A study of the sales channel and new business opportunities for Kalya Exports

At

Kalya Exports Pvt. Ltd. SUBMITTED BY

Aniket Chauhan Roll No. 64

UNDER THE GUIDANCE OF

Prof. Rashmi Kanitkar

A PROJECT SUBMITTED IN PART COMPLETION OF MMS TO THE

Chetanas R. K. Institute of Management & Research

Bandra (East), Mumbai 400 051.

July 2013

DECLARATION
This is to declare that the study presented by me to ChetanasR. K. Institute of Management and Research, in part completion of the MMS under the title: oppourtunities A Study Of sales channel and new business for Kalya Exports Pvt. Ltd. had been done under the guidance of Prof. Rashmi Kanitkar

Name

: Mr. Aniket Chauhan

CERTIFICATE

This is to certify that the study presented by (Aniket Chauhan) to the ChetanasR. K. Institute of Management and Research, in part completion of the MMS under the title A Study Of sales channel and new business has been done under the guidance of Prof. Rashmi Kanitkar.

The project is in the nature of original work that has not so far been submitted for any Degree of Chetanas R. K. Institute of Management & Research or any other University/ Institute. References of work and

related sources of information have been given at the end of each chapter.

Prof. Rashmi Kanitkar

Prof.Dr. Jayshree Bhakay (Director)

CERTIFICATE FROM COMPANY

ACKNOWLEDGEMENT

I would like to use this opportunity and express my gratitude to all the employees of the Kalya Exports Pvt. Ltd. for their support during my tenure as an Intern. Special thanks to my project guide Mr. Amit Kalya at the company, who made this study possible. Moreover I would like to thank Director of my institute Prof. Dr. Jayshree Bhakay and my acdamic project mentor Prof. Rashmi Kanitkar and rest of the personnel at Chetanas R.K Institute of Management & Research for all the help, guidance and patience.

Without the unconditional support of all these individuals I would have not been able to reach the goal and this report would not have been possible.

EXECUTIVE SUMMARY
Kalya Exports Pvt. Ltd (Nashik), an export oriented company, involved in exports of various fruits and vegetabels since 1993

The project assigned was to communicate to potential prospect companies and convert them to customers. The scope of the Project also covered the study of overall working of the organization. I worked under the guidance of my project guide Mr. Amit Kalya.

This project aims at achieving following objectives:

Understanding the overall working of the company. It included the study of the sales channel for exporting grapes and dispatch procedures.

Attracting new customers. I interacted with around 60 Import companies based in Europe through Email and on Telephone and introduced Kalya exports and its products to them.

INDEX

SR.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

PARTICULARS INTRODUCTION Industry Profile Competitors Company Profile Definition Purpose of Project Scope and Objectives Salient Contributions of the project Outline of the project report Review of Literature Lecithin Applications Manufacturing processes Research Methodology Data Analysis Conclusion Recommendation Bibliography

PAGE NO

INTRODUCTION
Grape cultivation is one of the most remunerative farming enterprises in India. Famous Indian medicine scholars, Sasruta and Charaka in their medical treatises entitled Sasruta Samhita and Charaka Samhita, respectively, written during 1356-1220 BC, mentioned the medicinal properties of grapes. Kautilya in his Arthashastra written in the fourth century BC mentioned the type of land suitable for grape cultivation. Native spp. resembling Vitis lanata and Vitis palmata grow wild in the northwestern Himalayan foothills. Indigenous varieties known as Rangspay, Shonltu White and Shonltu Red are grown in Himachal Pradesh even today. Cultivated grapes are believed to have been introduced into the north of India by the Persian invaders in 1300 AD, from where they were introduced into the south (Daulatabad in Aurangabad district of Maharashtra) during the historic event of changing the capital from Delhi to Daulatabad by King Mohammed-bin-Tughlak. Ibn Batuta, a Moorish traveller who visited Daulatabad in 1430 AD, reported to have seen flourishing vineyards in south India. Grape was also introduced in the south into Salem and Madurai districts of Tamil Nadu by the Christian missionaries around 1832 AD, and into Hyderabad province by HEH, the Nizam of Hyderabad in the early part of the 20th century. From Delhi, Daulatabad, Madurai, Salem and Hyderabad, grape cultivation spread to different parts of the country. PRESENT STATUS OF GRAPE CULTIVATION IN THE COUNTRY Grape is grown under a variety of soil and climatic conditions in three distinct agro-climatic zones, namely, sub-tropical, hot tropical and mild tropical climatic regions in India. Sub-tropical Region: This region covers the northwestern plains corresponding to 28 and 32 N latitude including Delhi; Meerut district of Uttar Pradesh; Hissar and Jind districts of Haryana; and Bhatinda, Ferozpur, Gurdaspur and Ludhiana districts of Punjab. Vines undergo dormancy and bud break starts in the first week of March while the rains arrive in the first week of June, and therefore, only 90-95 days are available from the initiation of growth to harvest. Consequently, Perlette is the only early ripening variety grown in this region. Rain damage is a problem with Thompson Seedless in this region. Single pruning and a single harvest is the accepted practice here.

Hot Tropical Region: This region covers Nashik, Sangli, Solapur, Pune, Satara, Latur and Osmanabad districts of Maharashtra; Hyderabad, Ranga Reddy, Mahbubnagar, Anantapur and Medak districts of Andhra Pradesh; and Bijapur, Bagalkot, Belgaum, Gulberga districts of northern Karnataka lying between 15 and 20 N latitude. This is the major viticulture region accounting for 70 percent of the area under grapes in the country. Vines do not undergo dormancy and double pruning and a single harvest is the general practice in this region. Maximum and minimum temperature is 42C and 8C, respectively. The major problems in this region are soil and water salinity and drought. Berry growth is impaired and in certain locations pink blush sometimes develops on green berries due to temperatures that drop to a low of 8C. Thompson Seedless and its clones (Tas-AGanesh, Sonaka), Anab-e-Shahi, Sharad Seedless and Flame Seedless are the varieties grown in this region.

Mild Tropical Region: An area covered by 10 and 15 N latitude including Bangalore and Kolar districts of Karnataka; Chittoor district of Andhra Pradesh and Coimbatore; and Madurai and Theni districts of Tamil Nadu fall in this region. Maximum temperatures in a year seldom exceed 36C, while the minimum is about 12C. Principal varieties are Bangalore Blue (Syn. Isabella), Anab-e-Shahi, Gulabi (Syn. Muscat Hamburg), and Bhokri. Thompson Seedless is grown only with limited success. Except for Thompson Seedless, two crops are harvested in a year. Vinifera varieties susceptible to mildew suffer losses due to unprecedented rains during flowering and fruit set in both hot and mild tropical regions. Approximately 85 percent of the total production, irrespective of the variety, is consumed fresh. About 120,000 tonnes of Thompson Seedless and its mutants, namely, Tas-A-Ganesh, Sonaka and Manik Chaman are dried for raisins. Some 20,000 tonnes of Bangalore Blue are crushed to make juice, and 10,000 tonnes of Bangalore Blue, Cabernet Sauvignon, Chenin Blanc, Chardonnay, Merlot, Pinot Noir and Uni Blanc are crushed to process into wine.

PRODUCTION OF PLANTING MATERIAL Vines are raised on their own roots in India. Due to the non-prevalence of Phylloxera or nematodes, rootstocks are not employed, but in recent years, the Dogridge rootstock is being employed to combat soil and water salinity problems. Multiplication on Own Roots Grapes are multiplied exclusively by the rooting of hardwood cuttings. No Government agency is involved in the multiplication and supply of rooted cuttings. Growers themselves obtain the hardwood cuttings from elite vineyards and raise their own nurseries. Well matured canes obtained in September/October are selected. Cuttings of 4 nodes each with a thickness of 8 to 10 mm are made from the selected canes. The fresh cuttings are soaked in running water for 24 hours to leach out the water-soluble rooting inhibitors. The basal parts of cuttings are then dipped in a 2,000 ppm strong IBA solution for five minutes before planting. It is also a practice to plant the cuttings in situ when three to four cuttings prepared and treated as above are planted at each spot in the main field. Soil drenching with chlorophyriphos 0.1 percent is a practice to safeguard the cuttings against termite damage. Raising on Rootstocks Hardwood cuttings of the Dogridge rootstock are subjected to rooting, preferably in polybags of 15 x 25 cm. Rooted cuttings of this rootstock are planted in the main field during February-March. The desired scion variety is then grafted/budded on the rootstocks in the field by wedge grafting/chip budding. Wedge grafting is more common and the best time for the operation is September-October, while June-July is the suitable time for chip budding.

ESTABLISHMENT OF VINEYARDS Land Preparation and Vine Establishment The land is tilled and laid into plots of 120 m x 180 m separated by 3 m wide roads. Land within a plot is levelled perfectly to have a gradient of less than 1 percent in any direction to ensure uniform discharge of water through the emitters of drip irrigation systems. Trenches of 75 cm width, 75 cm depth and 118 m length in a north-south direction with a gap of 3 m between trenches are opened with heavy machinery. They are closed with topsoil, up to a height of 45 cm after 15 days exposure to sun. The remaining gap is filled with a mixture of soil, cattle manure, single superphosphate, sulphate of potash and micro-nutrients. Usually, 50 kg of cattle manure, 2.5 kg of superphosphate, 0.5 kg of sulphate of potash and 50 g each of ZnSO4 and FeSO4 are added to the soil for every running meter length of the trench. Planting Season The best season for planting the rooted cuttings of cultivated varieties in the main field is September-October whereas for rootstocks it is February-March. Spacing Spacing generally varies with the varieties and soil fertility. For vigorous varieties it is 6 m x 3 m or 4 m x 3 m and 3 m x 3 m or 3 m x 2 m for less vigorous varieties.

CARE AND MANAGEMENT OF VINEYARDS Training of Vines: Many training systems are in vogue in India, but the most popular are Bower, Telephone and Flat Roof Gable systems. Bower System: Owing to the high productive potential, bower was a very popular system of training in the past. It is highly suited for vigorous varieties like Anab-eShahi, Bangalore Blue and Gulabi. But in varieties like Thompson Seedless and Tas-A-Ganesh where vine vigour and excessive foliage density affects the productivity adversely, this system is not popular.

Telephone System: T-trellis is used in this system of training. With three top wires and T shaped supports, the trellis looks like a telephone pole and wires and hence the name. This system is followed for moderately vigorous varieties like Thompson Seedless and other seedless cultivars in about 25-30 percent of the vineyard area in Maharashtra. Yields in this system are less than the bower. In very hot and dry places, sunburn of the berries and of the arms are experienced in summer. Flat Roof Gable System: Combining the advantage of bower and the extended Y systems and eliminating their disadvantages, an inter-connected Y trellis forming a flat roof gable is being adopted. This system is particularly followed for vigorous vines (vines grafted on rootstocks). The bunches are protected from direct sunlight and well exposed to sprays of pesticides. The clusters hang within the reach of the worker of an average height. Owing to these advantages, this system is gaining popularity among the growers in Maharashtra, Andhra Pradesh and Karnataka.

Diseases and their Management The important grape diseases are anthracnose, downy mildew, powdery mildew and bacterial leaf spot. In recent years, Alternaria is also becoming a serious pathogen. Anthracnose is prevalent in all grape growing regions of the country. The disease is characterized by small light brown or greyish black lesions on tender shoots, young leaves, flowers and young berries. Bordeaux mixture at 0.8 percent, copper oxychloride at 0.25 percent or carbendazim at 0.1 percent are used to control this disease. Downy mildew is the most devastating disease of grapes in the tropical region of the country. The disease mainly appears on the leaves, but also attacks the flower clusters and young fruits. The losses are very high when it attacks the clusters before fruit set. Entire clusters decay, dry and drop down. Properly neutralized Bordeaux mixture at 1 percent, copper oxychloride at 0.2 percent, Mancozeb at 0.2 percent, metalaxyl (Ridomil Mz at 0.2 percent) or Phosethyl-Al (aliettle at 0.2 percent) are used against this disease. Powdery mildew is prevalent in all the grape growing regions. It is next in importance to downy mildew in its devastating severity. The disease is

characterized by the presence of white powdery (ash like) coating in patches on both sides of the leaves, young shoots and immature berries. Powdery mildew is controlled easily by wettable Sulphur formulations. A wide range of fungicides, namely, Calaxin at 0.07 percent, Karathane EC at 0.04 percent, Myclobutanil (Systhane at 0.05 percent), Triademifon (Bayleton at 0.1 percent) and Penconazol (Topas at 0.025 percent) are used to control this disease. Bacteria infects leaves, shoots and berries. The symptoms appear as minute water soaked spots on the lower surface of the leaves, especially along the main and lateral veins. Mostly these spots coalesce and form larger patches. Severely infected leaves give a blighted appearance. Streptocyclin at 500 ppm is used as a prophylactic spray, while Bordeaux mixture at 0.8 percent or copper oxychloride at 0.15 percent is used to check its spread. . Quality Improvement Shoot and Cluster Thinning: Only one or two clusters are retained per cane depending upon the density of the latter. Irrespective of the number of clusters, only the apical two or three shoots are retained. In vines trained to the flat roof gable, individual shoot length is encouraged rather than the total canopy size for preventing sunburn of the berries. Production of Loose Clusters: Pre-bloom GA sprays of 10 ppm and 15 ppm are given respectively on the 11th to 14th day after bud break for cluster elongation. Rachides of the clusters are trimmed to retain 8-10, depending on the number of leaves available per cluster. Clusters are dipped in GA solution of 30-40 ppm when 10-20 percent of the flowers open in each cluster for berry thinning. Increasing Berry Size: Manual means are used to supplement chemical thinning to ensure adequate berry thinning and improve the quality of grapes. Approximately 90-120 berries are retained per cluster depending upon the number of leaves available to nourish it at 8-10 berries per every leaf depending on its size. Clusters are dipped in GA solution of 40-50 ppm concentration once at 3-4 mm size of the berries and again at 7-8 mm size. When berry diameter is to be increased to more than 16 mm, clusters are dipped in a mixture of 10 ppm BA + 25 ppm GA or 2 ppm CPPU + 25 ppm GA or 1 ppm brassinosteroid + 25 ppm GA instead of GA alone at these two stages.

In addition to the treatment with growth regulators, berry size and crispiness are increased by girdling. The width and depth of girdling are 1-1.5 mm. Girdling is done at 4-5 mm diameter of the berries. Increasing the TSS Content: Berry thinning and cluster thinning to maintain adequate leaf/fruit ratio (5 cm2), while girdling will ensure a TSS content of 20B.

HARVESTING AND YIELDS Approximately one million tonnes of grapes are harvested annually in India. Grape is harvested almost all the year round. If not all the varieties, one or more varieties are always available at any given time of the year. However, the major proportion of produce, mainly of Anab-e-Shahi, Thompson Seedless and its clones, is harvested during March-April from the hot tropical region, which contributes more than 70 percent of the total harvest. The productivity of grapes in India is very high, particularly in the Hyderabad region. Yields as high as 100 t/ha in Anab-e-Shahi and 75 t/ha in Thompson Seedless were recorded in this region. However, quality of grapes is usually poor as a result of high yields.

MARKETING More than 80 percent of the total production is consumed as table grapes in India, and more than 70 percent of the total production is harvested in March-April, but the cold storage facilities are inadequate. Therefore, market gluts and fall of prices of grapes in March-April are common. Approximately, 2.5 percent (22,000 t) of fresh grapes are exported to the Middle East and European countries. The rest of the produce is marketed within the country. Grapes are exported through three different agencies viz., Grower Exporters, Growers Cooperatives and the Trader exporters. These agencies have established their own facilities for pre-cooling and cold storage in the vicinity of major production sites.

CURRENT SECNARIO
According to the Food and Agriculture Organization (FAO), 75,866 square kilometers of the world are dedicated to grapes. Approximately 71% of world grape production is used for wine, 27% as fresh fruit, and 2% as dried fruit. A portion of grape production goes to producing grape juice to be reconstituted for fruits canned "with no added sugar" and "100% natural". The area dedicated to vineyards is increasing by about 2% per year. India exports grapes to European countries in large quantities and Indian exporters get better prices in markets there. The contribution of European countries in total grapes export from India is around 30-40%, value-wise its contribution is around 50 to 55%, as Europe pays better prices for Indian grapes. In 2011-12, India's total grape export was 99,278 metric tonne, amounting to Rs 412 crore. Of this, 30,284 metric tonne of grapes amounting to Rs 200 crore were exported to European countries.

Maharashtra contributes 90% to the country's export of grapes. Nashik district, which is known for producing large quantities of grapes, contributes 75% of Maharashtra's grape export. Nashik district is registering continuous growth in the export of grapes every year. In the last nine years, Nashik's grape exports have increased seven-fold from 3,775 metric tonne (2002) to 35,671 metric tonne (2010). In 2011, grape exports declined by 58% to 15,000 metric tonne following unseasonal rains, which affected vineyards badly. Around 15,499 vineyards with a total area of 10,600 hectares have been registered for the export of grapes by the office of the district agriculture supperintendent officer.

COMPANY PROFILE

Klaya Exports: The company has its Association with many grape growers holding huge area of grape plantation as well as having own grape farm. The company has Technical Team supporting all farmers for quality production suitable for exports according to standards issued by different supermarkets of different countries. As a result Kalya Exports is known as quality supplier for different importers and supermarkets in UK and EU. LOCATION: The facility of Kalya Export is situated in grape cultivation area in Nashik valley. The facility is 10 km away from Nashik city on Mumbai Agra highway which is national highway No.3. Basically Nashik district is known as Agriculture and Horticulture land of India . This is because of good soil structure, ample water, favorable climate for wide range of fruits & vegetable crops. As Nashik is near to Mumbai, so quality production is the main criteria in farming. Kalya Exports is dealing with many quality growers in Nashik. Nashik is very near to Mumbai sea port so easily linked with the world of exports.

Export Performance 2000 to 2102

No. of containers (40ft cont.)
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Country UK UK UK Germany UK Germany UK Netherland UK Netherland UK Netherland UK UK UK UK UK UK Germany Netherland 4.5 kg (3200 ctn.) 25 64 57 23 61 27 45 14 1 12 0 2 0 0 0 15 0 19 0 1 10 X 500 gm ( 2400 ctn.) 0 0 0 0 0 0 16 4 22 9 31 7 24 42 51 69 15 60 9 7 9.0 kg (1600 ctn.) 0 0 0 0 0 0 0 0 26 0 44 0 33 41 47 15 0 1 0 0

Areas Served:

CURRENT EXPORT (2013)

630

SWOT Analysis
Strengths Location Advantage Facilities like Cold Storage, Pre-cooling and pack house Highly Qualified and experienced human resources Opportunity Major consumers availibility in contries other than Europe Company can enter into new markets like juices, jams, syrups etc

Weakness

Threats Contamination Shipping Regulations Government Regulation

Definition Of the project

Studying the sales channel and generating new business oppourtunities for Kalya exports in foreign market.

Purpose of the project

The main purpose of this research is to increase the sales in existing market with the objective of increasing the market share

Scope and objectives of the project

The main objective is to study the requirements and increase the sales of grapes for Kalya Export.

Salient Contributions of the project

The project has been proved beneficial to the organisation in increasing the market share. The main motive of the project is to increase the sales: the project helped to acquire 4 new business deals with the foreign companies.

Review of Literature
2.1. Theoretical framework, background theory, hypothesis:

Business-to-Business Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting terms are business-to-consumer (B2C) and business-togovernment (B2G). B2B branding is a term used in marketing. The overall volume of B2B (Business-to-Business) transactions is much higher than the volume of B2C transactions. The primary reason for this is that in a typical supply chain there will be many B2B transactions involving sub components or raw materials, and only one B2C transaction, specifically sale of the finished product to the end customer. For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and rubber hoses for its vehicles. The final transaction, a finished vehicle sold to the consumer, is a single (B2C) transaction. B2B is also used in the context of communication and collaboration. Many businesses are now using social media to connect with their consumers (B2C); however, they are now using similar tools within the business so employees can connect with one another. When communication is taking place amongst employees, this can be referred to as "B2B" communication.

Some characteristics of organizational buying / selling behavior in detail:

For consumer brands the buyer is an individual. In B2B there are usually committees of people in an organization and each of the members may have different attitudes towards any brand. In addition, each party involved may have different reasons for buying or not buying a particular brand. Since there are more people involved in the decision making process and technical details may have to be discussed in length, the decision-making process for B2B products is usually much longer than in B2C.

Companies seek long term relationships as any experiment with a different brand will have impacts on the entire business. Brand loyalty is therefore much higher than in consumer goods markets. While consumer goods usually cost little in comparison to B2B goods, the selling process involves high costs. Not only is it required to meet the buyer numerous times, but the buyer may ask for prototypes, samples and mock ups. Such detailed assessment serves the purpose of eliminating the risk of buying the wrong product or service.

International Business International business comprises all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more regions, countries and nations beyond their political boundaries. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons. It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc. A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country. An MNE is often called multinational corporation (MNC) or transnational company (TNC). Well known MNCs include fast food companies such as McDonald's and Yum Brands, vehicle manufacturers such as General Motors, Ford Motor Company and Toyota, consumer electronics companies like Samsung, LG and Sony, and energy companies such as ExxonMobil, Shell and BP. Most of the largest corporations operate in multiple national markets. Areas of study within this topic include differences in legal systems, political systems, economic policy, language, accounting standards, labour standards, living standards, environmental standards, local culture, corporate culture, foreign exchange market, tariffs, import and export regulations, trade agreements, climate, education and many more topics. Each of these factors requires significant changes in how individual business units operate from one country to the next. Factors affecting International Business:

Physical and societal factors

Political policies and legal practices Cultural factors Economic forces Geographical influences

Competitive factors

Major advantage in price, marketing, innovation or other factors. Number and comparative capabilities of competitors Competitive differences by country Local taxes

Risks

Strategic risk Operational risk Political risk Country risk Technological Risk Environmental Risk Economic Risk Financial risk Terrorism Risk

International marketing International marketing is the export, franchising, joint venture or full direct entry of a marketing organization into another country. This can be achieved by exporting a company's product into another location, entry through a joint venture with another firm in the target country, or foreign direct invesetment into the target country. The development of the marketing mix for that country is then required international marketing. It can be as straightforward as using existing marketing

strategies, mix and tools for export on the one side, to a highly complex relationship strategy including localization, local product offerings, pricing, production and distribution with customized promotions, offers, website, social media and leadership. Internationalization and international marketing meets the needs of selected foreign countries where a company's value can be exported and there is interfirm and firm learning, optimization and efficiency in economies of scale and scope. the firm does not need to export or enter all world markets to be considered an international marketer.

Elements of the global marketing Not only do standard marketing approaches, strategies, tactics and processes apply, global marketing requires an understanding of global finance, global operations and distribution, government relations, global human capital management and resource allocation, distributed technology development and management, global business logic, inter-firm and global competitiveness, exporting, joint ventures, foreign direct investments and global risk management. The standard Four Ps of marketing: product, price, placement, and promotion are all affected as a company moves through the five evolutionary phases to become a global company. Ultimately, at the global marketing level, a company trying to speak with one voice is faced with many challenges when creating a worldwide marketing plan. Unless a company holds the same position against its competition in all markets (market leader, low cost, etc.) it is impossible to launch identical marketing plans worldwide. Advantages The advantages of global market we can introduce our product by using advertising:

Economies of scale in production and distribution Lower marketing costs Power and scope Consistency in brand image Ability to leverage good ideas quickly and efficiently Uniformity of marketing practices Helps to establish relationships outside of the "political arena"

Helps to encourage ancillary industries to be set up to cater for the needs of the global player Benefits of e-Marketing over traditional marketing

Disadvantages

Differences in consumer needs, wants, and usage patterns for products Differences in consumer response to marketing mix elements Differences in brand and product development and the competitive environment Differences in the legal environment, some of which may conflict with those of the home market Differences in the institutions available, some of which may call for the creation of entirely new ones (e.g. infrastructure) Differences in administrative procedures Differences in product placement. Differences in the administrative procedures and product placement can occur

Exports and Imports Imports and exports are the two important components of a foreign trade. Foreign trade is the exchange of goods and services between the two countries, across their international borders.'Imports' imply the physical movement of goods into a country from another country in a legal manner. It refers to the goods that are produced abroad by foreign producers and are used in the domestic economy to cater to the needs of the domestic consumers. Similarly, 'exports' imply the physical movement of goods out of a country in a legal manner. It refers to the goods that are produced domestically in a country and are used to cater to the needs of the consumers in foreign countries. Thus, the imports and exports have made the world a local market. The country which is purchasing the goods is known as the importing country and the country which is selling the goods is known as the exporting country. The traders involved in such transactions are importers and exporters respectively. In India, exports and imports are regulated by the Foreign Trade (Development and Regulation) Act, 1992, which replaced the Imports and Exports(Control) Act,

1947, and gave the Government of India enormous powers to control it. The salient features of the Act are as follows:

It has empowered the Central Government to make provisions for development and regulation of foreign trade by facilitating imports into, and augmenting exports from India and for all matters connected therewith or incidental thereto. The Central Government can prohibit, restrict and regulate exports and imports, in all or specified cases as well as subject them to exemptions. It authorizes the Central Government to formulate and announce an Export and Import (EXIM) Policy and also amend the same from time to time, by notification in the Official Gazette. It provides for the appointment of a Director General of Foreign Trade by the Central Government for the purpose of the Act. He shall advise Central Government in formulating export and import policy and implementing the policy. Under the Act, every importer and exporter must obtain a 'Importer Exporter Code Number' (IEC) from Director General of Foreign Trade or from the officer so authorised. The Director General or any other officer so authorised can suspend or cancel a licence issued for export or import of goods in accordance with the Act. But he does it after giving the licence holder a reasonable opportunity of being heard. As per the provisions of the Act , the Government of India formulates and announces an Export and Import policy (EXIM policy) and amends it from time to time. EXIM policy refers to the policy measures adopted by a country with reference to its exports and imports. Such a policy become particularly important in a country like India, where the import and export of items plays a crucial role not just in balancing budgetary targets, but also in the over all economic development of the country. The principal objectives of the policy are:

To facilitate sustained growth in exports of the country so as to achieve larger percentage share in the global merchandise trade. To provide domestic consumers with good quality goods and services at internationally competitive prices as well as creating a level playing field for the domestic producers. To stimulate sustained economic growth by providing access to essential raw materials, intermediates, components, consumables and capital goods required for augmenting production and providing

services. To enhance the technological strength and efficiency of Indian agriculture, industry and services, thereby improving their competitiveness to meet the requirements of the global markets. To generate new employment opportunities and to encourage the attainment of internationally accepted standards of quality.

Besides this Act, there are some other laws which control the export and import of goods. These include:

Tea Act,1953 Coffee Act, 1942 The Rubber Act, 1947 The Marine Products Export Development Authority Act, 1972 The Enemy Property Act, 1968 The Export (Quality Control and Inspection) Act, 1963 The Tobacco Board Act, 1975

At the central level, the Ministry of Commerce and Industry is the most important organ concerned with the promotion and regulation of the foreign trade in India. The Ministry has an elaborate organizational set up to look after the various aspects of trade. Within the Ministry,the Department of Commerce is responsible for formulating and implementing the foreign trade policy. The Department is also entrusted with responsibilities relating to multilateral and bilateral commercial relations, state trading, export promotion measures and development and regulation of certain export oriented industries and commodities.The matters relating to foreign trade are dealt with by the following divisions of the Department :1. Administrative and General Division 2. Finance Division 3. Economic Division 4. Trade Policy Division 5. Foreign Trade Territorial Division 6. Export Products Division 7. Export Industries Division 8. Export Services Division 9. Supply Division The Department's jurisdiction extends over:-

(a) Two Attached Offices:

Directorate General of Foreign Trade (DGFT):- with its headquarters at New Delhi, is headed by the Director General of Foreign Trade. It is responsible for implementing the Foreign Trade Policy/Exim Policy with the main objective of promoting Indian exports. The DGFT also issues licences to exporters and monitors their corresponding obligations through a network of regional offices. The regional offices are located at 33 places. Directorate General of Supplies and Disposal (DGS&D):- with its headquarters at New Delhi, is headed by the Director General. It functions as the executive arm of the Supply Division of the Department of Commerce for conclusion of Rate Contracts for common user items, procurement of stores, inspection of stores, shipment and clearance of imported stores/cargo. It has three Regional Offices located at Chennai, Mumbai and Kolkata.

(b) Five Subordinate Offices:

Directorate General of Commercial Intelligence and Statistics (DGCI&S):with its office located at Kolkata, is headed by the Director General. It is entrusted with the work of collecting, compiling and publishing/ disseminating trade statistics and various types of commercial information required by the policy makers, researchers, importers, exporters, traders as well as overseas buyers. Office of Development Commissioner of Special Economic Zones:- The Special Economic Zones (SEZs) are geographically exclusive enclaves separated from domestic tariff areas. The main objective of SEZs is to provide certain common facilities and a duty free environment for exporters. Each Zone is headed by a Development Commissioner and is administered as per the SEZ scheme announced on 31st March, 2000. Pay and Accounts Office (Supply):- The payment and accounting functions of Supply Division, including those of DGS&D, are performed by the Chief Controller of Accounts (CCA) under the Departmentalized Accounting System. Payment to suppliers across the country is made through this organisation. Pay and Accounts Office (Commerce & Textiles):- The Pay and Accounts Office, common to both the Department of Commerce and the Ministry of Textiles, is responsible for the payment of claims, accounting of transactions and other related matters through the four Departmental Pay & Accounts Offices in Delhi, two in Mumbai, two in Kolkata and one in Chennai.

(c) Ten Autonomous Bodies:

Coffee Board :- The Coffee Board of India is an autonomous body, functioning under the Ministry of Commerce and Industry, Government of India. The Board serves as a guide of the coffee industry in India. The Board focuses on research, development, extension, quality upgradation, market information, and the domestic and external promotion of Indian coffee. Rubber Board :- The board is engaged in the development of the rubber industry. This is done by assisting and encouraging scientific ,technical and economic research; supplying technical advice to rubber growers; and training growers in improved methods of plantation and cultivation. Tea Board :- The primary functions of tea board include rendering financial and technical assistance for cultivation,manufacture,marketing of tea; promoting tea exports ;aiding research and developmental activities for augmentation of tea production and improvement of tea quality as well as encouraging and assisting small growers sector financially and technically. Tobacco Board:- The Government of India established the Tobacco Board, in place of Tobacco Export Promotion Council, under the Tobacco Board Act of 1975 to regulate production, promotion of overseas marketing and to control recurring instances of imbalances in supply and demand, which lead to market problems,The Tobacco Board Act aims at the planned development of Tobacco Industry in the country. The activities of the Board includes the regulation of the production and curing of Virginia Tobacco with regard to the demand in India and abroad. Spices Board :- Spices Board was constituted on 26th February 1986 under the Spices Board Act 1986. It is one of the Commodity Boards functioning under the Ministry of Commerce & Industry. It is an autonomous body responsible for the export promotion of the scheduled spices and production or development of some of them such as Cardamom and Vanilla. Export Inspection Council (EIC), New Delhi :- The Export Inspection Council is responsible for the enforcement of quality control and compulsory preshipment inspection of various commodities meant for export and notified under the Export (Quality Control & Inspection) Act, 1963. Indian Institute of Foreign Trade (IIFT), NewDelhi :- is engaged in the following activities:

Training of Personnel in modern techniques of international trade; Organisation of Research in problems of foreign trade; Organisation of marketing research, area surveys, commodity surveys,

market surveys; Dissemination of information arising from its activities relating to research and market studies.

Indian Institute of Packaging (IIP), Mumbai :- is registered under the Societies Registration Act.The main aim of this Institute is to undertake research of raw materials for the packaging industry, to organise training programmes on packaging technology and to stimulate consciousness of the need for good packaging etc. Marine Products Exports Development Authority (MPEDA), Kochi :functions under the Ministry of Commerce, Government of India and acts as a coordinating agency with different Central and State Government establishments engaged in fishery production and allied activities. The Authority is responsible for development of the marine products industry with special focus on marine exports. The role envisaged for the MPEDA is comprehensive covering fisheries of all kinds, increasing exports, specifying standards, processing, marketing, extension and training in various aspects of the marine industry. Agricultural and Processed Food Products Export Development Authority (APEDA), New Delhi :- came into existence in 1986 to further develop agricultural commodities and processed foods, and to promote their exports.The aim is to maximize foreign exchange earnings through increased agro exports, to provide better income to the farmers through higher unit value realization and to create employment opportunities in rural areas by encouraging value added exports of farm produce.

(d) Export Promotion Councils (EPCs):Presently there are twelve EPCs under the administrative control of the Ministry of Commerce. These councils are registered as non-profit organisations under the Companies Act. The Councils perform both the advisory and executive functions. These councils are also the registering authorities under the Import Policy for Registered Exporters.

(e) Other Organisations:

Federation of Indian Export Organizations (FIEO):- is an apex body of various export promotion organizations and institutions with its major regional offices at Delhi, Mumbai, Chennai and Kolkata. It provides the content, direction and thrust to India's global export effort. Indian Council of Arbitration (ICA), New Delhi :- set up under the Societies Registration Act promotes arbitration as a means of settling commercial disputes and popularizes the concepts of arbitration among the traders, particularly those engaged in international trade. Indian Diamond Institute (IDI), Surat :- With the objective of enhancing the quality, design and global competitiveness of the Indian Jewellery, the Indian Diamond Institute (IDI) was established as a pivotal institute for imparting technical skills to the Gems and Jewellery industry in the areas of Gemology and Jewellery manufacture.

(f) Advisory Bodies

Board of Trade (BOT):- was set up on May 5, 1989 with a view to providing an effective mechanism to maintain continuous dialogue with trade and industry in respect of major developments in the field of International Trade. Export Promotion Board (EPB):- provide policy and infrastructural support through greater coordination amongst concerned Ministries for boosting the growth of exports. Directorate General of Anti-Dumping & Allied Duties (DGAD):- The Directorate is responsible for carrying out investigations and to recommend, where required, under Customs Tariff Act, the amount of anti-dumping duty/countervailing duty on the identified articles which would be adequate to remove injury to the domestic industry.

Research Methodology
Research Design As I need to study the sales channel and the process of sales; the data collected is qualitative and descriptive in nature Data Collection Sources & Methods Interaction with our buyers

Conclusion:
The sales of Kalya Exports are growing steadily over the years. This is supported by the highn demand of grapes in the European market. Hence the company has a very broad scope to expand its business.

Recommendations:
It can be seen that the Sales of Kalya Export have been growing with the years. There are some recommendations to improve further, which are as follows: Now that the market for Kalya Export in Europe is established, it can focus on other world markets too. It can look to expand to the American market. The company can think over producing various food items made out of grapes like jams, juices, syrups, etc. and try entering domestic markets with these products.

Bibliography
1. Principles of Marketing by Philip Kotler, was the book helped me clearing my basics about the marketing and make this report more value added. 2. http://articles.timesofindia.indiatimes.com/2012-0309/nashik/31139462_1_grape-export-indian-grapes-indian-exporters helped me to understand the Lecithin as a product. 3. Lecithins : Sources, Manufacture and Uses by Bernard F. Szuhaj 4. http://business.gov.in/legal_aspects/import_export.php 5. http://kalyaexport.com/
6. http://en.wikipedia.org