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A GLOBAL / COUNTRY STUDY REPORT (GCSR) Selected Country: Netherland Selected Company: Holland P. T. Corporation (Netherland) Ashwani Metals Pvt. Ltd. (India) Selected Product: Brass Products SUBMITTED BY PARAM INSTITUTE OF MANAGEMENT & RESEARCH, JAMNAGAR GUIDED BY PROF. YAGNESH TRIVEDI ACADEMIC YEAR 2011-2013 AFFILIATED TO GUJARAT TECHNOLOGICAL UNIVERSITY AHEMDABAD

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A

GLOBAL / COUNTRY STUDY REPORT (GCSR)

Selected Country: Netherland

Selected Company: Holland P. T. Corporation (Netherland)

Ashwani Metals Pvt. Ltd. (India)

Selected Product: Brass Products

SUBMITTED BY

PARAM INSTITUTE OF MANAGEMENT & RESEARCH,

JAMNAGAR

GUIDED BY

PROF. YAGNESH TRIVEDI

ACADEMIC YEAR

2011-2013

AFFILIATED TO

GUJARAT TECHNOLOGICAL UNIVERSITY

AHEMDABAD

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

Declaration:

We, students of Param Institute Of Management And Research, Jamnagar, hereby declare that the report for

global/ country study report entitled “Import Export Of Brass Products” in Netherland is a result of our own

work and our indebtedness to other work publications, references , if any, have been duly acknowledged.

Place: Jamnagar (signature)

Date: Name of student

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

Acknowledgement

It is our pleasure to present this project on “Import Export of Brass Products” in Netherland. There

are so many people involved in this project, without their support this project was not possible for us

to prepare such a project report. We thankful all those persons who helped us in carrying out this work.

We are hardly thank to honorable VC Dr. Akshai Agrawal of Gujarat Technological University and

other member of GTU. We are hardly thank to Dr. Hansaben Sheth our principle of Param IMR and

our guide Mrs. Bonisa Bhandari

It was really a memorable report and we would like to thank Mr. Mayur Dhuker, export manager and

all those of persons of the Ashwani Metals Pvt. Ltd. Who had guided us in our project and made it

really a successful one.

We also thankful Mrs.Bonisa Dave Bhandari, and all other faculty members, who helped us and guide

us in preparing this project report.

We have tried our level best to present the available information in the best possible manner

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

Sr.No. Particular Pg. No.

1 Overview of the Netherland 2

2 Demography Detail of Netherland 3

3 Economic overview of Netherland 7

4 Overview of Company 12

5 Organizational Study 23

6 Overview of International Industries Trade & Commerce 42

7 Overview of Different Sector of Natherland 64

8 Policy & Norms of Import & Export 70

9 Present Trade Barriers 88

10 Present Trade Relation & Business Volume 91

11 PESTLE Analysis 59

12 Present Position of Business Opportunity 104

13 SWOT Analysis 112

14 Potential for Import/Export in Gujarat and Business

Opportunities

118

14 Per Capita Income 131

16 Suggestion 140

16 Conclusion 141

17 Literacy 143

18 Appendix 149

Sr.No. Particular Pg. No.

1 Overview of the Netherland 2

2 Demography Detail of Netherland 3

3 Economic overview of Netherland 7

4 Overview of Company 12

5 Organizational Study 23

CONTENTS

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

6 Overview of International Industries Trade & Commerce 42

7 Overview of Different Sector of Natherland 64

8 Policy & Norms of Import & Export 70

9 Present Trade Barriers 88

10 Present Trade Relation & Business Volume 91

11 PESTLE Analysis 59

12 Present Position of Business Opportunity 104

13 SWOT Analysis 112

14 Potential for Import/Export in Gujarat and Business Opportunities 118

14 Per Capita Income 131

16 Suggestion 140

16 Conclusion 141

17 Literacy 143

18 Appendix 149

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

OVERVIEW

OF

NETHERLAND

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

Demographic Profile of Netherland Country:

Demography of any country may include several points that are given in the

following chart,

NO. Particular Detail

1 Population

16,730,630 (December

2102 est.)

Note: Note: Starting with

the 1993 Factbook,

demographic estimates for

some countries (mostly

African) have explicitly

taken into account the

effects of the growing

impact of the HIV/AIDS

epidemic.

2 Age Structure

0-14 years: 17% (male

1,466,218/female

1,398,463)

15-64 years: 67.4% (male

5,732,042/female

5,624,408)

65 years and over: 15.6%

(male 1,141,507/female

1,484,369) (2011 est.)

3 Median Age

Total: 41.1 years

Male: 40.3 years

Female: 41.9 years

(2011 est.)

4 Population Growth

Rate

0.452% (2011 est.)

5 Birth Rate 10.89 births/1,000

population (2011 est.)

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

6 Death Rate 8.39 deaths/1,000

population (July 2011 est.)

7 Net Migration Rate 2.02 migrant(s)/1,000

population (2011 est.)

8 Urbanization

Urban population: 83%

of total population (2010)

Rate of urbanization:

0.8% annual rate of change

(2010-15 est.)

9 Sex Ratio

At birth: 1.05

male(s)/female

Under 15 years: 1.05

male(s)/female

15-64 years: 1.01

male(s)/female

65 years and over: 0.8

male(s)/female

otal population: 0.98

male(s)/female (2011 est.)

10 Infant Mortality Rate

Total: 3.73 deaths/1,000

live births

Male: 4.03 deaths/1,000

live births

Female: 3.41 deaths/1,000

live births (2011 est.)

11 Life expectancy at

birth

Total population: 80.91

years

Male: 78.84 years

Female: 83.08 years (2011

est.)

12 Total Fertility Rate 1.78 children born/woman

(2011 est.)

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

13 HIV/AIDS - adult

prevalence rate

0.2% (2009 est.)

14 HIV/AIDS - people

living with HIV/AIDS

22,000 (2009 est.)

15 HIV/AIDS - deaths Fewer than 100 (2009 est.)

16 Major infectious

diseases

17 Nationality

Noun: Dutchman(men),

Dutchwoman(women)

Adjective: Dutch

18 Major Cities-

Population

AMSTERDAM (capital)

1.044 million;

Rotterdam 1.008 million;

The Hague (seat of

government) 629,000

(2009)

19 Literacy

Definition: age 15 and

over can read and write

Total population: 99%

Male: 99%

Female: 99% (2003 est.)

20

School life expectancy

(primary to tertiary

education)

Total: 17 years

Male: 17 years

Female: 17 years (2008)

21 Education

Expenditure

5.3% of GDP (2007)

22 Maternal mortality

rate

9 deaths/100,000 live

births (2008)

23 Health expenditures 10.8% of GDP (2009)

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

24 Physicians density 3.921 physicians/1,000

population (2007)

25 Hospital bed density 4.25 beds/1,000 population

(2008)

26 Government The Hague

27 Types of Government Constitutional monarchy -

parliamentary democracy

28 Currency Euro

29 National Holidays Queen’s Day (30 April)

Liberation Day (5 May)

Table 1: Demographic Profile of Netherland Country

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

Economic Overview of the Netherland

The Dutch economy is the fifth-largest economy in the euro-zone and is noted for its stable

industrial relations, moderate unemployment and inflation, a sizable trade surplus, and an

important role as a European transportation hub. Industrial activity is predominantly in food

processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized

agricultural sector employs only 2% of the labor force but provides large surpluses for the food-

processing industry and for exports. The Netherlands, along with 11 of its EU partners, began

circulating the euro currency on 1 January 2002. After 26 years of uninterrupted economic growth,

the Dutch economy - highly dependent on an international financial sector and international trade

- contracted by 3.5% in 2009 as a result of the global financial crisis. The Dutch financial sector

suffered, due in part to the high exposure of some Dutch banks to U.S. mortgage-backed securities.

In 2008, the government nationalized two banks and injected billions of dollars of capital into

other financial institutions, to prevent further deterioration of a crucial sector. The government

also sought to boost the domestic economy by accelerating infrastructure programs, offering

corporate tax breaks for employers to retain workers, and expanding export credit facilities. The

stimulus programs and bank bailouts, however, resulted in a government budget deficit of 5.3%

of GDP in 2010 that contrasted sharply with a surplus of 0.7% in 2008. The government of Prime

Minister Mark RUTTE began implementing fiscal consolidation measures in early 2011, mainly

reductions in expenditures, which resulted in an improved budget deficit of 3.8% of GDP.

The following table may clearly define the all over economic overview of the Netherland country

for the year 2011. It also contains the comparison with the year 2009 and 2010.

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

Particular Statistics

GDP (Purchasing Power Parity)

$713.1 billion (2011 est.)

$704.1 billion (2010 est.)

$692.8 billion (2009 est.)

GDP (Official Exchange Rate)

(As per US $)

$858.3 billion (2011 est.)

GDP-Real Growth Rate

1.6% (2011 est.)

1.6% (2010 est.)

-3.5% (2009 est.)

GDP-Per Capita (PPP) $42,300 (2011 est.)

$41,800 (2010 est.)

$41,300 (2009 est.)

GDP-Composition by Sector

Agriculture: 2.7%

Industry: 24.2%

Services: 73.1 %( 2011 est.)

Labor Force 7.809 million (2011 est.)

Labor Force-By Occupation

Agriculture: 2%

Industry: 18%

Services: 80 %( 2005 est.)

Unemployment Rate 4.4% (2011 est.)

4.5% (2010 est.)

Population Below Poverty 10.3% (2005)

Investment (Gross Fixed) 18.6% of GDP (2011 est.)

Budget Revenues: $381.3 billion

Expenditure: $420.4 billion (2011 est.)

Taxes and Other Revenues 45.4 % of GDP (2011 est.)

Budget Surplus(+) Or Deficit(-) -3.8% of GDP (2011 est.)

Public Debt.

64.4% of GDP (2011 est.)

62.7% of GDP (2010 est.)

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

Inflation Rate (Consumer Prices)

2.3% (2011 est.)

1.3% (2010 est.)

Central Bank Discount Rate 1.75% (31st December,2011)

1.75% (31st December,2010)

Commercial Bank Prime Lending Rate

8.33% (31st December,2008)

9.21% (31st December,2007)

Rank: 93

Stock of Narrow Money $367.2 billion (31st December,2011)

$375.5 billion (31st December,2010)

Stock of Broad Money $1.119 trillion (31st December,2011)

$1.088 trillion (31st December,2010)

Stock of Domestic Credit $2.083 trillion (31st December,2009)

$1.824 trillion (31st December,2008)

Market Value of Public Traded Shares $NA (31st December,2008)

$488.6 billion (2003)

Agriculture-Products

Grains, Potatoes, Sugar beets, Fruits,

Vegetables; Livestock

Industries

Agro Industries, Metal and Engineering

Products, Electrical Machinery and

Equipment, Chemicals, Petroleum,

Construction, Microelectronics, Fishing

Industrial Production Growth Rate -0.6% (2011 est.)

Electricity – Production 105.7 billion KWh (2009 est.)

Electricity – Production by Source

Fossil Fuel: 89.9%

Hydro: 0.1%

Nuclear: 4.3%

Other: 5.7% (2001)

Electricity-Consumption 112.5 billion KWh (2008 est.)

Electricity-Exports 10.56 billion KWh (2009 est.)

Electricity-Imports 4.888 billion KWh (2009 est.)

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

Oil-Production 59,490 bbl/day (2010 est.)

Oil-Consumption 1.009 million bbl/day (2010 est.)

Oil-Export 1.871 million bbl/day (2009 est.)

Oil-Import 2.577 million bbl/day (2009 est.)

Oil-Proves reserves 310 million bbl (1 January 2011 est.)

Natural Gas-Production 85.17 billion cu m (2010 est.)

Natural Gas-Consumption 53.19 billion cu m (2010 est.)

Natural Gas-Export 57.75 billion cu m (2010 est.)

Natural Gas-Import 25.77 billion cu m (2010 est.)

Natural Gas-Proved Reserved 1.387 trillion cu m (1 January 2011 est.)

Current Account Balance $64.1 billion (2011 est.)

$55.95 billion (2010 est.)

Exports $576.9 billion (2011 est.)

$486.7 billion (2010 est.)

Exports-Commodities Machinery and Equipment, Chemicals, Fuels;

Foodstuffs

Exports Partners Germany 26%, Belgium 13%, France 9.2%,

UK 7.7%, Italy 4.9% (2009)

Imports $514.1 billion (2011 est.)

$429.5 billion (2010 est.)

Imports-Commodities Machinery and Transport equipment,

Chemicals, Fuels, Foodstuffs, Clothing

Imports-Partners

Germany 15.5%,China 12.6%,

Belgium 8.3%, US 6.8%, UK 6.2%,

Russia 5.6% (2009)

Reserves of Foreign Exchange and Gold $46.24 billion (31st December, 2010 est.)

Debt-External $2.655 trillion (30th June,2011)

$3.733 trillion (31st December, 2010)

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

Sock of Direct Foreign Investment- at Home $590.3 billion (2011 est.)

$587.3 billion (2010 est.)

Sock of Direct Foreign Investment- Abroad $989.3 billion (31st December,2011)

$954.6 billion (31st December,2010)

Exchange Rates

Euros (EUR) per US dollar-

0.7345 (2007 est.)

0.7107 (2011 est.)

0.7532 (2010 est.)

0.7198 (2009 est.)

0.6827 (2008 est.)

Fiscal Year Calendar Year

Table 2: Economic Overview of the Netherland

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

INTRODUCTION

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

OVERVIEW OF THE INDUSTRY

In today’s time, the Brass products are produced almost all over the world. However, this was

not the case in the past. The Brass Part industry was not developed at all the places of the world,

because it requires a particular type of temperature and humidity to mold the raw material into

a particular shape.

The raw materials required to carry on the production were also not available very easily in the

past. But with the passage of time, with the development of transportation facilities and

technologies all such hurdles had been removed and the Brass Part industry started developed

at almost all over the country.

Indian foundry industry is the sixth largest industry in the world after: USA, China, Japan,

Russia and Germany. Indian foundry industry is the second largest player after China in terms

of Units & Number of People Employed.

There are 7000 recognized foundry units including small, medium & large scale sectors in all

over the country and approx. 80% foundry units are in the small scale. Indian foundry industry

has a sizable export turnover of goods valued at Rs.3400 Cr. per year. Currently, the industry

is growing at 8% a year, & is determined to increase this over to 20% by 2010.

The latest world census of casting by modern casting – USA, India produces an estimated 6mt

of various grades of casting as per International standards, proving that the foundations of

Indian foundry are strong enough to cater domestic demands & exports.

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

BRASS INDUSTRY IN JAMNAGARCITY

Jamnagar is known as reputed brass parts manufacturing center for more than half a century.

Another major landmark in the history of brass part industry in Jamnagar was the creation of

first state sponsored industrial estate in Jamnagar viz., GIDC Phase-I in the year 1969.

In 1983 the Government of Gujarat through its Gujarat industrial development corporation,

launched the creation of GIDC Phase-II. These public and private industrial estates gave a real

boost to the brass parts industry in Jamnagar.

Basic infrastructure like electricity, road, and water was easily available in these industrial

estates. This provided tremendous impetus for the clustering phenomena and within a span of

three years the total number of brass parts manufacturing enterprises increased to 1500 by 1980.

The number grew to 3000 units in 1988 and 4500 in 1998. Establishment of ports in Bedi and

Rosi Bandar and the strategic location of Jamnagar (the Arabian Sea) also contributed for the

growth of the sector.

Today, with the help of the government for the development of brass part industry in Jamnagar,

numbers of brass items are produced in numbers of factories. Government has provided various

subsidies to brass part industry for the EOUs (Export Oriented Units) to boost the export of the

brass items.

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

GROWTH OF BRASS INDUSTRIAL UNIT IN JAMNAGAR

Sr. No. Year No. of units

1. 1952 1

2. 1954-55 15

3. 1960-61 250

4. 1967-68 700

5. 1979-80 1500

6. 1988 3000

7. 1994 3500

8. 1998 4500

9. 2002 5803

10. 2006 6012

11. 2007 6354

12. 2008 6623

Table 3: GROWTH OF BRASS INDUSTRIAL UNIT IN JAMNAGAR

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

FACTORS BEHIND THE DEVELOPMENT OF BRASS INDUSTRY

Availability of Raw Material:

Raw materials used in brass parts are brass honey, dross of brass, pales in the form of strips and

other scrap. This raw material became easily available in and around Jamnagar at a reasonable

price. As the industry grew the process of procuring raw material, from within the country and

abroad became more and more smooth. Other inputs like cock, molasses and machines were also

available locally.

Skilled Manpower and Customized Machines:

Skilled technicians and workers were also easily available in this cluster. Because of agricultural

development (mainly due to scarcity of water) and non-availability of alternative occupation,

people started learning the skills of manufacturing brass parts and operating the machines. The cost

of employing a labour was also minimal. Moreover, second-hand& customized machines were

available at reasonable price.

The Soil Base:

Though there is no apparent technical reason to support their claim, the entrepreneurs at Jamnagar

are of the opinion that the soil (“Chiknimitti”) composition also helped in manufacturing quality

brass castings. A composition of oil and sand is used in the mould to a particular give shape and

size to the brass parts. The more is the binding property of soil and sand, the better is the quality

of casting manufactured. The availability of water also ushered the growth of the cluster.

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

INTRODUCTION OF

COMPANY

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

VISION OF THE ASHWANI METALS PVT. LTD

“To be recognized as Industry Leader for Quality Brass Parts & Assemblies,

Worldwide”

MISSION OF THE ASHWANI METALS PVT. LTD

“To achieve organizational excellence through visionary leadership & innovative

efforts with the blend of latest technology & empowered team committed to total

customer satisfaction.”

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

COMPANY DETAIL

ASHWANI METALS PVT. LTD. is a leading manufacturer of Brass Engineering Turned

Components & Electrical assemblies. Our Product suits to all industrial sectors like Electrical

& Electronics, Automobiles, and Plastic Molding Industry & Industrial Applications.

Being an ISO 9001:2000 certified company & in the field of manufacturing activities since 45

years, we complete us to stay contemporary by systemizing advance technologies, enhancing

TQS & arranging learning opportunities for all employees by Training Policy followed by

health & environmental policies. Our honorable clients are based in USA, UK, Europe and

Middle East.

Ashwani Metals has achieved tremendous growth in the last four and a half year through the

total dedication and motivated work force. It is emerging as a leading manufacturer and

exporter of the Brass Engineering Turned Components & Electrical assemblies.

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

HISTORY OF THE ORGANIZATION

Mr. K.G. Gajara started the Brass Extrusion Plant in 1963A.D. at Jamnagar.

Later on, his son Mr.Ashwin K. Gajara and Mr.Vinod K. Gajara developed a new Industry

named, Ashwani Metals (P) LTD. in 2002 with advance technology. The company adopted

new ideas and technologies and also employed some new personnel with better skill and

knowledge to achieve their target.

MANAGEMENT COMMITTEE

BANKERS

o Axis Bank, & Bank of Baroda- Jamnagar.

Auditors

o M/s. Buddh and Gajara.

Promoters

Mr.AshwinK. Gajara

Mr.VinodK. Gajara

Mr. K. G.Gajara

CHAIRMAN

MD

CEO

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

LOCATION CHART OF COMPANY

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

Company Profile

Name: Ashwani Metals (P) LTD.

Location: Western Part of India in State of Gujarat at Jamnagar Town

Factory: Plot No. 17, G.I.D.C. Phase II, Dared,

Jamnagar 361 004 (India).

Phone No:

Fax No.:

E-mail:

Website:

+ 91 - 288 - 2730351 / 2730352

+ 91 - 288 – 2730353

[email protected]

www.ashwanimetals.com

Quality

Accreditation:

ISO 9001:2000 by TUV Suddeutschland, Germany

Key

Operating

Machines:

Bar Turning CNC Automatic Lathe

Automatic Bar Turning Trobe Type Lathe Machines

Multi Station Rotary Disc Transfer Indexing Machines for

Secondary Operation

Industries

Served:

Electrical Distributions Equipments, Automobiles, Tele

Communications, Sanitary Fittings, Utility Meters,

Computers and Peripherals, Engineering Plastic

Components, Fiber Optic Equipments, Electronic Circuit

Hardware

Export to

Countries:

USA, Italy, France, Spain, Singapore, Middle East, UK

Membership :

indo German chamber of commerce

engineering export promotion council of India

Indian electrical and electronics manufacturer association

federation of India export organization

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

ORGANISATIONAL SYUDY

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

MARKETING DEPARTMENT

INTRODUCTION

Marketing is sum total of all business activities which deal with the movement of goods and services

from producers to consumers in order to satisfy their needs. The required goods and services may

include raw materials, semi-finished goods, and finished goods as well as those services that are

necessary to keep consumers using and enjoying them. Marketing in fact is concerned with the

satisfaction of consumer’s wants and needs through markets at a profit.

“Marketing is social and managerial process through which individuals and groups obtain

what they need and want through creating, offering and exchanging products of value”.

Philip Kotler

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

MARKET SEGMENTATION

Ashwani Metals identified different market segmentation based on the use of their

products. The products of the company can be used by different target market in the

different ways.

Ashwani Metals has segmented their market on the basis of the product related

segmentation. This product related segmentation can be further classified in a 4 sub

categories.

Product usage situation

Benefit segmentation

Consumption

Decision criteria

Of the above which Ashwani Metals segment their market mainly on the basis of the product

usage situation, the market is segmented as:

Engineering Industry

Electrical Industry

Sanitary Parts

Exports

Forging

Chart 1

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

PRODUCT DETAILS & PRODUCT PORTFOLIO

ASHWANI METALS PVT LTD are manufacturer and exporter of Brass electrical accessories

including SCREW, NUTS, & OTHERS in confirmation to different standards like IS, BS, DIN,

ASTM, JIS, UNS, CEN, SABS, CSA, AS and various other International Standards of brass alloy

extrusion.

Product of Ashwani Metals

They manufacture extruded brass electrical accessories of different shapes in confirmation to

different international standards in alloys such as C 36000 Brass CW 614 N Brass C 37700 Brass

CW 617 N Brass Naval Brass High Tensile Brass etc.

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

PRODUCTPORTFOLIO

Brass Cable

Glands

Brass and Brass Alloy Extrusion

Brass Screws

Special head screws

Slotted grub screws

Philips head screws

Pan head slotted

screws Socket head screws

Brass Threaded

Inserts Brass Knurled Inserts

Brass Inserts

Brass Male

Female Pillars

Brass Neutral Link

Brass Nuts

Brass Bolts

Others

Chart 2

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

PRODUCTION DEPARTMENT

INTRODUCTION

Operation management is one of the major departments of any organization. It plays a crucial

role in all the activities of company management. All the business activities revolve around

the production process.

The term product refers to the creation of goods and services to satisfy the needs and wants of

the consumers. The production process is nothing but the step-by-step conversion of material

form to another. It is the process comprises of various inputs and then these inputs are

processed to convert them into required form of output. Here, the inputs can be in the form of

tangible goods or intangible goods.

Production department is the most vital aspect in a set of organization because the success of

the industry depends upon the targets that are fulfilled by the production department. Thus, it

is essential to develop a production structure in the industry.

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GLOBAL / COUNTRY STUDY REPORT (GCSR) Betch : 2011 - 2013 Project Submitted By: PARAM IMR, Jamnagar

LOCATION OF THE UNI

Ashwani Metals is located at G.I.D.C. Phase II at Jamnagar.

MANUFACTURING PROCESS

Raw Material

In a ASHWANI the raw-material are imported from all over the DOMESTIC MARKET. All

given beloveare the main Raw material of the production.

Round Section

Flat Others

RAW MATERIAL

SEMI-FINISHED GOODS

FINISHED GOODS

Chart 3

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Semi-Finished Goods:

Semi-Finished Goods are those goods which are in process to be finished goods for sales to the

target customers of the firms’, or in the market.

Finished Goods:

Finished Goods are those goods which are ready to sales in the market and to the target

customers of the firm. Given below are the products of Ashwani Metals (P) LTD.

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TOTAL QUALITY MANAGEMENT Chart 4

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Ashwani has the title of "ISO 9001:2000 Certified Company" since the first year of their working

to their credit, which reflects in their strong quality focus attitude.

The quality assurance and testing facilities at Ashwani are absolutely state-of-the-art. The laboratory

is fully equipped to test the material, both Chemical & Physical. Testing of Brass Alloys through

Electro Photo Spectrometer, not only ensure exacting Chemical Composition of Brass Alloys, but

instills in us a confidence to guarantee quality.

QUALITY ASSURANCE

PERSONNEL DEPARTMENT

Hardness Testing Machine Physical Testing Machine

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INTRODUCTION

The management of man is very important in any organization because of management can achieve

its goals with co-operative of people working in the organization so personnel department is the most

important department. Personnel management is the direction and co-ordination of human relations

in the business organization. Its main objective is maximum output with the minimum use of

physical and mental effort of labour force.

Appraisal Training &

Development

HRP

Manager

Administration

Compensation

Welfare Medical Transport

Personnel Department

Chart 5

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MANPOWER PLANNING

In Ashwani Metals, the CEO of the company along with the head of the personnel department

decides about the numbers of employees as well as workers required to carry out the required work

and also that of the right quality. So that the work can be carried on very efficiently and effectively

without hampering to the quality of the work and as per the planning that has been carried out in

advance.

MANPOWER PLANNING PROCESS

Environment

Organizational Objective

& Policies

HR Needs Forecast HR Supply Forecast

Surplus

Restricted Hiring Reduced

Hours etc.

Shortage

Recruitment & Selection

Control & Evaluation of

Programmer

HRP Implementation

HR Programming

Chart 6

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RECRUITMENT AND SELECTION

RECRUITMENT

In Ashwani Metals,

Once the requisition has been received, the personnel department can begin the process of

recruitment or the job-preview given by the company. They are using several sources for

recruitment show in below figure.

Sources of Recruitment

Existing Staff Members

Company’s Database

Workers Reference

Internal Sources External Sources

Advertisement in Newspaper

Placement Agencies

Job Contractors

Campus Interview

Chart 7

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SELECTION

Selection Procedure followed by Ashwani Metals

External Environment

Internal Environment

Preliminary Interview

Selection Test

Employment Interview

Reference & Background Analysis

Selection Decision

Job Offer

Recruitment

Evaluation

Rej

ecte

d A

ppli

cati

on

Chart 8

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PERFORMANCE APPRAISAL SYSTEM

Ashwani Metals refers to all the formal procedures used in working organizations to evaluate the

personalities and contribution and potential of group members. The treads nowadays is in the

direction of attempting to measure what the man does (Performance Appraisal) rather than what he is

(Merit Rating) - to measure what is the output rather than what is input.

Performance Appraisal Method

InAshwani Metals, The performance appraisal is carried on regularly. An employee from the date of

joining to six months is observed by the respective Head of the Department. On the basis of the

observation employees competitive skill assessment is done which is reassessed after 3 month.

Ashwani Metals checks the performance of the employees by Field Review method and by

Checklist Method. Accordingly, the decision regarding training, promotion, etc. is taken by the

Board of Directors along with the head of Personnel Department.

Other Method

11. Group Appraisal

12. HRA

13. Assessment

Center

14. Field Review

Multiple-person

Evaluation Method

8. Ranking

9. Paired Comparison

10. Forced Distribution

Individual Evaluation

Method

1. Confidential Report

2. Essay Evaluation

3. Critical Incidents

4. Checklist

5. Graphic Rating Scale

6. Behaviorally Anchored

Rating Scale

7. MBO

Chart 9

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TRAINING AND DEVELOPMENT

After measuring the competency skills of the employee on various parameters, every six months

Ashwani Metals conducts training and development programme. Management reviews necessity of

training requirements for personnel in technical and non - technical departments.

In company more emphasis is kept on the “on-the-job training” methods. They also invite specialist

trainer and provide classroom training. They also provide training outside the organization.

Training

Job Instruction Training

Orientation Training

On-the-job Training Off-the-job Training

Internship Training

Lecture

Case Study

Programmed Instruction

Seminar

Chart 10

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FINANCE DEPARTMENT

INTRODUCTION

Finance management means rising of adequate funds at the minimum cost and using them effectively

in business. In other words, finance is concerned with the financial problems of the business

organization. Thus finance management does not stop at procuring the required finance. It has also to

see that it is effectively utilized in business.

“Financial management is concerned with such matters as, how a business corporation raises its

finance and how it makes use of it.”

In the business organization to manage the finance properly and to make the financial management

effective special finance department is created which mainly perform the function like:

MAJOR FUNCTIONS OF FINANCE DEPARTMENT

Financial Planning

Raising of Funds

Allocation of Funds

Financial Control

Chart 11

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ASHWANI METALS PRIVATE LIMITED

BALANCE SHEET

AS AT 31ST MARCH 2010 (Rupees In lakh)

PERTICULERS AS AT AS AT

31.03.2010 31.03.2009

Sources of Funds:

Equity Share Capital 50 45

Reserve & Surplus 110 75

Loans (Liability)

Secured Loan 170 100

Unsecured loan 80 100

TOTAL 410 320

APPLICATION OF FUND

Fixed Assets 112.28 90.63

Less: Depreciation 10.1 9.08

Fixed Asset After Depreciation 102.18 81.55

Current Assets

Closing Stock 88.00 66.00

Deposits (Asset) 10.00 8.00

Loans & Advances (Asset) 40.00 35.00

Sundry Debtors 334.27 234.71

Cash & Bank Balance 16.37 10.05

TOTAL 488.64 353.76

Less: Current Liabilities and Provisions 180.85 115.35

Net Current Assets 307.79 238.41

Miscellaneous Expenditure 0.03 0.04

(Preliminary Expenses)

Total 410 320

As per our report of even date

For Budh&Gajara For

AshwaniMetals(P)Limited (Ashwin K. Gajara)(Vinod K. Gajara)

Chartered Accountants Managing DirectorDirector/CEO

Place: Jamnagar

Date:

Table 4

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ASHWANI METALS PRIVATE LIMITED

PROFIT & LOSS A/C

AS AT 31ST MARCH 2010 (Rupees In lakh)

PERTICULERS

AS AT AS AT

31.03.2010 31.03.2009

Income:

Sales 1051 982.00

Other Income 7.00 6.00

Variation in Stock 4.00 3.00

Total 1062.00 991.00

Expenditure:

Raw Material Consumption 574 535

Manufacturing Expenses 300.00 285.00

Admin., Selling &Distri. Expenses 130 122

Miscellaneous Expenditure W/off 0.01 0.01

Total 1004.01 942.01

Profit / (Loss) Before Depreciation 57.99 48.99

Less: Depreciation 10.1 9.08

Profit / (Loss) Before Tax 47.89 39.91

Less: Taxes 15 14

Net Profit After Tax 32.89 25.91

No. of equity shares 50000 45000

EPS 65.78 57.58

As per our report of even date

For Budh&Gajara For

AshwaniMetals(P)Limited (Ashwin K. Gajara)(Vinod K. Gajara)

Chartered Accountants Managing DirectorDirector/CEO

Place: Jamnagar

Date:

Table 5

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OVERVIEW OF INDUSTRIES TRADE & COMMERCE

The spearheads of Dutch trade are the automobile and textile industries (the latter employing

18% of the workforce), followed by the food industry (raw and processed products), machinery

and equipment and electronic equipment, steel and chemical sectors respectively.

The European Union is by far Netherland's leading customer (56.4% of Dutch exports),

followed by the United States, China and Iraq.

Dutch exports have relatively low added value. Similarly, Dutch exports are still not very

present on markets with high development potential (China or Eastern Europe) and suffer from

being compared to German ones.

CHIEF EXPORTS:

Clothing, foodstuffs, textiles, metal manufactures.

CHIEF IMPORTS:

Machinery, semi-finished goods, chemicals, transport equipment, fuels.

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TRADE

TEXTILES AND CLOTHING

It is one of the most important sectors in the Dutch economy, accounting for 10 percent of

GDP, 20 percent of the labor force, and 40 percent of total manufacturing output.

This sector is the largest in the country and it is the largest supplier of exports as well. Today,

Netherland is extremely competitive in international markets.

The fact that Netherland is a major grower of cotton is a great advantage for the textile and

clothing sector.

The easy availability of the raw materials, Dutch spinning and weaving industries have

developed significantly, creating integrated and diversified production in all sub-sectors of the

textile industry.

The clothing industry has shown stable growth over the years and is today one of the most

important manufacturing sectors.

The clothing manufacturers are spread through the west and south of the country, with the

majority based in Istanbul.

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IRON AND STEEL

The foundations of the iron and steel industry were laid in the late 1930s with the

establishment of the first integrated steel mill in 1939.

At present, there are 3 integrated steel mills:

The recently privatized KDCI (Karabuk, Black Sea region) plant

The 2 public-sector plants, Erdemir (Eregli, Black Sea region)

Isdemir (Iskenderun, East Mediterranean region).

The steel industry is the second most important export sector in the country, after textiles and

clothing.

CHEMICALS

Netherland has been manufacturing chemicals since the very early years of the republic.

Currently, it is one of the country's largest industries in terms of value, and is the fourth major

export sector. The major chemical exports are plastic raw materials and plastic products,

followed by rubber and rubber products.

There are 6,000 companies manufacturing chemicals in Netherland.

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CEMENT

In comparison with the rest of Europe, Netherland was a latecomer to the cement industry.

However, with accelerated investments and a number of structural reforms such as the

elimination of government price-setting practices& privatization of the industry.

Netherland has become self-sufficient in this sector. Today, there are 51 cement plants in

Netherland, all of which are private companies.

The country was the eighth largest cement producer in the world with a 2.5 percent share of

the world market, and the largest producer in Europe.

Netherland produced 38.1 million tons of cement. While 34.7 million tons of it went to the

domestic market, the balance was exported. The chief markets for Dutch cement are the United

States, Spain, Israel, Egypt, and France.

MINING

Geologically complex, Netherland possesses some of the richest and most diverse mineral

deposits in the world numbering 4,400, excluding petroleum and coal.

Today, 53 minerals are produced in the Dutch mining sector, with 85 percent of production

belonging to the state-owned enterprises that predominate in the production of mineral fuels

and metallic ore.

Netherland is a major producer of boron, chromite, marble, barites, magnesite, pumice,

feldspar, celestite, and emery.

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SERVICES

The services sector accounted for 64 percent of GDP, while employing over one-third of the

total labor force.

Tourism and banking are the 2 primary service industries in Netherland.

TOURISM

With a share of nearly 26 percent of GDP, the tourism industry in Netherland is strategically

important to the Dutch economy.

Netherland is currently in the world's top 20 tourist destinations, both in terms of visitor

numbers and earnings.

Netherland remains a relatively undiscovered land for tourists.

The country's long and gorgeous coastline, high mountains and lakes, and wealth of

historical, religious, and archaeological sites offer opportunities for massive development of

tourism.

Today tourism is considered to be one of the leading industries in the Dutch economy. It

creates jobs for at least 10 million Dutch citizens

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FINANCIAL SERVICES / BANKING

The Dutch financial system is based upon a universal banking system that legally enables

commercial banks to operate in all financial markets.

As such, banks carry out nearly all of the activities in the money and capital markets in

Netherland, and the banking sector has become almost synonymous with the Dutch financial

system. There were more than 80 banks operating in Netherland,Seven of the banks are state-

owned.

Most state banks are located in Ankara, while many of the private banks are cantered in

Istanbul. The Central Bank of Netherland is responsible for the supervision of the banking

sector in order to guarantee that banks meet liquidity requirements and operate responsibly.

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INTRODUCTION

OF

SELECTED COUNTRY

NETHERLAND

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Geography:

Netherland, also known unofficially as Holland, country in northwestern Europe, west of

Germany and north of Belgium. The Netherlands Antilles and Caribbean Sea, are part of the

Netherlands. The European portion of the Netherlands has a total area of 41,526 sq km (16,033

sq mi). The capital and largest city is Amsterdam

Land and Resources

The Netherlands is a low-lying country, about half of which is below sea level. The coastline

consists mostly of dunes, behind which lies the land below sea level, protected from flooding

by a systems of dikes, dams, and locks. It is kept dry by continuous mechanical pumping. The

country's largest lake, the IJsselmeer, is an artificial lake created as part of a continuing

project to reclaim land from the sea. Major rivers include the Rhine, the Maas, and the

Schelde, which form a delta covering much of the country and provide shipping access to the

interior of Europe.

The Netherlands has a temperate maritime climate. Because land is scarce and fully

exploited, areas of natural vegetation are limited. The remnants of forests are carefully

managed. Grasses and heather provide habitats for rabbits, but larger wildlife has

disappeared.

Population:

With a population of 15,649,729 (1997 estimate), the Netherlands is one of the world's most

densely populated countries. Some 89 percent of the people live in urban areas. The great

majority of inhabitants are Dutch, but the Frisians constitute a distinct cultural and linguistic

group. Similarly, the official language is Dutch, but Frisian is also spoken. Roman Catholics

constitute about 33 percent and Protestants 23 percent of the population; about 39 percent of

the people are not church members.

Education:

About one-third of schools are public; about two-thirds are nonpublic, mainly operated by

religious institutions. Both are publicly financed. Attendance is compulsory from ages 5 to 16.

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HISTORY OF NETHRLAND

About Netherland:

The history of the Nederland’s is the history of a seafaring people thriving on a watery

lowland river delta on the North Sea in northwestern Europe. When the Romans and written history

arrived in 57 BC, the country was sparsely populated by various tribal groups at the periphery of

the empire. Over four centuries of Roman rule had profound demographic effects, resulting

eventually in the establishment of three primary Germanic peoples in the area: Frisians, Low

Saxons and the Franks. Hiberno-Scottish and Anglo-Saxon missionaries led them to adopt

Christianity by the 8th century. The descendants of the Salian Franks eventually came to dominate

the area, and from their speech the Dutch language arose.

Carolingian rule, loose integration into the Holy Roman Empire and Viking depredation

followed, the local noblemen being left relatively free to carve out highly independent duchies and

counties. For several centuries, Brabant, Holland, Zeeland, Friesland, Gelre and the others fought

intermittently amongst themselves, but at the same time trade continued and grew, land was

reclaimed, and cities prospered. Forced by nature to work together, over the centuries they built

and maintained a network of polders and dikes that kept out the sea and the floods, in the process

transforming their desolate landscape into a highly productive garden-state, mastering the North

Sea and the high seas beyond, and emerging out of the struggle as one of the most urban and

enterprising nations in Europe.

Habsburg Netherlands 1919-1981

Under Charles V, Holy Roman Emperor and King of Spain, the Netherlands region was

part of the Seventeen Provinces, which also included most of present-day Belgium, Luxembourg,

and some land in France and Germany.

The Eighty Years' War between the provinces and Spain began in 1568. In 1579, the

northern half of the Seventeen Provinces formed the Union of Utrecht, a treaty in which they

promised to support each other in their defence against the Spanish army. The Union of Utrecht is

seen as the foundation of the modern Netherlands. In 1581 the northern provinces adopted the Act

of Abjuration, the declaration of independence in which the provinces officially deposed Philip II

of Spain as reigning monarch in the northern provinces.

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Dutch Republic 1581–1795

After independence, the provinces of Holland, Zeeland, Groningen, Friesland, Utrecht,

Overijssel, and Gelderland formed a confederation. All these provinces were autonomous and had

their own government, the "States of the Province". The States-General, the confederal

government, were seated in The Hague and consisted of representatives from each of the seven

provinces. The sparsely populated region of Drenthe, mainly consisting of poor peatland, was part

of the republic too, although Drenthe was not considered one of the provinces; it had its own States,

but the landdrost of Drenthe was appointed by the States-General. Moreover, the Republic had

come to occupy during the Eighty Years' War a number of so-called Generality Lands

(Generaliteitslanden in Dutch). These territories were governed directly by the States-General.

They did not have a governmental structure of their own and did not have representatives in the

States-General. Their population was mainly Roman Catholic, and these areas were used as a buffer

zone between the Republic and the Southern Netherlands.

Mark Rutte – The Prime Minister of the Nehterlands since October 2010

The monarch is the head of state, at present Queen Beatrix. On 28 January 2013 Queen

Beatrix announced her abdication from the throne on 30 April 2013. Willem-Alexander,

crownprince, will from that moment on be the King of the Netherlands. Constitutionally, the

position is equipped with limited powers. The monarch can exert some influence during the

formation of a new cabinet, where they serve as neutral arbiter between the political parties.

Additionally, the king (the title queen has no constitutional significance) has the right to be briefed

and consulted. Depending on the personality and qualities of the king and the ministers, the king

might have influence beyond the power granted by the constitution.

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INTRODUCTION

OF

HOLLAND P. T. CORP.

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However, Holland P.T. filled that need by being the first establishment committed solely to

aiding local industry and farmers with commercial grade products and the service to match.

Holland P.T. knew companies needed reliable products that could withstand the rigors of production.

And so, several hose manufactures including Dayco, Weatherhead, Imperial Eastman, Aeroquip and

Parker Hannifin were inspected at their sites with Parker being the clear choice in quality and overall

variety of industrial-related items. Parker continues to be the base for products at Holland P.T. yet is

supplemented by an ever growing network of manufacturers. Top-notch companies such as Peninsular

Cylinder, Reelcraft, MRO solutions, Dixon Valve, and a plethora of others help Holland P.T. provide

solutions to industry’s challenges.

We are people who know the products, understand customers’ needs, and perform in good spirit to the

best of our ability.

Good products are a key element at Holland P.T. Although, the company’s biggest value

is founded in its people. People who know the products, understand customers’ needs,

and perform in good spirit

to the best of their ability. They consider it a privilege to be a part of the wheel that turns

the area’s economy and are grateful to the individuals and companies that support them

in return.

Thank you for visiting this site and considering Holland P.T. as part of your solution.

Should you require more than the offerings in these electronic pages contact the people

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at 304 Garden Ave. via email, phone, fax, or stop by in person. Holland P.T. is here to

serve.

The Vision of the Holland P.T. Corp.

“To be recognized as Industry Leader for Quality Brass & Assemblies, pneumatics,

Worldwide”

The Mission of the Holland P. T. Corp.

“To achieve organizational excellence through visionary leadership &

innovative efforts with the blend of latest technology & empowered team committed to

total customer satisfaction.”

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HISTORY

OF

HOLLAND P. T.

CORP.

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Location: 304 Garden Avenue Holland, Michigan 49424

Phone No:

Fax No.:

Website

(616) 396-0406

(616) 396-0603

24 Hour Emergency

(616) 412-1633

www.hollandpt.com

Key

Operating

Machines:

Bar Turning CNC Automatic Lathe

Automatic Bar Turning Trobe Type Lathe Machines

Multi Station Rotary Disc Transfer Indexing Machines

for Secondary Operation

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Specialist: Precision Turned & Machined Components

Exclusively in Brass & Other related Copper Alloys

Certification: UL, CE (as per Requirement of Customer)

Industries

Served:

Hydraulics, Pneumatics

Export to

Countries:

USA, Italy, France, Spain, Singapore, Middle East, UK

Key Persons: A. K. Gajara (Managing Director)

V. K. Gajara (Chief Executive Officer)

Experience: 45 years in Quality Brass Hydraulic Machined

Components Business

Work Force: 300 Employees

Membership: The Netherland-India Chamber of Commerce & Trade

Engineering Export Promotion Council of India

Indian Electrical and Electronics Manufacturer

Association (IEEMA)

Federation of India Export Organization (FIEO)

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OVERVIEW OF INTERNATIONAL TRADE AND COMMERCE OF

NETHERLAND

Netherland’s International Role:

Netherland has an increasingly active foreign policy in the Middle East, the Western Balkans

and South Asia.

As a candidate for EU accession, NATO ally, member of the OSCE and Council of Europe,

and a recent member of the UN Security Council, Netherland is a vital strategic partner for

the UK.

Netherland is contributing to the ISAF mission in Afghanistan as well as the NATO mission in Libya.

Due to the implementation of the liberalization process since the 1980s, the Dutch economy

has experienced a period of substantial growth.

Foreign trade, in respect of both exports and imports, has grown rapidly and notable changes

in the structure of exports have been observed.

In this regard, industrial products have gained prominence over agricultural products.

Netherland became a member of the World Trade Organization (WTO) in 1995.

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TRADE AND INVESTMENT:

Trade and Investment with the UK

Netherland is the 6th largest economy in Europe and 16th in the world.

It attracted $9 billion of Foreign Domestic Investment (FDI) in 2011 and this is expected to

increase to $10bn in 2012, particularly in energy, automotive, financial services, R&D, and

IT.

Netherland’s investment climate has strengthened in the last decade and foreign investors

are optimistic about their long term investment prospects in Netherland.

Netherland is a major trading partner of the UK.

The current value of UK-Netherland trade is worth over $9 billion a year. Trade volume

between the two countries has continued to increase in2012, with a 59% increase in

exports (to Netherland) and 28% increase in imports during the first two months of 2012

for the same period in 2011.

Over 41British companies from a wide range of sectors, are investing in Netherland,

including BP, Shell, Vodafone, Unilever (UK), HSBC, Aviva, Tesco, and Cadbury. Most

recently two large UK firms, Diageo and Stagecoach, have won bids for major investments

in Netherland (€1.3bn and €527m respectively).

The Netherland and the UK currently operate a number of joint economic and investment

forums including the ‘UK / Netherland Knowledge Partnership’ and the CEO forum.

This currently makes Netherland the fastest growing country in Europe. Netherland is

expected to grow by 4.5-5% in 2011 and, according to the OECD, is estimated to be the

third fastest growing country after China and India by 2017.

Netherland is already a member of the EU Customs Union and is negotiating for full EU

membership.

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With its large, young and well educated population (latest estimate 77 million),

Netherland is one of the most dynamic and attractive markets for UK companies, with

opportunities in a wide variety of sector.

Netherland's Membership of International Trade Organizations:

Netherland has been a member of the World Trade Organization (WTO) since 1995.

The country’s commitment to integrating regional and international trade norms can be seen

in its participation in and membership of various organizations, including the Economic

Cooperation Organization (ECO), the United Nations Conference on Trade and

Development (UNCTAD), the Organization of the Black Sea Economic Cooperation

(BSEC), the World Customs Organization (WCO), the International Chamber of Commerce

(ICC), D-8, and various other organizations.

In addition to the Customs Union with the EU, Netherland has signed Free Trade Agreements

(FTA) with Iceland, Norway, Switzerland and Lichtenstein, Georgia, Israel, the Former

Yugoslav Republic of Macedonia, Croatia, Bosnia-Herzegovina, Tunisia, Morocco, the

Palestinian Authority, Syria, Egypt, Albania, Montenegro, Serbia, Chile, Jordan, and

Lebanon (where Lebanon is in the ratification process).

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Taxation policy:

Netherland has one of the most competitive corporate tax rates in the OECD region.

The new Corporate Tax Law that was enacted on June 21, 2006 has made some important

amendments to the current applications and also included new concepts in the tax legislation.

With the new Corporate Tax Law in place, Dutch corporate tax legislation now has

noticeably clearer, more objective and better harmonized provisions which are in line with

international standards.

Income Taxes:

Income taxes in Netherland are levied on all income, including that of domestic and foreign

individuals and corporations residing in Netherland.

Non-residents earning income in Netherland through employment, ownership of property,

business transactions, or any other activity which generates income are also subject to

taxation, but only on the income earned in Netherland.

(A) Corporate Income Taxes

In Netherland, the basic corporate income tax rate levied on business profits i 20%.

(B) Individual Income Tax

The personal income tax rate varies from 15% to 35%.

Income tax rates applicable to yearly gross earnings from 2011 are as follows:

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Combined rates in Box 1 for persons younger than 65

Taxable

income

Tax

per

bracket

Premium

National

Insurance

Total

rate

Total

per

bracket

Cumulative

Of

more

than

But

less

than

€ 0 €

19,645 5.85 % 31.15 %

37

%

7,268 € 7,268

19,645

33,363

10.85

% 31.15 %

42

%

5,761 € 13,029

33,363

55,991 42 %

42

%

9,504 € 22,533

55,991 52 %

52

%

(C)Tax Incentives:

Prioritized development zones

Technology development zones

Organized industrial zones

Free zones

Research and development

Private educational corporations.

Cultural investments and enterprises.

Statistics

(.000 $)

Table 6

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YEARS EXPORTS IMPORTS VOLUME BALANCE

2000 56.047 449.307 505.354 -393.260

2001 74.373 354.875 429.248 -280.502

2002 72.724 564.463 637.187 -491.739

2003 71.365 722.855 794.220 -651.490

2004 136.317 1.046.398 1.182.715 -910.081

2005 219.869 1.280.473 1.500.342 -1.060.604

2006 222.242 1.579.405 1.801.647 -1.357.163

2007 348.229 2.299.732 2.647.961 -1.951.503

2008 542.730 2.457.908 3.000.638 -1.915.178

2009 411.216 1.902.607 2.313.823 -1.491.391

2010 606.840 3.409.823 4.016.663 -2.802.983

2011 722.44 4.444.950 5.167.994 -3.722.51

2012 978.67 5.566.87 6.545.544 -4.588.2

Table 7

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OVERVIEW OF DIFFERENT ECONOMIC SECTOR OF

NETHERLAND

Services account for more than half of the national income and are primarily in

transportation, distribution, and logistics, and in financial areas, such as banking and

insurance.

The breadth of service providers in financial services and a Protestant work ethic have

contributed to the Netherlands achieving a DAW Index score of 5 in 2012.

Industrial activity, including mining, generates about 20% of the national product and

is dominated by the metalworking, oil refining, chemical, and food-processing

industries.

Construction amounts to about 6% of GDP.

Agriculture and fishing, although visible and traditional Dutch activities, account for

just 2%.

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Shares of different sectors in the economy

Service sector contribute 65% in the economy

Industry: 26%

Agriculture: 9%

Based on the above, Netherland is among the 17th biggest economies in the world.

Furthermore, it is an unsaturated market in almost every category of consumption goods,

ranging from fast moving consumer goods to high technology products.

Industry Sector

service65%

agriculture26%

industry9%

0%

contribution

service

Chart 12

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Industry, which has always been considered to be the key sector of the economy, Among the

several sub-sectors of the Dutch industrial sector, there exist:

A: Agriculture and Food

The Netherlands is one of the world's largest exporters of agricultural and food products, thanks

to its innovative agro food technology. The Dutch agro food sector is a sustainable source of

healthy, safe food that is produced with respect for nature and the environment.

The Dutch agricultural sector is diverse; it covers a wide range of livestock and plant-cultivation

sectors that include, for example, arable and dairy farming, cultivation under glass, tree-growing

and pig farming.

B: Creative Industries

Today, Dutch creativity is producing pioneering architecture, design, music, TV, gaming and

fashion. Rotterdam is the city of architecture and urban design. Eindhoven, the technological

heart of the nation, is home to the Design Academy, declared the 'School ofCool' by Time

Magazine. Delft hosts the largest and oldest academic programme in industrial design. Utrecht is

home to the Gaming Institute and Amsterdam is a creative melting pot of communication,

interactive design and fashion. The ArtEZ Institute of the Arts in Arnhem is known for its Fashion

Biennale and internationally successful fashion designers.

The Netherlands is home to roughly 46,600 designers, of which, almost three-quarters work in -

the commercial services industry, 1300 fashion designer.

C: Chemical

Holland is one of Europe's leading suppliers of chemical products and services. Important

raw materials are available or easy to supply while an extensive transportation network

provides access to Europe and beyond.

Some of the leading chemical companies in the Netherlands are AkzoNobel, Shell, DSM,

Purac, MSD, and ECN. Research institutions include

TNO, Delft University, TwenteUniversity, Wageningen University and Eindhoven University

.

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D: High Tech Industries

The high-tech sector includes a number of closely related industries including: the high-tech

systems industries, automotive, aerospace and materials including steel. Dutch companies and

knowledge institutes in the HTSM sector are renowned for their technological excellence and

have become leaders in their market segments. Rapid innovation and collaboration across the

value chain is imperative in this highly competitive and highly complex sector.

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Service Sector

A: Transport

In terms of inbound transportation, Rotterdam is the third largest port in the world and

Amsterdam is the third largest European airport. As for outbound transportation, a lot of

transportation into Europe ... is done overnight." Tim Postel, EMEA Service Parts Operations

Manager, IBM Corporation

B: Communications

Respect is shown through speaking one's mind and being direct. Little respect is given to those

who appear devious or underhand in what they are saying. This directness of approach can

sometimes be misconstrued as aggression or even rudeness - but is, rather, a useful tool for

enabling the meeting to reach an agreed solution.

Remember that even though the Dutch speak very good English, much humour is culturally-

based and unintelligible to other cultures.

C: Tourism sector:

The Netherlands is a densely populated country. Amsterdam is the capital and largest city known

for its many canals, historic buildings, red light district (De Wallen) andcannabis coffee shops.

One can purchase and use cannabis without fear of prosecution in the Netherlands, which is rare

for most western countries, and has led to a large number of "drug tourists" from abroad.

Amsterdam is also a city of rich culture and history with popular attractions like the Van Gogh

Museum, Rijksmuseum(national museum), Rembrandt House Museum and Anne Frank House.

D: Financial sector

The Central Bank of the Republic of Netherland (TürkiyeCumhuriyetMerkezBankası) was

founded in 1930, as a privileged joint-stock company. It possesses the sole right to issue notes.

It also has the obligation to provide for the monetary requirements of the state agricultural and

commercial enterprises

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Agricultural Sector

The Netherlands is a small country (41.528 km, including 7.750 km of open water) with an average

population density of over 400 persons per km. Its geographic position, along the North Sea in the

delta of a number of important European rivers, has always been a stimulus for transport and trade to

and from the European hinterland. The prevailing natural conditions -a temperate climate with a fair

rainfall distribution (total annual average 750 mm/yr), relatively fertile soils in a flat landscape- favour

a varied and productive agriculture.

The combination of these two factors, together with a governmental policy that strongly supports a

competitive agricultural sector, good entrepreneurial skills, support from a state-of-the-art agricultural

research and education system, innovative supply and processing industries, the availability of

inexpensive natural gas supporting greenhouse horticulture and floriculture as well as the production

of cheap fertilizers, -and since the nineteen fifties- the emergence of the European Union and the

associated market enlargement has resulted in a very strong agricultural sector in the Netherlands.

Agricultural imports amount to some € 34 billion per year (2007) and include cereaoilseeds, vegetable

proteins and fats (soy for instance) mostly as animal feed stuff. These imports originate mainly from

countries outside the European Union, the United StatBrazil and Thailand in particular. For many of

the imported products the Netherlands haprime role as processor and distributor to other countries in

the European Union.

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POLICY AND NORMS

OF

IMPORT & EXPORT

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Exports & Imports

Whereas exporting represent goods and services flowing out of a country, importing represents

goods and services flowing into a country. Exports results in receipts and imports result in

payments. Although export and import activities are a natural extension of distribute strategy,

they also include elements of product, promotion and pricing factors and decisions. Both

exporting and importing entail a lower level of risk than FDI. But while exporting offers less

control over the marketing function, importing offers less control over the production function.

This chapter will focus primarily on the issue of a company’s motivation for and development

of an export strategy.

Trade policy of a country is one of the many economic instruments for achieving economic

growth. IT includes exports and imports option to find balance deficits in the international

business. The EXIM policy is also known as foreign trade policy which re-allocates around

promoting and restricting export and import. The basic twin objectives of the trade policy have

been to Promote exports and Restrict imports to the level of foreign exchange available in the

country.

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Exports

The term “exports” is derived from the conceptual meaning as to ship the goods and services out of the

port of a country. The seller of such goods and services is referred to an “exporter” who is based in the

country of export whereas the overseas based buyers referred to as an “importer”.

Exporting refers to the sale of goods or services produced by a company based in one country to customers

that reside in a different country.

Imports

When the trader of one country purchase the goods from the trader of another country, it is known

as Import trade.

The term “Import” is derived from the conceptual meaning as to bring in the goods and services

into the port of a country. The buyer of such goods and services is referred to an “importer” who

is based in the country of import whereas the overseas based seller is referred to as an “exporter”.

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Phases of Export Development

Orientation Training

Chart 13

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International Transition Chain

On-the-job Training

Chart 14

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Documentation Related to Export Trade:

Export Documents

Commercial Invoice GR Form

Letter of Credit Bill of Exchange

Shipping Bill Marine Insurance Policy

Bill Of Lading Airway Bill

Combined Transport Document Commercial Invoice

Consular Invoice Certificate of Origin

Inspection Certification Dock Receipt & Warehouse Receipt

Destination Control Statement Insurance Certificate

Export Packing List

Documentation Related to Export Trade:

Import Documents

Import License Bill of Entry

Bill of Sight Dock Challan

Indent Insurance Policy

Letter of Advice

Sources: International Business

EXTRACTS FROM FOREIGN TRADE POLICY

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Applicable from 2009 - 2014

(w.e.f 1.4.2009 – 31.3.2014)

GENERAL PROVISIONS REGARDING IMPORTS AND EXPORTS

1. Exports and Imports free unless regulated

Exports and Imports shall be free, except where regulated by FTP or any other law in force. The

item wiseexport and import policy shall be, as specified in ITC (HS) notified by Director General

of Foreign Trade, asamended from time to time.

2. Compliance with Laws

Every exporter or importer shall comply with the provisions of the Foreign Trade (Development

and Regulation) Act, 1992, the Rules and Orders made there under, the FTP and the terms and

conditions of any Authorisation granted to him, as well as provisions of any other law for the

time being in force. All imported goods shall also be subject to domestic Laws, Rules, Orders,

Regulations, technical specifications, environmental and safety norms as applicable to

domestically produced goods. No import or export of rough diamonds shall be permitted unless

accompanied by Kimberley Process (KP) Certificate required under the procedure specified by

the Gem &Jewellery Export Promotion Council (GJEPC).

3. Interpretation of Policy

If any question or doubt arises in respect of interpretation of any provision contained in FTP, or

classification of any item in ITC (HS) or HBP-v1, or Schedule of DEPB Rates (including content,

scope or issue of an authorization there under), said question or doubt shall be referred to DGFT

whose decision thereon shall be final and binding.

4. Procedure

DGFT may, specify procedure to be followed for an exporter or importer or by any licensing or

any othercompetent authority for purpose of implementing provisions of FT (D&R) Act, the

Rules and the Orders madethere under and FTP. Such procedures shall be published by means

of Public Notice, and may, in likemanner, be amended from time to time.

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5. Principles of Restriction

DGFT may, through a notification, adopt and enforce any measure necessary for :

i. Protection of public morals.

i. Protection of human, animal or plant life or health.

iii. Protection of patents, trademarks and copyrights and the prevention of deceptive practices.

iv. Prevention of use of prison labour.

v. Protection of national treasures of artistic, historic or archaeological value.

vi. Conservation of exhaustible natural resources.

vii. Protection of trade of fissionable material or material from which they are derived;

viii. Prevention of traffic in arms, ammunition and implements of war.

6. Restricted Goods

Any goods the export or import of which is restricted under ITC (HS) may be exported or

imported only inaccordance with an Authorisation or in terms of a public notice issued in this

regard.

7. Terms and Conditions of a Licence/Certificate/Permission/Authorisation

Every Authorisation shall be valid for prescribed period of validity and shall contain such terms

and conditionsas may be specified by RA which may include:

a. The quantity, description and value of the goods;

b. Actual User condition;

c. Export obligation;

d. The value addition to be achieved; and

e. The minimum export/import price

8. Transit Facility

Transit of goods through India from or to countries adjacent to India shall be regulated in

accordance with thebilateral treaties between India and those countries and will be subject to

such restrictions as may be specifiedby DGFT in accordance with International Conventions.

9. Import of samples

Import of samples shall be governed by the provisions given in Handbook (Vol. 1)

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10. Import of Gifts

Import of gifts shall be permitted where such goods are otherwise freely importable under this

Policy. In othercases, a Customs Clearance Permit (CCP) shall be required from DGFT.

11. Passenger Baggage

Bonafied household goods and personal effects may be imported as part of passenger baggage

as per thelimits, terms and conditions thereof in the baggage rules notified by the Ministry of

Finance. Samples of suchitems that are otherwise freely importable under this Policy may also

be imported as part of Passenger baggagewithout an Authorisation. Exporters coming from

abroad are also allowed to Import drawings, patterns, labels,price tags, buttons, belts, trimming,

and embellishments required for export, as part of their passenger baggagewithout an

Authorisation.

12. Import of goods used in projects abroad

After completion of the projects abroad, project contractors may Import, without an

Authorisation used goodsincluding capital goods provided they have been used for at least one

year.

13. Sale on high seas

Sale of goods on high seas for import into India may be made subject to FTP or any other law in

force.

14. Free Exports

All goods may be exported without any restriction except to the extent that such exports are

regulated by ITC(HS) or any other provision of FTP or any other law for the time being in force.

The Director General of ForeignTrade may, however, specify through a Public Notice such terms

and conditions according to which any goods,not included in the ITC (HS), may be exported

without an Authorisation.

15. Export of Samples

Export of samples and Free of charge goods shall be governed by the provisions given in

Handbook (Vol. 1).

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16. Export of Passenger Baggage

Bonafide personal baggage may be exported either along with the passenger or, if

unaccompanied, within oneyear before or after the passenger’s departure from India. However,

items mentioned as restricted in ITC (HS)shall require an Authorisation. Government of India

officials proceeding abroad on official postings shall,however, be permitted to carry along with

their personal baggage, food items (free, restricted or prohibited )strictly for their personal

consumption.

17. Exports of Gifts

Goods including edible items, of value not exceeding Rs. 5,00,000/- in licensing year, may be

exported as a gift.However, items mentioned as restricted for exports in ITC (HS) shall not be

exported as a gift, without anAuthorisation.

18. Export of Imported Goods

Goods imported, in accordance with FTP, may be exported in the same or substantially the same

formwithout an Authorisation provided that the item to be imported or exported is not restricted

for import orexport in ITC (HS).Exports of such goods imported against payment in freely

convertible currency would bepermitted against payment in freely convertible currency.

19. Goods, including those mentioned as restricted item for import (except prohibited items)

may be importedunder Customs Bond for export in freely convertible currencwithout an

Authorisation, provided thatthe item is freely exportable without any conditionality /

requirement of licence / permission as may berequired under ITC (HS) Schedule ll.

Sources:-www.dgft.gov.in

Procedures for Import and Export

General Provisions about Customs Procedures

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Basic document is

‘Entry’

Entry’ in relation to goods means entry made in Bill of Entry,

Shipping Bill or Bill of Export. In case of import by post, label or

declaration accompanying goods is ‘entry’

Loading and

unloading at

specified places only

Imported goods can be unloaded only at specified places. Goods

can be exported only from specified places.

Computerisation of

customs procedures

Customs procedures are largely computerised. Most of documents

have to be e-filed.

Amendment to

documents

Documents submitted to customs can be amended with

permission In case of bill of entry, shipping bill or bill of export, it

can be amended after clearance only on the basis of documentary

evidence which was in existence at the time the goods were cleared,

warehoused or exported, and not on basis of any subsequent

document. [provision to section 149].

ICD and CFS Imported and export goods are usually handled in containers. These

can be stored in Inland Container Depot (ICD) or Container Freight

Station (CFS). They function like dry port for handling and

temporary storage of imported/export goods and empty containers.

Boat Notes ‘Boat Notes’ are used for transferring small cargo from ship to

shore, or from shore to ship, without berthing the ship.

Transshipment of

goods

Goods can be transshipped from one conveyance to other after

following required procedure. Such transhipment may be to any

major port or airport in India. The goods can be transshipped to any

other customs station in India if Customs Officer is satisfied that

the goods are bona fide intended for transhipment to any customs

station. The facility is available at all customs ports and Inland

Container Depots (ICDs).

Coastal goods Procedures have been prescribed for coastal goods, even if there is

neither import nor export.

Import Procedures

e-filing of documents Goods should arrive at customs port/airport only. Most of customs

procedures are computerised. E-filing of documents is required.

Table 8

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Import manifest or

Import Report

‘Person in charge of conveyance’ is required to submit Import

Manifest or Import Report.

Entry Inwards Goods can be unloaded only after grant of ‘Entry Inwards’.

Risk Management

System

Self Assessment on basis of ‘Risk Management System’ (RMS) has

been introduced in respect of specified goods and importers.

Bill of Entry for home

consumption on payment

of customs duty

Importer has to submit Bill of Entry giving details of goods being

imported, along with required documents. Electronic submission of

documents is done in major ports.

White Bill of Entry is for home consumption. Imported goods are

cleared on payment of customs duty.

Bill of Entry for

warehousing

Yellow Bill of Entry is for warehousing. It is also termed as ‘into

bond Bill of Entry’ as bond is executed. Duty is not paid and

imported goods are transferred to warehouse where these are stored.

Green Bill of Entry is for clearance from warehouse on payment of

customs duty. It is for ex-bond clearance.

Noting, examination and

assessment

Bill of Entry is noted, Goods are assessed to duty, examined and pre-

audit is carried out. Customs duty is paid after assessment.

Bond Bond is executed if required if assessment is provisional (PD bond)

or concessional rate of customs duty is subject to certain post import

conditions.

Out of customs charge

order

Goods can be cleared outside port after ‘Out of Customs Charge’

order is issued by customs officer. After that, port dues, demurrage

and other charges are paid and goods are cleared.

Demurrage if clearance

from port delayed

Demurrage is payable if goods are not cleared from port/airport

within three days. Goods can be disposed of if not cleared from port

within 30 days.

Export Procedures

Table 9

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Entry Outward Loading in conveyance can start after ‘Entry Outward’ is given by

customs officer.

Export

manifest/Export report

Person in charge of conveyance is required to submit ‘Export Manifest’

or ‘Export Report’.

Registration with

DGFT and EPC

Exporter has to be obtain IEC number from DGFT is advance. He

should be registered with Export Promotion Council if he intends to

claim export benefits.

Third party exports Export can be by manufacturer himself or third party (i.e. by exporter

on behalf of another). Merchant exporter means a person engaged in

trading activity and exporting or intending to export goods [para 9.40

of FTP]

Registration of

documents under

Export Promotion

Scheme

Advance authorisation, DEPB etc. should be registered if exports are

under Export Promotion Scheme.

Shipping Mill Export is required to submit Shipping Bill with required documents for

obtaining permission to export. There are five forms : (a) Shipping Bill

for export of goods under claim for duty drawback - these should be in

Green colour (b) Shipping Bill for export of dutiable goods - this

should be yellow colour (c) Shipping bill for export of duty free goods

- it should be white colour (d) shipping bill for export of duty free

goods ex-bond - i.e. from bonded store room - it should be pink colour

(e) Shipping Bill for export under DEPB scheme - Blue colour.

FEMA formalities GR/SDF/Softex form (under FEMA) is required to be submitted.

Noting, assessment,

examination

The shipping bill is noted, goods are assessed and examined. Export

duty is paid, if applicable.

Certification of

documents for export

incentives

If export is under export incentives, relevant documents are checked

and certified. Then proof of export is obtained on ARE-1.

Let export order Conveyance can leave only after ‘Let Export’ order is issued.

Documentation Related to Export Trade:

Table 10

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Export Documents

Commercial Invoice GR Form

Letter of Credit Bill of Exchange

Shipping Bill Marine Insurance Policy

Bill Of Lading Airway Bill

Combined Transport Document Commercial Invoice

Consular Invoice Certificate of Origin

Inspection Certification Dock Receipt & Warehouse Receipt

Destination Control Statement Insurance Certificate

Export Packing List

Documentation Related to Export Trade:

Import Documents

Import License Bill of Entry

Bill of Sight Dock Challan

Indent Insurance Policy

Letter of Advice

Sources: International Business

Table 12

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FOREIGN TRADE POLICY OF NETHERLAND

Holland & Knight’s International Trade Group routinely represents the interests of foreign

governments and U.S. and foreign industries before the agencies of the United States

Government, the United States Congress and multilateral financial institutions. We partner with

our clients to determine desired trade policy outcomes and create a detailed plan to implement

those outcomes. We then effectively lobby the relevant governmental and international entities

to achieve the desired result.

In the area of bilateral trade negotiations, we have served for the past two years as advisors to

the Kingdom of Bahrain, a strategically important country in the Middle East, in connection with

its negotiation of a U.S.-Bahrain Free Trade Agreement (FTA). We have advised the Bahraini

Government on three levels, working simultaneously on technical trade negotiations with USTR,

lobbying of appropriate members of Congress to ensure passage of the FTA by Congress,

and strategic communications counseling. Our Trade Group also advises a number of important

Colombian industry groups with respect to the ongoing U.S.-Andean FTA negotiations.

We regularly represent foreign governments and private sector clients on a wide variety of

matters before all of the federal government agencies with responsibilities for the development

of U.S. international commercial policy, with particularly strong contacts at the Office of the

U.S. Trade Representative (USTR), the Department of Commerce and the Department of

Homeland Security (which now houses the former U.S. Customs Service). One of our attorneys

was formerly an Assistant General Counsel at USTR. In this area of practice, we work closely

with our Government attorneys, including a number of former members of Congress, whose

contacts in the Executive Branch and on Capitol Hill can prove invaluable in advocating for our

clients. Representations of this type include the governments of the United Kingdom, El

Salvador, all five Central American countries, Senegal, Jamaica, Trinidad and Tobago, as well

as a broad range of foreign commercial interests. Our Trade Group has considerable experience

with the GATT, WTO, CBI, NAFTA and other trade agreements.

Our Trade Group has successfully represented coalitions of U.S. companies on high-profile

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public policy and lobbying campaigns in support of open U.S. trade and investment policies. Our

experience in U.S. trade policy enables Holland & Knight to work with companies on both major

trade lobbying initiatives and narrower, company and sector-specific concerns relating to tariff,

customs, market access and antidumping/countervailing duty provisions of U.S. trade

legislation.

A key ingredient in effective representation in the trade policy area is a strong working

knowledge of the specific trade specialties. Our Trade Group works daily on a wide variety of

international trade matters, such as customs, trade litigation, U.S. export controls and sanctions.

In addition, our Trade Group can draw upon the resources, knowledge and contacts of a wide

range of experienced Holland & Knight lawyers from areas as diverse as telecommunications,

international banking and labor law.

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UNDERSECRETARIAT OF FOREIGN TRADE

TASKS

Assisting the government in determining the policies of foreign trade,

Arranging bilateral and multilateral trade and economic relations along with exports,

encouragement of exports, imports and contracting services abroad, monitoring the

implementations and promoting them.

General Directorate of Exports Areas of Duty

Export Regulations,

Observation, Control, Orientation in Export,

State Aids for Export,

Promotion Activities for Export Products,

Efforts against Restrictive Measures on Export,

Exporter Unions and Their Umbrella Institutions,

Off-shore and Border Trade

Aspects of Important Activities

Inward and Outward Processing Regimes

Trade and Buyer’s Missions

Fairs and Exhibitions

Government Subsidies in Context of WTO and EU Obligations

Sectorial Foreign Trade Companies

General Directorate of Imports Areas of Duty

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Designing and implementing the import policy,

Preparing Import Regime Decree and other import-related legislation,

Conducting importation towards the set objectives,

Implementing import-related product policies,

Taking measures necessary for the domestic industry,

Determining fiscal charges applicable in importation. The Import Regime, which constitutes

the basis of the Import Policy, is formulated in accordance with:

Multilateral Agreements annexed to the Agreement Establishing the World Trade organization

and other arrangements there to,

Arrangements regulating our relations with the EU,

Other bilateral and multilateral agreements, the needs of the domestic industry.

General Directorate of Agreements Areas of Duty

Bilateral Trade Agreements,

Bilateral Commercial, Industrial and Technical Cooperation Agreements

Multilateral Trade Agreements,

Overseas Contracting Services

Sources: www.igeme.gov.in

Trade barriers in Imports

1. Restriction on imports:

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Control over the import of goods into India is exercised by the Import Trade Control

Organization, which functions under the ministry of Commerce.

This organization is supervised by the Director General of Foreign Trade stationed at New

Delhi, who is assisted by Additional and Joint Directors General and by other licensing

authorities at various centers.

Current import policy, valid from April 1992 to March 1997, is embodied in the Export and

Import Policy book out by the Director General of Foreign Trade.

Some salient features of the import restrictions are as follows.

The importing of prohibited items is banned;

The importing of restricted items is permitted under specific license, or in accordance

with a public notice conveying a general schedule;

Canalized items can be imported only through designated public sector agencies, such as

the Indian Oil Corporation and the State Trading Corporation. However, the central

government may grant licenses to others to import any canalized goods.

The negative list of import is under constant review; it is important to check the current

list at the time of import.

The import of consumer goods and durables continues to be restricted (with exceptions

for Specific items).

The import of capital goods machinery has been liberalized and is generally allowed

without license. Secondhand capital goods are also allowed, subject to certain conditions.

Special licensing schemes permit the import of capital goods required for export

production either duty-free import of inputs required for export production.

The import of gold and specified items of consumer goods is also permissible under

special import licenses issued to certain categories of exporters on the basis of either the

net foreign exchange earning or the FOB value of physical exports.

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2. Duties on imports:

Customs duties are levied at specific percentage ad valorem, specific amount per unit of quantity

or both, depending on the classification of the imported goods in the Customs Tariff Act. Duty

rates may change according to the country of origin and the type of product.

For example, complete exemption or rate concessions are allowed on the import of specified

items from some neighboring and developing countries such as Bangladesh, Bhutan, Egypt,

Myanamar, Nepal, and Sri Lanka.

3. Concession on duty:

Duty is waived or a concessional duty rate is permitted for export into India of capital goods under

the Export promotion Capital Goods (EPCG) Scheme.

4. Provisions for Antidumping duty:

Antidumping duty provisions have been invoked in some cases. Indications are that they may be

applied more actively where availability of imports in India at lower price that that prevailing in

the exporting country is likely to cause significant harm to the domestic industry.

5. Long procedures for documentations:

The rules and procedures for imports are contained in the Handbook of Procedures - Imports and

Export Promotion, which is issued from time to time by the Director General of Foreign Trade.

Import licenses are issued in duplicate and market for customs and exchange control

purposes, respectively.

It is important that the correct quantity, description and value of the goods be properly

recorded on the license and exporter's invoices, because failure to do so could lead to

protracted delays in the clearance of goods and litigation.

Every invoice must be signed. Invoices should normally be prepared on FOB terms,

A freight note should be attached, since in the absence of documentary evidence of the

amount payable for freight and insurance, Indian customs adds 10 percent to the invoice price

in arriving at the value for imposing import duty.

Where an import license is required, no letter of credit may be opened or remittance made to

a foreign country for imports unless the importer is in possession of a valid import license

marked for exchange control purposes.

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6. Customs and storage:

The quality of customs and storage facilities and the security of goods are modest to adequate,

varying from port to port.

To facilitate access to imported inputs for exporters, the government has allowed private

operators to set up bonded warehouses subject to certain conditions. However, there are no

restrictions on the type of goods to be warehoused.

7. Re – Exports:

The Duty Exemption Scheme enables imports of duty-free raw materials, components,

intermediates, consumables, parts, spares, and packing materials required for purposes of export

production.

Licenses issued for this purpose require adherence to value-added and input-output norms and

fulfilment of export obligations. Units set up in export-processing zones or as 100 percent export-

oriented units are also required to comply with specific value-added norms

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PRESENT TRADE RELATIONS AND BUSINESS VOLUME OF DIFFERENT

PRODUCTS WITH INDIA

Main Commodities Subject to Trade:

Dutch export products to India are iron and steel products, oil-seeds, crude fertilizers, textile

yarn, machinery, metal ores, road vehicles and mineral manufactures.

Imports are dominated by textile yarn and fabrics, organic chemicals, clothing accessories,

medicinal and pharmaceutical products, petroleum oils, motor vehicles, iron and steel, textile

fibers, coloring materials.

The number of Indian companies operating in Netherland doubled from 60 in 2008 to 120 in

2010. Significant Indian companies are interested in oil refining, metal processing, and agro-

industry and cosmetics sectors.

Dutch and Indian companies to enjoy fruitful collaborations in the fields of R&D and their

commercial spin-offs in the areas of bio-technology, nano-technology and information

technology.

Indian investments in Netherland are in several diverse sectors viz., railway construction,

electricity transmission, pipelines, consultancy services for earthquake emergency, hydro-

carbon, CNG conversion and IT services.

Dutch investments in India are in sectors of travel and tourism, home textile products,

construction/maintenance of roads, etc.

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BUSINESS VOLUME

Indian companies led by the Tata group, Mahindra and Mahindra, GMR and Arcelor Mittal

are already operating in various parts of Nethrland and the rush does not seem to stop.

Indian companies having interests in mining, minerals, those wanting to acquire coal mines

and also take part in the energy and power projects have made a beeline for Nethrland.

Several business communities in both the countries would enjoy a well-designed and smooth

atmosphere for trade and economic relations.

The total trade volume in the year 2007 was US $2.6 billion, and a target has been set to raise

it up to $5 billion by 2012 and to $10 billion by 2020

Netherland companies in India:

More than 150 companies with Indian capital have registered businesses in Netherland in

the form of joint ventures, trade and representative offices. They include

Gateway Group of Company

Cadila Pharmaceutical LTD.

Aarding India Private Limited

ABN Amro Bank NV

Agaram Industries (P) Limited

Moser Baer

Bluestar Limited

FoodCert India (P) Ltd.

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PESTEL

ANALYSIS

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Definition:

A type of situation analysis in which political-legal, economic interest rates, socio-cultural ,

and technological factors are examined to chart an organization's long-term plans.

What is a PESTEL Analysis?

PEST is an acronym that stands for the following four Macro-Economic factors:

Political - how a government intervenes in your business. It may include taxes, law, political

stability, regulation and de-regulation.

Economic - These include interest rates, inflation rates, unemployment rates, income

rates/distribution and tariff rates.

Social - These include cultural aspects of population growth, age distribution, career trends,

lifestyle trends, etc.

Technological - These include trends such as remote working, A Virtual Workplace, mobile

computing, the Internet and other R & D innovations.

Environmental - these include trends of global warming and all environmental issues.

Legal - these includes trends such as competition law, health and safety and employment law.

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PESTEL ANALYSIS

OF

NETHERLAND

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The political landscape discusses the evolution of the political scenario in Netherlands

in different periods. The economic, social, foreign and defence policies are considered

in the political landscape section. It also discusses the performance of the country as per

World Bank Governance Indicators.

The economic landscape describes the evolution of the economy of Netherlands in

different periods. It also examines the country’s performance in terms of GDP growth,

composition by sector (agriculture, industry and services), fiscal situation, international

investment position, monetary situation, credit disbursement, banking sector and

POLITICAL

ECONOMICAL

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employment. The economic landscape also explains the financial system in the country,

especially with regard to financial authorities/regulators.

Year GDP (IN $

BILLION)

GDP( per

capita) (in $)

Annual real GDP Inflation rate

2011 $704.034

BILLION

$42,183 1.1% 2.3%

2010 $704.1 BILLION $41,800 1.6% 2.4%

2009 $692.4 BILLION $41,300 1.5% 2.1%

Natural Resources

Natural gas, petroleum, peat, limestone, salt, sand and gravel, arable land

Agriculture

Grains, Potatoes, Sugar beets, Fruits, Vegetables; Livestock

Industry (-0.6%)

Agro Industries, Metal and Engineering Products, Electrical Machinery and Equipment,

Chemicals, Petroleum, Construction, Microelectronics, Fishing

Trade

1. IMPORT: $514.1 BILLION (2011 EST.)

$429.5 Billion (2010 est.)

Table 13

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Import Commodities: Machinery and Transport equipment, Chemicals,

Fuels, Foodstuffs, and Clothing

2. EXPORT: $576.9 BILLION (2011 EST.)

$486.7 billion (2010 est.)

Export Commodities: Machinery and Equipment, Chemicals, Fuels;

Foodstuffs

The social landscape covers the demographics, education and healthcare scenario in

Netherlands. The social welfare policies of the government along with the country’s

performance in terms of healthcare, income distribution and education are also

provided.

Language

Dutch 80.7%, EU 5%, Indonesian 2.4%, Dutch 2.2%, Surinamese 2%, Moroccan 2%,

Caribbean 0.8%, other 4.8% (2008 est.)

Religions

Roman Catholic 30%, Protestant 20% (Dutch Reformed 11%, Calvinist 6%, other

Protestant 3%), Muslim 5.8%, other 2.2%, none 42% (2006)

Roman Catholic,

30%

Protestant, 20%

Muslim, 5.80%

Other, 2.20%

None, 42%

RELIGION

SOCIAL

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The technological landscape discusses the structure and policies in terms of Intellectual

property, research & development, technology agreements/pacts; and policies related to

the promotion of technology in Netherlands.

The environmental landscape in Netherlands discusses the environmental regulations

and policies of the country. The performance of the country in terms of in terms of

environmental indicators and impact of environmental policies is also examined.

The legal landscape examines the structure of the judicial system, legislation affecting

businesses, tax regulations, labor laws, trade regulations and corporate governance in

Netherlands.

TECHNOLOGICAL

LEGAL

ENVIORNMENT

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PESTEL ANALYSIS

OF

INDIA

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India is the biggest democracy in the World. The government type is federal republic.

Based on English common law; judicial review of legislative acts; accepts compulsory ICJ

jurisdiction with reservations; separate personal law codes apply to Muslims, Christians,

and Hindus. The political Situation in the country is more or less stable.

Parties involved in Indian political group:

1. Indian national congress (INC),

2. Bharatiya janta party (BJP),

3. Communist party of India (CPI),

4. United progressive alliance (UPA).

Overall India currently has a coalition led government and both major political parties the

UPA and BJP, whichever comes in power.

The economic factors in India are improving continuously.

Gross domestic product:

The GDP is estimated at 2.965 trillion U.S. dollars in the year 2007. The GDP- per

Capita was 2700 U.S. dollars as estimated in 2007. The GDP- real growth rate in 2007 was

8.7%. India has the third highest GDP in terms of purchasing power parity just ahead Japan

and behind U.S. and China.

Foreign direct investment:

Foreign direct investment rose in the fiscal year ended March 31 2007 to about $16

billion from just $5.5 billion a year earlier.

● Per capita income:

There is a continuous growth in per capita income; India’s per capita income is expected

to reach 1000 dollars by the end of 2007-08 from 797 dollars in 2006-07

POLITICAL

ECONOMICAL

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India is the second most populous nation in the world with an approximate population of over

1.1billion people. This population is divided in the following age structure:

0-14 years – 31.8%,

15-64 years – 63.1% and

65 years and above – 5.1%.

The main factors which are included in social factors are as under:

1. Emphasis on safety

2. Career attitudes

3. Population growth rate

4. Age distribution

5. Health consciousness

The technological knowhow and expertise will also enter the Indian market with an increase in

competition. For example beer brewing technology major Ziemann has entered India and has

set up manufacturing plant in India. Ziemann Group, based in Ludwigsburg near Stuttgart in

Germany, has founded Ziemann India. The technological change in India is always on a lower

basis and it doesn’t effect on country as a whole.

The main technological factors include:

1. Research and development activity

2. Technology incentives

3. Rate of technological change

4. Automation

SOCIAL

TECHNOLOGICAL

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Initially the environmental factors play a vital role in the economy of any country. The

environmental factors don’t play a vital role in the capital market but the time has changed and

people are eco-friendly. This is really bothering them that if any firm or industry is environment

friendly or not. An increasing number of people, investors, and corporate executives are paying

importance to these facts, the capital markets still see the environment as a liability. They

believe that it is of no use for their strategy.

Legal factors plays a vital role in development and sustain the capital market. Legal issues

relating to any industry or firm decides the fate of the capital market. If the govt. of india or

the parliament introduces a new law that can affect the running of the industry then the industry

will be demotivated and this demonization will lead to the demonization of the investors and

will result in the fall of capital market.

ENVIORNMENTAL

LEGAL

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PRESENT POSITION OF

BUSINESS OPPORTUNITY

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Objectives of the Company

To strive for global positioning with a strong customer focused approach and constant quest

for standard quality products.

To ensure the best services around the world and shall sustain organizational excellence

through innovative efforts.

To Innovative effort with blend of technology to become reputed known company in the eye

of global customer.

To Committed to total customer satisfaction.

To establish the highest standards of business ethics through fair business practice.

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Competitors’ Details

In today’s business world, there will be hardly any field where there will not be competition

among two or more units for increasing the market share of their products. Today this

competition has reached to its top level.

It becomes the cut-throat competition. The organizations have to adopt newer and newer

technologies to survive in the market against such cut-throat competition that they are facing

from their competitors. For instance, a giant organization HLL is also facing the competition

from Nirma, P & G, etc.

Same way, Ashwani is also facing the competition from various competitors in the local markets

as well as from the overseas markets.

If we talk only about the local markets, then also there are number of competitors available that

are in the same field of manufacturing the Brass Engineering Turned Components & Electrical

assemblies.

But as we all know that, Quality as well as Quantity both plays a very important role in

competitive advantages, Ashwani Metals has understood this technique and same thing applied

to its business activities.

Competitors of the Ashwani Metals Pvt. Ltd.

1) Megha Corporation Pvt. Ltd.

2) Precision Industry

3) Myank Metallurgical Pvt. Ltd.

4) Senor Metal Pvt. Ltd.

5) Mayank Metal Pvt. Ltd.

6) Rajshanti Metal Pvt. Ltd.

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Present status

As on date there are 7000 brass part manufacturing unit along with 520 electroplating and

metal finishing of brass parts. Around 750 brass foundry units catering to the need of raw

material for brass part manufacturing units in Jamnagar. Brass parts are manufactured from

brass casting which is the basic raw material for the brass parts machining units.

There are about 1000 foundries with a capacity of about one ton per day, besides fourteen

brass-extrusion plants; 550 to 700 buffing / nickel / electroplating factories and about 65

highly experienced and accomplished brass-parts machinery fabricators. All these

manufacturing units are supported by a large number of traders, middlemen and exporters

whose number is guessed to be about 850 (including outsiders).

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Domestic Export of Brass Extursion Products

Ashwani metals pvt ltd, considering its domestic export of brass extrusion products

throughout the whole India mainly focusing on the state Gujarat.

The main focus of company is to targeting the customer with the context of domestic market

of brass products.

The main benefits of domestic export of brass extrusion products is that ashwani metals

particularly aware about the requirement of the domestic customers.

So it’s easy for the company to capture or positioning to cattered the domestic market.

Sr.No City No.Of

Units

Year Types Standards

1. Surat 4500 2008 N Brass C 37700 ASTM

2. Rajkot 2882 2006-09 Brass CW 617 N DIN,ASTM,SABS,

3. Ahmedabad 450 2009 N Brass C 37700 Uns

4. Borada 2100 2007 C 36000 SABS, CSA

5. Anand 1500 2009-08 36-de 343 CEN,SABS, CSA

6. Gandhinagar 2155 2010 d-g5600 IS, BS, JIS, UNS,

CEN,

7. Bharuch 750 2010 d-g212 SABS, CSA

8. Junagadh 950 2011 Brass 6700 DIN, ASTM, JIS,

Table 14

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Domestic Export

In the year, 2006 Ashwani metals pvt. Ltd started its working in Rajkot with the product of

brass CW 617N.

Gradually, it has continues the business in Baroda with product of C-36000 and the standard

of SABS, CSA.

Upto 2006-2007, product is reached in many big city of Gujarat.

In the year 2008-2009, Ashwani metals limited started dealing with Surat product of N crass

c 37700 e along with the standard ASTM. In Anand, product 36-de 343 standard considering

CEN,SABS,CSA.

Finally, for the year commencing 2009-10, Ashwani metals pvt. Ltd. Covered the mega city

of Ahmedabad with introducing product of N brass C 37700 of standard uns.

recently, company gets connected with junagadh starting with the product brass 6700

considering standard of product DIN,ASTM,JIS.

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Domestic import Of Brass Extursion Products

Ashwani metals pvt. Ltd depends mainly on domestic market for procurement of the all

inputs for its product i.e. raw-materials.

The main purpose of company in domestic import is to get all inputs for product at economic

price level as well best from the quality point of view.

Domestic import market facilitates the company to manage its inventory time to time.

Sr.No City No. Of Units Year Types Standards

1. Bilimora 60 2009-10 N Brass C

37700

ASTM, CSA

2. Ahmedabad 630 2006 Brass CW 617 N IS, CEN,

SABS, CSA

3. Bhavnagar 220 2009-11 N Brass C

37700

ASTM,

SABS, CSA

4. Borada 100 2007 C 36000 SABS, CSA

5. Jamnagar 2100 2009 36-de 343 DIN, ASTM,

JIS, UNS,

CEN, SABS,

CSA

6. Gandhinagar 233 2010-11 d-g5600 IS,BS,DIN,

ASTM, JIS,

UNS, CEN,

SABS, CSA

7. Bharuch 2346 2010-11 d-g212 IS, BS, DIN,

ASTM, JIS,

8. Anand 40 2011 Brass 6700 CEN, SABS,

CSA

Table 15

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Domestic Import

In the year 2006, Ahmedabad became the main supplier of raw-material for the ashwani

metals pvt. Ltd.

With the impact of inflation, prices of raw-materials of brass had been increased thus,

company has change supplier and jump with the supplier of baroda for the product of C –

36000.

In the year 2009, company has decided to import material same city i.e. Jamnagar only for

product of 36-d 343.

While in year 2010-2011,Gandhinagar and Bharuch became leading suppliers of ashwani

metals pvt. Ltd.

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SWOT ANALYSIS

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SWOT analysis is a tool, used in management and strategy formulation. It can help to identify

the Strengths, Weaknesses, Opportunities and Threats of a particular company.

Strengths and weaknesses are internal factors that create value or destroy value. They can

include assets, skills, or resources that a company has at its disposal, compared to its

competitors. They can be measured using internal assessments or external benchmarking.

Opportunities and threats are external factors that create value or destroy value. A company

cannot control them. But they emerge from either the competitive dynamics of the

industry/market or from demographic, economic, political, technical, social, legal or cultural

factors (PEST).

This report gives an overview of strengths, weaknesses, opportunities and threats of the

Dutch guidance system. It is prepared for the Work Package 2 (Access) group of the ELGPN.

However, the SWOT analysis is aimed at the guidance system in the Netherlands as a whole.

The report is based on official or general accepted documents but is not reflect an official

Dutch viewpoint on guidance. Rather it reflects the viewpoint of the ELGPN representatives

in the ELGPN network.

A recent reflection note on the present state of the guidance system in the Netherlands can be

found in McCarthy (2009).

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Strengths of the Dutch guidance

are also pointed out in OECD, 2012. This report mentioned as potential strengths of the Dutch

guidance system

a) The extent and quality both of labour market information and of consumer information, for

use in guidance.

b) The formal affirmation within the vocational education system of the central importance of

the student’s career path.

c) The emergent market in career guidance and information services created by the policy of

decentralization and marketization: still limited and fragile, but with potential for

Development.

d) The network of Public Employment Services, in Dutch since 2009 ‘UWV Werkbedrijf’

(formerly known as CWI), alongside the werk.nl website and the proposed customer support

center.

The potential weaknesses of the Dutch guidance system are already pointed out in OECD, 2012:

a) The limited attention attached to career guidance, and particularly to contacts with the labour

market, within the general education part of the education system.

STRENGTH

WEAKNESS

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b) More generally, the fragmented nature of the guidance system as a whole: arguably, it is not

currently a system at all, in any meaningful sense, but a series of disconnected entities.

c) The lack of accountability, monitoring and quality assurance: this is particularly evident in

relation to schools, but is an issue in all sectors.

d) The lack of clarity regarding the role of government within a decentralised and marketwise

system.

Seven years later it can be concluded that these weaknesses still stand very strongly. More

background to the Dutch guidance system and its weaknesses can be found in Jansen, 2006.

a) Regional cooperation structures

b) Sectorial career guidance

c) Mobility Centers d) Learner information package (ELD)

If we compare reports on workforce development and preparation from the Netherlands in the

past four years with the guiding principles of the 2008 Council Resolution, we can see that:

a) The first of these principles – citizens’ acquisition of career management skills - is not yet

on the education, training and employment policy agendas

b) Limited moves are being made to improve physical access to guidance services for adults

through the use of Work and Income Centres and to improve virtual access by means of

telephone and internet

c) A minimalist approach to quality assurance of schools guidance provision is a proposed

action strand in the Career Orientation and Guidance report

OPPORTUNITY

THREATS

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d) Significant cooperation is reported between different ministry directorates within and

across the education, training and labour market sectors, and with the social partners at

regional level.

e) Joining parties involved in life long guidance in the Netherlands could evolve to a new

‘talking group’, without concrete actions.

SWOT ANALYSIS OF INDIAN BRASS INDUSTRY

SSttrreennggtthhss::

Manpower available at economical rate.

Aesthetic know –how, functional integration and engagements.

Few competitors for hand made products.

Products with unique features.

Exporters are flexible and can handle small to medium orders.

WWeeaakknneesssseess::

Unstable price of raw material.

Internal competition.

Expensive infrastructure.

Exporters cannot handle big orders.

Untimely delivery.

Stereotype manufacturing.

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OOppppoorrttuunniittiieess::

Increasing interest for decorative items by consumers in the developed countries.

Passion for novelty and exclusivity.

Mammoth income at the disposal of customers in developed countries.

Growing trend of offering gifts to developing interpersonal relationship.

Growth in retail sector.

Growth of e- commerce for direct marketing.

TThhrreeaattss::

Competitors are providing products of better quality at a competitive rate.

Trade terms of competitors compatible to the customers.

International standards.

Unstable government at home.

Legal obligations.

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Potential for Import/Export in

Gujarat and Business

Opportunities

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AGRICULTURE AND ALLIED SECTORS

AGRICULTURE

Output of agricultural sector in Gujarat State has been largely dependent on south-west

monsoon.The State frequently experiences erratic behaviour of the south-west monsoon, which

can partly be attributed to geographic situation of the State. The wide variation in rainfall

received by different parts of the State has been the characteristic feature of monsoon. Valsad

district in south Gujarat received maximum rainfall of 2064 mm, while Kachchh district received

minimum rainfall of 663 mm in the monsoon of year 2007.

Season 2010-11

As the rainfall was started in the third week of June, and it was favourable for growing of Kharif

crops like Bajra, Jowar, Moong, Math, Urad, Groundnut, Cotton etc. In many district farmers

started sowing of this crop in last week of June.

WATER RESOURCES DEVELOPMENT

Water resources management of the State is aimed at providing water efficiently, in equitable

and sustainable manner. The State has given due attention to accelerate the pace of water

resources development to increase the net water availability by creating additional storage,

completion of ongoing projects, improvement in water use efficiency, bridging the gap between

the potential created and its utilization, restoration & modernization of old irrigation system,

conjunctive use of ground and surfacewater, promoting participatory irrigation management,

large scale people’s participation in water conservation programmes and inter-basin transfer of

water.

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INDUSTRIES AND MINING

INDUSTRIES

Gujarat Industrial Policy - 2003

1 The State Government has announced Gujarat Industrial Policy 2003. The main objective of

Gujarat Industrial Policy-2003 is to achieve sustainable industrial development with a view to

create large scale employment opportunities and achieving global competitiveness by improving

productivity among industrial units.

2 Gujarat Industrial Policy-2003 has enumerated following aspects as part of the strategy

industrial development in the state.

(i) Enabling an entrepreneur easy access to authentic source of information.

(ii) Sensitizing Government officials from grass root level to the apex level, to be able to

emphasize with legitimate concerns of an entrepreneur.

(iii) Developing better than the best infrastructure.

(iv) Empowering industrial estates.

(v) Producing quality human resources in accordance with contemporary requirements of

industries.

Special Economic Zones

Special Economic Zones (SEZs) are growth engines that can boost manufacturing, augment

exports and generate employment. The Government has enacted Special Economic Zones Act,

2004 in orderto provide a hassle free operational regime and encompassing state of the art

infrastructure and support services. Special Economic Zone (SEZ) is a specifically delineated

duty free enclave and shall be deemed to be foreign territory for the purpose of trade and

operations and duty and tariffs. The goods and services going into Special Economic Zone area

from DTA shall be treated as exportsand goods coming from Special Economic Zone area into

DTA shall be treated as imports. SEZ units may be set up for manufacturing of goods and for

rendering of services

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Small Scale Industries

Gujarat has witnessed impressive development in Small Scale Industrial (SSI) sector. The

numbers of SSI’s were just 2169 in the year 1961, it has gone up to 3.12 lakh as on September-

2009.

DEVELOPMENT IN IMPORTANT SECTORS OF GUJARAT ECONOMY

24 Socio-Economic Review, Gujarat State, 2007-08

In the small scale sector, in all 10055 SSI units have been registered during the year 2008-09. At

the end of March-2009, the cumulative of registered SSI units have crossed the figure of 3.10

lakh. In addition to this 2764 new SSI units have been registered till September-2009. Thus at

the end of September-2009 cumulative of registered SSI units have crossed the figure of 3.12

lakh. Moreover under MSMED Act total more than 8100 units have been registered as Micro,

Small and Medium Enterprises from 02-10-2009 to 30-09-2010.

Medium and Large Industries

During the year 2000-01, a Census of Medium andLarge Scale Industries was carried out. It

waspossible to enlist 2100 industrial units for censuswork. Under the survey of medium and

largeindustrial programme, it was possible to carry outsurvey of 2059 industrial units in medium

and large

SCIENCE AND TECHNOLOGY

Information Technology Sector

Government of Gujarat is focusing upon the development of I.T. Infrastructure in the State as

perInformation Technology Policy 2006-2011. In addition, Department of Science &

Technology isendeavoring for attracting quality investments for IT and BT Sectors in the State.

Socio-Economic Review, Gujarat State, 2007-08 43

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DEVELOPMENT IN IMPORTANT SECTORS OF GUJARAT ECONOMY

Vibrant Gujarat IT Summit – 2006

This event was organized on 1st December, 2006. MoUs worth Rs.11,000crores were signed

with IT Infrastructure Developers and ICT Investors. Later, another set of MoUs worth Rs.3500

crores were also signed during the Global Investor Summit - 2007. Put together these MoUs are

expected to attract potential investment of Rs.15,000crores and employment opportunities for

3.3 lac persons.5.66 In addition, a large number of reputed educational institutions, IT Parks and

Gujarat International Finance Tech-City (GIFT) are being set up in Gandhinagar - Ahmedabad

knowledge corridor. This would create a large number of employment opportunities to the skilled

manpower in the State.Similarly, GIDC is setting up an IT SEZ Park for IT Mega Projects in

Gandhinagar.

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RECENT INITIATIVES

1. By enacting the Micro, Small and Medium Enterprises Development Act, 2006, the

Government has recently fulfilled one of the needs felt and articulated by this segment for

long. This Act seeks to facilitate promotion and development and enhancing competitiveness

of these enterprises. It provides the first-ever legal framework for recognition of the

concept of "enterprise" (comprising both manufacturing and services) and integrating the

three tiers of these enterprises, namely, micro, small and medium. Apart from clearer

and more progressive classification of each category of enterprises, particularly the small, the

Act provides for a statutory consultative mechanism at the national level with wide

representation of all sections of stakeholders, particularly the three classes of enterprises;

and with a wide range of advisory functions.

Establishment of specific Funds for the promotion, development and enhancing

competitiveness of these enterprises, notification of schemes/programmes for this purpose,

progressive credit policies and practices, preference in Government procurements to

products and services of the micro and small enterprises, more effective mechanisms for

mitigating the problems of delayed payments to micro and small enterprises and

simplification of the process of closure of business by all three categories of enterprises

are some of the other features of this legislation.

2. The Government has also announced a Policy Package for Stepping up Credit to

Small and Medium Enterprises assuring, inter alia, a 20 per cent year-on-year growth in credit

flow.

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3. Significant improvements have also been made in the Credit Linked Capital Subsidy

Scheme for Technological Up gradation, leading to a spurt in the number of units availing of

its benefits.

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Sr.No. Sector No. of MOUs/

dealings

Proposed

Investment (Rs in

Crore)

Employments

1) SEZ 28 170889 632640

2) Chemical & Petrochemicals 31 13414 15169

3) Pharmaceuticals 5 347 1060

4) Engineering. Auro 36 14963 44090

5) Textiles & Apparels 29 8283 106230

6) Agro & Food Processing 61 10375 73401

7) Biotechnology 19 1541 7714

8) I.T. 21 14811 330200

9) Oil & Gas 26 44766 16515

10) Power 19 133429 12560

11) Port 22 13518 12100

12) Civil Aviation 4 10028 10200

13) Road & Rail Project 6 2516 575

14) Paper Industries 6 1577 2813

15) Urban Development 5 6985 -

16) Financial Sector 1 1000 25000

17) Education 2 510 -

18) Health Care 8 2092 9250

19) Tourism 34 10793 26870

Total 363 461835 1326387

The total 363 MOUs have been signed in 19 different sectors with of Rs. 461835 crore and

generation of 1326387 employment opportunities in the State.

Table 15

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Opportunity

Education

Civil aviation

Finance sectoer

Pharmace-utucals

“Potential for Import/Export in Gujarat and Business Opportunities”

Above table depict that the potential opportunity is available mainly in the

The table showing that the Gujarat state importing the investment in

Special economic zone, 170889Cr.

Power 133429Cr.

Engineering and Auto with 14963Cr.

Comparing and contrasting an investment with an employment. Its showing positive relationships,

both going hand on hand.

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BUSINESS OPPORTUNITES IN FUTURE

Doing in Business – Negotiation

If you are going to Netherland to do business, know two things:

Your success is defined by your ability to build effective person relationship combined with

on clearly outlined and well-presented proposal.

Business is personal in Netherland.

Although this is change with more corporate culture in some of the larger countries many

business are still family owned and run.

Turkes are primarily oral and visual communicators so it addition to return statistic projection

and the likely to present information vocally or with maps, graphs and charts.

If you are doing business in Netherland involves negotiating, it may not always be necessary

to focus on financial benefits, it is just a useful to print to areas such as power, influence,

owner, respect and other monetary resources.

Don’t use deadlines or present tactics as the Nehterland will use this to their advantage in

reverse tactics by threatening to cancel agreement and or end negotiation be patient.

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INTRODUCTION

Property and construction are the backbone of the Australian economy. It provides 14% of

nation’s wealth and employees 7,30,000 people. It has impact on other industries also. If the

industry uses its resources effectively than it would be more competitive.

Looking to the future is an important step in an industry. So the national initiative of cooperative

research for construction innovation Australia is taking a significant step forward in establishing

a vision for the future construction industry. Industry leaders and members around the country

have been consulted in order to refine the research for our important industry.

AN OVERVIEW OF BRASS INDUSTRY.

The brass parts industry is primarily an intermediate industry Supplying a wide variety of brass

parts and components to almost all The engineering industries ranging from electrical/

electronics industry To automobile industry. Its phenomenal growth could also be ascribed To

the growth and diversification of other engineering related sectors Of the industry. The brass

parts industry has a heavy concentration in Jamnagar.

Jamnagar is famous known as “CHOTTA KASHI”, PARIS OF SAURASTRA. Brass city etc.

the origin of kingdom of NAWANAGAR former known as Jamnagar can be tracked of the times

of Jam Hala who crossed over the north and entered saurastra and entered the greeted part of

territory of haler. The districts head quarter is Jamnagar.

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HISTORY AND EVOLUTION OF BRASS PARTS INDUSTRY

IN JAMNAGAR DISTRICT

The brass parts industries in Gujarat is mostly concentrated in an Around Jamnagar district which

caters to the requirement of around70% of the machine brass component of the country and also

in some Quantity export to various countries. The brass parts industry in Jamnagar supplies to

wide ranging industries such as electrical Appliances, automobiles, bicycles, electronics,

building hardware.

OPPORTUNITES

KNOWING THE MARKET

Currently, private sector foreign investment remains subdued, however, the interim Government

advises it is committed to investing in capital works in the infrastructure of roads, water and

sewerage and there are plans for around a$170 million of capital works in water utilities alone

by 2012. Road-related works and government housing projects have been financed by Banks

from Asian countries, which has resulted in tethering of the bulk of delivery to these countries

corporations.

FUTURE OPPORTUNITIES

Growth of the Construction sector will also give a boost to many other economic activities. It

will stimulate substantial growth in the construction equipment industry as well as a host of other

down-stream industries like cement, steel, paints/chemicals, fixture & fittings, bricks & tiles,

non-ferrous metals/plastics/glass, timber and wood based products.

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The main opportunities in services are in the provision of consulting for designs, management

of building projects and construction as head contractor. The head contractor then engages the

local contractors to assist. Companies must be aware of the long lead times from project

conception to implementation.

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PER CAPITA

INCOME

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PER CAPITA INCOME

What does Per Capita income mean?

Meaning :

“Per capita Income means how much an individual earns, of the yearly income that is generated

in the country through productive activities.” It means the share of each individual when the

income from the productive activities is divided equally among the citizens.

Why per capita income is required?

Per capita income is reported in units of currency. Per capita income reflects the gross national

product of a country. Per capita income is also a measure of the wealth of a population of a

nation when compared with other countries. It is expressed in terms of commonly used

international currency such as Euro, Dollars because these currencies are widely known.

How to find per capita income?

The total income of the country is divided by the total number of population of the country.

That figure shows the per capita income of the country.

Per capita income= total income of country

Total number of population of country

Or

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In other words, Per capita income or income per person is a measure of mean income within

an economic aggregate, such as a country or city. It is calculated by taking a measure of all

sources of income in the aggregate and dividing it by the total population. It does not attempt

to reflect the distribution of income or wealth.

Per capita income = mean of income of specified area like country or city

Total population of specified area like country or city

Significance of per capita income:

1. Per capita income is often used as a measure of the wealth of the population of a nation,

particularly in comparison to other nations.

2. It is usually expressed in terms of a commonly-used international currency such as the Euro or

United States dollar, and is useful because it is widely known, easily calculated from readily-

available GDP

3. Per capita income comprises population estimates and produces a straightforward statistic for

comparison.

4. Gross domestic product (GDP) refers to the market value of all final goods and services

produced within a country in a given period. GDP per capita is often considered an indicator

of a country's standard of living.

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List of countries by GDP (PPP) per capita

World map showing countries above and below the world GDP (PPP) per capita,

currently $10,700. Source: IMF (International Monetary Fund).

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Particular Statistics

GDP (Purchasing Power Parity)

$713.1 billion (2011 est.)

$704.1 billion (2010 est.)

$692.8 billion (2009 est.)

GDP (Official Exchange Rate)

(As per US $)

$858.3 billion (2011 est.)

GDP-Real Growth Rate

1.6% (2011 est.)

1.6% (2010 est.)

-3.5% (2009 est.)

GDP-Per Capita (PPP)

$42,300 (2011 est.)

$41,800 (2010 est.)

$41,300 (2009 est.)

GDP-Composition by Sector

Agriculture: 2.7%

Industry: 24.2%

Services: 73.1 %( 2011 est.)

Labor Force 7.809 million (2011 est.)

Labor Force-By Occupation

Agriculture: 2%

Industry: 18%

Services: 80 %( 2005 est.)

Unemployment Rate 4.4% (2011 est.)

4.5% (2010 est.)

Population Below Poverty 10.3% (2005)

Investment (Gross Fixed) 18.6% of GDP (2011 est.)

Budget Revenues: $381.3 billion

Expenditure: $420.4 billion (2011 est.)

Taxes and Other Revenues 45.4 % of GDP (2011 est.)

Budget Surplus(+) Or Deficit(-) -3.8% of GDP (2011 est.)

Public Debt.

64.4% of GDP (2011 est.)

62.7% of GDP (2010 est.)

Inflation Rate (Consumer Prices)

2.3% (2011 est.)

1.3% (2010 est.)

Central Bank Discount Rate 1.75% (31st December,2011)

1.75% (31st December,2010)

Commercial Bank Prime Lending

Rate

8.33% (31st December,2008)

9.21% (31st December,2007)

Rank: 93

Stock of Narrow Money $367.2 billion (31st December,2011)

$375.5 billion (31st December,2010)

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Stock of Broad Money $1.119 trillion (31st December,2011)

$1.088 trillion (31st December,2010)

Stock of Domestic Credit $2.083 trillion (31st December,2009)

$1.824 trillion (31st December,2008)

Market Value of Public Traded

Shares

$NA (31st December,2008)

$488.6 billion (2003)

Agriculture-Products Grains, Potatoes, Sugar beets, Fruits,

Vegetables; Livestock

Industries

Agro Industries, Metal and

Engineering Products, Electrical

Machinery and Equipment, Chemicals,

Petroleum, Construction,

Microelectronics, Fishing

Industrial Production Growth Rate -0.6% (2011 est.)

Electricity – Production 105.7 billion KWh (2009 est.)

Electricity – Production by Source

Fossil Fuel: 89.9%

Hydro: 0.1%

Nuclear: 4.3%

Other: 5.7% (2001)

Electricity-Consumption 112.5 billion KWh (2008 est.)

Electricity-Exports 10.56 billion KWh (2009 est.)

Electricity-Imports 4.888 billion KWh (2009 est.)

Oil-Production 59,490 bbl/day (2010 est.)

Oil-Consumption 1.009 million bbl/day (2010 est.)

Oil-Export 1.871 million bbl/day (2009 est.)

Oil-Import 2.577 million bbl/day (2009 est.)

Oil-Proves reserves 310 million bbl (1 January 2011 est.)

Natural Gas-Production 85.17 billion cu m (2010 est.)

Natural Gas-Consumption 53.19 billion cu m (2010 est.)

Natural Gas-Export 57.75 billion cu m (2010 est.)

Natural Gas-Import 25.77 billion cu m (2010 est.)

Natural Gas-Proved Reserved 1.387 trillion cu m (1 January 2011

est.)

Current Account Balance $64.1 billion (2011 est.)

$55.95 billion (2010 est.)

Exports $576.9 billion (2011 est.)

$486.7 billion (2010 est.)

Exports-Commodities Machinery and Equipment, Chemicals,

Fuels; Foodstuffs

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Exports Partners Germany 26%, Belgium 13%, France

9.2%, UK 7.7%, Italy 4.9% (2009)

Imports $514.1 billion (2011 est.)

$429.5 billion (2010 est.)

Imports-Commodities Machinery and Transport equipment,

Chemicals, Fuels, Foodstuffs, Clothing

Imports-Partners

Germany 15.5%,China 12.6%,

Belgium 8.3%, US 6.8%, UK 6.2%,

Russia 5.6% (2009)

Reserves of Foreign Exchange and

Gold

$46.24 billion (31st December, 2010

est.)

Debt-External $2.655 trillion (30th June,2011)

$3.733 trillion (31st December, 2010)

Sock of Direct Foreign Investment-

at Home

$590.3 billion (2011 est.)

$587.3 billion (2010 est.)

Sock of Direct Foreign Investment-

Abroad

$989.3 billion (31st December,2011)

$954.6 billion (31st December,2010)

Exchange Rates

Euros (EUR) per US dollar-

0.7345 (2007 est.)

0.7107 (2011 est.)

0.7532 (2010 est.)

0.7198 (2009 est.)

0.6827 (2008 est.)

Fiscal Year Calendar Year

Table 16

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History of India per Capita GDP

In 2009-10 the Per Capita Income in India was Rs 20,040.

In2011-12 the Per Capita Income in India was Rs 30,989.

GDP at factor cost at constant (1999-2000) prices in the year 2008-2009 is

likely to attain a level of Rs 3351653.India achieved a growth rate of 7.1 per

cent in 2008-2009.

Agriculture, forestry and fishing had a combined growth rate of 2.6 per cent

during

2010-2011

Industry had growth rate of 3.4 per cent during 2010-2011

Service sector had a growth rate of 10.3 per cent during 2010-2011

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SUGGESTION

&

CONCLUSION

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Suggestions

Encourage the employee to experiments with new methods and carry out creative ideas.

Enter the new high- tech technology of machines in organizations, for instant increate profit

project got plating thickness testing machines and also computer.

Ashwani metals have to increase some expenditure to promote their business at national and

international level.

To recruit the person based on their skills and knowledge of technology because ashwani

metals works in global market.

Last but not the least, selection of right supplier at the right time is also important for

company while dealing in global market because timely completion of consignment is also

acquire a vital role.

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Conclusion

In today’s time, the Brass products are produces almost all over the world. However this was

not the case in the past.

Ashwani Metals has achieved tremendous growth in the last four and a half year through the

total dedication and motivated work force.

It is emerging as a leading manufacturer and exporter of the Brass Extrusion products.

Ashwani Metals is a large scale unit and is a huge manufacturer of copper and copper alloy

extrusions. To identify wants and create customers the company has set up a marketing

department.

There would be great demand of this type of copper alloys in later years as people would like

to have this type of alloys in future so it would be greater opportunity for India.

Today, there are many countries at where the brass part factories have been started and also

working properly. For instance India, china, Usa, Uk, Malaysia, Singapore, etc. Out of all

these countries, the two major countries that are producing Brass part items are china and

India.

As of today, Netherland has a fast growing, strong and sound economy

1. With rapid growth rates and a young and increasing population ofover 70 million,

Netherland has the potential to be the largest economy inEurope after Germany and the

most populous if it should be acceptedinto the EU.

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Netherland has attractive country for a foreign investors with a business friendly regulatory

environment .they allow more and more foreign investors then they could have more foreign

income from their country. That’s why export is every easy to do in Netherland.

Nevertheless Netherland still has problems that need attention. Inflation is still prevalent, the

current account deficit is large, corruption is widespread, competitiveness is an issue, and

most problematic, unemployment is exceedingly high.

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LITERACY

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Meaning of Literacy

Literacy has traditionally been described as the ability to read for knowledge, write coherently

and think critically about printed material.

Literacy represents the lifelong, intellectual process of gaining meaning from print.

Key to all literacy is reading development, which involves a progression of skills that begins

with the ability to understand spoken words and decode written words, and culminates in the

deep understanding of text.

Reading development involves awareness of speech sounds (phonology), spelling patterns

(orthography), word meaning (semantics), grammar (syntax) and patterns of word formation

(morphology), all of which provide a necessary platform for reading fluency and

comprehension.

The United Nations Educational, Scientific and Cultural Organization (UNESCO) defines

literacy as the "ability to identify, understand, interpret, create, communicate and compute,

using printed and written materials associated with varying contexts.

Literacy involves a continuum of learning in enabling individuals to achieve their goals, to

develop their knowledge and potential, and to participate fully in their community and wider

society.

Year Literacy Rate

2008 91%

2009 93%

2010 95%

2011 96%

2012 99%

Table 17

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\

Comparing Related World Country Facts

Country Continent Literacy Rate Literacy Rate

Rank (out of 194

countries)

Mexico North

America

92% 85

Egypt Africa 66% 148

Malaysia Asia 91% 89

Netherland Asia 99% 26

India Asia 64% 180

Pakistan Asia 54% 163

Education levels in The Netherlands

A striking feature of the Dutch educational system is the multiformity. The biggest

difference between other countries might be that there are already several difficulty

levels in secondary school; there is no high school in The Netherlands, there are several

kinds of high schools. After primary school, children go to a secondary school that is

adapted on their performance and intelligence.

If you want to study in The Netherlands (as a foreigner) you can attend a 'universiteit'

aka 'WO' or a 'hogeschool' aka 'HBO'. According to most dictionaries, both institutions

mean 'college'. But why do the Dutch have two designations for college? And what is

MBO? Is it possible to attend an MBO study when you are an exchange student?

In this article the differences are explained.

Table 18

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LITERACY IN INDIA

Literacy in India is key for socio-economic progress and the Indian literacy rate grew

to 74.04% in 2011 from 12% at the end of British rule in 1947.

India currently has the largest illiterate population of any nation on earth, there is a

wide gender disparity in the literacy rate in India: effective literacy rates (age 7 and

above) in 2011 were 82.14% for men and 65.46% for women.

The low female literacy rate has had a dramatically negative impact on family planning

and population stabilization efforts in India.

The census provided a positive indication that growth in female literacy rates (11.8%)

was substantially faster than in male literacy rates (6.9%) in the 2001-2011 decadal

period, which means the gender gap appears to be narrowing.

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COMPARATIVE LITERACY STATISTICS

Although schooling is free and compulsory from 6–14 years of age, facilities are

inadequate and often totally lacking.

Approximately 40% of students, mostly girls, drop out by secondary school it is

estimated that by the year 2020 over 50% of the illiterate population will live in India.

The table below shows the adult and youth literacy rates for India and some

neighboring countries in 2002.Adult literacy rate is based on the 15+ year’s age group;

while Youth literacy rate is for the 15–24 years age group (i.e. youth is a subset of

adults).

Country name Adults literacy rate Youth literacy rate

China 93.3% (2007) 98.9% (2004)

Sri Lanka 90.8 (2007) 98.0

Burma 89.9% (2007) 94.4% (2004)

Iran 82.4% (2007) 95% (2002)

World Average 84% (1998) 88% (2001)

India 74.04% (2013) 82% (2001)

Nepal 56.5 (2007) 62.7

Pakistan 62.2 (2007) 73.9

Bangladesh 53.5 (2007) 74

Table 19

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Reason for Low Literacy Rate

The absence of adequate school infrastructure.

The study of 188 government-run primary schools in central and northern India revealed that

59% of the schools had no drinking water facility and 89% no toilets.

A 25% rate of teachers being absent from school on any particular day in 2005.

A 25% rate of teachers being absent from school on any particular day in 2005.

The average Pupil Teacher Ratio for All India is 1:42, implying teacher shortage

The National Sample Survey Organization and the National Family Health Survey collected

data in India on the percentage of children completing primary school which are reported to

be only 36.8% and 37.7% respectively.

On 21 February, 2005, the Prime Minister of India said that he was pained to note that “only

47 out of 100 children enrolled in class I reach class VIII, putting the dropout rate at 52.79

per cent.”

Absolute poverty in India has also deterred the pursuit of formal education as education is not

deemed of as the highest priority among the poor as compared to other basic necessities.

The large proportion of illiterate females is another reason for low literacy in India.

Inequality based on gender differences resulted in female literacy rates being lower at 54.2%

than that of their male counterparts at 75.8%.

Due to strong stereotyping of female and male roles, Sons are thought of to be more useful

and hence are educated. Females are pulled to help out on agricultural farms at home as they

are increasingly replacing the males on such activities which require no formal education.

Fewer than 2% of girls who engaged in agriculture work attended school.

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APPENDIX

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Sr. No. Particular Page No.

1 Table -1 3

2 Table -2 8

3 Table-3 15

4 Table-4 48

5 Table-5 49

6 Table-6 63

7 Table-7 64

8 Table-8 80

9 Table-9 81

10 Table-10 82

11 Table-11 83

12 Table-12 83

13 Table-13 96

14 Table-14 108

15 Table-15 110

16 Table-16 124

17 Table- 17 131

18 Table-18 132

19 Table-19 134

List of Tables