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Pasta Import - India
December 2008
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2PASTA IMPORT INDIA.PPT
SAMP
LE
Executive Summary
Market
Drivers &
Challenges
Entry Route
Rules and
Regulations
Drivers: Consumers developing tastes for international cuisines,
strong growth in organized retail,
and government policy towards boosting the industry
Challenges: Lack of widespread consumer awareness, duty and tax
structure, inconsistent
supplies, and competition from unorganized sector
Estimated worth USD XX mn in 2008
Unorganized sector has a monopoly over domestic production
Largest exporter is A
B and C are the most popular brands
Two possible approaches
Importing though agents
Setting up local operations
Importing through agents is the preferred route for foreign
brands
Developing manufacturing unit locally is economically
unjustified
Pasta imports attract specific import duties and local taxes
Food safety norms set by the government need to be followed
The law requires specific information to be displayed on the
packaged good
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3PASTA IMPORT INDIA.PPT
Market Overview
Drivers & Challenges
Entry Route
Rules and Regulations
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4PASTA IMPORT INDIA.PPT
SAMP
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Italian is a popular cuisine in India and is driving growth in
pasta
imports
Food imports are increasing by a% p.a.
Italian food and especially pasta is one of the
most popular foreign cuisines, predominantly
in urban areas
Domestic production exists with unorganized
sector accounting for b% of the market
However, there is a healthy demand for
imported pasta, which has grown:
u% p.a. by value
v% p.a. by volume
Uncooked pasta accounts for the bulk of imports
although other types (except uncooked or stuffed)
category is growing extremely fast
X and Y are two popular imported brands
Overview
Source:
Size and Growth
Largest Exporting Countries (2003-2008)
Country 1
w%Country 2
u%
Others
v%
0
2
4
6
8
10
0
200
400
600
800
1,000
1,200
2004 2005 2006 2007 2008
Volume
Value a%
USD mn 000 kg
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5PASTA IMPORT INDIA.PPT
Drivers & Challenges
Government Initiatives
Growth in organized retail industry
Demand generated due to changing
tastes and attitude
Drivers
Inconsistent supplies
Government rules and regulations
Competition from unorganized sector
Creating Awareness
Challenges
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6PASTA IMPORT INDIA.PPT
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Import of pasta is subject to duties and taxes, food safety
rules
and mandatory packaging information
Duties and taxes:
Basic import duty, additional duty, education cess,
Octroi, central sales tax, and VAT
Various food safety rules also need to be
adhered to such as Prevention Of Food
Adulteration Act
Packaging must display the following:
Name of company and address of manufacturer
Green or red sticker indicating vegetarian or non-
vegetarian product
Name and contact details of importer
MRP, Month of import, Shelf life
Ingredients used as per PFA
Rules and regulations Duties, taxes and estimated margins
Source:
f% of total dutyEducation cess
e%Custom cess
d%Excise cess
c%Spl. Additional Duty
b%Additional Duty
a%Basic Import Duty
Import Duty
z% (Mumbai)Octroi (variable; municipality/district level)
y%Central Sales Tax (inter-state sales)
x%VAT (state level)
Domestic Taxes
w%Retailer (% of retailer cost)
v%Distributor (% of Distributor Cost Price)
u%Importer (% of landed cost)
Estimated Margins
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7PASTA IMPORT INDIA.PPT
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