international business sugar

8/14/2019 International Business SUGAR

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SUBMITTED TOProf. PANDITSUBMITTED BY

SURESH BOKKA (8108)DHAWAL GADA (8118)ARVIND GUPTA (8123)SANTOSH JAGDALE (8127)

AMAR VORA (8160)


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USA INCOME GDP (2008): $14.41 TRILLION GDP growth 0.7% (2008)

FED. BUDGET

(2006): TOTAL RECEIPTS, $2,407.3 BILLION; TOTAL OUTLAYS,

$2,655.4 BILLION; (2008 EST.): TOTAL RECEIPTS, $2,662.5 BILLION; TOTAL OUTLAYS,

$2,901.9 BILLION

PERSONAL INCOME PER CAPITA (2007): $46,000

MEDIAN FAMILY INCOME (2006): $58,526 CONSUMER CREDIT OUTSTANDING (2008): $2,524.5

BILLION


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GDP by sector :- agriculture (0.9%),industry (20.6%), services (78.5%)

NUMBER BELOW POVERTY LEVEL (2006): TOTAL, 36,460,000;

WHITE, 24,416,000; BLACK, 9,048,000; HISPANIC, 9,243,000; ASIAN,

1,353,000

Inflation :- 3.7% (Oct 2007 to Oct 2008)

-1.5% (Aug2008- aug2009)Labor force:-154.5 million (includes

unemployed) (May 2008)

Unemployment:- 6.5% (October 2008)

Main industries:- Petroleum, Steel,chemicals, Telecomm, consumer goods,Mining


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PER CAPITA PERSONAL INCOME

2002 $ 30,810

2003 $ 31,484

2004 $ 33,050

2005 $ 34,7572006 $ 36,714

2007 $ 38,611

The story of the American people is a story of immigration and

diversity. The United States has welcomed more immigrants than

any other country -- more than 50 million in all -- and still admits

almost 700,000 persons a year


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EDUCATION

Public elementary school pupils, pre-Kgrade 8 (2007):34,592,000 Public secondary school pupils, grades 912 (2007):

15,018,000 Private elementary school pupils, Kgrade 8 (2007):

4,784,000 Private secondary school pupils, grades 912 (2007):

1,368,000 High school dropout rate, ages 1624 (2006): 9.3%Total 2- and 4-year colleges and universities (2007):

4,314Total higher education enrollment (2006): 17,921,804 Undergraduate (2007): 15,385,000 Graduate (2007): 2,224,000 Professional (2007): 348,000


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DEMOGRAPHICS

Characteristic Number(thousands)

Medianincome

All households 116,783 $50,303

Type of household

Family households 77,873 62,621

Married-couple

families

58,370 73,010

Female householder,

no

husband present

14,404 33,073

Male householder,

no

wife present

5,100 49,186

Nonfamilyhouseholds

38,190 30,078


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RACE AND HISPANIC ORIGIN OFHOUSEHOLDER

White 95,112 52,312

Non-Hispanic 82,765 55,530

Black 14,551 34,218

Asiana 4,494 65,637

Hispanic origin1 13,339 37,913

Age of

householder

1524 6,554 32,270

25&ndash34 19,225 51,400

35&ndash44 22,448 62,954

45&ndash54 24,536 64,349

55&ndash64 19,909 67,265

65 and over 24,113 29,744


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NATIVITY OF THEHOUSEHOLDER

Native 101,104 51,056

Foreign born 15,680 43,493

Naturalized

citizen

7,469 51,524

Not a citizen 8,211 37,951

Region

Northeast 21,351 54,346Midwest 26,266 50,112

South 43,062 45,490

West 26,105 55,085


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USA EXPORTS 2004


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INDIA INTRODUCTION

The Major Export products from India are asfollows: 1) OIL MEALS

2) RICE (OTHER THAN BASMATI)

3) MARINE PRODUCTS4) SUGAR5) RICE BASMATI6) SPICES7) MEAT & MEAT PREPARATIONS

8) OTHER CEREALS9) CASHEW10)TEA


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SUGAR

INDIA IS THE SECOND LARGEST COUNTRY INTERMS OF SUGARCANE PRODUCTION 30% OF THE TOTAL SUGAR PRODUCED GOES

FOR GUR AND KHANDARI

45% GOES FOR SUGAR PRODUCTION AND THE25% FOR ALCOHOL PRODUCTION (ETHANOL)

6 STATES CONTRIBUTE MORE THAN 85% OFTOTAL SUGAR PRODUCED IN INDIA


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INDIAN & GLOBAL SCENARIO

INDIA PRODUCES 26 metric tones ON ANAVERAGE BUT THE PRODUCTION FOR THEFY09 IT IS EXPECTED TO GO BELOW BY20%

GOLBAL CONTRIBUTION IS 3% BY INDIA,BRAZIL ALONE DOES 36% AND OTHERCOUNTRIES GIVE A TOTAL OF 45% ANDTHE REST IS DONE BY CHINA, CUBA ,

INDONEASIA, THILAND, U.K AND USA WORLD COUNSUMPTION OF SUGAR 150.3

MMT FOR 2007-2008, PROJECTED TOBECOME 160.7 BY 2010


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STATEWISE PRODUCTION


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SUGAR CONTRIBUTION


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MANUFACTURING PROCESS

Pressing of sugarcane to extract the juice.

Boiling the juice until it begins to thicken andsugar begins to crystallize.

Spinning the crystals in a centrifuge toremove the syrup, producing raw sugar.

Shipping the raw sugar to a refinery where itis washed and filtered to remove remainingnon-sugar ingredients and color.

Crystallizing, drying and packaging therefined sugar


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TYPES OF SUGAR

1. Granulated Sugar..

2. Regular Sugar, Extra Fine or FineSugar

3. Fruit Sugar4. Bakers Special

5. Superfine, Ultrafine, or Bar Sugar

6. Confectioners ( Powdered ) Sugar

7. Coarse Sugar


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THE KEY PLAYERS IN SUGARINDUSTRY

BAJAJ HINDUSTAN LTD.

(ENTERPRISE VALUE: Rs mn 62,136)

BALRAMPUR CHINNI MILLS LTD.(ENTERPRISE VALUE: Rs mn 32,819)

SHREE RENUKA SUGARS LTD.

(ENTERPRISE VALUE: Rs mn 43,283)


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INDIA HAS AN AVERAGE EXPORTEABLE

SURPLUS OF 6.23 million tones EVERY YEAR THE PAST FIVE YEARS IT EXPORTED 4.07

million tones

SINCE DOMESTIC PRICES ARE HIGHER THAN

INTERNATIONAL THE RATE OF EXPORT ISEXPECTED TO COME DOWN

THE MAJOR IMPORTING COUNTRIES OF INDIAARE BANGLADESH, PAKISTAN, U.K,

JAPAN,S.KOREA AND THE NEW ONES ARE KHAZAKISTAN &

IRAN

SUGAR EXPORT


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INDIA EXPORT DATA

India Export data is based on shipping bills filed at Indiancustoms at the time of export clearance. This data isreleased regularly, on monthly basis, by individual customhouses. They collect Export statistics from all the majorPorts, ICDs, Airports, and CFS, of India. Team of experts

process each & every records of Export Import data andpresent in a very user friendly format.

Details of Indian Export data includes:

Date of Shipment, HS Code, Item Description, Quantity,

Unit, FOB Value, Foreign Country, Indian port & IndianExporter Name.


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EXPORT STATISTICS : %GROWTH COUNTRY WISE

Country 2006-2007 2007-2008 PercentageGrowth

INDIA 0.1525 0.0000 0.00

BANGLADESH 354.3057 940.0435 165.32

U ARAB EMTS 405.8967 893.6217 120.16

SAUDI ARABIA 468.7718 865.5990 84.65

MALAYSIA 216.3986 525.6113 142.89

USA 295.2259 349.1027 18.25

KUWAIT 168.8120 232.2781 37.60

UK 177.3321 221.3068 24.80

INDONESIA 141.7625 183.5557 29.48

YEMEN REPUBLC 73.1232 179.8668 145.98

SRI LANKA 101.0471 159.7465 58.09

PHILIPPINES 109.6047 154.1659 40.66

NETHERLAND 102.6608 150.3438 46.45

EGYPT A RP 73.3384 137.7309 87.80

PAKISTAN 137.9383 135.7806

All product:- Values in USD MillionSource: DGCIS Annual Export


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INDIAN EXPORT STATISTICS

2003-

2004

2004-

2005

2005-

2006

2006-

2007

2007-

2008

Country Qty Value

Qty Value

Qty Value

Qty Value

Qty Value

USA 183405.18

69850

.24

18862

2.29

78946

.67

29493

4.17

12720

6.23

29389

6.10

13308

7.85

32830

5.50

14124

6.96

Qty in Million Tons Value in lakhs

2005-06 2006-07 2007-08PRODUCT Qty Value Qty Value Qty Value

JAGGERY ANDCONFECTIONERY

112644.06

26497.09

455935.85 87346.11

2408129.70

281068.20


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WORLD SUGAR BALANCE

2008/09 2007/08 Change

(mln tonne) in mln t in %

Production 161.527 168.611 -7.084 -4.20

Consumption 165.801 162.241 3.560 2.19

Surplus / Deficit -4.274 6.370

Import demand 49.621 45.948 3.673 7.99

Export availability 49.608 46.245 3.363 7.27

End Stocks 66.272 70.533 -4.261 -6.04

Stocks/Consumption ratio in%

39.97 43.47

Source: ISO quarterly market outlook, February 2009


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USAS TOP 10 SUGARSUPPLIERS

1. Brazil US$109.1 million (13.2% of total US sugarimports)

2. Mexico $103.5 million (12.5%)

3. Dominican Republic $101.9 million (12.3%)

4. Philippines $71.4 million (8.6%)

5. Guatemala $67 million (8.1%)

6. Australia $59.7 million (7.2%)

7. Costa Rica $41.4 million (5%)

8. El Salvador $34.7 million (4.2%)

9. Peru $31 million (3.8%)

10. Nicaragua $28.1 million (3.4%)


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AMERICAS FASTEST-DECLININGSUGAR SUPPLIERS

1. Sweden US$17,000 - Down 98.2% from 2006,2. Belgium $321,000 - Down 97%

3. Finland $158,000 - Down 92.2%

4. Colombia $5.5 million - Down 89.9%

5. Turkey $52,000 - Down 79.9%

6. Mexico $103.5 million - Down 72.7%

7. Zimbabwe $5.8 million - Down 65.2%

8. France $1.6 million - Down 63.4%

9. Argentina $12.3 million - Down 62.9%

10. Swaziland $5.6 million Down 60.2%

Of the 60 countries that supply imported sugar to the U.S., forty sugar-

exporting nations saw their sales fall last year


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AMERICAS FASTEST-GROWINGSUGAR PROVIDERS

1. Switzerland US$229,000 - Up 3,171% from 2006,Up 1,331% from 2003

2. Germany $238,000 - Up 2,280%, Up 303.4%

3. Croatia $49,000 - Up 1,125%, Up 16.7%

4. Iran $184,000 - Up 982.4%, Up 308.9%

5. Italy $13,000 - Up 85.7%, Up 225%

6. India $5.1 million - Up 67.5%, Up 61.1%

7. Portugal $15,000 - Up 50%, Up 200%

8. Paraguay $23 million - Up 26.7%, Up 209.2%

9. El Salvador $34.7 million - Up 25.5%, Up 4.1%

10. South Korea $45,000 - Up 25%, Up 542.9%.

OTHER LEADING SOURCES FOR AMERICAN


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OTHER LEADING SOURCES FOR AMERICANSUGAR IMPORTS

1. Canada US$23.6 million (2.9% of total US sugar imports)

2. Paraguay $23 million (2.8%)

3. Panama $18.7 million (2.3%)4. Honduras $17.3 million (2.1%)

5. Argentina $12.3 million (1.5%)

6. South Africa $10.2 million (1.2%)

7. Thailand $6.8 million (0.8%)

8. Belize $6.2 million (0.75%)

9. Ecuador $5.9 million (0.71%)

10. Taiwan $5.87 million (0.71%)

11. Zimbabwe $5.83 million (0.7%)

12. Swaziland $5.6 million (0.67%)

13. Colombia $5.5 million (0.66%)

14. Guyana $5.3 million (0.64%)15. India $5.1 million (0.62%).

Together with the top 10 list, the above-mentioned 25 countries represent 94% of

sugar sold to America in 2007

SWOT ANALYSIS OF INDIAN MARKET IN


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STRENGTHS

GLOBAL PRICES TO MOVE UP

THE DEMAND IS EVERLASTING

ENVIRONMENTAL CONDITIONS SUITABLE FORTHE GROWTH OF SUGAR CANE

ABOUT 2.7% CULITVABLE LAND IS USED FORTHE CANE PRODUCTION

THE SUGAR INDUSTRY ALSO INCLUDESALCOHOL, GUR AN KHANDRI WHICH ISMAINLY FOR THE DOMESTIC INDUSTRY

SWOT ANALYSIS OF INDIAN MARKET INSUGAR INDUSTRY


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WEAKNESS

PRODUCTION TO DECLINE BY 20-25% INFY09

SHIFT OF THE FARMER FROM CANE TOPADDY, WHEAT, PULSES AND OIL SEEDS

THE IGNORANCE IN THE RESIDUAL

SUGAR MARKET SOME OF THE GOVERNMENT POLICY

THAT ADHERE THE GROWTH OF THESUGAR INDUSTRY

SHORTAGE IN SUGAR CANE SUPPLY OBSELETE TECHNOLOGY


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OPPRTUNITIES

PRICES TO RISE BY 25% IN FY09 AND MOREIN FY10E

HIGHER MARGINS AND LOWER COST OFPRODUCTIONS

THE ON GOING INCREASE IN DEMAND YEARAFTER YEAR

THE SHIFT OF BRAZIL FROM WHITE SUGARTO PRODUCTION OF ETHANOL


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THREATS

LESS RAINFALL IN THE HIGHEST SUGARCANECULTIVATING REGIONS

DUE TO WATER SHORTAGE THE SHIFT OF THEFARMERS TO MULTIPLE CROPS CULTIVATION

DUE TO GOVERNMENT POLICIES THE SELLINGOF SUGARCANE BY THE FARMERS TO PRIVATE

SECTORS SUGAR PRODUCTION BEING MORE VOLATILE

THAN CANE PRODUCTION

DUE TO RISE IN DOMESTIC CONSUMTION THE

EXPORT IS LIKELY TO FALL


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CONCLUSION.

INDIA IS LACKING DUE TO ITS POLICY,METHODS,AND LACK OF KNOWLEDGE FOR

THIS,ONLY GOVERNMENT CAN MAKE A BIG CHANGE

INDIA INCLUDES SUGAR AS AN ESSENTIAL

COMMODITY AN IT HAS BECOME MORE LIBERAL INTHIS SECTOR

INDIA HAS THE POTENTIAL TO BECOME THE WORLDSBIGGEST EXPORTER BY REMOVING THE MISSING

LEADS.


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T

HANKYOU

international business sugar

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