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Commonwealth of Independent StatesCIS

ArmeniaGeorgia (Former Member State)Turkmenistan (Participating State)Ukraine(Participating State)RussiaTajikistanUzbekistanAzerbaijanKyrgyzstanKazakhstanMoldovaBelarus

CIS Emblem

CountrySignedRatifiedCharter ratifiedMembership statusArmenia21 December 199118 February 199216 March 1994official memberAzerbaijan21 December 199124 September 199314 December 1993official memberBelarus8 December 199110 December 199118 January 1994official memberKazakhstan21 December 199123 December 199120 April 1994official memberKyrgyzstan21 December 19916 March 199212 April 1994official memberMoldova21 December 19918 April 199427 June 1994official memberRussia8 December 199112 December 199120 July 1993official memberTajikistan21 December 199126 June 19934 August 1993official memberUzbekistan21 December 19911 April 19929 February 1994official memberCountrySignedRatifiedCharter ratifiedMembership statusTurkmenistan21 December 199126 December 1991Not ratifiedunofficial associate memberUkraine8 December 199110 December 1991Not ratifiedofficially not a memberParticipating States in CISIntroductionAfter disintegration of former Union of Soviet Socialist Republics (USSR), 15 countries came into existence. Commonwealth of Independent States (CIS), which was established in 1991, is successor body to the USSR, formed to ensure continued cooperation in trade and military policy and recognition of borders. It has no formal political institutions.Presently, out of 15 countries, 12 countries namely Russian Federation, Ukraine, Moldova, Georgia, Armenia, Azerbaijan, Belarus, Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan, Tajikistan are the members of Commonwealth of Independent States (CIS) and rest of the 3 countries namely Latvia, Lithuania and Estonia are known as Baltic States.The CIS region stretches from Central Asia to East Europe. Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan and Tajikistan fall in Asia and are commonly known as Central Asian Republics (CAR).Characteristics of CISTerritoryof the CIS-22,1mln.sq.kmNumber of resident populationin the CISas 1.01.2012- 279mln. PersonsDensity of populationin the CIS- 13 persons by 1sq. km.Share in total number of population:urban - 66%,rural- 34%;males- 47%,females- 53%Mineral and raw materials potentialities of CIS countries include practically all kinds of minerals. Mining, use (processing) and exports of mineral resources is one of the main kinds of economic activities for many states of the Commonwealth.As a whole CIS countries take one of the first places in the world by volume of explored resources of gas, petroleum, coal, iron and manganese ores, many non-ferrous metals, potassium salts and other important kinds of minerals.Continued..The main place by mineral energy resources belongs to the Russian Federation. Its share in CIS makes up the greatest part of resources of coal, petroleum, natural gas, peat and also practically all resources of oil-shales. Kazakhstan and Ukraine have considerable reserves of coal, Azerbaijan, Kazakhstan and Turkmenistan - petroleum, Turkmenistan and Uzbekistan - natural gas.As a whole CIS states take the second place in the world by volume of average annual river flow and have considerable potential operating reserves of underground waters and water resources of lakes, but these water resources are distributed unevenly along the territory of the states, which is explained by different climatic, geographic, geological and hydrological conditions of individual regions.About 90% of average annual river flow falls on the Russian Federation. Total volume of water in lakes (including border lakes with countries not included in the CIS) makes over 100 trillion cubic metres. Moreover water resources in fresh lakes make up 25 trillion cubic metres, more than 90% of which falls on Lake Baikal.Overview w.r.t. INDIATraditionally, relations between India and countries of the CIS Region have remained close and cordial since the Soviet era. After collapse of the Soviet Union commercial relations have not grown commensurately with the new states. The neighboring European Countries have occupied a major portion of trade markets in these countries.The main reasons that affect our trade with the region are: distance, language barriers, inadequate transit facilities, inadequacy of information about business opportunities, macro-economic instability, modest progress made both in liberalization and privatization, lack of direct and regular interaction among the business entities & inadequate banking facilities in the CIS Countries.Considering the potential that the CIS region offers and our insignificant presence in that market Focus : CIS Programme was launched by Commerce & Industry Minister w.e.f. 1/4/2003 at the time of announcement of the EXIM Policy on 31/3/2003. The Programme aimed to focus at countries of the CIS region with emphasis in the first phase on 7 countries namely Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan, Tajikistan, Azerbaijan and Ukraine. With a view to enhance India's trade with countries of the CIS region, the scope of the Focus: CIS Programme has been extended to rest of the CIS region, namely to Russian Federation, Armenia, Belarus, Georgia & Moldova as well.The main items being exported from India are tea, woolen goods, cosmetics, ready made garments, leather goods, chemicals, jute manufacture, cotton yarns, machine tools, machinery, pharmaceuticals, plastic products, rice, electronic goods, instruments, and chemicals. To increasebilateral relationsbetween India and central Asia, joint commissions have been set up in the various countries.

Bilateral trade between India and CIS countries ( in US $ million ) for the year 2011-12

Potential Sectors for Collaboration between India and CIS countries are:Food Sector and Agribusiness : Food Processing, Agro Products, Machinery & Equipment, Packaging, Fertilizers, Irrigation, etcPharmaceuticals & Healthcare: Medicines, Formulations, Medical devices, Hospitals, etcICT: Telecom, Technology parks, e-governance, IT training, Business Processes, etcTextiles: Tectile Machinery, Readymade garments, etcEnergy: Power Generation & Transmission, Oil Refining & Petro-Chemicals, Oil & gas exploration Fast Facts about RussiaCountry name: The official name for Russia is either Russian Federation or Russia. Both names are equal according to the Russian Constitution.Capital city: The capital of Russia is MoscowArea: Russia is the largest country in the world in terms of territory. Its total area is 17,075,400 square kilometers or 6,601,668 square miles.Population: According to the 2010 Census, the population of Russia is 142,905,200. The population has been declining since it peaked at 148,689,000 in 1991.Life expectancy: Life expectancy in Russia is 59 years for men and 73 years for womenFlag: The Russian tricolor flag consists of three horizontal bands of equal height, displaying the country's national colors: white, blue, and red.Government: Russia is a federation and semi-presidential republic. The President is the head of state and the Prime Minister is the head of government.

Continued..Official language: The official language of Russia is Russian. It is the only official language throughout the country.Monetary unit: The currency of Russia is called the ruble or rouble. One ruble is divided into 100 kopecks.Voltage: Russia has 220 volt electricity and a "Type C" European CEE 7/16 Europlug electric plug.Internet domain: Russian Internet is known as Runet in Russia. The country code top-level domain (ccTLD) reserved for Russia is .ru, however the domains .su, .rf and the internationalized domain . are also used.International dialing code: Dial +7 when making a phone call to Russia.Religion in RussiaReligion in Russia is diverseIslam, Buddhism, and Judaism as important in Russian historyOrthodox Christianity is Russia's traditional and largest religion.About 95% of the registered Orthodox parishes belong to the Russian Orthodox ChurchThe vast majority of Orthodox believers do not attend church on a regular basis.

Climate in RussiaDominance of the continental climateModerating influence of the Atlantic or PacificMost of Northern European Russia and Siberia has a subarctic climateWinter precipitation in most parts of the country usually falls as snow.Due to the moderating influence of the Atlantic or Pacific, the most areas of the country in European Russia, in the south of West Siberia and in the south of the Russian Far East, including the cities of Moscow and Saint Petersburg, experience a humid continental climate. Most of Northern European Russia and Siberia between the Scandinavian Peninsula and the Pacific Ocean has a subarctic climate, with extremely severe winters in the inner regions of Northeast, and moremoderate elsewhere.16Business facets at RussiaElegant and appropriate clothing is of great importance for Russians in business as well as in free time. Business cards are essential. If possible, ensure that one side is printed in Russian and one side in English. Younger managers, especially in big cities, are educated in Western Europe or the United States and may be perfectly familiar with western business etiquette, while others stick to the soviet style.

Personal Contacts at RussiaRussians are even in business very people oriented. Therefore it is important to gain the confidence of your business partners. The hierarchy plays an important role in Russian business structures and means that the decision makers higher up have authority over their subordinates. Informal contacts (like dinners at home or in the restaurants, excursions, visit to the theatre, etc.) are an integral part of doing business in Russia Russians appreciate your knowledge of their country and culture. Russians do not really believe in win-win situations. They can act very tough in advancing their interest. At Russia Dont praise or reward anyone in public as it may be viewed with suspicion or cause envy and jealousy. Russians often show their emotions and react positive if their counterparts do alike. Sometimes Russian business partners tend to promise more than they can fulfil. Try to sort out whether your counterpart is really the decisions maker.Personal relations are very important in Russia. Dont hesitate to ask your friends and partners to bring you in contact with the one or other person.

Russia CommunicationsRussian is the official language.Speaking or laughing loudly in public is considered rude, as Russians are generally reserved and somber.Many Russians speak English, as it is often taught beginning in the third grade.Russians are highly literate, and have almost a 100% literacy rate.Good topics of conversation include peace, the current changes taking place in Russia, and their current economic situation.Media of Russiawide range of broadcast and print outlets are available to the consumerIn total, there are 93,000 media outlets in Russia, including 27,000 newspapers and magazines and 330 television channels with 400 daily newspapers.Television is the most popular source of information.Local and national newspapers are the second most popular choice, while the Internet comes third.There is no lack of independent media in Russia, especially in print media and Radio.Corporate CultureRussians appreciate punctuality. Business meetings generally begin on time.Business cards are handed out liberally in Russia and are always exchanged at business meetings. The ceremony of presenting and receiving business cards is important.Representatives of the Russian company or government body are usually seated on one side of a table at meetings with guests on the other side.Your company should be represented by a specialized team of experts. Presentations should be thoroughly prepared, detailed, factual and short.Russians find it difficult to admit mistakes, especially publicly. They also find it difficult to risk offending someone by making requests or assertions.Personal relationships play a crucial role in Russian business.Business negotiations in Russia are lengthy and may test your patience. Plan to be in for the long haul.Time at RussiaGood things need time. Business in Russia is often very time-consuming and negotiations can go on for several months even if the Russian part is very interested in the deal. On the other hand your Russian partner will sometimes ask you to submit information or a document in extremely short terms. The Russians attitude to time means that a few minutes delay on their part is of little importance. How-ever, they will expect you to be punctual. A leap from INDIA to RussiaWhen a company is successful in India against all the odds, we think it is able to compete in very adverse circumstances. so it has a natural advantage when it goes international and competes in more favorable regimes.WARREN TEA Ltd. INDIANew Market Entry In Russia

Company Background The Company was incorporated on 31st May 1977 in the state of Assam Warren Tea Limited is the flagship of the Warrens group Cultivation of tea plantations, manufacture of machinery for processing tea 14 tea estates with total planted area under tea measuring about 6,078 ht. Carry on the business as warehousemen, shippers and exporters Warren Tea Limited produces 16 million kg of tea annually The produce of the Company is savoured across 50 countries One of the largest bulk tea producers in India and in the worldToday Warren Tea continues to thrive in many directions. With all the 14 gardens in the emerald valley of the Brahmaputra, in Upper Assam, covering some 8,000 hectares of prime tea country, it maintains its coveted position as one of the largest producers and exporters of quality CTC and orthodox teas of highest world repute. Apart from its peerless range of garden bulk teas, Warren Tea also offers its international clientele, packaged teas in attractive packets, caddies and tea bags.Current International Business

The company exports its products to the United Kingdom, Germany, Ireland, North America, Pakistan, Iran, and the Middle East.Why go RussiaTo increase sales, revenues, and profitsCompetitive advantages in new marketsExcess capacityLimited or declining home marketDomestic competition entering international markets. Competitive response. Eg: Tata Teas entry in to the U.S., China, and other global markets; J.V. Gokals entry in to the Russian market.Global consumers' tastes are converging. Easier to offer a globally standardized product.Lower costs and higher prices - opportunities for profit70% of Russians' income is disposable vs. around 40% in the WestRussia: top location for global retailOpportunities for Indian Tea Companies in the Russian Tea Market

CATEGORIES

GLOBALINDIARUSSIAMarket size in terms of retail value23,323876.43,266Market size in terms of retail volume1,765226.04161.44Growth rate in terms of retail value (08-09)4.50%3.50%12%Growth rate in terms of retail volume (08-09)3.50%2.60%2.30%Per capita consumption (per kg)0.30.71.3Average retail price (in US$ per kg)$13.20$3.90$20.20Growth rate in retail price (2008-09)0.90%0.90%9.50%Opportunities for Indian Tea Companies inthe Russian Tea Market

Provides access to government contacts and existing distribution networkProvides local help minimizing problems associated with bureaucracy and corruptionPooling of resourcesSharing of profits and risks Time-to-Time market advantagesEntry mode - Joint VentureHad Joint Venture Between,

Warren tea Ltd entered into joint venture with local Russian tea industry like..1.Orimi Trade2.MOSCOWTEAFACTORY LIMITED COMPANYTea in Russia v/s Tea in INDIATraditionally, black tea is the most common tea in Russia, butgreen teais becoming more popular, and thus company is eyeing green tea market in Russia. Green tea is still less adopted in India so surplus is abundantly available for exports. Traditional tea in Russia includes the traditional type known asRussian Caravanas it was originally imported from China via camel caravan. As the trip was very long, usually taking as long as 16 or 18 months, the tea acquired its distinctive smoky flavor from the caravan's campfires. Today, this tea is often given its smokyflavorafter fermentation or is akeemunor a "black oroolongfrom China or Formosa (Taiwan) with a hint of smokyLapsang Souchongor Tarry Souchong."A notable feature of Russian tea culture is the two-step brewing process. Firstly, tea concentrate is prepared: a quantity of dry tea sufficient for several persons is brewed in a small teapot. Then, each person pours some quantity of this concentrate into the cup and mixes it with hot water; thus, one can make one's tea as strong as one wants, according to one's taste.

Due to this reason only raw tea is exported in Russia which is then processed in Russia by local tea units linked by joint ventures. 95% or more of Indias imported tea is loose leaf, since there is a big difference in customs duties on loose leaf and packaged tea. While a zero duty is paid on loose tea, package tea from India if the supplier has a certificate of origin is subject to a 15% duty. Plus a VAT of 18%; you can calculate how much it makes. As a result, very little loose leaf tea is imported. Up until the 1990s, imports from India were between 100,000 and 120,000 tonnes a year.Tea is made both at home and outside. Outside the home, tea is most commonly and easily found at the ubiquitous tea stalls that dot just about every street in India.There are many other popular variations depending on regional and cultural affiliations. By and large, tea drinkers in India drinkmilk tea. There are many other popular variations depending on regional and cultural affiliations. The now well knownMasala Chai, Kadak Chai (typically a feature of the mountain community of North India, this is a very strongly brewed tea, almost to the point of bitterness), Malai Mar Ke Chai (where a generous dollop of full fat cream is spooned into the cup of tea) are some of the more popular variations.New Market Entry In RussiaDr. Reddys Laboratories

IntroductionBeginning as a small firm with scanty resources, Dr. Reddys Laboratories has grown into the second largest pharmaceutical in India.Dr. Reddy's Laboratories is India's leading pharmaceutical company with presence in over 100 countries. Dr Reddy's manufactures a range of products such as Active Pharmaceutical Ingredients, Generic & Branded Finished Dosages, Speciality Pharmaceuticals, and Biopharmaceuticals.The global generics and pharmaceutical services and active ingredients segments make up most of the company's revenue at about 71% and 26%, respectively. About 83% of Dr. Reddy's sales are based outside of India, with nearly 38% from North America and 17% from Europe.The company's first international move took it toRussiain 1992. There, Dr. Reddy's formed a joint venture with the country's biggest pharmaceuticals producer,Biomed. They pulled out in 1995 amid accusations of scandal, involving "a significant material loss due to the activities of Moscow's branch of Reddy's Labs with the help of Biomed's chief executive".Reddy's sold the joint venture to the Kremlin-friendly Sistema group. In 1993, Reddy's entered into a joint venture in theMiddle Eastand created two formulation units there and in Russia. Reddy's exported bulk drugs to these formulation units, which then converted them into finished products. In 1994, Reddy's started targeting the US generic market by building state of art manufacturing facility.How it all happened?Why Russia?India and Russia had a lot of very strong defense links and there was always this Rupee-Ruble counter trade. Reddys always had a Ruble surplus because they used to buy a lot from the erstwhile Soviet Union. They also bought many goods from India largely commodities such as coffee, tea, cigarettes, rice etc. Drugs and pharmaceuticals were then added to the list and Russia became a big market for Indian pharmaceutical companies.

Meanwhile, the generics industry started growing in the US and they started sourcing products globally, active ingredients from India, China and other countries. The Soviet Union collapsed and moved to a free market economy.How it entered?Reddys started their internationalization journey in the decade of 1990s, by setting up representative offices. Then slowly they moved up the value chain by beginning to acquiring internationally. They made their first international acquisition in the year 2002. This was a small company in the United Kingdom (UK). they did it to really get a foothold in the UK market, using this small acquisition as a base.What they observe?Reddys look at markets which are attractive from an ease of entry perspective and at their own ability to compete. For example, the transparency of the regulation, the orderliness of the trade, the size of the marketHow Russia was targeted?Russia became very attractive to them for specific reasons. It was on the cusp of political turmoil and change as Gorbachev arrived on the scene and unrolled Glasnost and perestroika. A centralized economy was transforming itself to a market-driven one; they just rode the wave. Today it is a very, very attractive market for them, and they have a very strong brand presence in Russia. Sometimes, instability offers you an advantage. Venezuela today is a great market for them in a counterintuitive way. A lot of western companies have moved out, creating a vacuum.How they differentiate?They differentiate themselves in the global market in two ways: basically through the choice of customers and the choice of products. they have customers of two kinds. One is the business-to-business (B2B) kind of customer - the distributors. Then they have the end-users as customers in the branded markets.In Russia, they go directly to the customer. In the US, it is B2B. In Russia, they go directly to the customer. they select customers who are long term in nature and who require a very high level of service. they avoid transactional customers, the ones who come only for price.In the branded markets, Reddys choose therapeutic areas (TAs) where they can make a difference. So they select a subset of doctors in their TAs and then make a customer choice. They also make product choices. Internally, they have decided that they will not be very broad-based in their product offering. They will remain narrow and target products with a high degree of scientific complexity. So they tend to be in product markets where there are not many companies participating. Largely, they are the first or the second to get into a segment, but not the tenth. Strategies at RussiaEnhance contracting capabilitiesCreated high-volume sales opportunities to overcome low margins on off-patent productsEstablished sustained local capabilities with strong local talentLocal manufacturing at Russia is a show of goodwill to local authoritiesEngaged in portfolio marketingAs they found Physician engagement and brand equity are critical for success at Russia.Recalibrated regulatory affairsBolster the sales force with multi-channel engagementCreated trust and recognition among healthcare providersProvided lower-cost solutions for lower priced marketsIndia everywhere is a reality from Davos to Delhi, from California to Kolkata, India is shinning all the way. Not without reasons, India is one of the fastest growing economies in the world, clocking nearly a double-digit growth and that barometer of the economy - the stock market is clearly reflecting it. No wonder then, foreigners see a great investment opportunity in the world's largest democracy, that too English speaking.A leap from Russia to INDIA

SIBUR

SIBUR is the largest petrochemical company in Russia and Eastern Europe, one of the fastest growing petrochemical companies in the world and in the top three by EBITDA margin in the petrochemical industry globally. The Company is one of the top two European synthetic rubbers producers.

SIBUR operates across the entire petrochemical process chain from gas processing, production of monomers, plastics and synthetic rubbers to the processing of plastics. SIBUR is a vertically integrated company with its gas processing facilities providing feedstock for its petrochemical production. SIBURs export sales are around 40-45%. The company has trade houses in Europe and China. Overall, the company produces more than 2,000 different brands of products and invested more than $2 billion in further developments in 2011.How it entered?Reliance Sibur Elastomers Private Limited is a JV formed between SIBUR and Reliance Industries Limited (RIL) in February 2012 to produce 100,000 tonnes of butyl rubber per year at Reliances integrated petrochemical site in Jamnagar, India. Reliance Industries Limited owns 74.9% of the JV and SIBUR 25.1%.

Continued..The joint venture will be the first manufacturer of butyl rubber in India and the fourth largest supplier of butyl rubber in the world.The JV will meet demand for synthetic rubber from the Indian automotive industry, whose current requirement for more than 75,000 tonnes per year is satisfied by imports.Reliance Industries will own 74.9% of the JV with SIBUR 25.1%. The JV will invest US$450 million to construct the production facility, which is expected to be commissioned in 2015.RIL and SIBUR also signed a technology licence agreement facilitating use of SIBUR'sbutyl rubber production technology at the new facility. SIBUR will develop basic engineering design for the facility and also train the JVs personnel at its production site in Togliatti, Russia.Main considerations here,Under the agreement SIBUR is designing a Basic Engineering Package (BEP) and providing highly-experienced technical personnel on both project and operational stages. RIL will supply monomer from its oil refining-cum-petrochemical site in Jamnagar and will provide the JV with world-class infrastructure and utilities.India is one of the most attractive petrochemicals markets right now due to the significant investment in infrastructure which has spurred demand. SIBURs technologies together with Reliances infrastructure and resources will help to establish a facility that will meet the demand for butyl rubber in Asian marketWhy India?Marketing DynamicsSIBUR is a uniquely positioned gas processing and petrochemicals company with a business model focused on the integrated operation of its two core segments. Group owns and operates Russias largest gas processing business in terms of associated petroleum gas processing volumes, according to IHS CERA and is a leader in the Russian petrochemicals industry.Through this venture SIBUR wants to leverage its strengths and make an entry into India which is a highly emerging market and competent economy in recent future.Product PortfolioThe Group has two operating and reportable segments: feedstock and energy and petrochemicals.The Groups feedstock and energy segment comprises:gathering and processing of associated petroleum gas (APG) that the Group purchases from major Russian oil companiesTransportation, fractionation and other processing of natural gas liquids (NGLs)Marketing and sales of energy products, such as natural gas, liquefied petroleum gases (LPG), naphtha, raw NGL, methyl tertiary butyl ether and other fuels and fuel additives. The Group sells these energy products on the Russian and international markets and uses some of them as feedstock for its petrochemicals segment, which processes them into various petrochemicals, including basic polymers, synthetic rubbers, plastics and products of organic synthesis

Introduction to Kamaz VectraKAMAZ Groupof Companies is the largest automobile corporation of the Russian Federation. KAMAZ Inc. ranks one of the leading world heavy truck manufacturer and takes 8th place in the world by production volumes of diesel engines. About 59 thousand people work in departments and associated companies of KAMAZ Inc.KAMAZ Inc. is one of the largest truck manufacturers in Europe and leader in the cargo vehicle market in Russia and the CIS countries, such as Ukraine, Kazakhstan, Turkmenistan, and Belarus. KAMAZ Inc. manufactures a wide range of cargo vehicles, including tractors, side-board trucks, and tippers. The vehicles come with wheel arrangements in different sizes and dimensions: 4x2, 4x4, 6x4, 6x6, 8x4, and 8x8, and with gross weights up to 120 tons.The Vectra Groups core businesses include aviation, engineering, material handling and construction equipment, automotive, real estate, information technology, and the services sector. The operations of Vectra Group are primarily in India and Eastern Europe, spanning more than 18 companies, with eight manufacturing facilities in four countries (India, UK, Czech Republic, and Slovakia). In addition, Vectra Group has offices and/or investments in France, Russia, Singapore, and HungaryHow it entered India?Russian Truck major Kamaz is known for its rock solid and high performance trucks. No wonder it is the most preferred choice for defence applications, world over. This DNA of Kamaz trucks is maintained across all its products, be it tippers, haulage trucks, tractor-trailers and buses. Till date, Kamaz has sold close to two million trucks and buses worldwide making it the 7th largest manufacturer in the world. To improve on this position the company has made an entry into the Indian commercial vehicle market in a joint venture with the Vectra Group.Kamaz Vectra Motors Ltd. (KVML), a 51:49 JV between Kamaz Inc. and the Vectra Group, has established a manufacturing facility at Hosur, near Bangalore, for tippers and heavy trucks. KVML has made an initial investment of $16 million with a capacity to manufacture 12,000 trucks and tippers per annum.In a way, Kamaz in Russia is like the Tata Group in India. Although held by the government, Kamaz is a conglomerate of 211 companies in its hold manufacturing everything from steel to engines to components to fully built vehicles. It has independent joint ventures with Cummins for engines, ZF for transmissions, Knorr-Bremse for braking systems and many other global companies for components and aggregates.Strategy for IndiaKamaz has prepared a long-term strategy for entry into the Indian market.KVML has launched 6540 tipper model which is one of the most successful models of Kamaz worldwide with more 100,000 units of these tippers functioning in various parts of the world.The 6540 is a 31-tonner tipper built on a multi-axle chassis of 8X4 configuration with 260 hp engine.KVML plans to launch three more products in the Indian market the current 8X4 model with a longer wheel base for tipping and haulage purpose; a 6X4 Tractor-Trailer model and a 4X2 Tractor-Trailer for haulage purpose.Our plan is to stay focused on the medium and heavy duty applications and offer differentiated products from those available in the market today, says Mr. Denis E. Trifonoff, Chief Executive Officer, KVML.Company aims to offer European technology products at Asian prices.Current ScenarioCurrently all major aggregates are being imported from the Kamaz facility in Russia, including engines, gear box, axles, braking systems and cabs.The level of indigenization is currently around 20 per cent, which includes tyres, wheel rims, batteries and few more electrical components.The tipper bodies are being sourced locally from Hyva and JCBL. Progressively, KVML is planning to indigenize most of aggregates.From June this year, gear boxes and steering systems will be supplied by ZF in India and braking systems by Wabco-TVS.In September KVML will also be launching the longer wheel base chassis for super structures on its 8X4 models for applications like cranes, concrete mixers, boom pumps. The company will be signing an MoU with crane manufacturers soon for the purpose.Marketing Strategy for IndiaKamaz realized that they cannot offer mass market trucks in India.This is due to a fact that they cannot fight with domestic players due to their well established network and Indian customer loyalty to them.Thus Kamaz came out with Heavy duty truck segment for India market.According to them the future belongs to multi axle trucks and they want to establish themselves as an important player in this segment.Currently KVML is identifying potential customers and selling its trucks directly to them. By the end of this fiscal year, the company is planning to establish a full-fledged dealer and service network.In order to capture the growing markets in Defence, Para-military and Police Forces as also in Mining, BEML & KVML have signed a Memorandum of Agreement for mutual business co-operation and development.By this strategic alliance, BEML and KVML will develop and supply 44 Stallion Type of Vehicles for on-road application besides both companies will also work together in developing products for mining applications.Product detailsKVML is currently offering two variants, one which comes with Euro 2, 260 hp engine and the other is Euro 3,280 hp engine. Both are Kamaz engines, which are trustworthy, proven engine, performing in hot and tough environment as the case with Indian roads and environment.KVML offers 9-speed ZF manual transmission on the 6540 model due to vivid topography of India.The company also offers Allison automotive transmission as optional in certain models based on the customer preference.Kamaz has showcased its low floor city bus at the Auto Expo in Delhi making its intentions clear that the company is interested in the Indian bus market as well.The company wants to offer CNG technology particularly for city bus application like Chennai, Bangalore, Delhi.Kamaz offers its 6540 model for 32 lakh in India, which is the most competitive price for this product as compared to its price in other nations.Product modifications for IndiaIntroduced more than 300 enhancements and design changes on our trucks to suit the local conditions.has 72 per cent local content on our trucks, including transmissions sourced from ZF and brake systems from Wabco in India.Offering Cummins engines as an option for customers.The truck is fitted with two fuel tanks of 210 liters displacement each, which will allow lengthy truck operations without refueling.It can carry up to 18 m3 cargo and its tipping angle during the unloading can reach 55.KVML is offering four different variants of the 6540 model 16 cum box and Rock body, 18 cum box body and 20 cum box body.Kamaz changed trucks to Right hand drive within 3 months of announcement to suit Indian Markets.Kamaz changed location of exhaust pipes to suit Indian hot environment. Also it added changes in the lighting assembly to suit Indian market.Use of common frame platform to reduce cost and assemble time for Indian markets.Exports from IndiaJust like every other Global manufacturer, Kamaz also plans to make India as a hub for exports to neighboring countries. The company wants export trucks, particularly for countries which have right-hand drive like Bangladesh, Indonesia, South Africa and many other markets.Kamaz plans to generate 30% of our sales from exports.Kamaz is quite serious about the Indian market. India could potentially become the biggest market outside of Russia for the company. It realizes the need to be part of emerging economies and India is the best fit in terms of products and technologies. Of all the new players who are entering the Indian commercial vehicle segment, Kamaz could be a serious player to watch out for.Thank You