Project Report for

International
Business
Group A1
To understand exports of pulses in India by meeting an existing
exporter of pulses and prepare a Business Plan for establishing a
new export business for pulses.

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Table of Contents
Executive Summary ................................................................................................................................ 2
Key Elements of the Business Plan..................................................................................................... 2
Description of Business and Target Markets ...................................................................................... 2
Brief Description of Management Team ............................................................................................ 2
Business History ..................................................................................................................................... 3
History of the Company ...................................................................................................................... 3
Products and Services Offered ............................................................................................................ 3
Pulses .............................................................................................................................................. 3
Domestic-Market Experience ............................................................................................................. 6
Foreign-Market Experience ................................................................................................................ 7
Production Facilities ........................................................................................................................... 8
Personnel-international experience and expertise ............................................................................... 8
Certifications ....................................................................................................................................... 8
Industry Structure................................................................................................................................ 8
Market Research ..................................................................................................................................... 9
Market Decisions .................................................................................................................................. 12
Legal Decisions..................................................................................................................................... 16
Agent/Distributor Agreements .......................................................................................................... 16
Patents/Trademarks/Copyrights Protection....................................................................................... 20
Export/Import Regulations................................................................................................................ 20
ISO 9000 ........................................................................................................................................... 23
Dispute Resolution ............................................................................................................................ 23
Manufacturing and Operations.............................................................................................................. 25
Location of Production Facility for Exports ..................................................................................... 25
Plans for Expansion .......................................................................................................................... 25
Product Modification necessary to adapt to local Environment ....................................................... 25
Personnel Strategies .............................................................................................................................. 26
Personnel needed to manage exports ................................................................................................ 26
Experience and expertise of existing personnel ................................................................................ 26
Training needs of existing personnel ................................................................................................ 27
Hiring needs in the short term and long term.................................................................................... 27
Financial Statement............................................................................................................................... 28
Implementation Schedule...................................................................................................................... 29

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Executive Summary
Key Elements of the Business Plan
The key elements of the Business plan for Smassh Overseas were: Deciding on the target
Countries pertaining to the demand and market conditions, establishing distribution channels,
Promotion strategies, Sourcing of pulses from local market, Legal formalities, Financial
Decisions and Personnel requirement.

Description of Business and Target Markets

Smassh Overseas will be a business involving International Trading of Pulses. The target
markets will be in Turkey and UAE where the demand for pulses is high. Looking at the
export data for past few years, Turkey and UAE have been major importers of pulses from
India. As per International Grains Council, Turkey was world’s third largest Importer of
Pulses in 2017.

Brief Description of Management Team

Personnel Position
Mr. Hrishal Golchha Heads of the Marketing Department
Ms. Shreya Patankar
Ms. Madhura Phatak Head of Operations
Mr. Sumit Jadhav Head of Human Resource and Client
Relationship Management
Mr. Aditya Gandhi Head of Legal Department
Ms. Shradha Mulay Head of Finance Department

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Business History
History of the Company
Smassh Overseas, established in 2019 is an exporter of Pulses. It is engaged in Purchasing
and Exporting Grains and Lentils like Kidney Beans, Whole Chickpeas, Fresh Maize and
much more. The office is located in Vashi APMC Market, Navi Mumbai. The reason for
choosing this location is that the APMC market in Vashi is a big trading Hub where goods
from various parts of India are available at Wholesale Price.
Distance between Vashi APMC and Sea Port Mumbai is 28 kms or 17.4 miles or 15.1
nautical miles.

Products and Services Offered

Pulses
1. Toor Dal (Pigeon Peas)
High in Protein and rich in Fibre. 100% unpolished dal is exported by Smassh Overseas.
India accounts for 72% of area grown to pigeon pea or 3.9 million hectares. In India it is
grown Kalaburagi, Karnataka (Sanganakallu) and its border areas (Tuljapur
Garhi in Maharashtra and Gopalpur in Orissa) and also the south Indian states such as Kerala,
where it is called Tomara Payaru.

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2. Urad Dal (Black Gram)
Also known as White Gram, Urad dal is used in many Indian Snacks. Along with Urad Dal
other products like Urad Chhilka and Urad Gota are also Exported. Urad Chhilka also
known as split Black Gram is a rich source of protein, carbohydrates and vitamin B. Urad
Gota has medicinal uses in Ayurveda and helps improve digestion. Main areas of production
for Urad Dal are Madhya Pradesh, Uttar Pradesh, Punjab, Maharashtra, West Bengal, Andhra
Pradesh, and Karnataka.

3. Chana Dal (Bengal Gram)

Chana Dal is a rich source of Protein, is diabetic friendly, improves insulin response and
lowers blood pressure. It is also a rich source of fibre. In India Chana Dal producing states
are Madhya Pradesh, followed by Maharashtra, Rajasthan, Uttar Pradesh, Andhra Pradesh &
Karnataka.

4. Masoor Dal (Red Lentil)

Excellent source of protein, iron, potassium, fibre and vitamin B1. Smassh Overseas ensures
a quality of pulse that helps lower cholesterol and control sugar. In India Masoor dal is
produced in following states: Uttar Pradesh, Madhya Pradesh, Bihar, West Bengal, Rajasthan,
Haryana, Punjab, Assam and Maharashtra

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5. Chick Peas (Black and Whole) – Bengal Gram
Rich source of protein and high fibre. 100% unpolished lentil produced to ensure good taste
in food. Chick pea contributes about 50% of the total pulse production of India. It is grown
all over India.

6. Red Kidney Beans

Red Kidney Beans popularly known as Rajma in India is a common food crop in the Central
America and Mexico. It is a rich source of protein and has high fibre content. It also helps
improve brain function, control blood sugar levels and weight loss.
It is grown in the states of Maharashtra, Jammu & Kashmir, Himachal Pradesh, Uttarakhand,
West Bengal, Uttar Pradesh, Tamil Nadu, Kerala and Karnataka.

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Domestic-Market Experience
India is the largest producer, importer and consumer of pulses, accounting for 25% of global
production from 35% of global area under pulses. However, the productivity of pulses in
India is 755 kg/ha, whereas in the USA and Canada it is as high as 1,900 kg/ha. The pulses in
India are grown in semi-arid areas which face high rainfall variability adding to high
instability and low productivity. India pulses market reached a volume of 24.2 Million Tons
in 2018.
The major states producing pulses in India are Madhya Pradesh, Rajasthan, Maharashtra,
Karnataka and Andhra Pradesh.
India has the world’s largest pulses sector, producing and consuming diverse pulses. Since
majority of the consumers in India have low incomes, their reliance on pulses as a key source
of protein is high. The pulse protein consumption of an average Indian is barely 10 gm per
day. A significant share of the Indian population is vegetarians and pulses represent the main
source of proteins in their diets.
In the image below we can see that the production of pulses in India increased by 9.07% in
2017-18 as compared to the production in previous year i.e. 2016-17.

Smassh Overseas purchases pulses from local wholesalers in the APMC market Vashi, Navi
Mumbai, Maharashtra. Reason for choosing APMC market as their office location is because
it is close to wholesalers and also close to sea from where the ships transport their export
consignments. This reduces the operation (Supply Chain and Logistics) costs.

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Foreign-Market Experience
In the last fiscal year i.e. 2018-19, India overall exported 2.7 lakh tonnes of pulses — up by
more than 50 per cent from 1.80 lakh tonnes in 2017-18. The pulses exported in 2018-19
were worth of Rs. 1,679.98 crores/ 242.66 USD. Major exports destinations in 2018-19 were
Algeria, United Arab Emirates (UAE), Sri Lanka, Turkey, and United states of America
(USA).

Smassh Overseas exports to Turkey and UAE. The frequency of exports for Smassh
Overseas is once in a week or once in two weeks. The Export Consignments are transported
through ships to the countries mentioned above. Reason for choosing Turkey and UAE to
export pulses is because these countries have less production and India is a leading producer.

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Production Facilities
As we are into Trading of Pulses on Local and International level we do not have a
production facility of our own. We will be purchasing our goods from local wholesalers or
Traders in APMC market Vashi. Criteria of Purchase would be the traders should meet the
quality criteria. We will also have sourcing from a few factories in Indore and Nanded.
Personnel-international experience and expertise
Total number of employees at Smassh Overseas is 20-25 people. These include the Finance
and Accounts Team, Operations (Logistics) Team, Marketing Team and CRM Team.
The Marketing team is expected to have a decent knowledge about tracking international
trade fairs and export events where exporters from different countries meet. Smassh overseas
gets most of its new business from such trade fares.
Certifications
• APEDA
• FSSAI
• Global Standard of Food Safety (BRC Certification Body)
• ISO 22000:2005
Industry Structure
Pulses are considered as a superfood owing to the presence of high levels of dietary fibre,
vitamins, minerals, phytochemicals and complex carbohydrates. Apart from the nutritional
benefits, pulses also assist in improving digestion, reducing blood glucose, minimizing
inflammation, lowering blood cholesterol, and preventing chronic health issues such as
diabetes, heart diseases and obesity. However, their consumption differs from region to
region depending on the dietary patterns, availability and prevailing conditions.
India is a largest producer of pulses (25% of Global Production). Pulses account for around
20 per cent of the area under foodgrains and contribute around 7-10 per cent of the total
foodgrains production in the country. Though pulses are grown in both Kharif and Rabi
seasons, Rabi pulses contribute more than 60 per cent of the total production.
Pulses are grown in different cropping systems such as sequential cropping, mixed and inter
cropping, relay cropping, catch cropping and ratoon cropping.

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Market Research
• Existing Countries: (1) Turkey (2) UAE
• Countries we are planning to expand to in near future: (1) USA
Market conditions in existing countries:

Turkey
Existing Demand
• Lentil consumption in Turkey is about 5 kg per capita annually.
• Pulses production and planting area in Turkey have been declining for many years,
especially in the last decade.
• The International Grains Council (IGC) estimates that the country retained its position of
the world’s third largest pulse importer in 2017, when Turkey imported 16.2 MMT (16.1
MMT in 2016). The country’s share equalled 7% in 2017, the same as in 2016.
Economic Conditions
• Turkey’s economic freedom score is 64.6, making its economy the 68th freest in the 2019
Index.
• Political turbulence spawned by the government’s transition to an executive presidency
has blocked the economic reforms needed to improve the business and investment
climate.
• The bulk price for red lentil was 2.6 TL/kg in early January 2015 and around 4.5 TL/kg in
January 2016. According to market sources, devaluation of the Turkish lira(TL) and to a
lesser extent inconsistent implementation of import regulations contributed to the price
increase.
• Nonetheless, Turkey’s economy has shown resilience, in large part because of its solid
public finances, well-capitalized and well-regulated banking sector, and dynamic,
diversified private business sector.
• In 2017 Turkey imported $214B, making it the 20th largest importer in the world. During
the last five years the imports of Turkey have increased at an annualized rate of 1.1%,
from $205B in 2012 to $214B in 2017.
• With a per capita income of US$ 10,518 in 2014, Turkey is classified as an upper-
middle-income country by the World Bank.
• Turkey's annual inflation rate fell to 9.26 percent in September 2019 from 15.01 percent
in the previous month
Bilateral Trade, India-Turkey
• India’s economic and commercial co-operation with Turkey has deepened over the years
and constitutes an important dimension of the bilateral relationship. India’s bilateral trade
with Turkey has increased significantly by five-fold during the last decade, with a total
trade of US$ 7.5 billion.
• India’s exports to Turkey amounted to US$ 6.9 billion in 2014, accounting for 2.8 percent
of Turkey’s global imports.
• India and Turkey have signed many Agreements over the years to strengthen and deepen
their economic co-operation.

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 1)The Bilateral Trade Agreement between India and Turkey (1973)
2) MoU in the field of agriculture and for co- operation in the Railways.
Competition:
• The top import origins of Turkey are China ($23B), Germany ($22.5B), Russia ($13.2B),
Italy ($11.4B) and the United States ($11.3B).
• Turkish Suppliers:
Pakon Tarim Ltd. Sti - Company was established in August 2007 by CEO Mohammed
Zakir KHAN in the city of Mevlânâ Celâleddîn-i Rûmî in Konya, Turkey.
Products :

• SEDA GIDA MADDELERI A.S - Manufactures and supplies pulses, legumes, rice,
boiled wheat, pounded wheat, red beans, beans, lentils, chickpeas, whole wheat, wheat,
red lentils, yellow lentils, green lentils, yellow split lentil.
Address: Yenice Mah. Cemal Gürsel Cad. No:98/A, Yenice, Tarsus,
Mersin, Turkey
Indian Suppliers:
• SRI MUNISUVRATA AGRI INTERNATIONAL LTD. -HEADQUARTERED IN KOLKATA.

Products:
• Lentil (Masoor) – Black/Red/Split
• Gram (Chana) – Whole and Split
• Pigeon Pea (Toor) – Whole and Split
• Green Gram (Moong) – Whole and Split
• Black Gram (Urad) – Whole and Split
• Beans (Red Kidney, Black, Speckled, White)
• Chick Peas (Kabuli Chana)

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UAE (United Arab Emirates):
Existing demand:
• Imports rose to 323,889 tonnes of lentils to UAE in 2017-18, up from 217,355 tonnes in
2016-17 and 160,658 tonnes in 2015-16.
Economy:
• In 2017 the United Arab Emirates imported $175B, making it the 25th largest importer in
the world. During the last five years the imports of the United Arab Emirates have
decreased at an annualized rate of -0.7%, from $179B in 2012 to $175B in 2017.
• As of 2017 the United Arab Emirates had a negative trade balance of $34B in net imports.
• The economy of the United Arab Emirates is the second largest in the Middle East (after
Saudi Arabia), with a gross domestic product (GDP) of USD 414 billion (AED 1.52
trillion) in 2018.
• Consumer prices in United Arab Emirates fell 2.0 percent year-on-year in August of
2019, following a 2.2 percent drop in July.
Bilateral Trade:
• The UAE has expressed its interest to invest in India's agriculture
• The UAE, which is India's top trading partner in the entire West Asia North Africa
(WANA) region, as it alone represents 75 per cent of India's export to GCC nations, has
seriously taken forward the relations with India.
• Indian exports to the UAE account for 6 per cent of India's global exports.
• During the Indian PM Narendra Modi's visit to the UAE in February 2018, both sides
signed a landmark agreement to conduct trade directly in their local currencies
eliminating the need for US dollars which would significantly boost trade. Both leaders
have also set an ambitious target of US$100 billion in bilateral trade by the year 2020.
• In the financial year 2018-19, India-UAE bilateral trade grew by over 20% to reach
US$59.9 billion.
Competition: The top import origins of the United Arab Emirates are China ($28.6B),
Germany ($12.2B), the United Kingdom ($9.6B) and Turkey ($9.2B).
Indian Suppliers:
• SRI MUNISUVRATA AGRI INTERNATIONAL LTD. -HEADQUARTERED IN KOLKATA.

Products:
• Lentil (Masoor) – Black/Red/Split
• Gram (Chana) – Whole and Split
• Pigeon Pea (Toor) – Whole and Split
• Green Gram (Moong) – Whole and Split
• Black Gram (Urad) – Whole and Split
• Beans (Red Kidney, Black, Speckled, White)
• Chick Peas (Kabuli Chana)

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Market Decisions
Distribution Process Flow:
1. Planning of consignment
2. Hiring Custom House Agent, who will take care of
• Selecting suitable Shipping line.
• Slot booking in the Vessel.
• Container Booking at Competitive rates.
• Insurance arrangement.
• Cargo Consolidation.
• Weighing and measurement services.
• Payment of freight and other relevant charges.
• Arranging transport of containers/goods to the port.
• Custom clearance.
• Documentation formalities.
• Monitoring shipment and follow up with other agencies.
• Arranging “Shipped on Board” bill of lading.
• Assisting exporters for Export promotion schemes and claims.
3. On time delivery to distributor in case of wholesale

Local Vendors Exporter Export Agent

Consumer Retailer Importer

Indirect Exporting-

Indirect exporting – by selling to, or through, a channel partner and is relatively cheap and
straightforward way to enter a new market. – Since we are new entrant and with lack of
network in the foreign country. Indirect export will help enter and expand business

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Distribution Route:
Port of Bombay to Port of Istanbul (Turkey):
Distance-4447nm
Days at sea- 14

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Port of Bombay to Port of Mina Rashid, Dubai (UAE):
Distance-1335nm
Days at sea- 4

Promotion Strategy:
1. Participating in Events & exhibitions:
Participating in exhibitions will help us make personal relations and also give us an
opportunity to share business cards in person. Events & exhibitions are best way to meet
prospective clients and introduce our company to them.

2. Direct Marketing:
• Direct Mail – We will send the mail directly to the importers whom we have met at
the events & exhibitions reminding them about our offerings and informing them
about our products
• Reference Calling – It is a marketing communication system where our trained
specialists will contact importers in South Africa, Kenya, Tanzania and give them
detailed information about our product list, costs, offers etc.
• E-Catalogues – In the catalogue we will include the product range that the company
will send to the importers. It will contain details regarding products, variants (regular
and premium), and promotional schemes along with the product review.

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3. Internet Marketing:

We will use commercial websites like alibaba.com, Indiamart.com for transfer of information
with regards to our product line and the prices of our product. It helps in tracking customer
behavior and adjusts prices of products accordingly. Over Internet, price is the most
important factor differentiating products for online consumers, quality and reputation.

4. Personal Visits:

Personal visits will be one of our key marketing activity. Meeting traders and dealers situated
in various countries will enable us to notice the changing trends, develop a more reliable base
of suppliers and also boost employee morale. Direct interactions provide ground level
information and we will gain useful insights through direct client interactions.

Pricing:
Being a new entrant in the market our goal is to make our presence felt and gradually
increase the market share of our products, the pricing of the products is approximately 2%
less than the average price of the products in the same category.

Product name Selling Price(in USD per metric

tonne)
Red lentils 442
Chickpea 333
Pigeon Peas 225
Black Gram 808
Bengal Gram 505

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Legal Decisions
Agent/Distributor Agreements
1. Appointment of Distributor
The Supplier appoints the Distributor as the Supplier’s Distributor for the resale of the Goods
in the Territory during the period of this contract (the “Term”), subject to the following
provisions: -
• The appointment of the Distributor is exclusive
• For so long as the appointment of the Distributor remains exclusive the Supplier shall
not:
• Appoint any other person as its Distributor for the sale of the Goods in the Territory;
or
• Supply (either by itself or through an agent) any of the Goods to any other person in
the Territory; 5. The Supplier reserves the right to advertise and sell its products
(including the Goods through its website to customers in the Territory)
The Distributor shall not:
• Obtain any of the Good which compete with the Goods for sale from any person other
than the supplier
• Seek customers establish a warehouse or distribution outlet for any of the Goods or
otherwise actively market any of the Goods outside the Territory
Sell any of the Goods to any person outside the Territory.
2. Supply of Goods
The specification of the Goods shall be as set out as per company standards but the Supplier
reserves the right to make any change in the specification of the Goods that is necessary in
order for them to conform with any applicable laws, provided the Supplier promptly informs
the Distributor in writing of any such change that it proposes to make.
The Distributor shall promptly inform the Supplier of any proposed change in the
specification of the Goods which is necessary as per applicable laws in the territory in which
event the Supplier shall promptly notify the Distributor in writing whether it is willing to
change the specification and (if so) any resulting change in the price of the Goods.
3. Procedure of Ordering the Goods
The Distributor shall be responsible to the Supplier for:
• Ensuring the accuracy of each order for the Goods given by the Distributor.
• Promptly giving the Supplier all necessary information relating to the Goods
• Obtaining any necessary import licences or other requisite documents complying with
any applicable laws or regulations concerning the importation of the Goods into the
Territory.
• Upon confirmation of each order the Supplier shall as soon as is practicable inform
the Distributor of the Supplier’s estimated delivery date for the Goods.

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 o The Supplier shall deliver the Goods on the estimated delivery date for each
order.

[Option 1: Liquidated damages for delay]

If there is any delay in the delivery of the Goods [of more than 10 days after the estimated
delivery date] then, unless the delay is due to force majeure, the price of the Goods shall be
reduced by specific % of price.

[Option 2: No liability for delay due to Distributor]

The Supplier shall have no liability for any delay in delivery of the Goods that is due to any
failure by the Distributor to provide any required information in good time.

The Supplier shall use its reasonable commercial endeavours to fulfil its obligations under
this contract: -
If the Distributor’s orders for the Goods exceed the output capacity or available stocks of the
Supplier:
• The Supplier shall as soon as practicable notify the Distributor
• The Distributor shall be entitled to obtain from any other person such quantity of the
Goods as the Supplier is unable to supply until such time as the Supplier has given the
Distributor written notice.

4. Price of the Goods

Except as otherwise agreed in writing between the Supplier and the Distributor, the prices for
all Goods to be supplied under this contract shall be the Supplier’s list prices from time to
time.
The Supplier shall:
• Supply the Distributor with copies of the Supplier’s price lists for the Goods in force
from time to time.
• Give the Distributor not less than 3 months’ notice in writing of any alteration in
those prices and the prices as so altered shall apply to all Goods of that specific good
delivered on and after the applicable date of the increase, including outstanding
orders.

The Supplier reserves the right to increase the price of the Goods to reflect any material
increase in the cost to the Supplier of supplying the Goods subject to giving not less than 3
months’ notice to the Distributor
If at any time the Distributor can establish that the price of any of the Goods exceeds the
price at which a bona fide third party is supplying Goods of a similar specification in
commercially significant quantities and on a regular basis in the Territory of the Distributor,
the price of the Goods shall, at the request of the Distributor in writing, be reduced
accordingly. If the Supplier does not agree in writing to such a request either party may
terminate this contract by giving written notice to the other party.

5. Payment
The price of good shall be payable in advance by the importer and collected by the distributor
of the Supplier’s invoice (which should be submitted before the Goods are despatched)
agreed in writing between the Parties.

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Payment can also be done on the basis of transfer of letter of credit from the importer's bank
to our bank on the basis of credit rating of the importer’s bank and importing country in
general.
No Pre-shipment/Post-shipment finance would be required as most of the transaction would
be done on advance payment basis.
6. Distribution of the Goods
The Distributor shall use its reasonable commercial endeavours to promote, market and
distribute the sale of the Goods throughout the Territory.
In connection with the promotion, marketing and sale of the Goods the Distributor shall:

• Make it clear in all dealings with customers and prospective customers that it is acting
as Distributor of the Goods
• Comply with all applicable legal requirements;
• Provide the Supplier on request with copies of brochures, catalogues, manuals and
other marketing materials used by the Distributor in relation to the Goods;
• Use in relation to the Goods only advertising, promotional and marketing materials
which are approved in writing by the Supplier
• Employ a sufficient number of suitably qualified personnel to fulfil its obligations
under this contract.

7. Confidentiality
Both parties understand and acknowledge that, by virtue of this contract, they may both
receive or become aware of information belonging or relating to the other party, its business,
Business Plans, affairs or activities, which information is confidential and proprietary to the
other party and/or its Suppliers and/or customers and in respect of which they are bound by a
strict duty of confidence
In consideration of such Confidential Information being disclosed or otherwise made
available each party undertakes that it will not at any time either before or after the
termination of the present contract divulge or make unauthorized use of any Confidential
Information, except to the extent to which such confidential information is:
• Is publicly known at the time of its disclosure or being made available to it;
• After such disclosure or being made available to them, becomes publicly known
otherwise than through a breach of this provision;
Is required by law, regulation or order of a competent authority
For United Arab Emirates
Foreign suppliers cannot transact their trading business in the UAE through a mere branch: in
practice, the competent licensing authorities have denied granting branches of foreign
suppliers, licences to import and distribute goods.
Onshore limited liability companies are commonly considered as best suited for an importer
owned by a foreign supplier to transact their trading activity in the UAE. Onshore limited
liability companies are governed by the Company Law. A foreign supplier seeking to carry
out its trading activity in the UAE through a limited liability company should pay particular
regard to the provisions of section 10 of the Company Law, setting out a mandatory
ownership of at least 51 per cent by a UAE national or a company wholly owned by UAE
nationals (the local sponsor).
Distribution structures available to suppliers in the UAE include the use of:

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• Distributors, whereby the supplier and the UAE-established distributor enter into a
distribution agreement governed by UAE Federal Law No. 5 of 1985 on Civil
Transactions;
• Franchising agreements and joint venture agreements governed by UAE Federal Law No.
5 of 1985 on Civil Transactions; and
• Commercial agencies, whereby the principal and the agent enter into a commercial
agency agreement governed by UAE Federal Law No. 18 of 1981 on Commercial
Agencies.
The main laws regulating the relationship between a supplier and its distributor are UAE
Federal Law No. 18 of 1981 on Commercial Agencies (as amended by UAE Federal Law No.
14 of 1998, UAE Federal Law No. 13 of 2006 and UAE Federal Law No. 2 of 2010)
In distribution relationships, distributors may be restricted from engaging in the following
activities with respect to the supplier, product or service:
• Engaging in any unfair trade practices;
• Making false or misleading statements;
• Communicating information with respect to guarantees or warranties to third parties,
except as authorised by the supplier; or
• Disclosing confidential information.

For Turkey
Distribution agreement has not been defined and regulated by the Turkish Laws and
Regulations as a specific type of agreement. Even if it has several characteristics of sale
agreements, it is differed from sale agreements since distribution agreements include different
components of various agreement types. Therefore, distribution agreement may be
categorized as a “sui generis” agreement.

Components of distribution agreements; Distribution agreements include following

components;
1. Continuity: The obligations of distributor such as marketing, sale, promotion of products,
and obligations of manufacturer such as product supply, providing of know-how and
trainings for distributor’s work are continuous. Therefore, distribution agreements are
regarded as continuing obligations.
2. Validity for a certain region: The distribution agreements are valid for a certain region,
which is determined by the parties with distribution agreement. It is essential to determine the
region which are comprised by the agreement.
3. Distributor acts on its own behalf: Distributor sells the products on its own behalf, profit,
loss and commercial risks of which belong to it. However, distributor does not depend on the
manufacturer, it is not an agent of the manufacturer.
4. Marketing, promotion and sale of the products: According to the distribution agreements,
distributor is obligated to promote and take necessary measures in order to protect the
reputation of products.

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Patents/Trademarks/Copyrights Protection
For United Arab Emirates
Effective implementation of the IP-related laws and regulations has been a growing concern
for years, especially in light of long-standing concerns about combatting the sale and
transhipment of counterfeit goods.
IPR Enforcement: Enforcement of IPR takes place generally at the emirate-level. However,
more effective coordinated cooperation is required with the different emirates and customs to
control the transhipment of counterfeit goods. Copyright: Copyrights are protected under
Federal Law. UAE also has yet to grant the necessary operating licenses to establish
collecting management organizations to allow copyright licensing and royalty payments.
Trademark: For trademarks, the high trademark official filing fees in UAE, which replicate
GCC-wide regulations and are amongst the highest in the world, are considered cost-
prohibitive to protecting trademarks in the UAE.
Export/Import Regulations
Additional Export/import regulation from India to any other country
• Get registered with export promotion Council and obtain registration cum
membership certificate from the council
Shall execute a legal undertaking with the Development Commissioner of India concerned
and in the event of failure to achieve positive foreign exchange earning it shall be liable to
penalty in terms of the legal undertaking or under any other law for the time being in force.
For United Arab Emirates
Only firms with an appropriate trade license can engage in importation, and only UAE
registered companies, which must have at least 51 percent ownership by a UAE national, can
obtain such a license. However, this does not apply to goods imported by free zone
companies. The customs duties for most items are calculated on Cost, Insurance, and Freight
(CIF) value at the rate of 5 percent, while many categories are exempted from customs
duties. Alcoholic products are assessed a 50 percent duty, while tobacco products are
assessed a 100 percent customs duty. CIF value will normally be calculated by reference to
the commercial invoices covering the related shipment, but customs is not bound to accept
the figures shown therein and may set an estimated value on the goods, which shall be final,
as far as duty is concerned.
Import Requirements & Documentations: The consignee/agent should obtain a delivery
order from the Shipping Agent and submit original standard trade documentation as per the
following:
• Commercial invoice from the exporter addressed to the importer with details about
quantity, goods description and total value of each imported item
Certificate of origin, stating the country of origin and approved by the Chamber of
Commerce in the country of origin
• Detailed packing list including weight, method of packing, and HS code for each item
• Import permit from the competent agencies in case of importing restricted goods or duty
exempted goods

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• Bill of entry or airway bill
For all food products, the following certificates are required in addition to the above:
• Original health certificate issued by the appropriate government agency in the exporting
country, attesting to the product’s fitness for human consumption
• Original Halal slaughter certificate for meat and poultry products

Labelling/Marking Requirements: The UAE standard UAE S.9: 2017 “Labelling for Pre-
packaged Food Stuffs” replaced the Gulf Standardization Organization (GSO) standard GSO
9:2013. This UAE standard has been approved and published as a technical regulation and is
mandatory. The standard sets the framework for the packaging and labelling requirements of
the UAE. The following labelling information is required in Arabic, either as part of the
packaging or as an affixed label:
• Product and brand names
• Lot identification/lot number
• Production and expiry dates
• Country of origin
• Manufacturer name
• Instruction for storage and use
• Manufacturer address
• Net content weight in metric units
• List of ingredients and additives
• All fats and oils used as ingredients
• Product barcode
• Name of the food, packer, distributor
or importer
• Warning statements, if any
• Nutritional-declaration

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Labels must be in Arabic only or Arabic/English. Arabic stickers are accepted. Note: The
production and expiry dates must be printed on the original manufactured installed
label. Companies should consider cultural norms and values when designing and developing
product packaging.
Customs: In general, goods destined for the U.A.E.'s Customs Zones are subject to duty
under the GCC's Common Customs Law while goods destined for Free Trade Zones are
exempt from duty. The U.A.E. is house to around thirty seven Free Trade Zones.

Goods being imported into Free Trade Zones are exempt from duties. Also, re-exports from
U.A.E. Free Trade Zones to a third market destinations beyond the GCC Customs Zones are
also exempted from any duty. However, such goods when imported with the intention of re-
exporting them as a whole or partially to another country, a Deposit or Guarantee equivalent
to the applicable tariff amount on the goods shall be secured in lieu of Customs Duty.
For Turkey
Import Duties: Trade remedies continue to be an important policy tool for Turkey, as it is
one of the WTO's main users of safeguard and antidumping measures.
Customs surcharges include a value-added tax (VAT) levied on most imported, as well as
domestic, goods and services. The importer is responsible for paying the VAT. The VAT is
calculated on a Cost Insurance Freight (CIF) basis plus duty rate and any other applicable
charges levied before the goods clear customs. The VAT for most agricultural products
(basic food) ranges from 1% to 8% and can reach up to 18% for some processed
products. Capital goods, some raw materials, imports by government agencies and state-
owned enterprises, and products for investments with incentive certificates are exempt from
import fees.
Import Requirements & Documentations:
• Importer’s License
• Importer’s Documentation
• Conformity Compliance
• Certificate of Origin
• Bill of Lading / Airway Bill
• Proforma-Invoice

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Special Import Requirements
All packages, cases, and bales must bear shipping marks, numbers, dimensions and the gross
weight of the merchandise. Packages along with accompanying bills of lading for goods to be
shipped through Turkey must be marked "In Transit."
ISO 9000
ISO 9000 is a set of international standards on quality management and quality assurance
developed to help companies effectively document the quality system elements to be
implemented to maintain an efficient quality system
We would customize any ISO or business process training to teach our staff what their
responsibilities are in regards to the standards and the well-being of the organization. We
would provide additional training in the chosen standard to enhance employee understanding.

Steps required for ISO registration

• Apply for ISO certification online ISO application form needed to provide complete
business details including the nature business, company address, years of operation
etc.
• ISO audit: An ISO audit is conducted based on the documents provided. The central
ISO company checks for the genuineness of all the documents and confirm whether
the company is eligible for the ISO certification or not.
• ISO decision: Subsequently ISO certification decision is taken by ISO authority based
on defined procedures & an ISO certificate is issued for your organisation.
• ISO yearly renewal: Every year a surveillance audit is conducted to ensure continued
adherence to your quality management system to the requirements of ISO standards.

Benefits of ISO registration

1. Get government tenders
2. Build credibility internationally
3. Better customer satisfaction by meeting customer requirements
4. Improve product quality
Improve business efficiency
Dispute Resolution
For United Arab Emirates
In proceedings before UAE courts, a party’s (or third party to the claim) duty to disclose (and
allow inspection) arises only if and when the court makes an order for specific disclosure. It
is worth noting that UAE courts have seldom made orders for such disclosure.
Moreover, the following are interim remedies available to litigants before an UAE onshore
court: 1. application for summary judgment; 2. Interim injunctions; and 3. Interim cost
orders.
Security for costs orders - made pursuant to a defendant’s application, if it is concerned that
the claimant does not have sufficient funds to meet the costs of the proceedings if the action
is successfully defended - are not available under UAE civil procedure rules.
Finally, the general principle under UAE civil procedure rules is that the unsuccessful party
will be ordered to pay the costs of the successful party. However, in practice, an award of
costs in the UAE is usually restricted to litigation disbursements such as court fees and expert

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fees. Only rarely have parties to a dispute been able to recover the fees of their legal
representatives in full.
For Turkey
An arbitration agreement shall include the explicit common consent of the parties to submit
their dispute to arbitration. Moreover, the arbitration agreement must be in writing. The
arbitration agreement must be based on an existing, legal relationship. In this respect, the
parties may agree to submit disputes that have arisen, or that may arise, from this
relationship.
Depending on the scope of the dispute and the arbitration institution to be chosen, arbitration
may cost more for the parties with regard to litigation before state courts. Nevertheless, by
referring their disputes to arbitration, the parties may finalise their dispute within a shorter
period of time. Arbitration proceedings will also address the confidentiality concerns of the
parties, as the proceedings will not be open to the public.

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Manufacturing and Operations
Location of Production Facility for Exports
Maharashtra State is the second largest producer of pulses with 3.5 million ha. area under
its cultivation. There is a huge yield gap across pulse growing districts in Maharashtra –
Akola, Parbhani, Latur, Nanded and Amravati. Certain districts including Akola and Jalgaon
are the major processing and trading hubs.
Smassh Overseas being a trader of pulses, we are planning to setup office in Vashi APMC
market and source the pulses from certified Manufacturers of pulses. In order to source the
pulses from a manufacturer the manufacturer should be an ISO, APEDA and FSSAI certified
manufacturer of pulses.
Below is the list of a few pulses manufacturers from Nanded, Amravati and surrounding
region.
• Shri Krishna Pulses, Delgoor Street, Nanded
• Shri Govind Dal Mill, VIP Road, Nanded
• R. K. Enterprises, NIT Complex, Nagpur
• Neha Pulses, Akola MIDC, Akola
• Banke Bihari Udyog, Akola
Product name Buying Price (in USD per metric
tonne)
Red lentils 400
Chickpea 290
Pigeon Peas 150
Black Gram 705
Bengal Gram 465

Plans for Expansion

Initially for 2-3 years we will be trading pulses. Purchase them from local manufacturers in
India and export. Later we are planning to setup a manufacturing facility of our own in
Nanded or Akola MIDC, because these are the two places where we can source unprocessed
pulses from local farmers.
Also along with Turkey and UAE, we are planning to expand our exports to countries like
USA, Canada, Sri Lanka, Algeria (African Country).
Product Modification necessary to adapt to local Environment
Polishing and special processing to protect from insects is required. Also pulses can either be
sold as whole pulse in their natural form or as split pulses. This completely depends upon the
client and the country where the export order will be going.
There are a few packaging requirements for UAE and Turkey wherein in UAE the imported
package should have all the details written in Arabic.

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Personnel Strategies
Personnel needed to manage exports
• Marketing and Sales team
• Shipping Team
• Customer Service Team
• Operations team
• Accounts and Finance team

Experience and expertise of existing personnel

1. Marketing and Sales team
The marketing and sales team is undoubtedly a crucial part of making the business run,
but if they aren’t educated on exporting, they may be making promises to customers they
may not be able to keep. There are certain export-related topics they need to understand,
like
1. Technical Specifications
2. Incoterms 2010
3. Duty Rates
4. Export Controls
2. Shipping team
While the shipping department isn't generally overlooked when companies enter or
expand their exporting, it doesn't always get the additional influx in resources it generally
needs. The shipping department isn't just going to start moving more goods out the door,
they are going to face new challenges they will probably be unprepared to face without
proper training.
• Transportation Options
• Export Documentation
• Vendor Partnerships
• Insurance

3. Customer Service team

Depending on where in the world you plan to export, we may need to accommodate
different time zones and different languages. While we may have addressed these issues
with your international sales department, companies don't always initially consider how it
will impact their customer service representatives.
• Pre- and Post-Sale Support
• Export Documentation

4. Operations team
• The Foreign Corrupt Practices Act
• Potential Export Liabilities
• Deemed Exports

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5. Accounts and Finance team
Starting or growing company’s export efforts adds additional challenges to the accounting
department. The standard ways of doing business domestically become inadequate or
simply won’t work when dealing with international markets.
Trade terms that you use in domestic market (India) aren’t recognized and won’t work
when doing business internationally. Determining how to get paid and in what currency
add new variables to your operations. And most accounting or ERP systems are biased
towards domestic business and may need modifications or upgrades to handle
international transactions.
Your chief financial officer, controller, and accounting department need to understand
important differences in international trade.
• Incoterms 2010
• Knowledge about various financial reports (Balance sheet, Cash flows, P&L, etc.)
• Duty Rates
• Letters of Credit
• Assessing Risk

Training needs of existing personnel

Training needs as per changing times and as per the client’s requirements and modifications
to be made accordingly.

Hiring needs in the short term and long term

The core teams are long term hired employees working with the company.
Temporary labourers and workers are hired on contractual basis from third party.

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Financial Statement
Cash flow for 1 year (January 2019 to December 2019)

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Implementation Schedule

Activity Time

Appointment of the Agent 10 days

Search for Prospective clients 1 months

Getting Queries & Confirmation 15 days

Advance payment period 3-4 days

Manufacturer’s production time 1 month

Inspection, quality check by customs 10 days

Documentation 3-5 days

Shipping 20 days

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