the economy/ sales

Today India exports about 90% of Diamonds to the US. In the year 2008-09, during April-

January 2008-09, the exports of cut and polished diamond declined 2.85 % to $11.34 billion, in

contrast to a 6.63 % growth to Rs 11,020 crore during the corresponding year.

Domestic and Export Share

Today Indian exports of diamonds increased and in turn it reflected greater than before in the

export of designed jewelry. The evident fact that the Indian jewelry designs have for centuries

spell bounded everyone, from the Indian maharajas to the monarchs of faraway lands. The Indian

diamond trades over 40% of DeBeers exports to India, accounting for nearly $400 million, are

composed of Argyle roughs and more than half of India's 5500 diamond manufacturers depend

on this business for their livelihood.

Top leading Companies

Adora

Tanishq

Kiah

Nirvana Diamonds

D'damas

Employment opportunities

The jobs of Gemologists or the Diamond cutter or the manufacturer require high skills as it

involves identifying and grading of diamonds, precious and semi-precious stones and other

related aspects. Due to the increase in jewellery export there is demand for more and the national

and international companies in the field are setting up new centers in India and are recruiting

trained professionals to keep the pace with growing international market. A trained gemologist or

Diamond jewelry designer can find attractive jobs in India or a sparkling career abroad.

Latest developments

Today India is the largest diamond cutting and polishing center in the world, it enjoys

60% value share for diamond cutting and polishing. 85% volume share and 92% share of

the world market in terms of number of pieces.

60% global market share by volume and 80% by volume, 94% of global workers in

diamond are Indians, 11 out of every 12 diamonds polished pass through Indian hands.

50 banks provide US$ 3 bn credit Manufacturing and sales offices worldwide diversified

into jewellery manufacturing

Export of Gems and Jewellery

The net exports of gems and jewellery from India during April 2012-December 2012

stood at US$ 27,638.39 million, including that of cut and polished diamonds at US$

11,501.45 million, gold at US$ 14,224.67 million, colored gemstones at US$ 225.49

million and silver jewellery at US$ 578.65 million, besides others, according to the

provisional data released by Gem &Jewellery Export Promotion Council of India

(GJEPC).

The exports from the industry are expected to rise 15 per cent in 2013

Shipments are likely to rise by up to 30 percent in 2013.

Government Initiatives

India appears as a very attractive opportunity for major brands to establish their presence.

The growing domestic market in India along with export advantage of the industry and

the Government's decision to allow foreign direct investment (FDI) up to 51 per cent in

single brand retail stores have attracted various foreign players to the Indian market.

The Government of India has reduced the customs duty on import of Gold Findings

(small component such as hook, clasp, clamp, pin, catch, screw back) from 10 per cent to

4 per cent.

Foreign Direct Investment Policy

The Government of India allows 100 per cent FDI in gems and jewellery sector through

the automatic route

For exploration and mining of diamonds and precious stones, FDI is allowed up to 74 per

cent under the automatic route

For exploration and mining of gold and silver and minerals other than diamonds and

precious stones, metallurgy and processing, FDI is allowed up to 100 per cent under the

automatic route

Foreign Trade Policy (2009-2014) Initiatives

Import of gold of 8 karat (k) and above is allowed under replenishment scheme subject to import

being accompanied by an Assay Certificate specifying purity, weight and alloy content. Duty

Free Import Entitlement (based on Free on Board (FOB) value of exports during previous

financial year) of consumables and tools, for:

Jewellery made out of:

o Precious metals (other than gold & platinum) - 2 per cent

o Gold and platinum - 1 per cent

o Cut and polished diamonds - 1 per cent

o Rhodium finished silver - 3 per cent

Duty free import entitlement of commercial samples shall be US$ 6187.9

Duty free re-import entitlement for rejected jewellery shall be 2 per cent of FoB value of

exports

Import of diamonds on consignment basis for certification/ grading & re- export by the

authorized offices/agencies of Gemological Institute of America (GIA) in India or other

approved agencies will be permitted

Personal carriage of gems and jewellery products in case of holding/participating in

overseas exhibitions increased to US$ 5 million and to US$ 1 million in case of export

promotion tours

Extension in number of days for re-import of unsold items in case of participation in an

exhibition in USA increased to 90 days

In an endeavor to make India an international trading hub for diamond, it is planned to

establish "Diamond Bourse (s)"

Comparative Position of Gems & Jewel Industry in India and Gujarat

Market Overview

The gems and jewellery sector can be categorised into the following sub-sectors based on

characteristics, processing techniques, preciousness in terms of price range and

marketability.

Gemstones - Diamonds and coloured stones (precious, semi-precious and synthetic)

Jewellery - Plain Gold, Studded, Silver, Costume

Pearls

The global market for gems and jewellery today is pegged at US$ 85 billion with key markets

having registered an average compounded annual growth rate (CAGR) of 5-10 per cent in the

last decade.

India is a leading player in the global gems and jewellery market

The sector is largely unorganised at present with a small but growing organised sector

Presence of traditional pockets of jewellery manufacture

India offers attractive opportunities across the industry value chain

.

The domestic industry has been growing at a significant rate

The gems and jewellery sector in India has been growing across all key segments, as detailed

below.

Precious Metals

1. Gold

The current consumption of gold in India is estimated at over 900 tonnes, used mostly in

20 / 22 carat jewellery. Nearly 95 per cent of gold is used to manufacture gold jewellery

in the domestic markets and the remaining 5 per cent is exported. Gold consumption in

India is primarily aimed at investment.

2. Silver

India annually consumes around 4,000 tonnes of silver. Silver jewellery and other articles

for personal use, especially in the rural areas, account for the bulk of the sales. India is

also the third largest industrial user of silver in the world, after the US and Japan.

3. Platinum

Platinum or white gold, targeted at the premium jewellery segment, is gaining preference

of designers and consumers globally. While India’s share in the global platinum jewellery

market is growing by 19 per cent annually, it continues to be is less than one per cent in

the global platinum jewellery market.

Given the global growth and the maturing of the Indian market to international trends,

this represents an area for potential growth in India.

4. Gemstones

India’s gemstone industry has been growing due to the popularity of gemstone-studded

jewellery across the globe, with an estimated turnover at US$ 0.22 – 0.26 billion.

5. Jewellery

The Indian jewellery market is one of the largest in the world. The Indian market size at

US$ 13 billion, is second only to the US market of US$ 40 billion and is followed by

China at US$ 11 billion.

The gold jewellery market is growing at 15 per cent per annum and the diamond jewellery

market, at 27 per cent per annum.

The branded jewellery market in India is estimated at US$ 111.6 million per annum.

Competitive Advantage

The factors leading to the Indian gems and jewellery industry’s growth are many. A near

dominance in diamonds and coloured stones, manufacturing excellence, forward looking

entrepreneurs, liberalised government policies and an extensive international marketing network

has helped India establish itself as one of the leading jewellery centres in the world.

India’s competitiveness in gems and jewellery industry can be assessed as follows:

Availability of factor conditions

Favourable demand conditions

Changing lifestyles

Present Position and Trend of Gems & Industry Business (import / export) with India /

Gujarat during last 3 to 5 years

Sector Overview

India has significant reserves of gold, diamond, ruby and other gemstones. Key states with

gemstone reserves and mining potential are Maharashtra, Madhya Pradesh, Orissa, Chattisgarh,

Bihar and Andhra Pradesh. Orissa has deposits of ruby and has about 20 varieties of various

gemstones such as rhodo line, garnet, aquamarine, etc. Andhra Pradesh has gold and diamond

bearing areas, as well as occurrences of semi-precious and abrasive stones spread over different

districts. Diamonds are mined only at Panna in Madhya Pradesh by the National Mining

Development Corporation.

The two major segments of the sector in India are gold jewellery and diamonds. The country is

the largest consumer of gold, accounting for more than 20% of the total world gold consumption.

Gold jewellery forms around 80% of the Indian jewellery market, with the balance comprising

fabricated studded jewellery that includes diamond and gemstone studded jewellery. A

predominant portion of the gold jewellery manufactured in India is consumed in the domestic

market.

Policy and Promotion

The government has announced several measures for the promotion of the gems and jewellery

sector in the New Foreign Trade Policy (2009-2014)

Sector Outlook

A FICCI-Technopak report estimates that gems and jewellery exports will grow to USD 58

billion by 2015. It also estimates that the domestic market for gems and jewellery will touch

USD 35 billion to USD 40 billion by 2015.

Regulating Bodies

Gems &Jewellery Export Promotion Council (GJEPC)

Gem &Jewellery Trade Council of India (GJTCI)

The Bureau of Indian Standards

Government Initiatives to Boost the Sector

Measures taken by the government in the Union Budget 2009-10:

Customs Duty on Gold and Silver

Central Excise Duty

Fiscal Stimulus Measures (December 2008)

Export Facilitation Measures by the Ministry of Commerce and Industry

Foreign Trade Policy 2009-2014

India Imports

India exports

Net Exports of the Gems and Jewellery sector

Export of cut and polished diamond

Share in net Exports Gems and Jewellery (%)

Export of Gold Jewellery

Exports of Coloured Gemstones and Non gold Jewellery

Gem &Jewellery Exports Over the past decade

Net export from India for last two years

Net import from India for last two years

GUJARAT: A LEADING INVESTMENT DESTINATION

The Gems &Jewellery industry is a fascinating industry in many ways: traditional, on one hand

and glamorous on the other. It is undergoing a gradual change from an object of investment to a

fashion accessory. It is one of the fastest growing industries in the country and contributes to

about 15 percent of India’s total exports. With diamond and jewellery units located in the cities

of Gujarat –– Ahmedabad, Palanpur, Bhavnagar, Valsad, Navsari and Surat –– it becomes one of

the main contributors to the gems &jewellery industry in India.

Gems &Jewellery clusters in Gujarat

Gujarat: The Gems &Jewellery Hub of India

Gujarat accounts for 72% of the world’s share of processed diamonds and 80% of total

diamonds processed in India

Almost 8 out of 10 diamonds in the world today are processed in Gujarat

Diamonds processed in Gujarat were estimated to be worth USD 9000 million (2004-05),

constituting 80% of India’s total diamond exports

90% of total diamonds in Gujarat are processed by about 10,000 diamond units located in

and around Surat

Surat is referred to as the “Silky City Sparkling with Diamonds”

The State is home to several Centers of Excellence such as the Indian Diamond Institute,

which offer courses related to the Gems &Jewellery Industry

Surat, Ahmedabad and Rajkot are the major gems &jewellery clusters

Rajkot is internationally known for its unique handmade gold and silver ornaments which

constitute 85% of the total jewellery production in India

Assaying & Hallmarking Centers in Gujarat

Future Outlook

The future of the industry is quite promising. More and more buyers across the world are turning

to India as their preferred source for quality jewellery.

The Gems and Jewellery Export Promotion Council (GJEPC) is looking at exploring new

markets, such as Latin American countries. The industry also plans to make India a trading

center for cut and polished diamonds, and is closely working with the government of India in this

regard. The long term prospects looks good with jewellery exports expected to touch $16 billion

in 2010 according to industry estimates.

Suggestions

An exhibition will be organized at a big level at Ummed Residency, Ahmedabad, Gujarat, India.

All major players of the India as well as of Australia would be participating in this exhibition.

One new portal will be launched to facilitate the buying and selling of the Gems &Jewellery.

This would be good platform for various players across the two countries to improve their

relations and explore various business opportunities.

The Australian players would also be made aware of the availability of cheap labor on

contractual basis in India (especially in Gujarat). The players would be given the option of

providing either raw materials from which the product would be delivered according to their

specifications or else they would be required to place a direct order for which they would be

delivered the finished gems &jewellery. This will be in turn beneficial for the players as well as

would provide a great opportunity for the business of Gems &Jewellery to prosper in India

(especially Gujarat).

Bibliography

1. http://www.docstoc.com/docs/50593656/GEMS-AND-JEWELLERY

2. http://article.wn.com/view/2012/07/04/I_was_physically_sick_when_I_saw_that_Bolling

er_email_says_B/

3. http://article.wn.com/view/2012/12/12/Diamond_Gusset_motorcycle_jeans/

4. http://article.wn.com/view/2012/05/29/The_Get_Prestat_8217s_Diamond_Jubilee_Truffl

es/

5. http://www.indianmirror.com/indian-industries/diamond.html

6. http://www.slideshare.net/tkjainbkn/gems-and-jewellery-11878668

7. http://www.commodityonline.com/news/platinum-jewellery-market-booms-in-india-

30738-3-30739.html

GROUP 3

A

GLOBAL / COUNTRY STUDY AND REPORT ON

“MINING AND MINERALS INDUSTRY OF AUSTRALIA”

SUBMITTED TO:

SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT AND

COMPUTER APPLICATIONS (NICM-MBA)

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

IN

GUJARAT TECHNOLOGICAL UNIVERSITY

UNDER THE GUIDANCE OF

DR. NARAYAN BASER

SUBMITTED BY:

Archit Mankad (117690592023)

Sakshi Kalra (117690592041)

Sahil Nair (117690592058)

Kamlesh Chaudhary (117690592031)

Rajiv Kanjariya (117690592087)

Akash Chavda (107690592079)

MBA Semester III & IV

BATCH: 2011-2013

SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT AND

COMPUTER APPLICATIONS

MBA PROGRAMME

AFFILIATED TO GUJARAT TECHNOLOGICAL UNIVERSITY

GUJARAT TECHNOLOGICAL UNIVERSITY,

AHMEDABAD, MAY 2013

SUMMARY

There are many factors in the macro-environment that will affect the decisions of the managers

of any organisation. Tax changes, new laws, trade barriers, demographic change and government

policy changes are all examples of macro change. To help analyze these factors we can

categorize them using the PESTEL model.

POLITICAL FACTORS

These refer to government policy such as the degree of intervention in the economy. What goods

and services does a government want to provide? To what extent does it believe in subsidizing

firms? What are its priorities in terms of business support? Political decisions can impact on

many vital areas for business such as the education of the workforce, the health of the nation and

the quality of the infrastructure of the economy such as the road and rail systems.

The Federal Government is separated into three branches

The legislature: the bicameral Parliament, comprising the Queen (represented by

the Governor-General), the Senate, and the House of Representatives;

The executive: the Federal Executive Council, in practice the Governor-General

as advised by the Prime Minister and Ministers of State;

The judiciary: the High Court of Australia and other federal courts, whose judges

are appointed by the Governor-General on advice of the Council.

BUSINESS IN AUSTRALIA HAS A HIGH DEGREE OF CERTAINTY

Australia is a safe destination for investment. The country's political and regulatory environment

is stable, open and progressive, providing investors with a high degree of confidence and

certainty. Australia's strength as an investment destination stems, in part, from a political system

that has been assessed as being highly effective in responding to economic challenges and policy

direction. The adaptability of Australian government policy to changes in the economy has been

ranked in the top two countries in the region. Similarly, the transparency and effectiveness of

government are also rated highly.

EFFICIENT AND TRANSPARENT LEGAL FRAMEWORK

Australia also has an open, efficient and transparent legal framework. Corruption levels are

judged lower than those in the US, the UK, Canada and most regional countries. These results

can be attributed to a strong system of checks and balances, and a highly respected judicial and

law enforcement system.

STABLE POLITICAL ENVIRONMENT

The benefit to companies of a stable political environment can flow right through to the bottom

line. Australia is one of the most important markets for MNCs in the Asia-Pacific region.

Australia hosts a growing economy; a stable political and business environment; a skilled, well

educated and multi-lingual workforce; a strategic time-zone and a competitive cost base. These

factors provide a sophisticated market and the right environment enabling various MNCs to drive

innovation and technology.

ECONOMICAL FACTORS

Property prices are generally high in relation to income levels in Australia, creating a great

demand for rental properties. In fact this demand is so high in some major cities that rental prices

are firmly set to increase, making any purchase into a buy-to-let property market potentially

profitable. While the population grows and incomes rise, the demand for housing now outpaces

supply, causing prices to continue rising.

CAPITAL GROWTH

Australia still has certain areas offering great investment opportunity. For example, in 2006 Perth

property prices rose by between 36.6% and a staggering 42% and commercial properties in cities

such as Brisbane and Perth are also currently offering many excellent returns on investment.

OFF-PLAN

"Pure investment" strategies are viable options in many areas, enabling you to purchase off-plan

property in Australia at the best possible prices. Investors purchasing as early as possible with a

minimum "money-down" payment and then selling prior to completion are gaining substantial

profits.

LOW-COST COMMERCIAL PROPERTY

Australia’s cost-competitiveness has led to a growing number of foreign companies using

Australia as a headquarters for their Asian operations. Between January 2002 and March 2003,

54 foreign companies established or relocated their operating centres in Australia, making it one

of the most successful countries in the world in attracting such investment. Today Australia

consistently emerges as a low cost base amongst developed nations.

CURRENCY EXCHANGE

Currency exchange rates against euros, dollars and sterling are very favourable in Australia

today, making property investment an attractive option to foreign investors who avoid losing vast

amounts of money in their exchange transactions against the Australian dollar. In addition,

foreign purchasers are generally able to buy much more for their money than “back home”.

COST OF LIVING

The cost of living in large cities such as Melbourne, Adelaide, Brisbane and Perth is dramatically

less than that of the world's most expensive cities. At the same time, Australia's major cities are

all ranked among the world's top 30 cities in terms of quality of life.

ECONOMIC STABILITY

Australia’s strong economic growth rates are higher than in most OECD countries including the

US and UK. Currently the country’s GDP is higher than that of the UK, Germany and France for

example. There is a low degree of risk in the Australian economy while it boasts consistently

strong GDP growth, stable interest rates, rising exchange rates, relatively high levels of

employment and a low rate of inflation. In the main cities unemployment is relatively low and on

average the national unemployment figures stand at around 5%. The country receives many

applications each year from those wishing to immigrate to Australia and enjoy the high standard

of living and general opportunities the country has to offer.

MORTGAGES

Repayment mortgages are available to purchase property in Australia, covering 75-80% of the

valuation or purchase price (whichever is lower) and they are available for a period of between 5

and 30 years. Interest only mortgages are widely available in Australia and are on offer for 5 or

even 10 year periods.

SOCIAL FACTORS

Changes in social trends can impact on the demand for a firm's products and the availability and

willingness of individuals to work.

SOCIAL STRATIFICATION

Classes and castes: The three main social classes are the working class, the middle class, and the

upper class, but the boundaries between these groups are a matter of debate. The wealthiest 5 to

10 percent are usually regarded as upper class, with their wealth derived from ownership and

control of property and capital. The growing middle class is defined as individuals with non

manual occupations. No manual workers typically earn more than manual workers, although

upper-level manual workers such as trade’s people earn more than those in sales and personal

service positions. The professions, which include such occupations as accountants, computing

specialists, engineers, and medical doctors, have been one of the fastest growing sectors of the

economy. Since the 1980s the number of manual workers has been in decline. Manual workers

form the nucleus of the working class; 20 to 40 percent self-identify with this category. Class

consciousness includes the acknowledgment of class divisions, but there is also a broad

commitment to an ethic of egalitarianism. Australians commonly believe that socioeconomic

mobility is possible and exhibit a basic tolerance and acceptance of inequality associated with

social class.

Symbols of Social Stratification: The upper-class can be signified by expensive clothes, motor

vehicles, and homes. In particular, the economic value of housing and other real estate properties

varies greatly across different suburbs in all cities. However, class is not always evident from

clothes, cars, and living circumstances. Middle-class people from economically wealthy

backgrounds may mask their prosperity according to fashion, choice, or participation in

particular subcultures. Young people such as students may dress to mimic imagined styles valued

for their symbolic rejection of wealth, and some working-class families go into debt to purchase

expensive cars and other commodities. Patterns of speech, consumption patterns associated with

entertainment and the arts, and participation in certain sports may be useful indicators of class.

SOCIALIZATION

Infant Care: Child rearing varies considerably with the country of origin, class background, the

education and occupation of the parents, and the religious group to which a family belongs.

While most practices are aimed at developing a responsible and independent child, Aboriginal

and many migrant families tend to indulge young children more than do most Anglo-Celtic

parents. Some ethnic groups supervise their young more strictly than the dominant Anglo-Celtic

population, encouraging them to mix only with family and friends, be dependent on the family,

and leave decision making to the parents.

Child Rearing and Education: Mothers are the preferred primary caretakers, although fathers are

taking increasing responsibility for child care. In the past mothers were not as isolated in their

child care responsibilities, receiving help from older children, extended kin, and neighbors. The

reduction in family and household size in recent years has meant that the burden of care falls

largely on mothers. There is significant variation in ideas about good parenting, reflecting the

diverse cultural values and traditions of parents' ethnic background.

Higher Education: Higher education is considered to offer the best employment opportunities.

Consequently, tertiary education has become more widely available and is undertaken by an

increasingly larger proportion of the population. It is available in two forms: universities and

institutions of technical and further education (TAFE). In 1992, 37 percent of women and 47

percent of men received post-school qualifications, and 12.3 percent of the labor force held

university degrees in 1993. Universities also attract substantial numbers of overseas students.

The government is responsible for funding most universities and institutions, with increasing

contributions being made by students in the form of fees and postgraduation tax payments.

TECHNOLOGICAL FACTORS

New technologies create new products and new processes. Technology can reduce costs,

improve quality and lead to innovation. These developments can benefit consumers as well as

the organizations providing the products. Two organizations support most of Australian

government research and development. The Commonwealth Scientific and Industrial Research

Organization (CSIRO), headquartered in Melbourne and founded in 1926, is an independent

government agency that supports research and development in all fields of the physical and

biological sciences except defense science, nuclear energy, and clinical medicine. The Defense

Science and Technology Organization (DSTO), headquartered in Canberra, supports military

research and development by providing scientific and technological assistance to the Australian

Defense Force and Department of Defense. Several issues dominate current Australian science

and technology policy: the concentration of research and development in national research

centers; tensions among and between university researchers over allocation of research and

development funding resources; effective communication between industry, government, and

university researchers; the growing role which industry is playing in support of national research

and development; and the role which Australia is playing in international science and technology

collaboration. High-technology exports totaled $1.5 million in 1998. Government funds about

55% of all research and development and industry about 40%. In 1996, there were 73

agricultural, medical, scientific, and technical professional associations and societies, the

foremost of which is the Australian Academy of Science, founded in 1954 by royal charter. The

Australian Academy of Technological Sciences and Engineering was founded in 1976. The

Australian Science and Technology Council (ASTEC) provides an independent source of

counsel for the Australian Prime Minister; it's role was augmented in 1986 by the creation of a

post for a Minister Assisting the Prime Minister with portfolio for science and technology.

ENVIRONMENTAL FACTORS

Environmental factors include the weather and climate change. Changes in temperature can

impact on many industries including farming, tourism and insurance. With major climate

changes occurring due to global warming and with greater environmental awareness this external

factor is becoming a significant issue for firms to consider.

The growing desire to protect the environment is having an impact on many industries such as

the travel and transportation industries (for example, more taxes being placed on air travel and

the success of hybrid cars) and the general move towards more environmentally friendly

products and processes is affecting demand patterns and creating business opportunities. The

Environment Protection (Impact of Proposals) Act of 1974 establishes procedures for ensuring

that environmental impact is considered in governmental decision making.

The Whale Protection Act of 1981 prohibits killing, capturing, injuring, or interfering with a

whale, dolphin, or porpoise within Australia's 200 mi economic zone or, beyond the zone, by

Australian vessels and aircraft and their crews. The Environment Protection (Nuclear Codes) Act

of 1978 mandates the development of uniform safety standards for uranium mining and milling

and for the transport of radioactive materials.

The Protection of the Sea (Discharge of Oil from Ships) Act of 1981 and the Protection of the

Sea (Prevention of Pollution from Ships) Act of 1983 prevent or limit pollution from oil or

noxious substances. Water being a scarce resource in Australia, problems of water quality and

availability are a constant concern. As of 2001, the country had only 352 cu km of renewable

water resources, although safe drinking water was available to all urban and rural dwellers.

A cause for concern has been the increased salinity in the Murray Valley, caused by diverting

water inland from the coast for irrigation, as well as the rise in saline water tables in Western

Australia, due to excessive land clearing for dry-land farming. Another significant environmental

problem is inland damage due to soil erosion. The quality of the soil is also affected by

salinization. As of 1993, Australia had 145 million hact. of forest and woodland and had the third

most extensive mangrove area in the world, covering over one million ha.

LEGAL FACTORS

These are related to the legal environment in which firms operate. The introduction of age

discrimination and disability discrimination legislation, an increase in the minimum wage and

greater requirements for firms to recycle are examples of relatively recent laws that affect an

organisation's actions. Legal changes can affect a firm's costs (e.g. if new systems and

procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers

buying the good or using the service.

CONTRACTUAL ISSUES

Contracts do not have to be in writing on a formal document and signed to be legally binding.

The major elements of formation of a contract are offer and acceptance; consideration; intention

to create legal relations and certainty of terms. Thus, provided these elements are met, a contract

may be construed via exchange of e-mails, scribbling on the back of a docket or even verbal

exchanges.

Compliance with government sanctions and regulations: Exporters should be aware that

Australia maintains United Nations Security Council sanctions and bilateral sanctions in respect

of a number of countries. These sanctions require Australian organisations and individuals to

comply with a range of measures and, in general, also apply extraterritorially to Australian

nationals overseas. Sanctions may include export and import restrictions, prohibitions of

technical assistance, training and financing, travel sanctions, and financial sanctions against

specific persons and entities.

Dealings with terrorists: What the Australian business community should know The Government

has passed laws making it a criminal offence to hold assets that are owned or controlled by

terrorist organizations or individuals, or to make assets available to them, punishable by up to

five years imprisonment. In addition to the Consolidated List, the Australian Government also

maintains a list of groups that are proscribed as terrorist organizations under the Criminal Code.

Australian companies need to ensure that they have checked the credentials of overseas partners

and buyers. Australian companies also need to be aware that there are scam operations working

in some markets and again this emphasizes the need to conduct background checks. Before

signing or accepting contracts, it is in your interests to seek professional legal advice from legal

firms specializing in international work.

SWOT ANALYSIS OF AUSTRALIAN MINING INDUSTRY

STRENGTHS

Australia is one of the largest mineral producers in the world and holds large reserves of

various minerals, including nickel and bauxite.

Australia has rich mineral resources: With huge reserves and production capacity,

Australia is among the top ten mining countries in the world. Australia holds

approximately 35% of global nickel reserves and nearly 23% of global bauxite reserves.

As a result, in 2009 Australia contributed more than 30% to global bauxite production

and nearly 15% to global nickel output. In this year, Australia was also ranked as the

third largest producer of iron ore.

Australian mining sector is quite technologically advanced. A large proportion of mines

worldwide make use of Australian-developed computer software, such as specialised

Geological Database and Resource Estimation Modelling software by Micromine and

geology/mine planning software by Runge Ltd and Maptek Pty Ltd. Australia is also

home to promising new tech companies that offer mine planning software including

Oreology and Paradyn. Mines in Australia are leading the market globally deploying

mine production data management software such as Corvus developed by Intov8 Pty Ltd,

which displays real-time production data from multiple source systems on dashboards,

and includes comprehensive dynamic analysis and reporting, driving process and cost

efficiencies at the shift level. Australia's mining services, equipment, and technology

exports are over $2 billion annually

Strong economic credentials

Democratic and politically stable

Highly skilled and multicultural workforce

Sophisticated information and communications technology and infrastructure

Innovative culture, with excellent R&D infrastructure

Open and efficient regulatory environment – standardised reporting requirements for

mineral deposits

Regional advantage of being part of Asia

Excellent quality of life

Welcoming attitude to foreign investment

13th Largest Economy (2.1% of world GDP)

4th best on the prosperity index

Ranked 2nd in education

4th in personal liberties

4th in social capital

2nd in resilience to economic cycles (2011)

2nd to Demark in Debt/GDP ratio at 8%

5th in financial development Index.

WEAKNESS

Cracking Australia is not all easy. Indian company executives say that approvals take

longer as all states demand extensive documentation to make sure all environmental

norms are complied with.

The country's trade union friendly labour laws can also make companies balk. "The law

supports unions and with well-protected structures, the workers tend to demand high

wages, putting the cost of mining on the high side compared to other countries with coal

reserves,"

There's also significant labour shortage in the Australian mining sector, around 16,000

more workers are needed, and that adds to labour costs.

OPPORTUNITIES

Australia is the one of the most stable growth mining markets in the world sitting on

Asia's doorstep.

Australia’s mineral exploration market is open for business with many opportunities for

re-investment into expansion and new investment into development.

Australia offers technology oriented companies a well developed, innovative, and

growing market to invest their resources and develop their business with further

opportunities to access Asian supply chains via Australia.

Finally, the strong existing relationship between Canada and Australia in mining provides

comfort and experience to new investors.

Sandfire Resources

o 900km NE of Perth, established mining district

o Discovery to first production in <3 years

o Open pit and underground mining operation: +7 year mine life

o Life-of-mine extraction:

–541,000t copper, 599,000oz gold – contained)

o Early extraction of DSO Ore Reserves (open pit):

–37,000t of copper (25.6% Cu), 12koz gold (2.5g/t)

o Production of high-grade, high-quality copper concentrate grading 27% Cu:

–480,000t of payable copper metal

–270,000oz of payable gold

Australia's sparse population, increasing focus on renewable sources of energy generation

and transparent policies made it a hot destination for companies

Australia's export-oriented economy is extremely investor-friendly. There are well laid

out processes in place in every region of the country. "We just need to follow those

processes. To that extent, Australia is definitely a good investment destination."

THREATS

The new tax regime, coupled with the investments involved in creating the infrastructure

for mining and evacuation operations, will deter Indian investments as they will increase

the price of coal imported from Australia

Australian mining sector fears the new tax regime to lead to closure of at least 20 mines

and could cost thousands of jobs.

SECURING SUSTAINABLE SUPPLY

India is not able to meet its coal demand and import of coal from other countries has become

inevitable. With a large of number of captive coal blocks stuck in various pre-implementation

stages, companies’ dependency on coal import has increased. Even some of the India’s large

power producers have shown a greater tendency to rely on imported coal to an extent despite the

fact that domestic coal blocks have been allotted to most of their projects.

Presently, India ranks fourth in the coal import demand, being led by Japan. India accounts for

about 10% of the world’s import coal demand. It is facing stiff competition from other Asian

economies like Japan, South Korea and China. Japan has continued to lead the import demand,

China is fast catching up and its demand is estimated to rise at significantly high rate (CAGR

29%) between 2008 and 2013.

Considering above factors, it is necessary to secure sustainable supply of coal. The options

available are:

Long term off-take contracts with coal producers and;

Acquisition of assets in foreign lands: In 2011, Coal Deals represented 26% of all deals

by value globally. Coal targets had the highest average deal value of all resources ($871

million) as mass consolidation between seniors continued across the Americas, Australia

and Russia. Coal miners “stuck to what they know” and very little M&A driven by

resource diversification strategies was observed.

Presently, India is mainly dependent on Indonesia and South Africa for import of thermal coal

and on Australia for coking coal. However, the new regulatory scenarios in these countries are

reflective on the increasing coal prices. This necessitates the requirement of intensive efforts in

identifying new avenues for supply, like Mozambique and others.

While the alternate sources for coal import beyond Indonesia, South Africa and Australia are

identified, the challenges in these countries (like Mozambique, Columbia) are numerous ranging

from lack of infrastructure to export coal out of country, concerns over stability of political and

fiscal regime, unavailability of skilled manpower, etc. Beyond acquiring mineral assets, huge

investment in developing surrounding infrastructure and government support to secure stable

fiscal regime would be necessary to ensure long term sustainable coal imports from Mozambique

and Columbia.

RISKS INVOLVED IN COAL IMPORTS

There are certain factors which can significantly affect the project economics. Some of the key

risks involved are discussed below:

In case of acquisition, profile of the asset and timing of acquisition is important.

Acquisition of wrong asset (where profile mismatch may be in terms of size, quality,

developmental time required etc.) may result in heavy costs as huge sum of money is to

be paid up front.

Due Diligence of asset: While due diligence of source is necessary for reliability of coal

supply, it becomes more important in case of asset acquisition. If detailed technical,

financial, tax and other due diligence are not carried out, correct price may not be

assessed resulting in heavy losses.

Commercial Contract: For reliability of long term supply, it is necessary that detailed

contract is drafted to ensure that roles and responsibilities of the parties are clearly

identified. This should also detail obligations and provisions for non performance.

Contract should have enough enforcing provisions and deterrent for ensuring

performance by each party.

Coal Prices: FOB price of coal forms more about 60-80% of landed cost of coal. Coal

Prices in Global coal market has seen significant variation. Over past five years, coal

prices have seen about 300% increase and standard deviation of coal prices has been

about 30% for various coal indices.

Charter Cost: It forms about 50-60% of total transportation cost and about 10-15% of

total landed cost of coal. Over past 4-5 years, Charter rates have seen significant

variation. In past years, charter rates have seen fluctuation of over 1000%. Even standard

deviation reported for charter rates of Panamax and Capesize vessels has been about

21,000 during volatile periods.

Bunker Price: Variation in bunker cost will have significant impact on transportation cost

as it cost about 40-50% of transportation cost. During 2004 and 2009, Bunker cost has

seen significant variation with difference between maximum and minimum monthly

average bunker cost has been about 25% with standard deviation of 19%. This signifies

significant variation in bunker fuel prices.

Exchange rate: For a consumer in India, the net cost will also depend on the prevailing

exchange rate. If we consider the present scenario, INR has fallen about 24% against

USD in the last one year. The variation in exchange rate will increase the coal price

volatility to consumers in India. However, this risk can be minimized by hedging the

exchange rate.

Demand from buyers: For majority of coal moving into one territory, the role play of he

buyers from such territories also dominate the price movement. In cases of sudden

demand rise, the prices of sea-borne coal may tend to increase, while in case of shortage

of demand, the prices may fall because of which the coal producers become reluctant to

sell off their coal.

Changes in regulatory regime: As discussed earlier, in the recent years many countries

have introduced new provisions which impact the cost of coal. For example, In Indonesia,

on one hand, DMO imposes the limit on coal to be traded internationally while on the

other hand, price benchmarking is expected to increase the price of coal. Similarly, in

Australia provisions for MRRT and Carbon Tax increase the price of coal to consumers.

Australia has a significant infrastructure to support any future nuclear power program. As

well as the Australian Nuclear Science & Technology Organisation (ANSTO), which

owns and runs the modern 20 MWt Opal research reactor, there is a world-ranking

safeguards set-up - the Australian Safeguards & Non-proliferation Of f ice (ASNO), the

Australian Radiation Protection and Nuclear Safety Agency (ARPANSA) and a well-

developed uranium mining industry.

However, in contrast to most G20 countries, the only driver f or nuclear power in

Australia is reduction of CO2 emissions, or costs arising from that. Apart from this,

economic f actors and energy security considerations do not make it necessary.

In December 2006 the report of the Prime Minster's expert taskforce considering nuclear

power was released. I t said nuclear power would be 20-50% more expensive than coal-

fired power and (with renewables) it would only be competitive if "low to moderate"

costs are imposed on carbon emissions (A$ 15-40 - US$ 12-30 - per tonne CO2).

"Nuclear power is the least-cost low-emission technology that can provide base-load

power" and has low life cycle impacts environmentally.

The then Prime Minister said that in the context of meeting increased energy needs while

reducing greenhouse gas emissions "if we are to have a sensible response we have to

include nuclear power". "The report provides a thorough examination of all aspects of the

nuclear fuel cycle and the possible role of nuclear power in generating electricity in

Australia in the longer term. I t provides a clear and comprehensive analysis of the f acts

surrounding the nuclear industry and debunks a number of myths. I am certain that the

report will make a significant contribution to informing public debate on these issues."

The report said that the first nuclear plants could be running in 15 years, and looking

beyond that, 25 reactors at coastal sites might be supplying one third of Australia's

(doubled) electricity demand by 2050. Certainly "the challenge to contain and reduce

greenhouse gas emissions would be considerably eased by investment in nuclear plants."

"Emission reductions from nuclear power could reach 8 to 18% of national emissions in

2050".

I n April 2007 the Prime Minister announced that the government would proceed to open

the way f or nuclear power in Australia by setting up a nuclear regulatory regime and

removing any regulatory obstacles which might unreasonably stand in the way of

building nuclear power plants. Australia would also apply to join the Generation IV

International Forum, which is developing advanced reactor designs for deployment about

2025. The government would also take steps to remove impediments to uranium mining.

"Policies or political platforms that seek to constrain the development of a safe and

reliable Australian uranium industry - and which rule out the possibility of climate-

friendly nuclear energy - are not really serious about addressing climate change in a

practical way that does not strangle the Australian economy."

In June 2007 the emissions trading taskforce report proposed that Australia should move

steadily to implement an emissions trading scheme by 2012. While Australia cannot

afford to wait upon a global regime, its own should be devised so as to avoid the

shortcomings of present schemes and also articulate internationally. Both emission

reduction targets and carbon price would be low initially and ramp up. The need for a

trading scheme "more comprehensive, more rigorously grounded in economics and with

better governance than anything in Europe" was noted. It would be designed to appeal to

developing nations. The cost increment on coal-fired power generation brought about by

a carbon emission cost would be likely to make nuclear power competitive in Australia.

With a change of government late in 2007 the move towards nuclear power was halted

and the implementation of an emissions trading scheme became bogged down in political

rhetoric.

Any proposal for building nuclear power plants would need to be brought forward by

generating companies. The National Generators Forum published a report in 2006 on

Reducing Greenhouse Gas Emissions from Power Generation which concluded that

"Stabilizing emissions at present levels and meeting base-load requirements could be

achieved with nuclear power at comparatively modest cost." While projected cost

increases to 2050 could be more than 120%, using nuclear power would halve the

increase. "At $20 per tonne of CO2 price, nuclear starts to become more cost-effective

than current fossil fuel technologies."Cooling will be a major issue in respect to future

base-load generating capacity in Australia. At present about 80% of electricity is

produced from coal-fired plants, mostly cooled by evaporating water in cooling towers.

An estimated 400 GL/yr of fresh water is thus evaporated and lost - about the same as

Melbourne's water use. In September 2007 Australia was one of eleven countries joining

the five founders in the Global Nuclear Energy Partnership (GNEP). Australia made it a

condition that it is not obliged to accept any foreign nuclear wastes, and it reserved the

right to enrich uranium in the future. I n the lead up to this Australia and the USA

finalized a joint action plan for civil nuclear energy cooperation including R&D and

regulatory issues.

There are several legal hurdles impeding consideration of nuclear power f or Australia.

NSW has a Uranium Mining and Nuclear Facilities (Prohibition) Act 1986, and Victoria

has a Nuclear Activities (Prohibitions) Act 1983. Federally, the Environment Protection

and Biodiversity Conservation Act 1999 and Australian Radiation Protection and Nuclear

Safety Act 1988 will need to be amended to remove prohibitions against effective

regulation of nuclear power.

BIBLIOGRAPHY

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maps/

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sell-uranium-to-india

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Natural-Partners-In-Mining-

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9fff-1c460f161647

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res~Population%20size%20and%20growth~47

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res~Population%20size%20and%20growth~47

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(2013, March 28). Retrieved from http://www.indexmundi.com/australia/literacy.html

(2013, March 29). Retrieved from http://en.wikipedia.org/wiki/Demographics_of_Australia

(2013, march 29). Retrieved from

http://www.aifs.gov.au/institute/pubs/factssheets/2011/fs201103.html

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res~The%20National%20Year%20of%20Reading:%20libraries%20helping%20to%20make%20Au

stralia%20a%20nation%20of%20readers~206

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8a733ca2570ec001117a2!opendocument

(2013, April 5). Retrieved from http://www.australianminesatlas.gov.au/aimr/index.html

(2013, April 5). Retrieved from

http://www.australianminesatlas.gov.au/aimr/commodity/black_coal.html

(2013, April 5). Retrieved from http://www.australianminesatlas.gov.au/aimr/commodity/copper.html

(2013, April 5). Retrieved from http://www.australianminesatlas.gov.au/aimr/commodity/diamond.html

(2013, April 5). Retrieved from http://www.australianminesatlas.gov.au/aimr/commodity/gold.html

(2013, April 5). Retrieved from http://www.australianminesatlas.gov.au/aimr/commodity/iron_ore.html

(2013, April 5). Retrieved from http://www.australianminesatlas.gov.au/aimr/commodity/lithium.html

(2013, April 5). Retrieved from

http://www.australianminesatlas.gov.au/aimr/commodity/tantalum.html

(2013, April 6). Retrieved from http://www.australianminesatlas.gov.au/aimr/commodity/thorium.html

(2013, April 6). Retrieved from http://www.australianminesatlas.gov.au/aimr/commodity/tungsten.html

(2013, April 6). Retrieved from http://www.australianminesatlas.gov.au/aimr/commodity/uranium.html

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India Year Book 2013. (2013). Publication's Division, Ministry of I&B.

GROUP 4

A

GLOBAL/ COUNTRY STUDY AND REPORT ON

“Exploring emerging avenues of medical tourism in Ahmedabad

with special focus on packages for patients from Australia”

Submitted to

Gujarat Technological University

IN PARTIAL FULFILMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF

Dr. Harishchandra Singh Rathod

Core Faculty – NICM

SUBMITTED BY Bhumika Sharma (117690592014) Dipak Gothadiya (117690592047)

Jigar Bhatt (117690592029) Jill Modi (117690592037)

Vaidehi Shah (117690592008)

Batch 2011-13

MBA Semester III & IV

Shri Jairambhai Patel Institute of Business Management and

Computer Applications (NICM), Gandhinagar. MBA Programme

Affiliated to Gujarat Technological University, Ahmedabad

SUMMARY

Generally Medical tourism is defined as the process of patients travelling overseas for medical

care and procedures, usually because certain medical procedures are unavailable or too

expensive in their own country. There is sometimes a distinction between ‘medical tourists’ and

‘medical travellers’, where medical tourists are considered as those who travel overseas in

addition to a intended holiday, usually for elective treatment such as cosmetic, Dental surgery or

fertility treatment – while medical travelers Considered as those who travel overseas for the only

purpose of medical treatment

This phenomenon is fast becoming a worldwide, multibillion-dollar industry. The reasons of

treatment vary from patients to patients. The sector has immense potentialities in lending the

tourism activities.

Medical tourism can be widely defined as provision of 'cost effective' private medical care in

association with the tourism industry for patients needing surgical and other forms of specialized

treatment. This procedure is being facilitated by the corporate sector involved in medical care as

well as the tourism industry - both private and public.

Also, Wellness tourism is separate from medical tourism, and usually describes people travelling

for the purposes of maintaining or promoting their health and wellbeing. Wellbeing services may

include:

Beauty, such as Cosmetic and Body treatments;

Lifestyle, such as detoxification and transformation; and

Religious, such as Ayurvedic and yoga retreats.

Dental Treatment

MEDICAL TOURISM : A GLOBAL PERSPECTIVE

When patients go to a different country for either critical or optional medical treatment the

procedures of medical tourism occurs. From the United States, Several medical tourists are

looking for treatment at a quarter or sometimes even a 10th of the cost at home. From Canada, it

is often people who are irritated by long waiting times. From Great Britain, the patient can't wait

for treatment by the National Health Service but also can't afford to see a medical doctor in

private practice.

Medical tourism will be particularly attractive in the Australia, where an estimated 43 million

people are without health insurance and 120 million without dental coverage--numbers that are

both likely to grow.

Countries that aggressively promote medical tourism contain India, Malaysia, Thailand, Cuba,

Jordan, Costa Rica, Hungary, Israel, Lithuania, and. Belgium, Poland and Singapore are now

entering the field.

Globally the medical tourism sector has been expected at 60,000 to 85,000 inpatient travelers a

year with a global value of more than USD$20 billion annually.

AUSTRALIAN MEDICAL TOURISM MARKET

The National Visitor Survey (NVS) recognized that the number of local travellers travelling for

medical purposes is really high with 1.3 million medical purpose trips on average per year. This

can be explained by the existence of people living in rural Australia who need to go to see

specialists or stay in hospitals.

Australian Tourism Export Council (ATEC) has been widely supporting Australia’s international

growth in this niche market. Australia does not yet provide medical tourism in any structured

way.

INDIAN MEDICAL TOURISM

India is considered the leading country for promoting medical tourism-and now it is shifting into

a new area of "medical outsourcing," where subcontractors offer services to the overburdened

health check systems in western countries.

An estimated 150,000 of these travel to India for low-priced healthcare procedures every year. A

separate study by ASSOCHAM reported that the year 2011 saw 850,000 medical tourists in

India and projected that by 2015 this number would rise to 3,200,000.1

The reports estimate that medical tourism to India is increasing by 30 per cent a year.

Private healthcare to form a large share of the healthcare spend, and would increase to

US$ 33.6 billion in 2010 from US$ 14.8 billion in 2002.

Expected to generate employment opportunities for nine million people by 2012.

India offers easy access to visa facilities for overseas patients along with best emerging

medical infrastructure in large and tertiary towns. This shall generate earnings of about

US$ 19.5 billion in foreign exchange by 2012.

The market is estimated to touch US$ 77 billion by 2013 at a CAGR of 15 %.

MEDICAL TOURISM IN GUJARAT

Gujarat is one of the most preferred destinations for medical tourism in the country given

economic stability, industrial and agricultural development. Gujarat offers a vast array of

services & customized medical packages along with the cultural warmth

Gujarat’s medical care sector has made remarkable strides in latest years and is surging ahead

with latest facilities and technology. Gujarat has the State-of -the- art technology and the

In Gujarat world class medical services are available at comparatively low cost . MoUs signed

with private hospitals for providing high-quality healthcare

MEDICAL TOURISM IN KERALA

Kerala is already promoted as a health destination mostly for its Ayurveda packages Medical

tourism is promoted along with ayurveda and health packages.

Major hospitals like KIMS, Trivandrum, Lake Shore and AIMS in Kochi, and MIMS,

Calicut have pioneered combination with the Government promoting Medical Tourism.

Globalization and fiscal liberalization have given a boost up to the specialized Medical

Service Sector

Health Insurance Companies are playing a major role in Medical Tourism.Medical Tourism

Product

Medical tourism is like any relaxation product where service components like airlines, hotels,

travel companies, transportation, food outlets are offered and medical treatment at the best

hospitals

The medical treatments for different ailments are packaged with recuperative holiday

packages at world class tourist resorts.

Highly Developed and sophisticated hospitals of International standards located in Kerala.

WHAT IS INDIA OFFERING ?

Ayurveda

Cosmetic Surgery

Cardic Care

Joint Replacement Surgery

WHY MEDICAL TOURISM ?

The reasons for which we preferred Medical Tourism as our final topic for project are:-

Medical Tourism will act as a thunder for boosting the overall tourism area in India.

A well designed and promoted Indian healthcare segment as well as the coordinated

efforts of the medical society and the government of India will increase the values of the

healthcare in India. This in turn will be useful to local population as well.

The conventional Indian customs of healing if promoted and publicized well could do

wonders to the Indian economy.

Along with the medical sector comes a very essential sector for free known as the

insurance sector which can also maintain the Indian economy.

Other issue which leads India becoming a central destination for various medical

conferences which could progress the entry of the overseas tourists and in turn generate

good amount of revenue.

SIZE OF MEDICAL TOURISM IN INDIA

The global healthcare market is USD 3 trillion and size of the Indian healthcare industry is

around 1,10,000 crores accounting for nearly 5.2 per cent of GDP. It is likely to reach 6.2- 8.5

per cent of the GDP by 2012

It is expected that medical tourism will account about 3-5 per cent of the total delivery market

MT alone can contribute an additional revenue of Rs 5000 - Rs 10,000 crore for up market

tertiary centre by 2012

SWOT ANALYSIS OF MEDICAL TOURISM IN INDIA

Strengths

Quality Service at reasonable Cost

Vast supply of skilled doctors

high success rate in operations

worldwide Reputation of hospitals and Doctors

Weaknesses

No strong government support to promote medical tourism

Strong competition from countries like Thailand, Malaysia, Singapore

Lack of adequate infrastructure

No proper authorization and regulation system for hospitals

Opportunities

It also offers excellent medical expertise, with up-to-date techniques and technologies

used to provide excellent results.

More proactive job from the government of India in terms of framing policies.

Growing awareness about ayurvedic medicines, yoga etc.

Growing number of multispeciality hospitals.

Threats

Aggressive policies adopted by other countries like Australia, Singapore in promoting

tourism are also not helping.

Political instability within India in Kashmir and Other State has also reduced tourist

traffic.

A GLOBAL HEALTH DESTINATION PROMOTING MEDICAL TOURISM IN

GUJARAT

The Government of Gujarat sees this occasion as a foundation for making Gujarat a Global

Health Destination. The long-term plans include:-

Establish a Medical tourism council

M.O.Us with private hospitals for stipulation of high quality health care.

Introduction of Therapy Home Act

Endorsement of service providers so that quality services are assured.

Medi City

Opportunities for private contribution in public hospitals

Investments in Capacity Building Schools of Public Health and Hospital Management

AHMEDABAD A PROMISING PLACE FOR MEDICAL TOURISM

Ahmedabad is fast adopting latest technologies, better quality and health care services.

Because of the dedication, accessibility of good infrastructure, hi-tech gadgets and

equipments and dedicated staffs, more and more Overseas Patients are coming to

Ahmedabad.

In the upcoming years, this megacity may extend into a full fledged health care hub of the

country.

Also Emergency Medical Services (EMS) set up are well recognized in all corporate

hospitals.

All these hospitals keep strict hygienic and clean conditions and have almost all medical

services.

The primary reasons why Overseas Patients come to Ahmedabad/India are:

Cost effective treatment.

Know-how of international standards.

Better Doctor-patient-relationship.

Reliable medical services.

Patient feel homely and friendly here because of known language.

APOLLO HOSPITALS , AHMEDABAD

Apollo Hospitals started as a 150 bedded hospital in Chennai in 1983. At Present, Apollo group

is not just one of the country's premier healthcare providers but has also played a revolutionary

position in helping India become the centre-of-excellence in global healthcare.

Apollo has succeeded in being in excess of just a quality healthcare provider. It has been a major

player in scripting the medical landscape of the country. This is mainly because the group has

constantly been at the helm of several game-changing innovations in Indian healthcare.

FACILITIES AT THE APOLLO HOSPITALS, AHMEDABAD

Apollo Hospitals, Ahmedabad is a 400-bed hospital has an overall achievement of 98%.

It handles an average of 20,000 patients per year.

Well-known First private Oncology Unit set up in Gujarat

Developed the biggest and most sophesticated Dialysis Unit with an in-house Reverse

Osmosis plant

Developed a World Class Medical Health Check facility

Performed Metal on Metal Knee Replacement surgeries

Performed Renal Transplant for both live donor and cadaver

PAYMENT OPTIONS

Wire Transfer

Credit Cards - Master / Visa / American Express - at the time of admission

Online Payment

Travellers cheque

Cash

THE BASIC CARE PACKAGE INCLUDES THE FOLLOWING SERVICES : -

Website & Email Communication 24x7

Telephone Medical Consultation 24x7

Medical Visa Assistance

Video Conferencing

Airport Transfers

Air Ambulance

APOLLO PATIENT CARE TEAM

Airport Care

Pre - Admission Care

24 x 7 Coordination with the Doctors, Nurses & Hospital Staff

Post Surgery Care

Tour Care

Follow up with Doctor

ADVANCED CARE PACKAGE

Additional amenities Available On Nominal Fees

Mobile phone with prepaid connection.

Laptop on rent, Internet.

Locker Facility For Valuables.

Finance and Overseas Exchange services etc.

International conferencing facility

Postage & Couriers

Travel Desk

Cyber Café

Library

Bank ATM

MEDICAL PACKAGES OF APPOLO HOSPITAL

The medical package suitable for a patient depends on past treatment and current condition,

based on which the most appropriate treatment will be made available.

Some of the Medical Packages available are for :

Dental Care

Heart Care

Heart Surgery

Health Check Up

Cosmetic Treatment

Hip Replacement

Cost Comparison Between India, USA, Thailand, Singapore

Procedure

US Cost India Thailand Singapore

Heart Bypass

$130,000 $10,000 $11,000 $18,500

Heart Valve

Replacement

$160,000

$9,000

$10,000

$12,500

Angioplasty

$57,000 $11,000 $13,000 $13,000

Hip

Replacement

$43,000 $9,000 $12,000 $12,000

Hysterectomy

$20,000 $3,000 $4,500 $6,000

Knee

Replacement

$40,000 $8,500 $10,000 $13,000

Spinal Fusion

$62,000 $5,500 $7,000 $9,000

DENTAL PACKAGE:

These are estimated figure of cost of Dental Treatment in Apollo Hospital. Also, These Figures

includes the Accommodation & other advanced care facilities.

In India, Apollo Hospital Provides Dental Treatment to their Patients on below mentioned cost :

Sr.

No Treatments Cost of Treatment

Cost of stay incl

meals and cab

Cost of travel Total Cost

1 Upper/Lower Full Dentures 20000 3000 100000 123000

2 Single Cast Partial Denture 10000 3000 100000 113000

3 Single Implant without

Crown 30000

3000 100000 133000

4 Tooth Coloured Filling 10000 3000 100000 113000

5 Bleaching 15000 3000 100000 118000

6 Root Canal Treatment 2000 3000 100000 105000

7 Ceramic Crown 4000 3000 100000 107000

8 Precious Metal Crown 20000 3000 100000 123000

9 Flexible Partial Denture 10000 3000 100000 113000

10 All Ceramic Crown 5000 3000 100000 108000

11 Scaling 1000 3000 100000 104000

12 Extraction of Tooth 500 3000 100000 103500

13 Impaction of Third Molar 3000 3000 100000 106000

14 Silver Filling 550 3000 100000 103550

* These figures do not suggest the actual cost. Actual cost of treatment varies from case to case.

COSMETIC PACKAGES

These are estimated figure of cost of Cosmetic Treatment in Apollo Hospital. Also, These

Figures includes the Accommodation & other advanced care facilities.

In India, Apollo Hospital Provides Cosmetic Treatment to their Patients on below mentioned cost

:

Particulars Costs (INR) Travel Hotel per day (incl.

Cab facility and meals)

Hair Transplantation

Micro-Mini-Follicular 30000-100000 100000 3000

Nose Surgery

Saddle Nose 15000 100000 3000

Hump Nose 15000 100000 3000

Alar Reduction 15000 100000 3000

Tip plasty 15000 100000 3000

Nasal Implants 15000 100000 3000

Osteotomy 15000 100000 3000

Septal Deviation 15000 100000 3000

Lip Surgery

Lip Reduction – one 25000 100000 3000

Lip augmentation

:by Fat 25000 100000 3000

:by Filler Inj 5000 100000 3000

Chin Surgery

Augmentation by Silicone

Implantation

30000

100000 3000

Reduction 30000 100000 3000

Ear Surgery

Pinna correction 20000 100000 3000

Bat Ear 25000 100000 3000

Split Lobule 5000 100000 3000

Face

Face Lift 50000 100000 3000

Forehead Lift 25000 100000 3000

Dermabrasion 40000 100000 3000

Chemical Peel 5000 100000 3000

Body Contouring

Liposuction-one area 35000 100000 3000

Tummy Tuck 50000 100000 3000

Thigh Lift 40000 100000 3000

Brachiaplasty 40000 100000 3000

Fat Filling 15000 100000 3000

Buttock Augmentation 50000 100000 3000

Skin Scars

Excision-Revision 10000 100000 3000

Excision-Grafting/

Resurfacing

15000

100000 3000

Vitiligo-Melanocyte

Transfer

25000

100000 3000

* These figures do not suggest the actual cost. Actual cost of treatment varies from case to case.

AYURVEDA PACKAGE

These are estimated figure of cost of Ayurvedic Treatment in Kerala. Also, These Figures

includes the Accommodation & other advanced care facilities.

In India, Most of the Hospital of Kerala Provides Ayurvedic Treatment to their Patients on below

mentioned cost :

Programme Rates

SINGLE DOUBLE

7 days 10500 14000

14 days 10000 13500

21 days 9500 13000

28 days& above 9000 12500

* These figures do not suggest the actual cost. Actual cost of treatment varies from case to case.

All rates are inclusive of accommodation in Ac Superior Room on full board basis for one

night. For accommodation in Suite room/Cottages Rs. 3000 / 2000 per day will be extra.

Includes consultation charges and ayurvedic treatment charges.

No extra room charges for accompanying person sharing the room with person undergoing

ayurvedic treatment.

Complimentary pick up / drop to Airport.

Food element for extra persons occupying the room without undergoing the treatment will

be Rs.2000/-

Travel charges from Sydney to Ahmedabad will be added at Rs. 100000.

PROMOTION OF MEDICAL TOURISM

The key "selling points" of the medical tourism industry are its "cost effectiveness" and its

combination with the attractions of tourism. The price advantage is however offset today for

patients from the developed countries by concerns regarding standards, insurance coverage and

other infrastructure. This is where the tourism and medical industries are trying to pool

resources, and also putting pressure on the government.

The entire concept of medical tourism hangs on the efficiency, skill and competency level of the

doctors, specialists and consultants etc.

The incredible India campaign has catapulted India in the top 5 must visit unique destination for

lonely planet but so far as it goes Thailand, Bangkok and other east Asian countries are still

market leaders. Therefore there is still scope that with specific marketing, advertising and

promotion campaigns considerable number of tourists can be attracted.

MARKETING MODEL OF MEDICAL TOURISM

Medical tourism is an emerging global industry, with a range of key stakeholders with commercial

interests including brokers, health care providers, insurance provision, website providers and conference

and media services.

CRITICISM FACED BY MEDICAL TOURISM INDUSTRY

Most of the countries that offer medical tourism have weak malpractice laws, so the patient

has little recourse to local courts or medical boards if something goes wrong.

Inferior medical care would not be worth having at any price, and some skeptics warn that

Third World surgery cannot possibly be as good as that available in the United States.

Government and basic medical insurance, and sometimes extended medical insurance, often

does not pay for the medical procedure, meaning the patient has to pay cash.

Lack of enthusiastic about India's push to become a health care destination.

WHERE DOES INDIA NEED TO IMPROVE

High Hurdles

Sketchy Information

Infrastructural mess

Adoption Of latest Technology

International Focus

INITIATIVE BY INDIAN GOVERNMENT TO PROMOTE MEDICAL TOURISM :

The medical tourism industry in India is presently earning revenues of $333 million. Encouraged

by the incredible pace of growth exhibited by the industry, the Confederation of Indian Industry

(CII) and mckinsey have predicted that the industry will grow to earn additional revenue of $2.2

billion by 2012.

To provide for brighter prospects for the industry, the hospitals can also acquire international

accreditation, integrate traditional and clinical treatments and offer end-to-end value added

services by tying up with tour operators, airline carriers and hotel companies. Hospitals can also

allow overseas patients to pay through credit and ensure proper support services to overseas

patients after they return to their native countries.

Lastly, the Government of India can also reinforce its support through quick visa processing,

improved flight connectivity and infrastructure development.

Government and State Governments have taken various steps for the promotion of tourism and

attainment of the goal of sustainable tourism development.

Tourism Ministry Promotes India As A 365-Day Destination

Tourism Ministry Issues Guidelines For Adventure Sports

Helicopter Tourism Service

Medical Tourism Brochure Released

ESTIMATED MARKET SHARE OF GLOBAL MEDICAL TOURISM

Country Market Share % (by 2010

revenue)

5 year Estimated Revenue

CAGR (2010-2015)

Thailand 6% 55%

Singapore 4% 30%

Dubai 3.5% 25%

Jordan 3.5% 15%

Turkey 3% 20%

India 2% 35%

Malaysia 2% 30%

Philippines 1.5% 25%

Mexico 1.5% 15%

Japan 1.2% 55%

Indonesia 1.1% 15%

South Africa 1.0% 10%

Poland 0.9% 15%

Costa Rica 0.9% 20%

Panama 0.9% 15%

Hungary 0.8% 20%

South Korea 0.5% 30%

Israel 0.5% 15%

Taiwan 0.3% 15%

All Others (USA, UK, etc) 60%

BIBLIOGRAPHY

(n.d.). Retrieved April, 3, 2013 from

http://www.allmedicaltourism.com/articles/destinations/australia/

(n.d.). Retrieved April 3, 2013, from

http://www.ret.gov.au/tourism/Documents/Tourism%20Policiy/medical/MedicalTourismreport_

Final.pdf

(n.d.). Retrieved April 3, 2013, from

http://ahmedabadmedicalassociation.com/medical-tourism/medical-tourism-gujarat/

(n.d.). Retrieved April 4, 2013, from http://en.wikipedia.org/wiki/Medical_tourism_in_India

(n.d.). Retrieved March, 27, 2013 from

http://www.crctourism.com.au/wms/upload/resources/WellnessTourism_Ind%20Summary%20

WEB%20(2).pdf

(n.d.). Retrieved March 28, 2013, from http://www.heart-consult.com/articles/growth-medical-

tourism-india

(n.d.). Retrieved March 25, 2013, from http://ahmedabadmedicalassociation.com/medical-

tourism/medical-tourism-gujarat/

(n.d.). Retrieved March 30, 2013, from http://dspace.iimk.ac.in/bitstream/2259/581/1/405-

417+Mousumi.pdf

(n.d.). Retrieved March 27, 2013, from

http://zenithresearch.org.in/images/stories/pdf/2011/July/16%20SUMAN%20KUMAR%20DA

WN.pdf

(n.d.). Retrieved March 28, 2013, from http://dspace.iimk.ac.in/bitstream/2259/579/1/369-

379+Joseph+Cherukara.pdf.

GROUP 5

A

GLOBAL / COUNTRY STUDY AND REPORT

ON

“TEXTILE INDUSTRY IN AUSTRALIA”

Submitted to:

Gujarat Technological University

IN PARTIAL FULFILMENT OF THE

REQUIREMENT OF THE AWARD OF FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Under The Guidance Of

Prof. Shahir Bhatt

Submitted by:

Manish Dabhi (117690592106) Kandarp Parekh (117690592043) Hardik Rathod (117690592082) Sudeep Pathak (117690592035) Shefali Khankhanwala (117690592016) Sneha Dalwani (117690592059)

Batch 2011-13

MBA Semester III & IV

Shri Jairambhai Institute of Business Management and Computer

Application (SJPI-NICM), Gandhinagar

MBA Programme

Affiliated to Gujarat Technological University, Ahmedabad

March 2013

EXECUTIVE SUMMARY

This report is made with intention to study the Textile Industry of Australia as well as comparing

the textile industry with that of our country and understand the position, operations and many

other aspects relating to the same industry. It also reveals the possibility of trade and business

between both the countries and government policies for the industry in both the countries.

First part of the report contains some insides of Australia regarding demography and economic

conditions of the country. Australia is a continent having ocean in all the borders. Population of

Australia is about 22mn out of them approx. 69% is literate. Australia comes in a category of

developed countries where the country is having fifth highest per capita income.

Second part represents the condition as well as structure of textile industry of Australia and that

of India, Various government norms for the industry in both the countries and overview of the

performance of industry in recent decades.

Australian textile industry is mostly associated with import of raw material and finished products

although Australian industry is also engaged in designing of fashionable garments, shoes

manufacturing and wool product manufacturing and exporting wool products to United States,

United Kingdom and other European countries. Australian textile industry is contracting day by

day and the country is now more dependent on the imports of the same.

The Australia clothing and textiles industries have been the first among Western economies to

face the realities of open trading arrangements and internationalised markets. The effects were

devastating for most of the 1985 workforce (Weller and Webber 1999). However, after twenty

years of reform, some parts of the industry have established a place in the new economy.

This positioning exemplifies the contradictions of market economies. On the one hand, the sector

is no longer viewed as backward and low skilled, but is now understood as an essential

component of ‘creative’ advanced capitalist economies and as a sector integral to regional

development and place marketing. As the new industry orients to design and fashion, it is forging

new associations with consumer goods sectors and creating new market partitions based on

lifestyle branding. On the other hand, the Dickensian conditions of the unregulated parts of the

Outwork production sector epitomise the dark side of deregulation and the perils of a trade-

exposed and market-led economy.

The Australian textiles, clothing and footwear (TCF) industry cover a range of work that can be

described in three broad sectors:

Sectors which process natural and synthetic materials such as early stage wool processing,

cotton ginning and hide, skin and leather production

Production sectors – clothing production, textile production, footwear production, leather

goods production, technical textiles

Service sectors – dry cleaning operations, laundry operations, footwear repair

There are 12 major sectors within the TCF industry in Australia:

Cotton ginning

Textile fiber, yarn and woven fabric

Textile product manufacturing

Carpet manufacturing

Knitting mills

Men’s and boy’s wear manufacturing

Women’s and girl’s wear manufacturing

Sleepwear, underwear and infant clothing manufacturing

Tailoring and clothing accessories manufacturing

Footwear manufacturing

Leather and leather substitute product manufacturing

Trade between Australia and India has grown strongly over recent decades, with a particularly

sharp upswing since 2002 (see Chart 3.1). Two-way trade between Australia and India in 2008-

09 reached US$16 billion, of which goods trade was the largest component, atUS$12.9 billion.

Two-way services trade has risen markedly off a low base and amounted to US$3.1 billion in

2008-09. The growth in trade between India and Australia is based on the complementarities

between the two economies. India has been able to use Australian exports of items, such as iron

ore and coal, to meet its growing economic demands, fill infrastructure gaps and as inputs to its

own exports.

Australia exports textile products to India and imports textile merchandise as well. Similarly

India also exports textiles to Australia and imports wool from Australia. Currently China is the

dominant player in textile imports for Australia followed by India. But there is tremendous

potential both for Australia and India to boost up their textile imports and exports. Because there

is a lot of growth potential in the textile industry.

Indian textile industry is the second largest industry of the country and it contributes a big chunk

in the GDP, employment and exports. Government of the country also supports in terms of R &

D facilities, duty exemptions, technological up gradation support and support in exporting the

textile. India is one of the biggest exporter in the world and many well-known brands of textile

are from the India. Indian textile industry is like rising sun and there are lot more opportunities of

business as well as import and export for the country.

Thus, it is worth to say that Australian Textile industry is in the decline in most areas where as

Indian Textile industry is in the growth stage. Though India is exporting many textile related

products to Australia, India has many opportunities to increase trading of textile and related

products with Australia and it is only possible through good infrastructure, better R & D and

government support.

BIBLIOGRPHY

Aus Custom Tariff. (n.d.). Retrieved from (customs.gov.au/site/page5663.asp)

Austrade. (n.d.). Retrieved February 19, 2013, from google:

http://www.austrade.gov.au/Buy/Australian-Industry-Capability/default.aspx

australian government. (2012). Retrieved february 18, 2013, from google:

http://www.dfat.gov.au/publications/trade/trade-at-a-glance-2012.html

Australian Government-custom services. (2012). Retrieved feb 21, 2013, from LABELLING

REQUIREMENTS FOR CLOTHING:

http://www.customs.gov.au/webdata/resources/files/fs_clothing.pdf

AWI. (2012). Retrieved feb 21, 2013, from Licensing: http://www.wool.com/Design-and-

Market_Woolmark_Licensing.htm

J.N.Singh. (2012). INDIAN TEXTILE AND CLOTHING SECTOR. Retrieved feb 21, 2013, from

http://www.unescap.org/tid/publication/tipub2500_pt1chap6.pdf

smart company. (2012, january 17). Retrieved february 18, 2013, from google:

http://www.smartcompany.com.au/economy/20120117-your-sector-by-sector-guide-to-

2012.html

unknown. (2012, july 26). index mundi. Retrieved february 18, 2013, from google:

http://www.indexmundi.com/australia/#Introduction

Watch, E. (2010, june 30). Trade Barrier. Retrieved feb 21, 2013, from Economy watch:

http://www.economywatch.com/international-trade/trade-barriers.htm

GROUP 6

A

GLOBAL COUNTRY REPORT ON

“The Wine Industry in Australia”

Submitted By:

Rinku Khatwani (A-02) 117690592015

Akshay Rajput (A-06) 117690592098

Ravijeet N. Jadav (A-24) 117690592009

Rajat Patel (A-36) 117690592027

Prateek Pandey (A-53) 117690592091

Manish Panjani (A-60) 117690592049

MBA Semester III & IV

MBA PROGRAMME 2011-2013

In partial fulfillment of the requirements for MBA semester-IV Programme for the

award of the degree of

MASTER OF BUSINESS ADMINISTRATION

SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT AND COMPUTER

APPLICATIONS (NICM-MBA)

GUJARAT TECHNOLOGICAL UNIVERSITY,

AHMEDABAD

Summary

The rapid growth of the Australian wine industry has seen Australia evolve into one of

the largest wine producing nations in the world. Although this growth has been good for

industry in general, it has brought many challenges as well, in particular, fierce

competition. In order to compete and remain viable, wineries must adopt new

information systems to obtain a competitive advantage.

The Australian wine industry is in a period of adjustment brought about by a number of

factors, both cyclical and non-cyclical in nature. They include abundant red wine

supplies (albeit in lesser amounts this year and progressively less over the next few

years), reduced profitability, drought, unfavorable exchange rates and a shift in the

value-mix opportunity for Australian wine overseas. A feature of the shift in the value

mix opportunities for Australian winemakers is that these opportunities are at relatively

low price-points and will be accessible only to high-volume, low-cost operators. For the

majority of brand owners however, challenging times and tightening margins are likely

to continue. As a result of these forces, industry investment is in a wait-and-see mode.

Investors are cautious about the sustainability of the current low price-point

opportunities, about the ability to produce at prices required to meet lower price-points

and about the likelihood of higher price-point ambitions being realizable in a crowded

market-place.

Nevertheless, the Australian wine industry’s competitive advantages are still in place

and subject to the Australian wine industry’s willingness to continue capitalizing on

these advantages, the medium- to longer-term prospects remain strong. A revival in

planting will be required to meet anticipated demand and as the remaining supply

abundance unwinds and it is expected that a new planting cycle will peak at 7 000

hectares in 2008, up nearly 70% on preliminary estimates of planting in 2002 -

representing roughly half the level of planting reached in the frenetic peak of recent

planting in spring 1998.

By 2010, wine grape production is expected to grow to 2.2 million tonnes, up 27% on

the production forecast for 2004 (58% up on the drought-constrained 2003 harvest).

Exports are expected to reach 108 million cases in 2009-10, 90% up on 2002-03. Lower

price-point sales underpin the projections contained in this paper. If these sales prove to

be unsustainable in the longer term, projected plantings and production will be lower.

Australia is the fourth largest wine exporter by volume behind Italy, France and Spain.

In 2010, 789 million litres of wine were exported making up 4% of the total wine

produced worldwide. In the same year, domestic wine consumption rose to 471 million

litres. Australia exports wine products to over 100 countries with the main markets of the

UK, US and Canada accounting for a combined $2.1 billion market value.

Australia's proud wine history

New South Wales was the site of Australia's first vineyard and winery, established in

the early 1800s.

South Australia is home to some of the worlds' oldest vines, dating back to the

1850s.

More than 60 designated wine regions produce in excess of 100 different grape

varieties.

Queensland has recently experienced a winemaking renaissance.

Victoria is renowned for its diversity of climates and regions.

Tasmania produces some of the world’s most exciting cool climate wines.

Western Australia is famous for great wines from stunning locations.

Chardonnay, Shiraz and Cabernet Sauvignon are the top 3 varieties crushed.

Australia has world-renowned wine research and educational facilities.

Influenced by European and Asian immigrants, Australia’s food and wine culture

encourages innovation and excellence.

Wine is produced in over 60 regions in Australia.

The industry directly employs 31,000 people.

South Australia accounts for 43% of the national wine grape crush.

There are 8,347 vineyards in Australia with a combined area of 166,665 hectares.

Comparative Position of Wine Industry in India states the following:

Strength

• Indian wine consumption has grown 25-30%, are expected to potentially increase

in the coming years.

• Good climate for cultivation of grapes and grapevines.

• Increasing urban population.

• Youth are craving a substitute to hard liquors

• Youth are flourishing a more refined taste.

• Wine is becoming more acceptable to women and youth.

Weaknesses

• Wine remains an elite taste.

• Wine is difficult to store in India due to lack of cellars and refrigeration.

• Less than 50 percent of the population is legally old enough to drink (25 yrs. old).

• Deprived awareness of wine and infrastructure.

Opportunities

• 100 million persons will be legally allowed to drink alcohol (25 yrs. old) in the next

5 years.

• Supermarkets are emerging to support wine distribution infrastructure.

• Domestic market with rising disposable income.

• Growth in tourism industry.

• Great potential for the growth of the U.S wine exports.

Threats

• The Indian constitution discourages alcohol consumption.

• Wine viewed as a misdeed by some.

• Indians still prefer scotch than other alcohol products

• Advertising for alcoholic beverages is banned.

• Underdeveloped supply and distribution chain

If we have a glance over the climatic conditions of India than different climates exist

within the country due to India’s large size and varied topography. There are three

distinct agro climatic Zones in India which are as follows:

Sub-tropical Region

Hot Tropical Region

Mild Tropical Region

The current Indian scenario states that India has tremendous potential to be the major

source of agricultural products. The Role of Supply Chain in Indian Organized Retail

can be successful by warehousing goods and supply chain council to explore solutions.

The GOI (Government of India) has simplified import procedures and has reduced

import duties to encourage imports of capital goods and raw materials. Import

liberalization is expected to continue as a part of the new economic policies of the GOI.

India's infrastructure of roads, rails, ports and airports is the most vulnerable part of its

Supply chain presence. While India's rail network exceeds 63,000 kilometres, the best

two-thirds are broad-gauge and old. India's major ports are Haldia, Mumbai,

Vishakhapatnam, New Mangalore, Jawaharlal Nehru Port Trust and Kandla.

Facts & figures of Wine business in Australia:

There is no requirement for companies or individuals to hold an import licence.

Australia is the fourth largest exporter of wine in the world, shipping more than 400

million liters of wine globally every year.

More than 100 countries currently enjoy Australian wines.

According to the Australian Department of Foreign Affairs and Trade, Australia wine

exports were worth $2.5 billion.

87% of the local wines consumed by Australians were table wines, according to the

Australian Department of Foreign Affairs and Trade. Sparkling and fortified wines

accounted for the remaining portion, at 8% and 5% respectively.

Australia sold approximately 999 million liters of wine in one recent year. Of this, 414

million liters were sold domestically while the remaining 584 million liters were

exported.

Tax Payments:

Duty Rates

Indirect taxes

Goods and Services Tax (GST)

Wine Equalization Tax (WET)

WET is applied at 29% of the purchase price at inwards duty free OR 29% of the

importation cost i.e. customs value + customs duty + transport/insurance costs.

Value Added Tax (VAT)

License & Approvals:

License to Export

Product Registration

Export Permit

Bulk Consignee Approval (for exports of bulk wine)

India is an emerging in the trusts of senses. Opportunity abounds, with great potential

for the growth of Australia wine exports in the bustling market of Mumbai, New Delhi

and Bangalore. However, risk abounds as well in the form of a protections regime of

alcohol and taxation, an under-developed supply and distribution chain that threatens

product integrity, and most importantly, a population that is largely unfamiliar with wine

and its place in Indian life.

It is also essential to note that some of the states, notably Bihar, Daman & Diu,

Jharkhand, Tamil Nadu and Uttaranchal, either prohibit or restrict import and sale of

bottled in origin (BIO) wine. States such as Gujarat, Lakshadweep, Mizoram, Nagaland

and Manipur have complete prohibition of alcoholic beverages including wine.

Talking about excise duty, Maharashtra has abolished excise duties on wine whereas;

an excise duty of USD 22 per case has been levied on other alcoholic beverages.

Karnataka has excise duty of USD 0.08 per bottle on wine whereas; 40-50% excise duty

levied on other alcoholic drinks. Similarly, in Himachal Pradesh, excise duty is USD 0.30

to USD 0.40 per case for wine and USD 3.35 to USD 7.4 per case for other alcoholic

beverages.

There are twenty eight States and seven Union Territories in India. Some states

formulate their own policies for taxation of wine and spirits, and others operate under

policies determined by the Central government. A few Indian States also maintain a ban

on sale of alcoholic beverages such as wine

In India, to upgrade the quality of wine, Indian Grape Processing Board were

established. The key objectives of the Indian Grape Processing Board include focus on

research & development, extension and quality upgrading, market research and

information and domestic and international promotion of Indian wine.

India has a complicated tax structure when it comes to manufacturing and sale of

alcoholic beverages such as wine. The main tax/duty that the Union Government is

empowered to levy on the wine industry is Customs duty and there are several taxes

and duties levied by the State Governments.

The taste and preferences of the Indian population towards still wines, and more

specifically, table wines. Though a market for champagne and sparkling wines, these

varieties sell at much lesser rate. In general, slightly sweet wines and the varieties of

Sauvignon Blanc, Chenin Blanc, Rieslings, are fairly popular and also pair well with

typical Indian dishes. Similarly, rose and blush have been projected as good fits for

Indian market. However the majority sales have stayed on traditional still red and white

wines. In regards of presentation, wine producer have two different demographics in

Indian market upon which to focus: the upper class and the general class consumer.

While the upper class prefer the classic presentation.

The level of growth in Indian wine market is in large part driven by the upper class

Indians, which is widely understood to be 12% of the population and therefore

approximately 20 to 25 million people. Many of these Indians have increasing levels of

disposable income and international experience and lifestyles that they have brought

back to their country. These changing taste and preferences coupled with higher levels

of disposable income and increasing availability of domestic and imported wines, have

resulted in the emergence of India as a viable wine market.

Indian alcohol consumption has traditionally focused on spirits and beer instead of wine.

This long-standing dominance of spirits and beer as the alcohol beverages of choice

among Indians has made it difficult for wine to take a place in the market; however,

despite this structure wine is becoming more accepted, sought-after, and available.

The two largest and dominating markets in India are not regions, but rather the city-

areas of greater Mumbai and Delhi. It is estimated that as much as 65% of the total

Indian wine consumption is accounted for in these two locations. The number reaches

an estimated 80% when including other major cities such as Bengaluru, Chennai,

Kolkata (formerly known as culcutta), Nashik, and Pune. This market dominance of

Mumbai and Delhi ensures their place and the fulcrum points foe any producer or

distributor looking to increase sales of India. The city of Bengaluru,and the State of Goa,

are a secondary, yet important focus for marketers as well. The cities of Kolkata,

Chandigarh, Nashik, and Pune are all important niche markets and should be followed

and acted upon as appropriate. Chennai and Hyderabad have much potential due to the

growth of their IT industry but their governments are not yet conductive to wine sales.

In the wine industry case, collaboration was the means through which knowledge

enhanced competitive performance. Collaboration was the means by which knowledge

of export opportunities, and of innovation, was developed and disseminated. A second

key idea emerging from this study concerns the potential power of clustering. Through

linkage in clusters, the competitive strength of individual firms can be augmented

through association with related and supporting firms.

WINE IN GUJARAT

Selling and consumption of alcohol is illegal in some parts of India. I’ve got your

attention now right? Yes, it’s true. There are a few states, and one union territory, where

alcohol is not permissible by law. This modern day prohibition has been met with

everything from cheers to jeers by local residents, and anger by some tourists who

believe tour operators are responsible for not only telling them ahead of time that

alcohol is not allowed, but should also find a way to supply their drink of choice.

Gandhi, the professor ideas tardy music says’ Gandhi said that a target of the new India

should be free from alcohol that society. This means that there can be taken out of the

law will be present to theory. In Gujarat, where a dry state to protest against the support

of the people there are the people. Dry state's supporters say that the sale of liquor due

to Gujarat is a safe place for women. But it is also true that in Gujarat illegal liquor

business for years fruit flower. Much illegal liquor from drinking in a large number of

people has already been death. Dry state opposition to the people to say that the selling

wine due to illegal alcohol is sold well to drink wine is not safe. The dispute between the

debates on dry state. Although the recent situation in Gujarat and it seems that the local

people to drink wine, currently does not seem to be found.

Permit for Gujarat

Foreigners (including NRI’s) can purchase a 30 day liquor license/permit at designated

5 star hotels and other locations. To get a 1-month permit, you’ll need your passport

plus some proof of the address where you’re staying while in Gujarat, be it a hotel

business card or just an address scribbled on a piece of paper. Most hotels require a

proof of stay over 24 hrs. Cost is Rs 100-200. You are then “entitled” to 2 units of

alcohol each 10 days. A unit is a 750ml bottle of spirits. Visitors staying longer than 30

days who wish to drink will have to apply for a non-resident permit. Keep in mind this 30

day permit is a one shot deal. Once it expires, even if you leave the state and return

months or years later, it is said you cannot apply for a new permit.

In Gujarat, the more resourceful “get a medical certificate from a designated civil

surgeon, who prescribes a dose of liquor necessary for curing an ailment.”

As of February 15, 2010, tourists arriving via Ahmedabad’s airport can purchase a liquor

license on the spot via the Gujarat Tourism Department counter located inside the

domestic terminal. The process to obtain the permit in the city is the same as at the

airport.

BIBLIOGRAPHY

(n.d.). Retrieved March 14, 2013, from http://www.wineaustralia.com/

(n.d.). Retrieved January 20, 2013, from http://www.austrade.gov.au/Wine-

overview/default.aspx

(n.d.). Retrieved January 17, 2013, from http://australia.gov.au/about-

australia/australian-story/australias-wine-industry

(n.d.). Retrieved February 4, 2013, from

http://www.wineaustralia.com/en/Production%20and%20Exporting.aspx

(n.d.). Retrieved February 12, 2013, from

http://www.indianwineacademy.com/item_4_533.aspx

(n.d.). Retrieved December 12, 2012, from

http://indianwine.com/cs/blogs/indian_wine/default.aspx

(n.d.). Retrieved January 10, 2013, from http://www.wine-

searcher.com/merchants/australia,wholesale,13

(n.d.). Retrieved January 27, 2013, from http://www.wineinmoderation.eu/en/wine-a-

culture-of-moderation/history-of-wine

(n.d.). Retrieved January 16, 2013, from http://www.flex-news-

food.com/console/PageViewer.aspx?page=16836

(n.d.). Retrieved March 2, 2013, from http://wineindia.in/national/item/822-india-grape-

harvest-wine-festival-2013

(n.d.). Retrieved February 16, 2013, from http://www.rncos.com/Report/IM296.htm

(n.d.). Retrieved February 15, 2013, from http://www.winenxt.com/indian-wine-

news/2010/08/presentation-an-analysis-on-indian-

(n.d.). Retrieved January 24, 2013, from http://wine-industry-by-s-siyamalan-and-s-r-

swaminathan

(n.d.). Retrieved February 12, 2013, from http://www.igpb.in/indian-wine-

sector/policies.html

(n.d.). Retrieved December 15, 2012, from

http://www.indialawoffices.com/iloPdf/wineindustry.pdf

(n.d.). Retrieved March 2, 2013, from http://www.euromonitor.com/wine-in-

australia/report

(n.d.). Retrieved March 3, 2013, from http://crisil.com/research/list-of-industries.html#

(n.d.). Retrieved March 2, 2013, from

http://intgrativecasestudy.wikispaces.com/1.1+Wine+Industry+-+Porter+Analysis

(n.d.). Retrieved March 4, 2013, from http://www.grin.com/en/e-book/182605/wine-

industry-france-and-australia?partnerid=googlebooks

GROUP 7

A

GLOBAL COUNTRY REPORT

ON

“ORGANIC FARMING INDUSTRY OF AUSTRAILA”

Submitted To:

Prof. Fahmida Shaikh

Submitted By:

Ripal Chauhan A-01 117690592094

Parita Kachhela A-09 117690592109

Ekta Chaudhari A-10 117690592115

Tarkik Dave A-26 117690592119

Nitin Nihalani A-31 117690592019

Rupal Modi A-52 117690592113

MBA Semester III & IV

MBA PROGRAMME 2011-2013

MASTER OF BUSINESS ADMINISTRATION

SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT AND

COMPUTER APPLICATIONS (NICM-MBA)

Submitted to

GUJARAT TECHNOLOGICAL UNIVERSITY

SUMMARY

Organic farming has been supported through policy measures which contribute to the

growth of the organic sector in the European Union. However, the degree and type of

support for organic farming differs substantially between Member States. Against this

background, this study aims to document and assess the public support by describing,

reviewing and categorizing the instruments and measures used and levels of

support offered. It identifies and analyses important issues surrounding the

implementation of public support with a view to putting forward conclusions

relevant for the future development of the policy.

It provides a comprehensive description and review of the public support

measures in place for organic farming, including a categorization of the mix of

the measures used. It covers the following elements in 27 Member States referring to

the current RDP programming period 2007 ‐ 2013:

For more than 20 years, European policies for organic farming have been developed on

a number of levels. The first scheme specifically targeted at organic farming was

introduced in Denmark in 1987, shortly followed by other countries. As part of

the MacSharry reform of the Common Agricultural Policy (CAP) in 1992, the

introduction of agri‐environment programmes provided a unified framework for

supporting conversion to and maintenance of organic production across the EU.

The rationale of this support was mainly based on the contribution of organic farming to

two Community policy objectives: protection of the environment and reduction of

production surpluses and therewith saving of public expenditures. Thus supporting

organic farming was a means to an end and not a policy goal itself. Towards the end of

the 1990s, however, the importance of organic farming in the context of the CAP

shifted. Due to changing policy, economic and societal framework conditions, organic

farming goals and CAP goals increasingly concurred. As a result, the expansion of

organic farming has itself become a policy goal in several EU countries.

This changing role of organic farming within agricultural policy did not however

take place in all EU Member States reflecting the fact that an expansion of organic

farming is often only one of a number of options or strategies for policy makers.

In view of the large room for man oeuvre of individual Member States, the

degree and the type of support for organic farming differs today substantially

between countries. It is therefore not surprising that organic farming has followed

very different trajectories across the EU indicating that organic policies have a

substantial impact on the development of the organic sector.

According to the Community Strategic Guidelines for Rural Development, support for

organic farming is seen as one option to achieve sustainable development. More

specifically, Member States are encouraged to reinforce the contribution of

organic farming to the environmental and animal welfare objectives of the CAP.

The Australian Organic Farming and Gardening Society produced a quarterly

journal, Organic Farming Digest (1946–1954), which was the first "organic" journal to be

published by an association. The Digest got published in Australian, British, American,

European and African authors. About half of the articles published were written by

Australians. The Living Soil Association of Tasmania, founded in 1946, adopted the

journal of the Australian Organic Farming and Gardening Society, the Organic Farming

Digest, and distributed issues to its own members. For a decade, the Society promoted

organic agriculture throughout Australia and beyond, but ultimately disbanded on 19

January 1955, with lack of funds given as the reason.

Australian agriculture is extensive by nature and export-oriented. This influences in the

development of the organic sector. Of the approximately 15 million inhabitants in the

early 1980s, around 80% lived in a handful of big cities, the capitals of each state.

Large tracts of rural areas were, and still are being, sparsely populated, with many

areas being farmed extensively. This reflects the absence of adequate rainfall or

irrigation.

The growth of the market has paralleled the increase in the number of organic farmers.

Fritz (1991) estimated the market for organic produce in Australia in 1987 at AUS$6

million. In 1990, the retail organic market was estimated at AUS$39 million (Hassall and

Associates, 1990). The current retail value is a matter of dispute. Wynen (2003), using

data from the certifying organizations, estimated the total farm gate value of organic

production in 2000-01 at AUS$89 million, including produce not sold as organic. This

figure was then used to estimate the retail value of that production. The result, reduced

by the part sold in the conventional market, was AUS$107 million. To arrive at the total

domestic retail value, exports should then be deducted, imports added and value added

for processed goods. No details were available to do this, but it seemed reasonable to

assume that exports from Australia were considerably higher than imports, and that

processing was not a substantial part of the organic market. If this is correct, the retail

value would have been closer to AUS$100 million than to the AUS$400 million at which

NASAA put the retail value in 2003 (NASAA, 2003). For that year, Halpin (2004)

estimated the total retail value of products sold on the organic market at AUS$127.9

million (estimated by adding all enterprises reported by the producer respondents).

Imports were estimated at AUS$13 million, while export figures were (and still are) only

available for quantities, not values (Halpin and Sahota, 2004). The NASAA figure may

be high, because it presumably assumed continued growth at the rate of approximately

25% found between 1990 and 1995 (Hassall and Associates, 1995). Exports have been

an important part of the Australian market.

The Organic Farming industry in Australia includes farms that primarily produce organic

fruit and vegetables, grains, other crops or livestock. Organic farming does not involve

the use of artificial chemicals, pesticides and fertilizers, or genetically modified

organisms. This report focuses on organic producers who are certified organic by any of

the organic certification organizations.

The Organic Farming industry in Australia includes farms that primarily produce

organic fruit and vegetables, other crops, grains, or livestock. Organic farming prohibits

the use of artificial chemicals, fertilizers and pesticides, or genetically modified

organisms.

The Australian organic food and farming industry has been in existence for over 20

years. The progressive simplification of labeling of organic foods at retail level is been

implemented in terms of government standards and industry certification programs to

make easier for consumers to identify and choose certified organic products.

Consumers appear to have perceived a range of benefits from eating organic foods.

The most important five consistently identified benefits are ‘chemical free’ (82%),

‘environmentally-friendly’ (70%), ‘additive free’ (77%), ‘no genetically modified

organisms’ (65%) and ‘hormone and antibiotic free meat’ (64%).

Organic Agriculture is not a new concept to India. At the beginning of the 19th century,

Sir Albert Howard, one of the most important pioneers of organic farming, worked in

India for many years, studying soil-plant interactions and developing composting

methods. In doing so, he capitalized substantially on India’s highly sophisticated

traditional agricultural systems, which had long applied many of the principles of organic

farming (e.g. crop rotations with legumes, mixed cropping, botanical pesticides etc.).

Though the introduction of Green Revolution agricultural technology in the 1960s

reached the main production areas of the country, there were still certain areas

(especially mountain areas) and communities (especially certain tribes) that did not

adopt the use of agro-chemicals. Therefore, some areas can be classified as ’organic

by default’, though their significance and extent has been rather overemphasized in

recent statements made by some government officials and NGOs representatives.

However, an increasing number of farmers have consciously abandoned agro-

chemicals and now produce organically, as a viable alternative to Green Revolution

agriculture. Significance of organic agriculture for Indian farmers.

The Indian Government has recognized the export potential of organic agriculture and is

in the process of strengthening the sector by putting a legal framework in place. This

includes creating national organic standards and the possibility of accrediting in-country

inspection and certification bodies.

In order to assess the profile of potential customers in domestic market, traders,

exporters and producers were asked to indicate the type of customers who were

interested in buying organic products. They were presented with a selection of customer

types: Upper class, Upper-middle class and Lower-middle class. 90% of the

respondents believed upper class consumers to be interested in buying organic

Products. In contrast, only 10% and 0% of them indicated that upper-middle class and

lower-middle class consumers respectively might be interested in buying organic

products. However, from other sources it is known that at least in some areas in India

health conscious middle class families do buy organic food. Vegetables and fruits are

the major organic products desired by the Indian customers.

The domestic market for organic products is as yet not as developed as the export

market. The products available in the domestic market in organic quality are rice, wheat,

tea, coffee, pulses, fruits and vegetables. Wholesalers / traders and supermarkets play

major roles in the distribution of organic products. Distribution of organic products takes

place as follows:

As most organic production originates from small farmers, wholesalers / traders account

for a 60% share in the distribution of organic products. Large organized producers

distribute their products through supermarkets as well as through self-owned stalls.

Considering the profile of existing consumers of organic products, supermarkets and

restaurants are the major marketing channels for organic products. Major markets for

organic products lie in metropolitan cities – Mamba, Delhi, Kolkata, Chennai, Bangalore

and Hyderabad to name a few. According to the interview results, domestic sales of

organic products are barely 7.5% of the organic production.

Worldwide sales of organic products reached 26 billion US$ in 2001. The better selling

products have been milk products and vegetables. Strong growth is found especially in

those countries that have an active organic sector. One of the factors that promote

growth in organic markets worldwide is consumer awareness of health, environment

issues (Yossefi and Willer, 2002) and food scandals. Other factors that influence further

development of the organic market are the increasing promotions and marketing

strategies used by key players, such as retailers (Yossefi and Willer, 2002). Developing

countries are expanding their organic market into developed countries and in parallel

are building a domestic market. However, in order to help developing countries improve

their sales opportunities in export markets, traders need to know the general conditions

that exist in the developed countries.

Traders explained that they do not have reliable information about organic products

from India, and that India still has an image as a country where organic products are not

produced. Of course some traders reported positive experiences of obtaining organic

products from India; some of them even carry out their own organic projects, such as

organic basmati rice production.

Australia is an independent Western democracy with a population of more than 22

million. It is one of the world’s most urbanized countries, with about 70 per cent of the

population living in the 10 largest cities. Australia consists of two land masses:

mainland Australia and Tasmania. It lies on and extends south from the Tropic of

Capricorn in the Southern Hemisphere between latitudes 10°41' and 43°39'S and

longitudes 113°9' and 153°39'E.

It is bounded by the Pacific Ocean to the east, the Indian Ocean to the west, the

Afarura Sea to the north, and the Southern Ocean to the south. The nearest neighbor

is Papua New Guinea, 200 kilometers to the north. Timor Leste is 640 kilometers to the

north west, New Zealand is 1920 kilometers east, and Antarctica is 2000 kilometers

due south.

The geography of Australia encompasses a wide variety of bio geographic regions

being the world's smallest continent but the sixth-largest country in the world. The

population of Australia is concentrated along the eastern and southeastern coasts. The

geography of the country is extremely diverse, ranging from the snow-capped

mountains of the Australian Alps and Tasmania to large deserts, tropical and temperate

forests.

India organic producers and exporters are well aware of the demand for organic

products in developed countries. Products available for the export market are rice,

wheat, tea, spices, coffee, pulses, fruits & vegetables, cashew nuts, cotton, oil seeds

and medicinal herbs. The channels adopted for the export of organic products, expect

for tea, and are mainly trough export companies. Organic tea is produced by major well

organized tea estates which are exporting tea directly. In the case of other organic

products, predominantly small farmers are involved in producing organic products.

Hence, these products are exported through exporters. Organic products are mainly

exported to the following countries (in order of priority)

In order to identify some trends relevant to supplying the selected export markets with

Indian organic products, traders were asked about their own estimates of the following

products: rice, spices, coffee, tea, pineapple, mango, bananas, vanilla, nuts and protein

grains.. From the data obtained, average values were calculated across the different

products . In their responses to the questions about sales and potential of the listed

products, traders (20) were optimistic concerning their sales and the potential for the

listed organic products in their corresponding markets. Their opinion ranged from ’good’

to ’moderate’ conditions. No one considered the present market situation for the given

products to be ’very good’. On the other hand, traders rated the prospects of being

supplied (availability) with Indian organic products from ’moderate’ to ’poor’.

It is an obvious and unanimous submission that the State of Gujarat is one of the most

industrialized states in the country. In case of agriculture production and management

of farm produces also, the state is accelerating its pace to maintain its position as a

front-runner in the country. The sector has strong base with highly diversified cropping

and farming community, which is responsive to changes in agricultural technologies and

practices. The state also has other strengths like decent logistical infrastructure like

airports, seaports and extensive road and rail network.

The state appreciates the fact that a large cross-section of people from our society

earns their livelihood from this sector and although it plays a tertiary role in the State’s

Gross Domestic Product, it offers tremendous potential for exploitation.. The major

crops produced in the state include rice, wheat, maize, oilseeds, cotton, vegetables and

spices. On horticulture side, Banana, Mango, Sapota and Papaya are being cultivated

in abundance. In fact, Gujarat ranks third in the production of Banana, sixth in the

production of Mango, second in Papaya and Sapota production.

Government has decided that by adopting a holistic approach, the existing agriculture

base of Gujarat would be strengthened using modern techniques and equipment, by

upgrading the existing logistical framework and by ensuring that more and more farm

produces make their way into the processing chain. The Government would also strive

to create a world class supply-chain, to promote infrastructure important for agro-

industrial development, to ensure close interface between research, extension and

industry as well as farmers in agriculture sector, providing assistance to small-scale

agro based units to improve their competitiveness in global markets and increasing

exports of value added agriculture products. This assumes greater importance

especially in the light of the fact that Sardar Sarovar Narmada Project is nearing

completion and that the waters of the Narmada started flowing in different parts of the

state including Kutch through the extensive network of canals, pipelines and rivers. On

completion, the project will irrigate 1.8 million hectares of land, which would trigger the

growth of agriculture sector to usher in a new era of Prosperity through Green

Wealth.

The rising demand for organic food products in the developed countries and the

extensive support by the Indian government coupled with its focus on agric-exports are

the drivers for the Indian organic food industry.

Organic food products in India are priced about 20-30% higher than non-organic food

products. This is a very high premium for most of the Indian population where the per

capita income is merely USD 800. Though the salaries in India are increasing rapidly,

the domestic market is not sufficient to consume the entire organic food produced in the

country. As a result, exports of organic food are the prime aim of organic farmers as

well as the government.

The Indian government is committed towards encouraging organic food production. It

allocated Rs. 100 crore or USD 22.2 million during the Tenth Five Year Plan for

promoting sustainable agriculture in India.

Organic farming is a science within itself that conventional farmers can learn while they

transfer their capital resources and skills to master a trade that can be even more

profitable than conventional farming.

Researchers in the United States have found that by following organic farming

methods, conventional farmer’s can actually reduce production cost by over 25%. This

is accomplished by eliminating the use of synthetic fertilizers and pesticides, minimizing

soil erosion by up to 50% and increasing crop yields up to five-fold within five years.

Regardless of products produced, a well planned transition strategy will allow

conventional farmers to adopt new, more effective organic farming process in as little as

three to five years.

Organic farms can support substantially higher levels of wildlife especially in lowlands

and where animals can roam pastures or graze on grassland. Not only does wildlife

benefit, but entire ecosystems and ground water are improved by simply following

organic farming methods.

Organic farming practices not only benefit farmers and consumers; but the dairies can

benefit. When dairies feed their cows organic feed and graze them on organic fields, the

cows experience better health, less sickness, diseases and ultimately produce better

tasting milk for consumers.

Organic farming promotes soils that are teaming with life and rich in micro nutrients

which can be used for decades to grow crops virtually year round in many parts of the

world.

Consumers purchasing organically grown foods can taste the difference and see the

quality of virtually any organic product they buy. Regardless of minimal price

differences, consumers can smell, taste and see the difference in the quality of

organically grown food products.

Consumers buy organically grown food products not just because of competitive prices,

but due to the increased availability of organic food products as seen in both grocery

and organic food specialty stores.

Organically grown products are free from harmful chemicals, artificial flavors and

preservatives that ultimately cost consumers money when they purchase non-

organically grown products. You can always taste the difference between organically

grown and conventionally grown products.

Eating organic foods may in fact, reduce the risk of heart attacks, strokes and cancer

for individuals who abstain from consuming products produced by conventional farming

methods. Biochemist are continually researching the inherent benefits of organically

grown foods and discovering the consequences consuming products loaded with toxins

and chemicals which, until recently, have only begun to be introduced to humans. The

fact is, you ultimately are what you eat.

The various benefits of Organic farming for small farmers all over the world include high

premium, low capital investment, ability to achieve higher premium in the market, and

the ability to use traditional knowledge. According to a research conducted by the Office

of Evaluation and Studies (OE), International Fund for Agriculture Development (IFAD),

small farmers in Latin America, china and India can benefit drastically from organic

farming and will help in alleviating poverty in these countries.

Organic farming refers to means of farming that does not involve usage of chemicals

such as chemical fertilizers and chemical pesticides. Numerous small farmers have

been practicing organic farming; however, since they are unaware of the market

opportunities they are not able to reap the benefits of organic farming.

India comprises various farming systems that are strategically utilised, according to the

locations where they are most suitable. The farming systems that significantly contribute

to the domestic GDP of India are subsistence farming, organic farming, and industrial

farming.[1] Regions throughout India differ in types of farming they use; some are based

on horticulture, ley farming, agroforestry, and many more.[1] Due to India's geographical

location, certain parts experience different climates, thus affecting each region's

agricultural productivity differently. India is very dependent on its monsoon-based

periodic rainfall. If it weren't for large government involvement in storage of water for

agricultural irrigation, only some parts of India would receive rainfall throughout the

year, making many other regions arid. Dependency on these monsoons is risky

because there are great variations in the average amount of rainfall received by the

various regions—from too much for most crops in the eastern Himalayas to never

enough inRajasthan. Season-to-season variations of rainfall are also significant and the

consequences of these are bumper harvests and crop searing.[2] For this

reason, irrigation in India is one of the main priorities in Indian farming.

India agriculture has an extensive background which goes back to at least 10 thousand

years. Currently the country holds the second position in agricultural production in the

world. In 2007, agriculture and other industries such as lumbering and forestry made up

more than 16% of India's GDP. Despite the steady decline in agriculture's contribution

to the country's GDP, India agriculture is the biggest industry in the country and plays a

key role in the socioeconomic growth of the country. India is the second biggest

producer of wheat, rice, cotton, sugarcane, silk, groundnuts, and dozens more. It is also

the second biggest harvester of vegetables and fruit, representing 8.6% and 10.9% of

overall production, respectively. The major fruits produced by India

are mangoes, papayas, sapota, and bananas. India also has the biggest number of

livestock in the world, holding 281 million. In 2008, the country housed the second

largest number of cattle in the world with 175 million.

In economics, inflation is a rise in the general level of prices of goods and services in

an economy over a period of time. When the general price level rises, each unit

of currency buys fewer goods and services. Consequently, inflation reflects an reduction

in the purchasing power per unit of money – a loss of real value in the medium of

exchange and unit of account within the economy. A chief measure of price inflation is

the inflation rate, the annualized percentage change in a general price index(normally

the consumer price index over time.

The experience world over has demonstrated that impeccable agri supply chain

infrastructure is key to a vibrant and competitive agriculture and agro industrial sector.

The piecemeal attempts so far of setting up infrastructure for agri produce in Gujarat will

be replaced by an well-orchestrated effort from the Government for coordinated and

integrated infrastructure development all across the State.

In order to spearhead the development of infrastructure facilities in an efficient manner,

the Government needs to plan the facilities that are required and pro-actively promote

and support the same. Government has therefore decided to accord the highest priority

for creation of supply chain infrastructure and support services for the agro industrial

sector to create world class infrastructure corridors integrated with appropriate surface

transport connections, cold storages, auction centres and retail chains.

Australia is poised to become an excellent destination for US Organic and Natural Food

products.

A Free Trade Agreement between the US and Australia is coming into effect in January

2005. This will remove many barriers which could have made the market difficult for US

food products in previous years. It will also put the US at the forefront as a potential

supplier of many food products.

Opposite growing season to Australia, can supply in the off-season US products are

regarded as high quality Australian processors cannot reach economies of scale for

many types of products

Organic demand is increasing, and fits in perfectly with Australian's lifestyle and

attitudes towards food in general the foodservice sector is very open to both new and

organic products.

Australia has mandatory labeling rules for Genetically Modified Organisms (GMO). All

food products containing GMO ingredients must have these identified as such on the

label. This is reducing the market appeal of products using GMOs and increasing

demand for natural and organic products.

The main barrier for US exporters for trade with Australia could be the strict quarantine

laws. These laws have come into existence after many natural disasters were caused

by organisms foreign to the Australian ecosystem. These organisms found themselves

without any natural predators and flourished (for example, rabbits and cane toads).

These restrictions affect only certain types of products. Most retail food product is inert

and is not affected by these regulations. Interested exporters should not be deterred by

this, as quarantine may just be a formality for their product line.

Freight to Australia is somewhat expensive, as is inland freight between Australian

cities. US exporters able to ship full container loads directly to the main cities would

annul any freight advantage Australian processors may have. Exporting to Australia is

quite straight forward and the market could provide quite good returns. Any US

company serious about exporting food products should consider Australia.

BIBLIOGRAPHY

http://www.ipajournal.com/2012/09/15/india-going-organic/ http://www.organic-world.net/fileadmin/documents/yearbook/2012/fibl-ifoam-2012-summary.pdf http://www.bhu.ac.in/journal/vol56-2012/BHU-5.pdf http://www.organic-food-for-everyone.com/organic-india.html http://www.arthaplatform.com/news/443/india-could-show/ http://www.ibisworld.com.au/industry/default.aspx?indid=1912

http://www.austrade.gov.au/Buy/Australian-Industry-Capability/default.aspx

http://www.dfat.gov.au/publications/trade/trade-at-a-glance-2012.html

http://www.dfat.gov.au/publications/trade/trade-at-a-glance-2012.html

Aus Custom Tariff. (n.d.). Retrieved from (customs.gov.au/site/page5663.asp)

Austrade. (n.d.). Retrieved February 19, 2013, from google:

australian government. (2012). Retrieved february 18, 2013, from google: http://www.dfat.gov.au/publications/trade/trade-at-a-glance-2012.html

Australian Government-custom services. (2012). Retrieved feb 21, 2013, from LABELLING REQUIREMENTS FOR CLOTHING: http://www.customs.gov.au/webdata/resources/files/fs_clothing.pdf

AWI. (2012). Retrieved feb 21, 2013, from Licensing: http://www.wool.com/Design-and-Market_Woolmark_Licensing.htm

J.N.Singh. (2012). INDIAN TEXTILE AND CLOTHING SECTOR. Retrieved feb 21, 2013, from http://www.unescap.org/tid/publication/tipub2500_pt1chap6.pdf

smart company. (2012, january 17). Retrieved february 18, 2013, from google: http://www.smartcompany.com.au/economy/20120117-your-sector-by-sector-guide-to-2012.html

unknown. (2012, july 26). index mundi. Retrieved february 18, 2013, from google: http://www.indexmundi.com/australia/#Introduction

Watch, E. (2010, june 30). Trade Barrier. Retrieved feb 21, 2013, from Economy watch: http://www.economywatch.com/international-trade/trade-barriers.html

Aus. Custom Tariff. (n.d.). Retrieved from (customs.gov.au/site/page5663.asp)

Austrade. (n.d.). Retrieved February 19, 2013, from google: http://www.austrade.gov.au/Buy/Australian-Industry-Capability/default.aspx

australian government. (2012). Retrieved february 18, 2013, from google: http://www.dfat.gov.au/publications/trade/trade-at-a-glance-2012.html

Australian Government-custom services. (2012). Retrieved feb 21, 2013, from LABELLING REQUIREMENTS FOR CLOTHING: http://www.customs.gov.au/webdata/resources/files/fs_clothing.pdf

AWI. (2012). Retrieved feb 21, 2013, from Licensing: http://www.wool.com/Design-and-Market_Woolmark_Licensing.htm

J.N.Singh. (2012). INDIAN TEXTILE AND CLOTHING SECTOR. Retrieved feb 21, 2013, from http://www.unescap.org/tid/publication/tipub2500_pt1chap6.pdf

smart company. (2012, january 17). Retrieved february 18, 2013, from google: http://www.smartcompany.com.au/economy/20120117-your-sector-by-sector-guide-to-2012.html

unknown. (2012, july 26). index mundi. Retrieved february 18, 2013, from google: http://www.indexmundi.com/australia/#Introduction

Watch, E. (2010, june 30). Trade Barrier. Retrieved feb 21, 2013, from Economy watch: http://www.economywatch.com/international-trade/trade-barriers.html

GROUP 8

A

Global Country Study & Report (GCR)

On

“ANALYSIS ON EDUCATION INDUSTRY OF AUSTRALIA”

Submitted To:

Gujarat Technological University - Ahmedabad

In partial fulfilment of the requirement of the award for the degree of

Master of Business Administration

Under the guidance of

PROF. SWATI PATEL

Submitted By:

Alpesh Goswami A-17 117690592030

Asha Patel A-25 117690592034

Neil Mehta A-33 117690592042

Riddhish Bhatt A-46 117690592050

Sagar Kotak A-59 117690592007

Sarang Khandekar A-23 117690592025

BATCH 2011-13

MBA Semester III & IV

Shri Jairambhai Patel Institute of Business Management & Computer Applications

(Formerly known as NICM, Gandhinagar)

MBA PROGRAMME

Executive Summary

Australia, officially the Commonwealth of Australia is a country comprising the mainland of the

Australian continent, the island of Tasmania and numerous smaller islands. It is the world's

sixth-largest country by total area. Neighbouring countries include Indonesia, East Timor and

Papua New Guinea to the north; the Solomon Islands, Vanuatu and New Caledonia to the north-

east; and New Zealand to the south-east.

For at least 40,000 years before European settlement in the late 18th century, Australia was

inhabited by indigenous Australians, who belonged to one or more of roughly 250 language

groups. After discovery by Dutch explorers in 1606, Australia's eastern half was claimed by

Great Britain in 1770 and settled through penal transportation to the colony of New South Wales

from 26 January 1788. The population grew steadily in subsequent decades; the continent was

explored and an additional five self-governing Crown Colonies were established.

On 1 January 1901, the six colonies federated, forming the Commonwealth of Australia. Since

Federation, Australia has maintained a stable liberal democratic political system that functions as

a federal parliamentary democracy and constitutional monarchy. The federation comprises six

states and several territories. The population of 22.7 million is highly urbanised and heavily

concentrated in the eastern states due to geography and climate.

A highly developed country and one of the wealthiest, Australia is the world's

12th-largest economy and has the world's fifth-highest per capita income. Australia's military

expenditure is the world's 13th-largest. With the second-highest human development index

globally, Australia ranks highly in many international comparisons of national performance, such

as quality of life, health, education, economic freedom, and the protection of civil liberties and

political rights. Australia is a member of the G20, OECD, WTO, APEC, UN, Commonwealth of

Nations, ANZUS and the Pacific Islands Forum.

Australia is a constitutional monarchy with a federal division of powers. It uses a parliamentary

system of government with Queen Elizabeth II at its apex as the Queen of Australia, a role that is

distinct from her position as monarch of the other Commonwealth realms. The Queen resides in

the United Kingdom, and she is represented by her viceroys in Australia (the Governor-General

at the federal level and by the Governors at the state level), who by convention act on the advice

of her ministers. Supreme executive authority is vested by the Constitution of Australia in the

sovereign, but the power to exercise it is conferred by the Constitution specifically to the

Governor-General. The most notable exercise of the Governor-General's reserve powers outside

a Prime Minister's request was the dismissal of the Whitlam Government in the constitutional

crisis of 1975.

The federal government is separated into three branches:

1. The legislature: the bicameral Parliament, defined in section 1 of the constitution as

comprising the Queen (represented by the Governor-General), the Senate, and the House of

Representatives;

2. The executive: the Federal Executive Council, in practice the Governor-General as advised by

the Prime Minister and Ministers of State;

3. The judiciary: the High Court of Australia and other federal courts, whose judges are

appointed by the Governor-General on advice of the Council.

Australia gives major credit for its prosperity and security on account of its global engagements.

Australia has a strong network of alliances and partnerships to advance its international interests,

including a longstanding alliance with the United States it is also a founding member of APEC it

plays an active role in the following institutions - United Nations,G20,World Trade

Organization, East Asia Summit, Asia–Pacific Economic Cooperation, Commonwealth

,Organization for Economic Co-operation and Development, Indian Ocean Rim Association for

Regional Cooperation, Pacific Islands Forum, Forum for East Asia – Latin America Cooperation,

Asia–Europe Meeting.

Australia has significant, longstanding and close bilateral ties with Indonesia,

North Asia: China, Japan and the Republic of Korea which are considered to be major markets

for Australia. Australia continues to build on our strong and longstanding political, cultural,

trade, investment, and people-to-people links with Europe to advance mutual interests. We are

committed to a broad-based, creative partnership with the European Union, addressing the

contemporary challenges of economic management and international trade, climate change,

development, security, and strengthening international governance.

Australia has significant people-to-people links and growing trade and investment

interests in the strategically important Middle East. In Africa, Australia has longstanding

bilateral ties, especially with fellow Commonwealth nations, and growing trade and investment

interests, particularly in the resources sector.

Australia's connections with Latin American countries are expanding in a range of

international forums, including in the WTO. Australia has warm relations with Caribbean

countries built on strong historical and cultural foundations.

Australia’s objectives pertaining to international policy are quite simple-

promoting global and regional security, including reducing the threat from the proliferation of

weapons of mass destruction, reducing the threat of terrorism and combating transnational crime,

pursuing sustainable and balanced global economic growth and regional economic integration,

and developing market access opportunities for Australian trade and investment and contributing

to effective international responses to shared challenges such as reducing poverty, addressing

climate change and ensuring the sustainable management of our oceans.

The Australian economy continues to outperform other advanced economies.

Australia has solid growth, low unemployment, contained inflation, very low public debt and a

strong and stable financial system. By 2012, Australia had experienced more than 20 years of

continued economic growth, averaging 3.5 per cent a year. Australia's positive outlook is

underpinned by a record pipeline of resources investments, solid growth in commodity exports

and a strong fiscal position.

The services sector is the largest part of the Australian economy, accounting for

around three quarters of gross domestic product and four out of five jobs. Australia is an

important and growing financial centre, with a sophisticated financial services sector and strong

regulation.

Australia welcomes foreign investment and recognizes the key role it plays in

bolstering its economic growth, employment and competitiveness. Being a robust economy,

strategic location and track record of innovation makes Australia an attractive location for

foreign investors. The stock of foreign investment in Australia was $2.0 trillion at the end of

2011.

Education Industry:

Australia is the third largest number of foreign students in the English-speaking

world, after the United States and the United Kingdom. In some countries, Australia is the first

choice study destination for students. The level of education is the highest level of education in

Australia. A student can study either

undergraduate or graduate studies at a university. In Australia a student is scheduled to conduct

independent research in all institutions, including the University. Student mobility has increased

exponentially in recent years, with 8.8% of college students to carry out an increase of 3%

compared to the international learning experience previous survey in 2009 student mobility

conducted in 2007. This growth can be attributed to the initiatives promoted by the government

and institutions.

India is one of the fastest growing economies in the world and has demonstrated its resilience,

even during the recent global economic crisis, the average annual growth rate of over 8%.This

steady growth will require highly skilled human resources at various levels, as well as

government policy favor. It became clear that the current growth rate cannot be maintained

without increasing the level of human resource development at least 2 to 2.5 times compared to

the current situation.

Australia is a major supplier in the world of international education. Provides opportunities for

hundreds of thousands of foreign students to gain a world recognized Australian and discover

and nurture local campus life skills in the community. These include increased costs, including

the high Australian dollar, and a new generation of students for whom opportunities and overall

career mobility are key factors in the choice of study destination. The sector is the fourth largest

export industry of Australia, earning $ 15.7 billion in 2011. This is due in large part by the higher

education sector, accounting for 65.6 percent of total revenues during this period. $ 15 billion to

the education industry in Australia is expected to have a negative impact on the

experts predict a decrease in the entry of foreign students in major markets such as India and

China, after a series of attacks 'racist' to Indians, according to a report of the first daily activities.

Academic links between Australia and India have a long history, dating back to the late

nineteenth century, but bloom since 1950. From 1950 and 1970, Australian universities provided

India with large-scale development in education, with emphasis on training in science and

technology in particular. Many Indians have won a scholarship to pursue graduate studies in

Australian universities by the Colombo Plan.

Despite its popularity, most of these agreements are tentative and informal collaboration. More

formal agreements also face many challenges in the implementation of educational programs.

The policy of national skills development in India will help create a demand for skilled workers

in VET. Part of this is to establish a common understanding of the skills needed for jobs that

meet both the Indian and global labor markets. India also requires the development of skills and

training and clear. Enjoy employment in Australia and the narrow view of the immigration rule

Spoil employment in Australia and the narrow view of regulation of immigration in 2007-08, had

forty-one miles obtained permanent residency, but five thousand went to cooks and hairdressers,

while the kitchen and hair were listed demand skill in the middle of the decade.

A survey conducted by IDP Australia emphasizes that students choose a particular country

because of its migration results (Moscaritolo, 2010), which has been operating in Australia

aggressively with its immigration rules uncertain and unstable. IEI expert Simon Marginson

(2010, cited in Trounson, 2010) explained the main reason for the unexpected pressure of the

industry does not look and value of foreign students as individuals.

International education is much more than an economic engine. The real problem here is the

inability of international education to think and plan strategically for the future of a sector that is

the third product export Australia. The analysis shows that Australia has failed to maintain a

fruitful relationship between the long-term capacity objectives of scarcity and the main source to

meet these needs are and their immigration policies.

Objective in preparing the said concept note and report is to provoke thoughts from readers for

this milestone activity in privatization of higher education. We hope that this note and report will

encourage readers to send us their comments, opinions and any other relevant data. We also hope

that policy makers and others concerned will find our report useful.

The Ministry of Human Resource Development (MHRD) functions under the overall charge of

the Human Resource Development (HRD) Minister, who is assisted by two Ministers of State,

one from the Department of School Education and Literacy and one from the Department of

Higher Education. MHRD is responsible for laying down national policy on education. The

National Assessment and Accreditation Council (NAAC) and the National Board of

Accreditation (NBA) are the two key entities for accreditation in India. NAAC has been set up

by the UGC for accreditation of higher education institutes, while NBA has been set up by the

All India Council for Technical Education (AICTE) for accrediting programs in engineering and

other related areas.

Higher education in India, with over 13 million students in the system is only third after China

and the United States. There are a worldwide presence in the private sector and the public in the

European Union regulation, state and local. Under the Constitution of India education falls in the

concurrent list, with responsibilities lying with the Union and the States in both.

Although the education system is one of the largest in the world, but ironically, it educates only

12% of the age group. Only 7-8% of the population in the age group of 17-23 years recorded in

the institutions providing higher education and, therefore, a great need to improve the

educational infrastructure in the country only 0.7% of GDP of India is engaged in higher

education. India today is also facing a serious problem of quality that only a small proportion of

the area of higher education to meet international standards. The reason for this is the lack of

investment in the sector. To improve the system, there were plans to establish a new "world

class" national universities in each state of India, opening of new IITs and other initiatives. These

plans, given the insufficient funds have been announced and the shortage of qualified teachers is

unlikely to succeed. I encourage investment in this sector in India was thought to open its doors

to foreign universities (IIF) to assemble and invest their capital in the education sector in India.

The project must comply with the norms and standards, including land use and the provision of

community services and common services provided in the applicable regulations to strengthen

controls requirements, bye laws, rules and other government regulations / local government

agency / local question.

India Open Door comes with a variety of conditions and restrictions. It might be better called the

"open door". These conditions instead of promoting financial engineering instruments for

investment leading to prevention. The project requires an investment of $ 11 million from the

outset by a FEI to operate in India. In addition, the FEI is limited to the benefits of the Indian

subsidiary.

Foreign Educational Institutions (regulation of entry and operations, maintenance of quality and

prevention of commercialization) Bill will allow foreign universities to invest at least 51 percent

of the total investment needed to establish the institute in India. The bill may be to regulate the

entry, operation and maintenance of quality assurance and prevention of commercialization by

foreign educational institutions.

To improve the quality of IIT and IIM institutes and encourage others to follow or invite foreign

universities in the country. Education is not a telecommunications or automotive or objectives

are the same that will give the same results. It is one of the most important for the development

of our rural areas. Even the Advisory Committee for the renewal and revitalization of higher

education (or Yash Pal Committee) warned of foreign universities. The fear is that only create

benefits for foreign shareholders and most of the Indians of the middle and lower class cannot

afford the costs of obtaining education there. As the demand for quality education, we can only

say that this is not the seal of the foreign university, but the facilities, infrastructure and

environmental factors that increase the quality of education.

One university officials revealed that most Indian students prefer to Australia for higher studies.

This is one of the main reasons why the university decided to create his own agency in Gujarat

so that Indian students can get Australian title and the essence of Australian university without

having to leave their country. In Indian universities, the career progression of lecturers and

professors is based on their research publications, books written and papers presented in

seminars and symposia. Thus research plays an important role in their career progression. Indian

universities are increasingly collaborating with foreign universities for joint-research projects.

In India, possessing a master’s degree is essential for pursuing a doctorate. Hence, potential

research students of law, medicine and engineering often lose their inclination to pursue research

as they have to spend seven years of university education, as opposed to five years in other

disciplines, to qualify for doctorate. Limited investments are made in the field of research by the

private sector in India. India‘s investment in research and development is about 1 per cent of the

GDP as compared to 2.65 per cent in South Korea and 1.3 per cent in China.

The entry of foreign universities in India has been limited to those offering technical education.

These universities are regulated by the AICTE regulations for en- try and operation of foreign

universities in India imparting technical education. A revolution in the Indian higher education

sector is needed to revitalize and rejuvenate the dampening spirit of this sec- tor. Investment in

the sector needs to be studied from the point of view of two iconic models set up by Dubai and

Singapore, pioneering them to emerge as world-class education hubs.

On the positive side, the time period involved in obtaining the approval under the Bill is not too

long and the procedure not too complex. Application has to be made to the registrar who maybe

the secretary of the University Grants Commission (UGC). Within six months of such

application, the registrar would make a report on the fitness of the educational institution. The

report would be considered by the UGC and within a period of 30 days be sent to the central

government for the final approval.

GROUP 9

A

GLOBAL / COUNTRY STUDY AND REPORT

ON

“AUSTRALIAN TOURISM- RECOMMENDATIONS FOR THE DEVELOPMENT OF

GUJARAT TOURISM”

Submitted to

Gujarat Technological University

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF

Prof. Urvi Amin

Submitted by

Ruchi Gupta

[Batch: 2011- 13, Enrollment No.:117690592006]

Rekha Raghani

[Batch: 2011- 13, Enrollment No.:117690592120]

Ravi Vadgama

[Batch: 2011- 13, Enrollment No.:117690592095]

Jayesh Patel

[Batch: 2011- 13, Enrollment No.:117690592067]

Dilip Purohit

[Batch: 2011- 13, Enrollment No.:117690592071]

Deepak Vangala

[Batch: 2011- 13, Enrollment No.:117690592017]

MBA SEMESTER III / IV

SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT

AND COMPUTER APPLICATIONS (NICM-MBA)

MBA PROGRAMME

Affiliated to Gujarat Technological University, Ahmedabad

EXECUTIVE SUMMERY

Australia is a country where Tourism has developed at the highest level. Government as well as

various organisations work together to enhance the experience of tourists visiting Australia

whereas Gujarat as a state is still working hard to develop its Tourism. Though Gujarat

Government has taken many initiatives in recent years it can take a cue from Australia Tourism

for further development of its Tourism.

In this report we have discussed about Australia Tourism – Tourism 2020, its objective and Core

strategies, Australian tourism and its role in the Australian Economy and the Structure of

Australian Tourism.

Further we have study Australia and Gujarat tourism in Heritage and Cultural tourism,

Adventure and Sports tourism, Eco tourism, Health tourism and Nature and Wildlife tourism.

The Marketing Strategy and Promotion Campaign used by Australia and Gujarat have also been

studied in this report.

Australian Tourism

Tourism Australia was established on 1st July, 2004 and is the Australian Government‘s

Agency responsible for the international and domestic promotion of Australia as a travel

destination.

Australia is rated as one of the most desired tourism destinations in the world

Tourism 2020

It is the Australian government‘s approach to improve the industry‘s productive capacity and

framework for future development.

Australian Tourism Objective 2012-13

Tourism Australia is focused on-

Growth in leisure and business events visitors.

Continued improvements in visitor value. (spending per trip /spending per night)

Gaining market share and

Supporting supply-side issues by applying consumer insights and reinforcing

competitiveness.

Core Strategies

1.Customer Focused

2. Development Focused

3. Government Focused

Tourism Consumption

Estimated at $95.7 billion

Tourism Exports

Tourism exports were worth $23.7 billion

Tourism Imports

Estimated at $ 30.9 billion

Tourism Net Trade (the value of exports minus imports)

Tourism’s trade deficit was valued at $7.2 billion

Australia is an island continent and the world‘s sixth largest country. Lying between the Indian

and Pacific Oceans, the country is approximately 4,000 Km from east to west and 3,200 km from

north to south, close in size to the USA. Australia is multicultural and multiracial and this is

reflected in the country‘s food, lifestyle and cultural practices and experiences. Australia‘s

population is approximately 22 million people.

Under Australia‘s federal system, executive power is divided between the Commonwealth

(Federal) Government and the six State and two Territory Governments-

Australian Capital Territory (ACT)

New South Wales (NSW)

Northern Territory

Queensland (QLD)

South Australia (SA)

Tasmania (TAS)

Victoria (VIC)

Western Australia (WA)

Gujarat is one of the most diverse states in India.Located on the western coast of India, Gujarat

is a well developed industrial state of India.Its rich history, heritage and culture along with

natural beauty of lush green forest, sandy beaches and wildlife make it one of the most sought

after destinations of India. It is also the birth place of the father of the nation Mahatma Gandhi

and so one of the major centre for Indian freedom struggle.

Heritage consists of those things which we have inherited and want to keep. These places and

objects give us a sense of the past and of our cultural identity. They are the things we want to

protect and pass on to future generations so that they too will understand what came before

them.Heritage tourism is sometimes also called Cultural tourism. The Australian Heritage

Commission has defined heritage tourism as ‘activities and services which provide visitors with

the opportunity to experience, understand and enjoy the special values of an area‘s natural, and

cultural heritage’

Australia’s heritage, shaped by nature and history, is an inheritance passed from one

generation to the next.

It encompasses many things- a diversity of natural and cultural places, lifestyles,

traditions, objects, history and values.

Heritage places are a fundamental part of Australia‘s tourism industry.

Domestic and overseas tourists can experience the distinctive natural, indigenous and

historic heritage places and the rich stories associated with them.

Some of the Australia’s Culture that attract Tourism are-

Aboriginal Culture: A rich and timeless tradition

Colonial myths: battlers, bushrangers and brave soldiers

Australian English: speaking ‘Strine’

Sporting heroes: the glory of green and gold

An outdoor lifestyle: beach and barbeques

Multiculturalism: diverse food, festivals and faith

Australian innovations: from the Hills Hoist to Penicillin

Culture cravings: theatre, film, books and visual art

Gujarat has the privilege of having a legacy of heritage for more than 5000 years.

Gujarat had a high number of Princely States before the British left India in 1947.

Today after 66 years, most of the palaces and rajwadi structures have been converted in

to Heritage Hotels.

As many as 19 such Heritage Hotels are already listed on Gujarat Tourism‘s official

website.

Gujarat is rich in archeological sites including World Heritage site of Champaner, Indus

Civilization sites like Lothal and Dholavera, Ancient Buddhist sites, etc

Gujarat’s culture forms an integral part of Indian culture. Well known for its rich Culture and

Heritage, its cultural diversity has preserves of ancient art and craft techniques.

Some of the Gujarat’s Heritage that attract Tourism are-

Ahmedabad

Sidi saiyad jali

Juma masjid

Dada harirvav location

Lothal

Surat - parsi agiari

Vadodra

Sri aurobindo niwas

Chhota udepur

Dabhoi

JUNAGADH- Ashok Shilalekh

Jamnagar- lakhota palace

Kutch- aina mahal

Bhavnagar- hotel nilambag palace

Some of the gujarat’s culture that attract tourism are-

The folk arts of gujarat - the rich tradition of song, dance and drama.

Handicrafts like patola weaving, khadi bandhani,

Block printing, rogan painting .

Woodcrafts, metal crafts, and bamboo crafts.

Festivals –

Navratri, kite festival, Rannotsav.

Food of Gujarat.

The Arabs, Portuguese, Dutch, Mughals and British as well as Parsis fleeing their native country,

have left their mark on Gujarat‘s culture .

Adventure Tourism combines physical activity,cultural exchange or interaction and engagement

with nature.Adventure tourism gains much of its excitementby allowing its participant to step

outside of theircomfort zone. Sport Tourism includes travelling away from one’s primary

residence to participate in a sport activity for recreation or competition. Travel to observe sport at

the grassroots or elite level, and travel to visit a sport attraction such as a sports hall of fame or

water park.

Australia is one of the most popular destinations on

the planet for backpackers and luxury travelers.

With its vast distances and remote, rugged terrain,

Australia’s journeys are ready-made adventures. Completely surrounded by water and

rich in islands and reefs, Australia is a diver’s dream.

Rock-climbing on Tasmania’s Freycinet Peninsula

Horse riding in the Blue Mountains

Hiking through the Australian Alps

Scuba Diving in The Great Barrier Reef

Surfing on Beaches

Sky Diving

Bungee Jumping

Jungle surfing in Queensland

Eco Tourism is a form of tourism involving visiting fragile, pristine and relatively undisturbed

natural areas.

Its purpose may be to educate the traveler, to provide funds for ecological conservation, to

directly benefit the economic development and political empowerment of local communities, or

to foster respect for different cultures and for human rights.

Ecotourism is environmentally responsible travel to enjoy and appreciate nature and cultural

experiences.

Eco Tourism has been considered a critical endeavor by environmentalists, so that future

generations may experience destinations relatively untouched by human intervention.

CONSERVATION

COMMUNITIES, and

INTERPRETATION

Australia is widely regarded as one of the world‘s most sought after eco tourism

destination due to the huge variety of environments from deserts to rainforests and from

coral reefs to eucalypt woodlands.

Eco tourism experiences offer stimulating insights into Australia‘s natural areas while

ensuring minimal impact to the environment.

Australia is the only place in the world where two World Heritage areas meet- The Great

Barrier Reef and Australia‘s Tropical Rainforests.

The Ten World Heritage listed sites are also National or Marine Park reserves: Kakadu

National Park, Uluru National Park, East Coast Rainforest, Willandra Lakes, Fraser

Island, Great Barrier Reef, Queensland Wet Tropics, Tasmanian Wilderness, Shark Bay

and Lord Howe Island.

GREAT BARRIER REEF is the largest natural feature on earth stretching more than

2,300km along the northeast coast of Australia from the northern tip of Queensland to

just north of Bundaberg.

It is the largest World Heritage Area in the world.

Seasonal Ecological Events around Australia that attracts Tourist are-

Humpback whale migration along East Coast.

Swim with Minke Whale encounters.

Coral Spawn: Great Barrier Reef.

Stair Case to the Moon: North West Coast.

Swim with Whale Shark encounters: Ningaloo Reef.

It is generally believed the Eco Tourism prevails only in lush green jungles. However, one needs

to be in Gujarat to realize that even the desert land could offer the best eco experience for a

nature lover.

Gujarat is blessed with unique diversity of eco-systems.

From dry forests to majestic grasslands, marine eco systems to wet lands, white Rann beds to

rich moist deciduous forests everything is here in Gujarat.

Gujarat is home to rare wild life inhabitants, the Asiatic Lions that roam in the Gir forests,

Bustards in bird reserves, four horned Antelope and Black Bucks.

The Gulf of Kutch boasts of India's first Marine National Park. The rare Whale Shark breed is

found on the coasts of Gujarat. The Pirotan Islands in Jamnagar boast of marine species which

are unique to the geographical location.

For an expert swimmer, the Madhavpur beach is the best place.

Medical and Wellness

Medical and Wellness tourism are the sub- segments of health tourism.

Medical tourism is illness- oriented because tourist primary travel in order to cure or treat

a certain illness or medical condition.

Wellness tourists go on vacation in order to maintain or improve their health and well-

being and thus try to reach higher levels of wellness.

Australia has a significant competitive advantage and developed leadership status in a

broad range of medical expertise. The Australian Health Tourism n health checks,

through to the entire range of complex surgical interventions bundled as a competitive

travel, accommodation and optional tourism proposition.

Australia Heath Tourism - Offers a concentric circle of care

Quality of Australian Doctors & Training programs

Patient Length of Stay

Optimum Hospitalisation for best outcomes.

Fitness to Fly conservative time frames

Supply Audit

Self-Reporting Protocols

Transparency on all Hospital Data & Figures

Outcomes Consistently High stats on success

Personal & Political Safety

Cultural Affinities

Wellness - Gujarat is the home for Ayurvedic treatment. With the use of natural herbs and

natural cures it promotes Ayurvedic healing. World class hospitals in Ahmedabad, Nadiad,

Karamsad and Vadodara offer unique treatment to patients coming from all over the world. It has

the presence of colleges and pharmacies all over the state.

Medical Tourism- 450,000 tourists visited the state for medical care Treatment related to

advanced radiology, nuclear medicine applications, orthopedics (especially joint replacements),

cancer care, renal transplants, cardiac and GI surgery, urology, IVF, cosmetic surgery, obesity

treatment, neurology, and the advanced diagnostic capabilities of modern labs in Gujarat have

proved to be a big attraction .Low cost of cardiac surgery, angiography, joint replacements,

dentistry and other medical services

NATURE TOURISM

A journey to natural places which conserves the environment and improves the welfare of

local people.

Includes bird watching, photography, stargazing, camping, hiking, hunting, fishing, and

visiting parks.

WILDLIFE TOURISM

It involves travel to observe wildlife in natural environments and preferably their native

habitat.

Includes wild and non domesticated animals and can encompass free-ranging and captive

circumstances.

Unique Australian Experiences Marketed to Promote Australia Tourism

Experiences are the drivers and motivators of Australian Tourism target audience. The seven

experiences highlight what makes Australia distinct from other destinations.

Aboriginal Australia

Food and Wine

Nature in Australia

Australian Major Cities

Australia Coastal Lifestyle

Australian Journeys

Outback Australia

Tourism Australia launched “THERE’S NOTHING LIKE AUSTRALIA” an advertising

campaign which involves Australians and their favourite holiday stories.

The campaign developed by DDB Sydney, is developed in two phases. The campaign was

launched in May 2010 by inviting Australians to share their favourite domestic holiday

destinations with the world.

It became one of the country’s biggest consumer- generated promotions, Australians responded

by uploading nearly 30,000 stories and photos to www.nothinglikeaustralia.com. There’s nothing

like Australia campaign has appeared in 25 countries and been translated into 17 languages.It

was designed to be long lasting and flexible, something which could be updated as necessary to

stay relevant in a highly competitive and fast changing global tourism environment.

It has been used by 180 Tourism Australia partners including airlines, State Tourism

Organisations (STOs), travel distributors and the broader Australian industry.

Since taking over as the brand ambassador of Gujarat, Amitabh Bachchan has promoted

places like Kutch, Dwarka, Somnath and Gir National Forest in the first phase of

campaign.During the second phase Amitabh Bachchan has projected Saputara a hilly

station of Gujarat bordering Maharashtra, Porbandar birthplace of Mahatma Gandhi,

Lothal one of the most prominent cities of the ancient Indus valley civilization and

Sidhpur a sacred town in Gujarat where last rituals of Mother is performed.Through the

Khushboo Gujarat Ki campaign, Amitabh Bachchan has not only projected various

tourist destinations, he has also featured Gujarat's rich tradition and various festivals like

Kutch Festival.

Identification of the themes in Gujarat and improve the tourism destination

Identification of theme across the state and identification of specific projects to make each region

even better tourism destination i.e. increase tourism to regional Gujarat.

Improving the destination by implementing development and marketing plan for each

destination

Development of road links for key tourist destinations in Gujarat

Development of international airports near key tourist destinations

Connecting Gujarat to all parts of India by rail

Focusing on the core and linkage infrastructure

Investing in strategically focused capacity to support development priorities

Marketing Research and Creative team

Building new tourism Infrastructure

Creating a highly skilled tourism workforce

Developing new market segments and experiences

Implementing a digital marketing revolution

i.e. Aggressive Marketing and Brand Building

Increase focus on foreign market like U.K, USA, Middle East and South East Asia

Protecting Gujarat’s precious natural environment and culture

Awareness regarding Dholavira, Champaner, Calico Museum, etc. is extremely low,

which if promoted well can turn into successful tourist destinations.

To build and maintain strong partnerships with tour operators, travel agents and any other

stakeholder who influences a tourist's decision.

Foreign tourists are highly influenced by third party sources of information and so

concentrated efforts must be made to have tourist destinations of Gujarat featured

extensively in travel guides, travel magazines, in-flight magazines, etc.

To improve infrastructure facilities to cater to a large number of foreign tourists and high

value domestic tourists.

Basic reading material should be made available and information sign posts in at least

Gujarati, Hindi and English should be installed at all tourist places.

Gujarat enjoys a high appeal amongst religious tourists so efforts should be made to

establish special packages and marketing communication for such places.

The Gujarat tourism website needs to have access facilities to book for packages and

accommodation online.

Campaign can be made through social networking sites such as YouTube, Facebook, and

Flickr having its web presence and can resonate with the foreign tourist too.

Brand Positing Statement of Australian Tourism

The people of Australia are friendly and straight talking and open. Their sense of mateship and

their no worries attitude make all visitors feel welcome. They make it easy to enjoy adventures

beyond imagination. Whether it’s in Australia’s wide-open landscapes, pristine oceans or vibrant

cities, a holiday in Australia is an opportunity to experience a vast yet accessible adventure

playground. You don’t just visit Australia, you live it.

Brand Proposition

On holiday in Australia you don’t switch off you switch on. The unique experiences you

have and the people you meet will make you feel uplifted and full of life.

Brand Personality

High spirited, down to earth, irreverent, welcoming is the Brand Personality of Australian

Tourism.

Target Market

High yielding consumer segment and Experience Seeker .

Development of Gujarat tourism will help not only in achieving economic benefit but

also in social benefit. Tourism sector has the highest employment potential, with approximately

90 jobs created per Rs.10 lakh investment. By attracting large investment in the sector, large

employment opportunities shall be created adequate skills and training imparted by the

institutions specially set up in the policy period, the trained youth from the state can get

productive employment in the sector. Further, the local shops and artisans shall get opportunities

to sell their products and money will flow in the rural sector. Further, NID, NIFT and other

institutions will hone the skills of the rural people involved in handicrafts. Gujarat beckons all as

a respected visitor, an esteemed investor and a friend to enrich the colourful socio-cultural

tapestry.

Recommendation for improving Heritage and Cultural tourism, Adventure and Sports

tourism, Eco tourism, Health tourism and Nature and Wildlife tourism and the Marketing

Strategy and Promotion Campaign of Gujarat has been presented in this report.

BIBLIOGRAPHY

1. (n.d.). Retrieved from http://www.tourism.australia.com/en-au/

2. (n.d.). Retrieved from http://www.australia.com/?channel=paid-search&tacampaign=in-

global-fy2013&message=brand&website=google&publisher=google&campaign=australia-

hv&adgroup=australia-exact&keyword=s8AkpEp4p-17642817103-

australian%20tourism&matchtype=Exact&gclid=CL2k1baGo7cCFQcl

3. (n.d.). Retrieved from

http://tourism.gov.in/writereaddata/Uploaded/Tender/051720121254577.pdf

4. (n.d.). Retrieved from http://www.vibrantgujarat.com/images/pdf/tourismseminar-

outcomes.pdf

5. (n.d.). Retrieved from http://www.gujarattourism.com/downloads/emagazine_aug07.pdf

6. (n.d.). Retrieved from

http://www.kpmg.co.il/Events/india/conference/thought%20leadership/Gujarat.pdf

7. (n.d.). Retrieved from http://www.gujarattourism.com

8. (n.d.). Retrieved from http://articles.timesofindia.indiatimes.com/2013-05-

15/ahmedabad/39280569_1_khushboo-gujarat-ki-amitabh-bachchan-guru-nanak

9. (n.d.). Retrieved from http://www.tourism.australia.com/en-au/marketing/campaigns_Nothing-

Like-Australia.aspx

10. (n.d.). Retrieved from www.australia.com/about/culture-history/australian-culture/heritage-

attractions.aspx

11. (n.d.). Retrieved from http://www.narendramodi.in/tag/khushboo-gujarat-ki/

12. (n.d.). Retrieved from www.ret.gov.au/tra

13. (n.d.). Retrieved from www.sustainabletourismonline.com

14. (n.d.). Retrieved from www.bitre.gov.au

15. (2012). Tourism Industry Facts and Figures at Glance.

16. Zyl, K. H. (2011). Australia’s Tourism Industry.

GROUP 10

A

GLOBAL / COUNTRY STUDY AND REPORT ON

“ANALYSIS OF TELECOM INDUSTRY OF AUSTRALIA”

Submitted to

GUJARAT TECHNOLOGICAL UNIVERSITY IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ASMINISTRATION

Under The Guidance Of

Prof. Shahir Bhatt

Submitted by

Arun Sunkara Enrollment No. : [117690592053]

Malcolm D’souza Enrollment No. : [117690592001]

Sadik Surani Enrollment No. : [117690592038]

Lokesh Lakhwani Enrollment No. : [117690592020]

Jigna Gosai Enrollment No. : [117690592080]

Dhaval Trivedi Enrollment No. : [117690592010]

MBA SEMESTER III / IV

Batch 2011-13

Shri Jairambhai Patel Institute of Business Management and Computer Application (SJPI - NICM), Gandhinagar

MBA PROGRAMME

Affiliated to Gujarat Technological University

Ahmedabad

TELECOM INDUSTRY SUMMARY

Telecom Industry began with the use of smoke signals and invention of telegraph in 1844 made

possible wired communication, telephone enabled voice transmission. Follow this advancement

from smoke signals to modern day internet and mobile technology, understanding the events that

have shaped the world of telecommunications.- Learn more at www.technofunc.com.Your online

source for free professional tutorials.

Early telecommunications included smoke signals and drums. Talking drums were used by

natives in Africa, New Guinea and South America, and smoke signals in North America and

China.In 1792, a French engineer, Claude Chappe built the first visual telegraphy (or semaphore)

system between Lille and Paris. This was followed by a line from Strasbourg to Paris. In 1794, a

Swedish engineer, Abraham Edelcrantz built a quite different system from Stockholm to

Drottningholm.

Telecommunications began with the successful innovation of Samuel Morse's telegraph system

in 1844.The first coast-to-coast telegraph line was opened in 1862 (seven years before rail links

extended that far) and immediately made money, demonstrating the value of telecommunications

over great distances.Western Union, the first telecommunications monopoly, was formed as a

regional alliance of several smaller firms in 1856 and rapidly expanded, often following railway

lines. Just a year later the six largest telegraph companies developed a cartel, dividing up the

country and business among themselves.Western Union took over some 15,000 miles of

government-built lines at the end of the war and became by far the largest company in the field.

Telegraph systems initially served only land routes, as it was presumed impossible to lay lines

underwater. After experiments running insulated telegraph lines under lakes and across rivers, in

1858 an American-led consortium laid the first cable connecting Britain and the United States,

which eventually failed in few months. After a failed attempt to lay a cable in 1865, success

came in 1866; soon others were added. Success of telegraph industry and rising electrical

manufacturing businesses formed the context for the telephone. The electric telephone was

invented in the 1870s, based on earlier work with harmonic (multi-signal) telegraphs. The first

commercial telephone services were set up in 1878 and 1879 on both sides of the Atlantic in the

cities of New Haven and London.

Telephone was largely the creation of Alexander Graham Bell, who received his first patent in

March 1876.A Kansas City undertaker, concerned that telephone operators were sending

business to his competitors, developed the first mechanically automated telephone switch in

1891. The first automated switches began to appear around the turn of the century in major

cities—and would be used in smaller communities for decades.

By 1904 there were over three million phones in the US, still connected by manual switchboard

exchanges. By 1914, the U.S. was the world leader in teledensity and had more than twice the

teledensity of Sweden, New Zealand, Switzerland, and Norway.

Telecommunication in Australia

For the first fifty years of its existence most people in Australia and New Zealand experienced

telecommunications through telegraphy even where the telephone was available.That experience

often involved couriers, with a 'telegraph boy' for example delivering a handwritten or printed

message to a residence, business or other location.Australia's first telephone service was

launched in 1879, with the first telephone exchange opened in Melbourne in 1880 shortly before

the hanging of bushranger Ned Kelly.The first Australian coin-operated public phones appear to

have been installed in 1890, two years after their appearance in the US.

The Australian networks were government assets operating under colonial legislation modelled

on that of Britain. The UK Telegraph Act 1868 for example empowered the Postmaster General

to "acquire, maintain and work electric telegraphs" and foreshadowed the 1870 nationalisation of

competing British telegraph companies.

All the colonies ran their telegraph networks at a deficit through investment in infrastructure and

subsidisation of regional access, generally with bipartisan support.Government-operated post

office and telegraph networks - the largest parts of the bureaucracy - were amalgamated into a

single department in each colony on the model of the UK Post Office: South Australia in 1869,

Victoria in 1870, Queensland in 1880 and New South Wales in 1893.

In New Zealand the pre-emptive Wireless Telegraphy Act 1903 had provided that only the

Government was permitted to receive/transmit wireless communications.Radio arrived some

time later: the first domestic transmission was made by the Marconi Company at the 1906

Christchurch International Exhibition and the first trans-Tasman transmission was made from

HMS Pioneer (in Wellington harbour) via HMS Powerful in the Tasman Sea to HMS Psyche (in

Sydney harbour) on 3 February 1908. A government short-wave radio-telegraph link was

established with Apia in 1927, extended to 1930.A public radio-telephone service between

Australia and New Zealand commenced on 25 November 1930. In July of the following year that

was linked to the UK-Australia radio-telephone service, which utilised beam wireless stations in

Victoria at Ballan and Rockband.Those stations were opened in 1927 by Amalgamated Wireless

Australasia (AWA).

In Australia the Datel service, launched in 1969, featured modems leased from the PMG for

transmission of data at low speeds over voice quality lines on a dial-up basis or at higher speeds

over dedicated lines that had better performance characteristics but were only available between

a few points. In 1973 around 2,500 modems were in use; that grew throughout the decade.

Telecommunications industry deals with the activities and services of electronic systems for

transmitting messages through cables, telephone, radio or television. Two major factors

responsible for the growth of telecommunications industry are use of modern technology and

market competition.Telecommunications industry is going to be a digitized one. Use of ISDN

(Inter Services Digital Network) makes this telecommunication industry a total digitalized

system and eventually enhanced the speed and quality of digital communication.During the

period of 1990, the telecommunication industry showed a speedy growth in terms of investment

and eventually increased the competition.

The telecom market revenues in Australia passed the $40 billion mark in 2011, reflecting the

mildness of the downturn in Australia compared with other countries. However, as has been the

case in 2011, growth is likely to remain very subdued in the coming years.The telecom market of

Australia is a highly competitive market with a well-established independent regulator.Australia

is a leading market in smart phone penetration in the world with local smart phone ownership

predicted to grow to over 60% in the next 12 months along with an expected doubling in the

volume of mobile data traffic. In particular, growth projections in the order of 280% to 2015

reflect the high demand for mobile broadband throughout the economy.In this industry scenario,

TaiyouReports.com analyzes the Australian telecom sector in its research report Telecom

Industry in Australia.An analysis of the global telecom industry through an industry definition,

industry statistics, industry value & volume analysis, industry segmentation, and a look at the

competition in the global telecom industry.

Telstra, Optus and Vodafone are the biggest players of the Australian telecom industry. Telstra

still dominates the overall Australian telecoms market, although it received just under a 60%

market share of overall revenues in 2011, well down from the 80% market share it held in the

early 2000s.

The Australian Communications and Media Authority (ACMA) manages Australia's input into

international telecommunications standards, as required by section 8 of the Australian

Communications and Media Authority Act 2005. This role includes leading Australia's

delegations to higher-level International Telecommunication Union (ITU-T) meetings, including

the World Telecommunication Standardization Assembly (WTSA) and the Telecommunication

Standardization Advisory Group (TSAG).The ACMA also administers the Australian National

Study Group process which is the primary vehicle for developing Australian input into the

making of international standards for telecommunications.The main aim of the MRAs is to

promote trade liberalization and economic cooperation with co-signatories to these

arrangements.

The ACMA participates in various ITU fora. The three Sectors of the ITU - Radio

communications (ITU-R), Telecommunications Standardization (ITU-T) and

Telecommunication Development (ITU-D) - work today to build and shape tomorrow's networks

and services. Their activities cover all aspects of telecommunication, from setting standards that

facilitate interworking of equipment and systems on a global basis to adopting operational

procedures for the vast and growing array of wireless services and designing programmes to

improve telecommunication infrastructure in the developing world.

The ITU's World Telecommunication Standardization Assembly (WTSA) defines general policy

for the ITU-T's telecommunication standardization sector. It is also responsible for establishing

the ITU-T's Study Groups and approving the study group four-year work programs. The WTSA

is held every four years, with the most recent Assembly concluded in November 2008.The

ITU's Telecommunication Standardization Advisory Group (TSAG) is responsible for reviewing

the priorities, programs, operations, financial matters and strategies for the ITU

telecommunication standardization sector. It also establishes and provides guidance to the ITU

study groups (see below). The ACMA is responsible for managing Australian technical input

into the ITU.ITU Telecommunications Study Groups (ITU-T SGs) are responsible for

developing recommendations (voluntary standards) about telecommunications standardization

matters. The focus and work of the ITU-T SGs is assigned at four yearly World

Telecommunication Standardization Assembly meetings or by the ITU's Telecommunication

Standardization Advisory Group.

Australian input into international telecommunications standards making activities is developed

through a system of National Study Groups (NSGs).NSG conveners are appointed by the

ACMA.

The Asia-Pacific Telecommunity (APT) is a regional telecommunications organization whose

aims include ensuring that the development of telecommunications services is balanced with the

region's socioeconomic development and strengthening cooperation in the planning and

management of telecommunications services in the Asia-Pacific region.

Present Position and Trend of Telecom Industry in Australia

Telstra has done exceptional well during 2011 and 2012 and set to continue this into 2013. Optus

has been holding on but needs to come up with new innovations to progress further, the hope for

Vodafone is that 2013 will see an end to their troubles and that they indeed are able to turn the

corner and start reclaiming their position in the market. The second-tier market is making gains

in broadband and they are stepping up IPTV and other OTT activities and these will then be

bundled into their other product offerings.

It has become clear that OTT is ‘the new normal’ for the telecoms industry - with the emerging

all-IP networks; telecoms services are basically moving to new business models.These services

are seen as a threat by the traditional telcos and so far they have been unable to come back with a

competitive reaction.

Telstra continues to dominate the overall Australian telecom market although just under 60%

market share of overall revenues in 2013. Market share continues to drop from the highs that it

held in the early 2000s of around 80% market share.The mobile broadband market is fast

becoming a major income revenue stream for the providers, having taken over the mobile voice

sector. But increased usage has caused data traffic jams on the 3G networks as the infrastructure

was not designed for the rapid increase of traffic over the last couple of years.

Overall BuddeComm expects that the MNOs will have earned over $17.5 billion in revenue from

mobile services by mid-2012 – a growth rate of just over 1% year-on-year.For the MNOs, the

results of the latest financial year – Telstra’s total mobile revenue passed $8 billion, with Optus

around $6 billion. VHA, the entity created with the merger of Vodafone and Hutchison,

generated revenue close to $4.5 billion.Mobile data usage increased by nearly 80% year-on-year

to mid-2012 with nearly seven terabytes downloaded over the air in a three-month period.

The second tier market has been dominated by industry consolidation, a process that is set to

continue over coming years.The other important development has been Telstra’s aggressive

activities to increase their market shares and this has been hurting the 2nd tier market. This is

clearly reflected in this year data, total revenues are under $3 billion, well under 10% of the total

telecoms market in Australia. This again shows the dominance of in particular Telstra. This year

we have left Vodafone out of the 2nd tier market segment, but for comparison reasons there are

still references to them.

The new regulatory framework is designed to promote:the long-term interests of 'end-users of

telecommunications services andthe efficiency and international competitiveness of the

Australian telecommunications industry.Under this framework, industry self-regulation is

encouraged in all areas, including access, technical standards, interconnection standards, and

consumer and customer service standards. Government regulators have powers to intervene if

industry self-regulation is not working effectively in specific instances.Three main types of

industry operators are subject to regulation under the new framework:Carriers, carriage service

providers andcontent service providers.

A carrier is a holder of a carrier license granted by the ACMA under the Telecommunications

Act 1997.Since 1 July 1997, there has been no limit on the number of carriers that can be

licensed to operate in the Australian telecommunications industry.A carriage service provider is

a person who supplies, or proposes to supply, certain carriage services using network units.

Internet service providers may be classed as carriage service providers. Carriers may also be

carriage service providers.A content service provider is a person who supplies broadcasting and

on-line services. These providers have access rights under the Trade Practices Act 1974.

Regulatory framework operates Industry Codes, Industry Standards and Technical Standards.

Industry Codes are rules or guidelines governing particular aspects of telecommunications,

developed by industry. Industry Standards are rules or guidelines similar to industry codes, but

determined by the ACMA. Technical Standards cover the technical parameters of customer

equipment, such as cables and networks.

The ACMA's role is toRegister Industry Codes when they are developed by bodies such as

Communications Alliance Ltd (formerly ACIF/SPAN). Call for the creation of codes on

important matters if representative industry groups do not do it voluntarily andmake standards

where codes are not forthcoming or codes on important matters fail.Priority is given to industry

voluntarily developing and enforcing codes. Thus, until 1 January 1998, the ACMA could not

make a standard. This restriction is intended to allow industry associations, such as the

Communications Alliance Ltd, time to develop codes regulating their practices.

Standards and codes are developed in line with public interest criteria, the representatives of

Working Committees, the openness and transparency of processes, and the extent of public

consultation. As described in Communications Alliance Ltd's operating manual and guideline

documents on Code Development, the majority of Codes will be submitted to the ACMA for

registration. These will then be enforced by industry Code Administrations and Compliance

Schemes.

The ACMA is a regulator of the Australian communications industry. It was formed on 1 July

2005 as a result of the merging of the Australian Communications Authority (ACA) and the

Australian Broadcasting Authority (ABA). The ACMA is responsible for the regulation of

broadcasting, the internet, radio communications and telecommunications consumer and

technical matters.The ACMA regulates customer equipment and cabling connected to networks

and facilities. However, the ACMA may delegate much of the responsibility for standards-

setting, compliance testing, labeling and the issuing of cabling licenses to Communications

Alliance Ltd.

The ACCC regulates competition in the telecommunications industry. It took over these

responsibilities from AUSTEL on 1 July 1997. Its major functions in relation to the

telecommunications industry areadministration of the new telecommunications access regime

andregulation of anti-competitive conduct.The ACCC is also responsible for general consumer

protection and competition regulation across all industries. For example, it approves access codes

developed by the industry and undertakes arbitration where industry is unable to agree.

The Department of Broadband, Communications and the Digital Economy provides advice on all

regulatory policy aspects of the telecommunications, radiocommunications and postal sectors.

The Telecommunications Industry Division also provides advice on legislative and

administrative arrangements for Telstra and Australia Post.

Policy advice is provided in relation to the Telecommunications Act 1991 and associated

legislation including price regulation, universal service, role and functions of the Australian

Communications Authority, consumer safeguards, carrier powers and immunities, the postal

industry, the Radio communications Act 1992, electromagnetic energy and public health issues,

telecommunications industry and matters relating to the carriers network rollout, managing

Australia's interest in international and regional telecommunications agencies and organizations

such as the Asia-Pacific Economic Cooperation, INTELSAT, Inmarsat, the International

Telecommunications Union and the Asia-Pacific Telecommunity.

There are some industrial bodies central to the new telecommunications regulatory

framework.Communications Alliance Ltd resulted from the merger of the Australian

Communications Industry Forum (ACIF) and the Service Providers Association Inc.The

Australian Communications Access Forum (ACAF) is an industry self-regulatory body,

approved by the ACCC.The Telecommunications Industry Ombudsman (TIO) is an independent

dispute resolution forum for complaints made by residential and small business consumers of

telecommunications services.The Australian Communications Consumer Action

Network (ACCAN) is the peak body that represents all consumers on communications issues

including telecommunications, broadband and emerging new services.The Australian

Telecommunications Users Group (ATUG) is a national non-profit organization that represents

the interests of telecommunications users.The Communications Law Centre (CLC) is a research,

teaching and public education centrespecialising in media and communications law and policy. It

was established in 1988 and now has offices in Sydney and Melbourne.

Applying for Telecommunication License

There are two types of organisations that can provide telecommunications services to the public -

carriers and carriage service providers (CSPs).The owner of a network unit (cable or wireless

facility) which is used to supply carriage services, for example telephony or internet, to the

public, must hold a carrier licence. Licensed carriers provide the infrastructure on which carriage

and content services are provided to the public. A nominated carrier declaration allows the owner

of a network unit to delegate its obligations, under a carrier licence, to another licensed carrier

(i.e. the nominated carrier). The nominated carrier is legally responsible for the licence

obligations.

Application forms for carrier licence, nominated carrier declaration and trial certificates are

available below. CSPs do not require a carrier licence, but are required to comply with a range of

obligations set out in Schedule 2 of the Telecommunications Act 1997.Persons wishing to apply

for a carrier licence, a nominated carrier declaration, trial certificate, or operate as service

provider are urged to familiarise themselves with the provisions of the Telecommunications Act

1997 and the Telecommunications (Consumer Protection and Service Standards) Act 1999.

The Australian Communications and Media Authority (ACMA) has responsibility for

administering the carrier licensing regime. Queries concerning the carrier licensing regime

should be referred to the Telecommunications Licensing, Numbering and Subcables Section.

The ACMA is responsible for regulating online content, including internet and mobile phone

content, and enforcing Australia's anti-spam law.

The ACMA's responsibilities include:

promoting self-regulation and competition in the communications industry, while protecting

consumers and other users, fostering an environment in which electronic media respect

community standards and respond to audience and user needs, managing access to the

radiofrequency spectrum, representing Australia 's communications interests internationally.

The ACMA plans the channels that radio and television services use, issues and renews licences,

regulates the content of radio and television services and administers the ownership and control

rules for broadcasting services.The ACMA is responsible for regulating online content (including

internet and mobile content) and enforcing Australia's anti-spam law.The ACMA licences

Australia's telecommunications carriers and regulates fixed line and mobile

telecommunications.The ACMA plans and manages the radiofrequency spectrum in Australia. It

is responsible for compliance with licensing requirements and investigating complaints of

interference to services.

The Telecommunications Cabling Provider Rules 2000 (CPRs) regulate the cabling industry

and ensure that minimum cabling requirements are in place to promote safety and maintain

network integrity.

The major requirements of CPRs are all customer cabling work in the telecommunications, fire

security and data industries must be performed by a registered cabler, depending on the cabling

work performed, cablers must obtain either an Open, Restricted or Lift registration that meets the

ACMA's training competency requirements, cabling work must comply with the Wiring Rules,

which detail the minimum requirements for cabling installations to ensure that network integrity

and the health and safety of end-users, other cablers and carrier personnel is protected,

telecommunications cabling is adequately separated or segregated from electrical cabling to

avoid creating a dangerous situation, cablers are required to install only cabling product

(including cable) and customer equipment that complies with the requirements of the Labelling

Notice, cablers must, at the completion of each cabling task, provide the client with a job sign-

off form such as a Telecommunications cabling advice form - TCA1 form

Frequency assignment is the identification of suitable radiofrequencies for use in accordance

with the ACMA legal and policy requirements. Frequency assignment requires knowledge of,

and the ability to apply in an appropriate manner, the following reference

information:the Australian Radiofrequency Spectrum Plan, band plans and channel plans, where

they exist. (Note that most spectrum is not covered by formal band plans), spectrum

embargoesITU Radio Regulations and Recommendation intra-service and inter-

service frequency assignment requirements, generic technical licence conditions and special

licence conditions, classified frequency information and non-assignedlicence data or pre-

assigned frequencies.

The ACMA plays a role in the regulation of premium and adult content phone services and, in

co-operation with the Department of Broadband, Communications and the Digital Economy,

has sought expert advice on the potential impact of new mobile telecommunications services.

Under the Do Not Call Register Act 2006 (the Act) telemarketers and fax marketers must not

contact numbers registered on the Do Not Call Register.The prohibition on making unsolicited

calls or faxes to a number on the Do Not Call Register does not apply ifthe telemarketer or fax

marketer had washed their list in the last 30 days and the number was not on the registerthe

relevant phone or fax account holder or their nominee consented to the call or fax the call or fax

was made or sent, or caused to be made or sent by mistake or the person took reasonable

precautions, and exercised due diligence, to avoid the contravention.

The legislation provides a range of enforcement options to the ACMA to deal with minor to very

serious breaches. Penalty options include issuing formal warnings and infringement notices,

seeking enforceable undertakings and taking civil court action.The ACMA’s general approach to

compliance is to negotiate and resolve the matter, without resorting to formal procedures.

However, if informal resolution is unsuccessful or inappropriate the ACMA will take appropriate

enforcement action.Further information about the ACMA’s approach to complaints and

investigations and the enforcement actions and penalties is available.Detailed advice about

measures that telemarketers and fax marketers can take to comply with key requirements of the

legislation is available in the Do Not Call Register Act 2006 Compliance Guide

The ACMA charges licensed carriers to recover the cost of regulating the telecommunications

industry. The annual licence charge paid by each carrier is based on a fixed minimum amount

and a variable component based on the carrier’s share of ‘eligible revenue’.

The variable component for each carrier is calculated using the formula:(total amount to be

recovered through annual carrier licence charges—total amount to be recovered through fixed

components) x (carrier's eligible revenue/total eligible revenue of all carriers).The annual charge

to carriers consists of a fixed component of less than $1,000 and a variable component based on

eligible revenue. These charges are invoiced in the latter part of the financial year.

Present Trade barriers to Entry for Telecom Industry

Barriers to entry in this industry are high and are decreasing.Following the removal of carrier

restrictions in 1997, there was an explosion in the number of licensed carriers from three to just

over 100. Self regulation was supposedly one of the main tenants of the new regulatory regime

that was theoretically designed to allow and encourage open competition in the industry.Despite

the fundamental changes that have occurred in the regulatory backdrop, there still exist a number

of barriers to entry, many of which are associated with the inherent characteristics of the

telecommunications sector.The major barrier is the highly capital intensive nature of the

telecommunications business with its extremely high level of infrastructure costs. It should be

noted that technological innovations are reducing the infrastructure costs of entry.It is important

to note that barriers to entry will vary between the various segments within the Wired

Telecommunications industry. For example, barriers to entry for switched service providers in

the international direct dialling (IDD) market segment are lower than the local call market as a

result of lower interconnection costs and more concentrated call patterns.Thus barriers to entry

are generally considered to be very high given the nature of the local call market, various

geographic constraints and the existence of Telstra's PSTN as the only ubiquitous fixed local

access network within Australia. In comparison, entry barriers are lower in the IDD market

segment as evidenced by the entry of a number of new participants in recent years.The

Australian Government's $43 billion National Broadband Network will dramatically alter the

future make up of the Australian Wired Telecommunications industry. The NBN Co. will

operate a wholesale only fibre network, in direct competition with Telstra's PSTN. The NBN Co.

will dilute the dominance that Telstra has over the Australian.