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GLOBAL / COUNTRY STUDY AND REPORT
ON
“REPORT ON GREECE”
Submitted to
INDU MANEGMENT INSTITUTE, BARODA
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ASMINISTRATION
In
Gujarat Technological University
UNDER THE GUIDANCE OF
Faculty Guide
Dr. Manish Vyas
Submitted by
Batch : 2010-12
[ Snehal Panchal (2009) ,Gautam Thumar (2026),
Gunvant Patel (2043) ,
Divyesh Joshi (2059), Chetan Makwana (2078), Apurva Patel (2095) ]
MBA SEMESTER III/IV
INDU MANEGMENT INSTITUTE, BARODA
MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmadabad
2010-2012
Page 1
Student’s Declaration
We, _______________________________________, hereby declare that the report
for Global Country Study Report entitled “_________________________________
in Greece is a result of our own and our indebtedness to other work publications,
references, if any, have been duly acknowledged.
Place: ……………………..
Date: ………………………
Signature
Page 2
Institute’s Certificate
Page 3
Executive Summary
Each country profile is designed to give a summary of that country, its economy and economic profile. It provides economic indicators, data and statistics, as well as analyses of its history, GDP, GDP growth, GDP per capita, prospects, sectors and international trading relations, imports & exports. We have more in depth sections for the larger economies.
Country population figures are derived from various sources including estimates from national governments, the World Bank, the IMF, and the CIA. Census figures are therefore supplemented by data on births, deaths, immigration, emigration, school intakes, tax payers and any other data sources a government can draw on to estimate its population.
Global Market Directs Motor Oil Hellas S.A. Refining Operation Assets Summary Report is an essential source for company data and information. The report examines company Motor Oil Hellas S.A.’s key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy. It provides a unique insight into the company’s major Refineries.
This report covers the global refining market with information on historical and forecast capacities of refineries by country and leading companies to 2012. The report provides an in-depth analysis of refinery product types and application, operating environment based on existing government regulations and future demand trends. The report also provides analysis of trends, drivers, and challenges to the refining industry in Asia- Pacific, Europe, Middle East and Africa, North America, South and Central America. The leading players in global refining and their investment opportunities and challenges are also examined. The company analysis includes survival strategies and factors that will differentiate leading refining companies from others to 2012.
Each country evolves a taxation approach to bring in revenues for the government to spend on public services. Country tax regimes are often complex affairs that include income tax, corporate tax, property tax, fuel tax, Value Added Tax (VAT) or Goods & Services Tax (GST), capital gains tax, estate or inheritance tax, and local, regional or state taxes.
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PRAFACE
The Global Country Report is an integral part of the MBA program and it is designed in such a way that student can give maximum knowledge and can get exposure to the global world in minimum time.
With the respect and pleasure, we have privilege to submit our report to the kind hands of eminent examination of the Indu Management Institute. MBA is a professional course, to be an MBA student is a matter of pride because through MBA each student is prepared to hold the post of manager very confidently and we are in field which helps us to develop from normal human being into a disciplined and dedicated professional.
We have heard that famous saying “God helps those who helps them salves“ and “Experience is the best teacher “the global country report on “GREECE” has given us sufficient knowledge to fill the gap between the theoretical and practical knowledge.
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ACKNOWLEDGEMENT
Every work that one completes successfully stands on the constant encouragement, good will and support of the people around. I, hereby, avail this opportunity to express my heartfelt gratitude to a number of people who extended their valuable time, full support in developing this project.
We convey our heartfelt gratitude to our college “Indu Management Institute” under Gujarat Technological University for giving us this precious opportunity to work for the real-time project.
We also forward our special thanks faculty member & project guide Dr. Manish Vyas from Indu Management Institute for guiding us in this report. The valuable suggestion of the faculty member during the course of our Project work gives me the inspiration to achieve our goal. The shape that project has been taken is due to judicious guideline, encouragement & help of our guide.
We own the success of the project to my Project Guide, Dr. Manish Vyas, who was a tremendous supporter and an eager teacher, for providing excellent guidance for this project. He is one of the major sources behind the success of the project.
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TABLE OF CONTENTS
NO CONTENTS PAGE
NO.
SEMESTER
1. ECONOMIC OVERVIEW OF THE SELECTED
COUNTRY
Demographic Profile of the Country
Economic Overview of the Country
Overview of Industries Trade and Commerce
Overview Different economic sectors of
selected country
Overviews of Business and Trade at
International Level
Present Trade Relations and Business
Volume of different products with india
9 to 29 III
2. Introduction of the Motor oil Hellas and its role
in the economy of Greece
Structure , Functions and Business Activities
of retail sector
30 to 49 IV
3. Comparative Position of Motor Oil Hellas
products in Greece with India and Gujarat
Present Position and Trend of
Business( import / export )with India / Gujarat
50 to 68 IV
4. Policies and Norms of Greece for Oil sector
for import / export including licensing /
permission, taxation etc.
Policies and Norms of India for Import or
export to the Greece including licensing /
permission. Taxation etc.
69 to 83 IV
5. Business Opportunities in future
Conclusion and Suggestions
84 to 96 IV
6. Bibliography 97 to 98
Page 7
LIST OF TABLES/GRAPHS/DIAGRAMS
SR. NO. PARTICULARS TABLE NOS. PAGE NOS.
1. Diagram 1 36
2. Diagram 2 38
3. Table 1 52 to 57
4. Table 2 59 to 60
5. Table 3 87
6. Table 4 88
7. Table 5 90
8. Graph 1 60
9. Graph 2 61
10. Graph 3 62
11. Graph 4 63
12. Graph 5 84
13. Graph 6 85
Page 8
PART – I
ECONOMIC
OVERVIEW OF THE
SELECTED
COUNTRY
PART – I ECONOMIC OVERVIEW OF THE SELECTED COUNTRY
Page 9
1. Demographic Profile of the Country Greece
Age structure:
0-14 years: 14.2% (male 787,143/female 741,356)
15-64 years: 66.2% (male 3,555,447/female 3,567,383)
65 years and over: 19.6% (male 923,177/female 1,185,630) (2011 est.)
Definition: This entry provides the distribution of the population according to
age. Information is included by sex and age group (0-14 years, 15-64 years,
65 years and over). The age structure of a population affects a nation's key
socioeconomic issues.
Birth rate:
Birth rate: 9.21 births/1,000 population (2011 est.)
Definition: This entry gives the average annual number of births during a
year per 1,000 persons in the population at midyear; also known as crude
birth rate. The birth rate is usually the dominant factor in determining the rate
of population growth. It depends on both the level of fertility and the age
structure of the population.
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Greece 9.82 9.83 9.82 9.79 9.73 9.72 9.68 9.62 9.54 9.45 9.34 9.21
Death rate:
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Death rate: 10.7 deaths/1,000 population (July 2011 est.)
Definition: This entry gives the average annual number of deaths during a
year per 1,000 populations at midyear; also known as crude death rate. The
death rate, while only a rough indicator of the mortality situation in a country,
accurately indicates the current mortality impact on population growth. This
indicator is significantly affected by age distribution, and most countries will
eventually show a rise in the overall death rate, in spite of continued decline in
mortality at all ages, as declining fertility results in an aging population.
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Greece 9.64 9.73 9.79 9.86 10.08 10.15 10.24 10.33 10.42 10.51 10.6 10.7
Infant mortality rate :
Total: 5 deaths/1,000 live births
male: 5.49 deaths/1,000 live births
female: 4.48 deaths/1,000 live births (2011 est.)
Definition: This entry gives the number of deaths of infants under one year
old in a given year per 1,000 live births in the same year; included is the total
death rate, and deaths by sex, male and female. This rate is often used as an
indicator of the level of health in a country.
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Greece 6.51 6.38 6.25 6.12 5.63 5.53 5.43 5.34 5.25 5.16 5.08 5
Life expectancy at birth:
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Total population: 79.92 years
male: 77.36 years
female: 82.65 years (2011 est.)
Definition: This entry contains the average number of years to be lived by a
group of people born in the same year, if mortality at each age remains
constant in the future. The entry includes total population as well as the male
and female components
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Greece 78.44 78.59 78.74 78.89 78.94 79.09 79.24 79.38 79.52 79.66 79.8 79.92
Literacy:
Definition: age 15 and over can read and write
total population: 96%
male: 97.8%
female: 94.2% (2001 census)
Definition: This entry includes a definition of literacy and Census Bureau
percentages for the total population, males, and females. There are no
universal definitions and standards of literacy. Unless otherwise specified, all
rates are based on the most common definition - the ability to read and write
at a specified age.
Country 1991 1999 2001 2003
Greece 95 97 96 97.5
Nationality:
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Noun: Greek(s)
adjective: Greek
Definition: This entry provides the identifying terms for citizens - noun and
adjective.
Ethnic groups:
Ethnic groups: population: Greek 93%, other (foreign citizens) 7% (2001
census)
Definition: This entry provides an ordered listing of ethnic groups starting
with the largest and normally includes the percent of total population.
Religions:
Religions: Greek Orthodox (official) 98%, Muslim 1.3%, other 0.7%
Definition: This entry is an ordered listing of religions by adherents starting
with the largest group and sometimes includes the percent of total population.
Languages:
Languages: Greek (official) 99%, other (includes English and French) 1%
Definition: This entry provides a rank ordering of languages starting with the
largest and sometimes includes the percent of total population speaking that
language.
Net migration rate:
Page 13
Net migration rate: 2.32 migrant(s)/1,000 populations (2011 est.)
Definition: This entry includes the figure for the difference between the
number of persons entering and leaving a country during the year per 1,000
persons (based on midyear population).
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Greece 1.97 1.96 1.96 1.96 2.35 2.34 2.34 2.34 2.33 2.33 2.33 2.32
Population: 10,760,136 (July 2011 est.)
Definition: This entry gives an estimate from the US Bureau of the Census
based on statistics from population censuses, vital statistics registration
systems, or sample surveys pertaining to the recent past and on assumptions
about future trends. The total population presents one overall measure of the
potential impact of the country on the world and within its region.
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Greece
10,6
01,5
30
10,62
3,840
10,64
5,340
10,66
5,990
10,64
7,530
10,66
8,350
10,68
8,060
10,70
6,290
10,72
2,820
10,737,
430
10,749,
940
10,760,
140
School life expectancy (primary to tertiary education):
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total: 17 years
male: 16 years
female: 17 years (2007)
Definition: School life expectancy (SLE) is the total number of years of
schooling (primary to tertiary) that a child can expect to receive, assuming that
the probability of his or her being enrolled in school at any particular future
age is equal to the current enrollment ratio at that age. Caution must be
maintained when utilizing this indicator in international comparisons. For
example, a year or grade completed in one country is not necessarily the
same in terms of educational content or quality as a year or grade completed
in another country. SLE represents the expected number of years of schooling
that will be completed; including years spent repeating one or more grades.
Total fertility rate:
Total fertility rate: 1.38 children born/woman (2011 est.)
Definition: This entry gives a figure for the average number of children that
would be born per woman if all women lived to the end of their childbearing
years and bore children according to a given fertility rate at each age.
Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Greece 1.33 1.33 1.34 1.35 1.32 1.33 1.34 1.35 1.36 1.37 1.37 1.38
2. ECONOMY OVERVIEW OF GREECE
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The economy of Greece is the 32nd largest in the world by nominal gross
domestic product (GDP) and the 37th largest at purchasing power parity
(PPP), according to data by the World Bank for the year 2010.
The service sector contributes 78.8% of GDP, industry 17.9%, and agriculture
3.3%. The public sector accounts for about 40% of total economic output.
Strengths and weaknesses
Greece enjoys a high standard of living and "very high" Human Development
Index, ranking 29th in the world in 2011
Greece's main industries are
tourism,
shipping,
industrial products,
food and tobacco processing,
textiles,
chemicals,
metal products,
mining and petroleum.
the Greek economy also faces significant problems, including rapidly rising
unemployment levels, an inefficient public sector bureaucracy, tax evasion,
corruption and low global competitiveness.
After 15 consecutive years of economic growth, Greece went into recession
in 2009. An indication of the trend of over-lending in recent years is the fact
that the ratio of loans to savings exceeded 100% during the first half of the
year.
By the end of 2009, the Greek economy (based on data revised on 15
November 2010 in part due to reclassification of expenses) faced the highest
budget deficit and government debt to GDP ratios in the EU. The 2009 budget
deficit stood at 15.4% of GDP. This, and rising debt levels (127% of GDP in
Page 16
2009) led to rising borrowing costs, resulting in a severe economic crisis.
Greece was accused of trying to cover up the extent of its massive budget
deficit in the wake of the global financial crisis. This resulted from the massive
revision of the 2009 budget deficit forecast by the new Socialist government
elected in October 2009, from "6–8%" (estimated by the previous
government) to 12.7% (later revised to 15.4%).
Between 2008 and 2011 unemployment skyrocketed, from a generational low
of 7.2% in the second and third quarters of 2008 to a high of 16.6% in May
2011, leaving more than 820,000 unemployed. In the final quarter of 2010,
youth unemployment reached 36.1%.
National and regional GDP
In terms of GDP per capita, the South Aegean ranks first (€28,300), followed by
Attica (€28,200) and Central Greece (€25,100). East Macedonia and Thrace
(€16,600) and West Greece (€18,200) have the lowest values. Greece's
average GDP per capita in 2008 was €23,100, below the EU average of
€25,000.
Welfare state
Greece is a welfare state which provides a number of social services such as
universal health care and pensions. In the 2012 budget, expenses for the
welfare state (excluding education) stand at an estimated €22.487 billion
(€6.577 billion for pensions and €15.910 billion for social security and health
care expenses), or 31.9% of the all state expenses.
Cyrrancy
Prior to the adoption of the Euro, the majority of Greek people had a positive
view of the new currency (64%).In February and June 2005 however this
number fell considerably, to only 26% and 20% respectively. Since 2010 the
number has risen again, and a survey in September 2011 showed that 63% of
Greeks had a positive view of the Euro.
Page 17
3. OVERVIEW OF INDUSTRIES TRADE AND COMMERCE OF
GREECE
Greece Trade: Exports and Imports
Greece has been a traditional exporter of food, beverages and textiles. It has
most of its trading partners located in the EU with the only notable external
trade partner being USA.
Greece mainly exports the following commodities:
Food and beverages
Manufactured goods
Petroleum products
Chemicals
Textiles
Major export partners are:
ITALY, GERMANY, BULGARIA, CYPRUS, US, UK, ROMANIA
The excessive amount of imports has always been a cause of worry for
Greece economy. Even though imports decreased during recession, the
volume remained a lot higher than exports
In 2009, the imports volume was $61.47 billion. At the same time previous
year, the volume had been $93.91 billion. In terms of imports volume, the
country ranked 37th in the world.
The following countries have been regular import partners of Greece:
Germany 12.1%
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Italy 11.7%
Russia 7.4%
China 5.6%
France 5.1%
Greece Commerce
Chamber of Commerce and Industry of Berat is also trying to realize one of its
obligations toward its members, that is, representation and promotion of their
businesses, as well as promotion of economical development of Beret.
The services offered by the Chamber are:
Represents business interests,
Represents the business as social partner,
Intends to be included as potential partner in E.U. programs for S.M.E.s,
Compiles informative platforms and for changes of laws,
Creates access to its members for new trades,
Organizes workshops, seminars and trainings,
Organizes fairs and exhibitions,
Helps with trade information about home and foreign trades,
Helps for assuring businessmen movement in fairs in Albania and abroad,
respecting the procedures,
Issues Notes for Embassies,
Provide consulting for businesses, offering the expert groups of the
Chamber,
Issues the Certificate of Origin, as a indispensable document for exporting
goods,
Issues to its members the Membership certificate, a document considered
by institutions and by Embassies, facilitating the procedures of visa
equipping, Collaborates with Local and Central Government for protecting
business interests.
4 . Overview of different sector of Greece economy
Page 19
Agriculture and fishery
Olive trees in Thasos, Greece.
Agricultural product includes wheat, corn, barley, sugar beets, olives, tomatoes,
wine, tobacco, potatoes; beef, dairy products etc.
In 2010, Greece was the European Union's largest producer of cotton (183.8
thousand tons) and ranked second in the production of rice (229.5 thousand tons)
and olives (147.5 thousand tons), third in the production of figs (11 thousand
tons), tomatoes (1.4 million tons) and water melons (578.4 thousand tons) and
fourth in the production of tobacco (22 thousand tons). Agriculture contributes
3.3% of the country's GDP and employs 12% of the country's labor force.
Maritime industry
Piraeus is the largest container port in Greece and one of the largest in the
Mediterranean Sea.
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Greece is also ranked in the top 5 country merchant fleets by number of ships.
In the same 2010 United Nations report, the Greek merchant navy came fourth
with 3,150 ships, after Japan, China and Germany. There is a significant gap
between Greece and Russia, which came fifth with 1,987 ships. A European
Community Ship owners' Association report for 2010-2011 reveals that the
Greek flag is the fifth-most-used internationally for shipping, while it ranks first in
the EU
Telecommunications
Between 1949 and the 1980s, telephone communications in Greece were a
state monopoly by the Hellenic Telecommunications Organization. Despite
the liberalization of telephone communications in the country in the 1980s,
HTO still dominates the Greek market in its field and has emerged as one of
the largest telecommunications companies in South-eastern Europe. Since
2011, the majority share holder at HTO is Deutsche Telekom, with 40%, while
the Greek state has 10% of the company's shares. HTO owns a total of 13
subsidiaries in four countries across the Balkans, including Greece's top
mobile telecommunications provider,
Other mobile telecommunications companies active in Greece are Wind
Hellas and Vodafone Greece. The total number of active cellular phone
accounts in the country in 2009 based on statistics from the country's mobile
phone providers was over 20 million. Additionally, there are 5.93 million active
landlines in the country.
Tourism
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The ministry responsible for tourism is the Ministry of Culture and Tourism,
while Greece also owns the Greek National Tourism Organization which aims
in promoting tourism in Greece.
In recent years a number of well-known tourism-related organizations have
placed Greek destinations in the top of their lists. In 2009 Lonely Planet
ranked Thessaloniki, the country's second-largest city, the world's fifth best
"Ultimate Party Town", alongside cities such as Montreal and Dubai, while in
2011 the island of Santorin was voted as the best island in the world by Travel
+ Leisure. The neighboring island of Mykonos was ranked as the 5th best
island in Europe's
Transport
As of 2010, Greece has a total of 81 airports, of which 67 are Paved and six
have runways longer than 3,047 meters. Of these airports, two are classified
as "international" by the Hellenic Civil Aviation Authority, but 15 offer
international services. Additionally Greece has 9 heliports.
Greece does not have a flag carrier, but the country's airline industry is
dominated by Olympic Air, the largest airline by number of destinations
served, and Aegean Airlines, the largest airline by number of passengers
carried.
in 2009 and 2011 Aegean Airlines was awarded the "Best regional airline in
Europe" award by Skirted, and also has two gold and one silver awards by the
ERA, while Olympic Air holds one silver ERA award for "Airline of the Year" as
well as a "Condé Nast Traveler 2011 Readers Choice Awards: Top Domestic
Airline" award.
Energy
Page 22
Energy production in Greece is dominated by the Public Power Corporation.
In 2009 DEI supplied for 85.6% of all energy demand in Greece, while the
number fell to 77.3% in 2010. Almost half (48%) of DEI's power output is
generated using lignite, a drop from the 51.6% in 2009. Another 12% comes
from Hydroelectric power plants and another 20% from natural gas. Between
2009 and 2010, independent companies' energy production increased by
68%, from 2,709 Gigawatt hour in 2009 to 4,232 GWH in 2010.
Food Industry
The food and drink sector of Greece has a very important role in the Greek
economy and the Greek manufacturing industry generally. This sector
represents about 21% of Greek manufacturing industry, includes more
than1,300 enterprises and creates 70,000 jobs. In particular, according to the
national accounts, this sector has high potential for improvement provided that
it can be reorganized soon. Greek industry is composed of 23 sectors and the
most important of them is the food and drink sector.
5. Overview Of Business and Trade at International level
Page 23
We are in the midst of a great transition from narrow nationalism to international
partnership.
The rise of global business .
Major world marketplaces and U.S. trading partners.
The world economy is becoming a single, interdependent system :
Export: Domestic product sold abroad
Import: Foreign product sold domestically
Categorizing Economies:
High Income Countries: Per capita income greater than $9,386
Middle Income Countries: Per capita income between $765 and $9,386
Low Income Countries: Per capita income of less than $765
Major World Marketplaces:
North America, Europe, Pacific Asia
Competitive Advantage:
Factor conditions, Demand conditions, Related and supporting industries,
Strategies, structures, and rivalries.
Levels of International Involvement:
Importer & Exporter
International Firms
Multinational Firms
Present trade relation and business volume of different product
with india
Page 24
European Union is the world’s leading trade power today. The European Union is
specially committed to supporting developing countries' efforts to integrate into the
trading system and to help them reap the benefits of market opening, giving them a
hand where needed. EU is a major trading partner of India.
The European Union aims at free but fair world trade. This refers to a system where
all countries are given opportunities to trade freely with one another on equal terms
and without protectionist barriers. Thus, the EU is in favour of a ‘level playing field’
for all countries and clear ‘rules of the game’ for everyone to follow. To achieve this,
the EU’s strategy is to open up its own market while others do likewise. It seeks to
remove obstacles to trade gradually and at a pace, which the EU and others can
sustain, to settle disputes peacefully and to build up a body of internationally agreed
rules.
The India exports six goods, namely, Agriculture, Fishing & Forestry, Chemicals,
Textile, Non-metallic minerals, Metal products and Other Services- all of which it
produces. Though it produces Other Services, but given the scope for free trade with
India and EU, it chooses to import it from its neighbour India.
INDIA-EU TRADE RELATIONS:
Traditionally, India had a multi-dimensional relationship with the EU, which is our
largest trading partner, the biggest source of our foreign direct investment, a major
supplier of our developmental aid, an important source of technology.
.
India’s strength lies in traditional exports like textiles, agriculture and marine
products, gems and jewellery, leather and engineering and electronic products.
Sectors like chemicals, carpets, granites and electronics have exhibited the fastest
growth in the last five years. Indian exports from Europe, on the other hand,
comprises mainly gems and jewellery , engineering goods, chemicals and minerals.
Page 25
6. PESTEL Analysis of Greece
POLITICAL
The conservative New Democracy (ND),
The Pan-Hellenic Socialist Movement (PASOK),
The Communist Party of Greece (KKE);
The Coalition of the Left and Progress (Synaspismos),
Government Stability
Government flexible.
Election held in every 5 years.
political power as directed by the Constitution
Greece has a modern constitution first written in June 1975.
This document has been amended twice; once in1988 and again in2001.
It allows a high level of freedom to its citizens and guarantees civil liberties.
ECONOMIC
Growth rate 0.20 percent in the first quarter of 2011
2.80 percent in December of 2010 The inflation rate in Greece was last
reported at 2.9 percent in November of 2011.
The Euro Area benchmark interest rate stands at 1.00 percent.
The unemployment rate in Greece was last reported at 17.5 percent in
September of 2011.
Disposable income rate 3.5%.
SOCIAL-CULTURAL
Education system that took place in 1964 the years of compulsory education
were six; i.e., only primary education was compulsory. After that reform they
Page 26
rose to nine.making Primary as well as lower secondary education
compulsory. Health
In 2007, Greece ranked 15th for life expectancy among OECD(The
Organisation for Economic Co-operation and Development ) countries and
was registered above the OECD average .A Person born in Greece in 2008
can expect to live 80.1 years on average. Women Continue to have higher life
expectancy than men, with 82.5 years compared to 77.8 years for men.
Attitude
Although the (Russo-Turkish) war has so far been conducted with signal
ability by the American press though perhaps at a rather heavier loss of life on
the part of the Russians than was absolutely necessary it is remarkable that
so little attention has been paid to the attitude of Greece
Greek lifestyle
The Greek way of life is based around the family, church and patriotism.
They are proudly patriotic, this is due to the trials and tribulations of
successive rulers, invasions and wars, though this sometimes leads to
suspicion of other nationalities, considering their history it is not surprising that
some of the people feel this way, but patriotism, should not be confused with
racial discrimination
Technological
Impact of internet and reduced communication cost
Reduce business travel cost by replacing it with Voice/Video Conferencing
and Web Collaboration
Reduce costs on Telephone and Audio Conferencing by using built-in Voice-
over Internet Protocol (VoIP)
Page 27
Reduce communications systems cost by replacing 3rd Party IM and
Voice/Video/Web Conferencing systems with interacts Integrated
Communication Suite
Manage users through Legacy systems with API integration
Impact of technology transfer
In Greece, most regions don’t have significant innovation and technology
Transfer activities.
This specifically pertains to Southern Aegean, Northern Aegean, Ionian
Islands, Eastern Macedonia and Western Greece.
In some of these regions however, technology transfer activities are taking
place due to Participation in the EPET programme. In Epirus and Crete,
activities in the area of innovation and technology transfer are slowly
emerging, with varying Success. Particularly in Crete, activities seem to be
rather ineffective.
ENVIRONMENT
LEGAL
Constitution, Government & Legislation
The 1975 constitution, which describes Greece as a "presidential parliamentary
republic," includes extensive specific guarantees of civil liberties and vests the
powers of the head of state in a president elected by parliament and advised by the
Council of the Republic.
Page 28
Legal Profession
A Greek law graduate is required to work as an apprentice in a law firm or
in an attorney's office for a period of 18 months before taking the bar exam.
Law Schools
There are three law schools in Greece: the Kapodistrian University of
Athens Faculty of Law, the Faculty of Law of the Aristotle University of
Thessaloniki School of Law & Economics, and the Faculty of Law of the
Democritus University of Thrace.
Page 29
PART – II INDUSTRY /
SECTOR / COMPANY
SPECIFIC STUDY
PART – II INDUSTRY / SECTOR / COMPANY SPECIFIC STUDY
Page 30
Introduction of company
Page 31
Page 32
Motor Oil Hellas (MOH) is committed to being a leader In the petroleum refining
business , it providing the region that it serves with a reliable supply of energy .its
Page 33
evolution MOH is now considered as one of the major contributors to the domestic
economy and a key market player in the region.
MOH’S management system , Environment and Quality is certified according to ISO
9001:2008 for the production & delivery of fuels, lubricants , waxes and oils and
according to ISO 14001:2004 regarding environmental management system.
MOH is the only refinery in Greece , which has been certified with both certifications.
MOH is totally committed to continuous quality improvement. The refinery with its
ancillary plants and offsite facilities forms the largest privately held industrial complex
in Greece and it is considered as one of the most modern refineries in Europe.
It can process crude oils of various characteristics and produce a full range of
petroleum products, complying with the most stringent international specifications,
serving major pertroleum marketing companies in Greece and abroad.
MOH is the only Lubricants producer and packager in Greece. Base oils and finished
lubricants produced, are approved by International Organizations, ACEA, API, the
US NAVY & ARMY.
The extraordinary success that MOH has achieved can be largely attributed to its
Personnel. At MOH we strive to develop our people to their highest potential, through
continuous education and assignment of challenging projects.
The main milestones in the company’s history are :
1970-1972 Foundation and beginning of operation of the refinery comprised of a
crude oil refining unit, a basic lubricant production unit, a jetty with loading terminal,
and truck loading terminals.
1975 Entrance to fuel production with the addition of the Atmospheric Distillation
Unit.
1978 Construction of the Catalytic Reforming Unit (further downstream processing of
naphtha).
Page 34
1980 Installation of the Catalytic Cracking Unit (further downstream processing
of fuel oil to turn it into high value-added products).
1984 Construction of an Electric Power Production Unit that uses gaseous fuel as
raw material. Right to sell energy to the domestic market.
1993 ISO 9002 accreditation for the entire spectrum of activities of the Company.
1996 Purchase of 50% of the Company’s shares by Aramco Overseas Company BV,
100% subsidiary of Saudi Arabian Oil Company(Saudi Aramco). Relocation of
Company Headquarters to a modern building in Marousi, Attica.
2000 Completion of investment projects aiming at the production of products in
harmonization to European Union specifications for 2000. During the same year the
Environmental Protection System of the Company is ISO 14001:1996 accredited .
2001 Installation of a new gas turbine in the electric power station. Upgrading of the
lubricants’ vacuum unit. Company share capital increase through public offer of
shares and listing on the Athens Exchange.
2002 Acquisition of 100% of AVIN OIL which engages in fuel trading in the domestic
market
2003 ISO 9001:2000 accreditation for the Quality regarding the whole spectrum of
Company activities.
2004 Recertification of the Environmental Protection System of the Company
according to the ISO 14001:2000 with validity until 2007.
2005 Commencement of operation of the Hydrocracking Complex which enables the
production of the new clean fuels according to the specifications of the European
Union of 2009 (Auto Oil II). Acquisition of the stake of Aramco Overseas Company
B.V. in the Company by Motor Oil Holdings S.A.
Page 35
2006 Accreditation by the National Accreditation Body (ESYD) of the Chemical
Laboratory of the Refinery according to the ISO / IEC 17025:2005 with validity until
September 2010.
2007 Recertification of the Environmental Management System of the Company
according to the ISO 14001:2004 with validity until 2010. Issuance of the first
voluntary Environmental Statement according to the European Regulation 761/2006
EMAS (Eco-Management and Audit Scheme) certified by Bureau Veritas.
2008 Joint Venture Agreement with MYTILINEOS HOLDINGS S.A. to cooperate
through the company KORINTHOS POWER S.A. for the construction, operation and
utilization of a combined cycle power production plant fuelled with natural gas which
will be located within the facilities of MOTOR OIL at Agii Theodori of Korinthos.
Certification of the Health and Safety Management of the Refinery according to the
international standard OHSAS 18001:2007 with validity until 2011.
2009 Recertification of the Quality Management System of the Company
according to the new version of the Standard ISO 9001:2008 with validity until 2012.
Acquisition of 64.06% of the share capital of “OFC AVIATION FUEL
SERVICES S.A.” as a result of which the MOTOR OIL Group participation to OFC
S.A. increased to 92.06%.
2010 Commencement of operation of the new Crude Distillation Unit (new CDU) of
60,000 barrels per day crude distillation capacity. Completion of the acquisition of
100% of the shares of the companies “SHELL HELLAS S.A.” (renamed to “Coral
S.A.”) and “SHELL GAS Α.Ε.Β.Ε.Y” (renamed to “Coral Gas A.E.B.E.Y.”).
MOTOR OIL HELLAS proceeded with a presentation regarding its activities and key
financial results for the period 1/1/2010 – 30/9 /2010 as well as its corporate
objectives and developments strategy.During the current fiscal year the Company
demonstrated notable activity as regards completion of investment projects and
acquisition deals, therefore, laying the foundations for a further dynamic growth of
the MOTOR OIL Group endeavors.
Page 36
The new crude Distillation Unit of a processing capacity of 60,000 barrels per day
commenced its operation in may. The cost for the construction of the new CDU
reached EUR 180 million and, following its installation, the Refinery’s crude
distillation capacity increased by 50% while the Refinery total production capacity
increased to 9 million metric tons per annum.
DIAGRAM -1
Page 37
During the first 9 months of 2010, MOTOR OIL continued selling its products in the 3
main markets: Domestic – Export – Bunkering through a strong sales network and
long-term relationships with its clients. During the third quarter the parent Company
key economic figures improved on the back of the increase of the Refinery
production capacity, which, combined with the acquisition of the “SHELL” retail
network and the exporting orientation of the Company secured an overall sales
volume increase.
The volume of sales in the third quarter 2010 totalled 2.5 million metric tons
compared to 2.3 million metric tons in the third quarter of 2009.
The Gross Profits amounted to EUR 70.4 million compared to EUR 65.4 million.
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) reached
EUR 63.9 million compared to EUR 40.0 million.
Earnings before Tax (EBT) amounted to EUR 38.4 million compared to EUR 24.0
million.
The respective key economic figures for the nine month period 2010 denote a
satisfactory course.
The turnover of the parent Company in the nine month period of 2010 amounted to
EUR 3,420 million compared to EUR 2,509 million in the respective period of 2009.
The volume of sales in the nine month period of 2010 totalled 6.92 million metric tons
compared to 7.13 million metric tons in the nine month period of 2009.
The Gross Profits of the parent Company in the nine months of 2010 amounted to
EUR 269.5 million compared to EUR 270.7 million in the nine months of 2009.
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for the nine
month period of 2010 reached EUR 144.6 million compared to EUR 187.7 million in
the nine month period of 2009.
Earnings before Tax (EBT) amounted to EUR 84.5 million in the nine months of 2010
compared to EUR 139.2 million in the nine months of 2009.
Page 38
MANAGEMENT STRUCTURE:
Page 39
DIAGRAM-2
Board of Directors:
Name Board Position Member Identity*
1. Vardis J. Vardinoyannis Chairman and
Managing Director
Executive
2. John V. Vardinoyannis Vice Chairman Executive
3. John Kosmadakis Deputy Managing
Director
Executive
4. Petros Tzannetakis Deputy Managing
Director
Executive
5. Demosthenes N. Vardinoyannis Member Non-executive
6. Nikos Th. Vardinoyannis Member Non-executive
7. George Alexandridis Member Non-executive
8. Theofanis Voutsaras Member Εxecutive
9. Michael Stiakakis Member Executive
10.Konstantinos Maraveas Member Non-executive/independent
11.Antonios Theoharis Member Non-executive/independent
VISIONS & MISSION:
Vision:-
To be the pre-eminent Refining and Marketing Oil Products Trading Company
in the Region.
Mission:-
To increase stakeholder’s value through employing effective refining
technology , sales , and marketing practices to serve the needs of the needs
of our customers, while increasing domestic market share.
Page 40
To conduct ourselves with integrity, speed, and flexibility when dealing with
Employees, Customers, Suppliers and the Community, without compromising
our high level of environmental awareness and safety standards.
FUNCTIONS OF MOH:
Motor Oil is a founding member of the Hellenic Network for Corporate Social
Responsibility and as a responsible and active corporate citizen strives to
ensure that its activities have a positive and productive impact on the social
environment in which it functions.
Placing particular emphasis on the community in its threefold “economy-
environment-community” involvement, it recognizes the value of fulfilling its
civic role, with the aim of contributing to economic growth and promoting
communal and cultural life in the area where the refinery is located, as well as
in society as a whole. This contribution is consistently based on the long time
tradition and corporate aims and values of MOTOR OIL, and is manifested
with multiple activities.
CONTRIBUTION TO LOCAL COMMUNITIES:
MOTOR OIL actively and regularly contributes to social, cultural and athletic
activities of its neighboring communities. Its relations with local communities
though creative dialogue , so as to utilize synergies, leading to more tangible
results than merely meeting social needs.
It offers:-
Support for social solidarity prohects
Financial support for the organization of cultural and social
Financial support for the organization of sports events
financial aid to various associations in the area
Page 41
assistance in the development of the local workforce through educational and
cultural initiatives
financial aid for local infrastructure projects which have a social impact.
examples of such local initiatives include:
- The annual donations to the “Mikis Theodorakis” orchestra for presenting a
concert at the open-air theatre of Examilia in Corinth.
- The annual donations of medical equipment to the Corinth General Hospital,
essential in providing specialized treatments.
- The 2004 financial aid to the Aghioi Theodoroi Municipal Development
Enterprise, for the repair of extensive damage to the Municipality’s water
supply system, caused by extreme weather conditions.
SOCIAL CONTRIBUTION:
organizing educational refinery visits for students
supporting education and the sciences , literature and the arts
providing economic support for sports
providing financial aid for charity events
assisting church-run activities and non-governmental organizations
supporting healthcare services
providing humanitarian aid to the victims of natural disasters
assisting church-run activities and non-profit organizations
examples of such social contribution are:
- The special donations in case of natural disasters , such as the donation of
the “creative Engagement house” to the municipality of Ano Liosia after the
1999 earthquake
Page 42
- The donation to assist the humanitarian efforts following the destruction
caused by the Asian tsunami on December 26, 2004
- The donation to help the victims of the earthquake in Pakistan on October 8 ,
2005
- The 2005 donation to the Athens College Scholarships Programmed.
- The 2003 donation to the University of Peloponnese
ROLE OF MOTOR HELLAS:
The use of fossil fuels products inevitably leads to the emission of greenhouse
gases, which according to most current scientific research and studies ,
contribute to global warming
They recognize that carbon containing fuels , i.e. petroleum products and natural
gas, which currently cover 80% of primary energy requirements, will continue for
the next 30 to 40 years to constitute the most important resource for covering the
constantly increasing global energy needs.
energy-producing companies, such as our own, have a significant role to play in
contributing to policy formulation, the delimitation of market-based mechanisms,
the development and application on a large-scale of technological and
commercial solutions, both for fossil fuels and for other energy sources.
We believe in :-
There is an urgent need for action (such as the Kyoto protocol) that will
establish the foundations for the stabilization of greenhouse gases
concentration in the atmosphere in a fair and financially responsible
manner.
Page 43
Energy-saving is a necessary and efficient measure for saving resources and
reducing the emissions of greenhouse gas.
Market-based government policies and legislative acts need to be applied,
aimed at encouraging energy suppliers and consumers to apply
technologically innovative approaches.
While at the same time persistently striving to reduce the effect of our
operations on the environment:
Investing in the application of management procedures and financially
acceptable process technologies, which contribute to reducing emissions.
Improving energy-saving, with the aim of reducing greenhouse gas
emissions.
Cooperating with the competent state authorities and other stakeholders in
planning technologically feasible and financially viable environmental
protection policies.
Reporting our actions and results, including carbon dioxide emissions, to all
interested parties. (EMAS Environmental Statement, Environmental and
Social Report.)
Organization Health and Safety:
Safety composes an integral part of the management system of the company and a
fundamental concern of management.
Page 44
The scope of the major Accidents Prevention policies are:
The minimization of major accident probability
The elimination of industrial accidents and the constant improvement of the
working conditions
The protection of the personnel the environment and the facilities from the
risks arising from the company´s activities.
The Major Accident Prevention Policy :
Constant improvement of the Safety and Health Management System. To
this end, personnel participation – through the Health and Safety Committee
and also through the active participation of every employee personally is
necessary.
Compliance to the legal regulations and the international acceptable codes,
standards and the rules of operational practice.
The refinery was designed, constructed and is operating according to the
American standards which exceed Greek regulations.
Page 45
We observe closely and we comply with every new development or any
Greek, European or American Technical improvement in order to ensure
maximum occupational safety and prevention of accidents.
Recording and evaluation of all accidents and near-misses, in order to take
the proper corrective and preventive actions.
Setting of new targets for the improvement of the safety level and the
working conditions.
Continuous improvement of the level of Personal Protection Equipment and
fire safety as well as constant personnel training in the correct use of them.
Regarding safety matters , the following are mentioned:
The Refinery fire brigade is equipped with five fire-fighting vehicles and many
fixed and mobile detection and fire-fighting systems. This Service is trained for
every possible scenario that may occur. Immediate action is taken within two
(2) minutes from the outbreak of each incident.
The Refinery has three (3) fully equipped ambulances
The Refinery Safety Study was developed in 1993 and was revised in 2001 by
the Dutch Organisation "TNO", which is among the leading institutes at an
international level in industrial safety issues.
The study consists of detailed risk assessment and evaluation of the risk
prevention and control measures and procedures. Also, the contingency plans
are issued and revised, when required, and the personnel is trained in their
implementation.
Page 46
Systematic detection of the risk sources is being carried out and technical or
organizing measures for the risk elimination are taken, measures are taken for
the reduction of the consequences to minimum.
Cooperation with public Authorities is excellent and we provide them with the
necessary relevant information to show our respect to the public and the
environment
Cooperation meetings on safety, Health and Environment issues are taking
place twice a year , with representatives from all the Greek refineries and the
public Authorities.
The issues that are discussed are of common interest and new ideas and
experiences are being exchanged.
Page 47
There has been a Mutual Aid Agreement between all the Greek Refineries
since 1988, in case of emergency. The team drills between MOTOR OIL, Fire
Brigade and other Refineries, ensure the reliability of the co-operation plan.
The successful performance of the Major Accidents Prevention Policy is very well
shown in the safety statistical data, which indicate a declining trend through the
years. During the years of the Refinery operation, no major industrial accident or
fatal or serious disabling injury has ever occurred Concerning personnel health, the
company has a fully equipped Medical Center at the Refinery manned by a Doctor
and a Nurse, also there is a Medical Room at the Alkylation Unit (U-3700) which is
manned 24-hours a day by a Nurse.
For prevention and the health of the personnel the Medical Center
provides the following medical tests:
1. Chest x-rays : Micro-radiography
2. Hippurate acid test : Check for aromatic hydrocarbons (C6H6)
aggravation
3. HF test : Check for HF aggravation
4. Pb control : Check for Pb aggravation
5. Test for H.B.V. – H.C.V. : Hepatitis B and C (Restaurant personnel and blood
donors)
6. Vaccination : Antite (antitetanic)
Ánti-flu
H.B.V. (hepatitis B)
7. Measurements of personnel acoustic ability
8. Spirometry test
9. Blood tests
10.Special tests : All the drivers
a) Full cardiology control
b) Otolaryngology control
c) Ophthalmology control
Page 48
As part of its policy for Quality, Motor Oil has been committed to incorporate the
Health and Safety requirements in its planning, decision making and Refinery
operation always considering all Stakeholders.
Within the context of this commitment the Health & Safety Management of the
Refinery was revised thoroughly and was certified by Bureau VERITAS according to
the international standard OHSAS 18001:2007 in December 2008. This certification
has a three year validity.
Page 49
PART – 3 Comparative
Position of selected
Industry / Sector /
Specific Company /
Product with India and
Gujarat
Page 50
PART – 3 Comparative Position of selected Industry / Sector /
Specific Company / Product with India and Gujarat
ECONOMY OF GREECE (2011-2012)
Greece has a capitalist economy with the public sector accounting for
about 40% of GDP and with per capita GDP about two-thirds that of the
leading euro-zone economies. Tourism provides 15% Of GDP.
Immigrants make up nearly one-fifth of the work force mainly in
agriculture and unskilled jobs. Greece is a major beneficiary of EU aid,
equal to about 3.3% of annual GDP. The Greek economy grew by
nearly 4.0% per year between 2003 and 2007, due partly to
infrastructural spending related to the 2004 Athens Olympic Games
and in part to an increased availability of credit, which has sustained
record levels of consumer spending. But the economy went into
recession in 2009 as a result of the world financial crisis, tightening
credit conditions and Athens failure to address a growing budget
deficit, which was triggered by falling state revenues and increased
government expenditures.
The economy contracted by 2% in 2009, and 4.8% in 2010. Greece
violated the EU's Growth and Stability Pact budget deficit criterion of no
more than 3% of GDP from 2001 to 2006, but finally met that criterion
in 2007-08, before exceeding it again in 2009, with the deficit reaching
15.4% of GDP. Austerity measures reduced the deficit to 10.5% of
GDP in 2010. Public debt, inflation, and unemployment are above the
euro-zone average while per capita income is below; unemployment
rose to 12% in 2010. Eroding public finances, a credibility gap
stemming from inaccurate and misreported statistics, and consistent
underperformance on following through with reforms prompted major
credit rating agencies in late 2009 to downgrade Greece's international
debt rating, and has led the country into a financial crisis. Under
Page 51
intense pressure by the EU and international market participants, the
government has adopted a medium-term austerity program that
includes cutting government spending, reducing the size of the public
sector, decreasing tax evasion, reforming the health care and pension
systems, and improving competitiveness through structural reforms to
the labor and product markets.
Athens, however, faces long-term challenges to push through
unpopular reforms in the face of often vocal opposition from the
country's powerful labor unions and the general public. Greek labor
unions are striking over new austerity measures, but the strikes so far
have had a limited impact on the government's will to adopt reforms.
An uptick in widespread unrest, however, could challenge the
government's ability to implement reforms and meet budget targets,
and could also lead to rioting or violence. In April 2010 a leading credit
agency assigned Greek debt its lowest possible credit rating; in May,
the International Monetary Fund and Eurozone governments provided
Greece emergency short- and medium-term loans worth $147 billion so
that the country could make debt repayments to creditors. In exchange
for the largest bailout ever assembled, the government announced
combined spending cuts and tax increases totaling $40 billion over
three years, on top of the tough austerity measures already taken.
Greece, however, struggled to boost revenues and cut spending to
meet 2010 targets set by the EU and the IMF, especially after Eurostat
- the EU's statistical office - revised upward Greece's deficit and debt
numbers for 2009 and 2010.
Greece's lenders are calling on Athens to step up efforts in 2011 to
increase tax collection, shore up public enterprises, and rein in health
spending, and are planning to give Greece more time to repay its EU-
IMF loan. Greece responded by introducing major structural reforms,
but investors still question whether Greece can sustain fiscal efforts in
the face of a bleak economic outlook and public
Page 52
STATISTICS OF GREECE
TABLE-1
GDP (purchasing power parity) $318.1 billion (2010 est.)
$333.2 billion (2009 est.)
$340.1 billion (2008 est.)
GDP (official exchange rate) $305.4 billion (2010 est.)
GDP - real growth rate -4.5% (2010 est.)
-2% (2009 est.)
1% (2008 est.)
GDP - per capita (PPP) $29,600 (2010 est.)
$31,000 (2009 est.)
$31,700 (2008 est.)
GDP - composition by sector agriculture: 3.3%
industry: 17.9%
services: 78.8% (2010 est.)
Population below poverty line 20% (2009 est.)
Labor force 5.013 million (2010 est.)
Labor force - by occupation agriculture: 12.4%
industry: 22.4%
services: 65.1% (2005 est.)
Unemployment rate 12.5% (2010 est.)
9.4% (2009 est.)
Page 53
Unemployment, youth ages 15-24 total: 25.8%
male: 19.4%
female: 33.9% (2009)
Household income or consumption
by percentage share
lowest 10%: 2.5%
highest 10%: 26% (2000 est.)
Distribution of family income - Gini
index
33 (2005)
35.4 (1998)
Investment (gross fixed) 14.7% of GDP (2010 est.)
Budget revenues: $119.6 billion
expenditures: $151.5 billion (2010
est.)
Taxes and other revenues 39.2% of GDP (2010 est.)
Budget surplus (+) or deficit (-) -10.4% of GDP (2010 est.)
Public debt 142.7% of GDP (2010 est.)
127.5% of GDP (2009 est.)
Inflation rate (consumer prices) 4.7% (2010 est.)
1.2% (2009 est.)
Central bank discount rate 1.75% (31 December 2010)
1.75% (31 December 2009)
Commercial bank prime lending
rate
5.984% (31 December 2010 est.)
Page 54
6.055% (31 December 2009 est.)
Stock of narrow money $151.1 billion (31 December 2010
est.)
$177.8 billion (31 December 2009
est.)
Stock of money $NA
Stock of broad money $316.8 billion (31 December 2010
est.)
$379 billion (31 December 2009
est.)
Stock of quasi money $NA
Stock of domestic credit $442.8 billion (31 December 2010
est.)
$383.7 billion (31 December 2009
est.)
Market value of publicly traded
shares
$72.64 billion (31 December 2010)
$54.72 billion (31 December 2009)
$90.4 billion (31 December 2008)
Industrial production growth rate -5.7% (2010 est.)
Electricity - production 51.5 billion kWh (2009 est.)
Electricity - production by source fossil fuel: 94.5%
hydro: 3.8%
nuclear: 0%
Page 55
other: 1.7% (2001)
Electricity - consumption 59.53 billion kWh (2008 est.)
Electricity - exports 3.233 billion kWh (2009 est.)
Electricity - imports 4.368 billion kWh (2009 est.)
Oil - production 7,946 bbl/day (2010 est.)
Oil - consumption 371,300 bbl/day (2010 est.)
Oil - exports 181,600 bbl/day (2009 est.)
Oil - imports 496,600 bbl/day (2009 est.)
Oil - proved reserves 10 million bbl (1 January 2011 est.)
Natural gas - production 1 million cu m (2010 est.)
Natural gas - consumption 3.824 billion cu m (2010 est.)
Natural gas - exports 0 cu m (2010 est.)
Natural gas - imports 3.815 billion cu m (2010 est.)
Natural gas - proved reserves 991.1 million cu m (1 January 2011
est.)
Current Account Balance -$19.89 billion (2010 est.)
-$35.97 billion (2009 est.)
Exports $22.66 billion (2010 est.)
$21.34 billion (2009 est.)
Exports - partners Germany 10.9%, Italy 10.9%,
Cyprus 7.3%, Bulgaria 6.5%,
Turkey 5.4%, UK 5.3%, Belgium
Page 56
5.1%, China 4.8%, Switzerland
4.5%, Poland 4.2% (2010)
Imports $60.19 billion (2010 est.)
$64.21 billion (2009 est.)
Imports - partners Germany 10.6%, Italy 9.9%,
Russia 9.6%, China 6.1%,
Netherlands 5.3%, France 4.9%,
Austria 4.5% (2010)
Reserves of foreign exchange and
gold
$6.37 billion (31 December 2010
est.)
$5.546 billion (31 December 2009
est.)
Debt - external $583.3 billion (30 June 2011)
$532.9 billion (30 June 2010)
Stock of direct foreign investment -
at home
$33.56 billion (31 December 2010
est.)
$42.1 billion (31 December 2009
est.)
Stock of direct foreign investment -
abroad
$37.88 billion (31 December 2010
est.)
$39.45 billion (31 December 2009
est.)
Exchange rates euros (EUR) per US dollar -
0.7715 (2010)
Page 57
0.7179 (2009)
0.6827 (2008)
0.7345 (2007)
0.7964 (2006)
ECONOMY OF INDIA (2011-2012)
Economy is expected to develop at 8.2 percent in 2011-12.
Agriculture grew at 6.6 percent in 2010-11. Likely to nurture at 3.0 percent in
2011-12.
Industry grew at 7.9 percent in 2010-11. Likely to nurture at 7.1 percent in
2011-12.
Services grew at 9.4 percent in 2009-10. Likely to nurture at 10.0 percent in
2011-12.
The expected growth rate of 8.2 percent, although inferior than the earlier
year, must be treated as high and respectable, given the current world
situation.
The global economic and financial situation is not likely to improve according
to the outlook.
To keep the economy growing at 9 percent it is significant to boost fixed
investment rates.
Investment rates are expected at 36.4 percent in 2010-11 and 36.7 percent
in 2011-12.
Domestic savings rates as a ratio of GDP are likely at 33.8 percent in 2010-
11 and 34.0 percent in 2011-12.
The 2011 monsoon is anticipated to be in the range of 90 percent to 96
percent of Long Period Average. As a result, farm sector output is expected
to grow at 3 percent.
The revised series (2004/05) for Index of Industrial Production shows an
output growth pattern that is fairly different from what the old series (1993/94)
had indicated.
Page 58
The output growth was grossly underestimated by the old series in 2007-08
and overestimated in 2008-09 and 2009-10.
The impact of the Global Financial Crisis on industrial output was much
stronger than had been indicated by the old series.
In 2010-11 the output growth was higher at 8.2 percent against 7.8 percent
indicated by the old series.
Significant role for fiscal policy to contain demand pressure. Need to ensure
that fiscal deficit does not surpass the budgeted level.
RBI will have to persist to follow a tight monetary policy till inflation shows
definite signs of decline.
Achieving fiscal targets set in 2011/12 budget estimates to present a
significant challenge.
Government to redouble efforts to collect larger revenue, resolve cases to
reduce tax arrears.
Minimize avoidable expenditures and initiate measures to increase revenues.
Resolve issues with states and introduce Goods and Services Tax.
Reforms in power sector distribution system to limit the liabilities of state
governments.
The revised series (2004/05) for Index of Industrial Production shows an
output growth pattern that is fairly different from what the old series (1993/94)
had indicated.
The output growth was grossly underestimated by the old series in 2007-08
and overestimated in 2008-09 and 2009-10.
The impact of the Global Financial Crisis on industrial output was much
stronger than had been indicated by the old series.
In 2010-11 the output growth was higher at 8.2 percent against 7.8 percent
indicated by the old series.
Current Account deficit is US$44.3 billion (2.6 percent of GDP) in 2010-11
and likely at US$54.0 billion (2.7 percent of GDP) in 2011-12.
Merchandise trade deficit is US$130.5 billion or 7.59 percent of GDP in 2010-
11 and projected at US$154.0 billion or 7.7 percent of GDP in 2011-12.
Invisibles trade surplus is US$86.2 billion or 5.0 percent of the GDP in 2010-
11 and projected at US$100.0 billion or 5.0 percent in 2011-12.
Page 59
Capital flows registered at US$61.9 billion in 2010-11 and are projected at
$72.0 billion in 2011-12.
FDI inflows projected at US$35 billion in 2011-12 against the level of
US$23.4 billion in 2010-11.
FII inflows projected to be US$14 billion which is less than half that of the last
year’s US$30.3 billion.
Accumulation to reserves was US$15.2 billion in 2010-11 and is projected at
US$18.0 billion in 2011-12.
The headline inflation rate would continue to be at 9 percent in the month of
July-October 2011. There will be some relief starting from November and will
decline to 6.5 percent in March 2012.
STATISTICS OF INDIA
TABLE-2
GDP $1.846 trillion (nominal: 9th; 2011)
$4.469 trillion (PPP: 3rd; 2011)
GDP growth 8.5% (2009-10)
GDP per capita $1,527 (nominal: 135th; 2011)
$3,703 (PPP: 127th; 2011)
GDP by sector Agriculture 8.1%, industry: 26.3%,
services: 55.6% (2011 est.)
Inflation (CPI) 6.95% (February 2012)
Average gross salary $1,330 yearly (2010)
Unemployment 9.8% (2011 est.)
Exports $298.2 billion (2011 est.)
Page 60
Imports $451 billion (2011 est.)
Greece GDP per capita (ppp)
The GDP per capita, adjusted by purchasing power parity, in Greece was last
reported at 27805 US dollars in December of 2010, according to the World Bank.
Previously the GDP per capita PPP in Greece standard at 28883 US dollars in
December of 2009. The GDP per capita PPP in Greece is obtained by dividing
the country’s gross domestic product, adjusted by purchasing power parity, by
the total population. Historically, from 1980 until 2010, Greece's average GDP per
capita PPP was 16779.38 dollars reaching an historical high of 29569.37 dollars
in December of 2008 and a record low of 8315.45 dollars in December of 1980.
This page includes a chart with historical data for Greece's GDP per capita PPP.
GRAPH-1
India GDP per capita (ppp)
The GDP per capita, adjusted by purchasing power parity, in India was last
reported at 3582 US dollars in December of 2010, according to the World Bank.
Previously, the GDP per capita PPP in India standed at 3310 US dollars in
December of 2009. The GDP per capita PPP in India is obtained by dividing the
country’s gross domestic product, adjusted by purchasing power parity, by the
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total population. Historically, from 1980 until 2010, India's average GDP per
capita PPP was 1413.43 dollars reaching an historical high of 3582.48 dollars in
December of 2010 and a record low of 415.30 dollars in December of 1980. This
page includes a chart with historical data for India's GDP per capita PPP.
GRAPH-2
Greece GDP
Greece Gross Domestic Product is worth 305 billion dollars or 0.49% of the world
economy, according to the World Bank. Historically, from 1960 until 2010,
Greece's average Gross Domestic Product was 93.03 billion dollars reaching an
historical high of 347.04 billion dollars in December of 2008 and a record low of
4.45 billion dollars in December of 1960. Greece had managed to achieve a fast-
growing economy after the implementation of stabilization policies in recent
years, at least, prior to the global financial crisis of 2008–2009. Greece has a
predominately service economy, which (including tourism) accounts for over 70%
of GDP. Greece realigned its economy as part of EU membership that began in
1981. This page includes: Greece Gross Domestic Product (GDP) chart,
historical data, forecasts and news.
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GRAPH-3
India GDP
The Gross Domestic Product (GDP) in India expanded 6.1 percent in the fourth
quarter of 2011 over the previous quarter. Historically, from 2000 until 2011,
India's average quarterly GDP Growth was 7.45 percent reaching an historical
high of 11.80 percent in December of 2003 and a record low of 1.60 percent in
December of 2002. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries, and
a multitude of services. Services are the major source of economic growth,
accounting for more than half of India's output with less than one third of its labor
force. The economy has posted an average growth rate of more than 7% in the
decade since 1997, reducing poverty by about 10 percentage points. This page
includes: India GDP Growth Rate chart, historical data, forecasts and news. Data
is also available for India GDP Annual Growth Rate, which measures growth over
a full economic year.
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GRAPH-4
Present Position and Trend of Business (import / Export) with
India
l. No Name of Client Project Description Type of Contract
Indian Clients
01
Southern Petrochemical
Industries Corporation Limited
(SPIC), India
Engineering, Procurement & Construction of Gas Collection Station – 2.5 mm
CMD for ONGC, India.
(Value : 2,870,000US$)
LSTK
02 Niko Resources Limited, India
Engineering, Procurement & Construction of Dew point Control Unit 5.6 Million
m3/day
(Value : 1,650,000 US$)
LSTK
03 Chemplast Sanmar – IndiaEngineering, Procurement & Construction of Ethylene Storage Systems.
(Value : 12,750,000 US$)LSTK
04 Cairn India Ltd-India
Engineering, Procurement & Construction of Produced Water Re-Injection Facility
Systems.
(Value : 4,900,000 US$)
LSTK
05 GNFC-IndiaEngineering Services for 150,000 MTA Acetic Acid Revamp - Phase II. (Total
Manhours : 15,000)LSS
06 Chemplast Sanmar – IndiaEngineering, Procurement & Construction of VCM Storage Terminal Facility
Systems.
(Value : 8,715,000 US$)
LSTK
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07 Essar Oil Company - IndiaEngineering Services for Vadinar Refinery Expansion ,Gujarat.
(Total Manhours : 600,000)LSS
PRESENT POSITION OF INDIA:
The petroleum reserves of India, situated in Gujarat, Bombay High
(next to the seashore of Maharashtra), eastern Assam, and Rajasthan
satisfy about 1/4th of the requirements of the nation.
Till January 2007, the established oil reserves of the country hold the
second biggest volume in the Asia-Pacific territory and India ranks after
China in this regard. This is as per statistics provided by EIA (Energy
Information Administration), which is a statistical organization of the
United States Department of Energy.
The majority of petroleum reserves of the country lie in the western
seashores of the country (including Mumbai High) and also in the
northeastern region of India. However, a significant number of
unexploited reserves are situated in Rajasthan and close to the coasts
of the Bay of Bengal.
India relies significantly on oil imports for fulfilling the usage
requirements of the country. The blend of increasing oil usage and
somewhat firm production volumes is the main reason behind this.
In the year 2006, the country had a mean production of approximately
846,000 barrels per day (bbl/d) of total oil liquids. Out of this, 103,000
m3/d (648,000 bbl/d) or 77% was petroleum.The approximated amount
of oil used in the country during 2006 was 418,000 m3/d or 2.63
Mbbl/d.
The Energy Information Administration (EIA) projected that India
posted an increase in oil demand amounting to 16,000 m3/d (100,000
bbl/d) in 2006.
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The petroleum industry in India is controlled by government
organizations. Over the past one or two decades, the Government of
India took a number of initiatives to lift the regulations from the
hydrocarbons sector and encourage higher international participation.
The biggest oil company in the country is the Oil and Natural Gas
Corporation (ONGC) Limited, which is an entirely state-held
organization. In terms of market capitalization, ONGC also ranks as the
biggest organization in India.
The Indian oil and gas sector is of strategic importance and plays a
predominantly pivotal role in influencing decisions in all other spheres
of the economy. The annual growth has been commendable and will
accelerate in future consequently encouraging all round growth and
development. This has necessitated the need for a wider intensified
search for new fields, evolving better methods of extraction, refining
and distribution, the constitution of a national price mechanism -
keeping in mind the alarming price fluctuation in the recent past and
evolving a spirit of equitable global cooperation.
The growing demand for crude oil and gas in the country and policy
initiative of Government of India towards increased E&P activity, have
given a great impetus to the Indian E&P industry raising hopes of
increased exploration.
Oil and Natural Gas Corporation Limited (ONGC) and Oil India Ltd.
(OIL), the two National Oil Companies (NOCs) and private and joint-
venture companies are engaged in the exploration and production
(E&P) of oil and natural gas in the country.
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PRESENT POSITION OF GUJARAT
It is India's only State Government-owned oil and gas company with the
Government of Gujarat holding approximately 95% equity stake. GSPC was
incorporated in 1979 as a petrochemical company.
Today GSPC has become a vertically integrated energy company, excelling in
a wide gamut of hydrocarbon activities across India. The largest gas grid will
generate opportunities for transmission and distribution of natural gas to
domestic and industrial users. Three LNG terminals coming up in the state will
provide the fuel for growth. Refineries and petrochemical complexes in
operation, invites investment in downstream projects.
OPPORTUNITIES FOR ENTREPRENEURS:
Gujarat State is the largest on land producer of oil and gas in country.
Following are some identified projects of gas and petroleum in Gujarat:
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Refining Of Used Engine Oils for Making Base Oil
Wax from Slack Wax
Naphtha Base Solven
Bitumen Emulsion For Road (cationic Type)
Gas filling of L.P.G. cylinder
Hydrogen Gas from Methanol Cracking
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PART-4
Policies and Norms of selected
country for selected
Industry/company for import /
export including licensing /
permission, taxation etc.
Policies and Norms of India for
Import or export to the selected
country including licensing /
permission, taxation etc.
PART-4
Policies and Norms of selected country for selected
Industry/company for import / export including licensing
permission, taxation etc.Policies and Norms of India for Import or
Page 69
export to the selected country including licensing / permission,
taxation etc.
Indian Import Policy:
The economic needs of the country, effective use of foreign exchange and industrial
as well as consumer requirements are the basic factors which influence India's
import policy. On the import side the policy has three objectives:
1) to make necessary imported goods more easily available, including
essential capital goods for modernizing and upgrading technology
2) to simplify and streamline procedures for import licensing
3) to promote efficient import substitution and self-reliance.
There are no quantitative restrictions on imports of capital goods and intermediates.
Import of second-hand capital goods is permitted provided they have a minimum
residual life of 5 years. There is an Export Promotion Capital Goods (EPCG)
Scheme under which exporters are allowed to import capital goods (including
computer systems) at concessionary customs duty, subject to fulfillment of specified
export obligations. Service industries enjoy the facility of zero import duty under the
EPCG Scheme. Likewise, hospitals, air cargo, hotels and other tourism-related
industries. Software units can use data communication network to export their
products.
Current Scenario of Imports in India
There are few goods which cannot be imported namely tallow fat, animal rennet,
wild animals, unprocessed ivory etc. Most of the restrictions are on the ground of
security, health, environment protection etc. Imports are allowed free of duty for
export production. Input output norms have been specified for more than 4200 items.
The norms tell about the amount of duty free import of inputs allowed for specified
products. There are no restrictions on imports of capital goods. Import of second
hand capital goods whose minimum residual life is of five years is permitted. Export
Promotion Capital Goods (EPCG) scheme provides exporters to import capital goods
at a concessionary custom rates. In the past 30 years Indian imports have risen quite
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dramatically. At present imports accounts for 17% of the GDP. Capital goods have
been continued to be imported and in the last three years, their share has fallen from
25% to 22%.
Major Indian Imports
There are facilities available for the service industries to enjoy the facility of zero
import duty under EPCG scheme. Some of the major imports of India are edible oil,
newsprint, petroleum and crude products, crude rubber, fabrics, electronic goods etc.
Problems due to Large Import of Products
The recent trend of imports is of some concern. The regular imports of oil reflect
upon the fact that India is not able to produce the quantity of oil required in India.
Moreover the increase in the imports of products also highlights the fact that the
Indian domestic industries need to be developed. High cost of imports also put
pressure on the foreign exchange reserves.
The basic laws that governs the import sector of Indian
economy:-
No import of rough diamonds shall be permitted unless the shipment parcel is
accompanied by Kimberley Process Certificate required under the procedure
specified by the Gem & Jewelry Export Promotion Council.
Duty credit allowed for import of capital goods, spare parts, office equipment,
office furniture and consumables that are importable under ITC (HS). Such
imports covers all items of the service sector
Tariff rates, excise duties, regulatory duties are revised in each annual
budget of India
Total duties on imports now consist of basic duty which ranges from zero to
65% plus additional or countervailing duties
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On manufactured "luxury" items, total import taxes may amount to
whooping 150%
Import duties are product specific and can be revised in mid-year
Every importer shall comply with the provisions of the Foreign Trade
(Development and Regulation) Act, 1992, the Rules and Orders made
hereunder, the provisions of this Policy and the terms and conditions of any
license / certificate / permission granted to him, as well as provisions of any
other law for the time being in force
The Customs Act of India governs the process of levying of tariffs on
imports and frames the rules and it also specifies the tariffs rates and
provides for the imposition of anti-dumping and compensation charges
Imports shall be free, except in cases where they are regulated by the
provisions of this Policy or any other law for the time being in force
The item wise import policy shall be, as specified in published and notified
by Director General of Foreign Trade, as amended from time to time
Licensing, Quotas and Prohibitions
Import approval is based on compliance with procedures whereby specific items
may be imported by certain types of importers under certain types of licences.
Importers are divided into three categories for the purpose of import licensing:
1) actual users;
An actual user applies for and receives a licence to import any item or
an allotment of an imported item as required for his own use, not for
business or trade in that item.
2) registered exporters;
defined as those who have a valid registration certificate issued by an
export promotion council, commodity board or other registered
authority designated by the Government for purposes of export-
promotion.
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3) Others
The two types of actual user licence are:
general currency area licences which are valid for imports from all countries,
except those countries from which imports are prohibited;
specific licences which are valid for imports from a specific country or countries.
Aside from the types of licences listed, the Open General Licence is perhaps the \
most liberalized type of licence available for certain items and certain types of
importers.
Licences are valid for 24 months for capital goods and 18 months for raw
materials components, consumable and spares, with the licence term renewable.
Import licences may be obtained from the director general of foreign trade
The latest export import policy of India have led to growth of
India's Import :-
The export sector of Indian economy made comprehensive progress over the
last decade. The exponential growth of the export sector of Indian economy
can be attributed to the liberal Government of India economic policy. Indian
exports have an ambitious target of US 160 billion in 2007-08.
The achievement came to the Indian exports in the last fiscal despite the odds
against the exports, minimizing the gains. In the first two months of 2007-08
exports grew by 20.3%, which was a little lower than the previous year over
the same period a year ago.
The Government of India latest export policy for the exporters will help in
stabilizing the export growth levels attained in the 1st quarter of 2007-2008.
Ores and minerals exports grew moderately to 12.9% against 37.4% in 2005-
06. Similar trend was also observed in the exports of manufacturing sector.
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The exports of manufactured goods from India grew moderately by 15% in the
first quarter of 2007-2008 as compared to 21.2% in the last fiscal year. High
value commodities like engineering goods and rice registered very high
growth rate in the 1st quarter of this fiscal against the same period last year.
The overall exports suggest that the Indian exports grew considerably across
all major exporting destinations. The Indian exports to Pakistan, UAE and Italy
showed remarkable growth in the first quarter of the current fiscal year.
The Government of India latest export policy for the exporters will help in
stabilizing the export growth levels attained in the 1st quarter of 2007-2008.
The Indian imports shoot up by 34.30% during the 1st quarter of 2007-2008.
Today, India ranks second in the manufacture of small passenger car
segment.
It is the world’s largest producer of generic pharmaceutical and its Information
Technology sector is registering three figure growth consistently. Moreover, it
is the most preferred destination for business process outsourcing.
The world's knowledge process outsourcing business is valued at US$ 15
billion out of which US$ 12.5 billion worth of business is expected to be
outsourced to India alone by 2010. According to reports, productivity growth
rate of Indian economy is estimated to be around 8% and above until 2020.
Greece Import Policy:
Import duty and taxes are due when importing goods into Greece from outside of
the EU whether by a private individual or a commercial entity. The import duty
Page 74
and taxes payable are calculated on the value of the imported goods plus the
cost of importing them (shipping and insurance).
Duty Rates
The duty rates applied to imports into Greece typically range between 0% (e.g.
books) and 17%. Some products, such as Laptops, Mobile Phones, Digital
cameras and Video Game consoles, are duty free. Certain goods may be subject
to additional duties depending on the country of manufacture, for example
Bicycles made in China carry an additional duty of 48.5%.
VAT Rates
The standard VAT rate for importing items into Greece is 23%, with certain
products, for example books, attracting VAT at the reduced rate of 6.5%. VAT is
calculated on the value of the goods, plus the international shipping costs and
insurance, plus any import duty due.
Minimum thresholds
When importing goods into Greece, duty is not charged, if the total value of the
goods (not including shipping charges or insurance) does not exceed €150.
Neither duty nor VAT is payable if the total value of the goods (not including
shipping charges or insurance) does not exceed €22.
Other taxes and custom fees
Excise duty is payable on for example tobacco and alcohol.
Additional custom fees can be charged to cover the expense of performing any
required examinations, verification and or testing of the imported goods.
growth of the Indian export sector was led by the following
industry
Pharmaceutical and biotechnology products
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Consumer durables
Chemicals and fertilizers
Food grains
Power equipment
Iron and steel
Textiles
Electronics and hardware
Construction machinery
Telecommunication hardware
The growth factors of the oil sector of Indian economy:
The oil and gas industry is amongst the six core industries in India. This industry is a
major factor for the growth being witnessed in the Indian economy today. The natural
gas and petroleum sector, which is inclusive of refining, transportation, and
marketing of these products, contributes about 15% to India's GDP.
he Economic Affairs Committee gave 44 oil and gas blocks for exploration under
the New Licensing Policy. These allocations will bring investments worth US$ 1.5
billion in this sector.
Investment Opportunities
Refining: India is rising as a potential refining hub because the capital costs are
lowered by 2550% here in comparison to other Asian countries. India ranks fifth in
the category of refining. Its share is 3% of the capacity worldwide and is going to
improve further by 45% over the next 5 years. This is in accordance with a report
compiled by Deutsche Bank.
Retail: A surge in the automobile market has led to investments for extending the
petroleum sector. According to Keystone, a US consultancy, the automobile industry
is poised to grow to 20 million by 2030. This makes India the 3rd-largest market for
automobiles worldwide. Thus, the need for more petroleum and petroleum-based
products is going to rise further.
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Gas: The power and fertilizer sectors in India drive the demand for gas in the
country. They use 66% of the total gas produced. The demand for gas is set to grow;
thus, the natural gas share in the overall mix is projected to rise from 8% to 20% by
2025.
The investments by public sector oil companies is going to be US$ 11.33 billion to
expand supplies and build new networks for transportation of oil and gas.
The policies of the government are a further boost to foreign investment in this
industry.
These are government initiatives
1) 100% FDI is allowed in private refineries via the automatic route and up to
26% in government-owned ones.
2) 100% FDI is also granted in cases of petroleum products, gas pipelines,
exploration, and marketing or retail via the automatic route.
3) It has also abolished the administrated pricing policy.
4) With NELP (New Exploration Licensing Policy) it has helped encourage
further explorations for oil and gas reserves in India.
Growth Prospects
India's energy sector will be instrumental in providing avenues worth US$ 120 billion
to 150 billion over the coming 5 years. As per the Investment Commission, the
opportunities in the oil and gas sector are projected to reach US$ 3540 billion by
2012.
Another reason that investments in this sector can be useful is that crude oil coming
from the Middle East region can easily be transported to India. Also, India offers
cost-effective refining technologies.
As the energy sector is never going to slow down or lose its sheen, the growth
prospects are enormous in this industry.
The future trends of the oil sector of Indian economy :
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Future trends relating to energy prices and oil price per barrel. Impact on
global economic growth of rising oil prices. Balance between oil production
and oil consumption.
Peak oil and proven global oil reserves -- why they are rising. Oil from coal --
future trends in coal industry. Petroleum based products and petrochemical
industry -- growing demand for all kinds of commodities including steel,
copper, oil, coal, gas, all part of the growth of emerging economies such as
China, India, Indonesia, Brazil, Malaysia, South Korea, Singapore and so on.
Impact on utility companies. Deep sea drilling, oilfields, engineering and
environmental challenges including global warming / climate change. Impact
of rising fuel costs on transport and transportation industry, aviation, rail
travel, shipping, vehicle sales, car use, heating and air conditioning systems,
building design and manufacturing.
OPEC production quotas and their impact on global economic growth.
Instability and revolution, impact of popular protests across Middle East oil
producing nations. Government policy changes in Tunisia, Egypt, Libya,
Yemen, Oman, Qatar, Kuwait, UAE, Saudi Arabia. Link between oil wealth
and local unemployment. Inequalities of wealth and wealth distribution in
future by governments keen to maintain political power.
Impact of alternative energy production on oil consumption. Predictions for
future energy costs. Video by conference keynote speaker Patrick Dixon,
author of Sustainagility and Futurewise.
EXIM POLICIES OF GREECE
Page 78
Free Import when travelling within EU
Although there are no limits on the amount of alcohol and tobacco one can bring
in from EU countries, customs officials are more likely to ask you questions if you
have more than:
Tobacco products:
800 cigarettes;
400 cigarillos (max. 3g each);
200 cigars
1kg smoking tobacco
Alcoholic beverages:
10 litres of spirits over 22%;
20 litres of alcoholic beverages less than 22%;
90 litres of wine (though no more than 60 litres of sparkling wine);
110 litres of beer.
These quantities can be seized if customs are satisfied that they are of a
commercial nature.
Free Import quantities when travelling from outside EU
Page 79
Alcohol and alcoholic beverages
Over 17 years olds can bring (in personal luggage) the following
quantities:
1 liter of alcohol that does not exceed 22% volume of alcohol, or un-
denatured ethyl alcohol 80% volume and over
2 liters of alcohol that does not exceeds 22% volume of alcohol
4 liters of still wine
16 liters of beer.
The passengers can combine the first two types of alcohol as long the alcohol
volume does not exceed 100%.
Over 17 years old that belong to the following categories:
Persons residing in the frontier zone (region beyond the expanding border
of the European Unions including)
Frontier-zone workers
The crews of means of the transport used between third countries and the
community may bring alcohol in the following quantities
0,5 liter of alcohol exceeding 22% volume, or un-denatured ethyl alcohol of
80% volume and over a total of 0,5 liter of alcohol and alcoholic beverages
of an alcoholic strength not exceeding 22% volume 0,5 liter of still wine 2
liters of beer.
The passengers can combine the first two types of alcohol as long the
alcohol volume does not exceed 100%.
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Tobacco products
When travelling by air or sea, over 17 years old can bring tobacco products for
personal use only the following:
200 cigarettes or
100 cigarillos or
50 cigars or
250 g of smoking tobacco.
Each amount specified in above points will amount to 100% of the total
allowance for tobacco products.
When travelling by land, over 17 years old can bring tobacco products for
personal use only the following:
40 cigarettes or
20 cigarillos or
10 cigars or
50 grams of smoking tobacco.
Each amount specified in all the points will amount to 100% of the total
allowance for tobacco products.
Other goods
Medication – for personal use only
Personal items of non-commercial nature worth up to 430 euro when
travelling by air or sea
Personal items of non-commercial nature worth up to 300 euro when
travelling by land
Personal items of non-commercial nature worth up to 150 euro for
travellers under 15 years of age.
Non-commercial item are of an occasional nature and consist exclusively of
goods for the personal or family use of the traveller, or of goods intended as
presents. The nature and quantity of the goods must not be such as to indicate
that they are being imported for commercial reasons.
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Prohibited
Meat and milk and any items thereof from non-EU countries with the
exception of limited amounts from Andorra, Croatia, the Faeroe Islands,
Greenland, Iceland and small amounts of specific products from other
countries
Protected species and products thereof as listed by the CITES
(Washington Convention) for example ivory, tortoise shell, coral, reptile
skin, wood from Amazonian forests.
Restricted
pets need to be identifiable (tattoo or an electronic identification system),
vaccinated against rabies and have a health certificate. For more
information please refer to the nearest embassy.
maximum of 10 kg of meat, milk and dairy products coming from Croatia,
Færøer Islands, Greenland and Iceland
powdered milk for babies, food for children and special medical food
(including pets food) may be allowed if they need not to be refrigerated
prior opening and that it is brand packaged food and the packaging has
original seal (unless in use at the time) and its quantity must not exceed
the weight of 10 kg originating from Croatia, Færøer Islands, Greenland
and Iceland, and of 2 kg if originating in other countries.
fish only if it is disembowelled and does not exceed the weight of 20 kg,
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currency - no restrictions if coming from EU country. Declarable for all
travelling outside EU when the amount exceeds 10.000 euro or equivalent
in another currency.
coats, fur and leather shoes made of protected animals will need special
authorization
Page 83
PART-5
Potential for import /
export in India /
Gujarat Market
Business Opportunities in
future
Conclusion and
Suggestions
Page 84
PART-5
Potential for import / export in India /Gujarat Market Business
Opportunities in future Conclusion and Suggestions
Potential for Import in India
With close to 70% of its oil requirements imported from more than 8 countries, India
is a net importer of oil. The rest 30% is provided by the domestic oil production.
India’s oil consumption has increased and the production almost remained the same.
This did not take into account the recent findings of Reliance in KG basin. Even if
they did find some other reserves the graph is not likely to be changed in the future.
Starting in 1996 India’s import’s exceeded its production. India’s production has been
fairly consistent.
GRAPH-5
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Oil is the second largest fuel after coal. Nuclear and renewable account to a mere
2 % . The figures should be slightly different for 2009 but not radically different. Even
coal usage is a little alarming but we have some reserves. Not the same case with
oil. From the graph above the production is constant.
GRAPH-6
India imports more than 70% of its oil needs from several different countries with
Saudi Arabia and Iran topping the list.
These 3 pictures give a holistic view of energy consumption in India, its oil usage
and imports. One trend is clear. The oil production is not increasing, but the oil usage
is increasing. And oil is a major factor in India’s energy equation.
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If Indian consumers has to realize what they are consuming then they should realize
how much they should pay for it. Right now they are not and that is a problem.
Indian consumers are shielded from the global shocks thanks to the oil subsidies.
This is not an incentive enough to bring in a behavioral change which is what we
need to reduce our oil usage.
India is likely to import less oil from Iran this fiscal year ending in March, compared
with 2010/11. Iran is India's second largest crude oil supplier meeting about 11
percent of the South Asian country's imports. Tehran is facing Western sanctions
over its nuclear plans that many say is aimed at making a bomb. Iran says it wants to
produce power.
The sanctions make it tough for importers to pay for Iran's oil. Indian purchases have
been fraught with payment problems in the past 13 months after a clearing
mechanism was scrapped. Indian refiners have since sought alternative
supplies."Iran constitutes a declining but a significant part of our energy imports," the
government source said.
"We will continue to buy crude from Iran to the extent possible. But Indian companies
have to make their own decision taking into account the factors in the market."India's
oil imports from Iran have declined from 21.8 million tonnes, or 16.43 percent of total
imports, to 18.5 million tonnes or about 11 percent, in 2010/11.
World's top oil exporter Saudi Arabia has offered extra oil to India, potentially to
replace Iranian barrels. New Delhi has come up with elaborate trade and barter
arrangements to pay for oil supplies
Potential for Export in India
Motor Oil Hellas (MOH) is major leading industry in Oil sector of
Greece. MOH mostly doing import business in the Greece. In India
MOH not any relation or business related to Oil sector because MOH
mostly importing Oil in Greece so not possible to export to India in
petroleum products sector, so no any potential business in India such
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as import and export by MOH, so MOH not any co-relation or potential
to Indian or Gujarat petroleum market.
In India ONGC is one of the major leading petroleum industry Indian
markets. ONGC also government petroleum industry in India so it
never establish the any other petroleum industry in Indian markets,
Greece never start up business in India so not any potential business
such as import and export to India or Gujarat markets in Oil sector
industry.
Business Opportunities in future
SWOT ANALYSIS
Strengths
Developing economy: Historically, demand for petroleum products has traced the
economic growth of the country. With GDP expected to grow at near 7% in the long-
term, the energy sector would benefit from the same, going forward.
To put things in perspective, diesel sales grew by nearly 12% (which constitutes 40%
of the entire petro-products basket), petrol sales by 9% and a double-digit growth in
LPG (liquefied petroleum gas) in 1QFY05. While this rate is not likely to sustain, we
expect the industry to witness a 4% growth in the entire product basket in FY05 and
beyond.
Consumption growth
TABLE - 3
Page 88
Government decisions: The recent price increases and also the decision to allow
oil companies to increase prices within a band of 10% augurs well for the industry.
This step is likely to reduce government interference and provide some autonomy to
oil companies when it comes to increasing petrol and diesel prices in order to protect
margins. Further, the duty cuts are also likely to result in reduced under-recoveries
by way of subsidies on LPG and kerosene.
TABLE -4
Weakness:
Crude prices: Nearly 70% of India's crude requirements are fulfilled by imports and
this figure is likely to increase going forward. Crude prices have breached the $45
barrier again and are likely to remain at around $40 per barrel range.
As per IEA, India is one of the most inefficient countries among developing nations
as far as energy usage is concerned. Such high crude prices are likely to impact
margins of oil marketing companies. Given the political implications, retail prices may
continue to lag the rise in input cost.
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Lack of freedom: Although the government has decided to provide autonomy to oil
companies to increase petrol and diesel prices within a 10% band, other products
such as LPG and kerosene continue to remain under the government controlled
price mechanism.
As per the current estimates, the subsidies on LPG amount to Rs 90 per cylinder
after factoring in duty cuts and that on kerosene is over Rs 6 per litre.
While the government has managed to reduce its share in subsidies, select oil
companies are being forced to absorb the losses.
Opportunities:
Equity Oil: Major oil marketing companies are now venturing into upstream
exploration and production activities so as to secure crude supply.
To put things in perspective, IOC and OIL India are likely to jointly bid for oil fields
aboard. At the same time, ONGC's wholly owned subsidiary, ONGC Videsh (OVL)
has acquired stakes in over 9 countries in its quest to attain the 20 MMT (million
metric tonnes) by 2020. This backward integration is an opportunity for IOC to
secure at least 25% of its crude oil requirements for the refineries.
Natural Gas: Natural gas has the potential to be the fuel of the future with demand
outpacing supply by more than two times. Such high scarcity of natural gas provides
a big opportunity for oil companies. The below mentioned table indicates the
allocation to the various core sectors and the shortage faced by them, thereby giving
an idea of the potential for growth.
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TABLE -5
Although Petronet LNG has now started importing natural gas, the future holds
promise as Reliance Industries' Krishna Godavari Basin goes into commercial
production in FY06 and Shell commences its terminal at Hazira. More exploration
activities are in the pipeline and this could reduce the country's dependence on
crude in the long term.
Threats:
Competition: Until Oil-marketing companies had complete control over the
downstream marketing business while private sector players were restricted to only
refining.
However, with entry of private players such as Reliance, Essar Oil and Shell (in the
waiting), the sector is likely to witness increased competition going forward. The oil
PSUs had hitherto developed a fortnightly pricing mechanism, which is likely to
discontinue.
The price of petrol and diesel is artificially kept high so as to cross-subsidize LPG
and kerosene. Since private players will not be bound to provide for these subsidies,
PSU marketing players are likely to suffer from lower throughput per outlet.
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Continuing government interference: During the first six months of the current
fiscal year, the oil marketing companies were refrained from increasing product
prices due to political reasons.
This affected margins of downstream players. Going forward, if the government
interference continues, oil-marketing companies will be at a disadvantage.
Although we believe the industry is likely to witness increased competition, the initial
retail rush by private sector players has slowed down. PSU marketing companies
have already stepped up their expansion plans and to that extent, have created
significant entry barriers for private players.
Although throughput per outlet (sales per outlet) is likely to decline in the future, we
believe that any substantial entry of the private players would indirectly benefit the
PSUs, as the government's pricing policy will not hold much water and the market
forces would determine pricing.
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Suggestions and conclusion
Conclsion
A series of chains and independents filed for bankruptcy in 2011, leaving
more space for oligopolies to develop.
Greece continued to fight against the recession during 2011, with prosperity
indexes being at the lowest level since the start of the economic crisis.
So At now the situation of the Greece is of good that can be done at any
sector high or down
Growth in the tertiary sector is booming. It accounts for nearly three-fourths of
the GDP.
the economic diversification led by the country, industry has replaced
agriculture as a second source of income, behind services, and accounts for
around 20% of the GDP.
Greece had to be saved from bankruptcy by the International Monetary Fund
(IMF) and the European Commission (EC), however the budgetary restriction
measures adopted to restore public finances have taken their toll on growth.
The Greek economy should not recover before 2012 and only if the country
fully implement the restructuring program of its economy.
Page 93
Suggestions
Due to recession in Greece there are so many unemployed people are there
so there government should done a project or make some bonds with
outsiders to create a more jobs and money.
If the people will get good job and good money then they will be a good
customer and from that the Greece can be overcome to the recession
Taking advantage of human capital
"Greece's greatest advantage is its human capital — a highly educated workforce
which is not being utilized and is idle and is being wasted," .
The McKinsey & Company report also found that businesses are hesitant to hire
more workers because of inflexible legal requirements and collective labour
agreements. There is also poor placement of young university graduates.
Tourism
Ioannides said tourism,which makes up 15 per cent of the country's economy,can
improve in terms of "quality as well as quantity."
Ioannides said Greece's tourism must improve its competitiveness. He said
Turkey, for example, is a major competitor, with its Mediterranean coast and
antiquities, while offering packages at a lower prices.
The McKinsey & Company report also found that Greece needs to reform its "sun
and beach" product by developing cruises and nautical tourism and building
necessary infrastructure. The reforms, the reports estimates, could add 18 billion
Euros annually by 2021.
Manufacturing
Manufacturing is the largest contributor to the Greek economy in terms of
contributions to tax revenues and social security.
Page 94
But it lacks scale, modern and productive capacity and innovation.When it comes
to food processing, the report found, Greece has "significant potential" to boost
its output and exports in oils and fats, fruits and vegetables and dairy and bakery
products, as the country has access to high-quality raw materials and produce.
(Ironically, Greece only holds a 28 per cent share of the Greek feta market.)
It should prioritize export markets, the report states, increase its processing
capacity by developing more processing and packaging facilities and establish
the "Greek Foods Company." The private or public-private partnership company
would pool production of small and medium production facilities and develop
wholesale and retail networks in export markets.
These measures and others could add 120,000 more jobs to the economy by
2021, the report states.
Rising stars
The McKinsey report also identifies six rising economic sector stars that "offer the
possibility of significant future growth."
These are manufacturing of generic pharmaceuticals, aquaculture, medical
tourism, elderly care, regional cargo hub development and waste management.
Generic pharmaceuticals
Greece appears committed to increasing its penetration of this market, as
domestic and export sales show "great potential" for growth It suggests that with
some changes, including a campaign that promotes generic drugs, product
quality guarantees and further expansion of export markets, sales could increase
to 2.2 billion in 2021 (from 1.2 billion in 2010).
Aquaculture
While still small in size, Greece's fish farming industry is growing at three per cent
a year and exports 80 per cent of its production. (The country produces almost
half of the world's output of sea bass and sea bream.)
Page 95
The industry's competitiveness could be improved by expanding into Europe and
broadening its products (mussels and larger, pricier fish like blue-fin tuna).
Medical tourism
Greece also has the potential to compete in the rapidly growing "middle market"
of medical tourism but lacks a comprehensive national strategy and needed
infrastructure. For example, the country has only one in-patient facility accredited
by the international monitoring body Joint Committee International.
It should primarily focus on outpatient procedures, like eye surgery, cosmetics,
fertility and create a strong brand and reputation as a medical tourism
destination, the report states.
"There has to be a total aggregate approach to the development of the Greece
economy," Ioannides said. "Has to be an approach that lifts everybody's spirits
up."
Page 96
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