TYPES OF EXPORT MARKETING ORGANISATIONS

SUB: EXPORT- IMPORT PROCEDURES AND DOCUMENTATION

Group Members

• DHAVAL BHATT - 18

• ANUJ GANGODKAR - 48

• ANKUR BHOGESARA - 20

• BHAVIK DESAI - 37

• MADHURI AMIN - 08

• JANHAVI ANAVKAR - 10

• KAREENA DUA - 43

• ROHIT GUPTA - 53

• SALMAN ANSARI - 12

• RAHIL DAREDIA - 32

• In India, different types of Export Marketing Organizations are operating. They are as follows:

Manufacturer Exporter

Merchant Exporter

Export Houses

Star Export Houses

Trading Houses

Star Trading Houses

Canalizing Agencies

State Export Corporations

Export Consortia

Government Public Sector Trading Corporation

MANUFACTURER-EXPORTER• Manufacturer Exporter" means a person who manufactures goods

and exports or intends to export such goods. The manufacturer exporter procures and process raw materials at his factory and exports finished products. Here, the manufacturer exporter procures the export order and exports in their own name

•  They are not dependent on intermediaries for exporting

• some exporter manufacture superior quality called "export quality products".

• Since export trade requires huge financial support only large organization can manage this.

• In India large business houses such as Tata, Birla's, Ambuja Cement,L&T etc. act as manufacturer exporter

• some establish subsidiary for export marketing e.g.. PATODIA Internationalist division of GTN group.

INDIA’S LEADING MANUFACTURER EXPORTER

• LARSEN & TOUBRO LTD:

CEMENT,CEMENT CLINKERS,CHEMICAL PLANT & MACHINERY,CONSTRUCTION, EATHMOVING & ROAD MAKING EQUIPMENT, HYDRAULIC EQUIPMENT,DAIRY PLANT & MACHINERY, EQUIPMENT & SYSTEMS FOR NUCLEAR AND THERMAL POWER,DIESEL ENGINE AND SPARE PARTS.

• HUL:BASIC CHEMICALS,COSMETICS,BASMATI RICE, ATTA, JAMS, SOUPS,

GHERKINS,BULK TEA, PACKET TEA, TEA BAGS, INSTANT TEA, COFFEE IN ALL FORMS,CHUTNEY,PICKLES,EXTRACTIONS,EYE MAKE UP PREPRATIONS, LIP MAKE UP PREPARATIONS,

• TATA:SOLAR SYSTEMS LIMITED SOLAR CELLS, SOLAR PPOWER SYSTEMSHOTOVOLTIC MODULES, SOLAR POWER GENERATING SYSTEMS, SOLAR

THERMAL TATA

Merchant Exporter

Merchant exporters are primarily marketing trading organizations specialized in exporting Indian goods. They book orders directly or through their agents & act as a middlemen between Indian Exporters & Foreign Buyers. Merchant exporters focus on the demands in foreign market & therefore are in less risk, by adapting export marketing strategy.Merchant exporters export products like food Products, Beverages, Exclusive Furniture, Cement, Oil Painting, Computer Technology Items, Processors, Hard Drives, Electrical Products etc; Via. Sea freight, Air freight, Customs House Agents, CHA, LCL, FCL etc.

Export Houses

•Export House is defined as a registered exporter holding a valid Export House Certificate issued by the Director general of Foreign Trade in India.

Objectives of export house

•To make available supplies of essential commodities to consumers at reasonable prices on a regular basis.

•To ensure a fair price of the produce to the farmers so that there may be an adequate incentive to increase production.

• To minimize violent price fluctuations occurring as a result of seasonal variations in supply and demand.

•To arrange for supply of fertilizers and insecticides.

•To arrange for storage, transportation, packaging and processing.

Star Export House

• In April 2007 the government replaced the concept of two star export house by star export house.

• The units eligible to apply for the recognition of star export house include manufacturer exporters, merchant exporters,,units in SEZ etc.

• In order to qualify for star export house, the exporter must have aggregate export performance of rs.100 crore during the four years computed in FOB performance.

• The certificate of star export house is issued by the Director General of Foreign Trade (DGFT).

Star Trading Houses

•The government of India has recognized a new class of trading house called star trading house to facilitate global marketing activities in the export import policy. 1990-93 exporters having exports during the preceding three licensing years of Rs.500 Crs fob shall qualify the exporter for the recognition as a star trading status

objectives of star trading houses

•To make available supplies of essential commodities to consumers at reasonable prices on a regular basis.

•To ensure a fair price of the produce to the farmers so that there may be an adequate incentive to increase production.

•Examples of star trading houses are Aditya Birla and Hindustan Unilever

Trading Houses

DEFINITION OF 'TRADING HOUSE'

•A business that specializes in facilitating transactions between a home country and foreign countries. A trading house is an exporter, importer and also a trader that purchases and sells products for other businesses. Trading houses provide a service for businesses that want international trade experts to receive or deliver goods or services

•For example the Japanese Sogo Shosha, which have evolved organically over time are different to the Indian Export Houses which came into being comparatively recently as a response to policy initiatives of the government. And these, in turn, are quite different to the Export Management Companies of the USA or the Trading Houses of Canada, which grew out of the necessities of their own contexts.

Canalizing Agencies

• Canalizing agencies are concerned with production, distribution and marketing of goods and services.• The main canalizing agency is the State Trading Corporation of India which was established on May 18, 1956.

For example

MMTC Ltd. Metals and Minerals Trading Corporation of India, is one of the two highest earners of foreign exchange for India and India's largest public sector trading body.

State Export Corporation•In India some state government have set up export corporations to promote exports of the products manufactured by the small scale industries(SSIs) and cottage industries.

• Some of the state are Gujarat, Uttar Pradesh and Bihar Which have set-up State corporation for promoting Small Scale Industries(SSIs) and cottage industries.

• These are exclusive export corporations engaged in export marketing of SSIs and cottage industries only.

for example:

GUJURAT STATE EXPORT CORPORATION (GSEC)

•GSEC Limited offers customized air cargo solutions for importers and exporters’ supply chain.

•Spreading our wings to serve domestic trading of Furnace Oil, and bitumen. They are into exports of fruits, vegetables & other horticulture products.

Export Consortia

• Manufactures from the small scale sector find it difficult to export on their own due to financial, marketing and other difficulties.

• They form co-operative marketing groups for joint export marketing

• Small/ individual marketing firms get the benefit of joint marketing research, joint publicity abroad and the benefit of joint shipment of goods

Government Public Sector Trading Corporations

• The government of India has to set up a number of government/public sector trading corporation in the field of foreign trade.• corporations support and supplement the efforts of private sector export organizations.• Corporations handle actual export-import transactions.• maintaining offices/branches abroad and function like any other commercial unit in the private sector.• operation is done as per the guidelines issued by the government from time-to-time.

Various Trading Corporation

• The State Trading Corporation Of India (STC) and its subsidiaries such as spices trading corporation, Tea trading corporation, etc.• The Minerals and Metals Trading Corporations (MMTC):- • MMTC is one of the two highest foreign exchange earner for India (after petroleum refining companies). It is the largest international trading company of India and the first public sector enterprise to be accorded the status of Five Star Export Houses by Government of India for long standing contribution to exports.• Projects and Equipment Corporation• Government Corporations such as Jute Corporation of India, Cotton Corporation of India, National Textile Corporation and so on.