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Dehydrated Spices Industry of India and Positioning It in Uganda”

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Dehydrated Spices Industry of India and Positioning It in Uganda” A GLOBAL / COUNTRY STUDY AND REPORT ON “Dehydrated spices industry of India and positioning it in Uganda” 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 Nirav Vyas Assistant Professor Submitted by MBA SEMESTER IV STUDENTS ---------------------------------------------------------------------------------------- Shree Jaysukhalal Vadhar Institute of Management Studies, Jamnagar MBA PROGRAMME Affiliated to Gujarat Technological University 1 Preface Uganda, the country which has been in existence since very long but still not very well known to most part of the world. The country is still looked as a ―third world country‖ and when it comes to business opportunities world-wide, then absolutely no one or very less entrepreneurs show real interest in Uganda. This is very orthodox and conventional way of looking towards any country for business. Uganda is ranked among the 20 top fastest development economies of the world and is the 4th fastest developing economy of Africa. It is situated in Western Africa and is improving and strengthening its economical and urbanization position slowly but very steadily. This project is an attempt to explore the country as a market place and to position a specific Indian industry to do business with it and also it is an attempt to find out opportunities for Gujarati Enterprises to position themselves in that country as entrepreneurs. The first part of the project enlightens on factors like the overview of economy, demography, topography, prevailing industries and their contribution to GDP of Uganda. In the last section of the first part of the project we have tried to find out certain business in which the Indian enterprises can really look into for business The second part of the project enlightens the opportunities of doing business and positioning a particular Indian industry in Uganda. The industry that we have selected is dehydrated spices industry. This part enlists, the current scenario of this industry in India, its export potential, its acceptability and demand in Uganda, the current trade barriers, norms and policies of export of spices in India as well as norms of imports of spices in Uganda and finally the business opportunities. 2 Acknowledgement We are very grateful first of all to Gujarat Technological University for giving such a project work to us as a full credit subject. This indeed expands our horizons and gives us a feeling that our management course is not just restricted to traditional and conventional studies but it includes such kind of work which can be called as contribution from us towards the economy of India. We express our deepest and sincere gratitude towards our institute, JVIMS- Jamnagar, for being fully supportive and giving us all the access and facilities that we needed to complete this Herculean task. We are finally very thankful to Dr. K J. Thankachan,- Director, JVIMS and Dr. Ajay D. Shah- Dy. Director, JVIMS for being patient and very kind to us, supporting us, correcting our errors and mistakes and also being there always as a information point whereby we could get all the needed information which was difficult for us to collect for completing this project. 3 Table of Content Sr. No Topic Page No. 1 Preface 1 2 Acknowledgement 2 Part – 1 3 Introduction to Uganda 5 4 Demographic Profile of Uganda 6 5 Economic Overview of the Uganda and Political Conditions 9 6 Contribution of different sectors towards economy of Uganda 12 7 Domestic and International Trade 15 8 Taxation Policies 21 9 Present trade with India 24 10 Opportunities for entrepreneurs of Gujarat in Uganda 26 Part – 2 11 Justification of selective dehydrated spice industry 28 12 Introduction to spice industry of India and comparative study 30 of the sector between India and Gujarat 11 Overview of current business functions and exports of spices 37 12 Potential for Import and export of spices 48 13 Present Position and Trend of business with India during last 3 62 to 5 years 14 Present trade barriers in exporting spices to Uganda 71 15 Norms, Policies and procedures for exporting spices from India 77 16 Norms, Procedures and formalities for import of spices in 84 Uganda 16 Business opportunities for future in Uganda 94 19 Conclusion 100 4 Introduction Uganda is situated in western Africa and is regarded as one of the 20 fastest developing economies of the world. The country initially was formed soon after the second world war when the whole of African continent was undergoing rapid and unexpected political changes and unrest. Since then the country‘s dictator Idi Amin had driven the country into haphazard and unorganized development. However, after its true republican independence, the country has steered its wheels on the tracks of development thoroughly. While, the majority of the development in African continent was from big economies like South Africa, Kenya, Egypt and Libya, Uganda kept on improving its basic industry of agriculture and came on the maps of overall development. Our effort in this project is to first study the basic details of Uganda and then to position an Indian based industry for doing business with Uganda. 5 Chapter 1 Demographic and Geographical Details 6 Uganda is situated in Africa Continent. It is one of the countries in Africa which has recently showed signs of development. Uganda got its independency in the year of 1962 from United Kingdom. However soon after independency it was a dictatorship economy and recently it has declared itself as a republican democracy. The only geographical disadvantage that the country suffers from is that it is a land-locked country and the nearest port is situated in Kenya which proves to be a little hurdle as far as foreign trade is concerned. The total population of Uganda is 34.612.250 which is divided into the following ethnic groups Ethicity Percentage in total population Baganda 16.9%, Banyakole 9.5%, Basoga 8.4%, Bakiga 6.9%, Iteso 6.4%, Langi 6.1%, Acholi 4.7%, Bagisu 4.6%, Lugbara 4.2%, Bunyoro 2.7%, other 29.6% Largely, the population is Christian but it also has a substantial amount of people following other religions too. The following table shows the religion bifurcation of the country Roman Catholic Christian 41.9% of total population Protestant Christian 42% Muslim 12.1% Others 4% Urbanization Details 7 The following table shows the urbanization and the rate of urbanization in Uganda. Urban Population Rate of urbanization 13% of total population (2010) 4.8% annual rate of change (2010-15 est.) We can say that a large part of the population still have a habitat in the rural areas. It is very similar to the Indian conditions and hence we can also say that the businesses and products which cater to the rural population‘s demand will flourish more in Ugandan economy. The following table shows the literacy rate of the country Literacy Rates Definition Total Population Male Female Age 15 and over can 66.8% 76.8% 57.7% read and write Languages English (official national language, taught in grade schools, used in courts of law and by most newspapers and some radio broadcasts), Ganda or Luganda (most widely used of the Niger- Congo languages, preferred for native language publications in the capital and may be taught in school), other Niger-Congo languages, Nilo-Saharan languages, Swahili, Arabic 8 Chapter 2 Overview of economy And Political condition 9 Overview of economy The Ugandan economy is largely dependent on production of agricultural products. This is the sector which employs 82 percent of the total workforce of the country. These goods range from crops grown mainly for subsistence purposes such as plantains, maize, beans, and potatoes, and exported cash crops such as coffee, tea, and tobacco. The economy is not dependent on any other economy as far as basic food items are concerned and its transportation infrastructure was one of the best in the continent. Basically it exports the cash crops like coffee and cotton and that were highly in demand globally as the world economy was registering substantial growth built on the import demands of the United States, Western Europe, and parts of Northeast Asia. The following table shows the picture of the economy Labor Force 15.01 million Budget Revenues $ 2.007 billion Budget Expenditures $ $2.508 billion Industrial production growth rate 5.3% (2009 est.) Industrial production growth rate 5.3% Current account balance -$829 million Exports $3.151 billion Imports $4.106 billion Foreign exchange reserve $2.296 billion External debt $2.05 billion (2009 est.) All the figures are according to the census and budget of 2009. On a whole it can be said that Ugandan economy is not still in the best of its shape but it has shown signs of development and very positive signs. The country is regarded as one of the fastest developing economies in the entire world. 10 Political condition Uganda is a presidential republic, in which the President of Uganda is both head of state and head of government; there is a multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and the National Assembly. Uganda is divided into districts, spread across four administrative regions: Northern, Eastern, Central (Kingdom of Buganda) and Western. The districts are subdivided into counties. The head of state in Uganda is the President, who is elected by a popular vote to a five-year term. The current president is Yoweri Museveni, who won the election in 1996 and again in 2001, 2006 and 2011. Uganda follows as mixed legal system of English common law and customary law.
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