Global Country Study Report

On
STEEPLED Analysis of Tea industry
W.R.T
Business Opportunities for Mauritius & Gujarat
Submitted to
Institute Code 711
Parul Institute of Management & Research - MBA
Under the Guidance of
Prof. Apoorva Kamathania
In partial Fulfilment of the Requirement of the award of the degree of
Master of Business Administration
Offered By
Gujarat Technological University
Ahmedabad
Prepared by:
Divya Thummar (137110592217)
Miral Thummar (137110592218)
Vihar Upadhyay (137110592220)
Vadaliya Kelvin (137110592222)
Vaghani Kinjal (137110592225)
Vandan Pandya (137110592227)
Group No: 10
Students of MBA (Semester-III)
January-2014

DECLARATION
We, following students, hereby declare that the Global/ Country Study Report titled
STEEPLED Analysis of Tea industry W.R.T Business Opportunities for Mauritius &
Gujarat is a result of our own work and our indebtedness to other work publications,
references, if any, have been duly acknowledged. If we are found guilty of copying any other
report or published information and showing as our original work, or extending plagiarism
limit, we understand that we shall be liable and punishable by GTU, which may include Fail
in examination, Repeat study & re-submission of the report or any other punishment that
GTU may decide.

Enrollment No
(137110592217)

Name
Divya Thummar

(137110592218)

Miral Thummar

(137110592220)

Vihar Upadhyay

(137110592222)

Vadaliya Kelvin

(137110592225)

Vaghani Kinjal

(137110592227)

Vandan Pandya

Place:

Signature

Date:

CERTIFICATE
We certified that this Global /Country Study and Report Titled STEEPLED Analysis of Tea
industry W.R.T Business Opportunities for Mauritius & Gujarat is the bonafide work of
Divya Thummar (137110592217)
Miral Thummar (137110592218)
Vihar Upadhyay (137110592220)
Vadaliya Kelvin (137110592222)
Vaghani Kinjal (137110592225)
Vandan Pandya (137110592227)
Have carried out their research under my supervision. I also certify further, that to the best of
my knowledge the work reported herein does not form part of any other project report or
dissertation on the basis of which a degree or award was conferred on an earlier occasion on
this or any other candidate. I have also checked the plagiarism extent of this report which is
10.9 % and the separate plagiarism report in the form of html file is enclosed with this.

Signature of the Faculty Guide

Signature of Principal/Director

PLAGIARISM REPORT

PREFACE

The aim behind to prepare is to gain practical knowledge through experience. To attain
practical knowledge observation and understanding of the actual work situation and
environment is must. In the report present here, sincere efforts have been made by us to
mention the knowledge we attained during the research.
Mauritius is a tourism island which is developing very fast. The economic status of Mauritius
states that by Comparing the inflation rate of the two countries the inflation rate in Mauritius
was 6.5% in 2011 compared to India which was 8.9% in 2011. During the year 2011 the
mortality rate of Mauritius is 6.73 currently estimated unemployment rate is 8.2%. The main
industry in the country is agriculture industry, food processing and in which the mainly sugar
mining industry, textiles industry, clothing industry, chemicals industry, metal products,
transport equipment, nonelectrical machinery, and tourism sector.
Mauritius is a stable economy democracy is followed over there. There are various polices
related to investment are followed like foreign investment policy, monitory policy, fiscal
policy etc.
The social culture of Mauritius consists of Franco Mauritians, Indo Mauritians, and Sino
Mauritians. Official language of Mauritius is English and French. There are various religions
in Mauritius but Hinduism, Muslimism and Christianity are very famous over there.
The vision of it industry is based on a deliberate movement to develop substantially the
national information technology capability of Mauritius. It needs a far-reaching use of IT in
the economy and within the society of Mauritius. The Ecology of Mauritius states that
Mauritius depends more on exports than on imports.
According to the legal environment of Mauritius there are various trade unions. Economic
environment has been set up in Mauritius which facilitates investors to invest in the country.
There are various institutional framework and various trade policies which are to be followed.
Industries are playing major role in any countries. Here also in the Mauritius there are no. of
industries like sugar industry, tea industry, textile industry, Fishery industry, financial
industry, Banking Industry, Agriculture Industry, Tourism Industry and so on. All these
industries are playing major role in the financial condition of Mauritius. But as per our work
we are contributing for some of the industries among that. We are doing analysis of some of
the brightest industries in Mauritius which are known as upcoming growth industry in
Mauritius.
As per our research we can know that the tourist industries are very well developed in
Mauritius. And the market of tourist industries are open for outside so its fruitful for invest in
that industry or its giving some higher facilities than other nation. The tourism sector is
supervised by the Ministry of Tourism and Leisure, the Mauritius Tourism Promotion
Authority (MTPA) promotes Mauritius by conducting advertising campaigns, participating in
tourism fairs and organizing, in collaboration with the local tourism industry, promotional
campaign and activities in Mauritius and abroad. The Tourism Authority (TA) is responsible

for licensing, regulating and supervising the activities of tourist enterprises, pleasure crafts,
skippers and canvassers.
If we talking about the fishery industry than its also developed very well. The government of
Mauritius developed a strict rule for the fishery industry but if any entrepreneur enter in this
business than its helpful for them to earn a high amount of money.
Agriculture industries are developed in Mauritius. In Mauritius about 40 per cent of the
island's surface is being used for cultivation and out of which almost 90 per cent is sugar
cane, the rest is tea, tobacco and food crops. Sugar cane cultivation was the main agricultural
activity in Mauritius since many years.
We are also analysed tea industry in Mauritius they developed a tea sector very well they
known for their different types of tea in the Mauritius. Around 680 hectares lands are under
cultivation for tea. And the main benefit is that they developed latest technology for their tea
industry.
We analyse that the policy of the Mauritius for financing sectors are very strong so many
banking sectors are jump into their economy. Many international banks are there in the
Mauritius.
Textile industries are developed a lot in the Mauritius because they developed different types
of materials in the market.

ACKNOWLEDGEMENT

I would like to thank my department Parul Institute of Management & research(PIMR),

MBA Department, Gujarat technological University, and Dr. P G K Murthy (Director of
institute) for giving us this opportunity of doing a GCSR project to gain financial and
marketing information about other countries which enables me to understand the demands of
the professional market. I am thankful for the experience gained, which has given me
confidence and has enhanced my professional skills so as to become competent.
I started out this project with excitement of embarking on a new and long journey. The
journey has not been a smooth one though. Initially, it was very hard to cope up, learn,
convince and get acquainted with this subject and persons.
I wish to express my heartfelt appreciation to many who have contributed to this project both
explicitly and implicitly. Words can never express the extent of ineptness, but I still wish to
express my deep sense of gratitude to all the people for their valuable time and co-operation,
which they had given me.
I would like to thank my project guide Prof. Apoorva Kamathania for their encouragement
and contribution of time, counsel and materials.

SR.
No

Particular

SUMMARY OF PART I REPORT (MBA III SEMESTER)

SUMMARY OF PART II REPORT (MBA IV SEMESTER)

PARTII: MICRO ANALYSIS: COMPANY /PRODUCT

/SERVICE STUDY.

Introduction of the selected Company / Firm and its Export Import

Trade or Investment (actual or potential) with / in the selected
Country / Province

SWOT analysis

Market Opportunities for Export Import Trade and/or Investment in

selected country

(or Inward Investment into Gujarat / India)

8
9
10
11
12

Policies and Norms of India for Import or export to the selected

country including licensing / permission, taxation, Trade Barriers etc.
Global Strategy Problem of the company / firm with reference to
selected Country / Province / State
Winning Strategies for the Company / Firm
Future Projections of Trade (Export - Import) of the Company /
Firms products or services with selected Country / Province / State
during next 3 to 5 years
Resources required to tap the business opportunity in selected
country

13

Findings & Suggestions

14

Conclusion In terms of Proposed Business Plan / Model/ Business

Strategies

15

Annexure

16

Bibliography
TABLE OF CONTENTS

Page No

EXECUTIVE SUMMERY OF SEMESTER 3

PROJECT TITLE: - STEEPLED Analysis of Tea industry W.R.T Business

Opportunities for Mauritius & Gujarat
Mauritius or Ile Maurice, as it is called in French, is a small island in the middle of the
Indian Ocean. It is located to the east of Madagascar Island, near South Africa
The Island was formed as a result of volcanic activity in the Indian Ocean, millions of years
ago.
The people of Mauritius are descendants of European (mostly French) settlers, the FrancoMauritians; African slaves and creoles, the Afro-Mauritians; Chinese traders, the SinoMauritians; and Indian labourers, the Indo-Mauritians. Such cultural diversity and
geographic isolation have led to a nationalized sense of pride. There is unity in being a
Mauritian despite not having a shared language and customs. For this reason Mauritius is
often
considered
a global
example of successful cultural
integration.
Demography The current population is approximately 1.1 million. The majority live in the
capital and largest city, Port Louis. The population density is one of the highest in the world.
Mauritius has been experiencing an annual average economic growth of 5.5% till 2000.
However, since 2000 it has been on a slowdown path. It reached its lowest rate in 2005 with
2.5% but picked up last year with a growth of 3.8%.The dismantling of the MFA and the
ending of the Cotonou agreement is creating added pressure on the local economy. There is
a high concern for the diversification of the economy and the government is exploring
new avenues. However a number of structural issues have to be addressed to be able to
achieve these objectives.
As per the survey of 2012 Mauritius is having highest GDP and GDP per capita income in
the African Group of countries. In African group of countries Mauritius is considered to be
the freest economy in the terms of investment, climate, and governance. In African
economies also Mauritius is ranked first by the World Bank for five consecutive years. As
per 2012 index of Economic Freedom Mauritius has a fast growth free market.
Trade because of the relatively small size of the island and scarcity of natural resources,
Mauritius have to import huge amounts of goods from countries such as France, South
Africa, and India. Major imports included textiles, petroleum, machinery, metals, and
food.
Major exports include industrial products and sugar. Agricultural products also exported are
tea, peanuts, tobacco, potatoes, tomatoes, and bananas. Exports tend to be centred on the
United Kingdom, France, and the United States. In 1997 the net export value was $1.616
billion (U.S.) and net imports $2.264 billion (U.S.), for a trade deficient of $648 million
(U.S.).

Mauritius - Customs and duties

A value-added tax are 12% levied on all imports

Petroleum, Vehicles, alcohol, cigarettes, and furniture have a special excise duty of up
to 360%.
Most of the imports require a license and state enterprises control to import of rice,
flour, petroleum, wheat, cement, tea, tobacco, and sugar.
The country is also member of the Common Market for Eastern and Southern Africa
(COMESA), which give preferential rates of duty between the member states.

Other Trade Bloc is

ANDEAN (Andean Community)

BSEC (Organization of the Black Sea Economic Cooperation)
CARICOM (Caribbean Community)
ECOWAS (Economic Community of the States of West Africa)
EFTA (European Free Trade)
SAARC (South Asian Association for Regional Cooperation)
SADC (Southern Africa Development Community)

In 1992 Mauritius became a republic. The presidency of the republic is a ceremonial office
only; the president is appointed by the prime minister and the National Assembly, whose
members are chosen via general elections. The prime minister is the leader of the majority in
the National Assembly. In the National Assembly, eight seats in addition to the sixty-two
elected seats are awarded to candidates defeated in the general election: four to those
candidates who fared the best in relation to the other defeated candidates, and four on a party
and community basis. There has been discontent with this system, and a major reworking of
the electoral process has been widely discussed.
The economic success of industry has led to low unemployment rates. This has changed the
workplace and home life as women joined the workforce. This industrialization also led to
women being promoted faster. According to the Minister of Women, Family Welfare, and
Child Development, a quarter of all managers are now women. Women are the traditional
home keepers of the society. Between 1985 and 1991 the numbers of women working
outside the home increased from 22 percent to 41 percent. With that trend continuing, hired
housekeeping and child care have become relatively new and important industries.

Bilateral Trade

India is Mauritius largest trading partner and has been the largest exporter of goods
and services to Mauritius since 2007.
In 2012-2013, India exported goods worth US$ 1.31 billion and imported goods worth
US$ 28.49 million.
Indias exports to Mauritius comprise largely of petroleum products. A three-year
Agreement to supply petroleum products to Mauritius was renewed between the

Mangalore Refinery and Petrochemicals Ltd (MRPL) and the State Trading

Corporation of Mauritius in 2010. This agreement is expected to be renewed also.

Besides petroleum products, main items of Indias exports to Mauritius in 2012-13
were pharmaceuticals, cereals, cotton, electrical machinery, and apparel and clothing
accessories.

Main items of Mauritius exports to India in 2012-13 were iron and steel, pearls,
precious/semi-precious stones and optical, photographic and precision instruments.
Tea (Camellia Sinensis) was introduced in Mauritius by a French priest, Father Galloys in
1760. However under French rule tea cultivation was not a priority and even Pierre Poivre
planted widely in 1770. However, until the advent of the British that he was little more than a
station museum. In the 19th century, Sir Robert Farquhar, the Governor of Mauritius
encouraged commercial cultivation of tea and had a tea garden at Le Reduit. Plantation were
encouraged and reached 190 hectares. Unfortunately, when he left Mauritius, abandoned
farms no one was interested in this scheme.
One of the pioneers was Mr. Raoul Corson. After the Second World War, government
accelerated the development of industry and launched the Tea Smallholding Scheme and the
Tea Project Planters Scheme in 1955
In 1955, the government launched a plan possession of small tea farmers project planning.
Objective of the project is to establish a small tea plantations acquisition of Crown Lands
lease at the end of the day on the long-term nominal rental rates for smallholder tea grouped
in cooperative society.
At present, the government through the Tea Board protects the tea industry locally. Indeed the
Council, as a general principle, do not allow the importation of black tea except for a small
amount for the purposes of blending. Imported tea has to pay for the import license from
5,000 rupees / - for each shipment of any kind of tea imported, which meets the import
decreased 17% of the value of CIF Mauritius and customs duties of 40%. with the general
trend of global trade liberalization, the future of the tea industry local depend on how
successful the government will protect the domestic industry tea to prevent the import in the
country.

History of the company

With blessings from Mahatma Gandhi, Sir Narandas Desai set foot on Indian soil in the
year1982. After gaining experience in tea business as an owner of tea garden in South Africa
which then was mired in racial misgivings that made the continuity of his business a futile
endeavor there.
He started WaghBakri Tea Company in the year 1982, which then was represented by small
company retail shop at Ahmadabad, Gujarat. Since then the growth of the endeavor has been
phenomenal and presently WaghBakri Tea Company has an employee base of professional
managers and skilled personals with ever increasing space for more, to tend to the expanding
group enterprise in India and abroad.
WaghBakri tea house markets various tea brands in loose leaf cartons and tea bags for tea
lovers all over the globe the finest certified black teas from Darjeeling tea estates, Assam
and Nilgiri. The company sells organic black and green tea for the health conscious.

Introduction to Company
WaghBakri Company is a family owned tea business amongst conglomerates and mega corps
that tower the International business scenario all over the world. WaghBakri house is one of
the largest tea producers and sellers in India today. The group is making leading strides in tea
exports and ships in bulk and retail consumer packing to countries all over the world. Its
outstanding performance is credited to excellence in management and a spirit that results into
a quantum jump in annual growth in face of stifling competition and cut throat scenario that
dominates the tea industry today.
Philosophy of the company
Sir Narandas Desai, our founder, believed that his Company was not
just about tea, but more a confluence of his values and beliefs.
Wagh- Of the strong and the meek
Bakri- Of co-existence and harmony.
To make Tea a common denominator that overrides differences of caste, creed, culture or
color.
The same beliefs are reflected in out Corporate Philosophy even today.

Build long lasting relationships through trust and fair play towards all
stakeholders.

Is result oriented. Contribute positively.

Be progressive and lead from the front. Change with the times.

Be socially responsible. Return to the society a share of the gains from

commercial enterprise.

Vision, Mission and Objectives and Strategic Choice

Vision: Build long lasting relationships through trust by maintaining the Quality.
Be result oriented.
Be progressive and lead from the front. Change with the times.
Be socially responsible. Return to the society a share of the gains from
commercial enterprise.
Mission Statement:Serving the Taste of trust
Objectives: Main objective is to become a national player.
Wagh Bakri Tea Lounge objective is to offer consumers tea in a style of
their own and enjoy drinking with their favorite choice of snacks.

Top Management
Top management consists of those executives who have the authority to take the important
policy decision. Top management is referred to as top level or highest level or director level.
It is made up of the board of directors, managing directors and the other key officers.
Top management is found invariably in all types of business organization. It is made up of the
owner himself in the individual proprietorship, active partner in the partnership, firm and
director and chief executive in a joint stock company. The managing committee is treated as
top-management in co-operative society. At the top level management, there is more of
management than administration. The degree of the success of the business unit mainly
depends on the degree of efficiency of its top level management.
The WaghBakri group is led by Mr. Piyush O. Desai, a highly regarded tea expert and tea
taster, with rich experience in the tea business. He plays an active role in the tea industry by

being an involved member and leader of various tea associations. He was the Chairman of
Federation of Tea Traders Association (FAITTA) of India during the years 1998-2002. Mr.
Desai is also strongly committed to philanthropic cause and regularly contributes to the
society.
Supporting him are Mr. Pankaj R. Desai, Managing Director - Finance and Mr. Rasesh R.
Desai, Managing Director - Marketing.
Mr. Pankaj R. Desai has won WaghBakri a respectable, profitable and committed standing in
the financial community. An able tea taster himself, he has over 30 years experience in the
tea industry.
Mr. Rasesh R. Desai has created a formidable Marketing network that is enviable even among
multinationals. Our systems have been a source of emulation for many companies. It also
attracts attention as a case study in premier business schools of India.
Mr. Parag Desai and Mr. Paras Desai, management graduates from prestigious business
schools in United States, are hands-on contributors among the fourth generation of
management.
Mr. Harish Parekh, Ex-Chairman of J. Thomas Company and a veteran tea professional, is on
the Board of Directors. Mr. M.P. Shah, Management Consultant from Mumbai is also part of
management team.

Departmentalization
Meaning:
Departmentalization is the process of grouping activities into unit for purposes of
administration. With the help of departmentalization, an organization can take
the advantage of specialization.
Various activities can be grouped into departments on following several basis;

Functions
Customers
Products
Regions
Time
Process
Combined base

Among the above mention basic, function is the most popular basis of
departmentalization. The enterprise is divided into the departments on the basis
of functions like production, sales, personnel, finance, etc.

From a one man Company to over four hundred employees, the WaghBakri Group is today a
large family.
While a strong sense of family bonding overrides the organization, professionalism is
encouraged by including experts in the team from various fields. The work environment
extends adequate freedom for creative and positive contributions to the organization and
society. In the same light while forging ahead to aggressively tap the packaged food industry,
WaghBakri welcomes talented human resource to share and nurture its success.

Top
Management

Production
Department

Research &
Development

Finance
Department

Quality
Control

Human
Resource
Department

Marketing
Department

Production

Production
Production is regarded as the most important economic activity in the present day world
economy. Production is apart of the business activity. Production is the preliminary objectives
of business. From the society point of new products is of most important because without
production it is impossible to satisfy human needs and desires. Production takes place when
something gifted by nature is transported into a useful product. In other words Production is
defined as creation of activity.
Business of every kind has production function in greater or lesser degree. Several types of
company in particular industry have to do with production. Production is creation of goods
and services but the manufacturing mining, farming, fishing of manufacture is the most direct
concern with production manufacturing changes the form utilizing the goods.

Plant location
When the promoters of an industry take a conscious decision regarding the site
of the industry, it is called location of industry. Location has a very great
influence on productivity, efficiency and profitability of the particular industrial
unit.
The plant base is at Dholka in an impressive spread of 65000 yards with a
modern Processing plant and state of art blending and packaging unit that
conforms to International norms in processing, blending and packaging of the
finest tea for worldwide consumption.

Product Portfolio
WaghBakri tea house dates to the 19th century and is one of the oldest hot tea
brands in India. Narandas a pioneer in tea growing, and blending entered tea
business in India in year eighteen ninety two. Since then the tea company has
grown four fold and is one of the largest tea producer and exporter from Indian
sub-continent. On strength of entrepreneurship he mastered the art of blending
finest organic green tea leaves which undergo less oxidation and for the warm
full bodied flavour, aroma and special taste black tea. Sir Narandas added wide
range of high quality premium teas to buy online of many fine varieties as
oolong, red and white tea for the benefit of tea lovers all over world. WaghBakri
Organic Tea delivers optimum health benefit.

WaghBakri offers a basket full of brands for different need groups and price segments.

Good Morning
True to its name, Good Morning is a blend of premium Assam CTC tea and traces of
orthodox tea which is high on taste and aroma. Its fruity flavour
tempts you to reach for another cup.
In keeping with the Groups high quality standards, the blend is
not offered in the market if good quality tea is not available due
to external factors. No wonder, Good Morning enjoys a strong
customer loyalty.
Good Morning has been rated by experts as one of the best
blends in the world.
Available in pack sizes of 250 Gms. And 500 grams. Soon to be introduced in 100 Gms.
packs too.

Wagh Bakri
Our very raisons deter. A legendary brand with extraordinary brand
loyalty built and preserved painstakingly for more than 5 years. Its
the best selling brand in Western India. Customers are known to
carry along supplies on long and overseas journeys!

A blend of select Assam

teas, WaghBakri is high on strength and instantly
refreshes a person. Consistency of quality
through the years is another feather in our cap. It
is available in Leaf, Dust and Fanning varieties.

WaghBakri (Leaf) with large granules brews a strong and sweet

taste (earning it the sobriquet of Kadak Meethi). WaghBakri
(Dust) with very fine granules is the strongest variety and is
preferred by institutional segment. It produces largest number
of cups per kg of tea. WaghBakri (Fanning) is a blend cut
between Leaf and Dust. It is strong in taste and bright in color.

Available in pack sizes of 25 grams, 50 grams, 100 grams, 250 grams, 500 gram poly
pouches and 1 kg PET jar. Now also available in 500 Gms. Lined cartons.
Special International Blend
WaghBakri is now available for export markets in special packaging.
Available in PET jars of 1/2 lb., 1 lb., 2 lbs. WaghBakri International tea bags are available
for those who prefer tea bags.

Tea Bags

Wagh Bakri Masala Chai Tea Bags

An Aromatic Delight with a Difference now gets more out of your regular cup of tea, with the
WaghBakri Masala Chai. A fine International blend of the rich Assam tea and the spices,
WaghBakri Masala Chai, in every sip, is truly an enticing experience.
The hand plucked leaves are blended with exotic spices, which enhance the flavour of the tea,
and
the
tea
tastes
deliciously
different.
No wonder then, the refreshing aroma of WaghBakri Masala
Chai fills up your senses like never before, cup after cup.

Good Morning Tea Bags (Assam)

Good Morning Tea Bags make for the 'fast and fashionable'
way of drinking fine tea. The Assam blend is available in a
pack of 100 tea bags. These tea bags have a double chamber for faster
infusion of tea, and come sealed in an envelope to keep the tea fresh and flavourful.

Good Morning Tea Bags (Darjeeling)

Good Morning Tea Bags make for the 'fast and fashionable' way of
drinking fine tea. The Darjeeling blend is available in a pack of 100 tea
bags. These tea bags have a double chamber for faster infusion of tea,
and come sealed in an envelope to keep the tea fresh and flavorful.

Wagh Bakri Tea Quick Tea Bags

Tea bags are convenient and hygienic where the normal

elaborate preparation is not feasible. Tea Quick tea bags
from WaghBakri were one of the first ones to enter the Tea
Bag segment. Tea Quick is especially flavored as it creates
a cuppa that is very close to the normally brewed tea.
Moreover, the advanced imported production facility of Tea
Quick produces tea bags free from staple pins.

Available in packs of 25 & 100 tea bags.

Mili
Mili is an ideal brand for those who otherwise prefer
loose tea. Mili offers good taste & strength with
consistent quality and hygienic packaging along
with great pricing value. Mili is a blend of good
Assam teas and comes in Leaf and Dust form. It
comes in an attractive bandhani pack design.
Available in 1Kg Pack and Pet jars of 500 Gms and 250 Gms.

Plant operation
The company produces product range from 1rs. 4gm. packs to 5 kg packs.
It produces on an average 6 lacs packs daily
In 1 single month the company packs 2.5 crores tea packs of various range
Mainly all the machines in the factory are hi-tech excluding few hand operated machinery.
About 8 lacs packs of tea in raw materials form is stored in companys go down.

Quality Control
In the absence of quality control many products may be found defective and worthless at the
end of manufacturing process and may be thrown away as scrap. Quality control avoided
such a situation and saves the cost of labor and materials involved in the production of
defective products. Similarly, it also saves the loss which will arise
out of re-working on the rejected products
It ensures the maintenance of high standards of quality and helps
the concern using it to build their goodwill.
It reduces the expenses of inspection considerably and enables the products to be produced
economically.
If certain products are not up to the desired standard of quality, they may have to be
downgraded and sold cheaper. It maintains the standard of quality and thus enables the
producer to secure the standard price for all products.

Art of Tea Tasting

Tasting is a refined art which encompasses a large number of variables. A tasters palate and
olfactory senses are finely sensitive and highly discriminatory.
An experienced taster can identify the garden, ambient conditions of the plucking day and
can even suggest adjustments in the manufacturing process. A taster uses his sharp sense of
sight, smell, touch and taste while judging the quality of the tea.
A taster must also have an in-depth knowledge about the prevailing market conditions,
consumer preferences and manufacturing techniques while evaluating the tea. These are
endowments of birth - it would be true to say that tasters are born and not made. These
natural talents, however, have to be trained and developed through long years of practice
before the palate is proficient enough to register the minute differences.
Distinguishing between qualities of teas is possible by the human palate only - no wonder this
craft is viewed with a tinge of awe and wonder. The art of tea tasting is valued much at
WaghBakri Group.
The Tasting Procedure
In the tasting procedure, pots and cups made of the finest china, kept spotlessly clean, are
used; 2.5 gm of each tea is weighed into pots and water which has just come to the boil is
poured over it. The pots are then covered with a lid and the tea is infused for either 5 or 6
minutes, depending on the individual tasters preference. The liquor is poured out into a cup
and the tea is ready for tasting.
The colour and evenness of the infusion, as also its nose, are an index to the intrinsic value of
the brew. This examination takes place in a well lit room away from direct sunlight, shade
and shadow. Light from the north, which is steady and uniform, is ideal.
The scrutiny of the leaf and infusion over, the taster turns his attention to the liquor and takes
a sip from the cup, rolls it in his mouth and spits it out. In that split second, the palate
registers the taste - Flavors, Briskness, Strength and any faults and flaws are recorded and the
taster is ready with his judgment.
Market segmentation
A market segment consists of a group of customers who share a similar set of needs and
wants. A company needs to identify which market segments it can serve effectively. Such
decisions require a keen understanding a consumer behavior and careful strategic thinking.
market segmentation have four types they are shown in the following

Geographic segmentation
Demographic Segmentation

Psychographic Segmentation
Behavioural segmentation

Geographic segmentation calls for dividing the market in to different units such as nations,
stats, regions, countries, cities or neighbourhoods.
Demographic Segmentation, the market is dividing in to groups on the bases of variables
such as age, family life cycle, gender, income, social class etc.
Psychographic Segmentation, buyers are divided in to different groups on the basis of
psychological traits, life cycle, or values.
Behavioural segmentation buyers are divided in to different groups on the basis of their
knowledge of product, attitude towards product, use of products and response to the product.
Wagh Bakri Tea
Parent Company

Gujarat Tea Processors & Packers Ltd

Category

Food & Beverage

Sector

Food Products
STP

Segment

People looking to make tea instantly

Target Group

All people in the upper and middle class

Positioning

Healthy tea brand

SWOT Analysis
1.Rich taste and flavour
2.Unique aroma
3.Good packaging

Strength

4.Good advertising/ brand visibility

Weakness

1. Affected by moisture/storage problem

1.Corporate tie-ups/ hotel tie-ups

Opportunity

2.Cheaper packets for rural areas

1.Competing tea brands

Threats

2.Preference for people having coffee or other beverages

Porter Analysis of Wagh Bakri Chai

Threat of New entrants
Encouraging Government Policies Like Food and Beverage Act.
Focus is now on the existing Markets but if Focus changes for tapping the
international markets than this may affect high market share in Gujarat
as national players like HCL and Tata focusing towards these markets.
Bargaining Power of Suppliers
Large Number of Producers of tea in India
Suppliers product create Low switching Cost.
Industry rivalry
Approx 700 tea companies in India having intense rivalry among them
Market dominated by large unorganized players.
Low switching Costs.
Slow Industrial growth
Bargaining Power of Buyers
Large Number of Buyers Buying the Product
Bargaining Power of Buyers is extremely High as many options available
Not Much product Differentiation in terms of taste and also Low
switching Cost.
Buyers Purchase large Proportion of Industry Total Output

Threat of Substitute Products

Substitutes Like coffee, juices, Cold Drinks, etc.
Existing Consumers are Loyal
Substitute Product price may be lower and price war is unavoidable
Substitute Product Quality and Performance may be better
SWOT ANALYSIS of Wagh Bakri
Strengths
The company has an advantage of its marketing research.
The company has the quality consistency in their products and they are
very keen about the quality of their product.
The company has a variety of quality product according to the taste of
consumers.
The company has a great advantage of their goodwill in the market.
Weakness
Though the company has third position in the market, yet they have not
captured the all over world market.
One of the weaknesses of the company is oolong tea, it is mainly
exported but it is not sold in domestic market even if may captured a
good market share.
It is tuff to sell tea in those regions were mainly people are non-tea
drinkers.
Opportunities
To be a Market Leader nationally.
Market Opportunity in Mumbai and to capture the Mumbai Local market.
Launch of Exclusive tea bars ( Opened in Mumbai and now at other
places.)

 Export Potential in some major Countries.

To come up with New flavors of tea apart from
the existing Flavors
New Product Development
Export Potential.
Mergers and Acquisitions.
Threats
Rising inflation, which reduces disposable income of consumers
Threat from loose tea Market Shares.
Competition from MNC
Global Competition
Low Barriers.
Globalization.
The company faces competitions by HUL who has 10% growth in
market.
The company faces severe competition with regional players in some
regions.
Value Chain Analysis
Tea Buying from the Tea plantations in Assam and Darjeeling.
Tea blending ( Mixing of Tea and making it in a powder form to make
different blends of tea)
Tea tasting by the top management
Tea Packaging in Pet Jars, packets and Staple Free bags
Tea Marketing ( Advertisements, Print Ads, Radio, TV)

 Tea Selling ( Online, Retail Stores, distributors, etc)

Retail Outlets and Tea Lounge.

5 Generic competitive strategies

LOW-COST LEADERSHIP:-As name symbolizes Chai for all segments,
Nav-chetan for lower segment people
Mili tea for mass market
Darjeeling tea for the Rich People.
BROAD DIFFERENTIATION: Tea Bags- Staple Free bags ( Only company in india having staple free machines)
Consistent Quality and quality control for all the kinds of tea.
FOCUS STRATEGY BASED ON LOW COST: Mili tea Good Quality at reasonable price.
VERTICAL INTEGRATION STRATEGIES: Backward- By purchasing Tea Plantations for increasing the quality of products.
Forward- Tea Lounge by giving wet sampling.

BCG Matrix

Market Share
High

A
R
K

H
i

Low

g
h

Darjeeling Tea
Organic Tea
Wagh Bakri

Tea Bags

T
L
G
R

o
w

O
W
T
H

INTRODUCTION OF MAURITIUN PRODUCT

Bois Chri is the first tea plantation in Mauritius dates back to 1892.

Tea can hardly be called a trend after all, its been grown, picked, traded
and sipped for centuries. But for the last few decades in the West at
least tea has continually played second fiddle to coffee in the realm of

hot drink worship, receiving nowhere near the level of esteem and
adoration as the beloved bean.
So as it becomes clear that big brand coffee chains are starting to re-focus
their attention on the humble tea leaf with some already opening
specialist tea bars you can be sure theyve been keeping their ears to
the ground. Because tea is back, in a big way, and its emerging from the
teapot into juices, cocktails and the kitchens of innovative chefs in ways
more audacious than ever before.
The Tea Route
Of course, Mauritians passion for tea has never waned, and as a visitor
you can explore this fervor by following the Tea Route at the Bois Cheri tea
plantation a culinary and cultural journey into the history of tea
production in Mauritius.
Under the name of the Bois Cheri Company, the first large-scale Mauritian
tea plantation was established at the end of the 19th century by Messrs.
Bour and Le Breton, and the 250 hectares of land now produce up to 700
tonnes of tea every year, 25% of which is reserved for export.
Domaine des Aubineaux
It all begins in Forest Side, a little way south of Curepipe, where the town
gives way to a more rustic area. Here liesDomaine des Aubineaux and its
gardens, a handsome colonial house-turned-museum filled with antiques,
paintings, vintage photographs and furniture from the East India Company.
Just beyond, and surrounded by aromatic camphor trees, a former stable
houses a distillery where essential oils are extracted in an old still to this
day. To experience how this process translates to modern day varieties,
take an English-style tea break at the old pool room. A wide range of
infusions are offered: flavoured black tea (plain, mint, coconut, bergamot,
earl grey, lemon or vanilla), herbal teas (with ayapana, lemongrass or
ginger) and green teas plain or with jasmine.
Bois Cheri factory and restaurant
All products are manufactured at the Bois Cheri factory itself. Youll pass
by an old locomotives steam engine once used to dry out tea leaves,
while guides explain the various different stages of production, from
harvest and fermentation to drying, sieving and packaging. And you

cannot travel through Bois Cheri without stopping to admire the

panoramic views from the chalet.
Grab a few minutes on its wooden terrace cup of tea in hand and gaze
down on an ancient volcanic crater now transformed into a small lake,
surrounded by century-old trees and shrubs.
For 21st century-style culinary innovation however, youll need to take a
table at the Bois Cheri restaurant. This is the only place where you can
enjoy a most unusual tea chutney a blend of black tea with coriander,
mint, olive oil and grated coconut, served on canaps.
Or opt for one of the young chefs more revolutionary creations, like the
black tea tiger prawns; a delectable
bisque made with tea, finely chopped
onions, butter and parsley, all
simmered in fresh cream and drizzled
over perfectly grilled prawns.
Its the perfect place to witness this
resurgent love of tea in action.

SWOT ANALYSIS OF MAURITIAN TEA

.
SWOT OF CORSON TEA
Strength

The raw-material for tea is supplied by its own supplier

Corson TEA is a leading company in the tea industry in Mauritius.
They have invested in sophisticated machinery to develop new markets.

Weakness

Competition for the sale of a product Mauritius tea in the market is very difficult.
Difficulties in the introduction of mechanization in field operations due to
topographical constraints and quality.
Low declaration on the local market.
Poor distribution because not all products are available everywhere.

Opportunity

Strong level of awareness around the world as to the health of the attribute which led
to the tea growing demand for good quality tea.
Increase the power of small farmers and show a good response to a proposal by the
Tea Board for a collective approach.

Threat

Hurricane hard summer in Mauritius

can produce damage to the quality of
the tea plant.
A younger age than shrubs (better
quality of tea) than other domestic
goods.
Competition must be maintained on
alternative products such as soft drinks
and juice.

BOIS CHERIE TEA FACTORY

Strengths

Continuous innovation to incur value for customers.

FIRST to provide a range of soft in the country.
The pioneers of the nose and throat er green tea in Mauritius.
The only company to offer round tea bags in Mauritius.

Weakness

It is a major obstacle to the Bois Cherie tea to put out in the minds and
Encourage consumers to engage in brand switching.
Most sales issue, distributor cash then they can turn to competitors.
In the long term there will be a lucrative market for tea and ice tea flavour.

Opportunities

In the long term there will be a lucrative market for tea and ice tea flavours.
Market growth of the market because they tea bag intuitive object Continuous
innovation to increase value for customers

Threats

Stable rules and management of public companies hinders tea.

Strong competition in the rural and urban areas
An increase in global tea prices

INTRODUCTION OF FIVE FORCE MODEL for Mauritius Tea Industry

Threat of new entry

Power is also affected by the ability of people to enter your market If it costs little in time or
money to enter the market and participate efficiently, if there are few economies of scale in
place, or if you have little protection technologies major private , you can then enter new
competitors quickly your market and weaken your position.
Mauritius in the country and has a population size 1,291,456 (2012 estimate). Government of
Mauritius is not based on any newcomer to start is own tea estate in the country. Thus an
economy of scale is high.
The Bargaining Power of Suppliers - (High)
This is how suppliers can put pressure on business. If one supplier has an effect large enough
to affect the company's margins and volumes, then it holds great strength. Here are some of
the reasons that may have the power suppliers:
Belle plant tore an annual capacity to 1.2 million kilos. No pipe products 2.0 million kg. All
these factories used Rotorvane / CTC manufacturing method. Nouvelle France has an annual
capacity of .08 million kilos, and makes both Orthodox and ROTOVANE / CTC tea.
Dubreuil, with CLC / CTC manufacture, has the capacity to 2.0 million kg
Low switching cost. Where the

There are a very few number of suppliers for a particular product

And there are fewer alternatives
Raw materials are provided by the company of its own.

Supply industry has a higher profitability of the industry buying.

Bargaining Power of Buyers - (Low)
This is the amount of stress can put customers on business. If one client has an effect
large enough to affect the company's margins and volumes, then the client a great
strength. Here are some of the reasons that clients may have power.

there are large numbers of buyers buy the product

Bargaining power of buyers is very Low, as buyers have a few options available
Buyers purchase a large proportion of the industry's total output
Competition for the sale of a product Mauritius tea in the market is very difficult.

Availability of Alternatives - (Average)

What is the likelihood that someone will turn into a competitive product or service? If the
cost of conversion is low, then this is a serious threat. Below are some of the factors that
could affect the threat of alternatives:

Alternatives available are coffee, juice, cold drinks

Existing customers are loyal

Different flavor in the tea industry is the same as a substitute in the tea industry.

Tradition and culture

Drinking tea and firmly rooted in the traditions of Mauritius. The average tea consumption on
the island is one kilo per head. Mauritius average black tea drinks. Mauritius some of Chinese
descent are taking green tea.
Tea price is much cheaper when compared with coffee. Known as the Queen of the drinks,
tea fascinates millions all over the world. While increasing awareness of the population to
adapt to dietary habits that promote health, it is expected that the average Mauritius will
continue to drink tea as they are getting more and more scientific evidence to confirm that tea
is good for health, and can be consumed to prevent cancer development and reduce the risk of
heart disease.
Competitive Rivalry - (High)
This describes the intensity of competition between existing companies in the industry.
Industries highly competitive generally earn low returns because the cost of high competition.
May result in a highly competitive market of:

Industry growth is slow

The market is dominated by a large number of unorganized players
As is the size of a limited company, but on the other way the retailer of tea is also
able to compete. The dealer or retailer of tea able to compete if the company paid
a sufficient amount of commission or margin on the product.

Agriculture (including plantation) No FDI/NRI Investment is permitted other than Tea sector. FDI,
permitted up to 100% in Tea sector, including tea plantations, with prior Government approval and
subject to following conditions.

Compulsory divestment of 26% equity in favour of Indian partner/Indian public within a

period of five years, and

Prior State government approval required in case of any future land use change.

Tabular representations of the key changes proposed under the FDI Limits are as follows:

Sector/Activity

Tea Plantation

Before the proposal

After the proposal

% of FDI
/Equity

Entry Route

% of FDI /
Equity

Entry Route

100%

Government
Route

100%

Automatic up to
49% Government
route beyond 49%
and up to 100%

Procedures for Imports in Mauritius

1. Registration and Customs Formalities

2. Import Permit
3. Incoterms (International Commercial Terms)
4. Clearing and Forwarding
5. International Terms of Payment
6. Useful Websites

Registration and Customs Formalities

The following registration procedures should be completed by all importers:
Registrar of Companies
Any person wishing to import goods on a commercial basis must hold a Business
Registration Card from the Companies Division..
MRA
Registration with the Mauritius Revenue Authority is compulsory for companies with an
annual turnover exceeding Rs. 4 million.
Customs
All importers must be registered with the Customs Department. On arrival of a consignment,
a company must complete Customs formalities which consist in submitting a Customs
Declaration (also called Bill of Entry) electronically through the Tradenet System giving all
details of the goods imported such as the quantity, value and precise nature of the goods. An
importer may use the services of a Freight Forwarding/Clearing Agent or a Customs Broker
for the Customs formalities and the clearing of goods. Any person who is a registered user of
the TradeNet system may also submit the Customs declaration.
Main Documents for Import

The following documents are required at importation:

Invoice indicating the FOB and/or CIF value of goods

Packing list

Bill of lading / Airway bill

Bill of entry

Insurance certificate (if applicable)

Certificate of inspection (if applicable)

Certificate of origin (if applicable)

Other documents (required by government agencies (e.g health, agriculture and

veterinary services)

Invoice- an invoice is a commercial document issued by a seller (exporter) to the buyer

(importer), indicating the products, quantities, weight and agreed prices for products or
services the seller has provided the buyer.
Packing list- A packing list is prepared by the exporter and it commonly includes all the
details of the package contents, number of packages, carton numbers, net weight and gross
weight and may or may not include customer pricing.
Bill of Lading- A Bill of Lading (sometimes referred to as a BOL, or B/L) is a document
issued by a carrier, e.g. a ship's master or by a company's shipping department,
acknowledging that specified goods have been received on board as cargo for conveyance to
a named place for delivery to the consignee who is usually identified.
Bill of entry- a Bill of entry also known as the Single Goods Declaration is the electronic
declaration accepted and assigned with a number by the Customs Department. It is a proof
that goods have been received for export and/or import.
Insurance certificate(if applicable) - An insurance certificate is a representation of the
insurance policy taken out by the importer or the exporter (depending on the Incoterms) for a
shipment.
Certificate of inspection(if applicable) - A certificate of inspection is required by some
importers and/or importing countries. It is sometimes also referred to as the "Pre-shipment
Inspection" (PSI) certificate and is issued by an independent third party confirming the
buyer's specifications, quantity and value of goods prior to shipment.
Certificate of Origin- The Certificate of Origin indicates the country in which the goods are
manufactured. There are two types of certificates of origin:

Non-preferential Certificate of Origin attests the origin of the products and do not
confer any tariff preferences.

Preferential Certificate of Origin attests that the goods originate from a country with
which a trade agreement has been signed and the goods are eligible for tariff
preferences. The following certificates of origin are accepted by Customs Department
and goods are granted preferential access:
o COMESAcertificates of origin
o SADCcertificates of origin
o IOCCertificates of origin
o Pakistan-Mauritius PTACertificate of origin
o EUR-1 Certificates of Origin

Import Permit:
A limited number of products are subject to import control mainly for health and security
reasons, environmental purposes and national interest.
The table below gives a list of the different permits/certificates on controlled items:
Agency
AFC
ALP
AMB
APC
CFC
DCCB
FA
FDP
HHC
IMP
MF
MOA
MOH
MSBA
MSBC
PHYTO
PoP
TB
TBB

Description
Asbestos Free Certificate
Ministry of Agriculture Landing Permit
Agricultural Marketing Board Permit
Ministry of Agriculture Phytosanitary Certificate
CFC Free Certificate
Dangerous Chemical Control Board
Fisheries Authority
Food and Drugs Permit
Ministry of Agriculture Certificate / Human Hair
Import Permit
Mercury Free Certificate
Ministry of Agriculture Permit
Ministry of Health Authority
Mauritius Standards Bureau Approval
Mauritius Standards Bureau Certificate
Phytosanitary Certificate
Police Permit
Tea Board Approval
Tobacco Board Approval

Procedures for Exports

Registration and Customs Formalities

Export Permits

Incoterms (International Commercial Terms)

Clearing and Forwarding

International Terms of Payment

Useful websites

Registration and Customs Formalities

The following registration procedures should be completed by all exporters:
Registrar of Companies
Any person wishing to export goods on a commercial basis must hold a Business Registration
Card from the Companies Division.
MRA
Registration with the Mauritius Revenue Authority is compulsory for companies with an
annual turnover exceeding Rs 2 million.
Customs
All exporters must be registered with the Customs Department.
The registration form along with the following documents must be submitted to the Customs
Department to process the registration:
o Copy of Business Registration Card (for sole proprietors or partnerships)
o Certificate of Incorporation (for companies)
o VAT Certificate
o Copy of Export Invoice
o Copy of Bill of Lading
o Any other document as may be requested by Customs
The process of registration at Customs is usually done by the Customs Broker or the Freight
Forwarder on behalf of the company.
Any person, who is himself the exporter, can personally file the Customs declaration
provided he is registered at Customs as a declarant and is owner of the Front End System of
the TradeNet. However, because of the technicalities required to file a Customs declaration, it
is recommended to hire the services of a customs broker or a freight forwarding agent.

Commodity Description and Coding System

An exporter needs to be aware of the Harmonised System (HS) codes of the products he is
exporting. The HS is an eight-digit nomenclature for classifying traded products. The first
four digits are referred to as the heading. The first six digits are known as a subheading.
Individual countries may extend a Harmonized System number to eight or ten digits for
customs purposes.
An application for HS Codes classification can be made to the Customs Department which
has the authority to classify goods in Mauritius.
Main Documents for Export
The main documents that are relevant to the exporter are listed hereunder:
o Invoice
o Packing list
o Bill of lading / Airway bill
o Bill of entry
o Insurance certificate (if applicable)
o Certificate of inspection (if applicable)
o Certificate of origin (if applicable)
o Export permit (if applicable)
Invoice- an invoice is a commercial document issued by a seller to the buyer, indicating the
products, quantities, weight and agreed prices for products or services the seller has provided
the buyer.
Packing list- A packing list is prepared by the seller and it commonly includes all the details
of the package contents, number of packages, carton numbers, net weight and gross weight
and may or may not include customer pricing.
Bill of Lading- A bill of lading (sometimes referred to as a BOL,or B/L) is a document issued
by a carrier, e.g. a ship's master or by a company's shipping department, acknowledging that
specified goods have been received on board as cargo for conveyance to a named place for
delivery to the consignee who is usually identified.
Bill of entry- a Bill of entry also known as the Single Goods Declaration is the

electronic declaration accepted and assigned with a number by the Customs. It is a proof that
goods have been received for export and/or import. A bill of entry shows the description and
quantity of the goods.
Insurance Certificate(if applicable) - An insurance certificate is a representation of the
insurance policy taken out by the buyer or the seller (depending on the Incoterms) for a
shipment.
Certificate of Inspection(if applicable) - A certificate of inspection is required by some
importers and/or importing countries. It is a certificate issued by an independent third party
attesting the condition of cargo prior to or after the unloading.
Certificates of Origin- Certificates of origin (CO) traditionally state from what country the
shipped goods originate, but "originate" in a CO does not mean the country the goods are
shipped from, but the country where there goods are actually made.
A preferential certificate of origin is a document attesting that goods in a particular shipment
are of a certain origin under the definitions of a particular bilateral or multilateral trade
agreement. This certificate is required by a countrys customs authority in deciding whether
the imports should benefit from preferential treatment in accordance with the specific trading
area such as the Common Market for Eastern and Southern Africa (COMESA) or the
Southern African Developments Community (SADC), or before anti-dumping taxes are
enforced.

Policy in Tea Sector after Independence

To better safeguard the interest of all stakeholders, the Tea Industry Control Ordinance was repeated

and replaced by the Tea Industry Control Act 1975. The Act established the Tea Board with undue
powers in replacement of the Tea Control Board. Following promilgation of the Tea Industry Control
Act 1975, the TDA and the metayers on private estates which fell outside the ambit of the ordinance of
1959, were included within the purview of the Tea Board. As a consequence, the Board started
determining green leaf prices for TDA smallholders and metayers.
Three-Year Rehabilitation Plan with the Cooperation of the Government of India
In 1990, an attempt to redress the unhealthy situation in the public tea sector, Government
approved a 3-Year Rehabilitation Plan prepared by an Indian Consultancy Team. The rehabilitated
plan was implementedas from 1991-92. The primary objective of the plan, financed jointly by the
Government of India and Mauritius, was to improve efficiency at all levels production,
manufacturing and marketing and thus secure the Industrys viability and profitability.
Agricultural Diversification of Public Tea Sector
Attempts to improve the economy of this industry remained unsuccessful. Mauritius could not
compete with major tea producing countries such as India, Sri Lanka and Kenya because in these
countries, tea is produced at altitude much higher than Mauritius. As a consequence, the quality is
not comparable. To safeguard the livelihood of tea smallholders, government came forward with
the projects to diversify tea to other activities principally sugarcane. A package of incentives was
forward to the tea planter to encourage him to join the project.
Agricultural diversification in the Public Tea Sector started in February 1995. The project aimed at
converting some 2,500 hectares (6,000 arpents) of tea into sugar cane and was originally
scheduled to end in year 2001. With the additional quota of 85,000 tonnes of sugar from the
Eurorefiners, Government decided with the help of the five sugar estates involved in the
conversion of the tea belts, to accelerate the diversification programme. The diversification
programme was completed in August 1999.

The Modern Tea Industry

As from 1999-2000, the tea industry moved into a new phase marked by the following:
(1) Tea Plantation covered an area of about 760 hectares.
(2) Only private tea factories are in operation. These are Bois Cheri, Corson, La Flora and a new
factory La Chartreuse that started in January 2000.
(3) Tea is mainly manufactured for local consumption. Imports were effected only where the return
was higher than the cost of providing the produce on the market concerned.
(4) The guaranteed green price scheme was discontinued. There being no justification for its
continued existence in the new phase.
Future of the Tea Industry in Mauritius
At present, Government through the Tea Board protects the local tea industry. In fact the Board, as
a general principle, does not allow the import of black tea except minor amount for blending
purposes. An importer of tea has to pay for an import licence fee of Rs 5,000/- per consignment for
any type of tea imported, an import levy of 17% of CIF value landed Mauritius and a customs duty
of 40%. With the general trend of liberalization of World Trade, the future of the local tea industry
will depend on how far Government will be successful to protect the local Tea Industry namely to
prevent import of tea to the country.
Irrespective of the outcome of what may happened with development at International level, the Tea
Board envisages to consolidate the tea industry further. To that end, it is proposed to implement
(1) an infilling programme to improve outputfrom exsting area under tea plantation.
(2) the enhancement of the quality of tea manufactured at tea factories through better control of
the standard of green leaf and the manufacturing process. Thus to promote wth a better product.
(3) to develop an adequate marketing strategy for the improved product.

Customs and compliance for importing

the product 2202.90.7 from India into
Mauritius
Customs duties and local taxes applied in Mauritius
Customs duties when
importing from India

Customs duties when importing from countries involved in trade agreements with
Mauritius

15% of CIF value

INDIA:

15% of CIF
value

VAT:
15% of CIF value + duties (customs duty, excise, etc.)
Excise Duty:
0%

The Indian Ocean Rim Association (IORA) was launched in Mauritius on 6-7 March, 1997.
The Indian Ocean Rim defines a distinctive area in international politics consisting of coastal states
bordering the Indian Ocean. It is a region of a diverse mix in terms of culture, race, religion, economic
development and strategic interests.

MEMBERSHIP
The Association comprises the following eighteen members:
1.

Australia

2.

Bangladesh

3.

Comoros

4.

India

5.

Indonesia

6.

Iran

7.

Kenya

8.

Madagascar

9.

Malaysia

10. Mauritius
11. Mozambique
12. Oman
13. Seychelles
14. Singapore
15. South Africa
16. Sri Lanka
17. Tanzania
18. Thailand
19. United Arab Emirates
20. Yemen
The objectives of IORA are

To promote sustainable growth and balanced development of the region and member states.

To focus on those areas of economic cooperation which provide maximum opportunities for
development, shared interest and mutual benefits

To promote liberalisation, remove impediments and lower barriers towards a freer and enhanced
flow of goods, services, investment and technology within the Indian Ocean Rim

PREFERENTIAL TRADE AGREEMENT

At the first meeting of the High Level Task Force (HLTF) of IORA which was held in Colombo, Sri Lanka, in
October 2001, Sri Lanka made a proposal to establish a Preferential Trading Agreement (PTA) for the
IORA. Six member countries namely Iran, Kenya, Mauritius, Oman, Sri Lanka and Yemen have proposed
to enter into a PTA. The greatest challenge would be how to reconcile IORA PTA with the trade regime of
the existing Free Trade Areas (FTAs) and Regional Economic Communities (RECs) in the region. There is
also the question of how to render the eventual IORA PTA compatible with the WTO in view of the fact that
Iran, Yemen are not yet WTO members.

.
N
o.

Name
of
Count
ry

India
Expor
t to
Mauri
tius

S.
N
o.

April-2010March-2011

April-2011March-2012

April-2012March-2013

Value
in INR
Lacs

Valu
e in
US$
Milli
on

713,6
61.96

131
0.80

Value
in INR
Lacs

Valu
e in
US$
Milli
on

Value
in INR
Lacs

Valu
e in
US$
Milli
on

3,86,0
60.70

853.
91

676,9
07.61

140
0.51

Name of
Country

April-2010March-2011
Value Valu
in
e in

April-2011March-2012
Value Valu
in INR e in

April-2012March-2013
Value Valu
in INR e in

%Gro
wth
in INR

%Gro
wth
in
US$

5.43

-6.41

%Gro %Gro
wth in wth in
INR
US$

India
Import
from
MAURITI
US

INR
Lacs

US$
Milli
on

7,51
2.67

16.5
1

Lacs

US$
Milli
on

Lacs

US$
Milli
on

18,14
1.52

38.5
2

15,51
7.22

28.4
4

14.47

26.17

Export Licence
Majority of goods are allowed to be exported without obtaining a licence. Export licenses are only
required for items listed in the Schedule 2 of ITC (HS) Classifications of Export and Import items.
An application for grant of Export Licence for such items must be submitted to the Director General of
Foreign Trade (DGFT). The Export Licensing Committee under the Chairmanship of Export Commissioner
considers such applications on merits for issue of export licenses.
Export of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) items are
also permitted under a licence or prohibited altogether.
Export of Samples
Export of samples upto specified limits are allowed free. The exporter is required to be registered with
the appropriate Export Promotion Council to avail of this benefit. Samples with permanent marking as
"sample not for sale" are allowed freely for export without any limit.
Processing of Shipping Bill
In case of export by sea or air, the exporter must submit the 'Shipping Bill', and in case of export by
road he must submit 'Bill of Export' in the prescribed form containing the prescribed details such as the
name of the exporter, consignee, invoice number, details of packing, description of goods, quantity, FOB
value, etc. Along with the Shipping Bill, other documents such as copy of packing list, invoices, export
contract, letter of credit, etc. are also to be submitted. There are 5 types of shipping bills:

Shipping Bill for export of duty free goods. This shipping bill is white coloured.

Shipping bill for export of goods under claim for duty drawback. This shipping bill is
green coloured.

Shipping bill for export of duty free goods ex-bond i.e. from bonded warehouse. This
shipping bill is pink coloured.

Shipping Bill for export of dutiable goods. This shipping bill is yellow coloured.

Shipping bill for export under DEPB scheme. This shipping bill is blue in colour.

The Bills of Export are:

Bill of export for goods under claim for duty drawback

Bill of export for dutiable goods

Bill of export for duty free goods

Bill of export for duty free goods ex-bond

Let Export Order

After the receipt of the goods in the dock, the exporter may contact the Customs Officer designated for
the purpose and present the checklist with the endorsement of Port Authority and other declarations
along with all original documents. Customs Officer may verify the quantity of the goods actually received
and thereafter mark the Electronic Shipping Bill and also hand over all original documents to the Dock
Appraiser, who may assign a customs officer for the examination of the goods. If the Dock Appraiser is
satisfied that the particulars entered in the system conform to the description given in the original
documents, he may proceed to allow "let export" for the shipment.
Import Duties
The government levies import duties on most of the items imported for trade purposes. These are of
different types including Basic Duty, Additional Customs Duty, True Countervailing Duty, Anti Dumping or
Safeguard Duty and Education Cess.
Payment of Duty

Provisional Deposit Account with Bank: Facilities are available to debit duty amounts
directly from the Banks nominated by Customs. This facility reduces delays in receipt of customs
duties from Importers and also payment of interest after 2 days. Importers are required to open
a deposit account with the nominated Bank and maintain a minimum balance as per the Banks
guidelines. On completion of assessment of the Entries, the importer can authorize debit of the
duty amount against authorization slips.

Payment by Draft/Bankers Cheque: RBI has issued new guidelines to the nominated banks
for acceptance of payments against instruments from nationalized banks only.

Interest: Interest is charged on duties not paid within 2 days.

Bill of Entry
It is a document certifying that the goods of specified description and value are entering into the country
from
abroad.
If the goods are cleared through the Electronic Data Interchange (EDI) System no formal Bill of
Entry is filed as it is generated in the computer system, but the importer is required to file a cargo
declaration having prescribed particulars required for processing of the entry for customs clearance
The Bill of entry, where filed, is to be submitted in set, different copies meant for different purposes and
also given different colour scheme. Bills of Entry are of three types:

Bill of Entry for home consumption

Bill of Entry for Warehouses

Bill of Entry for Ex-Bond Clearance

Details about these and the documents to be filed in case of Non-EDI system can be found
here.
Green Channel facility
Some major importers have been given the green channel clearance facility. It means clearance of goods
is done without routine examination of the goods. They have to make a declaration in the declaration
form at the time of filing of bill of entry. The appraisement is done as per normal procedure except that
there would be no physical examination of the goods. Only marks and number are to be checked in such
cases. However, in rare cases, if there are specific doubts regarding description or quantity of the goods,
physical examination may be ordered.
This facility can be claimed by the Importers who have been approved by the Customs as eligible for
claiming the facility. Importers having a clean record can apply to the Customs (EDI) with a request for
Green Channel facility against a covering letter and enclosing copy of Balance Sheet showing proof of
Duty paid in a year.
Dumping
Dumping is said to have taken place when an exporter sells a product to India at a price less than the
price prevailing in its domestic market. However, the phenomenon of dumping is per se not
condemnable as it is recognized that producers sell their goods at different prices to different market.
However, where dumping causes or threatens to cause material injury to the domestic industry of India,
the Designated Authority initiates necessary action for investigations and subsequent imposition of antidumping duties.
Anti Dumping Guidelines issued by the Government of India must be understood and complied with
while carrying out import of goods.

http://business.gov.in/importexport/procedureexport.php
http://www.mcci.org/trade_procedures_import.aspx
http://agriculture.govmu.org/English/Pages/default.aspx
http://www.mcci.org/trade_procedures_export.aspx
http://www.waghbakritea.com/whatsnew.html
http://www.india-briefing.com/news/import-export-licensing-procedures-india6804.html/