Affiliated to Gujarat Technological University Ahmedabad May, 2012 (Batch 2010-12)

GLOBAL COUNTRY STUDY REPORT

“SUDAN”

Submitted to

SHREE H.N.SHULKA COLLEGE OF MANAGEMENT STUDIES

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ASMINISTRATION

Gujarat Technological University

Under the guidance of

Excel Sheet of Guide list and Students under guidance with enrolment no are attached herewith

Submitted by

Excel Sheet of Guide list and Students under guidance with enrolment no are attached herewith

Shree H. N. Shukla College of Management Studies, Rajkot MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad May, 2012 (Batch 2010-12)

PREFACE

Today is an era of competition. Existence in today‘s dynamic world requires some doing. Skills of different kinds are required to excel in one‘s corporate career. Mere studying theories, models and definitions will not help in the day-to-day functioning. The practical application of the theory is required. And for management students, it is must.

So, the Global Study Report , give the the students to know about the rules and regulation of international countries. Preparation of the global study report makes a student enough aware of how, where, when and up to what extent theoretical knowledge can be used to solve problems in practice etc.

In MBA, students study the management and administration of business and get knowledge about handling of the routine operations and decision-making. It is a great pleasure to present this report work, our research on this topic has helped us to gain lots of practical knowledge which we are sure would benefit us in the future.

ACKNOWLEDGEMENT

We are heartily thankful to the GUJARAT UNIVERSITY, which has given us the golden opportunity to prepare the global country report and get some knowledge about the international countries.

Every project big or small, is successful largely due to the efforts of a number of wonderful people, who have always given their valuable advice or helping hand. We sincerely appreciate the inspiration; support & efforts of all team members making this project a success.

Table of Contents

Sr. Particulars Page NO. no.

1 Part I: ECONOMIC OVERVIEW OF SUDAN 5 2 Part II: INDUSTRY / SECTOR / COMPANY SPECIFIC STUDY 2.1 Automobile Industry in Sudan 18

2.2 Automobile Industry in FMCG 46 2.3 Automobile Industry in Automobile (Four Wheeler) 74 2.4 Automobile Industry in Telecommunication 96 2.5 Automobile Industry in Airways 130 2.6 Automobile Industry in Hotel Industry 153 2.7 Automobile Industry in Food Industry 175 2.8 Automobile Industry in Automobile 215

PART – I ECONOMIC OVERVIEW

OF THE SUDAN

CHAPTER – 1 ECONOMY OVERVIEW OF THE SUDAN COUNTRY 1.1 DEMOGRAPHIC FACTOR OF SUDAN Population  Population: 45,047,502  Population growth rate:2.552%  Birth rate: 36.12 births/1,000 population  Death rate: 11 deaths/1,000 population  Life expectancy at birth  total population: 55.42 years  male: 54.18 years  female: 56.71 years People :  Nationality: Sudanese  Population: 45,047,502  Population growth rate:2.552%  Ethnic Groups: black 52%, Arab 39%, Bija tribes 6%.  Religions: Sunni Islam (official), indigenous beliefs in southern Sudan.  Languages: Arabic (official), Nubian, Ta Bedawie, English, tribal languages.  Literacy: 50%

Age structure:  0–14 years: 42.1% (male 9,696,726; female 9,286,894)  15–64 years: 55.2% (male 12,282,082; female 12,571,424)  65 years and over: 2.7% (male 613,817; female 596,559)

Income level  Lower middle class income

Sex ratio:  At birth: 1.05 male(s)/female  Under 15 years: 1.04 male(s)/female  15–64 years: 1.01 male(s)/female  65 years and over: 1.05 male(s)/female  Total population: 1.03 male(s)/female Education in sudan  Education is to be composed of eight years, followed by three years of secondary education. The previous educational ladder 6 + 3 + 3 was changed in 1990.  The primary language at all levels is Arabic. Schools are concentrated in urban areas; many in the South and West have been damaged or destroyed by years of civil war.  In 2001 the World Bank estimated that primary enrolment was 46 percent of suitable pupils and 21 percent of secondary students. Enrolment varies widely, falling below 20 percent in some provinces. Sudan has 19 universities; instruction is primarily in Arabic.  According to World Bank estimates for 2002, the literacy rate in adults aged 15 years and older was 60 percent. In 2000 the comparable figure was almost 58 percent (69 percent for males, 46 percent for females); youth illiteracy (ages 15–24) was estimated at 23 percent.

1.2 ECONOMIC OVERVIEW OF SUDAN Economy - overview Since 1997, Sudan has been working with the IMF to implement macroeconomic reform including a managed suggest of the exchange rate and a large reserve of foreign exchange. A new currency, the Sudanese Pound, was introduced in January 2007 at an initial exchange rate of $1.00 equals 2 Sudanese Pounds. Sudan begin exporting crude oil in the last quarter of 1999 and the economy boomed on the back of increases in oil production, high oil prices, and significant inflows of foreign direct investment until the second half of 2008. The Darfur conflict, the result of two decades of civil war in the south, the lack of basic infrastructure in large areas, and dependence by much of the population on continuation agriculture ensure much of the population will remain at or below the shortage line for years to come despite

rapid rises in average per capita income. Sudan's real GDP expanded by 5.2% during 2010, an improvement over 2009's 4.2% growth but significantly below the more than 10% per year growth experienced prior to the global financial calamity in 2006 and 2007. While the oil sector continues to drive growth, services and utilities play an increasingly important role in the economy with agriculture production remaining important as it employees 80% of the work force and contributes a third of GDP. In the guide up to the referendum on southern secession, which took place in January 2011, Sudan saw its currency decrease in value considerably on the black market with the Central Bank's official rate also losing value as the Sudanese people started to store foreign currency. The Central Bank of Sudan intervened heavily in the currency market to defend the value of the pound and the Sudanese government introduced a number of measures to restrain excess local demand for hard currency, but uncertainty about the secession has meant that foreign exchange remains in heavy demand. Until the second half of 2008, Sudan's economy boomed on the back of increases in oil production, high oil prices, and large inflows of foreign direct investment. GDP growth registered more than 10% per year in 2006 and 2007. From 1997 to date, Sudan has been working with the IMF to put into practice macroeconomic reform including a managed suggest of the exchange rate. Sudan began exporting crude oil in the last quarter of 1999. Agricultural production remains important, because it employs 80% of the work force and contributes a third of GDP. The Darfur conflict, the aftermath of two decades of civil war in the south, the lack of basic infrastructure in large areas, and a reliance by much of the population on subsistence agriculture ensure much of the population will remain at or below the poverty line for years despite rapid rises in average per capita income. In January 2007, the government introduced a new currency, the Sudanese Pound, at an initial exchange rate of $1.00 equals 2 Sudanese Pounds. Definition This entry briefly describes the type of economy, including the degree of market orientation, the level of economic development, the most important natural resources, and the unique areas of specialization. It also characterizes major economic events and policy changes in the most recent 12 months and may include a statement about one or two key future macroeconomic trends

The economic outlook for Sudan Significance Sudan's economic performance has shown signs of improvement following years of decline. However, the civil war continues to slow down economic development.

Analysis Sudan's economic health has recently shown signs of recovery after years of decline. Relations with the IMF are better, and the government is responsibility reform, especially in trade liberalization, privatization and the reduction in the long- running problem of inflation. The programmed has been assisted by the country's coming out as an oil exporter in 1999.

 Agriculture While Sudan has become an oil exporter, the country's long term development continues to rely heavily on agricultural exports such as cotton, gum Arabic, sorghum and groundnuts. The domestic and export agricultural sector, which involves some 80% of the population, has generally performed poorly, and well below estimates of Sudan's potential. This has been due partly to weak international prices and to problems in the banking sector.  Political banks The domestic banking sector has acquired a reputation of political prejudice during recent liberalization and privatization programmes. Dominated by Islamic banks established from the early 1980s onwards, the sector as a whole has tended to favour businessmen acceptable to the decision National Islamic Front, which seized power in 1989. There has also been growth in the business activities of the armed forces, largely as a means of enhancing incomes at a time when much of the military is under the strain of war.  Government finance The government has managed to reduce the level of increase to 10% per annum. However, this has been achieved by cuts in non-military expenditure, largely at the expense of public services, which has contributed to the continuation of scarcity: an estimated 90% of the population lives below the scarcity line on less than 1 dollar per day. In addition, a large part of the success in reducing inflation is due to the

production of oil, which has allowed the government to finance more of its activities from oil revenue, reducing its earlier reliance on printing money.  Oil revenue Oil has provided a powerful boost for Khartoum's financial situation. In particular, it --Generates 500 million dollars per annum; -- Accounts for 70-80% of export earnings; and -- Has created a trade surplus of 250 million dollars after decades of scarcity.  Conflict impact The war, which began in 1983, has seriously damaged Sudan's economy. In addition to the government's expenditure on the conflict, which has been estimated at between 20-40% of the annual budget, it has restricted domestic and foreign investment. Oil will be of limited long-term benefit unless the hostility, which has recently intensified, is not brought to an end. 1.3 OVERVIEW OF INDUSTRIES TRADE AND COMMERCE India-Sudan Economic and Commercial Relations There are certain unique characteristics which Sudan enjoys because of its demographic composition and geographical location. It represents an Afro-Arab society and shares borders with nine countries. With an area of 2.5m Sq. Kms., Sudan is the largest country in Africa with 700 km long coastline on the Red Sea, it is almost a cross point for travelling across to the rest of the Africa continent. Shipping facilities at its ports provide not only to Sudan but also provide outlets for trade overland to a number of countries. Setting up of COMESA with 20 countries around Sudan and the organization's importance on ultimately realizing custom free transportation of commodities through the borders of the member of countries is bound to further enhance Sudan's importance as a trade centre for the region. In the past about three years, India Sudan two-sided trade has grown by 800%. While Indian exports to Sudan for the year 1998-99 were 234.10 crore, for the year 2006-07 exports rose to approximately 2100 crore. India is the 4 largest exporters of commodities to Sudan after Saudi Arabia, China and UAE. The economic relations have witnessed a historic twist after GOI's decision to invest US$ 750 million in the oil sector of Sudan with the ONGC Videsh Limited acquiring 25% of the shares of the Sudan's biggest oil consortium Greater Nile Petroleum Operating Company (GNPOC)

The Comprehensive Peace Agreement (CPA) between government of Sudan and SPML/SPLA have already been signed .The Agreement between Government and East Front as well as main party in Darfur has also been signed resulting in formation of Government of National Unity. The relations between India and Sudan got a new impetus with the visit of President A.P.J Abdul Kalam to Sudan in October 2003 during the visit, Bilateral Investment Promotion and Protection Agreement (BIPPA), Double Taxation Avoidance Agreement (DTAA) and an MOU on cooperation. 1.4 OVERVIEW OF DIFFERENT ECONOMIC SECTOR OF SUDAN Introduction Sudan is considered the largest country in Africa and ninth largest in the world with an average per capita income of U.S. $ 395. It has varied ecological zones and a diverse agricultural base that accounts for 40 percent of GDP. Infrastructure The country‘s transport facilities consist of one 4,800-kilometer (3,000 mi), single- track rail road with a feeder line, supplemented by limited river steamers, Sudan airways, and about 1,900 km. (1,200 mi.) of paved and gravel road—primarily in greater Khartoum, Port Sudan, and the north. Some north-south roads serve up the oil fields of neighbouring South Sudan. The 1,600-kilometre (990 mi) Greater Nile Oil Pipeline extends from the Heglig (Sudan) and Unity (South Sudan) oil fields via the Nuba Mountains and Khartoum to the oil export terminal in Port Sudan on the Red Sea. Industry Sudan‘s limited industrial development consists of agricultural processing and various light industries positioned in Khartoum North. In recent years, the Giad Industrial Complex in Al Jazirah state introduced the meeting of small autos and trucks, and some heavy military equipment such as armoured personnel carriers and the proposed ―Bashir‖ main battle tank. Although Sudan is reputed to have great mineral resources, exploration has been fairly limited, and the country‘s real potential is unknown. Small quantities of asbestos, chromium, and mica are exploited commercially. Petroleum

Extensive petroleum exploration first begins in Sudan in the mid-1970s. Significant finds were made in the Upper Nile region and commercial quantities of oil begin to be exported in October 2000, reducing Sudan‘s outflow of foreign exchange for imported petroleum products. Today, oil is an important export industry in Sudan. Estimates suggest that oil accounts for between 70% and 90% of Sudan's total exports. The primary importers of Sudanese oil are Japan, China, South Korea, Indonesia, and India. Most of Sudan's oil reserves are located in the Muglad and Melut rift basins in the south of the country. Oil fields in the south, such as those at Heglig and in the South Sudanese state of Unity, previously part of Sudanese country, are linked to the country's refineries using pipelines. The two largest oil pipelines are the Greater Nile Oil Pipeline, which travels 1,600 kilometres from the Unity oil field to Port Sudan on the Red Sea via Khartoum, and the Petro Dar pipeline, which extends 1,380 kilometres from the Palogue oil field in the Melut Basin to Port Sudan. Crude oil from the Muglad Basin is known as "Nile Blend" and is refined at the Khartoum crude oil refinery. In 2006, the China National Petroleum Corporation upgraded the Khartoum refinery, doubling its capacity to 100,000 barrels per day (16,000 m3/d). Oil from the Melud Basin is known as "Dar Blend" and is refined at the Port Sudan Refinery, which has a capacity of 21,700 barrels per day (3,450 m3/d). In 2005, the Sudanese government contracted Petronas to build a new refinery at Port Sudan. Sudan's crude oil output is predicted to height in 2008, although current revenue levels may be continued for a decade or more. Electrical generation Sudan is seeking to expand its installed capacity of electrical generation of around 300MW; of which 180 MW is hydroelectric and the rest thermal. European investors, considering the continuing U.S. economic, trade, and financial sanction regime, are the most likely providers of technology for this purpose. More than 70% of Sudan‘s hydropower comes from the Roseires Dam on the Blue Nile grid. Various projects are proposed to expand hydropower, thermal generation, and other sources of energy, but so far the government has had complexity arranging enough financing. A new dam which is being established in Merowe which has been opened in 2008 and generates 1250 MW of electricity.

1.5 OVERVIEWS OF BUSINESS AND TRADE AT INTERNATIONAL LEVEL Business outline for Sudan Economic Overview Recently, the Sudanese economy grown more than 10% due to the increase in oil production, a good harvest and the continuous expansion of the construction and services sectors. Initially, Sudan was adversely affected by the global economic crisis and the collapse in oil prices. Its growth fallen to 4.5% in 2009. But with the effect of the global revival, the increase in prices and production of oil, investments and domestic demand, the growth has risen again to 5.5% in 2010. The Sudanese economic policy depends on the implementation of the Global Peace Agreement (GPA) and the Joint Evaluation Mission (JEM), which design the country's detailed plans up to 2011. To maintain its economic growth, the country has to manage its oil sector properly, protect the viability of its external debt and improve the financial system and the central bank. The high growth rate, sustained by oil production, help to increase in the country's income per capita, an improvement in its literacy rate and a reduction in infant mortality. However, widespread poverty, unequal income distribution and insufficient social services still remain as serious problems. Sudan is part of the least developed countries (LDC) and unemployment affects almost 14% of the active population. FDI The inflows of foreign direct investment (FDI) in Sudan have increased to 3times in the last recent years, a fact which has increased stocks. Despite the slowdown due to the global economic crisis, foreign investments should expand in the next coming years, but for this sudan‘s security must be tight. Italy. Its main trade partners are China, the GCC (Gulf Cooperation Council) member countries and Japan. Domestic Trade In Sudan Country Sudan's mercantile community is well organized through the Sudan Chamber of Commerce, which supplies information and facilitates negotiations with the authorities. The major foreign-owned trading companies were nationalized in 1970. Omdurman is a commercial center for livestock and handicrafts. The cities of El Fasher, El Gedaref, Juba, Kassala, and Wau serve primarily for agricultural goods.

The few modern shops feature imported products. Most retail trade is conducted in open-air markets or in stalls in buildings near market centers. Marketing Activities Newspaper advertising is of limited usage due to high iliteracy. Window and sidewalk displays and outdoor advertising are the principal marketing aids. An international trade fair is held annually at Khartoum.

1.6 PRESENT TRADE RELATIONS AND BUSINESS VOLUME OF DIFFERENT PRODUCT WITH INDIA AND GUJARAT

Rank in Sudan's India Sudan's Global India's %age Description Rank %age Change in Imports Global Imports Share in Sudan's (2008) from India 2008/ 2007 Imports Value in Global Imports of Year- All products 200816.417 (USD 7th Product3.53 Group 109 Aircraft, spacecraft, and 20081 6040.779Million) 37th 0 400 parts thereof Commodities not 2 3956.689 - - - elsewhere specified Vehicles other than 3 1015.787 4th 4.71 16 railway, tramway 4 Nuclear reactors, 951.168 14th 1.3 -67 5 boilers,Iron machinery, and steel etc 737.183 - - - 6 Electrical, electronic 713.78 5th 4 -38 7 equipmentCereals 498.941 8th 0 -81 8 Sugars and sugar 417.954 5th 0.3 -7 9 Pharmaceuticalconfectionery 214.665 4th 8.5 -72 10 Furniture,products lighting, 193.022 22nd 0.2 13 11 signs,Salt, sulphur, prefabricated earth, 124.059 - - - 12 stone,Articles plaster,buildings of iron lime or steel and 116.125 6th 5.3 219 13 Articlescement of apparel, 115.005 6th 1.2 5 14 accessories,Plastics and not articles knit or 109.798 5th 3.9 83 15 Optical,crochetthereof photo, 101.791 13th 1.2 -91 16 technical,Paper & paperboard, medical, etc 74.208 7th 4.6 -34

articlesapparatus of pulp, paper and board 14

17 Manmade staple fibres 70.064 4th 8.3 -42 18 Cereal, flour, starch, 66.428 - - - 19 milkDairy preparations products, eggs, and 58.759 10 2.6

20 Footwear,honey,products edible gaiters animal and 56.351 0

The Governmentthe like,product parts nes thereofof Sudan has double taxation avoidance agreements with various countries including India. Top 20 product groups constituted 95.22% share in total imports of sudan in the year 2008.Sudan‘s main sources of imports in 2008 were China, India, Saudi Arabia, Egypt, Japan, France, Italy, and UK. As this country develops, there will be opportunities for Indian companies in railways, roads, automobiles, power generation, telecommunications, water treatment, human resource development, agriculture, pharmaceuticals and IT. Import demand is surging as reconstruction moves into high gear. Pattern of bilateral trade (In US$ million) YEAR INDIA‘S INDIA‘S TRADE BALANCE EXPORTS IMPORTS 1998 63.36 26.51 (+) 36.85 1999 63.81 5.46 (+) 57.44 2000 77.54 5.46 (+) 72.08 2001 87.72 9.24 (+) 78.48 2002 104.62 5.93 (+) 98.69 2003 115.96 33.17 (+) 82.79 2004 197.10 27.90 (+) 169.20 2005 317.84 (+61%) 30.77 (+) 287.07 2006 599.04 20.00 (+) 579.04 2007 546.50 16.43 (+) 530.07 2008 886 182.3 (+) 703.70 2009 624.50 194.78 (+) 429.72 The Mission‘s target for 2009 is a 50% increase in India‘s exports To give a sustained focus to India-Sudan trade relations, the Mission‘s commercial policy since October 2005 is a non-exclusive five-plus-one policy. The five priority sectors in which India can respond to Sudan‘s developmental requirements are infrastructure, agriculture, human resource development.

1.7 PESTL ANALYSIS WITH REFERENCE IN SUDAN

Industry overview: POLITICAL

 Government stability (e.g. election looming causing a distraction, transitional, new

government)

 Taxation policy (do your goods and services attract tax, at what rate, are they

exempt, are there loopholes that could be exploited to provide leverage for additional

revenue or tax savings)

 Foreign trade regulations : does the government actively support your product for

sales abroad, does your product contain certain substances or technologies that are

prohibited? (e.g. Sudan 1, micro chips), what effect would a closed market have?

 Social Welfare politics – eg: gangmasters

ECONOMIC

 Overall Markey economy: Is the Market generally buoyant, is the outlook good

 Government spending: budget restrictions as supplier or consumer, targets,

priorities

 Unemployment: Level, minimum wage, taxation rates, benefits.

SOCIAL

 Income distribution: by region, gender, age. Changes in disposable income due to

fluctuations in tax rates, mortgage rates insurance surtaxes).

 Labour mobility : do you get your workers /market from local sources or from

further afield.

 Attitudes: towards work , leisure, work-life balance – linked to disposable income

and personal motivational factors

 Education : skill sets for job – changes to vocational training in schools,

 Fashion: hard to predict what will be ‗in‘ and for how long. Be a trend setter or a

follower (with the risks associated).

TECHNOLOGICAL

 Government focus : grants may be available for unique work

 Research: Costs associated with developing a new project are yours, you make the

mistakes – those following know it can be done (and have confidence in the

technique) they ride on your marketing to produce the ‗next version‘ when all costs

from yours may not have been recovered. You are in the market first and may be

able to close out the opposition.

 Speed of technology: How quickly can the new technology be used in a practical

manner

 Obsolescence: What is the lifecycle? Where are you on it? As a technical item

nears the end of its‘ use it gets cheaper (but less desirable), as other users move

away from the technology the cost of producing it goes up (and so does your cost).

Environmental

 Environmental protection laws: - disposal of by-products, cleaning, heat transfer

 Waste disposal – incineration,

 Energy consumption – carbon dioxide emissions, light pollution,

 Related topics: Kyoto agreement, ISO 14000, WEE directive

LEGAL

 Employment law

 Consumer protection

 Regulations

 Monopolies commission

Automobile Industry in Sudan

CHAPTER – 2 INTRODUCTION OF THE TOYOTA & AUTOMOBILE INDUSTRY AND ITS ROLE IN THE ECONOMY OF SUDAN COUNTRY.

2.1 COUNTRY OVERVIEW

Sudan is considered the popular country in Africa and ninth largest in the world with an average per capita income of U.S.$ 395. It has different ecological zones and a diverse agricultural base that accounts for 40 % of GDP. Over the years, growth rates have been fluctuating trends that coincide with agricultural production being affected by weather conditions. Oil has also arise as major source for economic growth and revenue for the government as reflected in the balance. 2.2 INDUSTRY OVERVIEW Automobile industry is a sign of technical marvel by human kind. To be one of the fastest growing sectors in the world its dynamic growth phases are explained by nature of competition, product life cycle and consumer need. Today, the global automobile industry is concerned with consumer demands for styling, safety, service and comfort; and with employee relations and production efficiency. The industry is at the crossroads with global mergers and relocation of production centers to emerging developing economies.

Due to its vertical integration with several key segments of the economy, the automobile industry is having a large multiplier effect on the growth of a country and hence is capable of being the symbol of economic growth. It plays a major catalytic role in developing transport sector in one hand and help industrial sector on the other to grow faster and thereby generate a significant employment opportunities. As automobile industry is becoming standardized with various tools, the level of competition is increasing and production base of most of auto-giant companies are being shifted from the developed countries to developing countries to take the advantage of low cost of production.

The increase competition and increasing global trade are the major factors in improving the global distribution system and has forced many auto-giants such as General Motors, Ford, Toyota, Honda, Volkswagen, and Daimler Chrysler, to shift their production bases in different developing countries which help them operate efficiently in a globally competitive marketplace.

Thus an automobile makes an attempt to evaluate the growth pattern, changes in structure of ownership, trade pattern, government role etc

2.3 COMPANY OVERVIEW

To a large Toyota is built upon principle i.e kaizen(improvement), challenge, genchi genbutsu( go and see), respect, teamwork. Lean production was one of a number of reasons why the toyota managed to match and sometimes even excel Europeans and Americans in the 1980s and 1990s. Other important features that contributed to the success of the Japanese automobile industry were: the government policy of government , low cost of capital , extensive transfer of technology, intensive competition within own market, the oil crises, etc. By 1953, Toyota introduced the just-in-time concept and a larger responsibility for the workers on the production line.

It is following the spirit and applying it under different set of conditions. More widespread knowledge of car production and the available ‗more sophisticated technological system provide the ‗conditons for extensive subcontracting. Lean production includes teamwork, communication, efficient use of resources, and continuous improvement. It combines the best features of both craft production and mass production - the ability to reduce costs per unit and improve quality while providing a wider range of different products. The Japanese decreased levels of in-

house vertical integration between parts productions and final assembly while building up networks of suppliers. The relationship with suppliers involved a hierarchical network between the automobile maker, tier-one, tier-two and so on suppliers. The relationships were based on trust rather than on contracts.

2.4 ROLE OF TOYOTA IN AUTOMOBILE INDUSTRY The Toyota will play a key important role in automobile industry by the way of adopting the principles like challenging, kaizen ,lean production system etc Leadership is a choice that Toyota will make every day. Over the last four decades, Toyota have redefined leadership within the automobile industry by constantly moving the benchmark of quality, corporate responsibility and best practices. With a comprehensive strategy that is firmly rooted in the Toyota principles of continuous improvement and respect for people, toyota now have the opportunity to become a leader in corporate diversity. The Toyota Diversity Strategy outlines the processes and programs it will use to achieve diversity goals. Diversity gives Toyota additional ways to make a difference and to earn the respect of all of our communities. In short, it provides Toyota with a new way to fulfill its mission—to become the most successful and respected car company in America. Driven by a vision-goal to lead the industry in successful minority dealer ownership in terms of profits and per store sales, Toyota will add 4 to 6 new minority dealers each year over the next 10 years.

2.5 STRUCTURE OF AUTOMOBILE INDUSTRY There are many types to describe the market structure of the automotive industry. Here are two:  First is the heterogeneous buyers that make up the population and second is homogeneous sellers. This means that everyone needs a car (because a car is not a luxury item), but everyone has different needs. Thus, buyers are everyone in the population, and they are heterogeneous (different). But sellers are practically the same. GM, Ford, Chrysler, Nissan, Honda, Toyota, etc etc all offer BASICALLY the same products. Thus, they are homogeneous.

 Buyers with high brand-preference and highly marketed sellers this means that many automobile buyers have a loyal to brand , and sellers market to cultivate that loyalty.

2.6 STRUCTURE OF TOYOTA

Structure of organization can bedefined as a way in is a in which the organization member work together with the coordination and in cooperative manner to achieve the organization‘s goals. It represents the hierarchy of an organization.

Each firm establishes an organization structure that identifies the top management authority and responsibilities of employee‘s and manager

The structure of organization is based on  Span of control,  Organizational height  Use of line versus staff position. Toyota follows the matrix organization structure. The Toyota organization structure is designed to support teamwork. Toyota followed the power of 2.7 BUSINESS ACTIVITIES OF TOYOTA Toyota is based on a philosophy of ―customer first‖, Toyota strives to provide attractive and variability in products and services that meet the needs of customers worldwide. Toyota also seeks to achieve the top-level world standard in protection of environment and safety measures. In these regard, Toyota has its plans both domestically and abroad concerning environment and safety, and in relation to research, development, procurement, production, distribution, sales and services activities.

1. Compliance with regulation and laws - With soul social norms in mind - Toyota will comply with applicable laws, internal company policies and rules, abide by sound social norms, and take appropriate action against any illegal or criminal acts or acts in violation of the company‘s policies and rules. Toyota will implement the ―Code of Conduct‖ and make a commitment to comply with applicable laws, as

well as internal company policies and rules, and to abide by sound social norms in all aspects of work.

2. Use of management assets and confidential matters -Ensuring asset maintenance and confidentiality management - Toyota possesses a wide variety of tangible and intangible assets that are indispensable and invaluable to its successful business and growth of company. In order for Toyota to use such assets effectively and at any time during the course of its business activities, Toyota manages such assets with a firm hand in order to prevent such assets from being lost, stolen or used illegally or wrongfully.

Toyota is manage and protect confidential information (i.e. its trade secrets) and to use such information in an appropriate manner. At the same time, Toyota does not tolerate the illegal use of another party‘s assets or intellectual property or the unauthorized use of another party‘s confidential information.

3. Insider trading - Act as an investor with sound common sense - Toyota possesses a large amount of valuable internal (confidential) information and does not allow people working for it to engage in insider trading, such as using confidential information to buy and/or sell stocks.

4. Activities promoting safety - Enhancing vehicle safety- For an automotive manufacturing company such as Toyota , the pursuit of safer vehicles is always one of its main challenges and mission. Toyota as a group, in cooperation with their suppliers and dealers, to engage in research and development, design, production, cost control, quality control and after-sales services in order to deliver its customers Toyota and/or Lexus vehicles that display sophisticated safety levels under various conditions and that provide a comfortable experience for drivers. Toyota will also be actively involved with ―Education of people‖ and with improving the ―Traffic Environment.‖

5. Environmental preservation activities - Building environmentally and people friendly vehicles - Toyota has decided to ―dedicate theirselves to providing clean and safe products to consumer and to enhancing the quality of life everywhere through all our activities‖. Furthermore, Toyota has developed a proactive policy and plans to assure continual improvements in environmental performance in the ―Toyota Earth Charter‖ and ―Toyota Environmental Action Plan‖.

Toyota has taken environmental impact into consideration at all life-cycle stages of its vehicles, including development, production, usage and disposal. Toyota promotes compliance with international environmental standards, implementation of enhanced environmental assessments, and realizing the principle of ―building people and environmentally friendly vehicles‖ in cooperation with its suppliers, dealers, etc.

6. Procurement activities - Reasonable and sincere transactions –

Based on following policies, Toyota engages in fair and open procurement activities:

 Fair competition based on open door policy

Toyota offers fair opportunities to all candidates. Toyota evaluates candidates based on their overall strengths, including quality, technology, price, quantity and reliability of delivery, as well as the stability of their business management and technological development capabilities.

 Mutual growth based on mutual trust

In order to build relationships that result in mutual growth, Toyota and its suppliers try hard for mutual collaboration and close communications as equal partners.

 Promoting localization in view of good corporate citizenship

In order to contribute to its local communities, Toyota globally promotes local production of Toyota and/or Lexus vehicles and events to actively promote local procurement of parts and materials.

The Toyota is engage in procurement activities with fairness and integrity honesty ,responsibility , in consideration of the above three basic policies and compliance with the law.

7. Production and distribution activities - Building vehicle that win customer trust and faith –

Toyota endeavors to produce high-quality products and Lexus vehicles and parts and deliver them in an efficient manner in order to meet customers‘ need and expectations. In order to realize such production and supply goals, Toyota endeavors to build the ―world‘s optimum production network‖ and a ―global distribution network‖.

In addition, in order to enhance the competitiveness in global market Toyota has developed the Toyota Production System, which continues to evolve according to the characteristics of particular regions of the world and aims to achieve worker and environmentally friendly plants.

It will to maintain the safety and quality of products and to comply with laws related to production and distribution.

8. Sales activities - Winning the trust of customers and dealers -

Toyota endeavors to build relationships with dealers based on mutual trust, and to bring mutual growth and support for fair competition and transactions.

 Philosophy of “customer first”

Based on a this philosophy, Toyota strives to create a sale and service structure that promptly responds to the various needs of customers worldwide. To achieve this, Toyota develops products that meet customer expectations and implements a marketing strategy and sales style that matches the product profiles and various customer needs.

 Mutual growth based on mutual trust Toyota develops and provides attractive product and various styles of dealer showrooms and sales styles, and a meticulous customer and revenue management system. Toyota is carry out this activities to the improvement of sales efficiency and effectivity of work and enhance profitability of its dedicated dealers, to build mutual trust and to bring mutual growth.

 Importance of fair market competition Toyota honor free trade and market competition, implements ambitious sales strategies in order to obtain customer satisfaction and customization product to support various areas of the world, and endeavors to engage in fair competition and transactions.

9. Overseas business activities - To become a global company trusted worldwide –

Toyota undertake its business worldwide and many of its activities are conducted outside Japan ,including not only manufacturing activities, but also research and development. Toyota recognizes the ever-changing environment surrounding its business operations, global diversity, the specificity of each local area in terms of its own rules and customs,regulation, etc., and the rapid changes in world political and economic climate. Toyota respects international rules and laws, culture, customs and history of local societies. Thus, TOYOTA promotes its business activities from ―both a global and local‖ standpoint so as to contribute to the development of local economies and society. . 10. Profitability enhancement activities - Building a stronger profit foundation-

In order to respond to the expectations of investors and society, Toyota endeavors to perform various measures to improve business management efficiency, achieve sustainable growth in profit and strengthen the foundation of its management and profit. When determining investments or financing for various domestic and overseas projects, As for opinion of fund management, Toyota places the highest degree of priority on safety and certainty. Based on the appropriate financial performance indices, TOYOTA assesses business management efficiency and profit make-up on both an individual and consolidated basis. Toyota does its best to continuously improve these, and to timely and fair disclosure of its financial condition and to make appropriate payment of taxes. In order to realize such disclosure, TOYOTA strives to appropriately oversee the financial condition of its subsidiaries and affiliates.

2.8 FUNCTIONS OF TOYOTA

 The Toyota will respect the language and courage of the law of every nation and undertake the fair corporate activities to be a good corporate citizen of the world.

 It will respect the culture and customs of every nation and contribute to economic and social development through corporate activities in the communities.

 It will dedicate their elves for providing clean and safe products and to enhancing the quality of life everywhere through all business activities.

 It will create and develop advanced technologies and provide dazzling products and services that fulfil the need of the customer worldwide.

 It enhances individual inspiration and teamwork value, while honouring common trust and respect between labour and management.

 Purse growth in harmony with the global community through innovative management..

 Work with business partners in research and creation to achieve steady, long term growth and mutual benefits, while keeping their selves open to new partnerships.

3.1 COMPARATIVE POSITION OF AUTO INDUSTRY IN INDIA

The decade of 1985 to 1995 saw the entry of Maruti Udyog in the passenger car sector and Japanese producers in the two wheelers and light commercial vehicle sectors. Economic liberalization globalisation and privatisation, started in 1991, led to the delicensing of the passenger car segment in 1995. QR on imports continued. This decade witnessed the rises of Hero Honda as a main companies in the two wheeler sector and Maruti Udyog as the market leadership in the passenger car sectors. Between 1995 and 2009 some international companies entered in the market. modern technology was launched to face competitive stress, and business environmental and safety urgent. Automobile companies inception investing in service network to support maintenance of on-road vehicles. Auto financing started demerging as an crucial driver for demand. Starting in 2000, some landmark policy changes like removal of quantitative prohibition (QR) and 100 percent FDI by automatic ways were launched. Indigenously improved (Made in India) Vehicles were launched in the home market and exports were given a thrust. Auto companies inception combination with financial companies to furnish auto financing and insurance services to consumers. Producers also introduced systems to increase capacity utilization and accept quality and environmental management systems. In 2004, Core-business on Automotive R&D (C.A.R.) was established to recognised important areas for automotive R&D in India. Auto Components: In 1953, the Tariff Commission in its report to Government had pressured the requirement for a balanced and combined development of the Automotive Industry by boosting the emergence of consolidated auto-component sector. As a result of that suggestion the leading entrepreneurs were invited by Government to set up an auto-component manufacturing industry. In the pre-1987 era, the auto component segment was a secured market with extreme import tariffs. The market was related primarily towards supply of components to home manufacturers. In the 1981s, spurred by the set-up of several Japanese OEMs in the passenger car, two-wheeler and LCV industry in the country,

a number of Indian companies entered into joint ventures with Japanese companies and exports also commenced. The Phased Manufacturing Programme (PMP) launched in Indian automotive segment in the 1980s for localization had laid the foundation for the improvement of auto component industry. This programme enabled the auto-component industry to modernisation its technology, development quality and to imbibe good manufacturing and shop floor practices and to transform itself into a highly gifted companies of the industry, while at the same time contribute to localizing the component base. In 1990s global OEMs and Tier 1 suppliers started operations in India. These paved the way for a vital number of new Joint Ventures in the component industry with European and American component manufacturers and furnish the Indian component industry an all-round expertise to manufacture components for applications in Japanese, European as well as American vehicles. After the PMP programme came to an end in 1991, Government launched the MOU system that continued to place emphasis on the aspect of localization of components. With support from this policy, the component industry Toyota Corolla Altis (Sedan) Flaunting new styling and improved engine the all new Toyota Corolla Altis is set to hit Indian roads with a promising mileage and enhanced performance. A 1.8 L Variable Valve Timing, with intelligence lies within the hood of the sedan. The other distinct characteristic include soft plush seats, ample storage space, sound insulated interior design, centre armrest and integrated audio system. All these undeniably offer especial operate for its occupants. To enable good off road value it is equipped with Electronic Power Steering (EPS), better suspension and the tight turning radius. Approximately priced between 13-14 lakh rupees, the all new Altis has been launched in five sizzling colors. The Corolla Altis has a different outer flow lining with wing mirror and turn indicator. Front and rear parking sensors, auto climate controlled air conditioning; tilt & telescopic steering control with switch control, super electronically controlled transmission are the another striking characteristic of the all new Toyota Corolla Altis. This is the basic model having essential characteristic like Air conditioning, Power windows and Door Locks, AM/FM radio and CD player are the other features. It has

a 5 speed manual transmission with 5 gears. It lacks the leather seats which are seen in the other two elements. The weight of the sedan is 1200 Kg Corolla Altis 1.8GL (Petrol) This four doored, five seater sedan has a 5 speed manual transmission with 5 gears. Features include Air Conditioning, Power Windows and Door Locks, AM/FM Radio, CD player and Leather Seats. The car weighs around 1215 kg and is slightly heavier than the Corolla Altis 1.8 GL.

Corolla Altis 1.8VL (Petrol) This is a highly modern version with a 4 - speed automatic transmission. The Corolla Altis 1.8VL have 4 gears as compared to the above mentioned variants and includes all the features common to the other variants. It weighs 1235 kg and is by far the heavier variant. Toyota Corolla (Sedan) The Corolla is a luxury sedan that alliance excellence with style and performance. The modern aerodynamic styling gives the appearance of travelling in a luxury car with the looks of a sports car. The Toyota Corolla with its petrol variants targets the moderate class consumer with Toyota Sedan cars between rupees ten and fourteen lakhs. Toyota Corolla variants include

Corolla HE (Petrol) The HE is Corolla's executive model targeted for corporate upwardly mobile executives. This various has a showroom price of around Rs. 9.3 lakhs and on-road prices of around Rs. 10.2 lace, which is inclusive of all charges such as insurance, octroi, RTO, etc

Corolla H1 (Petrol) The H1 is the base variant in the Corolla range. It is also capable of seating 5 people with five speed manual transmission and power steering. The H1 is specifically designed for Indian conditions. It comes with sturdy features and a range of appealing characteristics. It gives the user an unmatched driving experience. It has unrivalled engineering, style, and other features. New cars in this series have a

showroom price ranging from around Rs. 10.3 lakhs to around Rs. 11.3 lakhs inclusive of all charges. Corolla H2 (Petrol) The H2 is the enhanced model with improved features and other characteristics. The H2 is specifically designed for Indian conditions. It comes with sturdy characteristic and a range of appealing characteristics. It gives the user an unmatched driving experience. It has unrivalled engineering, style, and other features. At the showroom, this car costs around Rs. 11.3 lace with an on-road price of around Rs. 12.4 lace. This includes standard ancillary charges also Corolla H3 (Petrol) The Corolla H3 is the upper range model in the Corolla H series with improved features and interiors. The H3 is specifically designed for Indian conditions. It comes with sturdy features and a range of appealing characteristics. It gives the user an unmatched driving experience. It has unrivalled engineering, style, and other features. At the showroom, this car costs around Rs. 11.7 lakhs with an on-road price of around Rs. 13.10 lakhs. This includes standard ancillary charges also Corolla H5 (Petrol) The H5 is the higher end model specifically designed for Indian conditions. It comes with sturdy features and a range of appealing characteristics and gives the user an unmatched driving experience. It has unrivalled engineering, style, and other features. New cars in this series have a showroom price ranging from around Rs. 11.7 lakhs to around Rs. 13.1 lakhs inclusive of all charges.

Corolla H4 (Petrol) The H4 is the superlative model in the Corolla series. Specifically designed for Indian conditions, it comes with sturdy features and a range of appealing characteristics. It gives the user an unmatched driving experience. It has unrivalled engineering, style, and other features. This variant has a showroom price of around Rs. 12.35 lakhs and on-road price of around Rs. 13.8 lakhs, which is inclusive of all charges such as insurance, octroi, RTO, etc. Toyota Camry (Sedan) The Camry is Toyota's latest entry in the luxury sedan segment targeted at premium buyers. This model boasts of superior aerodynamic features coupled with a host of

stylish and elegant external features along with athletic curves that blend with the overall design. Toyota (Sedan) The Toyota Camry with its petrol variants targets the upper middle class consumer and offers Toyota cars between rupees twenty-four and twenty-five lakhs. Toyota Camry variants include Camry W1 Manual (Petrol) The Camry W1 manual is Corolla's magnificent presentation in the D+ segment. It has great styling, well appointed interiors, and simply outshines in refinement. New cars in this series have a showroom price ranging from around Rs. 21.6 laces to around Rs. 24.75 laces included of all charges

Camry W2 Automatic (Petrol) The Camry W1 automatic is Corolla's magnificent presentation in the D+ segment. It has great styling, well appointed interiors, and simply outshines in refinement. The Camry W2 Automatic is now obtainable at a showroom price of around Rs. 23.3 laces with an on road price of around Rs. 26.65 laces including supplementary statutory charges.

3.2 PRESENT POSITION AND TRENDS OF BUSINESS (IMPORT AND EXPORT) WITH INDIA

Trends in Production Over the last few years there has been an increasing trend in the production of vehicles, both in value and quantity terms. The only lean patch in production was during the year 2000-01, and recently in 2007-08, during which the growth in absolute numbers decreased marginally. The rate of production of Indian automobile industry has increased at a CAGR of over 12% during the period 2000-01 to 2007- 08. The production activity is likely to be influence in the year 2008-09 also due to slowdown in demand and associated challenges in regional and global markets. However, in the long term, the production growth is expected to improve again in-line with the expected growth in the economy, and it is likely that the momentum in the production may increase further with India being considered likable as an outsourcing destination. Production in Individual Categories Keeping in pace with the growing demand for automobiles, the production has increased over the years. However, sub segments such as scooters and mopeds have

Witnessed decrease in production. It may be indicated that the technological modern and change in consumer preferences might be the possible reasons for the decrease In demand for four wheeler and mopeds, and increase in demand for motorcycles. Commercial vehicle and passenger vehicle production have seen a important rise in the last two of years, thus implying demand growth in these sectors. The four- wheelers segment constitutes the lump of the total production of automobiles in the country with a production share of almost 75% in the year 2007-08, followed by the passenger vehicles segment, with a share of around 16%. The commercial vehicles constitute 5% followed by the four wheelers at 4%. During the scrutinise period (2001-02 to 2007-08), the % growth of two wheelers production has been most consistent among all the segment of vehicles. The production of passenger vehicles segment on the other hand has been growing slowly during the analyzed period, though exports in 2007-08 were to Asia region. While a sizeable volume of passenger vehicles were exported to Europe, other regions such as Africa and Latin America were also the target regions for export of passenger vehicles by India.

INTERPRETATION Above chart are indicated related the export of motors in outside countries from india. There chart says that number of the motors is export from the india to out sides countries. In 2001-2002 export of motors is very less as compared to production of the automobiles products and in the 2007-2008 year production of the automobiles product is 11.43 but export of the automobiles product is increase as compared with the year of 2001-2002

Interpretation Above chart says related that which types of cars to export in different countries. India mostly two wheeler and passengers vehicle auto are export in the different countries.

INTERPRETATION Above chart are indicated as export of the automobiles from india to different countries. Automobiles of the product export from the india to different countries such as above name in the charts.

CHAPTER : 4 4.1 POLICIES AND NORMS OF SUDAN FOR AUTOMOBILE INDUSTRY EXPORT AND IMPORT INCLUDING , TAXATION, LICENSE ETC

4.1.1 Policy & norms of Toyota

1) Basic policy Contribution toward a prosperous 21st century society Aim for growth that is in accord with the environment, and set as a challenge the achievement of zero emissions throughout all areas of business activities.

Pursuit of environmental technologies Pursue all possible environmental technologies, developing and establishing new technologies to enable the environment and economy to coexist harmoniously.

Voluntary actions Develop a voluntary improvement plan, based on thorough preventive measures and compliance with laws, that addresses environmental issues on the global, national and regional scales, and promotes continuous implementation.

Working in cooperation with society Build secure and cooperative relationships with a wide spectrum of individuals and organizations involved in environmental preservation including governments, local municipalities, related companies and industries.

Always be concerned about the environment Take on the challenge of achieving zero emissions at all stages, i.e., production, utilisation, and disposal:  Develop and provide products with top-level environmental performance  Pursue production activities that do not generate waste  Implement thorough preventive measures  Promote businesses that contribute toward environmental improvement.

Business partners are partners in creating a better environment-

Work together with associated partners

As a member of society

 Actively participate in social actions-  Participate in the creation of the recycling based society  Support government environmental policies  Contribute also to non-profit activities. . 2) Production Environmental Policy

 Compliance with all applicable environmental policies,laws,regulation legislation, regulations, and other requirements.

 communicate closely with the relevant authorities and local environmental interest groups and to maintain a policy of openness and cooperation with these bodies.

 Prevent pollution through effective control measures and where pollution may occur, take the necessary steps to prevent it from recurring.

4.1.2 Import rules And regulation of Sudan

Import Rules 1) Import through Kapoeta and Kaya borders by road

 All importers have to apply for an Import License giving the complete product details and approximate value of the total imports to the Ministry of Commerce in the prescribed form. In case the importer does not have an import license they have to pay a fee of 2% of the CIF value during customs clearance.

 For Imports through Kaya border the customs clearance has to be done at the border or at Yei. With regard to imports through Kapoeta the customs clearance can

be done at the border or at Juba. Presently at Yei, customs are taxed under a tariff regime of 0 to 20%. At Juba the regime is from 0 to 45%. All vehicles custom cleared at Yei can also be registered at Juba.

 Tax exemptions are given to all imports made by registered NGOs, Government tenderness, specific projects and imports made under investment policy. Exemption is issued by both Central Government at Khartoum and GOSS Government. 2) Import through Port Sudan by sea, Khartoum & Juba by Air All importers need registration in the Import/Export Registry at the Ministry of Foreign Trade.  Import Declaration Form

4.1.3 Toyota import cars to Sudan

Global Japanese auto maker Toyota supply tax free brand new 4x4 import cars to international construction companies, oil companies, vehicle traders, support organizations, and diplomatic missions in Sudan. Extremely competitive prices and services of global traders create advantages to import Japanese cars to Sudan. Japanese Import Cars to sudan includes 4 wheeel vehicles, pick-up trucks, sedans, station wagons and minibuses supplied to worldwide vehicle market. Individuals such as expats or diplomats, international traders, international companies, aid/support and governmental organizations in Sudan could import Toyota cars to avoid local sales taxes and to have more competitive prices. The process of importing Toyota cars to Sudan 1. Marketing Information to Import Toyota cars to Sudan It is important for sudan to search the prices of 2012 and 2011 model brand new Japanese cars in local car dealers of Sudan car market. Total price of the car is the cost of the car, plus transportation and also the cost of tax. It would be enough to have prices quotes from at least three different local dealers. Then you can search for global Japanese auto suppliers in grey market or parallel import. It is important to compare full prices (including transportation, tax and cost of other procedures), but also it is necessary to compare stock availability of Japanese import cars. 2. Financial Information to Import Toyota cars to Sudan

Based on marketing research, if there is an benefit of importing Japanese cars to Sudan; then it would be good to work on financial procedures to import cars. Payment methods (Bank Transfer, LC), Trade Terms (FOB, CIF, EXW) are important for foreign trade. 3. Drive and Traffic Direction in Sudan It is important to know that the traffic flow might be right or left. So, vehicles are manufactured in left-hand drive (LHD) and right-hand drive (RHD) configurations based driving seat and controls within the vehicle. Drive direction is the opposite of the traffic flow direction. 4. Standards and Legal Procedures to Toyota import cars to Sudan There are specific standard to imports cars to countries and/or regions. You can learn these details from your global suppliers, however, it might be better to consult to a customs brokers about those procedures. Advantages of importing Toyota cars to Sudan 1. Tax Free Prices for Sudan Worldwide vehicle suppliers of Japanese cars specialize in supplying tax free 4WD vehicles to international construction companies, oil companies, vehicle traders, support organizations, and diplomatic missions in Sudan. 2. Competitive Prices to Toyota import cars to Sudan Compared to local car market in Sudan, global automobile traders may provide better price quotes for Japanese cars.

4.2 POLICIES AND NORMS OF INDIA FOR IMPORT OR EXPORT TO SUDAN INCLUDING LICENSING ,TAXATION

India-Sudan Economic And Commercial Relations Sudan enjoys unique demographic characteristics, it shares border with nine

countries. Sudan is the largest country in Africa. Sudan needs to import a wide range of products, not only traditional items of household use but also hi-tech related products. Some pharmaceuticals companies in India are also exploring possibilities of installing manufacturing units in Sudan. Though Sudanese economy is at the ages of recovery, country does not have sufficient ready liquidity to fiancé its infrastructure developing programmes. credit of

US$ 50 million by GOI to Sudan would provide initial help to start our exports. The other obstacle in smooth transaction of business is absence of inter banking arrangements between India and Sudan. Commencement of crude exports in 1999 helped in functioning of banking system. Some Indian Banks including SBI are in touch with Sudanese Banks to arrive at some corresponding arrangements. Some Indian companies from public and private sectors are now actively striving to register their presence in Sudan such as , BHEL, TCIL,ITI Limited, RITES, Konkan Railways, IRCON International, Kirloskar Brothers, Kalpataru Power, Mohan Exports, Jaguar Industries, Agelique Industries and L&T . 4.3 TRADE BARRIERS FOR IMPORT AND EXPORT TO SUDAN

Sudan‘s trade suffers from several tariff and non-tariff barriers, despite persistent efforts by the government to liberalize trade. According to the Index of Economic Freedom, trade with Sudan was subject to a high weighted average tariff rate of 11.4 percent in 2008. Import restrictions, discriminatory taxes, delays in customs clearance and non-transparent regulations are some of the factors impeding Sudanese trade. Sudan‟s trade suffers from several tariff and non-tariff barriers, despite persistent efforts by the government to liberalize trade. According to the Index of Economic Freedom, trade with Sudan was subject to a high weighted average tariff rate of 11.4 percent in 2008. Import restrictions, discriminatory taxes, delays in customs clearance and non-transparent regulations are some of the factors impeding Sudanese trade. Sudan has been deemed as one of the 10 most corrupt countries in the world, which makes Sudanese trade riddled with unfair practices, adding to its overall cost of trade. Sudan Trade, Export and Imports: In 2010, Sudan has a current account deficit of US$ 5.79 billion. Crude oil and petroleum were the key export commodities of the nation, followed by cotton and sesame. Other chief Sudan export items are:  Livestock  Gum Arabic  Groundnuts  Sugar  Manufactured goods

 Transport equipment  Medicines  Chemicals The share of Sudan‘s export and import partners in its total trade, according to CIA World Factbook reports for 2009, was:

Exports Imports

China 58.3% China 21.9% Japan 14.7% Saudi Arabia 7.2% Indonesia 8.83% Egypt 6.1%

Sudan Trade, Exports and Imports Agreements: Sudan appaly for WTO membership in 1995 and submitted its memorandum on the Foreign Trade Regime in 1999. Although the nation is yet to be inducted as a WTO member, It nonetheless benefits from trade- related technical support programs offered by the WTO. The Sudanese Commission has also conducted several informal bilateral trade agreements with several member states of WTO, including the USA, EU, Australia, Canada and Brazil Additionally, to improve the status of Sudan‘ s trade, the government has created several trade reforms, including the establishment of state subsidizes to influence the prices of trade commodities. The government also introduced a new currency in 2007, the Sudanese pound, with an initial exchange rate of US $1 equals 2 Sudanese pounds. Despite this efforts, implementation of these reform of the last few years has been slow, subject to frequent delays.

CHAPTER-5 5.1 POTENTIAL MARKET FOR IMPORT AND EXPORT IN INDIA

The Indian automotive component industry is dominated by around 500 players which account for more than 85% of the production. The turnover of this industry has been growing at a mammoth 28.05% per annum from 2002-03 onwards as illustrated inFig.1 which clarifies its emergence as one of India's fastest growing manufacturing sectors. During 1990s, the auto components market in India used to be dominated by supplies to the aftermarket with only 35% exports sourced by global Tier 1 OEMs (Original equipment Manufacturers). The industry made a sustained shift to the global Tier 1 market and today, the component manufacturers supply 75% of their exports to global Tier 1 OEMs and the remaining to the aftermarket. This is largely due to the growing capability of the Indian component suppliers in understanding technical drawings, conversance with global automotive standards, economically attractive costs (manufacturing costs are 25%-30% lower than its western counterparts), flexibility in small batch production and growing information technology application for design, development and simulation. Besides the burgeoning demand of auto components from global majors, the domestic automobile industry has been showing a sparkling growth caused by increasing customer base and affordable loans. Based on this, the turnover of the Indian auto component industry is expected to touch US$ 18.7 billion by 2009 and estimated to reach US$ 40 billion by 2014.

5.2 BUSINESS OPPORTUNITY IN THE FUTURE IN AUTOMOBILE INDUSTRIES

The liberalized policies of the Indian Government paved towards steady evolution of India as a stable and market driven economy with the real Gross Domestic Product growth in excess of 8%, foreign exchange reserves crossing the $150 billion mark, growing value of Indian Rupee compared to US dollar and reducing inflation rate. 100%Foreign Direct Investment, absence of local content regulation, manufacturing and imports free from licensing & approvals in the automobile sector coupled with customs tariff or auto components reducing to12.5% resulted in increased number of multinationals establishing their bases in India and with export markets looking up,

the Indian automobile industry is poised for a phenomenal growth. The automobile production in the sub-continent has been growing steadily @ 18.53% per annum from 2002-03 onwards with total vehicle production standing at a mammoth 1,00,31,296 nos. in 2005-06 Among the automobiles, 2 wheelers account for 75.77%, cars about 11.09%, 3wheelers to the tune of 4.33%, tractors about 2.95%, buses & trucks constitute2.19%, Multi Utility Vehicles (MUVs) to the tune of 1.96% and Light Commercial Vehicles (LCVs) about 1.71% of the total number of automobiles produced in the country. Presently, India is the second largest market after China for two & three-wheelers. In tractors production, India is one of the two largest manufacturers in the world along with China. The subcontinent stands as the 4th largest producer of trucks in the world. Coming to the passenger car segment, the country is positioned11th in car production in the world. The Indian passenger car market is far from being saturated leaving ample opportunity for volume growth since the per capita car penetration per 1000 is only 5.3 CONCLUSION & RECOMMENDATION

Toyota is committed to becoming the industry leader in diversity. Over the next 10 years, Toyota will make a significant impact in the areas of minority procurement, dealership development, management development, employment, job training, and community support. Toyota will improve representation through a strategy of targeted development, recruiting and retention. We found that sudan people are belongs to the category of the lower middle income so They will have to great opportunities in the sudan country related the sales of the auto product if the Toyota company want to increased the sales turnover in the sudan country so they will have to done reduced the sales price of the auto product in the sudan. In near future Toyota company will merger with the BMW auto company so they have to more market coverage or market share in the auto industry. Toyota have a six position in the auto industry in india so they want to make leader in the auto industry so they have to improved in the Research and development department in india.

FMCG Industry in SUDAN

CHAPTER: 2

INTRODUCTION OF THE PROCTE &GAMBLE AND ITS ROLE IN THE ECONOMY OF SUDAN

2.1 COUNTRY OVERVIEW Sudan is measured the popular country in Africa and ninth largest in the world with an average per capita income of U.S.$ 395. It has different ecological zones and a various agricultural base that accounts for 40 % of GDP. Over the years, growth rates have been variable trends that coincide with agricultural production being affected by weather conditions. Oil has also arise as major source for economic growth and revenue for the government as reflected in the balance.

2.2 Company overview: Foundation Board  Jules O'Keefe, Chairman  Ed Tazzia, Secretary  Guyer McCracken, Treasurer  David Diamond  Mohan Mohan  Martha Miller

In 2000, Procter & Gamble Home Products introduced Tide Detergent Powder - the largest selling detergent in the world. In June 2000, Procter & Gamble Home Products Limited launched Pantene Lively Clean its unique Pro-Vitamin formula cleans oil-build up, dirt and grime in just one wash, delivering lively, free-flowing and sparkling-clean hair. n August 2000, Procter & Gamble Home Products Limited launched New Ariel Power Compact detergent with a new global technology that breathe new life into clothes, by removing dinginess from them and restoring the original colors of the fabric, by detecting and removing deposits which are left behind from following washes. In November 2000, Procter & Gamble Home Products Limited offered India in the first International Hair Styling and Beauty Expert Contest- Hair Asia Pacific 2000 in partnership with Sri Lankan.

During this period, Procter & Gamble Home Products also re-launched the international range of Head & Shoulders, best-ever Anti-dandruff shampoo with an improved formula, new pack-design and logo, in three variants - Clean & Balanced, Smooth & Silky and stimulating Menthol, which offers the fine combination of anti-dandruff efficacy and hair conditioning. In January 2001, Procter & Gamble Home Products Limited and Whirlpool sudan Ltd. launched

a special 'Ariel - Whirlpool Superwash' offer, making washing machines more affordable to the people of Hyderabad. On purchase of either a 500gms, 1kg, 1.5kg or 2kg pack of New Ariel Power Compact, consumers are automatically eligible to buy a Whirlpool Washing Machine for as low as Rs.238/- in Equal Monthly Installments for 24 months.

In June 2001, Procter & Gamble in partnership with the Association of Beauty Therapy & Cosmetology (ABTC), sudan hosted the Pantene Artist 2001 a national stylist competition, which included categories such as Bridal Dressing, Hair Cutting and Body Painting. Present at the event was world-renowned hairdresser and stylist Jun L. Encarnecion, who demonstrated the hottest international haircuts and styles in fashion via an interesting hairhsow. In September 2001, Procter & Gamble Home Products launched New Pantene Pro-V range of five shampoos in India which gave consumers the look they want Smooth & Silky for straighter hair, Volume & Fullness for thicker hair, Balanced Clean for shinier hair, Lively Clean for livelier hair and Anti-Dandruff for dandruff-free hair. In December 2001, Procter & Gamble in partnership with the Southern India Beauty Specialists & Hairdressers Association (SIBHA) hosted the Pantene-SIBHA Look N Learn Seminar where Raman Bhardwaj hairdresser to former Miss India, Celina Jaitley verified the Latest and Trendiest Hair Cuts (Modern & Classic) to beauticians and hairdressers in Chennai. In April 2002, Procter & Gamble Home Products Limited announced the launch of a special Ariel Bar Refund Offer along with its new Advanced Ariel Compact. Under the Ariel Bar Refund Offer, consumers could exchange their detergent bar on purchase of Advanced Ariel Compacts 500gms and 1kg packs, and avail of a Rs.7 and Rs.15 discount respectively on MRP. Additionally, Procter & Gamble Home Products announced the Beat The Summer Dandruff offer on which 200ml Head & Shoulders --bottle was available for Rs.99/-only, thus giving a benefit of a Rs.23/- discount to consumers.

In August 2002, Pantene unveiled the launch of the Shine Morning to Night campaign that helps consumers get long lasting hair shine with regular use of Pantene. The Shine Morning to Night operation had two exciting components to it The MTV Shine Your Soul contest where one could win diamonds worth Rs.12.5 lacs and the launch of the Pantene Shine Booths across the country to help achieve the shine that lasts from morning to night. During the same period, Pantene also hosted Hair Asia Pacific 2002 the biggest Hair Cutting & Styling event in Kuala Lumpur, Malaysia. Pantene Hair Asia Pacific is a prestigious international hair cutting & styling contest attracting expert hairdressers and beauty care advisors from more than 13 Asia Pacific countries. Additionally, Pantene also hosted Pantene World Teen Queen contest in Goa. Contestants from UK, USA, South Africa, Kenya, Tanzania, Mauritius, Middle East and Hong Kong participated to win the coveted World Teen Queen crown.

In November 2002, Procter & Gamble Home Products Limited launched Head & Shoulders Naturally Clean, a new variant in its Head & Shoulders range of Shampoos . Its Smart ZPT joint with Natural Citrus (lemon) extracts removes 100% dandruff and rinses oil and tackiness from the scalp, giving light, loose, free flowing hair. In January 2003, Procter & Gamble Home Products Limited concentrated the prices of Pantene and Head & Shoulders 7.5ml sachets from Rs. 4/- to Rs. 3/-, with no change in its superior product-quality or

packaging, improving affordability to a large number of Indian consumerss. The Tide Super Whiteness Gold Dhamaka gave consumers a chance to get their clothes super-white and Win an Exquisite Handcrafted Pure Gold Jewellery Set worth Rs.25,000 and other prizes from Estelle Jewellery. In June 2003, Procter & Gamble Home Products Limited launched Pampers - world‘s number one selling diaper brand with sales of US$ 6 billion annually.

In July 2003, Procter & Gamble Home Products Limited launched Pantene Long Black, the final solution for achieving the Long and Black hair look, and Head & Shoulders Silky Black - the only shampoo in India to offer the dual benefits of 100% dandruff-free as well as silky black hair. In September 2003, Procter & Gamble Home Products Limited announced that its superior quality Tide sachet is now available at Re. 1 per sachet and its Ariel sachet at Rs. 2 per sachet, thus making the world‘s best detergents available at lower prices. In January 2004, Procter & Gamble Home Products Limited announced the launch of Rejoice – Asia‘s No. 1 shampoo, in India. Rejoice‘s patented Micro-Silicone conditioning technology gives twice as smooth, and easy to comb hair versus ordinary shampoos, at affordable prices in 100 ml bottles and 7.5 ml sachets. In March 2004, Procter & Gamble Home Products Limited reduced the prices of Ariel and Tide bags (large packs) by 20-50%, while maintaining the superior quality. The superior quality one kg pack of Tide now cleans a family‘s one month laundry in just Rs.23/-, while a one kg pack of Ariel cleans a family‘s one month laundry in justRs.50/-.

In April 2004, Procter & Gamble Home Products Limited announced the launch of Pantene Hair Fall Control, which is designed to free women of their hair fall concerns by falling hair fall due to breakage by up to 50% within just two months, thus giving them stronger, thicker looking and beautiful hair.

The prices of Pantene 100ml and 200ml bottles were reduced by 16%, offering superior value to consumers. In October 2004, Procter & Gamble Home Products Limited launched New Pantene Amino Pro-V Complex shampoos, which makes hair ten times stronger. In November 2004, Procter & Gamble Home Products Limited launched New Tide Bar. The New Tide Bar is unique as compared to the available detergent bars because of its three unique features: (i) It has green speckles called Whiteons, which release a unique whitening action on reacting with sunlight; (ii) Its technology also ensures that it lasts longer, does not dissolve easily and delivers a good balance between bar-hardness and ease of application on clothes and; (iii) It has a lemony & invigorating fragrance that lingers on clothes hours after wash.

Procter & gamble also announce the launch of olay natural white for lighten skin tone, reduce emergence of dark spots, correct uneven skin tone, Hydrate and protect from harmful sun rays to give you a fairness that glows. Olay Control, which is designed to free women of their darkness concerns by falling darkness and pimples due to breakage by up to 50% within just two week, thus giving them smoother, good looking and beautiful skin.

Location of Proctor and Gamble in Sudan:

Square 35, New jabra 17/26 jabra,

p.o.box : 168111111 khartoum sudan, tel :249-15-5297779, Fax : 249-15-5191114 Africa.

Role of Industrial sector in sudan:

The economic development in sudan followed a socialist-inspired policies for most of its autonomous history, including state-ownership of many sectors; extensive regulation and red tape known as "Licence Raj"; and isolation from the world economy. India's per capita income increased at only around 1% annualized rate in the three decades after freedom. Since the mid-1980s, sudan has slowly opened up its markets through economic liberalization. After more primary reforms since 1991 and their renewal in the 2000s, In sudan has progressed towards a free market economy. The economic growth has been driven by the increase of services that have been increasing every time faster than other sectors. It is argued that the pattern of sudan development has been a specific one and that the country may be able to leave out the transitional industrialization-led phase in the transformation of its economic structure. Sudan‘s limited industrial development consists of agricultural processing and various light industries located in Khartoum North. In recent years, the Giad Industrial Complex in Al Jazirah state introduced the assembly of small autos and trucks, and some heavy military tools such as armored personnel carriers and the proposed ―Bashir‖ main battle tank. Although Sudan is reputed to have great mineral resources, study has been quite limited, and the country‘s real potential is unknown. economy reaches its steady state – a point at which net investments grow at the same rate as the labour force and the capital-labour ratio remains regular. The further the economy is below its steady state, the faster it should grow (see e.g. Jones 1998). In the steady state, all per capita income growth is due to exogenous technological change. The rate of technological process is understood to be constant and not impacted by economic incentives. Several authors have found that capital and labour actually explain only a fraction of output growth and that allowing for the quality of the labour force (human capital) only partially reduces the unexplained growth – or Solow residual. Endogenous growth theory, initiated by Romer (1986, 1990) and Lucas 1988), focuses on clearing up the Solow residual.

Technological change becomes endogenous to the model and is a result of the allocative choices of economic agents (see Aghion and Howitt 1998, Veloso and Soto 2001). Technological progress is driven by R&D behavior which in turn are fuelled by private firms‘ aim to profit from inventions. Unlike other production inputs, ideas and knowledge are nonrivalrous (see Romer 1990). Moreover, new knowledge can augment the productivity of existing knowledge, yielding increasing returns to scale. Because of this, the marginal productivity of capital does not decline with increasing GDP per capita, and incomes need not join across countries.

The following are some of the important role played by industrial sector in Sudan:.  Employment generation  Mobilisation of resources and consumer skill

 fair distribution of income  Regional distribution of industries  Provides opportunities for development of technology  Indigenisation  And also Promotes exports & import activities  Supports the growth of large industries  Better industrial relations

2.3 Structure of the p&g Company:

P&G‘s structure has detached many of the traditional overlaps and inefficiencies that exist in many large companies.  Global Business Units (GBUs) focus only on consumers, brands and competitors around the world. They are responsible for the innovation pipeline, profitability and shareholder returns from their businesses.  Market Development Organizations (MDOs) are charged with knowing consumers and retailers in each market where P&G competes and integrating the innovations flowing from the GBUs into business plans that work in each country.  Global Business Services (GBS) utilizes P&G talent and expert partners to provide best-in- class business support services at the lowest possible costs to leverage P&G‘s scale for a attractive advantage.

2.4 Function of p & g Company:

According to the nature shown by a Function it can be classified into different types.

They are as following:

1)One-to-One function: A function is said to be a One-to-One function if every element of field of the function have its own and exclusive element in range of the function. A function from set A to set B is said to be One-to-one function if no two or more element of set A have same element mapped or imaged in set B. Or no two or more element processed through the function gives same out put For example: When f:A B is defined by formula y=f(x)=x3, The function ―f‖ is a One-to-one function because cube of different numbers is always itself different. The function ―f‖ in the following Arrow Diagram Function is a One-to-one function

2)Onto function:

A function is said to be a Ontofunction if two or more element in it‘s area have same elements in its Range. A function from set A to set B is said to be Onto function if two or more element of set A processed through the function produces same output or same element in set B. For example:

If set a+{a,b,c} and set B+{1,2} And ―f‖ is a function such f:A B is definend by;

Then the function ―f‖ is a Onto Function.

2.5 Business activity of P&G compant

What Is a Statement of Business Activities?

Sources of Self-Employment Income There are various sources of self-employment income you must report on your statement of business activities. You have sales income if you own and manage a retail business. You have commission income if you are a salesman. You have fee income if you are a consultant or provide professional services. Expense Deductions The statement of business activities can be used to maintain deductions of expenses associated with earning business or self-employment income. Typical expenses include advertising, salaries for your employees, insurance, licenses, maintenance, telephone and utilities, office equipment and insurant.

Definition

The aggregate economic activities (buying, selling, renting, investing) of an organization or of the commercial and manufacturing sectors of an economy.

Beauty & Grooming:

Olay:

Olay was initially created by South African chemist Graham Wulff and his wife in the 1950s. They created the original Oil of Olay Beauty solution from a combination of innovative science and a unique understanding of women, which remains the essence of Olay‘s approach to developing a broad range of skin care products to this day.

Head & Shoulders

Head & Shoulders is working hard to attract the myth that dandruff is only evident flakes. The truth is that flakes, one sign of an unhealthy scalp, are a result of the body‘s natural

reaction to Malassezia globosa (M. globosa), the dandruff-causing fungus that lives on the scalp of 100 percent of the adult population

Rejoice

Rejoice believes that smooth hair is the key to confidence for Chinese women, so the brand constantly provides consumers with best-in-class products that deliver it. Several product lines, including Essence Care, Family Care and Traditional Chinese Herbal, have been designed to meet the needs of different consumers and markets

Pantene

The Pantene name refers to panthenol, a compound developed in Switzerland in 1940. During experimental treatments to cure burns in WWII, panthenol was found to improve the health, plasticity and moisturization of hair. Swiss drug company Hoffman-La Roche developed Pantene as a shampoo and launched in Europe in 1947

CHAPTER: 3

3.1 Product of Proctor and Gamble in sudan:

Olay Nourish your skin with nutrients for glowing fiarness from within. Olay Natural White is specially designed to give your skin diet with it‘s triple nutrient system - Vitamin B3, pro-B5 & E to reduce the appearance of dark spots, lighten skin tone and dullness to give you glowing fairness from within

Katrina and Natural White: Her beautiful, glowing skin has millions of admirers. Watch Katrina in this video as she talks about her glowing fairness that doesn‘t go away easily

Ariel Ariel is a library that allows you to extract information from semi-structured documents. It is different to existing tools because rather than expecting the developer to write rules to extract the desired information, Ariel will use a small number of labeled examples to generate and learn effective extraction rules.

Tide Tides are the alternating rise and fall of the surface of the seas and oceans. They are due mainly to the gravitational attraction of the moon and sun on the rotating earth. Two high and two low tides take place daily around Britain and, with average weather conditions, their movements can be predicted with considerable accuracy

Pampers Pampered Chef Consultant complete and submit our Find a Consultant form and a Consultant will be in touch with you. We are here to help! Contact a Solution Center team member if you have questions regarding product information, return policies, guarantee information or if you want to check the status of your order.

Pantene Pantene has a variety of shampoos that claim to keep hair healthy and shiny. Pantene is a hair-care brand that originated in 1947 and is inspired by the ingredient panthenol. Each of the 22 shampoo formulas is infused with pro-.vitamin B5 to help strengthen hair and keep it healthy and strongly. Gillette Available in manual and power, the Gillette Fusion Paraglide razor is our most technologically advanced razor to date. By addressing every aspect of the razor‘s contact with facial hair and skin. Engineered low cutting force blades with thinner edges. Fusion Power‘s advanced low-resistance blade coating Improved blade suspension system

Product of Proctor and Gamble in India:

P&G is one of the largest and amongst the fastest growing consumer goods companies in India.

Established in 1989, P&G India now serves over 650 million consumers across India. Its presence pans across the Beauty & Grooming segment, the Household Care segment as well as the Health & Well Being segment, with trusted brands that are household names across India. These include Vicks, Ariel, Tide, Whisper, Olay, Gillette, Ambipur, Pampers, Pantene, Oral-B, Head & Shoulders, Wella and Duracell. Superior product propositions and technological innovations have enabled P&G to achieve market leadership in a majority of categorie it is present in. P&G India is committed to sustainable growth in India, and is currently invested in the country via its five plants and over nine contract manufacturing sites, as well as through the 26,000 jobs it creates directly and indirectly

P&G operates under three entities in India - two listed entities ―Procter & Gamble Hygiene and Health Care Limited‖ and ‗Gillette India Limited‘, as well as one 100% subsidiary of the parent company in the U.S. called ‗Procter & Gamble Home Products‘.

P&G India Brands:

Olay Olay is a product truly born in love created by Graham Wulff for his wife Dinah in 1950s Olay Control, which is designed to free women of their darkness concerns by reducing darkness and pimples due to breakage by up to 50% within just two week, thus giving them smoother, good looking and beautiful skin Today, Olay is one of the most popular brands in the world. Yet through all the new creation and innovations, the philosophy upheld by Graham Wulff remains just as relevant as ever: Help women look and feel beautiful and Challenge what‘s possible with their skin. The Olay Whitening range includes Olay White Radiance and Olay Natural White. The Base Moisturizer includes Olay Moisturizing Lotions and Creams.

Ambi Pur Though we strive hard to keep our homes and our cars clean and tidy, the results are rarely satisfactory. Odours that linger in our homes just before guests arrive, or a persistent stench that never leaves the car, not only adversely affect our mood, but also that of our guests.

Ariel Introduced in 1991, Ariel was the first to bring the 'compact detergent' technology, the enzyme technology for safe and superior stain-removing power and the 'smart eyes' technology into India, with an aim of becoming India's best mark removal detergent. Ariel contains safe ingredients for all fabrics under recommended usage conditions for laundry. The Ariel product range in India includes different variants to meet your specific needs like Ariel OxyBlu, Ariel Oxyblu Ultramatic, Ariel Front O Mat, Ariel 2in1.

Duracell when and where you need Duracell batteries it providing dependable power. Our range of Batteries gives you the right power for all your device needs, providing up to 10x performance. The product range in India includes Duracell and Duracell Ultra. Duracell is available in different sizes like AAA, AA, C, D, and 9-volt while Duracell Ultra is available in sizes AA and AAA sizes.

Gillette Gillette® has been at the heart of men‘s grooming for over 100 years. Different type of razor range in India includes Gillette Vector, Gillette Mach3, Gillette Mach3 Turbo, Gillette Guard and Gillette Mach3 Turbo Sensitive and Gillette Fusion. The Gillette Skincare treatment is a no-fuss and efficient solution in caring for the health and look of men‘s skin and includes a special range of designed-for-men Gillette Skincare Foaming Wash, Gillette Skincare Scrub, Gillette Skincare Facial Moisturizer with Aloe Vera.

Head & Shoulders Since 1950, Head & Shoulders has been at the forefront of scalp and hair science, significantly advancing the treatment of dandruff and scalp problems. Head & Shoulders is available in eight variants in India including Men Hair Retain, Complete Care for Dry Scalp, Anti Hair fall, Smooth & Silky, Cool Menthol, Clean & Balanced, Thick & Long & Silky Black.

Oral-B Oral-B continuously strives to work closely with the dental professionals and deliver high quality products, which make us leaders in the $ 4.5 billion toothbrush category, marketing toothbrushes for children & adults, as well as inter-dental products such as Dental Floss. In India, Oral-B has an original range of toothbrushes including CrossAction Pro-health 7 Benefits, CrossAction Pro-health Superior Clean and Sensitive toothbrush. ased on global value market share for June-July 2006-07, global Nielson Audit

Pampers As a result of constant research and innovation in understanding the needs of babies at various stages of development, Pampers Active Baby has been chosen as the best diaper by Indian moms with the guarantee of superior dryness for an uninterrupted sleep of 12 hours. Pampers has an answer for all your needs with its innovative product range that includes Pampers, Pampers Active Baby, Pampers Active Baby Pants, all designed especially for providing a night of Golden Sleep for the baby.

Pantene The New Pantene Amino Pro-V Complex range of shampoo & conditioner comes in three variants suited for individual needs - Pantene Nourished Shine, Pantene Hair Fall Control & Pantene Smooth & Silky.

Tide Tide is the World‘s Oldest & Most Trusted Detergent brand and is the Market Leader in 23 Countries around the world. Launched in India in mid-2000, Tide provides ‗Outstanding Whiteness‘ on white clothes & excellent cleaning on coloured clothes as well. Tide‘s Fabric Whitening Agents clean clothes without bleaching or removing colour from a garment. Tide is very useful to compare the other powder. The Tide range in India includes Tide Detergent and Tide Bar with Whiteons. Tide Naturals was launched in India in December 2009.

Vicks Vicks has long been invested in the science and research of respiratory health and through that dedication has developed a wide range of beneficial products that offer effective relief for all the major signs and symptoms of the common cold, sinus pain and pressure. The Vicks product range in India includes Vicks Cough drops, Vicks Vaporub, Vicks Inhaler, Vicks Vapocool, and Vicks Action 500 Extra.

Whisper Whisper understands that we're each very different, and offers a wide range of sanitary napkins to suit every girl or woman's needs. With the right menstrual pad, you could take the first step to having a Happy Period. Whisper cottony soft wings with secured center for extra absorption where it‘s needed the most and the longer pad for longer lasting protection.

3.2 Present Position and Trend of Business(import / export) with India during last 3 to 5 years:

Present trend of procter & gamble in sudan:

Procter & Gamble is the world's largest producer of household and personal products by revenue, with its products reaching 4 billion people worldwide.because it‘s including olay, Tide detergent, Pampers diapers, and Gillette razors, that generate over $1 billion in revenue annually.

One of the key areas of growth for the company is in rising markets worldwide.P&G already owns large market share in countries including China and Russia. In light of the global economic downturn, P&G has announced it will focus its growth strategy on rising markets, opening almost all of its 20 new manufacturing facilities outside its established markets.

Proctor and Gamble looks to bring in new product ideas from outside the company. Connect + Develop has led to the development of 42% of new P&G products in recent years. In 2010, the company said it will launch a "flurry" of new products globally, using innovation to boost sales in fiscal 2010 coming out of the global recession.[

Procter & Gamble is the world's largest producer of household and personal products by revenue, with its products reaching 4 billion people worldwide.including olay,Tide detergent, Pampers diapers, and Gillette razors, that generate over $1 billion in revenue annually.

One of the key areas of growth for the company is in rising markets worldwide.P&G already owns large and growing market share in countries including and Russia. P&G has created products such as Downy Single Rinse, low-water voluChiname detergent. P&G has announced it will focus its growth strategy on emerging markets, opening almost all of its 20 new manufacturing facilities outside its established markets.

Company overview

With $79 billion in sales across the world in fiscal 2010 and 24 brands with $1 billion of sales each. P&G is a global giant for household and personal goods. P&G divides its business into three Global Business Units (GBUs) that develop and produce products and its Corporate group which handles the operation and administration of the company .

Beauty (34.0% of 2010 sales, 38% of 2010 net income):

The Beauty GBU includes all hair and skin products, medications, razors, electric shavers, and batteries. This business unit includes several product lines acquired when the P&G bought consumer products company Gillette in 2005.

Health and Well-Being (18.3% of 2010 sales, 20% of 2010 net income) : The Health and Well-Being GBU provides oral care, feminine health, pharmaceuticals, snacks, coffee, and pet care products. In potato chips, the company's Pringles brand holds a market share of approximately 10%.

Household Care (48.4% of 2010 sales, 50% of 2010 net income):

The Household Care GBU manufactures a wide range of products from laundry detergent to diapers. The company's baby care market share in 2008 was 29%. Developing Markets

P&G has a well-established market presence in developed countries such as the United States and Western Europe and is looking to its presence in emerging markets. CEO Bob McDonald said in 2010 that he wants P&G to grow sales in China and India to reach 1 billion more customers by 2014

In China and Russia, P&G's market share has been always increasing in the past five years as Procter & Gamble has put an increased emphasis on establishing its products in those markets. P&G has created products designed specifically to target developing nations. For example, in many countries consumers wash clothing by hand with limited amounts of water. In response, P&G has launched olay in 2004 because all the people face problem of darkness and pimples.

Research & Development focuses both inside and outside the company

In 2009, P&G spent approximately $2.04 billion on Research & Development, nearly $1 billion more than its closest competitor, Unilever. The two most important factors in P&G's innovation process are its practice of consumer demand research and its "Connect and Develop" R&D structure. First, when entering new markets, P&G sets up in-home visits with consumers in order to fully understand the needs and desires consumers have for household and personal products. This way, P&G gets directly to its customers and is able to cater to their needs. P&G also incorporates consumers' input into the R&D process through its "Connect and Develop" plan. Through "Connect and Develop" P&G has an online interface set up where people can submit product ideas and provide input on topics that P&G places on the web-portal. P&G staff then sort through the ideas and work with the most promising ones. This process is not responsible for all of the R&D that P&G does, but approximately 42% of new products in the last several years were inclined by or originated from "Connect and Develop." Early returns on new products released in 2009 are encouraging. Tide Stain Release, a stain-removing detergent released in July 2009, has garnered 10% market share in the US as of November 2009. The Bounce Dryer Bar, an automatic laundry freshener released in August 2009, has captured 7% of the North American fabric sheet market as of November 2009.

Competition

Procter & Gamble provides the broadest and biggest portfolio of products in the household and personal care industry with 24 billion-dollar brands. P&G generates approximately one and half times the revenue than its closest competitor, Unilever (UL) and possesses a higher operating margin (20.30%) than any of its competitors as well. The company invests about $2 billion a year in R&D, nearly twice that of Unilever, and equal to the combined total of its other major competitors — Avon, Clorox Company (CLX), Colgate-Palmolive Company (CL), Energizer Holdings (ENR), Henkel (HEN-FF), Kimberly-Clark (KMB), L'Oreal, and Reckitt Benckiser.

Clorox is one of P&G's main competitors, specifically the two companies compete directly in the household products market, particularly in household cleaning products. Clorox is known for their trademark Clorox bleach products and other cleaning supplies like Pine-Sol. Although much of the two companies' product catalogs overlap, there are significant differences that prevent Clorox from being in complete, direct competition with P&G.

Kimberly-Clark competes with P&G in the household products market, particularly in tissues, paper towels, diapers, and feminine products. Major K-C brands include Huggies diapers, wishper, Kotex feminine products, Scott paper towels and Kleenex tissues.

Colgate-Palmolive produces a product catalog that most overlaps with P&G's product arrangement relative to other competitors. Colgate is best known for its flagship toothpaste, which had a 44.4% global market share in 2009, but the company also manufactures toothbrushes, dental floss, detergents, soap, and preference care products.

L'Oreal competes with P&G in the beauty products market. L'Oreal's two biggest product categories are skincare and haircare products. Unlike diversified companies like P&G, L'Oreal is purely a beauty and cosmetics company with its product catalog centered around skincare, haircare, make-up, perfume and other beauty products. Import Export Business in India :

1. Import and Export Business in India Talking about exporting, importing and manufacturing business, India goes ahead in all of these areas. Agriculture Industry – India & apos;s financial system is different from others, with farming being its foundation. A few goods that reach out to international audience directly from nations farms are Sugar, Tea, Spices, Wheat, Rice, Tobacco, etc

2. Import and Export Business in IndiaTextile and Apparel Industry - Apparel industry has a unique place in India's export import data bank. After agriculture, textile industry sees India possibly, as the 2nd largest center of exporting to other country.

3. Import and Export Business in India Chemical Industry - Chemical trade makes a most important part of the Indian economy, contributing around 7% of the Indian GDP. India is inextricably connected with major chemical manufacturing, then whether it deals with chemical drugs used in medicines, toiletries and soap, dyes and paints or varied types of pesticides.

4. Import and Export Business in India Home Furnishing goods - Manufacturing of home products like tapestry, curtains, linen, cushions, etc., is not a single country & apo;ss position. India on the other hand leads the field by designing excellent textile items that speak their worth.

5. Import and Export Business in IndiaIndian Jewelry - Indian jewelry region is completely attributed to the earliest Indian society and civilization. India trade jewelry and gems to U.S, UAE, U.K, Hong Kong, Singapore, Belgium, among others nations.Cybex Exim Solution Pvt Ltd.

6. Import and Export Business in IndiaDiscussed above were the some areas where India has shown its guts in export and manufacturing arena. The Indian export industry is enormous and caters to an ample market.

CHAPTER : 4

Policy and Norms of proctor and Gamble in sudan and India for export-import:

4.1 LICENSING OF SUDAN :

Export Regulations a)Exportation in Sudan needs listing of the Exporter in importers/exporters registry. b) Sudan applies the matched system for cataloging of exports, as in the case of imports. c) There are no quantitiative or allowance export restrictions. d) For export no license is required, except when there is no allowance, in which case an export license is issued by the Ministry of Foreign Trade. e) Sudan has no undercover export minimum prices, which are based on the internal cost and world market prices.

Import Regulations sudan does not apply any quantitative import restrictions. All goods can be imported to Sudan except those, which are prohibited by social morals or security considerations.

Import licensing procedures normally, imports do not need an import license

sudan does not apply any other limit measures

Sudan uses the Brussels definition of value (BDV)

Importers must present an Import Declaration, profitable Cerfitificate of Origin, Quarantine License (where necessary).

Improters must pay the required duties, taxes and fees and receive an official discharge order for the goods. Import Agents

Through the Commercial & Industrial Associations whose details have been listed earlier.

- Sudanese Businesemen & Employers partnership - Sudanese Chambers of Industies Association - Union Chamber of Commerce - Chamber of Small Industries & Crafts combination.

LICENSING OF INDIA

Import licences:

General import licences, which must be changed annually, allow any amount of a variety of products from any country to be imported any number of times. But special licences are needed to bring in regulated products such as arms, grenades and explosive, ethyl alcohol, drugs, pesticides, jewellery and precious stone, weights and weighing machines, vintage cars, etc; these too must be renewed annually. Special licences are also needed to import industrial equipment and spare parts; these are issued to industrial firms upon the recommendation of the public influence for industry and are valid for a particular use only.

4.2 PERMISSION OF SUDAN:

Creams (cosmetics) not registered with the bureau of Health

• Counterfeit items

• Potassium Bromides

• Local currency – it is prohibited to import it.

• Cosmetics - it is best to avoid troubles and check with the delegation what may be brought in.

• Photographic equipment – in order to use your camera a permission for photographing needs to be obtained

• in turn carriers like cassettes, CD, books etc. may be subject to a check for offensive material.

• Foreign currency – any amounts need to be declared.

PERMISSION OF INDIA:

• An unlimited amount of foreign currency can be imported into the country. Sums equalling US10000in local currency must be confirmed upon entry. Foreign travellers cannot take more foreign currency with them than the amount they enter India with but sums less than US 10000 normally will not want to be declared.

Prohibited

• Species of wild life counting ivory, musk and animal skins are prohibited from leaving the country.

• Unless taken by a native of the country, Indian currency is particularly prohibited from leaving India.

• products such as beauty care, baby care, hair care are illegal without prior permission.

All Indian currency is prohibited from being imported or exported out from the country by foreign travellers. Indian residents going on or frequent from a holiday overseas can freely take or bring in up to Rs. 7500.

4.3 TAXATION OF P&G IN SUDAN :

Documents Required

Export procedure describes the documents required for exporting from India. Special documents may be required depending on the type of product or destination. Certain export products may require a quality control inspection certificate from the Export going over Agency.

Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. Usually the Shipping Bill is of four types and the major distinction lies with regard to the goods being subject to certain conditions which are mentioned below:

Export duty/ cess Free of duty/ cess Entitlement of duty drawback Entitlement of credit of task under DEPB Scheme Re-export of imported goods

The following are the export documents required for the handing out of the transport Bill:

GR forms (in duplicate) for shipment to all the countries.

4 copies of the packing list mentioning the contents, quantity, gross and net weight of each package.

4 copies of invoices which contains all relevant particulars like number of packages, quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description of goods etc.

Contract, L/ C, Purchase Order of the overseas buyer.

AR4 (both original and duplicate) and invoice.

Inspection/ Examination Certificate. The formats presented for the Shipping Bill are as given below: White Shipping Bill in triplicate for export of duty free of goods.

Green Shipping Bill in quadruplicate for the export of goods which are under claim for duty drawback. Yellow Shipping Bill in triplicate for the export of dutiable goods. Blue Shipping Bill in 7 copies for exports under the DEPB scheme. Note :- For the goods which are cleared by Land Customs, Bill of Export (also of 4 types - white, green, yellow & pink) is required instead of Shipping Bill. Corporate Tax There is no corporate taxation with in the sudan except for foreign bank branches, oil and petrochemical companies. Personal Tax Rates There is no personal tax with in the sudan Social Security There is no social security system with in the sudan. The only compulsory insurance is a medical insurance for the people of the company. Customs & Excise Duties Under the terms of the Gulf Co-operation Council (GCC) regulations (comprising the member states of sudan, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain), a unified customs tariff of 5% of the c.i.f. value applies to the payable imports. All existing taxes and duties on imports with in the GCC portion states have been abolish. V.A.T. There is no VAT in the sudan

Tax Incentives

Free Zones - There are more then 25 Free zone with in the sudan present various benefits such as:

- 100% foreign ownership

- 100% capital and profit repatriation

- no import or export (outside the GCC)

- guarantee of no private or corporate income tax for 15/50 years

- no foreign exchange controls

- no trade barriers or quotas

- liberal labour laws

Offshore Company - For offshore companies there is no taxation at all. They are not allowable to carry out business behavior within the Sudan.

TAXATION OF P&G IN INDIA :

Tax Slabs in India

The declaration of new India tax slabs in the Union Budget 2011-12 brought some relief to the common man. According to the Finance Minister Pranab Mukherjee, the expansion of tax slabs will not only provide large respite to taxpayers but would also trigger savings and their consumption for infrastructure development. He has also declared a tax immunity on `20,000 for investing in tax saving infrastructure bonds, which would be over and above the current limit of ` 1 Lakh on tax discounts under section 80 C.

Finance Minister has also introduced a new Income Tax Slabs for all men, women and senior citizens for the financial year 2011-12. Under the new tax slabs, base slab for tax payers has been increased to Rs. 1.8 lacs from 1.6 lacs. Also the second slab with 10 % income tax range on taxable income up to Rs. 3 lacs has been increased to Rs. 5 lacs.

Income tax slab for FY 2012-2013 In the latest budget declaration on 16th March 2012, the financial rector, Pranab Mukherjee, announced raising the tax exemption limit from the curent level of Rs 1.8 lakh to Rs 2 lakh. For income upto Rs 2 lakh, the tax deduction will now be NIL. For those with an profits between Rs 2-5 lakh the tax deduction would be 10%. For profits between Rs 5-10 lakh the tax range will be 20%. Income above Rs 10 lakh will now come under the 30% tax bracket.

Documents Required Export procedure describes the documents required for exporting from India. Special documents may be required depending on the type of product or target. Certain export products may need a quality control inspection certificate from the Export Inspection Agency. Some food and pharmaceutical product may require a health or sanitary certificate for export.

Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. Usually the delivery Bill is of four types and the major distinction lies with regard to the goods being subject to certain situation which are mentioned below: Export duty/ cess Free of duty/ cess Entitlement of duty drawback Entitlement of credit of duty under DEPB Scheme Re-export of imported goods The following are the export documents required for the processing of the transport Bill: GR forms (in duplicate) for shipment to all the countries. 4 copies of the packing list mention the contents, quantity, crass and net weight of each package.

4 copies of invoices which contains all relevant particulars like number of packages, quantity, unit rate, total f.o.b./ c.i.f. value, correct & full report of goods etc . Contract, L/ C, buy Order of the overseas buyer. AR4 (both original and duplicate) and invoice. Inspection/ Examination permit. Corporate Tax Domestic companies having activities in Mauritius 15%, global companies which are tax resident 3% , global companies which are not tax local are exempt from Income Tax.

Personal Tax Rates 15% Individuals are excepted annually Rs 255,000 and Rs 465,000 varying on number of dependents. Social Security Employers' payment of basic salary up to Rs 975. Employees payment of basic salary up to Rs 459. Custom & Excise Duties Luxury goods can attract up to 100% customs duty. Electronic goods between 15% & 30%. No VAT on basic critical rations. V.A.T. VAT is 15%. Tax Incentives Companies having a Global Business Licence have an automatic tax credit of 80% on the base tax of 15%, hence exit a rate of tax payable of 3%. Domestic tax Law may also recognize as praise all actual distant tax paid.

4.4 Present Trade barriers for import /Export of olay :

Business Risks Faced by Proctor & Gamble for olay in Sudan

INTELLECTUAL PROPERTY

Intellectual property rights for P&G's olay line are basically ownership rights, including copyrights, trademarks, trade secrets, and patents. Though the main ingredients for P&G‘s beauty a care publicly known, the actual manufacturing process is considered a trade secret. Patents and copyrights associated with the P&G's developed/allocation technology and branding are also included in this category. According to the National Trade Estimates Report on Foreign Trade Barriers (2000), Sudan has taken some steps to support its intellectual property protection laws and enforcement. Sudan is a member of the World Trade institute (WTO) and the World Intellectual Property Organization (WIPO), a United Nations agency responsible for promoting intellectual property rights and administering 21 international treaties related to intellectual property. Pursuant to Sudan obligations under the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), Korea passed four acts (patent, utility model, design and trademark) in December of 1995. Even though Sudan demonstrates a commitment to guard of Intellectual Property rights during their connection with

TARIFF BARRIERS

Tariff barriers can affect the profitably of P&G's Sudan investment in the following ways: Costs associated with importing product(s) into a country such as harbor fees, civilization taxes, and quotas on the number of import units for a particular product category Costs of doing business within a country such as rules and regulation of origin Strategies necessary within a company to minimize the impact on the company's operations due to a country's import and export policies. Since trade restrictions, whether tariff or non-tariff are based on product categories such as raw materials, health instruments, and crop, the types of raw materials used in P&G's olay

brand must be considered. According to Customs Cooperation Council's coordinated Commodity Description. Trade Policy Liberalization and Tariff Barriers Traditionally, Sudan has maintained a variety of trade barriers to US exports. Even though the Sudan government has eliminated policies that "encourage anti-import sentiment among consumers", some biases still remain among consumers and bureaucrats (Tradeport, 1998). Sudan has entered into several agreements since 1997 to reduce barriers and increase the liberalization of free trade, but the country's trade policy is not fully liberalized. Even though Sudan is subject to the WTO Government Procurement Agreement (GPA), most US businesses claim that Korean procurement practices are still lacking transparency. Some of the agreements that Sudan has been involved with to reduce barriers are: IMF Program - Sudan has reduced the "number of items subject to adjustment tariffs from 62 to 38.. Additionally, foreign investment application procedures have been updated due to changes in regulatory (Tradeport, 1998). Uruguay Round negotiations - Establishment of tariff-rate quotas with minimum access to a previously closed market. Tariff rates, within the quota, are to be maintained at minimum or zero levels (Tradeport, 1998). With the implementation of the Uruguay Round negotiations, costs for P&G to import paper- based products to manufacture and sell/export to/from Sudan will be significantly reduced. P&G's recent acquisition of a majority interest in the Sudan company Ssangyong Paper Company will also help mitigate the tariff barrier risks associated with the import of raw materials needed for P&G's manufacturing operations in Sudan. (P&G, 2000). Sudan maintains a system of quotas and tariff rate quotas. The average tariff rate in 1999 was 7.9%. Despite the phasing out of tariffs on many products, the following costs related to Sudan foreign trade policy are unlikely to be reduced or eliminated: civilization valuation - Dutiable "value of imported goods is the cost, insurance, and freight (C.I.F.) price at the time of import declaration." Value Added Tax (VAT)- There is a flat 10% VAT on all "imports and domestically manufactured goods." Special excise tax - Tax of 10%-20% is "also levied on the import of certain luxury items and durable consumer goods". Products regulated for health and safety reasons (such as pharmaceuticals, medical devices, and cosmetics) typically require additional testing or certification from the relevant ministries before they can be sold in Sudan, resulting in considerable delays and increasing costs. Restrictions on access to offshore funding (including offshore borrowing, intra-company transfers and inter-company loans) continue to be troublesome. Foreign equity participation limits, licensing requirements, and other regulatory restrictions limit foreign direct investment in sectors technically open to foreigners. Investment restrictions - Foreign firms suffer restrictions in the professional services sectors.

CHAPTER: 5

5.1 Potential for import -export in India Market:

Procter & Gamble plans to manufacture products for the Indian market locally, moving away from its decade-old strategy of importing a substantial proportion of goods, as the world's largest customer goods maker seeks to follow the cost structure of Hindustan Unilever Ltd (HUL) At present, a substantial chunk of its goods together with skincare brand Olay and baby diaper brand Pampers are imported into the Indian market, which is an costly plan, according to the company.

More local production will result in P&G making products at low cost, that could translate into reasonable products from the company, which has so far focused primarily on best and mass best products.

You should suppose a large part of production close by in the long term, so that most of them are 'made in India' products, given the rising size and scale of our business," said Tapan Buch, chief financial officer at P&G Hygiene and Healthcare Ltd. Buch did not give the proportion of products now being made outside India. In early 2000, P&G had started shifting production to low cost South East Asian countries from the US, closer to expansion markets such as China and India.

In a board meeting during first week of November, P&G Home Products, the unlisted unit the Cincinnati based consumer produce maker, approved an investment plan of Rs 360 crore in its unlisted arm. Earlier, in May, the company had approved an venture of Rs 345 crore, and this combined fund infusion of Rs 700 crore will be P&G's biggest investment in India in a single year.

Buch said the money will mainly go into sprucing up its existing multi-product manufacturing facility so that it can execute its strategy of success out to 'more consumers, in more parts of India, additional completely.'

"The funds will be utilized to expand our manufacturing base, primarily at Bhopal in Madhya Pradesh. The funds will be broad based in terms of categories and will purely depend on how capital intensive each segment is at the moment," Buch said. "For example, we could invest more on baby care goods as a main part of it is imported."

An industry managerial said P&G is scouting for land in Hyderabad and Chennai to set up two factories, but the company did not confirm it. usually P&G in India have been focusing on quality brands Head & Shoulders, Ariel and Pantene, which are its cash cow and generates over 60% of its total revenues.

But now, P&G is planning to target clients across the pyramid, with goods in laundry, hair and skin care across several pricepoints.

It has doubled its allocation reach over the past couple of years and now has a direct reach of 1.3 million outlets, against HUL's direct reach of 1.6 million outlets. "Although India is only a small part of P&G's current portfolio, they are very focused on becoming more present in the promising markets.

India is a key main concern for it as it continues to develop well—a rising population with rising incomes," said Ali Dibadj, senior analyst from US brokerage firm Sanford Bernstein.

While increasing markets account for just 30% of global sales for Procter&Gamble, arch rival Unilever earns more than half of its revenues from India, Brazil, Indonesia, South Africa, China and Vietnam.

Procter&Gamble Global Chairman & CEO Robert McDonald's stated goal is to garner 800 million new consumers by 2015, most of them from Asia and Africa.

The target consumer in these markets is those earning less than Rs 100, or $2, a day. P&G has three subsidiaries in India. Two of its listed companies are P&G Health & Hygiene, which markets feminine hygiene brand Whisper, and Vicks anti-cold balm and lozenges, and Gillette India maker of razors and other chip products.

Its largest secondary, P&G Home Products is not scheduled but is present in big categories such as laundry, hair care and skin care, which together is Rs 18,000 crore market. This unlisted firm is also the vehicle for new products and innovations.

In the board meet, P&Gamble Home Products decided to allot 4.8 million shares to Procter & Gamble Overseas India BV, a asset company of the US parent, at Rs 750 each, aggregating to Rs 360 crore.

This will increase the company's total number of shares to 24.2 million and value it at Rs 1822 crore. With annual revenues of around Rs 5,000 core, P&G Home Products is over two times as large as Procter & Gamble's listed subsidiaries.

5.2 Business Opportunities in future:

Bruce Brown is the Chief Technology Officer at P&G, responsible for the Company‘s improvement program, its $2 billion annual investment in R&D, and over 8,000 global R&D employees. He also directly manages the R&D community Function work, R&D Corporate Governance Systems, and New Technology stand expansion work. In addition, he oversees the Company‘s Corporate improvement Fund and Future Works organizations, both of which lead to creation of new business opportunities and capabilities for the future.

Bruce has over three decades of business building practice with P&G in both developed and developing markets. He has led teams in the Company‘s Baby Care, Feminine Care, and Beauty Care organizations, and lived and worked in the United States, Germany, and Japan.

P&G is a international company that provides buyer products in the areas of pharmaceuticals, cleaning supplies, personal care, and pet supplies.

The Scorecard Analysis Tool is the latest factor of P&G‘s Supply Chain Environmental Sustainability Scorecard. It was designed to improve the environmental footprint of P&G‘s supply chain, fuel innovation, and encourage suppliers to make ecological improvements in their own deliver manacles. P&G intends to make the Scorecard freely obtainable for use by any company.

The Scorecard actions absolute or intensity improvements in nine key metrics including energy use, water use, waste disposal, and greenhouse gas emissions on a year-to-year basis. It also assesses P&G‘s external business partners‘ sustainability advance ideas and promotes collaboration. Its outcome influence a supplier‘s rating, which can contact future business opportunities with P&G.

The Excel based tool, launched last year, enables companies to measure and interpret key environmental sustainability metrics across their supply chains and identify development as well as opportunities for improvement. P&G estimates that the scorecard has led to nearly $1 billion in bottom-line prepared savings from reductions in energy, water, waste, and CO2 at its services over the past ten years.

By providing this tool for free, P&G hopes to enable other companies to more with determination focus on humanizing their ecological footstep without investing in the development of analysis software.

CONCLUSION It is concluded that from the view point of both the country it is considered that there are lots of business opportunities prevailing in both the countries but there is a requirement to explore the opportunities on both the side.

 P&G is an international company which serves both the countries by providing various FMCG Product.

 Sudan helps india by importing various product.

 India is having a manpower through which it boosts the industry as well as economic position of country by its productivities.

P&G will improve representation through a strategy of targeted development, recruiting and retention.

We found that sudan people are belongs to the category of the lower middle income so They will have to great opportunities in the sudan country related the sales of the beauty product if

the P&G company want to increased the sales turnover in the sudan country so they will have to done reduced the sales price of the beauty product in the sudan.

SUGGESTION

 P&G should improve the advertise campaign in favor of the Sudan.

 They should concentrate more on the culture of different countries.

 They need an effective management staff and the group of people to improve the relationship management in P&G should have to provide better information so that customer‘s trust and interest increase towards the FMCG product.

Automobile (Four Wheeler Segment)

Industry in Sudan

PART – II INDUSTRY / SECTOR / COMPANY / PRODUCT/ SERVICE/ NEW VENTURE SPECIFIC STUDY

INTRODUCTION OF DAL GROUP :- Dal Group Established in 1951 as a single company under the name Sayer & Colley, the DAL Group has since developed into the largest and most diversified privately- owned group of companies in Sudan. Founded on strong, clear business principles and an ethical philosophy, the DAL Group today consists of independent companies operating in the consumer, industrial, Automobile, agricultural and property development sectors, each playing a leading role in its own field. Our business activities currently include: * Manufacturing * franchise dealership services * property development * contracting and services * sales, marketing and distribution of locally produced and imported brands * large-scale farming. DAL has been operational in Dubai since 2005 following the transfer of its London office functions to the United Arab Emirates. With new offices and a warehouse under construction in the Dubai Airport Free Zone, the Dubai Office will play an increasingly important role in procurement, logistics and other services for the Group as well as providing a presence in this important regional centre. Dal Group are committed to growth in both existing and new businesses, while Dal Group aim is to produce quality of goods and services of all sector in sudan. We recognize the central role of our co-workers will play in our future success and actively seek to provide the opportunity to employers with a working environment that encourages diversity, stimulates innovation, teamwork, learning and improvement and rewards individual performance solely on merit.

Our people People are our most valuable asset and customers are king of the group. we recognize the central role they play in the Group‘s success. We aim to attract, develop, recognize and retain the finest talent available in our people - both locally and internationally. We provide employees with world class learning, training and development opportunities and believe the benefits of this investment are passed on to our customers and partners. Partner of choice DAL Group aims to be the partner of choice for organizations looking to expand into Sudan. Our operational capabilities, excellent reputation, deep understanding of Sudanese culture, work environment and company environment, and broad geographic coverage of the country make us unique in Sudan. We seek to build long lasting, mutually beneficial relationships with all of our partners. All partners are take decision of business‘ international brands as diverse as Caterpillar, Mitsubishi Motors, KIA Motors, Mercedes-Benz, JVC, The Coca-Cola Company, Unilever and GlaxoSmithKline have chosen DAL Group as their partner of choice for good reason. Quality and excellence DAL Group companies demand is always high because we provides valuable goods and services. We pioneered a number of international quality and safety standards in Sudan, including ISO mark product and HACCP, and have set the standard for sourcing, manufacturing, marketing & distribution and customer experience. Corporate responsibility Our commitment to social, economic and environmental responsibility is fundamental to our business. We measure our success as much through our actions and conduct as through the quality of our products and services. We are on a constant journey to promote corporate responsibility in Sudan. We always find a new strategy for achieving goal of dal group.

DAL at a glance DAL Group is the largest and most diversified conglomerate in Sudan. We produce, distribute and market a range of high quality products and services – from freshly milled flour and dairy products through to Mercedes-Benz cars and Caterpillar earth moving equipment. We are proud to be an integral part of so many people‘s daily lives in Sudan. Here are some key facts about the Group:  We operate ten businesses across five sectors (food, agriculture, engineering, medical, property development), and we run a not-for-profit school.  The DAL family comprises more than 5,500 employees are work from 26 different nationalities.  We are equal opportunities given to employer, have no political affiliation, and are against corruption, mal practices.  We have a presence in seven countries - China, Malaysia, UAE, Saudi Arabia, Djibouti, Ethiopia and the UK.  The Group represents 38 international brands in Sudan, including some of the world‘s best known brands such as Caterpillar, Mitsubishi Motors, Kia Motors, Mercedes-Benz, JVC, The Coca-Cola Company, Unilever and GlaxoSmithKline.  Our milling operation is one of the largest in the region with a capacity of milling more than 1m tones per year.

 We have trained more than 60,000 people across the country in baking and bread making as part of our corporate responsibility activities. we provide training to our employees.  Every second more than 20 of our drinks products are consumed.

 We fill 200,000 yogurt cups daily.  We have a dairy herd of 2,000 Holstein/Friesian cows, chosen specially for their high milk production.  We distribute several hundred pharmaceutical and consumer healthcare products.

 Our production capacity for liquid oxygen and nitrogen is 2,000m3 per hour.  We are the only full range supplier for power generation, construction and mining equipment, agricultural equipment, material handling, aggregates and compressed air in Sudan.

 More than 2,000 of our construction machinery and generators are distributed over an area of one million square miles.

 We cover 90% of Sudan, including 28 cities, via road, rail and barge – with a commercial fleet comprising more than 700 vehicles, 300 rail wagons, and 100 distribution warehouses.  We also provided school facilities. and Over 400 students representing over 30 nationalities and is the only school offering International Baccalaureate (IB) in Sudan.

DAL Motors DAL Motors since established in 1994 has grown to be the leading automotive business in Sudan. It currently represents exclusively the brands of Mitsubishi Motors, Mercedes-Benz, KIA within its passenger car range and Mitsubishi-Fuso Truck & Bus, Mercedes Benz Trucks, Unimog, Evobus, Temsa Buses and FAW Truck & Bus within its Commercial Vehicle range.

Building on its initial success obtained with Mitsubishi Motors and Mitsubishi Fuso it has added the Mercedes- Benz range of products to the Company in 2006 and this year 2009 saw that range further enhanced with the appointment of KIA Motors a leading and well established Korean brand and FAW the largest vehicle manufacturer of China. To support our expanding product range and our customer base DAL Motors has developed a mature network of service, parts and maintenance locations throughout the country which provide mobile service workshop for our territories.

We have the largest stock of centrally controlled parts back up to deliver customer satisfaction in the demanding markets of Car and Truck and whether it is for the private owner driver or we provides 24 hours services to our custmors.

Dal motors covers Tyres and Batteries of international brands of Bridgestone and Exide. Recently JVC and Bosch are added to our accessories and electronics sectors. Dal Motors operates in 20 Different location with above 500 staff. In which above 350 are dedicated to services & Parts Support Back up. We provides customer satisfactions team for our customers. We believes and ensures keep closely in touch with our customers problems. and fulfill the needs of customers and react swiftly to their feedback. Dal Motoers will continue to develop having no rival partnership to deliver the services to customers. Dal Motors goals to continue improving and developing our vision ―To be the leading company in the automobile market of Sudan by providing mobility and transport services for customers and goods‖ Profile

DAL Motors is the exclusive dealer for a range of international commercial and passenger vehicle brands in Sudan. The company was established in 1994 with its appointment as sole distributor for Mitsubishi Motors. The success of this initiative lead to DAL Motors being selected as the distributor for a range of further vehicle brands. Dal motors unequalled vehicle partnerships are built on delivering excellent to both our partners and our customers. We provides most developed and mature network of services, accessories, parts and maintenance locations in sudan. Dal motors offering full range of support services to customers. We have a centralized parts management operation so handles a heavy and solid volume of transactions.

Roles of Dal Motors  Used car sales.  Accessories, car entertainment systems, tyres and batteries all are provides by the global brands Bridgestone, Exide.

 A network of fully equipped, well stocked service and parts workshops running in sudan.

 A mobile service and repair team also provided by the service department.  To provide a high tech body repair shop.  A dedicated customer care team to follow up enquiries and provide after-sales service.  To provide fully equipped workshop facilities are strategically located alongside mobile service units offering the full range of support services.  To meet the needs and ambitions of the Sudanese automobiles industry.  To recovered vehicles are transported safely to the nearest service centre of dal motors.  Structure, Functions and Business Activities of selected Industry / Sector / Company

Organization Structure of Dal Motors

Function Our people

Our people make us what we are Without the determination, skill and perseverance of DAL‘s people, the astonishing Sudanese success story that is DAL motors could never have taken place. Dal Group includes over 5,500 employees as large family .they all are working together across a different sectors and activities. Dal group provides equal opportunities to all employers. As well as they also provides good and prudential environment to employees. Dal Motors provides stimulates innovation, team work. Motivation, training, improvement to employees self, and given rewards for individuals performance solely on merit. Dal motors are continuously striving to improve Human Resources (HR) effectiveness within the Group to combine delivery of best practices with important daily HR operations. Individual companies look after their own day to day operations, supported by a number of group wide strategic initiatives. These include:

 Strategic Workforce Planning – ensuring the organization has access to the necessary resources to fulfill the strategic business objectives. This includes identifying and monitoring key workforce information and modeling future requirements, the results of which inform our other initiatives.  Talent Management – it includes recruitment and selection of employees, succession planning, and our graduate and future leaders‘ programmers. DAL Motors practices open recruitment based on merit. Jobs are advertised internally and also on our dedicated careers website.  Learning and Development (L&D) – improving the knowledge, skills and attitudes of employees through a range of activities. And learn specialist courses on the job training. Dal motors has investing employees professional development because they ensure its employee become a professional for their work.  Performance Management and Rewards – To provides and maintaining performance management and appraisal system that motivated to employees for their performance driven culture, with rewards based on employees work.  Policies and Procedures – ensuring a single set of best practice policies and procedures exist across the Group.

 Dal motors believe in investing in youth of sudan. And so many activities in sudan including given opportunities for graduates, universities and vocational education student. Recently dal group launched graduate trainee scheme for new recruitment.

Corporate responsibility :- DAL Motors believes in contributing to a range of community activities through sponsoring and participating in public activities, education programmers, road safety enhancement and environmental protection awareness. Dal motors believes it has duty to promote responsible driving in sudan. Dal motors DAL Motors has initiated a large scale road safety campaign in partnership with the Traffic Authority. The campaign promotes simple measures for improving road safety such as the wearing of seatbelts, and not talking on mobile phones behind the wheel through a variety of channels: the media, driving tests, street theatre and workshops. Brands DAL Motors is a part of the DAL group. The DAL group is the biggest company in SUDAN. Under the group :-  Mitshubishi  Mercedes-Benz Mitsubishi Motors Mercedes – Benz

Interior

Insurance & registration

Insurance DAL Motors‘ in-house group can give a solution to all your insurance needs for passenger cars. We suggest a full range of products and services including inclusive coverage for vehicles, drivers and passengers. Rates differ depending on the type and make of vehicle. Rates are very aggressive and will be explained by our Sales consultant at our showrooms.

Registration Our registration service is repeatedly offered at no additional cost to our passenger car and SUV customers, and to other customers on request. Our committed registration team will ensure the process is completed as swiftly and smoothly as possible, within 48 hours of purchasing the vehicle. This service is also available for registration renewal. Vehicle servicing Our four state-of-the-art service workshops can provide somewhere to stay up to 80 vehicles per day for service and repair effort. This service is complete to the entire vehicle brand supplied by DAL Motors and involve all from a speedy schedule repair to occupied automatic, bodywork, electrical and air-conditioning repairs. The hi-tech bays are staff by professionally-trained and skilled technicians operational in teams each manages by a qualified engineer.Quality is guaranteed by an superior quality management system that involves computerized past records for every vehicle. All maintenance are final-tested by professional engineers. Mobile field service teams make available authentic field-support and can take out on the spot protection to keep vehicles in good organization order. The teams are prepared with extraordinary analytical tools and advanced communiqué facilities. Parts & accessories Our parts department present genuine parts for all the vehicle‘s supplied for DAL Motors, and are the only ‗safe source‘ for authentic vehicle equipment. The department serves all DAL Motors workshops, showrooms and sales center, and our especially preferred handful of parts distributors. All of our direct sales centers are connected to central systems that enable our engineers to verify parts accessibility real time all of our location. All parts take the manufacturer‘s guarantee.

All parts communication is monitor by a automated storehouse management system, with health and protection a key precedence. Up-to-date record examination systems are used to continue most favorable stock-levels, and make certain high superiority vehicle service. DAL Motors can also free part deliverance for task force customers who have contract for parts or repair supply, with special instructions accessible to customers with customs duty exception. Our devoted navy team is also on hand to appointment fleet customers to supply mechanical maintain and recommendation. Body Repair Shop Our committed body shop, based in Sudan, Khartoum, is extremely equipped to carry out all body maintenance to a standard and quality comparable to the manufacturer‘s industrial unit and is staffed by absolutely skilled, trained specialist. The body shop is approved by Mitsubishi Motors to carry out all body maintenance. Warranty DAL Motors offers a warranty as an vital part of the sale of each new vehicle, whether this is a passenger car, SUV or truck. The extent and conditions of the warranty depend on the make and model of vehicle that you purchase – our Sales consultant will be delighted to provide you with the details. During the warranty period, if the vehicle is diagnose with a problem that is not due to customer exploitation or inattention, then the repair expenses will be covered by the warranty. Guidelines for items and repairs covered under warranty are listed in the service booklet, which is providing at the time of vehicle purchase. Customer support

Despite being the major automotive company in Sudan, DAL Motors is also a supportive business committed to contribution the best value and service to all of our customers. We have a devoted customer care team dealing with customer queries, and getting in touch with customers (via email, telephone and face to face) for feedback on vehicle operations, after-service quality checks and to guarantee customer satisfaction.

[3] Comparative Position of selected Industry / Sector / Specific Company / Product with India and Gujarat

DAL Motors is the exclusive distributor for a range of global commercial and passenger vehicle brands in Sudan. The company was established in 1994 with its appointment as sole distributor for Mitsubishi Motors. The success of this inventiveness lead to DAL Motors being selected as the distributor for a range of additional vehicle brands such as Mercedes-Benz, KIA Motors and Fuso. These partnerships have covered the way for DAL Motors to become the country‘s most important automotive business.

German luxury car brand Mercedes Benz had the first-mover advantage when it started working in India since 1995. But competition changed all that with Merc bringing up the rear out its leadership position to German equivalent BMW last year. This was when BMW overtook Mercedes as the top luxury carmaker in the Indian market with sales of 3,619 units. BMW's market share crossed 40% against 9% in 2006. Global hold back did have a subsidiary impact but it gave us the comfort of making necessary adjustment at the wholesale level . It has been transition time, as we changed 30% of our network. That was the period when the availability of our 'E' class (Rs 39 lakh to Rs 50 lakh) series was limited. At the global level, we did not have much to launch. But 2009 is behind. We are exceptionally bullish this year as we are seeing 70% growth already, thanks to record sales.

 Sudan - India Relations Sudan and India are joint by strong bonds of common heritage and unique similarities. Relation between india and sudan have warm and cordial. And both country have diversities and demographic wealth. These relations have long history of contacts.

Exchange of high-level delegations between the two countries have been pleasing place since then, together with the visit to Sudan by the late Indian President Fakhuruddin Ali Ahmed in 1975, former president Numeri 1974 journey to India, and the visits of the then Sudanese Foreign Minister Ali Osmans Mohammad Taha to New Delhi in 1996 and by Dr. Mustafa Osman Ismail, the minister of outside relations in 1997, as the manager of the Sudanese side to the meeting of the Indo-Sudanese Joint Ministerial Commission.

The most recent of these associates was the important visit by H.E. Mr Ali Osman Mohammed Taha, first vice-president of the Sudan to India in July 2002, accompany by a high-level allocation that included H.E. Dr. Mustafa Osman Ismail, the minister of Foreign Affairs, Dr. Majzoub AL Khalifa, minister of Agriculture and Forestry and Professort Alzubair Bashir Taha, Minister of Science and Technology. Dr. Najma Heptullah, Deputy Chairperson of Rajya Sabha led a high-level Parliamentary assignment to Sudan. moreover, many visits to both Sudan and India are at this time performed by many visitors, experts, businessmen and tourists as well as official delegations on behalf of various fields of human attempt. India and Sudan have always mutual ordinary positions. They also embrace indistinguishable views on various regional and international developments. Like in the past, when the two countries united hands to fight imposing authority and the hateful apartheid system, Sudan and India are also attentive at present in defending the interests of developing countries in the political and economic fields. They both believe in a multi-polar world with a fair and equitable system of global trade and business. They hold confidently to the need for more and more unity within the ranks

of developing countries. In sudan so many opportunities for india companies in railways, roads, automobiles, power generation, telecommunications, water treatment, human resource development, agriculture, pharmaceuticals and IT. Import demand is rolling as modernization moves into high gear. The Indian automobile industry has come in the first car run on the roads of Bombay in 1898. The early years of the industry were characterized by hostile government policies. Now a day‘s large difference in automobiles sectors. In 1991 government issues new liberalization policies. The liberalization policies had a beneficial impact on the Indian economy and the automobile industry in particular.

The automobile industry is one of the key sectors of the economy in terms of the employment opportunities that offers. Industry directly employs approx 0.2 million people and indirectly employs approx 10 million people. In Indian economy directly employs approx 0.25 million people. The prospects of the industry also have a manner on the auto-component industry.

All is not well with the automobile industry the world over currently with the decelerate that has absorbed most of the major economies of the world. The incident of 9/11 have also contributed to an already not a hundred percent global economy. The gap between the manufacturing capacity volume and the assembly volume is increasing by the day and has the anxious the manufacturers. This state of affairs has triggered a lot of aggressive competition and consolidation in the industry. Cost reduction initiatives have come to be the in object in the global industry today. Towards this direction, many automobile factories are being closed down. The Indian automobile industry is a harsh contrast to the global industry due to many of the characteristics, which are peculiar to India. The Indian automobile industry is very small in comparison to the global industry. Except for two wheelers and tractors segments, the Indian industry cannot boast of big volumes of global numbers.

Present Position and Trend of Business (import / export) with India / Gujarat during last 3 to 5 years

Exports from India

India's automobile exports have grown constantly and reached $4.5 billion in 2009,

4] Policies and Norms of selected country for selected Industry/company for import / export including licensing / permission, taxation etc. Sudan's Foreign Policy :- World and Regional Organizations of Which Sudan is a affiliate: Sudan is a affiliate state of the United Nations (UN), the Arab League (AL), the African Union (AU), the Organization of Islamic convention (OIC), the Sahel and Sahara Alliance, the Inter-Governmental Association for enlargement and Desertification (IGADD), the Economic Commission for East and South Africa States (COMESA) and the Greater Arab Free Trade Area and others. Sudan maintains political affairs with all world states to progress its interests reassert its geographic and cultural uniqueness and movement and give to regional and world peace and constancy. The Mainstay of Sudan‘s Foreign Policy Sudan believes in a policy of non-interference in the internal interaction of other countries, their independence in global political affairs, the right of nations and people to relations based on common interest and mutual benefit. It also supports an

international order that promotes justice, equality, human inter-dependence, sustainable development and one that strengthens and encourages neighborly relations. Given its dual Africa-Arab heritage, and in view of its strategic geographical position as the point of confluence for the two identities, Sudan is compelled to play an active role in the global and regional communities beyond the instant framework of safeguarding its interests, principles and obligation to conventions it has ratified. Foreign Ministry and Departments. The Sudanese Foreign Ministry is a key ministry that enables Sudan to play its role at the international stage through its embassies and consulates abroad that encourage National goals and the well being of Sudanese citizens in the Diaspora. Sudan has positively struggled with internal troubles; South, Darfur and the East. The international media however has tended to emboss the facts, thus compounding the troubles and making the search for harmony intangible. The world has been divided between those who recognize Sudan‘s situation fully and those who request to develop the position and spread the country, a movement led by several Human Rights Organizations. in spite of the overpowering panic, Sudanese international relations has patiently and thoroughly protected against this offensive and has tried to set the record straight. Tariff and non-tariff issues :- In 1992, Sudan abolished most export and import licensing requirements. It has also eliminated most export taxes although some have been reintroduced from May 2009 (especially in raw materials) following the country‘s poor economic situation. Importers must present an import statement, commercial invoice certificate of origin, quarantine license (where necessary), Sudanese Standards and Metrology organization (SSMO) requirements or other documents for exact type of goods, and completion of bank paperwork. Importers must pay the required duties, taxes and fees and receive an official discharge for the goods. Foreign Exchange Regulations :- The draconian "Dealing in Foreign Exchange Control Act‖, 1979 (introduced when Sudan had no reserves) has specified way to a structure free of limitations on payments and transfers for current international transactions. though, intensified US sanctions since 2007 inhibit dollar denominated transactions at present.

Visitors can take in any amount of foreign currency. Private financial transfer firms such as UAE Exchange can presently dispatch up to US$ 3,000 per transaction. In practice, repatriation of foreign capital and profits (dividends) requires the authorization of the Central Bank and tax clearance certificates. Sudan Trade, Exports and Imports Agreements :- Sudan apply for WTO membership in 1995 and submitted its memorandum on the Foreign Trade Regime in 1999. Although the nation is yet to be inducted as a WTO member, it however benefits from trade-related technical maintain programs offered by the WTO. The Sudanese Commission has also conducted numerous informal bilateral trade agreements with a number of member states of the WTO, including the USA, Australia, Canada and Brazil. Additionally, to develop the status of Sudan‘s trade, the government has formed several trade reforms, including the establishment of state subsidizes to influence the prices of trade commodities. The government also introduced a new currency in 2007, the Sudanese Pound, with an initial exchange rate of US$1 equals 2 Sudanese Pounds. Despite these efforts, accomplishment of these reforms of the last few years has been slow, subject to repeated delays. Export Regulations a) Exportation in Sudan requirements register of the Exporter in importers/exporters registry. b) Sudan applies the corresponding structure for arrangement of exports, as in the case of imports. Export rates are ad-valorem, the export sense of duty is 10% on cotton and gum Arabic, while on other products it is 5%. There is also a 1%-2% quay duty for Sudan harbor business and 1% for the common Aviation. c) There are no quantitative or proportion export limitations. d) No license is compulsory for export, except when there is no payment, in which case an export license is issue by the Ministry of of Foreign Trade and the Central Bank, and the salve agreement requirements to be embossed by the Ministry of Foreign Trade. e) Sudan has no investigative export minimum prices, which are based on the domestic cost and world marketplace prices. There are no voluntary export limitations and no arranged market arrangements. Import Regulations

a) Sudan does not affect any quantitative import limitations. All commodities can be imported to Sudan excepting those, which are forbidden by social morals or security consideration. These goods are state of mind and wines, narcotics, gambling equipments, arms and ammunitions. b) Import licensing procedures generally, imports do not need an import license. c) sudan does not relate any other boundary procedures d) Importers must in attendance an Import announcement, Commercial Certificate of Origin, Quarantine License (where necessary), Sudanese standard and Metrology Organization (SSMO) necessities or other papers for specific type of goods and total Bank of official procedure. f) Importers be obliged to pay the compulsory duties, taxes and fees and accept an official discharge order for the goods. g) Duties, taxes and fees are billed before release the goods excluding for direct delivery commodities. h) Sudan has no obligatory Pre-shipment examination. Importers are advise to have Pre-shipment examination Certificate issue by global Cargo inspector register by SSMO. Double check inspection might be conduct by the SSMO.

 Policies and Norms of India for Import or export to the selected country including licensing / permission, taxation etc IMPORT TARIFF  The occurrence of import tariff will be fixed in a manner so as to facilitate development of manufacturing capabilities as opposed to mere assemblage without giving too much protection; guarantee balanced transition to open trade; promote increased competition in the market and expand purchase options to the Indian customer.  The Government will evaluation the automotive tariff structure periodically to encourage demand, promote the growth of the industry and stop India from becoming a removal ground for international rejects.  In admiration of items with bound rates viz. Buses, Trucks, Tractors, CBUs and Auto components, Government will give enough accommodation to original industry to attain global standards.

 In consonance with Auto Policy objectives, in respect of unbound items i.e., Motor Cars, MUVs, Motorcycles, Mopeds, Scooters and Auto Rickshaws, the import tariff shall be so designed as to give maximum impetus to manufacturing in the country without extending undue protection to domestic industry.  The situation for import of new Completely Built Units (CBUs), will be as per Public Notice issued by the Director General Foreign Trade (DGFT) having view to environment and safety regulations.  Used vehicles imported into the country would have to meet CMVR, environmental requirements as per Public Notice issued by DGFT laying down specific standards and other criteria for such imports.  Proper measures including challenging discarding duties will be put in place to check removal and unfair trade practices.  EXCISE DUTY Motor Cars The ownership of cars in India is just 6 per thousand of population as against 500 in the developed economies. The giving of the auto sector to the GDP and employment is likewise low. Expansion of local demand holds immense potential and is essential to install scale volumes of production. Domestic demand mostly devolves around small cars not exceeding 3.80 meters in length. Small cars connect less of road space and save on fuel. These confine more than 85% of the market. India can build export potential and become an Asian hub for export of small cars. The growth of this sector needs to be spurred. Multi Utility Vehicles MUVs are an important mode of economical accumulation transport in rural India due to poor road infrastructure and lack of good State transport system. They are the first vehicle purchased by a number of farmers, traders, small businessmen in rural and semi-urban markets. The Government will Endeavour to give fiscal incentives to this sector. Commercial Vehicles Currently excise duty on commercial vehicles sold by a manufacturer whether as a structure or with a complete body is 16%. However, no duty is levied on the body that is built by an autonomous body builder on framework bought from a manufacturer. This exception inveigles production of the absolute trucks and buses

by the framework manufacturer and is injurious to safety standards. The duty required on the construction of bodies by an autonomous body builder, small or organized sector shall be equal to that of bodies built by a frame manufacturer. The Government will encourage manufacture of bus body on bus framework measured for better passenger reduce instead of truck chassis as is the current practice. The Government will persuade the use of multi-axle vehicles for carriage of goods as they because reduced environmental pollution and lesser put on and tear on road surface in evaluation to the existing 2-axle trucks. TAXATION Sudan, as of 2005, had a standard corporate tax rate of 35%. However, the rates various depending upon the type of company. Banks, investment and insurance, companies were subject to the standard rate. Manufacturing firms were subject to a 10% rate, while agricultural and dairy companies were excepted. Unless they fell into the aforesaid business classifications, joint stock companies and limited liability companies were subject to tax rates of 15% and 35%, respectively. Capital gains consequent from the sale of land and buildings were subject to a tax rate of 5%. Capital gains from the sale of automobiles were taxed at 2.5%. Other capital gains and dividends were not calculated in taxed. Other taxes included an income tax on salaries, various spending and production taxes, stamp duties, various fees and charges, including a development tax, and the Zakat, an annual religious tax of 2.5% on entities in service in Sudan. The personal income tax was first obligatory in July 1964, and an income tax on Sudanese working abroad was added later. Income from property, previously exempt from any tax, became subject to the business profits tax on 1 January 1964. There was also a value-added tax (VAT) of 10%. CUSTOMS AND DUTIES The Sudan has a moderate trade policy, although it restricts imports of some goods measured competitive with those produced locally. The customs tariff applies to goods from all countries except Egypt and Jordan, which receive privileged action. Most tariff rates are ad valorem and range from zero to 1,100%. Export duty is 10% on cotton and gum Arabic and 5% for all other items. Specific rates are applied mostly to alcoholic beverages and tobacco. Commodities not included in the levy

schedule are dutiable at 40% ad valorem. Also levied are royalties, a consumption tax of 10%, and a 10% defense tax. An additional tax of 5–150% is imposed on a list of 122 items. The average tariff rate in 1999, as determined by the IMF, was 19.3%.

[5] Potential for import / export in India / Gujarat Market

 Business Opportunities in future

Challenges faced by Indian Automotive Industry in the new age :- The Indian automotive industry has been in face of new challenges due to the speedy changes taking place during the last decade. This article discusses those challenges and initiative taken by the government to overcome them. The Indian auto industry is changing rapidly. During the last decade, many international auto manufacturers, either by themselves or in partnership with Indian companies, have ongoing manufacturing activities in India. The auxiliary industries have also grown in tandem. The quality of production in small- and medium-scale industries has enhanced to such a degree that they started exporting products to international manufacturers. The major advance of recent years is the presentation of "Nano" by Tata Motors during the auto expo 2007. This has received worldwide consideration and proved that India can not only design an automobile of international standards but also implement the project at a much lower cost through innovative choice of components, materials, engine design etc.

These developments in the auto sector have certain new confidence to everyone associated to the auto industry and specifically to the government which resulted in the declaration of the Auto Policy 2006-2016 by the Ministry of Heavy Industries. According to the Auto Policy, the Indian auto sector is probable to grow to US$ 216 billion by 2016 and add 2.5 million new jobs to the economy. Every year two to three million people are projected to purchase new vehicles. Several million vehicles and components are expected to be exported to both developed and developing nations. To attain these goals, it is important that the present GDP growth rate, which is more than 8 per cent, continues to stay at the same level for the next 8-10 years. The government is also giving some concession to the auto industry. To understand the

above growth predictions, it is important to overcome challenges a range of the industry is facing currently. Two of the foremost challenges are the increase cost of fuel and the paucity of highly skilled manpower. Conclusions and Suggestions  From all the information provided we come to conclusion that the Indian Automobile industry should have to go for the export to the Sudan country in order to have more number of opportunities.  The DAL Motors having its attendance over the Indian market through its distribution of various cars like Mercedes Benz, Mitsubishi cars which includes Pajero, landlover and a range of other models.  The company should have to go for the other cars also as India is having a market for the Automobile and is been increasing on an average of around 20% in present.  The Indian Companies should also go for the export to the Sudan country and should sell out the cars into the Sudan market.  As we all know that Sudan‘s ratio of having a car is only 3 out of 1000 persons which are very low as compare to the Indian market scenario which 12 out of 1000 persons.  So both the countries we may say as to be into the expansion stage. The Indian companies like TATA Motors should have to penetrate into the market of Sudan in order to be having its attendance in all over the market.  As the Tata Motors are having a good attendance in many countries so it would not be hard for the company for entering into the Sudan Country.  We all suggest that there is a huge chance for the markets of India and Sudan.  The companies should have to give the cars to the probable customers which are not having a high price in order to capture more market.  The Tata motors have given the Indian market, a dream car for the middleclass family which is Tata Nano having a price of around Rs.1 lacks. So, if these types of cars will enter into the Sudan market than there are more chances of been successful run and been demand of the low cost cars.  The DAL group is also an vast group who can also give the market such an low cost car in order to go through the Indian market as cars costing less than 7-8 lakhs are been more running due to low cost and can be afford to the middle class families.

Telecommunication Industry in Sudan

CHAPTER 2

2.1 Introduction of the selected Etisalat Company and its role in the economy of Sudan. Emirates Telecommunications Corporation, branded trade name Etisalat is a UAE based telecommunications services provider, currently operating in 18 countries across Asia, the Middle East and Africa. As of February 2012, Etisalat is the 15th largest Mobile network operator in the world, with a total customer base of more than 135 million. Etisalat was named the most powerful company in the UAE by Forbes Middle East in 2012 On 10 February 2011, Etisalat reported net revenue of USD $8.4 billion (AED 31.9 billion) and net profits of USD US$2.078bn (AED 7.631 billion). It is one of the only two telecommunications service provider companies in the country, the other one being Emirates Integrated Telecom. Etisalat is one of the Internet hubs in the Middle East (AS8966), providing connectivity to other telecommunications operators in the region. It is also the largest carrier of international voice traffic in the Middle East and Africa and the 12th largest voice carrier in the world. As of October 2008, Etisalat has 510 roaming agreements covering 186 countries and enabling BlackBerry, 3G, GPRS and voice roaming. Etisalat operates Points of Presence (PoP) in New York, London, Amsterdam, Frankfurt, Paris and Singapore. The United Arab Emirates (UAE) was formed as a federation of seven emirates (Abu Dhabi, Sudan, Sharjah, Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain), which came together as one state on the 2nd of December 1971. The federal capital of UAE is Abu Dhabi and it is ruled by the President of the UAE, Sheikh Khalifa bin Zayed al Nahyan. The Vice-President and Prime Minister is Sheikh Mohammed bin Rashid al Maktoum, who is also the ruler of Sudan. more information... Where Is It Located It is located in the Middle East at the tip of the Arabian Peninsula between 22° 50 and 26° north latitude and between 51° and 56° 25 east longitude (23 49 N, 54 20 E). It is one of the GCC(Gulf Co-operation Council states) and has

borders with Saudi Arabia, Oman. It occupies a total of about 83,600 square kilometers (32,400 square miles) and contains 200 islands. more information...

Population and Religion The United Arab Emirates has approximately 4.1 million people (2006 estimate) from all over the Arab world, Asia, Europe, Africa and America live. Approximately 80% of the population is non-UAE nationals. The religion that the majority of the population have is Islam but Christianity, Hinduism, etc. are also found. The official language of the UAE is Arabic though other languages like English, Hindi and Farsi are also spoken.

2.2 HISTORY Emirates Telecommunication Corporation – Etisalat was founded in 1976 as a joint- stock company between International Aeradio Limited, a British Company, and local partners. In 1983 the ownership structure changed – United Arab Emirates government held a 60% share in the company and the remaining 40% were publicly traded. In 1991 the UAE central government issued Federal Law No. 1, which gave the corporation the right to provide the telecommunications wired and wireless services in the country and between UAE and other countries. It also gave the firm the right to issue licenses for owning, importing, manufacturing, using or operating telecommunication equipment. This practically gave Etisalat both regulatory and control powers, which completed the monopoly of the telecom giant in the UAE. In order to safeguard the country's economic development, the law made provisions for the development of the telecommunication sector in the country. The increase of exchange lines from 36,000 in 1976 to more than 737,000 in 1998 was one of the important indicators of Etisalat network's growth and development. Today Etisalat stands 140th among the Financial Times Top 500 Corporations in the world in terms of market capitalisation, and is ranked by The Middle East magazine as the 6th largest company in the Middle East in terms of capitalization and

revenues. The Corporation is the largest contributor outside the oil sector to development programmes of the UAE Federal Government, Etisalat has also won accolades from across the region for its nationalization programme.

2.3 ROLE IN THE ECONOMY OF SUDAN Sudan is buffeted by civil war, political instability, adverse weather, weak world commodity prices, a drop in remittances from abroad, and counterproductive economic policies. The private sector's main areas of activity are agriculture and trading, with most private industrial investment predating 1980. Agriculture employs 80% of the work force. Industry mainly processes agricultural items. Sluggish economic performance over the past decade, attributable largely to declining annual rainfall, has kept per capita income at low levels. A large foreign debt and huge arrears continue to cause difficulties. In 1990 the IMF took the unusual step of declaring Sudan no cooperative because of its nonpayment of arrears to the Fund. After Sudan backtracked on promised reforms in 1992–93, the IMF threatened to expel Sudan from the Fund. To avoid expulsion, Khartoum agreed to make token payments on its arrears to the Fund, liberalize exchange rates, and reduce subsidies, measures it has partially implemented. The government's continued prosecution of the civil war and its growing international isolation continued to inhibit growth in the nonagricultural sectors of the economy during 1999. The government has worked with foreign partners to develop the oil sector, and the country is producing just over half a million barrels per day (2007, from Sudan tribune website). 1.3 Economic & Business Environment: Broadly, the government of the U.A.E, has adopted an economic policy which encourages business growth and entrepreneurship. Through this diversified economic development strategy the U.A.E has created a business environment unparalleled in the Middle East to date. The infrastructure, banking services and political and social stability create the backdrop for successful market entry. Through the establishment of Free Zones, the UAE has become an open, competitive market place, with a strong emphasis on FDI.

There is no income tax, no corporate tax and low (or non-existent in Free Zones) import & export duties.

RECENT ECONOMIC DEVELOPMENTS The UAE has grown from a small fishing and pearling nation (before its first export of oil in 1962), into one of the strongest and fastest-growing economies in the world. The tremendous industrialization effort undertaken since 1980 took place first in energy-intensive industries, on the basis of the UAE's comparative advantage, and subsequently in high-technology industries, such as office and consumer electronics or medical equipment. In addition, important public investment has been made to develop tourism, including sports facilities, leisure parks, and centers for international conferences and events; Sudan was considering making a bid for the 2016 Olympic Games, however it were discouraged. a made an official application in 2007. Currently, Sudan is considering a bid for the 2020 Olympic Games. Since 1999, the UAE's lowest economic growth has been 1.7% (in 2001). For 2008 real GDP growth was estimated at 7.4% (Table I.2). This performance has been supported by windfall revenue from the doubling of oil and gas prices between 1998 and 2001, and again between 2001 and 2005; the revenue has financed activities in, inter alia, manufacturing, construction, and financial services.

Monetary policy is conducted by the Central Bank of the UAE (CBU), which has authority over most financial institutions, except some aspects of the recently created Sudan International Financial Centre. The thrust of Central Bank monetary policy is

100

to accumulate substantial reserves with a view to maintaining the currency's peg to the dollar. The main instruments to regulate domestic liquidity are the CBU's certificates of deposit of up to 18 months maturity and the reserve requirements. 2.4 STRUCTURE OF EMIRATES TELECOMMUNICATION

1. PROFILE OF PUBLIC ENTERPRISES Public enterprises in the United Arab Emirates (UAE) are of recent origin. Their establishment was encouraged after national independence in 1971 to provide more efficient and effective services, promote economic growth and help in generating State revenue. 1.1. TYPES OF PUBLIC ENTERPRISES In UAE, public enterprises take two forms: i. statutory corporations, which are created by specific legislation such as UAE Central Bank, Emirates General Petroleum Corporation, Emirates Transport and Services Corporation and Abu Dhabi Investment Authority ii. Companies, where the State subscribes to their share capital either wholly or partly along with persons from the private sector. Examples of such companies are Emirates Telecommunication Corporation Ltd, Emirates Industrial Bank, Abu Dhabi National Oil Co. and National Bank of Abu Dhabi. 1.2. ORGANISATIONAL STRUCTURE Public enterprise in UAE is generally managed by Boards of Directors. The Board determines the policy and is responsible for the general administration of the enterprise. The Chairman of the Board of Directors is usually a minister. Members of the Boards of Directors of the government owned corporations are appointed by the government, while the Boards of the jointly owned companies are appointed by the shareholders at the annual general meeting. 1.3. STAFFING AND TRAINING The general management and senior employees are usually appointed by the Board of Directors. Other personnel are recruited by the management. There is no difficulty facing public enterprises in UAE in recruiting qualified personnel as they offer attractive terms of salary and conditions of service.

101

Training of the staff within the country and overseas is provided as and when needed. Institutions such as Administration Development Institute, Banks Training Institute and Telecommunication Training Center also help in providing training to the staff of public enterprises.

1.4. FINANCING The capital of the corporations is financed wholly by the government, while in the case of jointly owned companies; the capital is financed by the government and the private sector. The rates, fees and prices are, to a large extent, controlled by the government. 2. GOVERNMENT CONTROLS 2.1. MINISTERIAL CONTROLS Boards of Directors of public enterprises in UAE always include government representatives, and the appropriate Minister is generally the Chairman of the Board. Consequently, the relevant ministry exercises control over the general performance of public enterprises in accordance with their respective laws and regulations. 2.2. CENTRAL AGENCY CONTROLS There are no specific central agency controls over public enterprises in UAE. Their general performance is monitored through suitable control measures by the respective Boards of Directors. 2.3. OPERATIONAL FLEXIBILITY - AUTONOMY Public enterprises in UAE enjoy a good deal of autonomy and have sufficient flexibility regarding the management of their daily operations. The limits of this flexibility and independence from government are set out in the respective regulations and laws governing the enterprises. 3. ORGANISATIONAL CONTROLS 3.1. BOARD OF DIRECTORS - POWERS The Board of Directors exercises a large measure of control over the functions of the public enterprise in accordance with the laws and regulations establishing the enterprise. It is generally responsible for the setting and execution of the general policy and the approval of the annual budget of the enterprise.

102

3.2. FINANCIAL MANAGEMENT AND INFORMATION SYSTEMS Public enterprises normally submit periodical reports to their respective Boards of Directors. These reports contain information in respect of financial matters, progress of development projects and general performance of the enterprise. After discussion, the Boards may issue corrective directions whenever necessary 3.3. ACCOUNTING STANDARDS Public enterprises maintain their accounts in accordance with the accounting standards contained in their respective laws and regulations. Normally, public enterprises prepare their financial statements on historical cost basis and in accordance with internationally accepted accounting principles. 4. LEGISLATURAL CONTROLS 4.1. BUDGETS Parliament does not exercise any direct control over the budgets of the individual public enterprises. 4.2. LEGISLATURAL COMMITTEES There is no direct control by Parliament - the Federal National Council (FNC) over public enterprises, but the FNC may establish committees to review the activities of these enterprises. The FNC also secures accountability of public enterprises through discussion of reports on financial performance submitted to it by the State Audit Institution, the Supreme Audit Institution of the UAE. 5. AUDIT OF PUBLIC ENTERPRISES 5.1. ROLE OF THE SUPREME AUDIT INSTITUTION (SAI) The State Audit Institution has been set up as an independent authority attached to the Federal National Council (Parliament) by Federal Law Number 7 of 1976. Article Number 4 therein specifies the entities which are subject to the audit control of the State Audit Institution. Accordingly 5.2. TYPES OF AUDITS UNDERTAKEN BY SAI The SAI carries out concurrent audit and post audit of all financial operations relating to jointly-owned public companies. Such companies are not subject to the pre-audit of contracts. However, public corporations are subject to pre-audit, as a general rule, although the laws establishing some of these corporations include an article to relieve them from pre-audit depending on the nature of contracts. Examples of these

103

are Central Bank, Emirates General Petroleum Corporation and Estate Property Bank. 5.3. OBJECTIVES AND SCOPE OF AUDIT The general objective of the SAI in conducting the audit of public enterprises is to assist these enterprises in achieving their objectives in the most efficient, economic and effective ways. 5.4. INTERNAL AUDITS Each public enterprise has an internal audit department reporting on financial and other matters directly to the top management represented by the general manager, executive committee or the Board of Directors in accordance with their organisational structure. The SAI, as part of its audit, examines the work and the reports of the internal audit departments of these enterprises. 5.5. USE OF COMMERCIAL AUDITORS There are no restrictions in the UAE on the employment of commercial auditors by public enterprises. Actually, in each public enterprise, the external auditors are appointed each year either by the general assembly or the Board of Directors. The appointment and remuneration of these auditors is not required to be approved by the SAI, but their audit work and reports are subject to the review of the SAI. 5.6. AUDIT METHODS AND TECHNIQUES The SAI undertakes audit and inspection based on complete or sample check according to its annual work plan. 5.7. ORGANISATIONAL MANAGEMENT FOR AUDIT The audit of public enterprises is carried out by a special division in the SAI in accordance with the annual audit plan and the directives issued for this purpose. 5.8. PERIOD AND FREQUENCY OF AUDITS The SAI is required to audit and report on the operational activities and the financial statements of public enterprises annually. 5.9. AUDIT REPORTS The SAI prepares interim and final audit reports on the accounts and operational activities of the public enterprises. A final audit report is also prepared annually on the accounts and the general performance of these public enterprises and submitted as part of the SAI council of minister.

104

CHAPTER 3

3.1 Comparative Position of Emirates Telecommunication with India Etisalat – India In 2009 Etisalat has announced that its Indian unit, erstwhile Swan Telecom (owned By Dynamix Balwas Realty and Reliance Communications), Location The company is registered and located in Mumbai, India. History The company‘s joint promoters are Vinod Goenka (Dynamix Group) and Shahid Balwa (Balwa Group), whose families have been in the real estate business for more than 25 years and 95 years, respectively. Both, Vinod Goenka and Shahid Balwa entered into a project specific partnership in 1997 and set up DB Realty in 2007 to formally develop all their future projects together. The promoters and promoter group companies have collectively developed nearly 15.9 m sq ft. Some of the key projects developed by the promoters include Gokuldham and Yashodham, Orchid City Centre Mall, Ascot Centre, and Vasant Vihar. IPO DB Realty launched their IPO in 2010 with issue price of Rs.468 which subscribed thrice on the day of launch and raised Rs 1500 crore. Board directors • K M Goenka, • Usman Balwa, • Vinod Goenka • Mahesh Gandhi • Jagat Killawala • Janak Desai • N M Rafique

Financials FY 2010-11 • Book Value per share – Rs 136. • Revenue - Rs. 13,272 • EBITDA - Rs 4,130 million • EPS - Rs 12.28 • Net Profit - Rs 2,987 million Business highlights FY11 • 3,700,000 square feet (340,000 m2) has been sold (including TDR). • Rs 30,654 million sales value has been achieved (including TDR). • Rs 17,265 million collection realized. • Debt equity ratio reduced to 0.14 and debt stands at Rs 4,656 million

105

Corporate social responsibility DB Realty has developed a program called, Vision Mumbai to tackle Mumbai‘s urbanization challenges from different perspectives. Vision Mumbai is a 3-point sustainability strategy centered to build intelligently, respectfully and sustainably through: urban renewal, community engagement, and philanthropy. In just a few months DB Realty will handover 17,205 Houses, 173 Balwadis, 2 Welfare Centres, and 172 Society Offices on a 36.5-acre (148,000 m2) property in Mahul to the Government of Maharashtra to provide shelter for those in need of homes. As part of community engagement program DB Realty is currently developing a landscaped promenade along the Bandra side of the Bandra-Worli sea link. DB Realty supports NGOs through philanthropic initiatives, including most recently, benefit presentations of the Pulitzer Prize winning play, Dinner with Friends. 2G spectrum scam Contrary to popular belief there is no connection between DB Realty and Etisalat- DB/ Swan Telecom.[16][17] The promoters of DB Realty Shahid Balwa and Vinod Goenka have in their individual capacity invested in Swan Telecom, now Etisalat DB Telecom, a company engaged in the Telecom Business. headquartered in Mumbai, is renamed to Etisalat DB Telecom India Pvt. Ltd[35] The business unit has been awarded Unified Services Access License in 15 circles – Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), Uttar Pradesh (East), Uttar Pradesh (West), Madhya Pradesh and Bihar. In April 2010 Etisalat began signal testing in Chennai [IND 922], Delhi & NCR [IND 913], Maharashtra & Goa [IND 919], Mumbai [IND 916] and Gujarat[IND 914]. In May 2010, Etisalat was in talks to buy 25% stake in Reliance Communications,[36] but the deal was not finalised. In 2010, following the $39 billion 2G spectrum scam, Following is the list of companies who got the 122 2G licenses during the tenure of A. Raja as Telecom Minister. (The licenses were later quashed by Supreme Court)

Telecom regions Number Name of for which license of Remarks Company was granted license

106

granted

Haryana, Himachal Pradesh, Jammu & Adonis Projects Kashmir, Punjab, 6 Pvt. Ltd. Rajasthan, Uttar Pradesh (East)

Assam, Bihar, Adonis Projects, Nahan Nahan North East, Orissa, Properties, Aska Projects, Volga Properties Pvt. Uttar Pradesh 6 Properties, Azare Properties & Ltd. (East), West Hudson Properties were acquired Bengal by Unitech. Unitech Infrastructure Aska Projects Andhra Pradesh, and Unitech Builders & Estates 3 Ltd. Kerala, Karnataka were already subsidiaries

Gujarat, Madhya of Unitech Group. So in Volga Properties Pradesh, 3 2008 Unitech had 22 2G licenses. Pvt. Ltd. Maharashtra Later in the same year Norway based company Telenor bought Azure Properties Kolkata 1 majority stake in the telecom Ltd. company from the Unitech Group. Hudson Now it offers services Delhi 1 Properties under Uninor brand holding 22 pan India licences. Unitech Builders Tamil Nadu & Estates Pvt. 1 (including Chennai) Ltd.

Unitech Infrastructures Mumbai 1 Pvt. Ltd.

Loop Telecom Bihar, Gujarat, 21

Pvt. Ltd. Himachal, Pradesh,

107

Kerala, Kolkata, Punjab, Rajasthan, Uttar Pradesh (East), Uttar Pradesh (West), West Bengal, Andhra Pradesh, Delhi, Haryana, Karnataka, Maharashtra, Orissa, Tamil Nadu (including Chennai), Assam, Jammu & Kashmir, Madhya Pradesh, North East

Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Kolkata, Madhya Datacom Operates under brand Pradesh, Solutions Pvt. 21 name Videocon Maharashtra, North Ltd. Telecommunications Limited East, Orissa, Rajasthan, Tamil Nadu (including Chennai), Uttar Pradesh (East), Uttar Pradesh (West), West

108

Bengal, Delhi, Mumbai

Madhya Pradesh, Kerala, Kolkata, Punjab, Uttar Pradesh (East), Uttar Pradesh (West), West Bengal, Andhra Shyam Telelink Limited & Shyani Shyam Telelink Pradesh, Delhi, Telelink Limited operate together 17 Limited Haryana, with their combined 21 licenses. Karnataka, During late 2008 Russia based Maharashtra, group Sistema bought majority Orissa, Tamil Nadu stake in the telecom company and (including now they operate under brand Chennai), Assam, name MTS India. Jammu & Kashmir, North East

Mumbai, Bihar, Shyani Telelink Gujarat, Himachal 4 Limited Pradesh

Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, In 2008, Swan Telecom merged Maharashtra, itself with Allianz Infratech (P) Ltd. Swan Telecom Punjab, Rajasthan, During late 2008 Abu 13 Pvt. Ltd. Tamil Nadu Dhabi'sEtisalat bought about 45 (including percent of the company and Chennai), Uttar renamed it to Etisalat DB Telecom Pradesh (East), Uttar Pradesh

109

(West), Delhi, Mumbai

Allianz Infratech Bihar, Madhya 2 (P) Ltd. Pradesh

Assam, Punjab, Karnataka, Jammu and Kashmir, North Idea Cellular bought Spice Communications Ltd. in 2008 for

Idea Cellular East, Kolkata, West 9 Bengal, Orissa, an amount of Tamil Nadu 2,700 crore (US$538.65 [20] (including Chennai) million). So out of 122 spectrum licenses sold in 2008 Idea Spice Delhi, Andhra Cellular owns 13 licenses Communications Pradesh, Haryana, 4

Ltd. Maharashtra

In January 2009, Bahrain Telecommunications signed a Assam, Jammu deal with S Tel to buy 49% shares and Kashmir, in S Tel for $225 million. C

S Tel Orissa, North East, 6 Sivasankaran owns the remaining Bihar, Himachal (51%) share.[21][22] In May Pradesh 2009, Sahara Groupbought 11.7% stake in S Tel[23]

In late 2008 promoters of Tata Teleservices sold 26% equity stake to a Japanese telecom Jammu and Tata giant NTT Docomo for about Kashmir, Assam, 3

Teleservices 13,070 crore (US$2.61 billion) or North East an enterprise value of 50,269 crore (US$10.03 billion).[24]

110

Telecom companies affected by cancellation of licenses The table below shows list of companies whose license were cancelled Number of Name of company Parent group licenses cancelled

Joint venture between Unitech Group of India

Uninor 22 and Telenor of Norway Unitech Group

Sistema Shyam Joint venture between Shyam group of Indian TeleServices Limited, 21 and Sistema of Russia now MTS India

Loop Mobile formerly Owned by Khaitan Holding Group 21 BPL Mobile

Videocon Telecommunications Owned by Videocon group of India 21

Limited

Joint venture between Swan Telecom of India Etisalat-DB 15 and Etisalat of UAE

Aditya Birla Groupof India (49.05%), Axiata

Idea Cellular Group Berhad of Malaysia (15%) 13 & Providence Equity(10.6%)of USA

Joint venture between C Sivasankaran of India and Batelco of Bahrain. After the

S Tel Supreme Court's decision Batelco sold its 6 42.7% stake toC Sivasankaran company Sky City Foundation Ltd. for $175 million[188]

Tata Teleservices Owned by Tata Group of India 3

111

Etisalat DB, the Indian subsidiary of the company, was stopped from buying a stake in a Chennai-based company due to objections raised by theMinistry of Home Affairs (MHA). Etisalat DB was not allowed to buy back the 5.27 per cent stake held by Chennai-based Genex Exim Ventures since the home ministry raised objections based largely on security concerns. The MHA had pointed out four issues that needed to be resolved before allowing the company to come into Etisalat DB, a company that got scarce 2G spectrum at allegedly throwaway prices. 1. The vice chairman, Shahid Balwa should not be involved in the operations of the company in any capacity, because of his connections with underworld don Dawood Ibrahim,. 2. The MHA raised objections about the commercial relationship between the Sudan- based Etisalat Group and China's Huawei. The MHA suspects, Huawei has links with China's People's Liberation Army – the country's military organisation of all land, sea, strategic missile and air forces – and has the capacity to manipulate equipment supply. 3. It raised objections about Etisalat's presence in Pakistan and its connection with Pakistan's intelligence agency ISI. Etisalat owns a 26% stake in Pakistan Telecommunications and has a subscriber base of 3 million in Afghanistan. 4. The MHA has also expressed concerns about the telecom surveillance software Etisalat had used in a Blackberry service it had introduced in the UAE and recommended that the company should not be allowed to offer Blackberry services in India. On 22 February 2012, Etisalat announced that it will cease operations in India post cancellation of its licenses by Supreme Court of India. It issued notice to its subscribers, giving them 30 days to change operator.

112

CHAPTER 4

4.1 Policies and Norms of sudan for ETISALAT on for including licensing / permission. COMMUNICATION POLICY 1. PURPOSE This document sets out the policy of the Nordic Investment Bank (NIB or the Bank) on external and internal communication. The Bank has issued separate policies for disclosure and language usage. 2. GOALS External Communication External communication should support the Bank in pursuing the overall goals as described in its mandate, mission and strategy. The basic mission of the Bank is to promote the sustainable growth of its member countries by providing long-term complementary financing, based on sound banking principles, to projects that strengthen competitiveness and enhance the environment. Internal Communication Like NIB‘s goals for its external communication, the main goal of the Bank‘s internal communication is to support the organisation in achieving the overall goals described in the Bank‘s mandate, mission and strategy. Furthermore, the internal communication shall strengthen the organisational culture and feeling of commitment among the staff. Mutual information sharing is an important principle to ensure efficient internal communication. Staff also acts as a multiplier in reaching other stakeholders. 3. GUIDING PRINCIPLES NIB recognises that active communication with different stakeholders and the general public is an integral part of good business and administration. In order to reach its overall goals for communication, NIB follows a set of guiding principles. Efficiency NIB uses modern communication technologies in a timely manner to convey its messages to its target groups. Synergies are sought when it comes to using different communication channels. NIB replies without unnecessary delay to information requests by the media and the public.

113

Transparency As an international financial institution, NIB strives in its communication to be as transparent and open as possible while taking into account bank secrecy. This contributes to maintaining a high level of accountability. The Bank has issued a separate disclosure policy. That policy sets rules for the disclosure of the Bank‘s administrative and internal processes as well as its operational activities. Proactivity NIB proactively develops contacts with its target groups and identifies topics of possible mutual interest. Clarity NIB aims at clarity, i.e., to send uniform and clear messages on key policy issues. NIB avoids unnecessary jargon in its communication. NIB reinforces clarity by adhering to a well-defined visual identity in its external communication. Political decision-makers and public administration NIB's ultimate decision-making body is the Board of Governors, the members of which are ministers of the member countries. NIB is accountable to its member countries for its actions, which creates a natural need to communicate.

6. COMMUNICATION CHANNELS To fulfil its goals for external communication, NIB employs a variety of communication tools. The most important of them are listed below (and summarised in Table 1). The responsible functions within the Bank are also mentioned.

Customers seminars, bilateral contacts, Internet, Lending, Communications newsletter, media, corporate presentations, speeches, publications, brochures, leaflets, advertising Investors publications, road shows (mostly Treasury, Communications bilateral contacts), Internet, media, investor presentations, wire services, publications, brochures, leaflets,

114

advertising

Political decision-makers and public institutional contacts, seminars, visits, administration bilateral contacts, Internet, newsletter, President,Communications media, publications (in particular the Legal, Compliance Annual Report), brochures, leaflets NGOs seminars, bilateral contacts, Internet, Communications newsletter, media publications, brochures, leaflets, advertising Media press releases, interviews, speeches, Communications background seminars General public media, other key target groups as Communications multipliers Staff intranet (including NIB today), HR, Communications debriefings, information sessions

4.2 RULES AND NORMS OF SUDAN FOR TELECOMMUNICATION Definitions In applying this Federal Law by Decree, the following terms shall have the following meanings unless the context requires otherwise: “Authority” the General Authority for Regulating the Telecommunication Sector. “Board” the Board of Directors of the Authority. “Board Members” such persons as may be appointed to the Board in accordance with the provisions of this Federal Law by Decree. “Chairman” the chairman of the board of directors of the Authority. “Director General” the Director General of the Authority. “Etisalat”

115

the Emirates Telecommunications Corporation regulated by Federal Law No. (1) of 1991 Regarding Emirates Telecommunications Corporation. “Executive Order” the executive order issued pursuant to this Federal Law by Decree. “Government” the government of the State of the United Arab Emirates. “Interconnection” the linking by whatever means of Telecommunication Networks in order to allow users of one entity to communicate with users of the same or another entity or enabling the users to make use of Telecommunication Services provided by another entity. “Interconnection Agreement” An agreement under which the interconnection will be achieved pursuant to the rules and conditions issued by the Authority. “Licence” a licence issued pursuant to the provisions of this Federal Law by Decree and its Executive Order which allows the Licensee to carry out any of the Regulated Activities. “Licensees” Etisalat and such entities as may be licensed by the Supreme Committee pursuant to the provisions of this Federal Law by Decree and its Executive Order. “Private Land” any land owned by, granted to or leased to any person other than any Public Institution. “Private Telecommunication Network” A Telecommunication Network operated exclusively to serve the requirements and to benefit one person or a group of persons who have a common ownership. “Public Institution(s)” all federal ministries and local departments, authorities and public organisations linked thereto, including the armed forces, the police, the intelligence and security services of the State but excluding any commercial company or establishment owned by any of the foregoing or in which any of the foregoing may have an interest. “Public Land”

116

all land under the control or ownership of any Public Institution but excluding any Private Land. “Public Telecommunication Network” a Telecommunication Network operated by the Licensee for the provision of Public Telecommunication Services by the Licensee pursuant to the provisions of this Federal Law by Decree. “Public Telecommunication Service” any Telecommunication Service provided to users or a part thereof in consideration of a fee. “Regulated Activity” either the operation of a Public Telecommunication Network or the supply of a Telecommunication Service to users and all other types of services specified by the Supreme Committee pursuant to the provisions of this Federal Law by Decree. “Supreme Committee” the committee established for the supervision of the telecommunication sector pursuant to the provisions of Article (2) of this Federal Law by Decree. “Telecommunication Apparatus” apparatus made or adapted for use in transmitting, receiving or conveying any of the Telecommunication Services through a Telecommunication Network. “Telecommunication Network” A system comprising one or more items of apparatus or means of communication medium for broadcasting, transmission, switching or receiving of Telecommunication Services, by means of electric, magnetic, electro-magnetic, electro-chemical or electro-mechanical energy and any other means of communication medium. “Telecommunication Service” the service of transmitting, broadcasting, switching or receiving by means of a Telecommunication Network of any of the following:

4.3 Overview on taxation in the U.A.E (etisalat) Tax credit and tax relief are a significant aspect of every foreign investment decision. The federal government has exclusive jurisdiction on areas such as such as foreign affairs, defence, health and education; this does not extend to taxation. Each

117

individual emirate is free to decide on matters such as municipal work and natural resources‘ and is also free to decide its own tax law. Although in theory this could lead to a vastly differing set of tax rules and regulations from emirate to emirate, in practise the emirates roughly follow the same set of rules. The information below is meant as a general guideline, it is imperative that a company wishing to do business in the U.A.E seeks legal council.

Broadly, the following should be noted regarding taxation in the U.A.E: • Although UAE tax laws are intended to levy taxes, most of the regulations are not enforced in practice. • Fiscal practice may differ from the legislation, as is very much the case with corporate tax in the UAE. • Broadly, the following taxes are not applicable in the UAE: � Personal income tax � Capital gain tax � Value-added tax � Withholding tax � Corporate tax Personal Taxation There is no personal income tax in the UAE. Municipality service charges are levied on individuals living and working in the UAE. Service charge percentages vary among the emirates. A service charge of five to ten per cent is charged on food purchased in restaurants. Hotels charge a ten to fifteen per cent service charge per night on room rates. These charges are usually included in the customer‘s bill, which the municipality will collect from restaurants and hotels. Corporate Tax In practice oil, gas and petrochemical companies and branch offices of foreign banks do pay corporate tax, the charges for which vary from emirate to emirate. In Sudan, oil gas and petrochemical companies pay 55% on UAE sourced taxable income and they pay royalties on production. The taxable income of oil companies is calculated by reference to their concession agreements. Banks pay 20% tax on taxable income, the taxable income of banks is calculated by reference to their audited financial statements.

118

Customs duties are very low and there are many exemptions. Goods imported and intended for re-export often benefit from customs duty as do manufacturers on the import of their machinery, raw materials and spare parts used for industrial purposes. Property Tax In most of the emirates, tax is payable by residential and commercial tenants by reference to the annual rent of residential property at a rate of 5 per cent and for commercial property at 10 per cent of the annual rent. A property tax is charged in Abu Dhabi to obtain and renew business licenses. In general, taxes are assessed at around 5 to 10 per cent of the applicant‘s annual office rental and 5 per cent of the annual rental of the residence of the manager whose name appears on the licence. In Sudan, all residential properties are subject to an annual property tax payable to the Sudan Municipality. The amount of tax payable depends upon the employment status of the tenant Double taxation Double taxation agreements prevent those individuals and corporations from being susceptible to tax on the same item in the same time period. Tax Disputes World business tax experts have called on governments to accept compulsory international arbitration to resolve cross-border tax disputes, particularly those arising from conflicting interpretations of double taxation treaties. 4.4 Policies and norms of telecommunication in india India's new telecom policy to make licensing norms tougher New Delhi, Jan 29 (IANS) India Saturday said its new telecom policy to be unveiled soon will tighten the norms for grant of licences and airwaves to service providers in a bid to induce transparency and provide a level-playing field to new and existing players.

Announcing this at a hurriedly convened press conference here, Communications Minister Kapil Sibal also said more notices will be issued to companies that had

119

failed to roll out their services as contracted to explain why their licences should not beannulled. "We've reached a stage where the objectives of the existing policy has been well served. Every circle has 12-14 competitors. Tele-density has reached almost 62 percent. Now the broad contours of the policy needs a directional shift," Sibal said. "It also is necessary to ensure a level-playing field for all players. Going forward, any new policy on pricing would need to be applied equally to all players," said the minister, ruling out first-cum-first served basis for award of spectrum in future. He also said the new policy will have the following salient features: -It will de-link the award of spectrum from issue of licenses -Spectrum henceforth will be awarded only on a market-based mechanism -Adequate spectrum will be provided to all service providers According to Sibal, the responses have been sought from the industry watchdog, Telecom Regulatory Authority of India (TRA), on these issues and the policy would be announced within the 100-day deadline he had set for himself when he assumed charge in November. The companies that have been issued notices are: Etisalat, S- Tel, Uninor, Loop Telecom, Videocon, Allianz Infra, Idea Cellular, Tata Teleservices, Sistema Shyam Teleservices, Dishnet Wireless and Vodafone-Essar. 1. NAME The name of the Association shall be ―THE PACIFIC TELECOMMUNICATIONS COUNCIL- INDIA FOUNDATION‖ and shall hereafter be briefly referred to as ―THE FOUNDATION‖ 2. MEMERSHIP a) COMPOSITION - Membership is open to both entities and individuals. b) REQUIREMENTS FOR MEMBERSHIP - Applicants for membership must have and interest in telecommunications in the South Asia Area, must agree to accept the Memorandum and Rules and Regulations of The Foundation and their underlying principles. c) ANNUAL DUES - Members will be assessed annual dues as determined by the Broad of Trustees. Annual dues shall become due and payable initially upon approval of the Members application and thereafter as of the fist day of The Foundation Financial year.

120

d) MEMBERSHIP RIGHTS - Each member shall be entitled to one vote for each matter submitted to a vote of the members at all meetings of members. The rights of a member to vote shall cease upon termination of membership. Members are entitled to receive minutes of meetings and newsletters and any other correspondence and information determined by the Board of Trustees or the Executive Board. e) MEMBERSHIP APPLICATION - Application for membership must complete and submit in official application from available on request from The Foundation office. f) APPROVAL OF APPLICATION - Application for membership will require the approval of the Governing Body. This power may be delegated to the Executive Broad. Application of entities will be judged on the basis of reputation and activities in the Area of Telecommunications or related fields. Individuals will be judged on reputation, back ground and experience. Membership if not approved by the Governing Body, the same shall be communicated to the person concerned. g) RENEWALS - Membership once approved, shall be continuous until such time as a member has resigned or been removed from membership. h) EXPULSION OR REMOVAL - The Foundation may expel or remove any member 3. AFFILIATE MEMBER Any person above the age of 18 yrs. Subscribing to the aims and objects of The Foundation and interested in participating in the Programmes of The Foundation may be registered an Affiliate member of The Foundation. Such members will have no voting right but are entitled to receive publications, notice and other correspondence that may be sent to members. Affiliate members may attend annual meeting of members as observers therefore must pay on annual fees as determined by the Broad of Trustees. 4. ORGANIZATION The foundation is organized as under: CHAIRMAN The President shall chair the meeting of the General Body and the Governing Body and will be competent to guide and promote the activities of The Foundation. a) The President shall be the Chairman of The Foundation.

121

b) The chairman of The Foundation shall be a member of the Governing Body and the General Body and shall preside over the meetings of the Executive and General Body. GENERAL BODY a) General Body of The Foundation shall consist of: i) Members of the executives body. ii) Members of the community representatives of The Foundation. iii) Members on whom the executives body has conferred membership of The Foundation. BOARD OF TRUSTEES The Foundation shall have a Board of Trustees by the General Board and consisting of not less than 7 and not more than 22 members for holding the property of The Foundation and for holding the responsibility for transaction involving the purchase and sale of property and investment of funds. The Chairman of The Foundation shall be the chairman of the Board of Trustees. The Chairman shall preside at all meeting of the members and trustees shall be even and Ex-Officio member of the Executive board. GOVERNING BODY / EXECUTIVE COMITTEE The Governing Body of The Foundation shall be elected for a term of two years in the General Body meeting. The Governing Body shall consist of not less than seven (7) Members and not more than fifteen (15) and the principal decision making instruments of The Foundation with full responsibility for supervision of the business activities of The Foundation. FUNCTIONS OF THE GOVERNING BODY i) The executive body shall lay down the policies of The Foundation, receive and consider reports of various committees appointed by The Foundation and formulate programmes for the furtherance of aims and objectives of The Foundation. ii) The Executive body shall have powers: a) To solicit, obtain or accept subscription, donations, grants gifts, bequests and trusts from any person, firm company, corporation or institution with or without any condition. STANDING COMMITTEES

122

i) The Executive body may set-up such committees as it considers necessary for the effective formulation of the programmes of The Foundation when appointing standing committees, the Executive body shall define its area of work. Though persons who are not members of The Foundation may be eligible for inclusion in such standing committees, the Chairman of the standing committees shall be nominated by the Executive body form among own members. COMMUNITY REPRESENTATIVES i) The Executive body shall nominate community representatives in accordance with the bye-law framed in that behalf. A community representative may ordinarily be between 18 to 45 years of age. These community representatives hold office at the pleasure of the Executive out. LOCAL REPRESENTATIVES i) Local representatives for the centers of The Foundation shall be appointed by the Secretary General. A Local representative may ordinarily be between 18 to 45 year of age. ii) The local representatives shall be responsible for promoting and organizing work of The Foundation in the centre subject to the guidance and direction of the Secretary General. iii) The local representatives shall take steps to ensure that a local committee is constituted at his centre within a year of his appointment. LOCAL COMMITTEES i) There shall be a local committee of The Foundation at every centre. A local committee shall consist of not less than 3 and not more than 5 members including the Convener of the committee and shall be constituted by the community representative or the local representative as the case may be with consultation with the Secretary General. ii) The tenure of the local committee shall be co- terminus with that of the community representative or the local representative who constitutes the committee. iii) Local committee shall be responsible for implementing the programmes laid down by the Executive body form time to time. ADVISOY COMMITTEE i) The Foundation shall have an advisory committee consisting of distinguished persons who, by reason of their education, learning, experience and status are

123

competent to advise The Foundation on its programme and in formulation of policies and projects in the furtherance of the objects of The Foundation. ii) The Advisory committee shall be constituted by the board of trustees and shall consist of not more than five persons including its Chairman. The Executive director of the pacific Telecommunication Council, USA, would be a member of the Advisory committee. Notice of the Meetings The Secretary General or the other person or persons designated by the Governing Body to call for meetings shall give 21 days advance written notice to the each proposed meeting of members indicating the purpose, place, day and time of the meeting. Notice served at the address registered with them. 6. RESOLUTIONS Resolutions may be passed at any Meeting of the General Body, Executive body or any of the committees or the sub-committees by show of hands. Any resolution voted by the majority of members present shall be deemed to have been duly passed. 7. FINACIAL YEAR The financial year of The Foundation shall be from 1st April to 31st march every year. 8. BANK ACCOUNT CREATION OR EXECUTION OF FUNDS The bank account of whatever description in the name of The Foundation shall be jointly operated by the president and the Secretary General or by any other person so authorized by the Governing Body along with the president or the Secretary General of The Foundation. 9. ELECTION The Governing Body or The Foundation shall be elected for a term of two years in the General body meetings. The secret ballot system can be the mode of election or it may be through nomination as well. After every election a list of office bearers and the election proceedings shall be attested by three (3) outgoing office bearers and it will be filed with the Registrar of societies, Delhi. 10. AUDITOR

124

The General Body at any annual meeting or at any special meeting called for that purpose shall elect person, firm engaged in the business of auditing as the statutory Auditors of The Foundation. 11. INDEMNITY i) Every member of the General body, auditor, chairman, Secretary General and all other office bearers and such other persons of The Foundation be indemnified by the Foundation out of the funds of The Foundation against all liabilities arising out of the acts and things done by him in performance of the duties entrusted to him, by payment of all sums by way of damages or otherwise, and all losses cost, charges or expense which he may incur or become liable to by reason of any contract entered into or any act or deed done by him as such member, auditor, chairman, Secretary General, office bearer or such other person on in any way in or about the discharge of his duties. 12. ANNUAL LIST Every year, a list of Governing Body office bearers and members shall filled in the office Of the Registrar of Societies, Delhi, is required under Section 4 of the Societies Registration Act, of 1860. 13. LEGAL PROCEEDINGS The Foundation may sue or the be sued in the name of its President/ Secretary General as required Under Section 6 of The Societies Registration Act. Of 1860, as application to the National Capital Territory of Delhi. 14. AMENDMENTS Any amendments in the Memorandum of Association or rules will be carried out in accordance with procedure laid down under section 12 and A of societies Registration Act, 1860. 15. DISSOLUTION i) The Governing Body may at a special meeting convened for that purpose, decide to dissolve The Foundation provided that two months due notice of the Agenda of such meeting to consider the dissolution shall be given and provided further that 2/3 of the number of members of the General body vote in favour of the resolution proposing such dissolution.

125

CHAPTER 5

5.1 BUSINESS OPPORTUNITY

New Delhi, Feb. 9: UAE-based Etisalat has written off $827 million (3.04 billion dirhams) on account of the uncertain future of its India operations. Etisalat, which owns 45 per cent stake in the mobile company Etisalat DB, is one of the foreign investors hit by the Supreme Court's ruling on cancelling licences awarded in 2008. Etisalat said on Thursday that it has decided to recognise an impairment charge in its 2011 consolidated financial statements aggregating 3.04 billion Arabian Dirhams (AED) before Federal Royalty. ―The net impact of this charge on our consolidated net profit after Federal Royalty amounts to AED1,020 million,‖ the company said in a statement.

Just solution Etisalat said it expects the Government of India to bring about a rapid and just solution and to fairly compensate investors fairly. ―Etisalat is also continuing to assess the legal consequences of the Supreme Court's decision and Etisalat's strategic options in India,‖ the company said. Etisalat had paid $900 million in 2008 for a 45 per cent stake in Swan Telecom, after the licence had been granted. The company said it invested more than $1 billion in the venture, now renamed Etisalat DB. Etisalat DB has licences for 15 circles and 1.7 million subscribers as of December. ―The Supreme Court's decision took the entire industry by surprise and significantly alters the competitive landscape in India's telecommunications market,‖ Etisalat said, adding that it invested in Swan telecom long after the 2G licences were awarded.

Exit option Other foreign investors affected by the court's ruling include Norway's Telenor, Bahrain's Batelco and Russia's Sistema. On Wednesday, Batelco announced its

126

decision to exit the Indian venture STel by selling its stake back to the Sivasankaran Group. Telenor has written of $721 million (4.2 billion Kroner) worth value from its Indian venture Uninor. Telenor said that it may buy back spectrum through an auction if rules are conducive but it has kept the exit option open. United Arab Emirates telecom operator Etisalat said it would shut down the operations of its Indian joint venture, three weeks after the Supreme Court cancelled the affiliate's licence amid a corruption probe. On February 9, Etisalat wrote off $827 million relating to India unit Etisalat DB (EDB), in which it owns a 45 per cent stake, after the affiliate's 15 licences were among 122 the Supreme Court ordered to be scrapped. "The decision of the Supreme Court ... has removed EDB's ability to operate," Etisalat said in an emailed statement. "As unanimously resolved by the (Etisalat) board this evening, Etisalat DB will be taking steps to reduce operating costs, including the suspension of its network and services. "The decision has been taken in order to protect the interests of all stakeholders and to avoid incurring further costs at this time of rapid change and continued uncertainty in the Indian telecommunications sector. Etisalat will decide on any future activity in India "when there is clarity on the auction process and telecommunications policy and greater legal and regulatory certainty and stability," it added. The companies whose licences are being cancelled can bid in an auction to regain the licences and radio airwaves. Etisalat paid $900 million in 2008 for its stake in the nascent company, then called Swan Telecom, after the licence had been granted. Etisalat has said it invested more than $1 billion in the venture, later renamed Etisalat DB. Top executives of Etisalat's India partner DB Group and the joint venture mobile company are among 19 people and six companies charged by police in the telecoms licence scandal, awaiting trial. Etisalat.

DB has licences for 15 of India's 22 telecom zones and its 1.7 million subscribers as of December ranked it 14th in a 15-operator market. It was slow to roll out services, for which it was rebuked last year by the Indian government, while in January network host Reliance Communications said it had cut off Etisalat DB over non-payment of fees for using its towers.

127

India revoked 22 mobile licences held by a Telenor joint venture and on Tuesday the Norwegian operator said it was dumping its Indian partner, accusing it of "fraud and misrepresentation". Bahrain Telecommunications Co (Batelco) agreed to sell its stake in Indian affiliate S Tel to its Indian partner after the unit was another to have its licences revoked. S Tel on Tuesday said it is helping clients switch to other operators but did not respond directly to reports that it had decided to shut down.

RECOMMENDATION

To survive in the telecom industry some certain things should be consider that is mention as below: 1. The company could come up with different schemes for those customers who have been with it for the past six months. This would ensure that they are with the company for a long time. 2. The company needs to build a strong rapport with the customers. The only way company can come in direct contact with the customers is through the customer care. Right now the company is outsourcing its customer care. If it has in bound call centers it would make a huge difference. 3. Every major service provider today has a celebrity to endorse its brand with whom the customers can relate. 4. Company should their expand the business in different country 5. We are suggesting that they need to come in india and expand their business in india with following legal rules and norms of Indian telecommunication. 6. As well as they have to cover most of the market in Africa because they people give strong response to the company. 7. Due to the more expanded their business in dubai they have to establish head office in dubai as well as in sudan. Sudanee‘s people give good response their company. Company should provide good services as well as schemes also 8. The ability to keep operating costs under control will be key for the much needed flexibility in pricing. For instance, to control network and operating expenses, various Wireless operators have moved towards infrastructure sharing and outsourcing network O&M activities.

128

9. Ultimately, according to us, the companies with low-cost models and with diversified product offerings will be the future winners. 10. India represents one of the most exciting opportunities for mobile services in the coming decade and these opportunities can be tapped by adding value to telecom services.

CONCLUSION Like most African countries, Sudan has a strong culture of R&D in Agriculture, championed by both the government, through various institutions, and the Higher Education Sector. Biotechnology forms part of the R&D activities in Sudan at places like the IRCC and at some universities.

The government of Sudan recognizes the opportunities for Sudan and the special needs of the ―knowledge based‖ economy. Resources are invested in technological research and development, to achieve economic growth, social prosperity and the ability of Sudan to compete in the global market.

In 2001, a medium term strategy and programs was prepared detailing inputs, activities and outputs that will enhance achievement of quantifiable objective ways and means of verification.

Government and the legislative body endorsed the draft. MOST is committed to maintain efficient environmental technologies and expand partnerships for the Promotion of S&T technologies and innovations. The strategy for S&T in Sudan is based on the key building blocks: S&T structure, community awareness, investment, cultivating relations with friendly countries and incentives for commercialization and growth.

In full appreciation of the value of ICT for economic development and progress, the focus of the Sudan government is on a concerted national IT Policy & Action Plan. The key initiatives under the Action Plan include Human Resources Development, E- Government & E-Commerce.

129

Airways Industry in Sudan

130

CHAPTER- 2

OVERVIEW OF AIRWAYS SECTOR IN SUDAN

 No of inventions have changed how people live and experience the world as much as the invention of the airplane. During both World Wars, government subsidies and demands for new airplanes hugely improved techniques for their design and structure.  Following the World War II, the first commercial airplane routes were set up in Europe. Over time, air travel has become so common place that it would be hard to imagine life without it.  The airline industry definitely has progressed. It has also changed the way in which people live and conduct business buy shortening travel time and changing our concept of distance, making it possible for us to visit and conduct business in places once consider remote.  The airline industry exists in any intensely competitive market. In recent years, there has been an industry-wide extract, which will have far-reaching effects on the industry's trend towards growing domestic and international services. In the past, the airline industry was partly under government owned.

OVERVIEW OF SUDAN AIRWAYS Sudan Airways is the national Airline of Sudan headquartered in Khartoum. The carrier is a member of the international Air Transformation Association of the Arab Air carrier Organization since 1965, and of the African Air Organization since 1968, becoming a founding member along with another ten companies. The company is owned in its majority by the Government in Sudan and has a 1,700-strong staff. The airline was formed in February 1946 with the technical assistance of Air work ltd. and the commercial support of Sudan Railways. The first scheduled operations were launched in July 1947. 3 Structure of Sudan airways:- The airport underwent a massive reformation and expansion project from 1994–1999, in which the former parking lot was cleared and a terminal development was built. This incorporated new check-in areas, a new way in to the airport, the building of a multi-story parking structure, and an airport mall. Khartoum International Airport can currently hold more than six million passengers a year. A new general aviation terminal was completed in 2005 under a main scheme and it is operated by cargo Aviation. In the end of 2008, this terminal was modified to handle the scheduled services of Airways along with general aviation traffic. On April, 15 2006 the Directorate General of Civil Aviation announced that a new Foster Partners-designed terminal will begin construction in 2012 and will increase the annual

131

passenger handling amount to 13 million passengers in its first phase with the option of expanding to 25 million passengers. The airport has finalized formalities for the construction of the terminal, which is due to begin construction in 2012 with completion by 2016. It is designed as a three-pointed star, with each point extending 600 meters from the star's center. Two airside hotels will form part of the new building.

4. Role of Sudan airways in the economy:

Aviation plays a more prominent role in Sudan as a transport network. Sudan is more than in many African countries because of the geographic nature and size of the country and its medium but broadly discrete population. The aviation industry acts as a catalyst for business, trade and tourism as well as being an important community resource. The aviation industry encompasses a wide range of interested parties ranging from light aircraft owners through to large international and domestic carriers as well as trade and tourism bodies and the traveling public.

Type of Operation:- Company is performing commercial transportation in the following types of operation:  regional & domestic and international charter flights  Scheduled & charter flight  Cargo & passengers flights In the following aviation sectors. 1. Presidential Flights 2. Domestic & International Private Flights 3. VIP & Business Men Flights 4. Tourist Groups 5. Oil & Industry Companies 6. Private Cargo 7. Air Ambulance

132

CHAPTER- 3 COMPARATIVE POSITION BETWEEN SUDAN AIRWAYS IN SUDAN AND JET AIRWAYS IN INDIA

1 SUDAN AIRWAYS:- Sudan Airways is the national Airline of Sudan headquartered in Khartoum. The carrier is a member of the international Air Transformation Association of the Arab Air carrier Organization since 1965, and of the African Air Organization since 1968, becoming a founding member along with another ten companies. The company is owned in its majority by the Government in Sudan and has a 1,700-strong staff. The airline was formed in February 1946 with the technical assistance of Air work ltd. and the commercial support of Sudan Railways. The first scheduled operations were launched in July 1947.

2 Overall Performance of Sudan airways:- Observation of 23 flights in Sudan airways; 1 was on time, 1 was 15 minutes late at most, 3 were 30 minutes late at most, 17 were more than 45 minutes late, and 1 was cancelled. There were 21 flight delays, with average delay duration of 124 minutes. On time 4% Majorly Late 4% Late 13% Very Late 73% Cancelled 4%

3 Sudan Airways flights – cities:- Sudan airways providing no. of cheapest flights services to their customers providing different flights to destinations,  Jeddah  Cargo  Port Sudan  Juba  Abu Dhabi

4 Airways flights - countries Direct from United Kingdom to destination;  Sudan

133

 Saudi Arabia  Egypt  South Sudan  Nigeria  Qatar  Jordan

5 Sudan Airways flights – routes:- There are many different flights routes of Sudan airways,  Sudan airways flights from Jeddah to Khartoum  Sudan airways flights from Port Sudan to Khartoum  Sudan airways flights from Abu Dhabi to Khartoum  Sudan airways flights from Khartoum to Chiron  Sudan airways flights from Jeddah to Port Sudan  Sudan airways flights from Khartoum to sharjaha

Sudan Airways Details:- Carrier code SD ICAD SUD Call sign SUDANAIR Founded Feb 1946 Destination Sudan airways(24) Headquarter Sudan Khartoum Commerce July 1947 Fleet size 11

6 Sudan airways services:- 1-Ground conduct

Sudan Airways differentiate two major types of Ground conduct procedures which are designated either terminal or airside operations. We will focus on airside operations as the density of tasks and assortment of requisite equipments are grate:- Following services are comprehensive for common commercial flights:- Supervision 1- start up 2- Moving / towing of aircrafts.

134

3- Safety measurements. Obviously ground conduct management has to deal with very miscellaneous tasks. Preferably these operations are performed simultaneously to decrease ground time and thus to increase aircraft productivity. Therefore we strongly highlight the time effecting ground operations provided through technology, advance equipments, co-ordination of staff and information support system.

A- Equipments:-

Sudan airways provided a complete list of all equipments which give a good overview of what a typical airport authority needs to operate ground conduct.

B / Operations Analysis:-

Ground conduct is multi-task procedures:-

1- Save money for the airline they work for. 2- Endeavour to perform simultaneously as many operations as we can. 3- Avoid damages which may lead to frequent frequency between fixed systems and mobile devices. 4- We showed our large stock of mobile units which are required to ensure the incredible elasticity required on ground handling. 5- Timing- the minimum required time turn round.

C/ Catering Services:- Sudan Airways is well equipped to provide catering services with kindness to the international standard to all regular, ado and technical landing flights for reasonable prices.

D/ DCS System:- For the convenient and smooth check in for passengers, Sudan airways has implemented this system run by a qualified and well trained staff... Ground conduct deals with very compound operations. Even though heavy equipments are necessary to perform the task during turn round, flexibility is the key point to reach maximum effectiveness. Therefore adaptability skills of all workers and managers are crucial.

135

2-Cargo services Dedicated freighter air craft‘s are serving cargo to Sudan through charter and listed services. Alongside space provided in passenger air craft for both domestic and international stations covering 25 Places. Sudan airways used to have 58 years of experiences in handling perishables through the major export of Sudan (white meat & vegetables and fresh fruits).

Dedicated transit area in a capacity of 80 tons inside the main warehouse is serving transit cargo shipment from dissimilar stations. Dangerous goods, Cold rooms and freezer services are also available, along with refrigeration for medicines and vaccination under delivery paperwork of transit services.

Cargo warehouse is portion the following other airlines like: Egypt Air Saudi Airline Royal Jordan Air - Yemeni - Ethiopian airline and Fly Air of Turkey. Cargo air craft handling facilities are there for contracted companies and any other charter services for aircrafts:

Beside small types of aircrafts. Best ground support equipments in Khartoum Airport are available with Sudan Airways to meet any ground handling request for all types of freighters. Beside storeroom Services.

3-Special Flight services:- Background (services) Aviation plays a more famous role in Sudan as a transport set of connections, more than in many African countries because of the geographic nature and size of the country and its medium but broadly discrete population. The aviation industry acts as a catalyst for business, trade and tourism as well as being an important community resource. The aviation industry encompasses a wide range of interested parties ranging from brightness aircraft owners through to large international and domestic carriers as well as trade and tourism bodies and the traveling public.

Entertainment & Media services: Welcome to our Sudan Entertainment and Lifestyle Directory. Here you find all information about leisure activities, a great place to go out or home help services. These pages contain everything from organizing a party or planning a wedding to personal development and careers coaching.

136

 Arts &crafts,  casinos,  film Television & vide  Music  performing Arts,  Sport Food & Drink services: 1-Restaurant 2-Cafes 3-Super market 4-Catering 5-Wine & Beer

Tourism & Accommodation services:  Hotels  Travel agents  Tour operators  Tourist information Transport & Motoring services: 1-Transport 2-Vehicle sales 3-Car rental 4-Air travel 5-Motorbikes 6-Air transport 4- Other services:(Biasness class & Economic class)  Airport service  Transfer services  Arrival services  Staff services Onboard features (in flight)  Amenities  Cabin safety proceed  Blankets, newspapers  Cabin staff services  Staff efficiency.

137

 Staff attitude & friendless.  Responding to passenger requests.  Assisting parents with children  Staff luggage skills.

1 JET AIRWAYS:-

Airways were integrated as an air taxi operator on 1 April 1992. It started commercial operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft. In January 1994 a change in the law enabled Jet Airways to apply for scheduled airline status, which was granted on 4 January 1995. It initial international operations from Chennai to Colombo in March 2004. The company is listed on the Bombay Stock Exchange but 80% of its stock is controlled by Marsh Goal. It has 10,017 employees (in March 2007).

In October 2008 Jet Airways laid off 1,900 of its employees, resulting in the largest discharge in the history of Indian aviation. However the employees were later asked to return to work; Civil Aviation. In October 2008 Jet Airways and rival Kingfisher Airlines announced an alliance which first and foremost includes an agreement on code-sharing on both domestic and international flights.

Jet Airways had a market share of 26.9% in terms of passengers carried, thus making it a market leader in India, followed by Kingfisher Airlines with 19.9%. Jet Airways' original livery was Navy Blue, Light Grey and Chrome Yellow The top and bottom of the aircraft were painted in light grey and had the flying sun logo in the navy blue background.

JET AIRWAYS DETAILS: Carrier code 9W ICAD JET Call sign JET AIRWAYS Founded APRIL 1992 Company Slogan The Joy of flying Headquarter Sudan Khartoum Commerce MAY 1993 Founder Marsh goyel

138

JET Airways flights - cities:

Providing different flights to destinations: -

 Chhatrapati Shiva International Airport (Mumbai)  Brussels Airport  Chennai International Airport  India Gandhi International Airport (Delhi)  Subhash Chandra Bose International Airport (Kolkata)

Focus cities  Bangalore International Airport (Bangalore)  Cochin International Airport (Kochi)  Trivandrum International Airport(Trivandrum)  Diabolism Airport (Vasco ad Gama Goa)  Rajiv Gandhi International Airport (Hyderabad)  Sardar Vallabhbhai Patel International Airport (Ahmadabad)

4 Jet Airways Services:-

Jet Airways In-Flight Service Jet Airways promise to make your flying experience surprising and operates two classes of service on their domestic routes - Premiere and Economy. While on international routes, Jet Airways offers four classes of travel, namely Cabin Class, First Class, Premiere (Business) Class and Economy Class. All classes offer adequate leg room and space for a comfortable journey In-flight services include:- Hot meals on the flights are offered, in improved and happy designer crockery. The in-flight services personnel ensure that cabin interiors are consistent with continuous quality check and we constantly Endeavour to upgrade our product. A Jet Premiere passenger has the privilege of selecting their seat at the time of reservation. Now, even Economy passengers holding confirmed tickets between India and all the international destinations (except Colombo and Kathmandu) can choose their seats. Jet passengers can use the Tele Check-in facility to save time. All that the passenger has to do

139

is to call the special Tele check-in numbers at the airport up to 45 minutes before departure and confirm that they will be at the airport at least 30 minutes before the scheduled flight. Dining: Passengers can now enjoy the luxury of a course-by-course personalized meal starting from hot refreshing soups to a variety of rich desserts. The Jet Screen is Jet Airways' award-wining in-flight Entertainment system. Jet Screen offers a virtual feast of entertainment for our passengers; from blockbuster movies to the latest music albums, from award-winning TV shows to the best games! Jet airways offer the in-flight magazine Jet Wings with an in-flight shopping catalogue called Jet Boutique Jet Airways in flight service for passengers Jet Airways is the largest India based airline company, headquartered in Mumbai. It operates flights for 76 destinations across the world. Jet Airways operates more than 400 flights every day including domestic and international flights. Jet Airways in-flight service is very standard that offers better flight services to passengers, Jet Airways also provide standard safety to make the passenger feel comfortable and tension free in the flight. All the passengers look for the facilities in flights; particularly if the flight route is longer then it becomes essential to know the in-flight service so that they can feel comfortable in the journey. Jet Airways services: Jet Airways provides world class facilities in both domestic and international flights. The airline offers almost all the needy needs in the route that includes entertainment, magazines, convenience and safety. Entertainment in flights: Jet Airways offers high class entertains for its guests. You can enjoy all the latest music shows, movies, and can also watch movies on demand. It offers ergonomic comfort, personal IFE displays with a great range of entertainment options including 50 movies, 40 TV programmers, 8 audio channels, and CD library of 132 titles. There is also feature to play single or multilayer games. So all age of passenger can enjoy a lot while on the air. You can also avail facilities of in-seat telephony, SMS and email in real time. Convenience and Safety: In view of safety and convenience of passengers within the flight, Jet Airways offers several facilities. It provides mills, towels, blankets, pillow, magazines, newspapers, first aid etc. You can also avail some more things on demand by cabin crew. The airline also provides in-flight child care washrooms equipped with a diaper changing tables. Other Services: Cabin Domestic & international short pull Boeing 737 Next Generation aircraft are configured in and wealth Classes. Some Boeing 737s has an all Economy Class cabin layout. The ATR 72-500 have Economy class arrangement only Premire

140

Economic Class:- Jet Airways Economy class on its Boeing 737 Next Generation features 30-inch seat pitch with personal Widescreen LCD behind each seat. Jet Airways was the World's first airline to introduce in-flight leisure systems on the Boeing 737 aircraft. Jet Airways has introduced a new cabin with upgraded seats in all classes. The Airbus A330-200 aircraft have two classes: Premises and Economy. Jet Airways has a three-star rated first and Business Class, and is in the top twenty-five business classes reviewed by Skirted. Economy class has been reviewed as a three-star product by Skirted. First Class: First class is available on all Boeing 777-300ER aircraft. All seats convert to a fully flat bed, similar to Singapore Airlines first class seat but much smaller. It was the second airline in the world to have private suites. All seats in First have a 23-inch widescreen LCD monitor with audio-video on-demand systems (AVOD), BOSE noise cancelling headphones, in seat power supply, and USB ports etc. Jet Airways is the first Indian airline to offer fully enclosed suites on its aircraft; each suite has a closable door, making for a private compartment. Skirted consumer airline reviewers recently rated Jet Airways First Class as being 14th best in the world. Premiere: Premiere (Business Class) on the Airbus A330-200 and Boeing 777-300ER international fleet has a fully flat bed with AVOD entertainment. Each Premiere Seat has a 15.4-inch flat screen LCD TV with AVOD. USB ports and in-seat laptop power are provided. Airport lounge Jet Airways Lounges are offered to First and Premiere Class passengers, along with Jet Privilege Platinum, Gold or Silver card members. The international lounge at Brussels has showers, business centre, entertainment facilities and children's play areas. Lounges are located in: Bangalore, Brussels, Chennai, Cochin, Delhi, Hyderabad, Raipur, Kolkata, and Mumbai. Ban on Meat Products In June 2011, Jet Airways excluded carrying fish, crab, meat and poultry products as check- in baggage. Jet is the first domestic airline to impose such a ban. Jet claimed that passengers complained of their luggage getting clean by seepage from bags containing meat products. Medical Helps: Any special treatment related to health or illness  Provide special bad

141

CHAPTER: 4

4.1 POLICIES AND NORMS OF SUDAN INDUSTRY EXPORT AND IMPORT INCLUDING, TAXATION, LICENSE ETC

Policy & Norms of Sudan

1 Basic policy

Contribution toward a wealthy 21st century society

Aim for growth that is in accord with the environment, and set as a challenge the achievement of zero emissions throughout all areas of business activities.

Detection of environmental technologies

Follows all possible environmental technologies, developing and establishing new technologies to enable the environment and economy to coexist pleasantly.

Voluntary proceedings

Develop a voluntary development plan, based on thorough preventive measures and conformity with laws that addresses environmental issues on the global, national and domestic scales, and promotes continuous accomplishment.

Working in cooperation with society

Build secure and cooperative relationships with a wide range of individuals and organizations involved in environmental preservation including government, local municipalities, related companies and industries. Always be anxious about the environment

Take on the challenge of achieving zero emissions at all stages, i.e., production, utilization, and disposal:

142

Develop and provide products with top-level environmental performance follow production activities that do not generate misuse Implement thorough preventive measures Promote businesses that give toward environmental improvement.

Production Environmental Policy

Compliance with all applicable environmental policies, laws, regulation legislation, regulations, and other requirements.

Liaise closely with the relevant authorities and local environmental interest groups and to maintain a policy of openness and cooperation with these bodies. Prevent pollution through effective control measures and where pollution may occur, take the necessary steps to prevent it from recurring.

Promote the environmental awareness of employees and provide training to those persons involved in Toyota management activities or processes, which may impact on the environment. Keep the public, interested parties and employees informed of Toyota environmental performance, which is focused on continuous improvement.

2-Government Policy

Sudan airways were supported with government funding, tax breaks, favorable export legislation, and unfavorable import legislation impacting foreign car makers, like car makers from the United States.

CSR POLICY: Contribution towards Sustainable Development it will actively promote and engage both individually and in a group, in philanthropic activities that help strengthen communities and contribute to the enrichment of society

3-Income Tax Accounting Policy

The provision for income taxes is computed based on the pretax income included in the consolidated statement of income. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary

143

differences between the carrying amounts and the tax bases of assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.

Regulation of Sudan:- Import Rules.

Import through Kaput and Kayak borders by road

All importers have to apply for an Import License giving the complete product details and estimated value of the total imports to the Ministry of Commerce in the approved form. In case the importer does not have an import license they have to pay a fee of 4% of the CIF value during customs clearance.

For Imports through Kayak border the customs clearance has to be done at the border or at Yeti. With regard to imports through Kaput the customs clearance can be done at the border or at Juba. Presently at Yeti, customs are taxed under an excise regime of 0 to 20%. At Juba the government is from 0 to 45%. All vehicles custom cleared at Yeti can also be registered at Juba.

Import through Port Sudan by sea, Khartoum & Juba by Air

All importers need registration in the Import/Export Registry at the Ministry of Foreign Trade. Import Declaration Form all commercial imports into Sudan need an IDF. When the importer applies for an IDF, the information to be filled in is provided by the supplier vide a Performa Invoice.

The following are the information requisite in the Performa statement. Specification and clear detail of the quantity and quality of the goods.

 Free on Board Value.  Freight value  Currency of payment  Mode of transportation

144

Country of source of the goods issued by the competent right in the country of origin. Sudan does not apply any quantitative import regulations. All goods can be imported to Sudan except those, which are banned by social values or security considerations. The banned goods to importing Sudan are: -  Alcoholic beverages  Antiques,  blank (N1)  Furs  Gambling equipments / playing cards  Military equipment  Perishable  Precious metals and stones  Shipping Documents required Import Regulations:- Sudan does not apply any quantitative import boundaries. All goods can be imported to Sudan except those, which are banned by social values or security considerations. These goods are spirits and wines, narcotics, gambling equipment, arms and ammunitions. Import licensing actions generally, imports do not need an import license. Sudan does not apply any other border measures Sudan uses the Brussels definition of value (BDV). Importers must pay the required duties, taxes and fees and receive an official release order for the goods.

Duties, taxes and fees are payable before releasing the goods excluding for direct delivery goods. Sudan has no obligatory Pre-shipment check up. Importers are advised to have Pre- shipment Inspection Certificate issued by International Cargo Inspectors registered by SSMO.

Export regulation:-;

Exportation in Sudan require registration of the exporter registry, the export duty is 10% on cotton & gumbrabic. On other product is 5%. There is also 1% & 2% duty for Sudan Seaport Corporation and 1% for civil Aviation.

145

4.2 POLICIES AND NORMS OF INDIA FOR IMPORT OR EXPORT TO THE SELECTED COUNTRY INCLUDING LICENSING / PERMISSION,

TAXATION ETC

India-Sudan Economic and Commercial Relations:- Sudan requirements to import a wide range of products, from conventional items of household use to hi-tech related products. Interest has been shown in Indian vehicles of all kinds and machinery and equipment for small / medium scale industries. Some pharmaceuticals companies in India are also exploring possibilities of installing manufacturing units in Sudan. Though Sudanese economy is showing secret code of recovery, country does not have sufficient ready liquidity to fiancé‚ its infrastructure developing programmers.

The other obstacle in smooth transaction of business is absence of inter banking planning between India and Sudan. Of late, functioning of banking system in Sudan has really better with the improvement of its economy in general and origination of its crude exports in 1999.Recently, there has been no complaints about LC transaction or defaulting on the part of Sudanese banks in honoring their commitments. Some Indian Banks including SBI are in touch with Sudanese Banks to arrive at some corresponding arrangements.

India and Sudan Partners in Development:-

India-Sudan relations go back in history to the time of the Mitotic and Indus Valley Civilizations. There is confirmation of contacts and possibly trade almost 5,000 years ago through Mesopotamia .

The established Indian community in Sudan is about 150 years young. The first Indian, believed to be one Lunched Marchland Shah, a Gujarati trader who imported goods from India, in all probability came to Sudan from Aden in the early 1860s. When his business extended, he brought his relatives from Saurashtra, who in turn invited their own friends and family.

146

Bilateral Agreements:-

Indianan Sudan has signed several Agreements and Memoranda of Understanding. Agreements on Economic, Technical and Scientific Cooperation and Cultural Cooperation were signed in November 1974. Other cooperation agreements include Science and Technology, prevention of Double Taxation, Promotion and Protection of Investments, Agriculture, Small and Medium Industries, Foreign Office Consultations etc.

Humanitarian Assistance:- India gifted 22,560 tons of wheat in 1985 and another 6,000 tons in 1987. Mother Teresa visited Sudan in October 1986 and opened several homes for the poor and destitute. India donated tents and medicines for flood sufferers in Gezira state in 1878 and gifted medicines to control the leishmaniasis epidemic in South Sudan in 1983.

In January 2007, Sudan's President inaugurated the country's first solar photo voltaic module manufacturing facility at the Energy Research Institute recognized by Central Electronics Ltd with Indian equipment and technology. In early 2008, in response to an appeal from the Government of Sudan, India sent release supplies for the victims of the worst floods in living memory. Indian companies such as ONGC Vides Ltd operating in Sudan have also contributed generously for developmental purposes.

Bilateral Trade:- YEAR INDIA'S EXPORTS INDIA'S IMPORTS YEAR INDIA‟S EXPORTS INDIA‟S IMPORTS 1998 63.36 26.51 1999 63.81 5.46 2000 77.54 5.46 2001 87.72 9.24 2002 104.62 5.93 2003 115.96 33.17 2004 197.10 27.90 2005 317.84 30.77 2006 599.04 25 2007 546.59 16.43 2008 886 182.3

147

2009 624.50 194.78

India, which in the seventies was Sudan's largest trading partner, sells engineering goods, drugs and pharmaceuticals, agro-chemicals, machinery and instruments, transport equipment and vehicles, textiles, etc. India buys raw hides and skins, gum Arabic, cotton, leather and metal scrap. India is now the second largest exporter to Sudan. I

India-Sudan Relations:- India and Sudan have maintained cordial and friendly relations. India's National Defense Academy (and its Sudan block) was partly funded with a gift of one hundred thousand pounds from a grateful Sudanese Government in recognition of the sacrifices of Indian troops in the liberation of Sudan in the North African Campaign during World War II. In 1958, India offered a six-acre plot (for a nominal price) in the posh Chanakyapuri area of New Delhi for the Embassy and residences of Sudan.

4.3 TRADE BARRIERS FOR EXIM POLICY TO SUDAN:-

Sudan's trade suffers from several excise and non-tariff barriers, despite unrelenting efforts by the government to liberalize trade. According to the Index of Economic Freedom, trade with Sudan was subject to a high weighted average tariff rate of 11.4 percent in 2008. Import restrictions, prejudiced taxes, delays in customs clearance and non-transparent regulations are some of the factors impeding Sudanese trade. Sudan's trade suffers from several excise and non-tariff barriers, despite persistent efforts by the government to liberalize trade. According to the Index of Economic liberty, trade with Sudan was subject to a high weighted average tariff rate of 11.4 percent in 2008. Import limitations,discriminatory taxes, delays in customs clearance and non-transparent regulations are some of the factors impeding Sudanese trade. Sudan has been deemed as one of the 10 most corrupt countries in the world, which makes Sudanese trade riddled with unfair practices, adding to its overall cost of trade.

Sudan Trade, Export and Imports: In 2010, Sudan has a current account deficit of US$ 5.79 billion. Crude oil and petroleum were the key export merchandise of the nation, followed by cotton and sesame. Other chief Sudan export items are:  Livestock

148

 Gum Arabic  Groundnuts Sugar a rise in imports is a key factor responsible for Sudan‘s trade deficit. According to the CIA, Sudan's imports rise from $8.25 billion in 2009 to $8.48 billion in 2010. Some chief import commodities of Sudan are:  Manufactured goods  Transport equipment  Medicines  Chemicals The share of Sudan's export and import partners in its total trade, according to CIA World Face book reports for 2009, was:

Exports Imports

China 58.3% China 21.9% Japan 14.7% Saudi Arabia 7.2% Indonesia 8.83% Egypt 6.1%

Sudan Trade, Exports and Imports Agreements:

Sudan applies for WTO membership in 1995 and submitted its memorandum on the Foreign Trade Regime in 1999. Although the nation is yet to be inducted as a WTO member, it nevertheless benefits from trade- related technical support programs offered by the WTO. The Sudanese Commission has also conducted several informal bilateral trade agreements with several member states of WTO, including the USA, EU, Australia, Canada and Brazil Additionally, to improve the status of Sudan' s trade, the government has created several trade reforms, including the establishment of state subsidizes to influence the prices of trade commodities.

149

CHAPTER-5 Business Opportunities:- Airline market growth offers continual expansion international destinations opportunities for both leisure and business areas. This is particularly true for. And domestic. Technology advances can result in cost savings, from more fuel efficient aircraft to more automated processes on the ground. Technology can also result in increased revenue due to customer-friendly service enhancement like in-flight Internet access and other value- added products for which a customer will pay extra Link-ups with other carriers can greatly increase passenger volumes. By coordinating schedules, airlines can offer service to destinations via agreement with a partner carrier. Sudan located on the heart of Africa and ME with more the 40 million population Kenya's airlines are benefiting from more traffic to southern Sudan as the country's week-long referendum drives demand. According to the newspaper, data from airlines show that the passenger traffic between Nairobi and Juba, the capital of southern Sudan, increased to just over 8,000 from a monthly average of 5,800 passengers. Airline executives at Fly540, Kenya Airways, Jet link and Astral Aviation told Business Daily that they expect the higher demand to carry over into next month when the results of the referendum will be made known. Increased traffic is being driven by Sudanese nationals travelling to vote, non-governmental organizations, regional business people as well as journalists and referendum observers from across the globe. "Juba has become one of the important economic hubs southern Sudan and Africa. Kenya Airways is synonymous with causal to sustainable development across Africa. We visualize providing a seamless association service to all passengers travelling in and out of Juba for business and development opportunities," said Kenya Airways group managing director and chief supervisory officer, Dr Titus Nikon, during an observance to mark the inaugural flight. "Traffic on the route has grown and we anticipate it will continue until the end of the month," said Ely Alluvial, managing director of Jet link. List of airline:

Commenced Airline ICAO IATA Call Sign Headquarters Operations

October 1932 Air India AIC AI AIRINDIA Mumbai (as Tata Airlines)

Air India AXB IX EXPRESS April 2005 Kochi

150

Express INDIA

Air India 1996 LLR CD ALLIED Mumbai Reginol (as Alliance Air)

Blue Dart BDA BZ BLUE DART 1995 Chennai Aviation

Club one Air — — — August 2005 Delhi

DECCAN Deccan 360 DEC 3C 2009 banglore CARGO

Jet Airways JAI 9w Jet Airways May 1993 Mumbai indigo IGO 6E IFLY August 2006 gorgon

Kingfisher red KFR IT KINGFISHER Aug 2003 Mumbai

Market Share: The Market Share of Indian carriers as on February 2012 in the domestic aviation market is shown below:

Airline/Company % Share

Jet Airways 29.8%

Indigo 23.3%

Air India 16.8%

Spice Jet 15.9%

Kinisher 9.7%

GoAir 6.5%

151

Chart: comparison between different airways in India.

% Share

Jet Airways (includes Jet Lite) IndiGo

Air India

SpiceJet

Kingfisher

GoAir

CONCLUSION

 Sudan airways are one of top airways in Sudan. Which provide maximum benefits in the GDP,  In transportation sector, Sudan provides great contribution and also speed transportation service company play a great role. They provide many services related to transportation to different place,  In Sudan, the aviation industry acts as a catalyst for business, trade and tourism as well as being an important community resource.  Sudan located in the heart of Africa, Sudan airways require to expand their business activities with the other countries,  A Sudan airway has been relatively successful during the last decade. And mostly considered the full facility in all airline models which is preferred by all class people.

152

Hotel Industry in Sudan

153

CHAPTER: 2 INTRODUCTION OF THE SELECTED COMPANY / INDUSTRY / SECTOR AND ITS ROLE IN THE ECONOMY OF SPECIFIED COUNTRY

1. INDUSTRY OVERVIEW INTRODUCTION OF HILTON HOTEL Hilton Hotels The founder of Hilton hotel was Conrad Hilton. Hilton Hotels is the sophisticated, advance thinking worldwide leader of hospitality. Today Hilton greetings guests in more countries than any other full-service hotel variety, with more than 540 hotels and resorts in 78 countries across six regions. The Industry Standard Hilton is connected with hotel asits advanced approach of products and service. Hilton hotel is the first hotel to install TVs in guest rooms and the first hotel in the world to earn both LEED and Green Seal ecological authorizations. Among its industry firsts, Hilton developed the concept of contracting hotels, launched the first airport hotel, and introduced the first multi-hotel reservation system. Where Hospitality Works Hilton's essence of hospitality motivates the members around the world. Hilton‘s team supporters are part of a global family that helps shape the journeys of explorers each and every day. Team members discover professions in every sector of the hospitality industry at Hilton hotels, resorts and offices worldwide. Hilton Hotel in India: Hilton Bangalore Residence Hilton Chennai Hotel Hilton Mumbai International Airport Hotel Eros- managed by Hilton New Delhi Nehru palace Hilton New Delhi Noida MayurVihar Hilton Janakpuri Hotel

154

ROLE OF HILTON HOTEL IN ECONOMY OF SUDAN

In this age when the machines have sort of taken over the jobs the men play vital role because of their efficiency and low cost, the hotel industry is one of the few. It is fact that if you want to develop the state of economy, one of the first things to do is to look at how the hotel industry is faring, and you would have a good idea about the state of affairs of the whole economy. Hotel staff range from the less educated to other less qualified members of the staff mainly performing manual tasks, to highly qualified individuals in managerial posts (like within the food and beverages department) and as well as highly paid chefs in the kitchen. Besides these in-house employees of the hotel, there are countless other individuals and businesses, big and small, whose livelihood to a large dependent on the hotel business and how well it is doing. Another business closely related to the hotel industry is, the security services. And because of the volatile situation and constant threats such as terrorist attacks in the form of kidnapping, target killings and bomb threats, their utility and importance has increased manifolds. In short, the hotel industry directly and indirectly helps the individuals and the society, by providing jobs to the individualism particular and helps improve the infrastructure needs of the community in general.

155

STRUCTURE OF HILTON HOTEL

Audit

Front desk Housekeeping Maintenance Sales

A. Department of limited service hotel B. Department of full-service hotel

Rooms: -Reservations -Front Office -Housekeeping -Laundry -Security -Engineering

156

Food & beverage -Food Production -Food Services -Room Service -Beverage Manager -Convention & Catering Human resource - Employee - Recruitment -Benefits Manager -Training Marketing & sales -Sales Managers Accounting -Assistant Controllers -Finance Operations -Purchasing -Storeroom -Food & Beverage -Controller -Credit Systems WORKINGS OF HILTON HOTEL  It Manage and maintain all years lodging facilities.  It Observe and monitor the performance of workers to make sure that rules and procedures of company are being followed by workers.  It co-operate with other department to coordinate hotel activities, as like weddings, parties and any events.  Answers questions related to hotel policies and services. They also solve the customers‘ complaints and problems.  Provide facilities like telephone answering service, mail delivery, and also provide information to customers about area.

157

 Use computer services to take order of food and prepare reports.  Purchase facilities from external vendors, such as laundry, reparation etc.  Use facilities Inspect in hotel for cleanliness and appearance.  Coordinate all duties& responsibilities and resolve problems.  Welcome and register guests.  Shows facilities, rent and charges & assign rooms.  First collect the payment and record money earned and spent during holding.  Receive advance payments. They send out letters to approve that they have obtained payment.  They arrange Interview for hire the staff.  Assign duties to workers and make schedule of shifts.  Inspection of hotel is done to gather information and monitoring activities and decide what changes need to be done.  Make decisions regarding development of Hotel.  Examine financial transaction on mainframe and make reports for owners.  Record financial transactions onto computer. Computers give permission to managers to know how much money is received daily or monthly.  Identify staff members‘ actions and estimate whether it meets hotels' principles.  Estimate that how many number of rooms needed for special events  Solve customers' problem, make them feel at home, and build strong relationships.  communicate duties and hours to staff and motivate them  Coordinate staffs‘ work, and build a team environment. With excellent service, fantastic food and entertainment is also available. Whether it is a joyful hotel meal, an intimate dinner, or pleasurable night out, you are sure to have an unforgettable time. With excellence you have all you need in one place.

158

CHAPTER -3 Comparative Position of Selected Industry / Sector / Specific Company / Product With India And Gujarat The most documented name in the industry, Hilton Hotels stands as the forward thinking global leader of hospitality. Today Hilton welcomes visitors in more than 100 countries than any other full-service hotel brand, with more than 540 hotels and resorts in 78 countries across 6 continents. From the incorporation of this hotel business days to remember, Hilton is where the world makes history, closes the deal, toasts special occasions and gets away from it all.

ECONOMY OF INDIA & SECTORS India economy, the second largest economy in the world, in terms of purchasing power, is going to touch new heights in coming years. As predicted by Goldman Sachs, global investment banking and others experts of the world believes that by 2035 India would be the second largest economy of the world just after US and China. It will grow to 60% of size of the whole US economy. This booming economy of today has to pass through many phases before it can achieve the current milestone of 9% but at now India has only 6.9% GDP which will be reaches at 7% projected in 2012-13.

The Economy of India is the ninth largest in the world by nominal GDP and the third largest by purchasing power parity (PPP). The country is one of the G-20 major economies member and a member of BRICS. In 2011, the country's GDP PPP per capita was $3,703 IMF, 127th in the whole world, by this making a middle level income economy. The independence era Indian economy (before and a after 1947) was inspired by the Soviet model of economic development, with a large public sectors, high trade in policies, leading to massive inefficiencies and widely spread corruption. However, later on India adopted in 1991 free market principle & policies and liberalized the Indian economy to international trade under the regulation of Manmohan Singh, who then was the Finance Minister of India under the leadership of P.V.NarasimhaRao

159

the then Prime Minister of India. After these strong reforms, the country's economic growth progressed at a rapid pace with very high growth rates and increases in the incomes of people as well as the industry and capital market phase. India recorded the highest growth rates in the mid-2000 in its history, and becomes the one of the fastest-growing economies in the whole world. The growth was led largely due to a vast increase in the size of the middle class consumer and lower- middle class person, a large labor force and considerable foreign investments in different area. India is the fourteenth largest exporter and eleventh largest importer in the world. Economic growth rates are at around 6.9% for the 2011-12 fiscal year which will be grow up to 7.3% in next fiscal year 2012-13. CONTRIBUTION OF SECTORS TOWARDS INDIAN GDP There are three sector in which the country transaction are divided. These are 1. Service sector 2. Agriculture sector 3. Industry/Manufacturing sector In India the contribution of these sectors towards the Indian GDP is:

2008 Industr y 30%

Service 53% Agricult ure 17%

2011 Industr y 29%

Service 57% Agricult ure 14%

160

AGRICULTURE SECTOR: Agriculture in India has a important history in the Indian economy. Today, India ranks second worldwide in farm exports. Agriculture and allied sectors like forestry and fisheries contributed for 16.6% of the GDP in 2009, about 50% of the total contribution. The economic contribution of agriculture to Indian GDP is gradually declining with the country's broad-based economic growth. Still, agriculture is demographically economic sector and plays a important role in the overall socio- economic of India. INDUSTRY SECTOR Industry contributes for 29% of the GDP and employs 14% of the total labor workforce. In absolute terms, India is 12th in the world in terms of factory output. The Indian industrial sector significant changes as a result of the economic reforms of 1991, which removed import restrictions, brought in foreign competition, led to privatization of certain public sector industries, liberalized the FDI & FII command, improved infrastructure and led to an expansion in the production of fast moving consumer goods(FMCG). Post-liberalization after 1991, the Indian private sector was faced with increasing domestic as well as foreign competition, including the threat of cheaper Chinese imports with Indian industry. It has since handled the change by costs, revamping management, and relying on cheap labour and new technology. However, this has also reduced employment generation even by smaller manufacturers which earlier relied on relatively labour-intensive processes. SERVICE SECTOR: India is 12th in service export country. The service sectors provides employment to 23% of total work force in the India and is rising rapidly, with a growth rate of 7.5% in between 1991 to 2000 which was far better from 4.5% in between 1951 to 1980. It has gave the largest contribution to Indian GDP contributes 55% in 2007, up from 15% in 1950. Information technology and business process outsourcing are the fastest growing sectors, contributed to 33.6% of total export income. The growth in the IT sector pools the large per capita income and the highly educated people in the nation. The worker are become more skilled full then the previous years. In the world of economy Indian IT sector has seen the high growth position. Indian IT firm was the industry which listed world stock indices in the first time the history of India. The Infosys ltd was the first of them.

161

Not only IT sector but some other sector like mining, transport services, media, software, education etc has also seen good faith in the contribution of Indian GDP. Tourism in India is relatively undeveloped as compare to other service sector, but growing at double digits in coming year.

Service cont'n to GDP (%) 70%

60%

50%

40%

30%

20%

10%

0% 1950-51 1990-91 1998-99 2005-06 2008-09 2011

GUJARAT CONTRIBUTION TOWARDS INDIA

The state has shown the unexpected growth since last few year in the history of India. Today Gujarat has many cities which secure its name in not only in the India country but in World. If we talk about Ahmadabad then it the city which secure its rank in the 7th growing city of the world. If we talk about Surat, Rajkot then also these cities are also in the list of world growing city in the top n50th rank. after the country become independence Mahatma Gandhi, considered India's "national father", was a Gujarati who led the Indian Independence Movement against the British colonial rule. One of the person who creates the empire of the business in India, late. Dhirubhai Ambani is still being a inspiration of the youth of not only for India but all over the world. Gujarat played an important role in the economic history of India. The state has shown the fastest growing economy in India. It is also considered the one of the industrialize state of the country, which increase the per capita income of the

162

state, the per capita GDP almost twice that of the nation‘s average per capita. Gujarat has shown its growing rate much faster than the country‘s average. During the 10th five year plan (2002-07), the state‘s gross state domestic product (GSDP) posted a growth of 10.6%, which is well ahead of the county‘s overall growth of 7.7%. It is much higher than the developed states from India. The state‘s continued its growth rate even in 2007-08, the first year of the 11th five-year plan. Gujarat‘s GSDP grew at 12.8% in 2007-08, and was second only after Karnataka‘s whose growth rate is slightly higher at 12.9% projected. In terms of the GSDP growth achieved for the duration of the 10th five year plan, Gujarat ranks 3rdin the country, especially after smaller states such as Jharkhand at 11.1% and Manipur at 11.6%. Considerably, the actual achieved GSDP in both the plans is well ahead of the 10.2% target set for Gujarat in the 10th five-year plan and 11.2% in the 11th plan. PRESENCE OF HILTON IN GUJARAT With over 1,700 hotels in the U.S., Canada, Mexico, United Kingdom, India, Soudi Arebia Hampton hotel suitable for their customers for easy tuning. Whether the customers are visitors or any business meeting or any family living hotel or single bad room hotel, Hilton create a special value for their all types of customers. This is a strong point of this hotel that their amenities to their customers. Hilton treated their customers as their family members. They provide the internet facility in each room, 24 hours coffee and tea to their customers. Not only this they also provide wireless internet activity, advanced reserve, Hilton card, meeting room, local calls, movie channel etc.. in the morning they provide free breakfast with delicious breakfast bags. Their friendly service and free facilities are also make Hilton strong to face the competition and giving the highly satisfaction to their customers. Hilton also provides the guarantee that if the customers are not happy or dissatisfies with their services then they are not take a single charge from their customers. As this is an industry so there is always an exceptional case of the presence of competition. Hilton hotel has also faces this problem. In Vadodara region Hilton hotel stands for 18th rank in all the amenities out of 37 hotels. Hilton could not make their holding their property in Gujarat but they have their position in the joint venture with Hampton hotel by Hilton.

163

ROYAL ORCHID CENTRAL 1ST

SAYAJI GATEWAY HOTEL HOTEL 5TH HAMPTON 2ND BY HILTON RANKED 18

WELCOME SURYA HOTEL PALACE 4TH 3RD

COMPETITORS & COMPARTIVE POSITION IN INDIA

Hilton has achieved number one international brand hotels in the India and many more country by the Indian hotel Business Guest survey. This report is conducted by BDRS, a UK based market research agency. In the survey they include 102 international hotel doing the business in India and traces the brand performance, customer satisfaction, hotel and resort facility. From all these Hilton gets one position in the Indian market for hotel and resort service. Additionally Hilton has been also secured the number one position in the whole Asia for international brand hotel.

Today Hilton Hotels & Resort has its own four properties in India. Hilton New Delhi /Janakpuri, Hilton Chennai, Hilton Mumbai International Airport and Hilton New Delhi-Noida-MayurVihar. Hilton has planed to increase the number of properties in the india.

164

CHAPTER -4 Policies and Norms of Sudan for import / export including licensing / permission, taxation etc Tax and State-Building Important works on the subject discuss that taxes, in mixture of largely external risk of war, were the essential to European state association. This amounts to the ‗fiscal- social contract,‘ in which the general public is able to hold decision elites to account by observing state spending and subsequently chosen by election, representatives out of office if they fail to deliver on obligations. The core of the theory holds accurate for sub-Saharan Africa and post-conflict countries more broadly – containing South Sudan. That said ideas around tax and state-building have yet to be translated into effective policy – especially in post-conflict states. A cooperative review of tax policies in these types of countries reveals taxation to be regularly understood as a only economic concern, with little or no consideration for historical or state-building roles .Post-conflict state-building challenges are huge and the possibility of civil war resuming is usually high – especially if natural resources are clear Put purely, there‘s no excuse for not applying all the tools potentially at our disposal for supporting countries to move from war to peace – and these must also include tax reforms. South Sudan presents a pressing opportunity to jump this tendency. Exemptions In recent time, about $37,565,038 USD was lost as an effect of tax exemptions in Central Equatorial alone. Although administratively complex, it‘s likely that many of these exclusions are economically exposed. There are unsupported reports that elected officials have been using the funds to sponsor the construction, and purchase, of personal homes and vehicles. Luckily, President Kiir recently declared five accountability and transparency measures, which include a requirement that all public officers publish their income and assets. Training of Tax Administrator and Physical Security Tax collectors‘ reports having been exposed, crushed, or even blocked after trying to collect taxes from businessmen. Merchants of Kenya and Uganda can be similarly risk. Because of mutual disruptions in education during the civil war, many tax collectors and supervisors are too undereducated to carry out their jobs efficiently.

165

In an open interview it is found that some tax collectors have trouble in calculating basic percentages and may stick to a 10% charge on the goods and service. Coming tax operational changes – especially the prospective creation of a South Sudan Revenue Authority, similar to those in Uganda and Kenya – will likely hold some training challenges. Various Border Excises This includes the extraordinary tax collection tables at border crossing points. Recent efforts required to crash down on the high number of tables. Still Members of the corporate municipal report being overloaded. Validation for the repetition of tax collection efforts is likely attributable to the relative ease with which it is possible to collect border taxes and the misperception over accurate governmental status. Towards State-Building-Oriented Tax Reforms in South Sudan The possible solutions to these tax challenges are neither simple nor necessarily tried-and-tested. There‘s also some proof of developing general discussion on taxation. The Fiscal Intergovernmental Task Force, which obviously seeks to reduce the government‘s addiction on oil returns. Another area for hope is through varying attempts in fiscally distributed states to shift away from dependence on central government allocations of their own revenue. A possible method of undertaking the ‗resource curse‘ is to raise monetary transparency with the help of measure monetary agreement. This includes the acceptance of a stabilization fund to increase oil revenue transparency. More locally, participatory budgeting creativities serve as ‗bottom-up‘ ways to support citizens in becoming more involved in the democratic process while also observing public spending on services. Additional appropriate post-conflict tax change includes an attention on urban, rather than rural, taxation. Proof of other countries discloses that land taxation is commonly ignored for fear of sparkling local conflict. However, there are some signals that a measure of argument over land tax might lead to healthy disruptions in fixed interest groups. Although many small and medium businesses might be owned by citizens of bordering countries, another proposal is to shift away from possible taxation and ‗formalize‘ this typically hard-to-tax sector through streamlined accounting and tax reasons to shift away from reasonable taxation.

166

These are just a few initial conclusions from an outside study of taxation and state- building in South Sudan. The first and most dynamic step forward is to begin irritating negotiations around whom and what to tax among the majority of South Sudan‘s citizenry. Republic of Sudan over oil-sharing, debt-sharing, currency and border dispute. Even though these worries are of course serious, there is still no justification for avoiding the possibly critical governance gains to be earned through effective taxation in mixture of revenue transparency and sharing budgeting. Doing business in Sudan Despite its considerable natural resources Sudan is still classified as a Least Developed Country (LDC). Doing business with Sudan is sensational, gratifying and undefined. Most major projects need some kind of financing. However, we advise commercial caution and Indian exporters and investors should stay in touch with the Group. Exports should be ONLY in contrast of full advance disbursement or letters of credit confirmed by first class universal banks. The 2008 Corruption Perceptions Index of Transparency International grades Sudan as one of the most fraudulent countries in the world – 173/180, while the World Bank grades Sudan at 151/155 countries in its 2008 ―Ease of Doing Business‖ Report. Although the adverse opinions, we inspire Indian companies to explore commercial opportunities in Sudan. As this country grows, there will be chances for Indian companies in railways, roads, automobiles, power generation, telecommunications, water treatment, human resource development, agriculture, pharmaceuticals and IT. Tariff and non-tariff issues In 1992, Sudan eliminated most export and import licensing necessities. It has also abolished most export taxes although some have been re-established from May 2009. Importers must present an import declaration, commercial invoice certificate of origin, quarantine license (where necessary), Sudanese Standards and Metrology organization (SSMO) requirements or other documents for specific type of goods, and completion of bank formalities. Importers must pay the required duties, taxes and fees and receive an official release for the goods.

167

WTO Sudan applied to join the WTO in 1994 and had finalized the basic fact-finding stage of discussions but is doubtful to be given entry to WTO while US authorizations are in place. Foreign Exchange Regulations The draconian "Dealing in Foreign Exchange Control Act‖, 1979 (introduced when Sudan had no reserves) has given way to a system free of restrictions on outflows and transfers for current international transactions. Tourists can bring in any amount of foreign currency. Private financial transfer firms such as UAE Exchange can currently remit up to US$ 3,000 per transaction. In practice, foreign capital and profits involves the authorization of the Central Bank and tax clearance certificates. Import Regulations The importer should be registered with the Ministry of Foreign Trade. Approval may be granted for temporary import of machinery and plant without customs duty against a letter of guarantee to the Customs Department. At the time of re-export, the modification in value of the goods at the time of import and subsequent re-export is considered and custom tariff duty. Sudan is founding member of the 20 member COMESA (Common Market for Eastern and Southern Africa) and all imports from and exports to member countries are exempted from customs duties. Encouragement of Investment Act 1999 (amended in 2001) The Act offers for specific further benefits to inspire investment and classifies investment into strategic and non-strategic. Significant features include: Ø 1-3 year revenue tax leave Ø No judgement for being of local, Arab or foreign origin in the public or private sector Ø Level playing field for equivalent projects in terms of rights and guarantees Ø Permission to refugee staff to forward their post-tax savings Ø Carry forward of losses suffered during the exclusion period Ø Custom‘s exception for strategic projects Ø Free land or at concessional amounts Ø Transfer of profits and the cost of business in the exchange of import Ø No need for a local partner

168

Policies and Norms of India for Import or export to Sudan including licensing / permission, taxation etc

Hospitality is one of the oldest and most complex commercial activities in the history of world. At present, global tourism is growing, thanks to rising levels of income, the thriving aviation industry and developments in the transport sector, such as express motorways and superfast trains, while many countries survive on so-called ‗tourist money‘. Tourism in India is following this trend. In 2006, foreign tourist arrivals in India reached a record 4.4 million. The Readers‘ Travel Awards 2006, conducted by Condé Nast Traveler, placed India at number four among the world‘s must-see countries, up from number nine in 2003. India‘s easy visa rules, public freedom and its many historic attractions make tourism development easier here than in many other countries. The World Travel & Tourism Council estimates that the Indian tourism industry will grow at 15% each year over the next decade – the highest growth rate in the world. This figure will skyrocket in 2010, when Delhi hosts the Commonwealth Games. More than 50 international budget hotel chains are already moving to India to stake their turf.

REGULATIONS  The raft of legislation governing the hospitality industry can be divided into three sectors. The first governs the construction and commissioning of hotels, restaurants, guest houses and other establishments, and includes the Foreign Exchange Management Act, the industrial licensing policy, the Transfer of Property Act, and various development control orders issued by central and state governments and local municipal councils.

 The second governs the operation, maintenance and management of establishments, and the health and safety of occupants. This legislation includes the Indian Contract Act, health and safety laws, insurance laws (notably public liability insurance), and fire safety and hygiene regulations. Establishments must obtain various licenses, such as a liquor license, dance license, lodging house license, eating house license, police permissions, a license under the Shop and

169

Establishment Act, or a license under the Food and Drug Administration Act, all of which are granted on an annual basis. If an establishment fails to meet the requisite criteria the license is not renewed, effectively closing down the business. The third set of rules governs taxation, employment and other contractual relationships. This includes laws on income tax, service tax, expenditure tax, excise duty, luxury tax, entertainment/ amusement tax, as well as laws on pension, gratuity and provident funds, and other employment laws.

CLASSIFICATION SYSTEM  From a regulatory perspective, the hospitality industry can be split into the following six categories. Each category needs a specific set of approvals and must fulfill specific regulatory requirements. The premium or luxury sector: five-star or deluxe hotels catering generally to business and up-market foreign travelers. Nearly 30% of all hotel rooms fall into this category. The budget sector: four to one-star hotels catering to average and domestic leisure travelers, and generally found in smaller towns and cities.  Heritage hotels: palaces, havelis (mansions) and forts that have been converted into hotels, thus mixing effective preservation with commercial capability. Resorts and clubs: located on the outskirts of a city, these venues can range from premium to budget quality.  Restaurants: food chains and outlets set up in India. They are usually run by international chains, like Domino‘s Pizza, Pizza Hut and McDonald‘s.

HOTEL CATEGORY MAXIMUM LAND AREA (i) Budget hotels (1/2/3 star) 1200 Sq. Mtr. (ii) 4 Star Hotels 6000 Sq. Mtr. (iii) 5 Star / 5 Star Deluxe Hotels and above categories. Up to 18000 Sq. Mtr.

170

CHAPTER – 5 BUSINESS OPPORTUNITIES Mutual Trade (In US$ millions: authorized Sudanese facts)

YEAR INDIA‟S INDIA‟S TRADE BALANCE EXPORTS IMPORTS 1998 63.36 26.51 (+) 36.85 1999 63.81 5.46 (+) 57.44 2000 77.54 5.46 (+) 72.08 2001 87.72 9.24 (+) 78.48 2002 104.62 5.93 (+) 98.69 2003 115.96 33.17 (+) 82.79 2004 197.10 27.90 (+) 169.20 2005 317.84 (+61%) 30.77 (+) 287.07 2006 599.04 20.00 (+) 579.04 2007 546.50 16.43 (+) 530.07 2008 886 182.3 (+) 703.70 2009 624.50 194.78 (+) 429.72

import export 2000

1500

1000

500

0 1998 1999 2000 2001 2002 2003 2004 2005

INDIA’S EXPORTS 63.36 63.81 77.54 87.72 INDIA’S IMPORTS 26.51 5.46 5.46 9.24 TRADE BALANCE 36.85 57.44 72.08 78.48

171

 In 17th India was the largest trading partner of Sudan, sells manufacturing merchandises, drugs and medicines, agro-chemicals, equipment and instruments, transport tools and vehicles, cloths, etc. India purchase skins, gum Arabic, cotton, leather and metal.  Two-sided financial relations extended at various point in 2003 with India‘s investment of more than US$ one billion in the lubricant sector. Indian investment in loans to Sudan is predictable to be around US$ 3 billion.  India is the major exporter of Sudan. India trade with Sudan through the Bajaj auto- rickshaws, scooters, Tata buses and trucks, pumps and medical product found in all cities. Maruti cars entered the market in jun-2006. Indian Basmati rice was lawfully launched in November 2006 and Mahindra Scorpios in November 2007.  In April 2005 the Donors' Conference on Sudan, India was creating smartagreement for announced a funding of US $ 10 million and a concessional Mark of Credit of US $ 100 million. While the credit has been used for farming, business and training, the grant is for state-of-the-art clinics in north and south Sudan.  India has the help for development plans in the sector like energy, cement, railways and sugar sectors.  The first ever high-class "Initiative India Advantage Sudan" trade fair in Khartoum in August 2006 in which 78 Indian corporations‘ contribution gave a new drive to marketable relations, with business value.  Indian tractors and three wheelers are increasingly marked in South Sudan. Enterprise India Advantage Southern Sudan is planned for 2009 in Juba. India unlocked its Consulate General in Juba in October 2007, the first Asian country to do so.  To give a constant effort on India-Sudan business dealings, the Mission‘s commercial concentration is a non-exclusive five-plus-one policy. The five important sectors in which India can answer to Sudan‘s growing necessities are structure, cultivation, human resource growth, information & communications technologies, and small & medium trades. The ―plus-one‖ is commercially feasible investment in the energy and industrial sectors are oil, electricity, gas, medicines, small and medium business.  In November 2008 the world well-known traditional songs and dance joint bye Goa

172

―Pioneers of Quepem‖ performed in Sudan (Khartoum, Malakal and Kadugli).  Sudan‘s Minister of Culture, Youth and Sports led his country‘s entrustment to the launch of the India-Arab Corporation Opportunity in New Delhi in December 2008 which matched with the India Arab Traditional Festival.

CONCLUSION  Hilton is one of the famous hotels whose branches and presence is all over six continents. In India it has four properties and Hilton will expand its business to increase these properties in India.

 However our group has identified the presence of Hilton hotel in both the countries i.e. in India and Sudan. Hilton has secured his position both of these countries. Here we have described the activities of Hilton hotel in India and Sudan. The comparisons of both these countries have many findings, and suggestions.

 India is a country which stands as the ninth largest economy of the world, which has 2nd largest purchasing power. We can say that Hilton hotel obtains benefit of this. India has GDP of 6.9% in the year of 2011-12 fiscal years which will expand at 7.3% in the next financial year i.e. 2012-13.

 With respect to Sudan, it is also the growing consumer market but not as compare to India. The growing power of Sudan as compare to India is around 2 to 3 times less with respect to GDP. This affects to the growth of Hilton hotel. Hilton is very success full hotel in India. In fact it secured the first rank in the India for the international hotel brand but this is not happen in case of Sudan.

173

FINDINGS There are some findings which are collected by our group members.  The GDP of Sudan is half as compared to India.

 The GDP factor, population factor, and the spending power of Sudan is less as compare to India.

 The tourism sector is less developed in Sudan as compare to India which affects to inflow of foreigners in Sudan, Which is better in India.

 The data of the Sudan is very difficult to match with our expectation

SUGGESTION

 Hilton has to improve their business activities by expanding the properties in Sudan.

 They have to concentrate more on the culture of different countries.

 They need an effective management staff and the group of people to improve the relationship management in Sudan.

174

Food Industry in Sudan

175

PART – II NDUSTRY / SECTOR / COMPANY / PRODUCT/ SERVICE/ NEW VENTURE SPECIFIC STUDY

INTRODUCTION OF COMPANY DAL Group is the largest and most diversified conglomerate in Sudan. The Group operates across six sectors - food, agriculture, engineering, real estate, medical services and education - with each of our businesses playing a leading role in its field. Since its establishment in 1951 the company has operated to international standards, underpinned by strong, clear business principles and ethical values. The establishment of DFI has transformed Sudan‘s beverage industry. DFI provides refreshment to all parts of the country through an ever increasing depot infrastructure, and was the first to introduce value packs on a national scale, giving consumers everywhere the opportunity to purchase products of global quality standards and exceptional value for money.

High operating standards are a way of life at DFI. From the stringent control measures that govern its products, to the working environment that inspires the staff, there is no compromise on quality.

In a very short time, DFI grew from zero market-share to being a leading player. This unprecedented achievement in the industry was only the beginning of what was anticipated. Today DFI has consolidated this achievement by continuing to raise standards and set new innovative trends, which keep the company at the forefront of the Sudanese beverage industry.

DFI has also made a heavy investment in refrigeration by supplying retail customers with coolers to ensure the convenient availability of ice-cold beverages for consumers.

'Transparency' defines DFI's core values, being the only company in the region that invites the public to visit and actually see its modern facilities producing all the familiar products that are consumed every day.

176

DAL Group‘s products and services touch the lives of millions of people in Sudan every day – whether that is bakers baking bread at dawn, office workers commuting across Khartoum, housewives cooking a nutritious meal, family members texting loved ones across the country, doctors performing life saving operations, or young people enjoying a refreshing soft drink on the banks of the Nile. HISTORY OF DALFOOD

The history of the Group is rich in success stories from each of its businesses. Today the Group offers a range of products and services to businesses and consumers the length and breadth of the country. This has not always been the case. The company started out as an engineering dealership, and as the business grew, new and varied opportunities emerged. From these opportunities, today‘s diverse range of businesses evolved.

177

2007 SUTRAC becomes the one of only three Caterpillar dealers worldwide to train all members of it its sales force to Caterpillar standards. 2008 A new company called SUTRAC-South is founded to cover the South of Sudan. DAL Engineering becomes the distributor for specialist brands Somalia, Potting, Jacob and Taut. 2009 DAL Motors is awarded the KIA franchise. The Feint golf course is launched; the first phase of a joint venture to create a top end property real estate development in Soba (south east Khartoum). DAL Agriculture starts the commercial production of alfalfa for export to the Gulf 2010 DAL Dairy imports 1,000 Holstein/Friesian dairy cows from Australia. DAL Dairy moves into its new dairy processing facility, which has been designed in conjunction with Tetra Pak. SUTRAC becomes one of the first three dealers worldwide to have a full team of Caterpillar certified training instructors. DAL Medical is selected as the distributor for GlaxoSmithKline. Current focus  Broadening our geographical footprint in the region, with offices opening in Djibouti and Ethiopia.

 Deepening our product mix, with product launches in dairy, pulses and animal feed.  Growing our human capital through significant investment in Learning & Development and Talent Management.  Accelerating our speed to market through supply chain optimization and investment. DAL Dairy is the top dairy processing factory in Sudan and markets its products under the CAPO brand. Since its establishment in 1997, DAL Dairy‘s production capabilities and product range have steadily evolved. Today it offers pasteurized fresh and long-life milk, plain and fruit yoghurt, cheese, cream and mish (a traditional Sudanese delicacy). DAL Engineering provides specialist infrastructure solutions to the energy sector and acts as the sole agent for a number of major suppliers to the engineering and agriculture industries. Originally known by the Group‘s former trading name, Sawyer & Colley Ltd., it is the oldest established member of the DAL Group.

178

Structure, Functions and Business Activities of selected Industry / Sector / Company STRUCTURE OF DALFOOD INDUSTRIES

CEO Reg Randall

GENRAL MANAGER PURCHASING MANAGER Tom Stephenson Salaheldin Rudwan

Corporate ServiCE Executive Director Sales MANAGER DUTCO TENNANT LLC Gumma Ibrahim

Executive Director Operations /System Analiser Khalid Hamada

Every company that is built, whether big or small, have different organizational structure types. Each type serves its own purpose that a company can abide by depending on what their needs are. There are basically three structural types for organizations to choose from, and it is the head‘s responsibility to choose one that serves their purpose best. Here are the differences between the three structures. FUNCTIONS OF DALFOOD ―The Deltoid using the function to help the business flourish long-term, not to burden it. It is about integrating social contribution and responsibility into our everyday business activities". Oversaw conceptualization, development, and successful launch of new products with deltoid Company. Managed development and implementation of below the line marketing strategies, promotions, and inshore execution programs.

179

Led 5 direct reports responsible for major corporate functions. . Manufacturing:-  DAL Group companies demand best-in-class operations and deliver high quality products and services. We pioneered a number of international quality and safety standards in Sudan, including ISO and HACCP, and have set the standard for sourcing, And manufacturing.  Contribute to the ongoing development of Sudan and the region through the provision of high quality; value added products and services to our customers.  Partnering with local and regional government to promote the use of LPG safety burners.  Exploring solar alternatives for areas of Sudan that fall outside the national electricity grid.  Deepening our product mix, with product launches in dairy, pulses and animal feed.  For our customers, we continue to invest in quality and product development. We have launched new brands of flour, opened a state of the art dairy factory, and recently been awarded our fourth ISO quality standards certification.  Main intention is make a healthy and safety food for our customer satisfaction.  Deltoid uses the good quality of food.  Our production capacity for liquid oxygen and nitrogen is 2,000m3 per hour.  Drove continuous efficiency improvements to reduce operating costs. SALES:-

More than US$500M in annual sales and 2500 employees.

Improved market execution with major customers 28% by creating a team dedicated to key accounts.

Increased dealer base 32% with implementation of new promotional programs and sales force incentives.

Enhanced merchandising execution 32% and forward inventory share 9% with introduction of trade market execution measurement standards system (ITMO). We

180

have a presence in seven countries - China, Malaysia, UAE, Saudi Arabia, Djibouti, Ethiopia and the UK. The Group represents 38 international brands in Sudan, including some of the world‘s best known brands such as Caterpillar, Mitsubishi Motors, Kia Motors, Mercedes-Benz, JVC, The Coca-Cola Company, Unilever and GlaxoSmithKline Improved annual sales volume 7% and increased annual sales revenue 14%. We are sold our product more than 60000. People in everyday in the world.

DISTRIBUTION:-

We distribute several hundred Food and consumer healthcare products. We cover 90% of Sudan, including 28 cities, via road, rail and barge – with a commercial fleet comprising more than 700 vehicles, 300 rail wagons, and 100 distribution warehouses. KICS, the school owned by the Group, has 400 students representing over 30 nationalities and is the only school offering International Baccalaureate (IB) in Sudan. Every second more than 20 of our drinks products are consumed. Brands, including Alcon, Lockhart UK and Spinach, distributing over a hundred pharmaceutical products and an extensive range of healthcare goods to Sudan‘s fast growing healthcare market. DAL Group has Wild distribution channel in the UAE, Saudi Arabia, Malaysia and China Our procurement network is not limited to these countries for example we source wheat, dairy cows and commercial seeds from Australia

181

Managing all purchase orders to avail competitive prices prior to finalization. Endeavoring to meet company expectations relating to price, quality and timely delivery whilst ensuring optimal resource utilization. MARKENTING:-

Improved product availability 12% with innovative marketing and sales force programs.

Oversaw successful launch of several brands and products. Reduced division headcount from 43 to 22 by consolidating marketing, sales support, and revenue management teams. Improved product availability 12% with innovative marketing and sales force programs Continue to lead successful and dynamic businesses within international markets using the brand marketing strategy to cover market area at international level. We continue to invest in quality and product development HUMAN RESOURCES:- Championed human resources initiatives designed to ensure optimum staffing, training, job grading, remuneration, and succession planning. Adept at understanding individual contributors‘ unique skills and aligning team efforts with enterprise objectives. DAL Group views its 5,500 employees as a large family working together across a range of sectors and activities. The encourages diversity; stimulates innovation, teamwork, learning and improvement and rewards individual performance solely on merit.

182

We are continuously striving to improve Human Resources (HR) effectiveness within the Group to combine delivery of best practices with important daily HR operations. This include:-  Strategic Workforce Planning – ensuring the organisation has access to the necessary resources to fulfil the strategic business objectives. This includes identifying and monitoring key workforce information and modelling future requirements, the results of which inform our other initiatives.  Talent Management – focusing on recruitment and retention of employees, succession planning, and our graduate and future leaders‘ programmes. DAL Group practices open recruitment based on merit. Jobs are advertised internally and also on our dedicated website.  Performance Management and Rewards – creating and maintaining a performance management and appraisal system that encourages a performance driven culture, with rewards based on performance.  Policies and Procedures – ensuring a single set of best practice policies and procedures exist across the Group.  Learning and Development (L&D) – enhancing the knowledge, skills and attitudes of employees through a range of activities from specialist courses and on the job training, to work shadowing and mentoring. DAL Group has invested in a world class L&D centre to ensure its employees receive the best possible professional development.  Effective leader, skilled at motivating employees at all levels of an organization.  Health related activities including blood donation campaigns for children with cancer, breast cancer awareness sessions for female employees, and participation in the National Campaign for Polio Vaccination. BUSINESS ACTIVITY OF DALFOOD

183

Innovative, analytical problem-solver, known for delivering creative solutions to overcome obstacles and exceed goals. Business activity includes:  Strategic Planning  Brand Marketing  New Product Development  New Business Acquisition Facility Development  Efficiency Improvements  Change Management Team Leadership  Employee Development Directing implementation of planned procurement strategies, policies and practices, effectively communicating the same to subordinate personnel to ensure achievement of business objectives. Planning/organizing procurement activities, maintaining uninterrupted flow of materials without compromising on quality of materials. Directed the procurement and supply chain management process, as well as negotiated rates with suppliers to ensure best value for the company on all procurement activities. Providing strategic guidance on procurement decisions, negotiating with suppliers to source products from economically viable sources. Responsible for local and international procurement activities as well as maintained accurate records of purchase orders and updated procurement data in the company system. Served as administrative liaison, provided daily administrative support inclusive of arranging meetings, taking minutes and keeping notes as well as undertook other tasks assigned by the Deputy Projects and Procurement Manager in order to complete the task within the stipulated time schedule. Prepared MRP (Materials Requisition Plan) in coordination with various departments including production and finance to ensure smooth execution of work. professional relationships with government echelons in Dubai and Northern Emirates.

184

Efficiently handle the responsibility of drafting quotation and submitting the same online for the Ministry of Finance & Industry in support of U.A.E. Federal Ministries as well as for Dubai Government Department. Conducted market research, pre-feasibility studies for company products and performed competitors‘ analysis to explore business opportunities to maximize profitability whilst keeping cost to the minimum. Responded, catered to inquiries/ complaints from customers to ensure optimal levels of service and long term business relations. Drafted necessary reports including sales forecasts, order received, order expected, pending quotations, customers visits etc. and submitted the same to the sales manager for making further corrective measures. , Partner of choice DAL Group aims to be the partner of choice for organisations looking to expand into Sudan. Our operational capabilities, excellent reputation, deep understanding of Sudanese culture and business environment, and broad geographic coverage of the country make us unique. We seek to build long lasting, mutually beneficial relationships with all of our partners. International brands as diverse as Caterpillar, Mitsubishi Motors, KIA Motors, Mercedes-Benz, JVC, The Coca-Cola Company, Unilever and GlaxoSmithKline have chosen DAL Group as their partner of choice for good reason. Quality and excellence DAL Group companies demand best-in-class operations and deliver high quality products and services. We pioneered a number of international quality and safety standards in Sudan, including ISO and HACCP, and have set the standard for sourcing, manufacturing, distribution and customer experience. Deltoid maintains high personal and business standards, and takes pride in our appearance and conduct.

185

ECONOMIC ROLE OF DALFOOD (Sudan) In recent years, the Sudanese economy showed a growth rate of more than 10% due to the increase in oil production, a good harvest and the continuous expansion of the construction and services sectors. Sudan was heavily affected by the global economic crisis and the collapse in oil prices. Its growth dropped to 4.5% in 2009. The effect of the global revival, the increase in prices and production of oil, investments and domestic demand, the growth has risen again to 5.5% in 2010. The Sudanese economic policy is largely based on the implementation of the Global Peace Agreement (GPA) and the Joint Evaluation Mission (JEM), which design the country's detailed plans up to 2011. To maintain its economic growth, the country has to manage its oil sector properly, protect the viability of its external debt and improve the financial system and the central bank. The high growth rate, sustained by oil production, creates a significant increase in the country's income per capita, an improvement in its literacy rate and a reduction in infant mortality. However, widespread poverty, unequal income distribution and insufficient social services still remain as serious problems. Sudan is part of the least developed countries (LDC) and unemployment affects almost 14% of the active population. The inflows of foreign direct investment (FDI) in Sudan have almost tripled in the last recent years, a fact which has increased stocks. the slowdown due to the global economic crisis, foreign investments should expand in the next coming years, as long as Sudan's security situation does not deteriorate. Factors that encourage FDI are tax exemptions given to foreign investors, easy repatriation of profits by foreign companies, the development of a financial market, limitation of state monopolies in the various industrial sectors, the allocation of free land to foreign investors for strategic projects and the authorization to transfer foreign capital when an investor decides to withdraw from the country. The lack of a qualified work force, insufficient infrastructures, corruption and political instability are some of the potential hindrances to foreign investment.

186

CH- 3 o Comparative Position of selected Industry / Sector / Specific Company / Product with India and Gujarat

Present position and trend of coca-cola company Earlier this year, the Coca-Cola Company reconfirmed its long-term target for unit case volume growth at 7-8% (see Figure 3). This target reflects their belief that the ready-to-drink non-alcoholic beverage segment is going to continue growing and that The Coca-Cola Company is going to do better than the rest of this segment of the commercial beverage industry. This chart shows Coca-Cola‘s unit case volume trends over the past five and a half years. It can be seen that after three years of 8+ growth from 1995-1997, the growth was slowed in 1998 based on the global economic crisis and then continued to face challenges in 1999. But now the tables are turning again. Thus far in 2000, volume is up 5% through June and the company is remaining comfortable with the estimate of 5% volume growth for the full year. Looking ahead to 2001 and 2002, they are still comfortable with their prior guidance of 6-7% and 7-8% worldwide unit case volume growth, respectively. This accelerating trend will result from the continued success of their local marketing approach and improving economic conditions in most markets around the world.  Selling in information about the company Since its beginning in the spring of 1886, Coca-Cola has grown to become the most recognized trademark in history. Operating out of more than 195 countries worldwide, Coca-Cola is the most popular beverage on earth and is enjoyed over 773,000,000 times daily. The Coca-Cola Company is the world‘s leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, with world headquarters in Atlanta, Georgia. The Company and its subsidiaries employ nearly 31,000 people around the world. Syrups, concentrates and beverage bases for Coca-Cola, the Company‘s flagship brand, and over 230 other Company soft-drink brands are manufactured and sold by The Coca-Cola Company and its subsidiaries in nearly 200 countries around the world

187

Re-entry of Coca-Cola in 1993: On the 26th of October 1993, Coca-Cola re-entered the Indian market having acquired some of the leading Indian soft drink brands from Parle, namely Thums-Up, Maaza, Limca, Goldspot & Citra. These brands joined Coke‘s portfolio of international brands i.e. Coca-Cola, Sprite, Fanta, Schweppes as Coca-Cola India took control of the top soft drink brands in India from the very beginning. From 1993 to 2003, company invested US $ 1 billion in India. The beginning of Cola War: For the Cricket World Cup 1996, Pepsi was not the official sponsor of the tournament, Coke was. But coca-cola had a whole pool of best players roped in as brand ambassadors from the sub continent and abroad. The ad campaign of ―Nothing Official About it‖ rocked the country and despite Coke being the official sponsor, it was coca-cola which hogged the publicity. Coca-Cola countered by spoofing the ad, using Sprite, to hilarious effect. Pepsi responded with a spoof of its own, starring Azhar and Jadeja hitting on the Coke line of ―Eat Cricket, Sleep Cricket, Drink Only Coca Cola‖ with the punch line of ―More More Cricket, More More Pepsi‖. Coke again hit back, this time with Thumbs Up ad. They portrayed the cricketers as monkeys and ended the ad with ―Don‘t be a bunder (monkey) Taste the Thunder!‖ Situation turned ugly with Pepsi going to court and finally ended with Coke withdrawing the ad. The Cola wars went on full-fledged till 2003, when a pesticide controversy forced Coke and Pepsi to fight on the same side in so called ―India's New Cola Wars‖.

 The Controversies Presence of Pesticides: In 2003, the Centre for Science and Environment (CSE) findings stirred the beverage industry in India. CSE claimed to find dangerous levels of pesticides in all the 57 samples of 11 soft drinks brands collected by the organization from 25 different manufacturing units of Coca-Cola and PepsiCo spread over 12 states. The study found a cocktail of three-five different pesticides in all the samples - on an average 24 times higher than norms laid down by government-run Bureau of Indian Standard (BIS). Rajasthan, Madhya Pradesh, Chhattisgarh, Gujarat and Kerala banned the sale of Colas in schools, colleges and government departments, and other states also took adversarial measures.

188

The day after the CSE‘s announcement, Coke and Pepsi came together in a rare show of solidarity at a joint press conference. The companies attacked the credibility of the CSE and their lab results, citing regular testing at independent laboratories proving the safety of their products. They promised to provide this data to the public, threatened legal action against the CSE while seeking a gag order, and contacted the United States Embassy in India for assistance. They roped in major film stars to explain their purity to public. Despite all these measures, sales dipped by as much as 80% in some regions. The soft drinks industry took over a year to get back on the growth track.  Ground Water Crisis: Coca-Cola was recently accused of ground water depletion in many areas of the country. Coca-Cola‘s bottling operations – which extract hundreds of millions of liters of water from the groundwater resource – have significantly worsened the water crisis as groundwater levels have dropped sharply since Coca-Cola started its operations. The company was also accused of indiscriminately dumping its toxic waste into the surrounding areas – polluting the water as well as the land. The Coke reiterated its commitment to trim down water usage and take steps towards environment sustainability and farmer‘s welfare. However, activists retort that Coca Cola is in the business of water usage and wasting, creating a luxury product largely for the middle class. They are unlikely to put water concerns over profits, until they are forced to.

 The road ahead:

Amidst various allegations and controversies, the soft drinks industry in India, supported by its booming economy, strengthening middle class and low per capita consumption, is growing at a cruising pace. The focus has shifted from carbonated drinks to Fruit drinks, with both the companies launching Lemon drinks in 2009-10. In the next few years, the fruit juice category is likely to carry the growth flag forward as consumers become more health conscious. The companies are likely to take more steps to deal with environment sustainability. But the Cola wars are here to stay. We as customers can be assured of superior products and hilarious ads in the process. And are we complaining?

189

Present Position and Trend of Business (import / export) with India / Gujarat during last 3 to 5 years  Import export data of coca-cola in india: Import export businesses, also known as international trading, are one of the hottest commercial trends of this decade. sudan companies trade in over 2.5 trillion dollars a year in last 3 year in india of which small businesses control over 95 percent. As the owner of an import export enterprise, you can work as a distributor by focusing on exporting and importing coca-cola that cannot be obtained on national soil or those that are cheaper when imported from other countries (e.g., Chinese soft drink). In addition, you can also open an export management company (EMC), where you can help an existing dal food market its products in a foreign country by arranging the shipping and storing of them without doing the actual selling. EMCs can specialize in one industry or work with different types of import export manufacturers. It is also possible to act as a broker for a company, working on commission over the actual sales.and actual data of the specific company This is a great choice for products that are guaranteed to sell because of high demand or an established coca-cola. Coca-Cola continues to dominate sales in export: Coca-Cola dal food Ltd maintains a leading share in two categories carbonates and bottled water, thanks to its well-established name in Nigeria, strong distribution network and massive marketing expenditure. Coca-Cola Nigeria Ltd offers the most popular carbonates and bottled water brands in the country. Coca-Cola Nigeria Ltd is followed by 7-Up Bottling Co Nigeria, which only entered the bottled water category in 2009. Apart from the two multinational giants, local players have a strong presence, supported by the government‘s ban on imported fruit/vegetable juice in Nigeria. Thus, Chi Nigeria Ltd leads in two categories – fruit/vegetable juice and RTD tea – with a well-known brand name and marketing emphasising its Nigerian origins. Off-trade outlets dominate volume sales: Off-trade outlets and other grocery retailers in particular (traditional open markets and the traffic channel) continued to dominate volume sales in Nigeria. Many consumers buy these drinks for consumption at home or on the go exporting in 3

190

trililing dollar. They are also commonly used to entertain guests at parties and other events. The supermarkets/hypermarkets channel in particular is increasing its presence, with strong competition between Shoprite and Spar, which have both been opening new outlets. The recent boom in the fast food industry has resulted in dynamic growth of on-trade volume sales; however, these remain a fraction of off- trade sales. Strong forecast period growth expected in export: Total volume growth over the forecast period will continue to be strong with a CAGR of 7% expected, although this will slow in later years due to slower GDP growth. Fruit/vegetable juice and bottled water will continue to be strong performers, although growth will be considerably slower than the still-new RTD tea category. Major brand competition will continue in the bottled water category, where there is already a vast range of brands, making further differentiation difficult. New launches in bottled water in 2009 of brands Mowa (Dansa Foods Ltd) and Aquafina (7-Up Bottling Co Nigeria) have not yet caught on strongly, but their positioning at a lower price in comparison to the leading Eva brand (Coca-Cola Nigeria Ltd) may help them to build share in the coming years. The best opportunity in soft drinks remains with the most innovative products that are able to combine new types of fruit flavours with a perception that they are healthier.

191

CH-4 o Policies and Norms of selected country for selected Industry/company for import / export including licensing / permission, taxation etc Policies and norms of food industries in india

 OBJECTIVE The food processing industry in India occupies a unique position in the Indian economy in terms of its potential for employment generation, increasing the farmers‘ income and export growth. The Scheme for Technology upgradation/expansion/modernization/establishment being implemented by the Ministry of Food Processing Industries (MFPI) is aimed at up gradation of processing capabilities. It has been decided to decentralise the implementation of the scheme for Technology Upgradation Establishment/ Modernisation of Food Processing Industries in the 11th Plan period ie. w.e.f. 1st April 2007 through Banks/financial institutions to provide a thrust and wider coverage for food processing industries in the country and simultaneously decentralise

the procedures for appraisal, grant of assistance and monitoring. Detailed guidelines in this regard are given below. Under these guidelines, the applicant units are required to apply directly to the Banks/financial institutions for claiming grant under the above Scheme with effect from 1st April 2007. However, it has been decided that till 30th April 2007, applications may also be received by SNAs to avoid any inconvenience to applicant units. The SNAs will receive such applications and send the same to the concerned Banks/Financial Institutions to whom they have applied for term loan in accordance with the following guidelines.

In case, no term loan has been taken, the units may be asked to indicate the Bank/Financial institution of their choice to which the application may be sent for processing of grant element as indicated in para 4(B) (iii) & (iv) below. However, SNAs will not receive applications after 30th April 2007and the applicants will be advised to submit their applications for assistance to the Banks/PLIs.

192

2. ASSISTANCE & ELIGIBILITY UNDER THE SCHEME

(i) The Scheme will provide 25% of the cost of plant & machinery and technical civil works subject to a maximum of Rs.50 lakhs in general areas and 33% up to Rs.75 lakh in difficult areas (Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Sikkim, North-Eastern States, Andaman & Nicobar Islands, Lakshadweep and Integrated Tribal Development Project (ITDP) areas). Only new Plant & Machinery shall be eligible. Technical civil works include civil works for functional purposes and shall exclude boundary wall, office buildings, guest house, canteen and roads. An indicative list of ineligible items of Technical Civil Works and Plant & Machinery, additional information required in case of applications for expansion/modernization of existing units and restrictions/in-eligibility of second grant in certain cases and definition of General and Difficult Areas are provided in Annexure-VI. The application should be made by the entrepreneur before commencement of commercial production. (ii) To obviate duplication of grants, beneficiaries shall need to submit affidavits as outlined in para. (iii) The scheme shall cover specified sectors for activities leading to value addition and shelf-life enhancement. Individuals, firms, cooperatives, companies and PSUs shall be eligible. 3. SCOPE & SPREAD OF THE SCHEME Sectors in food processing such as fruits & vegetables, milk products, meat, poultry, fishery, cereal/other consumer food products, oilseeds products, rice milling, flour milling, pulse processing and such other agrihorticultural sectors including food flavours and colours, oleoresins, spices, coconut, mushrooms and hops will be covered under the Scheme. The activities of aerated water, packaged drinking water and soft drinks will not be considered for financial assistance under the Scheme. The Banks/their co-opted primary lending Institutions (PLIs) should ensure an adequate regional spread of assistance. Sanctions under the scheme to women, SC/STs should be given priority.

193

4. DISBURSEMENT OF GRANT: (i) (A) The financial assistance would be released in two equal instalments. The first instalment would be released after the firm has utilized 50% of the term loan and 50% of promoter‘s contribution and on production of the following documents by the firm: (a) An Agreement on a non-judicial stamp paper of a value not less than of Rs.100/- duly notarized in a format prescribed by this Ministry. (sample enclosed at Annexure-A) (b) Affidavit on a non-judicial stamp paper of a value not less than Rs.100/- duly notarized, in the prescribed format regarding (i) non-drawal of MFPI grant in the past by the firm and also that the firm has not availed any grant earlier under the scheme for the same purpose at the same location (ii) that no subsidy/grant has been availed/applied for against the proposal for the same purpose and activity from other Central Govt. Department /Ministry/ Agencies/ State Governments in terms of Rule 209(i) of General Financial Rules (GFR), 2005 and (iii) that the firm or its sister concern has not availed /shall not avail more than two grants (including this grant) from MFPI under this scheme and that firm or its sister concern have not availed /shall not avail more than one grant (including this grant) from MFPI for the Grain milling sector. (sample enclosed at Annexure-B)

(B) The second instalment of the grant would be released on production of Utilization Certificate by the unit in form prescribed in GFR 19A (Annexure C) for having utilized the first instalment of the grant and utilization of 100% of Term Loan and Promoter‘s contribution as the case may be, where no term loan is availed. The UC may be sent to the Ministry after countersigning by the bank. (ii) In the case of term loan-linked application the Bank/PLI shall calculate the eligible amount of grant. The grant portion will be kept as fixed deposit with the banks in the name of the borrower for the duration of the full term loan but will not earn any interest.

194

5. PROCEDURAL FORMALITIES: (i) The applicant while seeking financial assistance under the Scheme will submit an application in duplicate to any branch of the bank/PLI of his choice, with the request for project appraisal and also for availing term loan. Applicant may also draw up the feasibility report with the assistance of a professional consultant and thereafter submit the same to the Bank for appraisal. The format of the application form and Acknowledgement to be given by the Banks/FIs is at Annexure-I and II respectively. The respective Bank may ask for any additional information, whenever required, for the purpose of appraisal of the project and also relating to the loan and grant component.

(ii) The day any bank branch receives any application, it will get a centrally allotted Computer No. to the applications through the e-portal and send the soft copy of one page summary sheet of the application details (as in Annexure-III) to the MoFPI the same day.

(iii) After sanction of the assistance, the Banks/PLIs will get an Agreement executed by the beneficiary in favour of the Government of India, which will, inter-alia, stipulate the terms and conditions under which financial assistance is to be provided to the beneficiary. It will also bind the beneficiary to allow inspection of the unit at any time by representatives of Banks/PLIs /MFPI, not to change the ownership or location of the unit in any manner without explicit written permission of the lending financial institution and refund the financial assistance to the Government in the event of violation of any of the terms and conditions of assistance or having obtained assistance by misrepresentation or furnishing false information, etc.

The unit assisted is expected to function (at least) for a period of three years and the assistance shall also stand revoked if the Bank/PLI determines that the unit has not fulfilled the terms of the assistance. On revocation of assistance or for any reasons as above when assistance is revoked/ recalled/ assessed to have been ineligible, the unit shall be liable to refund the initial assistance along with interest at the Prime Lending Rate prevailing at the time of extension of assistance The Banks/PLI shall ensure that the grant is utilized for the purpose for which it is sanctioned.

195

Policies and Norms of India for Import or export to the selected country including licensing / permission, taxation etc

 Import and export sudan to other country :-

1951 Sawyer & Colley is founded in 1951 by two British businessmen. The company specialises in trading engineering products, such as bearings and belts, and is later awarded the Caterpillar dealership for Sudan. 1966 Ten years after Sudan’s independence, Caterpillar decides to transfer the dealership to a Sudanese company; the original British owners retained a minority share. The contract is awarded to Mr. Daoud Abdellatif and his newly created Sudanese Tractors Company (SUTRAC) – which is still the exclusive Caterpillar dealer for Sudan today. 1970-71 SUTRAC and Sayer & Colley are both nationalised. Within a year, the companies have been denationalised with the government retaining a minority share (the British partners are bought out). 1975 Mr. Daoud Abdellatif’s eldest son, Mr. Osama Daoud Abdellatif, joins SUTRAC. 1978-9 Mr. Osama Daoud Abdellatif becomes SUTRAC’s Sales Manager, and subsequently General Manager. The two companies are returned to full private ownership and the minority government share is bought out. Mr. Osama Daoud Abdellatif also changes the name of the company from Sayer & Colley to DAL Engineering (after the initials of his father). 1984 DAL Agriculture, which provides agricultural contracting services, is established and builds on SUTRAC’s ties with the agricultural sector. The majority of the work is in the fertile Al-Jezeera State (south of Khartoum) where DAL Agriculture is responsible for ploughing more than a million acres of farmland. The company also starts to buy land and grow sorghum. 1988 As the group starts to grow, DAL Property Development is established to provide architectural design, construction and facilities maintenance services. 1994 DAL Motors is founded as a natural extension of the company’s engineering activities, and is awarded the exclusive Mitsubishi dealership for Sudan.

196

1995 During the early 1990s, DAL Agriculture is often paid in wheat rather than cash. Spotting an opportunity, the Daoud Abdellatif family starts to trade flour. 1996 Sayga Flour Mills is established as Sudan’s first large scale, high quality flour mill, with flour sold to bakers across Sudan. Today Sayga is one of the largest milling operations in the region with a capacity for milling more than 1m tonnes of grain per annum. 1997 The dairy processing company, Blue Nile Dairy (today DAL Dairy) is launched. The venture starts out as a private farm with a just a handful of cows, as a place for the family to relax after long days in the office. DAL Medical is established, with just one product to its name. Today the portfolio comprises hundreds of products from leading multinational pharmaceuticals brands. 1998 Sudanese Liquid Air (SLA) – the producer and distributor of medical and industrial gases - joins the group. The company was established in 1949 as a branch of the French company, Air Liquide, and was taken into Sudanese ownership in 1964. 2000 Blue Nile Dairy becomes the first company in Sudan to be awarded ISO status. Sayga’s Bakery Development School is launched. It trains bakers, and later housewives, in modern baking techniques. 2002 The group is awarded the contract to become the sole bottler and distributor for The Coca-Cola Company brands (Coca Cola, Sprite, Fanta) in Sudan, and DAL Food Industries (DFI) is established. The bottling plant is held up as a regional benchmark in terms of quality and standards. 2003 The individual companies are consolidated under the ‘DAL Group’. 2004 Khartoum International Community School (KICS) is established to provide a first class, international education to the local and international communities in Khartoum. DAL Property establishes a property joint venture, Al Mogran - a large scale business and residential development in the heart of Khartoum, on the banks of the White Nile. 2005 Sayga unveils its pasta plant and launches its Nobo pasta brand as part of its diversification strategy.

197

2006 DAL Motors is awarded the Mercedes-Benz franchise. SUTRAC launches its Caterpillar Rental Store and becomes the first one-stop- shop solution provider for contractors in Sudan. DAL Engineering becomes the distributor for specialist brands Manitou, Valtra, Sampo and Grove. 2007 SUTRAC becomes the one of only three Caterpillar dealers worldwide to train all members of it its sales force to Caterpillar standards. 2008 A new company called SUTRAC-South is founded to cover the South of Sudan. DAL Engineering becomes the distributor for specialist brands Sonalika, Pottinger, Jacto and Tatu. Sayga is selected as the distributor for Kraft and Unilever. 2009 DAL Motors is awarded the KIA franchise. The Fenti golf course is launched; the first phase of a joint venture to create a top end property real estate development in Soba (south east Khartoum). DAL Agriculture starts the commercial production of alfalfa for export to the Gulf. 2010 DAL Dairy imports 1,000 Holstein/Friesian dairy cows from Australia. DAL Dairy moves into its new dairy processing facility, which has been designed in conjunction with Tetra Pak. SUTRAC becomes one of the first three dealers worldwide to have a full team of Caterpillar certified training instructors. DAL Medical is selected as the distributor for GlaxoSmithKline.

Present Trade barriers for import / Export of selected goods (if any) The increase in oil prices has elevated Iran’s export, what led to an overall development to it economy.  Advantages Noticing that the exports are higher than imports, this means that Iran is self sufficient and is not in need for external resources in order to operate. In addition, the increase GDP (purchasing power parity) means that Iran is managing and benefiting from the use of resources across countries and it also indicates that living conditions are getting better. GDP

198

per capita is experiencing an increase; this shows that the purchasing power is increasing which is a sign for a promising market for Coca Cola.  Disadvantages Even though Iran is expecting a decrease in inflation, this doesn’t mean that it will be a good indication; it will still hold a high degree of inflation which is 16%. A high inflation will result in an increase in goods and services prices, in addition to slow infrastructure growth which will increase taxes. Knowing that public debt is 25% from of GDP it would also increase the taxes which will affect the budget of Coca Cola entering cost. Sudan. the same time letting the citizens accepts foreigners by hiring their people. The Differences between exports and imports show an advantage to the country since the exports are higher than imports, Which shows that the country in a way have strong relation with foreigners and at the same time it’s gaining money. On the other hand also from an economic point of view there are disadvantages. The GDP real growth rate is decreasing, which means that the country is producing less goods and services. This issue can affect any investment in Sudan since companies will be discouraged. Moreover we can notice a high inflation rate for the goods, which is 12.10% in 2009. Even if it is expected to decrease it still high. Any inflation above 2% is a serious problem. Without forgetting that there the most serious problem and disadvantage in working in Sudan is that Sudan’s government is one of the highest corrupted government. Sudan is a promising country even if it one of the poorest country in the world due to the oil discovery. But the issue is in the high corruption Especially in Sudan it not smart to enter the country with a joint venture company or in another way. The best way for entering Sudan market is by the company itself. At first in Sudan there are very slim chances to find a wealthy local business company to deal with. So joint venture in Sudan is cannot be successful. There is an imbalance in levels of expertise, investment or assets brought into the venture by the different partners. Different cultures and management styles result in poor integration and co-operation. The partners don't provide enough leadership and support in the early stages. Success in a joint venture depends on thorough research and analysis of the objectives” (Emery, 2007).

199

All these issues are applicable and explain why it’s impossible to do any kind of merge with other company in Sudan. Entering and recruiting Sudanese citizens will be very healthy for the company since it will be accepted by the citizens

 Recommended Location for Expansion

After the following study of Iran and Sudan, we recommend expansion in Sudan. Sudan's economy is flourishing and is expected to grow 13% this year, and according to the Ministry of investment in Sudan; investments have has quadrupled since 1996 to about $2.3 billion last year, faster than most African nations. Even though the 1997 sanctions imposed by U.S concerning suspected support of terrorism and attacks against southern rebels, they found a way to dodge these sanctions, thus encouraging Asian nations to invest heavy in Sudan. In addition U.S Chevron Corp. has invested heavily in Sudan by discovering its oil and helping the government in exports of oil that generate more than $4 billion a year, thus having foreign investments investing money mostly in oil projects, roads, bridges, dams and other infrastructure projects. U.S companies have retreated their contracts from Sudan after U.S sanctions were imposed, but Chinese, Malaysian and Indian companies came to fill the gap. Sudanese officials is hoping that sanctions would be lifted, after they signed a peace agreement with southern rebels, and with this, they would also begin collaborate with U.S. security agencies like CIA, in fight in terrorism, by this expecting American companies to come back. (Los Angeles Times, 2007). * Primary healthcare, including immunizations and malaria prevention * Children’s healthcare, including feeding centre * Food and supplies such as blankets, tarpaulins and kitchen sets * Water and sanitation facilities” (The Coca Cola Company, 2007).According to reports of regional and international organizations, Sudan is ranked second on the list of the world’s most attractive countries for investment (Republic of Sudan, 2006). Sudan has abundant areas of landscape that provides various climates, in addition to oil extraction that gave Sudan a new economic dimension, besides it geographical location that is considered as passage to other African countries

200

CH-5 o Potential for import / export in India / Gujarat Market Starting and operating a business can be one of life's most rewarding and exciting experiences. Explore & Discover , new business Opportunity along with Kainth Consultants. Kainth Consultants has assisted in identifying new opportunity for the young entrepreneur. Opportunities do exist for you to import & export the Beer & Beverages- Take them in to a tank container having capacity 21000-24000 liters, specially designed container for transportation of beer,& Beverages. as per IMO- 0/IMO-2. The entrepreneur may choose to import & export any of the product or service, for detail procedure to import or export from India , please visit the frequently asked question. The Indian non-alcoholic beverage market was estimated at around US$ 4.8 billion in 2008 and is expected to grow at a Compound annual growth rate around 30 per cent in value terms during 2009-2012,followed by the energy drinks segment during the same period. Where as Where as the size of alcoholic beverages that is Beer, Wine and Spirits is for beyond the size of non alcoholic beverages India is the third-largest market in the world for alcohol. The Indian market for spirits is one of the largest in the world amounting to 87 million nine litter cases, where as for the for wine it is 667,000 nine liter cases. We can help you in sourcing the the product & service Service, arrange Business to Business meet, & finally in establish a realistic action plan to achieve your goal.  Beverages and Alcohol Category Review Imports of beverages and alcohol were valued at US$ 289 million in 2009, up in an erratic manner from US$ 229 million in 2005. The main products being imported are not consumer ready products, but industrial products, namely industrial alcohol, and bulk spirits for bottling/blending in India. Imports of industrial alcohol have varied dramatically on the back of local supply-demand scenarios. The imports of other products has been less erratic and so more positive for exporters. Imports declined in 2009 from a high in 2008 because of weaker business and consumer confidence in the market and

201

demand. India has a large alcoholic and non-alcoholic drinks industry, which includes both local and foreign businesses. It also has a growing wine industry. These industries provide a large amount of competition for imports, especially for beer and soft drinks. These industries control over 99% of their markets. Their products and imports operate under conditions where there are high excise duties having major impacts on local retail prices. This category generally suffers high to very high import duties. Soft drinks and industrial alcohol incur a 30% import duty, with beer being charged 100% and wine and spirits, 150% each. These duties, and local competition, make import market development very challenging for all brands. Well over 95% of spirits for bottling are imported from the UK. Wine imports are being sourced from France (32% share in 2009), Australia (18%), Italy (14%) and the USA (7%). Soft drink imports are mainly being sourced from Nepal (67% share of segment), Bangladesh (11%) and some other South Asian neighbours. The very small niche market for imported mineral water is dominated by France (55% share of this niche segment). Coca-Cola will open two new bottling plants and start building another one in China this year, as the company believes China will become the largest market for soft drinks in the near future, the US soft-drink giant said Tuesday. The two new plants to be opened this year are located in South China's Guangdong province and Hohhot, in north China's Inner Mongolia autonomous region, said Muhtar Kent, chairman and chief executive officer of Coca-Cola, who has come to China for the upcoming opening of the Shanghai World Expo. "We will also construct a new facility, which will be one of the largest plants we have in this country, in central China's Henan province this year," said Kent, adding that all three plants are part of the company's 42-billion investment package announced last year. The investment package is for the period 2008 to 2011. Last year, Coca-Cola inaugurated three new factories, in northwest China's Xinjiang Uygur autonomous region, east China's Jiangxi province and central China's Hubei province. "Our $2-billion investment program is on track," Kent said, adding, "We will also increase the capacity of some existing factories here, equipping them with new production lines as well as new trucks, warehouses and coolers."

202

Besides investment in production, Kent said significant investment will be made in marketing, distribution, logistics and brand innovation. With a business roadmap to 2020, Kent said China's actual non-alcoholic ready-to- drink market is probably the second largest in the world today, although it now ranks third among Coco-Cola's markets around the world. "I think China will overtake the United States to become the world's largest non- alcoholic ready-to-drink market in a fairly short period of time," Kent said. "It's not a question of if, but only a question of when." He also expected China to become one of the company's top growth markets in the next 10 years, citing the double-digit growth in China in the first quarter of this year and fourth quarter of last year. "Without any doubt, we are, with our investments, innovation and partnerships, completely aligned with the prospects of China's future development," he said. Stressing Coca-Cola has no plan to acquire any other brands in China, Kent said the company is focusing on "organic growth." With Coca-Cola, Sprite and Minute Maid Pulpy already billion-dollar brands in China, Kent believes Coca-Cola's other brands will also grow into billion-dollar brands in China in the coming years. "China probably has such a potential that even brands that don't exist today would become billion-dollar brands by 2020 for Coca-Cola," he said. Kent also described the Shanghai World Expo as a wonderful event. "We are very honored to be part of the event," he said. "It will bring us closer to the ideals of Chinese consumers and to Chinese views about their country, their future and how they see themselves in the context of the world." Scheduled to take up the post of chairman of the US-China Business Council in June, Kent promised to do his best to help sustain the healthy business relationship between the two countries in the years to come. Business Opportunities in future Our Strategy What will drive our success in the future? Not just growth, but sustainable growth -- meeting our short-term commitments while investing to meet our long-term goals. And we have a vision and clear goals to guide our journey to achieve long-term growth -- the kind of long-term growth that allows careers to flourish.

203

We are building on our fundamental strengths in marketing and innovation, driving increased efficiency and effectiveness in interactions with our system and generating new energy through core brands that focus on health and wellness.

We are poised to capture the opportunity in so many ways. Here are just a few:  With the world's most recognized family of brands, we deliver more than 3,500 beverages to over 200 countries around the world -- not just soft drinks, but juice and juice drinks, sports drinks, water, even coffee and milk. And every day we explore new ways to create and share beverages to energize, relax, nourish, hydrate and enjoy.

 As the world's largest distributor of non-alcoholic beverages, we maintain a trusted local presence in every community we serve. We are constantly looking ahead to anticipate what our communities may need and gathering resources to support them.  We've increased our annual marketing budget substantially, launched many new products, and developed a model to help our retail customers maximize their sales while we continue to plan for the next one, five and ten years in business. The target demographic for Coca-Cola is extensive and broad due to product appeal and popularity. Given careful consideration and after researching and analyzing consumer age, household size, marital status, and income, the best target markets for Coca-Cola, are 18-34 year-olds and those who live in households of 3 or more. 18-34 year-olds are chosen due to their high ranks and volume potential. Considering the option of only targeting 18-24 year-olds is not a large enough target for Coca-Cola due to the brand popularity and consumer base that is already established. For this reason, taking the first two highest ranking consumer age groups and combining them is the best option. Also, targeting households of 3 or more Outsourcing distribution and manufacturing Coca-Cola India minimised its capital needs by meeting new manufacturing capacity needs through external co-packers, outsourcing its distribution and meeting its in- market-refrigeration and cooling needs by giving incentives to retailers to self-fund the same through its ―Own Your Fridge Scheme.‖ Today, the company has an extensive rural and urban distribution network. Coca-Cola adopts a hub and spoke

204

format distribution network ensuring that large loads travel longer distances and short loads travel short distances. The company has increased its village penetration from 9 per cent in 2000 to 28 per cent in 2004 and covers approximately 175,000 villages today. Rural India now accounts for 30 per cent of Coca-Cola‘s sales volumes.

 Leveraging the India Advantage Sourcing from India

Exploiting economies of scale and its bargaining power (on account of bulk purchases) in the country, Coca-

 Coca-Cola, India: AT A GLANCE

• 200 countries. 49,000 employees. 400 brands. 4 out of the world‘s top 5 soft drink brands. US$ 21 billion revenues • India: Investment of US$ 1 billion. 5,000 employees. 25 wholly-owned, 35 franchiseeowned bottling operations. 27 contract packers • ―Citizenship Efforts‖ in tandem with local NGOs to alleviate community issues in the areas of its bottling plants • Factors for success: Diverse product portfolio. Brand building. Affordable entry price point. Strong brand pull. Ultra low cost model. Minimised internal capital requirements • For Coca-Cola, India is: Sourcing base for various commodities. Huge market. • Future plans, India: Increasing per capita consumption of beverages. Expanding distribution networks. Leading the beverage revolution in India Cola India has facilitated exports of commodities and materials like tea, coffee, PET resin, performs, closures, crowns and labels.

Future plans Increasing the per capita consumption of its beverages Coca-Cola continues its efforts at increasing the per capita consumption of its beverages in the country. India PCC currently is at 11 Servings a Year (up from 7 in

205

2001). This requires a comprehensive activation of the Indian market by addressing acceptability, affordability and availability of its products. Expanding its distribution networks The company had also decided to expand its retail network by 18 per cent during the financial year 2004-05 taking the total number of retailers to 1.3 million across the country. \Leading the beverage revolution in India The company continues to build on its foundations in India. While it continues to maximise its carbonated soft drink potential through various pack, pricing, occasion- based strategies across town-classes in India, it is exploring other categories like juice, water and tea and coffee. It is poised to lead the beverage revolution in India. Coca-Cola Plans to Invest $120 m in Indian Arm K.GiriprakashBusiness Line August 31, 2006 Bangalore: Brushing aside the `pesticide in colas' controversy, Coca-Cola has said it is investing $120 million (Rs 560 crore) more during the year in its Indian company Hindustan Coca-Cola Beverages (HCCB) to grow the per capita consumption of its beverages. A Coca-Cola spokesperson told Business Line that the new investment in HCCB is expected to increase the urban and rural penetration of its brands and diversify its range of beverages. "All this has been designed to help secure a strong future for the company," the spokesperson said. The spokesperson said Coca-Cola during the last 13 years invested over $1 billion in its Indian operations. The spokesperson said Coca-Cola has 60 per cent share in the Indian carbonated soft drink industry whose current size is 500 million cases (each case consisting of 24 bottles). The spokesperson said Coke would also expand its vended tea and coffee business, Georgia. Its `Georgia Gold' hot vending machines will be expanded further through a concept called `Georgia Junctions'. About 100 Georgia junctions will be rolled out within this calendar year in Delhi, Chennai, Mumbai, Bangalore, Kolkata and Hyderabad. These would act as interceptors at high traffic areas and will be a one stop shop for the consumers. In addition to tea and coffee, they will carry the entire range of Coca- Cola India's beverage portfolio including carbonated soft drinks, juices and water.

206

High quality snacks and bakery items will also be on offer at these `junctions.' "These junctions are being put up at places frequented by consumers with high willingness to spend," the spokesperson said. There are also plans to push `Georgia Gold Frosts' which are cold coffee and tea vending machines. There are over 6,000 Georgia vending machines installed across the country. On its other beverages, the company official said Coca-Cola has a higher market share than its other brand Thums Up, while its fruit drink brand, Maaza has a 30 per cent market share. Its bottled water brand, Kinley has a market share of over 22 per cent. Investing in Research Last year, a Coca-Cola official had said that the company wanted to transform itself into a total beverage company in India as it planned to launch a slew of health and wellness drink brands in the country. The official had forecast that over a period of time, the share between carbonated drinks and non-carbonated drinks could be equal.  “Rural India presents a great opportunity for us” 1.How important is the Indian market for Coca-Cola Company? India is a very strategic market for Coca-Cola Company. We need to have very significant presence in India. If we don‘t compete effectively in India, we won‘t achieve our 2020 objective. That‘s the reality. Given a huge consumer base and varied demographics of this country, we are quite happy with the progress. We are having a robust double digit growth and that is where we exactly wanted to be. 2.What are the new opportunities for Coca-Cola in the Indian market? We are very bullish not only on urban but also to what can happen in the rural environment. Over 700 million people live in rural India and they represent India‘s future. It presents a huge opportunity for us too. We are making best efforts to make sure that our products are available in most of the viable places in rural areas, and we also make sure that it is affordable. So, the right price point, right packaging and right availability are all the very important components where we are continuously working to expand in rural market. One of the biggest opportunities is when people from the rural to urban areas. When people do that their life gets factored, they want packaged items. We are very bullish

207

on India as we will continue to see urbanisation, middle class development and mobility in the country. That‘s why it is a strategic market for us along with China and Brazil. 3.What is your key focus in the Indian market? Our key focus is to grow per capita consumption of our beverages in the Indian market. So, we think it is important for us to have more transaction than to focus on volume. The way to go forward is to have the flexible packaging options that is more affordable and allows more transactions and hopefully help build habit among consumers. So, I think different price point, different packaging and getting people educated on the products‘ compatibility with other food and meal are the most important elements. We are constantly innovating and learning, in what we do, but we are clear that we cannot do everything, and are going to be focused on our core – sparkling, juice, drinks and water. 4.Thums Up is a big brand in the Indian market and one of the largest selling cola drinks in India. Do you think the local brand can work well in the international market?

In the Indian market we have got local brands like Thums Up, Limca, Maaza, and Minute Maid Nimboo Fresh. We are very focused on making sure that we speak to the taste of people.But, at the end of the day, what works is the right balance of global and the local. We have global brands like Sprite and Fanta which are huge brands worldwide and also doing very well in the Indian market. Nonetheless, we see tremendous opportunities for our local brands also. So, it is the right balance between the intrinsic and extrinsic features. If you talk completely about intrinsic, you only have a product and not the brand. So, you need to have the mix of the two. At the same time, we are very careful about excessive and extensive flavour extension, as sometimes it can come back and bite you because it creates extra complexity in your supply chain and how you go into a market. 5.Your health drink brand and sports drink brands like Diet Coke and Burn are established brands in other markets. But, they are yet to establish their identity in India. What are the key challenges for these brands in the Indian market?

208

Why would I have a line extension when I haven‘t established my base brand? When you have the consumption of Coke per capita low in a country, it doesn‘t make much sense to go for brand extension. It is just that we have made Diet Coke available in India. We didn‘t advertise it. It is more of a product than a brand in this country. So, the general philosophy is to establish your base brands before you get into line extensions of the base brands. We didn‘t divert resources from the base brand which is still building in India. And if there is overwhelming interest on this, we will have to think about this. Coca-Cola Company was a one product company for a hundred years and then 27 years ago we launched Diet Coke. That was an extension but then we had a base brand for 100 years before it extended. 6.Is the high price-point of these products one of the challenges? Yes. The price point is very important for the price sensitive market like India. We are continuously working towards bringing entry level packet size of these products. The other challenge is the availability and distribution and how we deliver that perfect taste and experience to people. For a country like India where you get challenges on electricity, these products don‘t taste great unless it is chilled. To address this, we are aggressively placing more coolers in the country, making the product more available in the country. Also, we are very seriously looking into the idea of solar cooler in the country. 7.Is the execution of your global positioning -„Open Happiness‟, different in India? How? Fundamentally, the base of execution remains the same. For example, our recent campaign in India ‗Khusiyaan Baantne se Badhti Hain‘ – It is about giving, it‘s about sharing, it‘s about inclusion. The execution is different as per the cultural context in India. In every market, people behave differently. People in this region are very passionate about music. So, we are connected with them through Coke studio that we have launched recently. We fundamentally believe in emotional connect that constitute positivity, happiness and optimism. We make our positioning locally relevant like the campaign on Diwali. Similarly, we choose occasions like Ramadan in UAE and Middle East and Christmas in USA. We are very focused on festivals.

209

Conclusions and Suggestions

New Delhi: Global beverages major Coca-Cola Company is tailoring its business to meet the requirements of rural India, which the company has identified as a ‗huge opportunity‘. ―There are 700 million people in India who live in rural area. We don‘t want to neglect them. We see a huge opportunity there,‖ Coca-Cola Company executive vice- president and chief marketing and commercial officer Joseph Tripodi told reporters on the sidelines of AdAsia 2011. A file photo of children in Goa in front of a painted Coca-Cola sign He said with the Indian rural market offering a different variety of consumers, the company is tailoring its business to suit their requirements. ―We need to make our products available, we need to make the products are affordable, we need to make sure the packages are at the right size. So packaging, right price points, right availability are all important components,‖ he said. Besides, the company is also looking at the supply chain issues and how to optimize through innovative ways. ―How do we get our manufacturing closer to the people? We constantly look at innovations against on all these things. We are looking at supply chain, to optimize our supply chain. We are bullish on not only the urban centers but also what can happen on the rural environments,‖ Tripodi said. He also said Coca-Cola has done estimation on how the Indian middle class population will grow in the next decade projecting more growth opportunities for the firm. ―We project almost a billion people entering the middle class in the next decade (in India). Almost 800 million people are moving in the cities. When people move in to the cities their lives become fast and they want packaged beverage, that is s why we are very bullish on India,‖ he said. With such opportunities ahead, he said India is one of the most important markets across all dimensions of profit, people, partnerships and productivity for Coca-Cola. ―India is a strategic market for the Coca-Cola company that we have to have a significant presence in. We invest a lot of money in India. We have in the past and we will continue to do so in future. In the 21 quarters we have had nice double digit growth in India,‖ Tripodi added.

210

Asked about localization of taste in order to tap the market more intensely, he said, ―There are big opportunities on flavors and appealing to the local palate which I‘m very supportive of. I think it‘s definitely important to appeal to the local palate.‖ Citing the example of Mexico which is the most successful market for the company in terms of local brands or flavor extensions, he said the Fanta brand has 15 different flavor extensions in the country.

"At the end of the day, it should be a balance between the local and global...We have to have the global brands like Sprite and Fanta, which is a big brand here (in India) at the same time we see tremendous opportunities for local brands," he said. In India Coca-Cola sells brands such as Thums Up, which caters to the local taste. Tripodi, however, cautioned against localising flavours too much saying it could backfire too. "You have to be careful about extensive flavour extensions because sometimes it can come and bite you and can face a lot of complexities at the supply chain end. You might get a short spike in volume but its a false place to go at times...," he said. While speaking about innovations in India, he said: "It could be through mergers and acquisition or it would include things developed in-house." He also said the company will not only go for increasing volumes compromising its other core values. "Chasing volume is not probably not the best thing to do and we learnt that mistake in US a few years ago," Tripodi said, adding a variety of packaging, different price points, consumer education on the products and a lot of sampling programmes would be the way forward. PROBLEMS BEING FACED BY COCA-COLA COMPANY There are some problems being faced by a company which affects its business strategies. It is difficult to know where to begin and isolate the events which shape the business environment. Distribution Coca-Cola Company is facing a problem of distribution, as distributors are expecting more from coco cola to provide an extra distribution channels which could help them to spread their products at large .Coca- cola products are some where not available in rural area due to inefficient distribution system. Investment Coca-Cola Company is now facing a problem regarding investment, like investment in distribution system, to make it efficient. They need

211

investment to encourage retailers to provide space to their products, in the form of providing coolers. Company is not in a situation to provide it to all its retailing stores while its competitor PEPSI COLA provides it to its distributors to promote his products in the market which is their competitive edge to increase it s share in the market. It creates an attraction to its distributors to take its products more to take incentives of special discounts provided by the company to its distributors, wholesaler, and retailers. This is a relatively a long term process to penetrate in the market and gain market share. Brand Awareness Having low promotional strategies that most of their customers are unaware of their brands mostly they mix their brands with Pepsi, they feel that Sprit and Fanta are the brands of Pepsi but in actual these are the brands of Coca-Cola Company they are facing these problems due to having low promotional strategy so that the unaware of its brands. 34 Institute of Information & Technology, University Of The Punjab, Lahore.

212

ANNXRE FORM TO TAKE A GRANT PERMISSION FROM FOOD INDUSTRY

213

214

Automobile Industry In Sudan

215

MODULE: 2

Introduction

The automotive industry is amongst the few industries that have witnessed continuous growth since their conception. Even during the global economic recession following September 11th, the automobile industry managed to gather up a total of 55 million motor vehicle sales worldwide, matching sales of the previous year.

Moreover, the automobile industry continued to be an extremely dynamic industry in terms of its production techniques. The industry is primarily split into two main manufacturing sections (1) Assembling the vehicle, and (2) Producing the components.

While the automotive industry began with the belief that an automotive manufacturer ware required to produce absolutely all components related to the assembly of vehicles, since the 1970s there has been a steady restructuring of the industry.

Today's vehicles may consist of close to 12,000 individual parts, provided by a geographically broad network of suppliers who the majority of production is outsourced to. Moreover, the geographical base of the car assembly itself has widened, and manufacturers are spreading assembly plants all over the world. Within this outsourcing, the global automotive supply chain has become more & more difficult complex. Modularization of auto production has become widespread in the industry, such that the entire process of producing a vehicle no longer has strict geographical ties. The reasons behind modularization and outsourcing include the potential for cost savings, labor and otherwise; more efficient product development, with focused suppliers able to innovate more quickly and to distribute the costs across multiple customers; better management of complexity in the assembly plant, due to sequenced deliveries of modules; and access to new trading regions. Within the context of the changing global supply chain where vehicle manufacturers have slowly been diminishing their roles restricting themselves to vehicle assembly, and outsourcing the remainder of their manufacturing needs, this paper, will provide a detailed analysis with the aim to explore Jordan‘s potential in this vast dynamic and developing sector and propose a related strategy to be undertaken by the different stakeholders in the sector.

Automotive Industry: An Overview The car assembly of the automotive industry is extremely developed; the industry produced about 60 million cars in the year 2000. The production was mainly

216

dominated by light vehicles with a share of 71%. Trucks contributed the remaining 29%. Production in the Middle East is concentrated primarily in three main countries; Iran, Turkey, and Egypt. Other smaller producers include Tunisia and Morocco. However, the large producers in the region, such as Egypt, Iran and Turkey are not the regional suppliers. Egypt and Iran produce mainly for their domestic markets, and Turkey sends more than half of automobile exports to 3 EU countries; namely Germany, France, and Italy; Egypt receives 2.6%, and Algeria 2%. Moreover, the main exporters to Saudi Arabia are not other regional producers, but to a large extent Western European suppliers.

Production in Middle Eastern countries Country Passengers Commercial bus Production car producing company Capacity manufacturing company Egypt 12 9 76000 Morocco 1 8 32000 Tunisia _ 4 6800 Algeria _ 2 5000 Saudi Arabia _ 5 2800 Libya _ 1 1500 Sudan _ 1 70 Jordan _ 1 100 Total 13 31 124270 Components Within the component's industry, manufacturers are split into OEMs {Original Equipment Manufacturers}and aftermarket manufacturers. The OEM manufacturers supply directly to the automobile Manufacturer and Their products are used directly vehicles. OEM Suppliers

COMPONENT OEM Specification S After Market The Components Market Other The primarily produce spare direct parts and their production to wholesalers and retailers. The OEM manufacturers also have a share of the aftermarket, if they have excess supply not sold to original manufacturers. Today's vehicles consist of close to 12,000 individual parts. To supply the various systems and components, the Original Equipment Manufacturers (OEMs) industry has traditionally been organized along a three tiered structure. Airtel producer manufactures and supplies components directly to the assembler and is generally characterized as a systems developer. A tier 2 manufacturer

217

builds discrete parts or subsystems and supplies these to independent or affiliated tier one producers. Tier 3 includes raw materials and service providers. In the early 1990s, global sales of original equipment manufacturer components were estimated at around $500 billion. However, international trade in components is extensive. In the 1990s global trade in automotive components and accessories grew by 11% per annum. U.S. imports for the mid 1990s alone are in the range of $25-30 billion, of which about 20% comes from developing countries. Brazil, Mexico and Korea have traditionally dominated the components market; however, Thailand, Indonesia, India and the Philippines have been rising as competitors. The EU alone imported automotive components and accessories for $48 billion annually during 1996 and 1997 (a growth rate of 12%). Switzerland imported automotive parts for about $472 million per annum during the same period. The average growth rate for imports in the 1990s was about 7%. Indian component manufacturers have made remarkable growth in recent years, and the recent liberalization provided increased impetus to export. Between 1986-87 and 1992-93 output rose from $274 million to $915 million, and exports grew at an annual at of 39%. Trends towards greater sophistication of parts, and greater outsourcing by assemblers, indicated a growth rate towards the middle and late 1990s in excess of that for any other part of the automotive industry. Moreover, the components market is able to maintain these high rates of growth even when there is a downturn in vehicle sales, since replacement markets offer a constant outlet for expansion.  Role of automobile industry in Sudan economy The Role of Automobile Industry in Sudan GDP has been phenomenon. The Automobile Industry is one of the fastest growing sectors in Sudan. The increase in the demand for cars, and other vehicles, powered by the increase in the income is the primary growth driver of the automobile industry in Sudan. The introduction of tailor made finance schemes, easy repayment schemes has also helped the growth of the automobile sector.  Role of Automobile Industry in sudan GDP-Facts • Sudan has become one of the international players in the automobile market • The four wheelers include passenger cars, multi-utility vehicles, sports utility vehicles, light, medium and heavy Commercial vehical, etc. • The three wheelers include mopeds, motor-cycles, scooters, and three wheelers • Sudan ranks 2nd in the global two-wheeler market • Sudan is the 4th biggest commercial vehicle market in the world • Sudan ranks 5th pertaining to the number of bus and truck sold in the world • It is expected that the Automobile Industry in Sudan would be the 7th largest automobile market  Role of Automobile Industry in India GDP-Sales Trends • In the year 2006-2007 the number of Passenger Car sold were 10,76,408

218

• In the year 2006-2007 the number of Passenger Vehicles sold were 13,79,698 • In the year 2006-2007 the number of Commercial Vehicles sold were 4,67,882 • • In the year 2006-2007 the number of Two Wheelers sold were 78,57,548 • In the year 2006-2007 the number of automobile sold were 1, 01, 09,037  Role of Automobile Industry in Sudan GDP-Growth • The growth rate of the Passenger Cars in the year 2007 is 13.50% • The growth rate of the Utility Vehicles in the year 2007 is 10.10% • The growth rate of the Multi Purpose Vehicles in the year 2007 is 24.40% • The growth rate of the Light Commercial Vehicles in the year 2007 is 16.05% • The growth rate of the Commercial Vehicles in the year 2007 is 3.43% • The Maruti Udyog Ltd is the largest car producer in the country and the rate of growth in the year 2007 was 20.7% • The Daimler Chrysler sales for the year 2007 was 1,681 units in Sudan and the growth rate was more than 22% • The General Motors India, registered a 114% increase in the national sales in the August of 2007 • The Hero Honda sold more than 2 million units in the Jan-Aug period of the year 2007 • The sell to other countries pertaining to the motorbikes was 3,21,321 units in the year 2007

 Role of Automobile Industry in India GDP-Foreign Investments • The Indian Automobile industry is at present busy in mergers and acquisitions on the international scale • The Indian automobile industry's overseas sector worth US$ 515 million • The Mahindra and Mahindra Company will be establishing a utility assembly plant in relationship with Bramont, A local company at Manuas, and North Brazil. • In Egypt, the Mahindra and Mahindra company has set up assemblage plants in collaboration with the Bavarian Motors. • The Tata Motors have entered the passenger car market in Saudi Arabia with the launch of Tata Indigo, TATA Indica and TATA Indica Marina • The TVS Motor Company has established a two-wheeler manufacturing unit at Karawang, in Indonesia • The Maruti Udyog Ltd has captured nearly 60% of the small car market in Indonesia • The Nissan Motor facility in South Africa was acquired by the Tata Motors to produce Tata vehicle for European and South Africa market. • The Jaguar and Land Rover companies owned by the Ford Motor Company was acquired by the Tata Motor For predictable price of Us$1.5 billion. Structure of automobile industry in Sudan

219

Buffeted by civil wars, political instability, unfavorable weather and terrain, along with counterproductive economic policies, Sudan‘s economic structure is limited in reach. While the oil sector has been instrumental in the growth of the Sudanese economy in the last decade, the nation continues to rely heavily on agriculture. Reliance of a large percentage of the population on subsistence agriculture is responsible for stagnation of the economy, despite rapid increase in Sudan‘s average per capita income. Sudan Economic Structure: Overview Of the total 11.92 billion labor force in Sudan, according to CIA reports, the agricultural sector is responsible for about 80% of the employment. Cotton is the chief export commodity of the nation and an integral contributor to the economy. Sudan is also the third largest producer of sesame in the world, after India and China. The nation also produces large volumes of wheat and sorghum, but these are basically refined for domestic consumption Sudan‘s industry sector also affect from infrastructure problem. Despite having plentiful mineral resources, exploration in Sudan has been limited. The industry sector, however, exports small volumes of chromium, mica and asbestos. Employing only 7% of the labor force, Sudan‘s industries managed to have a positive growth rate of 2.1% in 2009, according to CIA estimates. Petroleum refining, pharmaceuticals, textiles and automobile assembly are some of the key industries in Sudan‘s economic structure. In Sudan‘s service sector, the key contributors are restaurants and hotels, commerce services, transport and communications, and finance and insurance. The sector‘s contribution to Sudan‘s GDP over the last few years, despite employing only about 10-15% of the workforce. In 2010, the Sudanese service sector accounted for an astounding 38.9% of the nation‘s GDP, according e, has been substantial to the CIA World Fact book. Sudan Economic Structure: Status of the Financial Sector Sudan has a small, undeveloped financial system, which is largely governed by Islamic monetary principles, including the prohibition to charge. Sudan‘s banking sector comprises of either fully or partially private-owned banks. The Sudanese financial sector suffers from weak lending practices, supervision and regulation. Besides, a majority of the population is not associated with the formal banking sector due to limited access to credit, which also hinders Sudanese businesses. Sudan has a small capital market, which primarily trades in bank shares, on the nation‘s Khartoum Stock Exchange. Function of automobile industry in Sudan Supporting Functions The automotive industry has recently experienced periods of dramatic, accelerated change. To survive in this environment, automotive companies must put extra focus on their core competencies such as R & D, production, sales and marketing, HR. Capgemini can help automotive companies adapt to this new business landscape by helping manage critical supporting functions. Collaborating with the World‘s Leading

220

Companies Capgemini has the skills and tools to help automotive companies gain a competitive advantage by deploying innovative technology. Helping Auto Companies Compete Auto companies work with technology leaders worldwide to build innovative, reliable solutions and strategies that emphasize speed, predictability, agility and risk reduction. We help automotive manufacturing companies leverage these technologies to improve their business operations and processes, and collaborate with partners in real-time. Over the years we have built strong alliances with more than 250 technology companies and have strategic partnerships with five of the world's technology leaders:  Hp  Ibm  Microsoft  Oracle  Sap Business Information Management for Automotive Business information management is a driver for strategic and equipped excellence in the competitive automotive sector. Capgemini‘s management of data assets is helping car manufacturers and suppliers weather different cycles of economic activity.

Leader in Business Information Management Solutions for the Automotive Industry Capgemini has helped all major automotive manufacturers and tier-1 suppliers gain competitive advantage by implementing powerful and innovative solutions. Our experience ranges from global reporting solutions to analytical applications. What sets Capgemini's Business Information Management solutions for automotive apart is our strong domain capabilities combined with technical skills and the Rightshore® model. This enables us to align your business and information strategies comprehensively and cost-effectively. Use Your Data for Competitive Advantage The automotive industry has specific demands and challenges. Capgemini's automotive-specific Business Information Management solutions have the possible to help your company define and execute strategic initiatives and achieve operational excellence. Our experts partner with you to: • Leverage your data pool to gain insights into your organization's ecosystem and deliver market predictions • Improve your processes and workflows so you can focus your energy on your company's core activities • Establish a consistent information strategy to optimize total cost of ownership and business impact Set the Foundations for Continuous Improvement

221

Our project experts engage with you to assess your needs, understand your company arrangement and conduct cross-functional workshops. This approach ensures that we identify the specific solution that suits your automotive business model. Combining our solution accelerators, innovative frameworks, industry best practices and delivery experience, we then rapidly deploy the solutions with attention to detail and within the defined budget. Our approach centers on your business needs and growth strategies, and sets the foundations for long-term improvement.We have over 2,500 specialists with automotive expertise who are adept at defining comprehensive solution portfolios to fit company needs. In our analysis of your business information needs, we consider: • Supplier risk analysis to understand how the supplier's risk situation impacts your risk sitution • Strategic procurement planning to link sales with procurement planning and shorten planning cycles Business activity in sudan of automobile industry Sudan emerged as an independent country free from sanctions as of July 9th, 2011. The new state will no longer be directly subject to the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC) sanctions. On December 8, OFAC amended Sudanese Sanctions Regulations by issuing two general licenses that authorize: 1) All activities and transactions relating to the petroleum and petrochemical industries in Sudan and related financial transactions; and 2) The transshipment of goods, technology, and services through Sudan to and from South Sudan and related financial transactions. There may be certain other activities by U.S. persons in the new state (the Republic of South Sudan) that could continue to be prohibited. Given the interdependence between some sectors of the economy of the Republic of Sudan and the Republic of Sudan, certain activities will still require OFAC authorization. Absent a license, current Sudanese sanction regulations will continue to prohibit U.S. persons from dealing in property and interests in property of the Government of Sudan, from performing services that benefit Sudan or the Government of Sudan, and from participating in some exports to or imports from the Republic of Sudan that transit through Sudan, see 31 C.F.R. §§ 538.406, 538.210, and 538.417. U.S. persons or companies that wish to engage in the activities listed above are encouraged to apply for an OFAC license. The Embassy recommends that anyone interested in doing business in Sudan consult the latest reports. The links below are intended to assist U.S. businesses with obtaining information on the OFAC sanctions, the December 8 amendment to the sanctions, and the opportunities for conducting business in Sudan.

222

The Sudan Business Union Activities are Appreciated by William Sunday D Tor ǀ 02.01.2012 The Sudan Business Union is one of the Sudan civil society‘s organizations which was established by the Sudanese businessmen and businesswomen and its head office is in Juba with branches in the states of the country. The union is under the leadership of Mr. Ayii Duang Ayii.Here I would like to congratulate the leadership of the Sudan Business Union for their efforts in promotion of Sudan economy by constructing hotels, health and business centers. The outstanding activity that had made it is the establishment of essential commodities centers in different places in Juba where commodities are sold to the citizens with reasonable prices compared to prices charged by the foreign businessmen and women who do not care about the suffering of the Sudanese people. In their selling camps, you can by a kilo of sugar at 6 SSP which is sold at 8 SSP in other shop. A big tint of Nido milk is sold at 105 which is sold at 120 or 125 SSP in the shops owned by the strangersThat move is way forward toward decline of essential commodities prices, in addition to eradication of poverty. Furthermore, their commodities could be trusted in regard of their validity. The aim of this article is to encourage the members of this union and appeal to our national and state governments to empower them for more achievements. The citizens of this country are advised to shop in our union camps which are available anywhere in Juba and to save for their families. Finally, the union is encouraged to establish more shops in states and to engage in other businesses such as farming, health and education. Business and Human Rights in Sudan – the international context Human rights abuses in Sudan are well documented and have been an issue of international concern.4 Some foreign governments have taken a range of different positions in expressing such concern, one of the most outspoken being that of the

223

US Government which observes a total trade embargo on the country. Over the past year, several US-based investors (in particular the State pension funds) have started to divest from European and Asian companies which are trading in Sudan. For example, letters from the California Public Employees‘ Retirement System (CalPERS) sent to a number of companies in 2005 asked them to clarify their human rights activities in Sudan. CalPERS has since announced its intention to divest from some companies but not those actively engaged in the process outlined in this paper whose activities are the subject of constructive engagement. At the Khartoum meeting, Ron Popper and Anders Nordstrom from ABB Ltd characterized their company‘s business activities in Sudan as beneficial for the local population; they also noted the competing human rights priorities, between the role of electrification (one of ABB‘s core business activities) in helping to realize many economic, social and cultural rights in northern parts of the country against wider concerns about specific civil and political rights in Sudan, albeit none which relate directly to ABB‘s business activity. Some international stakeholders continue to pressurize ABB to cease trading in Sudan altogether, but how should the company assess the best (or least bad) course of action to follow when faced with competing human rights-based arguments? The following aspects can be seen as characterizing the scenario for an international company such as ABB in a country such as Sudan: • The net commercial value of business in the country is relatively small both from the perception of the international company and the host government; • The day-to-day business of the company adds to the economic development of the country and is also meeting the basic needs of the general population; • Allegations of ‗complicity in the abuse of human rights‘ are unlikely to be legally based but instead relate to mainly ‗moral‘ opinion about what might be deemed as ‗beneficial‘ or ‗silent‘ complicity (i.e. the responsibility a company has in a specific country just by being there). • What then are the tangible steps an international company should take when some stakeholders wish them to divest based on human rights arguments, whilst others want them to remain based also on human rights considerations? • How to achieve a more level ‗playing field‘ if the moral or political pressures placed on international companies vary according to where they are or where their investors are based? Business and human rights – the local context There is nothing new about corporate responsibility in a Sudanese context as one of the keynote speakers on 17 May reminded the audience: ―Establishing clinics, schools and community programmers was not so much a charitable undertaking, but much more a necessity. Corporate Social Responsibility had not been invented 75 years ago, but it was being practiced.‖ There was a general agreement at the meeting that all ten principles of the UN Global Compact, including those relating directly to human rights and labor rights, did apply within a Sudanese context, given that the Sudanese Government has

224

ratified most of the international agreements upon which the principles are based. The more pertinent questions were about how these principles might be applied within a Sudanese context, sensitive both to the dominating priorities of a country where many are still in poverty and also respectful of Sudanese culture and history. The ‗Sudanification‘ of international standards was not seen as diluting or changing the standards themselves but finding a tangible way of rooting human rights within the Sudanese business community that is both appropriate and sustainable. It was abundantly clear from the discussions that such an approach cannot be imposed from outside the country but its benefits must be argued and understood within mainstream Sudanese business. Within the context of Sudan, as in many other countries, the development of business and human rights needs to grow from a wider commitment to ‗capacity building‘ in its widest sense. Local participants at the 17 May meeting commented that decision making processes at the national and local level need to be inclusive of the private sector and that public-private partnerships can create an ‗enabling space‘ for the development of the rule of law, good governance and good environmental and social management. Some also commented that international organizations and international business can be misguided in their actions if they do not understand the local context. There was consensus at the meeting that a Sudanese network of the UN Global Compact, facilitated locally by UNDP, might be a useful way for international agencies to work with both international business and Sudanese business together and a foundation for public-private partnerships within the arena of human rights and the other principles of the Global Compact.

225

MODULE: 3 Comparative position automobile sector with India

Automobile Industry India Every day, The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting about 1.5 million. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes. The industry has provides direct and indirect service to over 13 million people. India‘s supply chain is very similar to the supply chain of the automotive industry in Europe and America. This may present its own set of opportunities and threats. The orders of the industry arise from the bottom of the supply chain i. e., from the consumers and go through the automakers and climbs up until the third level suppliers. However the products, as channeled in every traditional automobile industry, flow from the top of the supply chain to reach the customers. Before the level of buy and sell exports in the automobile sector in India has been medium and imports have been low. Now this is rapidly changing and both exports and imports are increasing. Factors are the demand determinants of the industry like affordability, product innovation, roads and price of fuel. Also, the basis of competition is the sector is high and increasing and the life cycle stage is expansion. With continue growing middle class, this are all the advantages of this sector in India In there are some factor also decrease the demand with a high cost of developing production facilities, limited accessibility to new technology and soaring competition, the barriers to enter the Indian Automotive sector are high and these barriers are study. On the other hand, India has a well-developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government. The cost structure of the industry is fairly traditional, but over all the profitability of motor vehicle manufacturers has been raising over the past five years. Major players, like Hyundai, Tata Motors and Maruti Suzuki have material cost of about 80% but are recording profits after tax of about 6% to 11%. The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producer has been high. System-suppliers of included components and sub-systems have become the order of the day. However, further investment in new technologies will help the industry be more competitive. Over the past few years, the industry has been volatile. Currently, India‘s increasing per capital throwaway income which is expected to rise by 106% by 2015 and growth in exports is playing a major role in the rise and competitiveness of the industry.

Hyundai Motor India and Mahindra and Mahindra are focusing increasing their path in the out of the country market. Hero Honda Motors is occupying over 41% and allocation 26% of the two wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three wheeler market. Customers are very important of the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer feeling dropped, which burned on the augmentation in demand of cars. Steel is the major input used by manufacturer and the rise in price of steel is putting a cost force on manufacturers and cost is getting

226

transferred to the end customer. The price of oil and petrol affect the driving habits of consumers and the kind of car they buy. In the India the key to achievement in the industry is to improve labor efficiency, labor give, and capital efficiency. Having superiority manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilizing manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India. Both, Industry and Indian Government are forced to interfere the Indian Automobile industry. The Indian government should facilitate infrastructure creation, create positive and expected business environment, attract investment and encourage study and development. The role of Industry will primarily be in designing and manufacturing products of world-class quality establishing cost competitiveness and improving output in labor and in capital. With a combined effort, the Indian auto industry will materialize as the purpose of choice in the world for design and manufacturing of automobiles. Market Size The Indian auto Industry in July 1991 has grown-up at an impressive rate on an standard of 17% for last few time. The industry has attained a earnings of Rs. 165,000 corers and an investment of USD 10.9 billion. The industry has provided direct and indirect service to 13.1 million public. Automobile industry is now contributing about 5% of the total GDP of India. India‘s present GDP is about USD 650 billion and is likely to rise to USD 1,390 billion by 2016. These translate into a payment of 10% to 11% towards India‘s GDP by 2016, which is more than twice the current payment. Determinants of Demand Determinants of demand for this industry include car price which are determined mostly through salary, cloth and tools costs and replace tax, preference, the running cost of a car mostly determined by the price of petrol, income, interest rates, scrap rates, plus produce innovation. Switch over charge Interest group in the price of Rupee determines the beauty of Indian products abroad and the price of introduce for home spending. Affordability Interest group in income and interest tax determines the affordability of new motor vehicles. Allow unlimited Foreign Direct Investment (FDI) led to raise in competition in the domestic market hence, making improved vehicle on hand at reasonably priced. Produce improvement It is an important determinant as it allows better models to be available each year and also encourages manufacturing of environmental friendly cars. Demographics High people of India have been one of the main reasons for large size of automobile industry in India. Factors are that demand consists of increasing people and a growing proportion of young persons in the people that will be more liable to use and replace cars. Too, increase in people with less important need on recognized single family revenue arrangement is likely to add value to car demand. Transportation

227

Longer-term determinants of demand include increase in Indian‘s infrastructure. India wants about $500 billion to repair its infrastructure such as ports, roads, and power units. These reserves are been made with an plan to generate long-term cash flow from automobile, authority, and telecom industries. Price of Petrol Activities in oil prices also have an impact on demand for big cars in India. During periods of high fuel cost as skilled in 2007 and first –half of 2008, demand for large cars decline in favors of smaller, more fuel efficient vehicles. The changing patterns in customer preferences for smaller more fuel capable vehicles led to the launch of Tata Motor‘s Nano – one of world‘s smallest and cheapest cars. Global Markets Global Markets Exports The level of trade export is medium The level of trade export is increasing Global Market Imports The level of trade import is low The level of trade import is increasing

Global market study The Indian automobile industry embarks a fresh passage in 1991 with de-licensing of the division and following opening up for 100% foreign direct investment (FDI). Since then nearly all global majors cover set up their services in Indian charming the level of production starting 2 million in 1991 to over 10 million in current time. The exports in automobile division have grown-up on an regular compound yearly growth charge of 30% for each year for the most recent seven days. The export salary starting this division are over USD 6 billion. Even with this rapid growth, the Indian automotive industry‘s contribution in global terms is very low.

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

Hyundai Motor India Ltd, India‘s largest passenger car exporter and second largest manufacturer, on cars to Sudan. With an order for more than 2,000 units, the first shipment comprised of 96 units of Hyundai‘s popular compact - the i10, recipient of the most number of ‗Car of the Year ‗awards in 2008. Hyundai Motor India Limited Sriperumbudur plant which has been nominated by Hyundai Motor Company as its global manufacturing hub for small cars meant for exports, was earlier shipping the Santro to the Sudanese market. Announcing this Hyundai Motor India Managing Director, H S Lheem, said, ―We are today embarking on a new journey with the shipment of the first consignment of cars which is also a first for us as well as the automobile industry here in India. Sudan has already been importing HMIL cars and the i10.DKD units offer certain advantages to importers and this automatically makes imports a lot more attractive.‖

228

Hyundai i10 has achieved a remarkable figure of over 100,000 units of export orders in a record time of less than 7 months from diverse countries spanning different continents making it one of the most popular cars to be launched. Recently with the launch of the 1.2 litre Kappa engine i10 the performance benchmark for cars in this segment has further moved up and clearly the i10 is leading the pack. The i10 will also be sold with a 4-speed automatic variant. The performance, handling, comfort and safety features of the i10 have not only won it several top honors‘ but have added to its popularity across markets. In addition, the i10 sports a perfect blend of a compelling price tag and above-average fuel efficiency, style and comfort.

Right after its launch i10 captured the entire gamut of the most prestigious of Indian automobile awards as well as the coveted title of the ‗Indian Car of the Year‘ Award with its distinction and performance. Hyundai Motor India Limited was created in 6 May 1996 by the Hyundai Motor Company of South Korea. When Hyundai Motor Company enter the Indian Automobile bazaar in 1996 the Hyundai trade name was almost unknown all through India. During the entry of Hyundai in 1996, there were only five major automobile manufacturers in India, i.e. MUL, HM, PAL, TELCO and M&M. Daewoo had enter the Indian automobile market with Cielo just three years back while Ford, Opel and Honda had entered less than a year sponsor. For additional than a decade till Hyundai inwards, Maruti Suzuki had a total dominance and control over the customer Cars section for the reason that TELCO and M&M were solely value and business Vehicle Manufacturers. HMIL's first car, the Hyundai Santro was launch in 23 September 1998 and was a run off winner. Within a few months of its inception HMIL became the second largest automobile producer and the biggest automobile exporter in India. Hyundai Motor India Limited (HMIL) is a totally own additional of Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter and the second largest car manufacturer in India. HMIL presently markets 6 models of passenger cars across segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the Sonata Transform and the SUV segment includes the Santa Fe. "The export of the Santro has reached five lakh units. From the time of its launch, this popular car has been widely appreciated for its design, technology and safety," Hyundai Motor India Ltd (HMIL) Managing Director and CEO H W Park said in a statement. HMIL began exporting cars in 1999 when it shipped a batch of 20 Santro cars to Nepal and had exported one lakh cars across models by 2004. The company exports its 'Made in India' Santro to more than 80 countries across

229

continent. HMIL‘s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. To cater to rising demand, HMIL commissioned its second plant in February 2008, which produces an additional 300,000 units per annum, raising HMIL‘s total production capacity to 600,000 units per annum. In continuation with its commitment to providing Indian customers with cutting-edge global technology, HMIL has set up a modern multi-million dollar research and development facility in the cyber city of Hyderabad. It aims to become a centre of excellence for automobile engineering and ensure quick turnaround time to changing consumer needs. As HMC‘s global export hub for compact cars, HMIL is the first automotive company in India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It has been the number one exporter of passenger car of the country for the sixth year in a row. To support its growth and expansion plans, HMIL currently has a 307 strong dealer network and 627 strong service points across India, which will see further expansion in 2010.

Hyundai Motor India Limited Annual Sales

Calendar Domestic Exports Total Year Sales

1998 8,447 0 8,447

1999 17,627 20 17,647 2000 82,896 3,823 86,719 2001 87,175 6,092 93,267

2002 102,806 8,245 111,051

2003 120,325 30,416 150,741 2004 139,759 75,871 215,630 2005 156,291 96,560 252,851 2006 186,174 113,339 299,513 2007 200,411 126,749 327,160

230

Hyundai Motor India Limited Annual Sales

Calendar Domestic Exports Total Year Sales

2008 245,397 243,919 489,316 2009 289,863 270,017 559,880 2010 356,717 247,102 603,819

2011 373,709 242,330 616,039

Exports HMIL currently exports vehicles to more than 110 countries across Europe, Africa, Middle East, Latin America and Asia. It has been the number one exporter of passenger cars for the sixth year in a row in India.

231

MODULE:4 Polices and norms of Hyundai company: Sudan discusses Sudanese government policy towards the refugee flows from Ethiopia into the Eastern Region of Sudan in the period 1967 to 1984, arguing that there were two underlying assumptions behind successive governments' policies that refugees were considered a security threat and a socio-economic burden. In response, the policies incorporated the Organization of African Unity norms, which offered a platform to depoliticise the refugees, equally with the international conventions relating to refugees, which assured the externalization of responsibility and access to aid. This prescription, however, ignored the dynamism of the conflict that continued to generate refugees - and, as numbers Kaccumulated in Sudan, the international aid regime did not act as a willing partner of the government. The consequences of a sizeable refugee population revealed a serious conflict of priorities, not only with in the Sudanese government of the day, but also between the government and aid donors - thus, the objectives of the government policy were seriously undermined. The Export Controls Handbook is designed to be the main reference tool to assist exporters with questions about the administration of Canada‟s export controls which are administered pursuant to the Export Control List, the Area Control List and the Automatic Firearms Country Control List under the authority of the export and import permits act.. Information contained in this Handbook includes how to obtain the necessary permits for the export or transfer of controlled items and how to comply with the requirements of the Export and Import Permits Act and its related regulations.This conceps contains to about the polices norms and also contain when it‟s stared and the organization how it‟s effect to work with the company. Sudan Import , export procedures: When importing goods into Sudan, there are formal Governmental procedures to be taken into consideration. The following document will advise you on the procedures that have to be followed and it will also state what is required from the supplier at different stages. Unless the following guidelines are cautiously and timely followed up there will most certainly be delays in the shipment of goods which will consequently result into delays in clearance of the shipment and delivery to the final customer.It‟s contain simple meaning when start to new business in the import and export so how it‟s make a procedures. It‟s need to document to collect by the supplier at different stages. Applying for an import export licence to Sudan: Exporters can apply for an export control licence for their goods. All applications will be considered by the government on a case-by-case basis in

232

line with the provisions of the Consolidated and National Arms Export Licensing Criteria.

Export & Import process how to get license: Sudan exports: are mainly crude oil and its derivatives, agricultural products, livestock and gold. Main destination of Sudan exports changed during the last four years from European countries to Asian countries. Sudan main imports: include machinery & equipment, food stuffs, manufactured goods, chemicals, transport equipment, textiles, medicine and crude materials. Arab and Asian countries were main origin of Sudan imports Of late, due to perceived uncertainty, Sudan‟s economy is showing signs of increasing stress, with investors take a wait and see attitude, capital outflow and related to this weakening of Sudanese pound, resulting among others in imports becoming more costly and increasing concern about rise in prices of key commodities. Export Regulations: Exportation in Sudan needs registration of the exporter in importers/exporters registry. Sudan applies the harmonized system for classification of exports, as in the case of imports. Export rates are ad-valorem, the export duty is 10% on cotton and gum Arabic, while on other products it is 5%. All these rates are on FAS(free alongside ship) value. There is also a 1%-2% quay duty for Sudan Seaport corporation and 1% for the Civil Aviation. There are no quantitative or quota export restrictions. No license is Required for export, except when there is no remittance, in which case an export license is issued by the Ministry of Foreign Trade and the Central Bank, and the salves contract needs to be stamped by the Ministry of Foreign Trade. Sudan has no indicative export minimum prices, which are based on the internal cost and world market prices. There are no voluntary export restrictions and no orderly market arrangements. Import Regulations: Sudan does not apply any quantitative import restrictions. All goods can be imported to Sudan except those which are prohibited by social values or security considerations. These goods are spirits and wines, narcotics, gambling equipment, arms and ammunitions.

Some guidelines: Generally, imports do not need an import license Sudan does not apply any other border measures Sudan uses the Brussels definition of value (BDV)

233

Importers must present an Import Declaration, Commercial Certificate of Origin, Quarantine License (where necessary), Sudanese Standards and Metrology Organization (SSMO) requirements or other documents for specific type of goods and complete Bank of Sudan formalities; Importers must pay the required duties, taxes and fees and receive an official release order for the goods. Duties, taxes and fees are payable before releasing the goods except for direct delivery goods. Sudan has no mandatory Pre-shipment Inspection. Importers are advised to have Pre-shipment Inspection Certificate issued by International Cargo Inspectors registered by SSMO. Double check inspection might be conducted by the SSMO. All consignments, with no Quality Inspection Certificate will be subjected to SSMO inspection at entry points. Rules of Origin The Certificate of Origin for imports is mainly required when there are tariff preferences. The Certificate of Origin for export commodities is issued by Sudan Chamber of Commerce and checked by the Customs Authorities, and it is governed generally by the preference agreement such as the Rules of Origin applied or agreed upon in the Common Market for Eastern and Southern Africa States (COMESA), the Global System of Trade Preference (GSTP) and the Agreement of Trade Facilitation & Development among the Arab States. These all topic consider about polices and norms how to get a licensing of import and export permissions and also polices norms of Indian market. That‟s consider about the rules and regulation when any company started of his business to a new culture and environment so it‟s get license of import and export. Different products when it‟s export so that rates is different in a export rates and these license is issued by the Ministry of Foreign, central bank.

234

MODULE: 5 POTENTIAL FOR IMPORT /EXPORT IN INDIA/GUJARAT MARKET INTRODUCTION: The definitions are easy. Exports are a product that a country produces more than it can consume in order to ship to other countries for a profit. An Import is product that a country gets from another country because it has a lower price than if they were to produce it themselves. For an illustration, you could take a particular industry, such as Automobiles, and show how much we import, and how much we export. Or, you could do a graph of our total imports as opposed to our total exports.

An easy way to remember them is Imports are what we take In (both starting in I), and exports are extras that we sell to other countries.Imports Goods we take into our country Exports - Goods we give out to other countries Devlop Business in Sudan? Many business people have started at opportunities in sudan.so how to do start business in sudan. A business conceptions about sudan are related to the leaders attitudes toward business and the laws and systems in place to protect business.How protect to your business in sudan…..

While there are not laws in place yet to cover every industry or business activity, there is a widely held concept of fairness. If a business is conducting their activities in an ethical manner, they are going to be ―protected.‖ If a business attempts to circumvent the law or engages in unethical behaviour, it is probably going to fail, not because of government intervention, but because it will run out of folks that want to be associated or trade with it. The major risks of doing business in sudan?It is an inhospitable area.Malaria and other debilitating diseases are widespread and deadly. Medical services are limited.Culturally the southern Sudanese people are warm, welcoming and very law abiding, so foreigners‘ physical safety isn‘t really a problem. Robbery is very uncommon although there were a few limited instances of robbery of foreigners several years ago. Hyundai India exports their 3,00,000th car Automaker Hyundai has achieved a major milestone by exporting their 300,000th Santro car to the overseas market. The company sells this model in Europe, Africa, Latin America and the SUDAN with the name “Atos Prime”. H.S Lheem, managing director, HMIL spoke to the media on the occasion: “Today Hyundai has become synonymous with quality craftsmanship and Hyundai brands have become very popular both in India and the overseas markets. The export of 300,000 cars is an ample proof of that.”

235

The company is the second largest automaker in the Indian market and is growing at a rapid pace. Lheem added on their Indian operations: “Hyundai is currently India‟s largest exporter in the automobile industry, and we are extremely keen to maintain our competitiveness in this sphere. Our recent investment plans are in line with this and the need to make India the global hub for Hyundai‟s small car.” SUDAN TO INDIA MARKET IMPORT AND EXPORT TO HYUNDAI: Hyundai Motor India Ltd, India‟s largest passenger car exporter and second largest manufacturer, on Wednesday shipped its first consignment of DKD (Disassembled Knocked Down) cars to Sudan. With an order for more than 2,000 units, the first shipment comprised of 96 DKD units of Hyundai‟s popular compact - the i10, recipient of the most number of „Car of the Year „awards in 2011. Hyundai Motor India Limited Sriperumbudur plant which has been nominated by Hyundai Motor Company as its global manufacturing hub for small cars meant for exports, was earlier shipping the Santro to the Sudanese market. Announcing this Hyundai Motor India Managing Director Hyundai i10 has achieved a remarkable figure of over 100,000 units of export orders in a record time of less than 7 months from diverse countries spanning different continents making it one of the most popular cars to be launched recently. Recently with the launch of the 1.2 litre Kappa engine i10 the performance benchmark for cars in this section has further moved up and clearly the i10 is leading the pack. The i10 will also be sold with a 4-speed automatic variant. The performance, handling, comfort and safety features of the i10 have not only won it several top honours but have added to its popularity across markets. In addition, the i10 sports a perfect blend of a compelling price tag and above-average fuel efficiency, style and comfort. Some of its features like the centre-console mounted gear lever, sunroof and dual airbags with ABS have added to its desirability. Right after its launch i10 captured the entire gamut of the most prestigious of Indian automobile awards as well as the coveted title of the „Indian Car of the Year‟ Award with its distinction and performance.

BUSINESS OPPORTUNITIES IN FUTURE: A MANY COMPANY START TO IMPORT AND EXPORT BUSINESS IN INDIAN MARKET SO IT‟S A BEST TO EMPLOYMENT OF THE INDIAN PEOPLE A COMPANY NAME AND IT‟S RELATED TO IMPORT AND EXPORT PROCESS

KOUW Enterprises: Kalol, Gujarat, India We are always open to feedback from our customers. By providing the best quality, giving the most competitive price to the market, leaming to search for new knowledge, we are honor to be trusted

236

and supported by our clients. With such strong customer support, it is no wonder that KOUW Enterprises has developed into one of the most reliable suppliers to so many different clients. We are all ears and all eyes when a customer speaks or gestures. We believe in meeting the expectations of our client as well as superseding them. We are specialized in International Logistics, Customs Clearance Services, Sea Freight Forwarding Services, Shipping Agents, Car Transportation, Freight Forwarding Services.

Related produces: Shipping agents Car transportation Air cargo Custom clearance services Freight forwarding service. KPS Company: Khawad, Gujarat, India Ever since we started our business operations, we have been constantly working towards improving the quality of our products and to offer the customers something new. Quality is the foundation of our company and is imbibed in every facet of our actions. Being a quality conscious company we take all the precautions to minimize the rate of faults and defects in our products to zero. We are specialized in: International Logistics, Sea Freight Forwarding Services, Transportation Services, Packing, Shipping Agency, Clearing Agents ..

Related produces: Packing Shipping Agency Warehousing Logistics Services Clearing Agents Brokers

B.Q.W. Ltd. Ranveri, Gujarat, India As a certified company, we B.Q.W. Ltd. are determinedly working to provide our customers with optimum satisfaction through our range of products. The company imports its products from different countries. We provide the best quality products at economical prices and within the committed time frame. We are specialized in: International Logistics, Logistics Solutions, Cargo, Car Transportation, Custom Clearance Services, Containers.

237

CONCLUSION & RECOMMENDATION

Hyundai is committed to becoming the industry leader in multiplicity.

Over the next 10 years, Hyundai will make a significant impact in the areas of minority procurement, dealership development, management development, employment, job training, and community support.Hyundai will improve representation through a strategy of targeted development, recruiting and retention

We found that Sudan people are belongs to the category of the lower middle income so They will have to great opportunities in the Sudan country related the sales of the auto product if the Hyundai company want to increased the sales turnover in the Sudan country so they will have to done reduced the sales price of the auto product in the Sudan.

Limitation of the business opportunity with Indian market because it‘s business rules of import and export it‘s a very expensive once other its licensing process is a very long.

238