Akij group ib
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The document discusses the international business strategies of Akij Group in India, exploring entry modes for Akij Food & Beverage Ltd and Akij Ceramics. It highlights the opportunities presented by India's large market and cultural similarities, while also addressing challenges such as high tariffs and intellectual property issues. The strategies include exporting, franchising, and greenfield investments to optimize market entry and growth.
Akij group ib
- 2. GL Mousfiur Rahman 10215010 Farhana Rahman 150101001 Shahriar Siddique 1501010033 Tasmon Islam 10215011 Dynamic Developers Team members 1 Member 2 Member 3 Member 4 ID
- 3. Todays Agenda 01 Akij Group Why should Akij Group go for globally Scopes for International Business in India 1 2 02 Akij Food & Beverage Ltd Food & Beverage Market of India Entry modes ( Entering to India ) 1 2 03 Entry of (ATML) & Akij Ceramics Entry Mode for ATML Entry Mode for Akij Ceramics 1 2
- 4. Akij Group Scopes in India • Growing Demand • Large market • Regulatory flexibility • Lower cost • Cultural similarities Why globally? • Exponential Growth • To increase target market • High capital & turnover • Maximum domestic growth • Maintains global standards Akij Group Overview
- 5. Challenges & Opportunities in India 06 05 04 01 02 03 CHALLENGES Intellectual PropertyInfrastructure High Tariffs and protectionist policies Local Content Requirements Food Product Approval Power of States
- 6. IB Opportunities in India Statistics says the population of India will exceed China by 2020 resulting potential growth of new industries, infrastructure, and more. According to the Indian Commercial Guide, the most promising sectors are……………… Aerospace & Defense Education Energy Environmental Technology Travel & Tourism Healthcare Financial Services Agricultural Commodities
- 7. Compatibility of Akij Food & Beverage Ltd Opportunities & Threats Adequate Capital Product range Similarities in values Opportunities and threats Cultural similarities Adequate Capital Product Range
- 8. 19.82 22.38 25.99 30.76 37.18 45.97 0 5 10 15 20 25 30 35 40 45 50 2015 2016 2017 2018 2019 2020 InBillionDollars Year Market size of the food and beverages industry across India from 2015 to 2020 (in billio n U.S. dollars). Source: statista.com
- 9. Entry Mode of Akij Food & Beverage Ltd PHASE 1 PHASE 2 PHASE 3 Greenfield Investments 2022 Final step will be greenfield investment to get the most out of market Exporting AFBL will take its first approach in India through exporting Franchising 2020 If 1st approach goes right AFBL will franchise in India in 2020
- 10. PHASE 1 Exporting Local Indian importer sourcing • Responsive • Varied • From different places • Background analysis Entry Mode of Akij Food & Beverage Ltd
- 11. CAS Exporters D-435 Sampath Nagar Erode 638011 India A G Goel & Sons 203, Ashirwad Building Masjid Bunder (E) Mumbai 400009 India Indoglobal Traders Private Limited Flat No. 101, Amrut Siddhi Bhide Hospital Lane, Navi Peth Pune 411030 India Maega Exports Ind 3-3-780/B Kuthbiguda Hyderabad 500027 India Max Foods B-226 Ashok Vihar Phase -I New Delhi 110052 India Gayatri Exporters 6-3-788/A/45 Durga Nagar Colony, Ameerpet Hyderabad 500016 India The list of our importers (Indian) mentioned below
- 12. Entry Mode of Akij Food & Beverage Ltd PHASE 2 Franchising Attributes include • Lower Capital Requirements • The geographical extent of the country • Cultural Empathy • Harnessing local market knowledge
- 13. Entry Mode of Akij Food & Beverage Ltd PHASE 3 Greenfield Investments The final approach • Maximum profit • Market growth • Product variety • Rapid supply chain
- 14. Textile Mills Limited (ATML) Compatible or Incompatible
- 15. Compatibility of Akij Textile Mills Limited (ATML) Production capacity 40 tons per day, 25 tons combed & carded from Ring Spinning, 10 tons from Schlafhorst Autocoro & 5 tons from BD Rotors. Production Capacity ATML provides its employee managerial & technical training home & abroad by reputed resource person from abroad. Technical Training Machines from Reiter (Switzerland), Zinser (Germany), Trutzschler (Germany) 4 Autocoro from Germany, Eight (08) Rotor machine State -of-the-art Technology Quality is of utmost significance and is therefore very carefully controlled Quality
- 16. Textile Imports from 2002-03 to 2006 – 2007 (US $ Million) Item 2002-03 2003-04 2004-04 2005-06 2006-07 (P) Yarn & Fabrics 509.64 721.24 990.81 1371.90 1449.49 Silk yarn & fabrics 60.55 115.32 178.73 217.87 198.85 Woollen Yarn & Fabrics 20.86 36.55 39.14 46.55 31.94 Other Textile Yarn, Fabrics & Madeup Articles 340.43 427.27 577.15 828.34 900.36 Cotton Yarn & Fabrics 87.80 142.10 195.79 279.13 318.33 *(P) Provisional *Source: Foreign Trade Statistics of India (Principal Commodities & Countries) DGCI&S, Kolkata.
- 17. Entry modes of ATML • Low initial investment • Reach customers quickly • Complete control over production • The benefit of learning for future expansion • It offers low financial risk • Local operating knowledge is en ough to run the business • Costing, timing, customs clearan ce can be done by agents • Transportation arrangements can be done by agents Why Exporting in India?
- 19. What make Akij Ceramics a prominent leader? Market leader Creating superior value Akij Ceramics makes its tiles using cutting-edge-te chnology and machines imported from Germany and Denmark. Akij Ceramics uses international standard machines to deliver the best and competitive designs along with the complete guara ntee of the lifelong durability of its floor and wall tiles which are made in standard universal measur ements. Quality Management In all stage Akij Ceramics is one of the firsts to take the initiative in carbon trading in Bangladesh. In hopes of controlling pollution, Akij Ceramics is providing economic incentives to achieve reductions in the emissions of pollutants
- 20. Entry Mode for Akij Ceramics Direct distribution Indian tile companies have their exclusive showroom/ display centers in cities like Delhi, Mumbai, Kolkata, Pune, Bengaluru etc. This is an expensive model as it requires setting up of showrooms and deployment of staff and sale agents.