Venezuela: Unsettled Payments!!


Dec 02nd,2015 | International Business|Pune | Lucknow | Panji Mumbai | Jaipur | New Delhi

— Shabab Khan

“. . . Venezuela is not business friendly yet Sun, Glenmark, Dr. Reddy types of Indian companies dared to run their subsidiaries in there.”


New Delhi: Pharmaceuticals Export Promotion Council of India (Pharmexcil)  has urged the central government to work out a medicines for oil barter arrangement with Venezuela.

The proposal has been made as foreign exchange (forex) controls in Venezuela have made repatriation of funds difficult for Indian companies operating there.

Dr Reddy’s, Glenmark, Sun Pharmaceutical and Claris Life Sciences are the top exporters to that market.

Stiff forex regulations have been imposed in Venezuela, following a drop in the price of its main export item, crude oil. These are hurting companies, finding it difficult to receive payments (for sales made in the country) from their subsidiaries in Venezuela.

“This situation is prevailing for some months. We have also received representations from some of the leading pharma exporters to Venezuela. We have recommended to the government for a solution to be worked out on the basis of the present arrangement with Iran or, alternatively, to adjust the payments to be made to Venezuela towards our crude oil imports against the receivables by our pharma exporters in dollar values,” said Pharmexcil director general P V Appaji.

The Confederation of Indian Industry says our embassy in Venezuela is working with local officials to ease the process of doing business but is limited by the fluctuating forex rate, rising inflation and currency controls.
Along with Brazil and Mexico, Venezuela is an important emerging market for Indian pharma companies. Dr Reddy’s earned ₹833 crores in revenue from Venezuela in 2014-15, now its fourth largest market.

Glenmark earned ₹330 Crore revenue from Venezuela last year, about five per cent of its total. “Indian pharma companies continue to serve the Venezuelan market despite not being paid its dues from own subsidiaries in that country. This is in spite of cash available in that subsidiary. Since the products supplied in Venezuela are being manufactured in India, sustaining these operations without our dues being paid is becoming increasingly difficult. Hence the viability of these operations is under threat, despite the severe shortages of medicines that the country is witnessing. We hope both governments take steps to addressing the problems faced by Indian pharma companies,” a Glenmark spokesperson said.

“We have control mechanisms in place to ensure our exposure to Venezuela is within acceptable limits. We continue to supply products to Venezuela within our operating limits,” a Sun Pharma spokesperson said.

“Potential inability to raise debt for any further investment into Venezuela because of inability to repatriate funds for debt servicing could impact project expansions, growth and new investment into the country,” said Raju Kumar, tax partner, EY.

(Author is an Export Entrepreneur, Journalist, and Social Activist)

Are We Being Punished: Exporters

— Like Ayer said Modi’s foreign policy will soon be a national calamity when you’ll see everything wrong and won’t be able then to align the trade export, import.

— Shabab Khan

Contracting for the 11th month in a row, India’s merchandise exports fell 17.53% in October to USD 21.35 billion, mainly due to a steep fall in shipments of petroleum products, iron ore and engineering, amid a broader demand slowdown.

The imports too shrank an annual 21.15% to USD 31.12 bn in October, narrowing the trade gap to USD 9.76 bn, from USD 13.57 bn in the same month last year.

Exports in October 2014 were valued at USD 25.89 billion. Gold imports during the month under review showed a sharp decline of 59.5% at USD 1.70 bn.

The cumulative exports during April-October this fiscal came down by 17.62 per cent to USD 154.29 billion as against USD 187.2 billion in the same period last year, according to data released by the Commerce Ministry.

The trade deficit during the first seven months of the current fiscal has shrunk to USD 77.76 billion as against USD 86.26 bn last fiscal. Oil and non-oil imports in October slid 45.31 per cent and 9.93 per cent to $6.84 billion and USD 24.2 billion, respectively. On the export front, shipments of petroleum products tumbled 57 per cent to USD 2.46 billion while those of iron ore sharply declined by 85.50% to USD 2.95 million. Engineering products were no exception, shipments of which took a knock of 11.65% at a USD 4.57 billion. In September, the country’s exports went down 24.33 per cent.

The country’s imports during April-October 2015-16 too declined by 15.17 per cent to USD 232 billion. Oil imports during the first seven months of the fiscal were valued at USD 54.97 billion which was 42.07 per cent lower than the imports of USD 94.89 billion in the corresponding period last year. Non-oil imports during the period dipped by 0.89 per cent to USD 177 billion. The Commerce Ministry data also said that services exports during September dipped to USD 13.32 billion as against USD 13.58 bn in August this year. Imports of services too decreased to USD 7.45 billion in September as against USD 7.77 billion in the previous month. The trade surplus was USD 5.86 billion in September.

Commenting on the exports figure, Engineering Export Promotion Council (EEPC) said a 17.62 per cent dip in exports in April-October period is really a matter of concern.

“The current fiscal is proving to be one of the worst years for exporters who are facing a huge demand slowdown.”

Many of the SME exporters in the engineering sector are finding it difficult to survive given the kind of squeeze in the global trade,” it said in a statement. It said that there are no prospects of improvement in the immediate future. “The government should immediately help by way lowering interest rates by subventions and clearances of tax refunds without any delays. Besides, the procedural support at the customs will provide some healing touch,” the council added.
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(Author is an Export Entrepreneur, Journalist, and Social Activist

Export/Import: Best Opportunity in India

Export Import

— by Shabab Khan

Are you searching for top profitable import export investment opportunity in India?

Import export investment opportunity can helps an entrepreneur to start a new venture or to grow his/her present business. Import export business also can be initiated as home based basis with a small startup capital investment. As your business grow, you will find lot of expansion opportunity in this business.

The most crucial factors are to identify the right import export investment opportunity and crafting a legitimate marketing plan to get success in this business.

Import Export business is highly regulated by Government Authority. Before starting, you must know which product is profitable for export and which one will generate more revenue from import.

I will soon post an article about a basic guide of how to start an import export business. What formalities you need to fulfill in order to be an Exporter/Importer.

I compiled 10 most profitable import export investment opportunity in India for your ready reference.

List Of Top 10 Import Export Investment Opportunity In India

1. Agro-chemical Import:
Agro-chemical including fertilizer, secondary nutrient, pesticide, insecticides are the products that you can import in India. As agriculture has the major role in Indian economy, these products have high demand in India.

Having contacts with the distributors and retailer you can start this business with proper planning.

2. Copper & Copper Article:
Import Export Copper and copper articles falls under HS code (HTS code) chapter 74.

In India Copper and Copper articles classified under ITC code (Indian Tariff Code) chapter 74.

Copper and copper article export is considered as a profitable import export investment opportunity in India.

3. Electronics Product Import:
Power Wire, fuse, capacitor, earth wire, rubber key pad, PCB board, row socket, screw nut, DIODE bridge, computer accessories are the popular electronics products, India imports in huge quantity.

Having proper contacts of foreign manufacturers basically in China, you can initiate this business with substantial capital investment.

4. Fruits Vegetables Export:
Fruits vegetables export business demands an adequate knowledge about foreign markets. If you are living in an area where fruits and vegetables production is good enough, you can consider to initiate a fruits vegetables export business starting just from your local growers.

The export import sector is hugely organized and you will get sufficient data in your hand. The most beneficial part of this business is, you can start this venture from your home location (will come up soon).

5. Leather Goods Export:

Leather is considered as a most widely traded commodity worldwide. The growth in demand for leather is driven by the fashion industry, furniture, automobile industry and especially footwear.

India is the fifth-largest exporter of leather goods and accessories in the world. Apart from footwear, some of most popular export oriented leather products are belt, handbag, key holders, wallet, folder and gift items such as handbook etc.

A large number of small medium and even large scale companies are involved in producing these products in India. With proper contacts you can tap this opportunity in India. You can contact with The Council for Leather Exports (CLE), which is an autonomous non-profit organisation and is entrusted with export promotion activities and the development of the Indian leather industry.

6. Medical & Surgical Equipment Import:
Different types of high quality medical, surgical and healthcare product can be imported from foreign country. These are very popular import product in India.

You can also make tie ups with foreign reputed manufacturer as an exclusive sales representative in India.

7. Organic & Petrochemical Chemical Export:
India is recognized as a large producer of wide range of organic chemicals. Cyclic hydrocarbons, Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives, antibiotics, Phenols; phenol-alcohols are the popular product for export from India.

8. Precious Metals Import:
Precious metals like gold, silver and gems including diamonds are the most profitable import opportunity in India. India Jewellery market is fully dependent on importing the raw material and the demand is increasing day-by-day.

You may consider starting precious metal and Gem import business in India.

9. Tea Export:
India is the second largest tea producer in the world with production of 1,197.18 million kg in 2014-15. India is ranked fourth in terms of tea exports, which reached 197.81 million kg during 2014-15 and were valued at US$ 619.96 million. Indian tea is popular in all over the world. Processed tea export is considered as a profitable one. You can tie up with the tea growers and make export arrangement of your own.

10. Textile Goods & Garment Export:
India is one of the large producer of cotton. Cotton yarn, textile fabrics and designer garments of India, are very popular in international market.

Currently India has overtaken Italy and Germany, and is now the second largest textile exporter in the world. China is the biggest importer of raw cotton from India. The other major cotton importing countries from India are Bangladesh, Egypt, Taiwan, Hong Kong among others. Textile goods &garment export is considered as one the profitable export investment opportunity in India.

You may contact The Cotton Textile Export Promotion Council (TEXPROCIL), which takes part in national and international events to enhance the visibility of Indian products, advertises and promotes Indian products in various media. EPCH (Export Promotion Council of Handicrafts).

(Author is an Export Entrepreneur, Journalist, Social Activist Against Animal Cruelty …

Marine Insurance

Introduction of the subject:


— Insurance covering the consignment you are exporting by using a shipping agency is a Mandatary term you will find mentioned in Order-Sheet. And, its not expensive at all.

— by Shabab Khan
Export Entrepreneur

Importance of Marine insurance in commerce:

Marine insurance plays a very important role in the field of overseas commerce and internal trade of a country. It is closely linked with Banking and Shipping. Banks generally finance the goods which are transported by ships or by other means of transport in the case of internal trade and Marine Insurance protects such goods a Marine  Insurance  can be  divided broadly  into two  groups…

— Cargo  Insurance
— Hull Insurance

As stated  earlier,  Marine  Insurance is  closely  linked  up with the  trade  of  a  country internal  as  well  as  international.  A  sale contract  which  is  an  essential  feature in  the trade involves  a  seller  and  a  buyer, apart  from  the  other  parties  like  the  carrier, the  bank,  and the shipping agent.  Whether  the insurance  of  the  goods  in transits  is  to  be  the  responsibility  of  the seller  or  the buyer  depends  on  the type of  the sale contract  in  any  transaction.

There are different  types  of  sales  contracts  the most  important  of  which,  as  affecting  the Marine Insurance are:

-F.O.B. (  Free  on Board)  In this  case, the  seller  is  responsible  for  loss  of  or  damage  to the  goods  until  they  are  placed on board the  steamer  for  on carriage. Thereafter  the  buyer becomes  responsible  and  he  has, therefore, the  option to insure  where  he  likes.

-C.I.F. (Cost,  Insurance  and Freight)  In  this  case  the  seller  assumes  responsibility  for the  insurance  and the  insurance  charges  are  indicated in the  invoice  along  with the  other charges.

-C  &  F  (Cost  and  Freight)  In this  case, normally  the  buyers  responsibility  attaches from  the time the  goods  are placed  on  board  the vessel  and  he has  therefore to  take  care of  the insurance.

-F.O.R. (Free  on Rail)  This  is  same  as  F.O.B. but  it  concerns  mainly  the  internal  trade transactions.

Marine Cargo  Policy: This  policy covers  goods, freight  and  other  interests  against  loss  or  damage  to goods whilst being transported by rail, road, sea and/or air.

This  policy  covers  goods, freight  and other  interests  against  loss  or  damage  to goods  whilst  being  transported by  rail, road, sea  and/or  air. Different  policies  are available depending  on  the type of  coverage required  ranging from  an  ALL  RISK  cover  to  a restricted  FIRE  RISK  ONLY  cover.

• This policy is  freely  assignable  and is  basically  an agreed value  policy.

Scope Transportation of  goods  can be  broadly  classified  into three  categories:

1. Inland Transportation:
2. Import
3. Export

The types  of  policies  issued  to  cover these transits  are:

For  Inland Transit:
a. Specific Policy  –  For  covering  specific  single  transit Open Policy.

b. For  covering  transit  of  regular  consignments  over  the  same  route: The policy  can be  taken for  an amount  equivalent  to three  months  despatches  and premium  paid in  advance.

As  each  consignment  is  despatched,  a  declaration  giving  details  of  the  despatch including  GR/RR  No. is  to be  sent  to the  insurer  and the  sum  insured  gets  reduced by  the amount  of  the  declared  despatch. The sum  insured can be  increased any  number  of  times during  the  policy  period  of  one  year;  but  care should  be taken  to  ensure that  ad insured is  available  to cover  the  consignment  to be  despatched.

c. Special  Declaration  Policy  –
equate sum For  covering  inland transit  of  goods  wherein  the  value of  goods  transported during  one  year  exceeds Rs.20 mns. Although the  premium  for  the estimated  annual  turnover  [i.e. the estimated value  of  goods  likely  to be  transported during the  year]  has  to be  paid in  advance,  attractive  discounts  in premium  are  available.

d. Multi-transit  Policy: For  covering  multiple  transits  of  the  same  consignment including  intermediate storage and  processing. For  e.g. covering goods  from  raw  material supplier’s  warehouse  to final  distributor’s  godown  of  final  product.

For  Import/Export:
a. Specific Policy  –  For  covering  specific  import/export  consignment.

b. Open  cover  –  This  policy  which is  issued  for  a  policy  period of  one  year  indicates the  rates, terms  and conditions  agreed upon by  the  insured and insurer  to cover  the consignments  to be  imported or  exported.

A declaration is  to be  made  to the  insurance company  as  and  when  a  consignment is  to  be  sent along  with  the  premium  at the  agreed. The  insurance company will  then  issue a certificate  covering  the declared  consignment.

c. Custom duty cover rate: This  policy  covers  loss  of  custom  duty  paid in  case  goods arrive  in damaged  condition.  This policy  can be  taken  even if  the  overseas  transit  has  been covered by an insurance  company  abroad, but it  has  to be  taken before  the  goods  arrive  in India. Add  on  covers Inland transit  policies  can be  extended to cover  the  following  perils  on pay ment  of additional premium :

i. SRCC  –  Strike,  riot and  civil commotion  (including  terrorist act)

ii. FOB  – Where  the  inland transit  is  required to  be  extended to  cover  the  goods  till they  are  loaded on board  the vessel, this  extension  can  be taken. Export  /Import  policies  can  be  extended to cover  War  and /or  SRCC  perils  on payment  of  an additional  premium. Who can  take  the  policy The  contract  of  sale  would determine  who buys  the  policy.

The  most  common contracts  are:

— FOB (Free on Board)

— C & F (Cost  & Freight)

— CIF (Cost,  Insurance  &  Freight)

In  FOB  AND  C&F  contracts, the  buyer  is  responsible  for  insurance. Whereas  in CIF contracts  the  seller  is  responsible  for  insurance  from  his  own premises  to that  of  the purchaser.

How to  select  the sum  insured: The sum  insured or  value  of  the  policy  would  depend upon the  type  of  contract.

Usually, in addition to the  contract  value  10 to 15%  is  added to take  care  of  incidental  cost.

How to claim:
The  following  steps  should be  taken by  the insured in event  of  a  loss goods insured :

i. Take  immediate  steps  to  minimise  loss or  damage to inform  nearest  office  of  the  insurance  company  or 

ii. Claim  settling  agent  mentioned in the  policy.

In  case  of  damage  to  goods  whilst  on ship or  port, on arrange  for  joint  ship  survey  or port  survey. Lodge  monetary  claim with  carrier  within  stipulated  time  period.

Submit duly assigned  insurance  policy/certificate  along  with  the  original invoice and other  documents  required to substantiate  the  claim  such as:

-Bill of  Lading (B/L)
-Packing List
-Copies  of  correspondence  exchanged with carriers.
-Copy  of  notice  served on  carriers  along  with acknowledgment/receipt.
-Shortage/Damage Certificate issued  by  carriers.

Survey  fees: These fees to be  paid to the  surveyor  appointed by  the  insurance  company. will be  reimbursed  along  with  the  claim if  the  claim is  otherwise admissible. Survey  report  submitted  by  Surveyor.

Hope these basic structure of Marine Insurance will help you in buying appropriate policy for your consignment, for further you are welcomed to contact at:
(Author is an Export Entrepreneur, Journalist, Engineer and Social Activist for Cruelty Against Animals…

Easy-Money Making!!

gold invest

We, the Indians are taken as obsessed with Gold which we use at the time of financial crisis or we simply lock it into our lockers. But now, we can invest passive gold with banks and earn extra grams as return, interest or profit.

SBI, ICICI, UBI and others has launched a ‘Gold Deposit Scheme’ to make use of privately held stock of gold and reduce country’s dependence on imported gold.


This scheme was earlier launched in 1999 but wasn’t successful then. But we think this would be a good time for a bank to make use of high gold prices and thus would make a lot of sense now.

The scheme invites investors to deposit their surplus gold, in any form, with the bank and earn interest on the same.The minimum amount of gold deposit is pegged at 100 grams, however let me explain with 500 grams (1/2 kg), which is probably beyond the reach of general public at large but for high networth individuals, temples (Jagganath) and trusts, this would be a great investment opportunity. The gold which was lying idle in locker of a bank can now earn them interest.

union bank

The gold so deposited with the bank shall be checked for purity and melted at the Government of India mint. A certificate of purity will then be issued by the Government, which can be used by the investor to claim back the gold after the maturity period.

The bank has also clarified that the expenses incurred on as saying of gold shall be borne by the bank and will not be passed on to the customer.

During the investment tenure, the deposited gold will earn an interest, which is currently tagged as 1% (3 years), 1.25% (4 years) and 1.5% (5 years). The investment shall be locked-in for one year.
Premature withdrawal, after the lock-in period but before the maturity, shall attract a penal interest of 0.5% if withdrawn within 3 years and 0.25% thereafter. However, unlike the regular deposits, interest here is calculated in grams and not in rupees. Thus, an investment of 500 grams of gold for three years shall earn 5 grams of gold as interest per annum, compounded annually. At the end of the maturity term, the interest so earned shall be converted into rupee equivalent of gold then and paid to the investor. For the principal investment, investor will have an option to claim back pure gold (0.999 purity) or cash equivalent of gold as on that day.

The scheme is also attractive from tax perspective as the interest earned as well as tax on any capital gains arising from rise in price of gold after maturity is exempt from tax.


Gold so deposited has also been exempted from wealth tax. For small individual investors, this is out of reach. However, investment in Gold (though not in form of jewellery) will make a lot of sense in 2009 and would fetch good return in a 6 months to 1 year time frame.

Reason for that is simple – countries will try to devalue their currencies to be more competitive globally so no investor or bank would have faith in the forex of any country in the short term to medium term. Gold is the best asset class to hedge against that scenario. So, Gold prices are bound to go up in 2011. However, small investors should either buy gold coins which they can easily sell or they can invest in Gold ETFs (Exchange traded funds). The gold prices are currently at Rs. 25000. Sell them when the prices reach 30000.

That would be 20% return on investment within 6 months.

Not a bad deal at all.

A GS Exports Limited Initiative.
&Business Minds™ All Right Reserved.

Investiment: Corn is better than Gold


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 You know what a chicken burger really is, don’t you?

Corn upon corn upon corn, beginning with corn-fed chicken in the patty held together by corn starch and corn-derived food additives between buns containing high fructose corn syrup.

Corn is the secret ingredient in modern processed food as well as hundreds of products on supermarket shelves. Corn is the cornerstone of industrial animal farming and the American ethanol industry. That makes corn the world’s most exciting cash crop. This year, USA alone will grow corn worth more than $70 billion, five times more than what its wheat is worth.

Corn hasn’t yet reached that scale in India. But the excitement is palpable in Asia’s second largest grower.

There are two reasons behind corn’s enormous success as industrial ingredient. One, corn starch is sugar that can be broken down into molecules and reassembled easily.

The second factor was hybrid seed technology that increased corn yields 40% in last 20 years. Today’s corn supply is 70% more than 1988. Higher production per acre has made corn abundant, cheap and able to keep pace with growing demand. So user industries need not worry about the price of corn for the next couple of decades. Its unique combination of molecular versatility and high productivity has made corn the universal darling.

Among the first to discover corn’s economic value was the poultry and livestock industry. Cows and chickens don’t naturally eat corn. But corn-fed animals gain weight faster than normal, thus paving the way for industrial animal farms seeking efficient conversion of grain into animal protein. Almost half of the world’s corn is fed to animals.

Technology helped processed food industry convert corn starch into sweeteners, binders, thickeners and additives. High fructose corn syrup replaced expensive white sugar in colas, salad dressings and desserts.

The latest to join the corn bandwagon is the bio-fuel industry that is fermenting and distilling corn starch into ethanol. Next year, for the first time US will use more corn for ethanol than for animal feed. With rising global demand for animal protein and starch, corn demand is rising too. Countries that don’t grow corn are importing it from USA, Brazil, Argentina and India. International corn trade is now larger than international rice trade. China recently turned net importer.

India is on the threshold of a similar corn revolution. The introduction of high-yielding corn hybrids in the Nineties turned a subsistence cereal into a valuable cash crop for even small farmers in Bihar, Andhra Pradesh, Karnataka, and UP.

Traditionally, corn was a summer crop. But the new hybrids could survive low winter temperatures, off-season diseases and pests and gave two times higher yields. Today India has two harvests, boosting acreage and supply. It turned from importer into exporter.

Simultaneously, higher incomes began helping India shrug off economic vegetarianism. More people can afford chicken, eggs and meat. The availability of affordable feed helped poultry farming shift from backyards to companies listed on the stock exchange.

The continuous tug-of-war for corn between food, feed and starch industries here and overseas has kept prices attractive for Indian farmers and traders. With drought affecting USA’s corn crop this season, international prices are at multi-year highs. That mean

Made in India

Here is a question that was posed to a panel of marketers recently; If “Made in Japan” – stands for quality, and, “Made in China” – stands for price then what does “Made in India” – stand for?

In the last few years, the world has watched in amazement and fascination as Indian companies strode on the world stage making a number of foreign acquisitions. Our track record in M&A has not been great but that is in keeping with the global norm. We are as good or as bad as international companies; just 3-4 companies out of every 10 are successful in delivering share holder value.

Some of our big acquisitions in the last five years include Tata Steel buying Corus, Tata Motors buying Jaguar and Land Rover, Tata Tea buying Tetley, Taj Hotels buying international properties, Hindalco acquiring Novelis and Bharti Airtel buying Zain.

Is this a signal that the ‘Made in India’ tag too has come of age?

Brand India first caught global attention with the IT companies, Infosys, TCS and WIPRO gaining momentum with their work related to Y2K. Since then the IT brand is well established, but in the “low-value added” end of the market. This is the key challenge for Brand India; it is seen as good at “affordable products” but not with any leading technology. Even in the case of Jaguar, Tata Motors bought both the brand and innovation pipeline. They did not export the innovation from India. Mahindras were able to develop an affordable SUV – the Scorpio – as they designed it in India at one fourth the design cost. They are now able to export this to other emerging markets but do not seek to compete in the premium global SUV market.

Take the TAJ hotels abroad; in India they are the epitome of luxury and service. Internationally, however, the TAJ acquired properties are nowhere near the top end, they are in the middle league.

Another export from India is “Good management talent.” IIT graduates are well known in every corner of the world especially in Silicon Valley. And there are several Indian managers who have made their mark in international board rooms. Multinationals like Unilever and Citigroup were amongst the first to spot and leverage Indian talent globally, and today this is being done by many companies.

Over the last decade, India has come to stand for AFFORDABLE Products, and Quality GLOBAL MANAGERS. . .
So can India make successful global brands in the future? Some Indian brands are finding markets in other countries; a few companies have been successful in leveraging their scale in India to be low cost operators in other markets a la Mahindras with the Scorpio. Or through tackling niche markets globally that other MNcs are not focused on, for example Marico and Godrej. They have taken their brands and products to foreign markets and focused on niche segments that are too small for the big multinational companies to serve.

While these brands are successful they remain niche brands serving small consumer segments. Indian companies will find it very difficult to truly build a global brand till they invest in technology like Samsung and LG. Indian spend on R&D is about 0.9% of GDP.

This compares with China at 1.5% of GDP which in absolute terms is second to the US! South Korea spends about 3.4% of GDP, Japan about 3.5% of GDP, and the US about 2.8% of GDP. It almost appears that you need to spend about 3% of GDP to be world class leader in technological innovation.

China, like Korea and Japan, started with companies that used scale to deliver low cost manufacturing. However, a number of Chinese companies are now moving up the technology chain and providing new innovations to China and to the world. BCG recently published a list of the 50 most innovative companies in the world, four of these were Chinese (none were Indian). These were BYD, Haier, Lenovo and China mobile.

While you must have heard of the last three, BYD is an interesting case study- it beat Toyota, GM &Nissan to market with a hybrid car. It has now launched a full electric car with a range of 300km based on its unique battery which costs 50%less than a lithium iron battery and lasts twice as long, and the battery fluid is nontoxic- the CEO drank it in public!

So China will surely develop global brands as Japan and Korea did. It is important to emphasise here that despite the acquisitions, the Tata name doesn’t appear either on Jaguar & Land Rover or on Tetley tea. We need to invest in R&D before ‘Made in India’ tag gains recognition and respect.

Facking Up


How do you check out to see if you have the real thing?

With the recession looming large and fashionable merchandise becoming far too expensive, the temptation to buy a fake chinese product is far greater than ever before. But though this looks like a good option at the time, it is never so,because when you buy a knock-off, you encourage more illegal trade in fake merchandise and you end up demeaning the brand you admire so much.

Cheap manpower and lowest living standard of Chinese skilled work force, efficient to make ditto of original brand. Cheap material cuts the cost of a product, and they dump their low quality stuff in lndia. Samsung Galaxy series comes with 25000- plus in India, while generic version of Chinese Galaxy can be bought for 1500-1800 Rs. But what would happen if retailer sells a generic product at original brand price.

So, what do you do when you can’t discern between a real product and a fake one? This is where you might need help. Don’t go by the price tag alone though that is a good beginning as a genuine article does not come cheap and many luxury brands have hefty price tags. But some manufacturers may charge you heavily for something that is not real and you would not even know.

You are out to buy your favourite Gucci or TopSHABAB Bag.

The first step is to do your research. Check reviews and websites to see what your product must look like.

The second step, say experts is to check the material, finishing and the stitching of the bag. If it is sloppy, loose and unraveling, it is definitely not the real thing. The inside tags must also match what you have seen on the product website.

The lining of a real bag is as important as the outside. This is a clear indication of a genuine article, as much as the logo.

Some accessory websites also give warnings about people trying to imitate their products. For example, one website warns buyers that their bag handles are never wrapped in plastic or bubble wrap and do not have seams running around the bottom of the bag.

Always check out a product completely before buying a fake. It may come cheap but it will not last too long and will fall apart sooner or later. Also remember, you will not fool anyone but yourself by carrying a knock-off around and passing it off as the genuine thing.

In our case, we have applied a never-before system to make sure if you are buying an original TopSHABAB Bag, Carpet, Wallet …
. . .We have setup an automated system. You shall find an Orange and Chalk White Scratch Card in every product. Just check the orange color in our Logo. You must find our brand name in English and Arabic. . .then check the scratch strip at the back of card.

Now scratch and find a random Code e.g. TANGO45, NOVDECJAN …Just sms the code at 55051. Next moment our database would reply with THANK YOU message along with a gift details you win with every purchase. It may be a Wallet, Watch, Rug… If you are lucky you may even win NOKIA LUMIA, SAMSUNG GALAXY, BLACK BERRY… After all, you kicked a fake one by verifying our product.

-Manvi Acharya
(Security and System Admin)