gcsr final report-6pdf

8/9/2019 Gcsr Final Report-6pdf

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PART-ICOUNTRY STUDY OF THE MALDIVES.


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ABOUT COUNTRY

OF STUDY


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Overview of the Maldi ves

Maldives, officially the Republic of the Maldives and also referred to as the

Maldive Islands, is an island nation in the Indian OceanArabian Sea area,

consisting of a double chain of twenty-six atolls, oriented north-south, that lie

between Minicoy Island (the southernmost part of Lakshadweep, India) and the

Chagos Archipelago. The chains stand in the Laccadive Sea, and the capital,

Male is about 600 kilometres (370 mi) south-west of India and 750 kilometres

(470 mi) south-west of Sri Lanka.

Maldives has been an independent polity for the majority of its history, except for

three periods in which it was ruled by outside forces. In the mid-16th century, forfifteen years, the Maldives was dominated by the Portuguese Empire. In the mid-

17th century, the Dutch Empire (Malabar) dominated Maldives for four months.

Finally, in the late 19th century, osn the brink of war, the Maldives became a

British protectorate from 1887 until 1965. The Dutch referred to the islands as the

"Maldivische Eilanden" (pronounced [mldivis ilnd(n), while the British

anglicised the local name for the islands first to the "Maldive Islands" and later to

the "Maldives". The islands gained independence from the British Empire in

1965, and in 1968 became a republic ruled by a president and an authoritarian

government.

The Maldives archipelago is located on top of the Chagos-Maldives-Laccadive

Ridge, a vast submarine mountain range in the Indian Ocean. Maldives also form

a terrestrial ecoregion together with the Chagos and the Lakshadweep.The

Maldives atolls encompass a territory spread over roughly 90,000 square

kilometres (35,000 sq mi), making the country one of the world's most

geographically dispersed. Its population of 328,536 (2012) inhabits 192 of its1,192 islands.In 2006, Maldives' capital and largest city Mal, located at the

southern edge of North Mal Atoll, had a population of 103,693. Mal is one of

the Maldives' administrative divisions and, traditionally, it was the "King's Island"

where the ancient Maldives royal dynasties were enthroned..


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The Maldives is the smallest Asian country in both population and land area.

With an average ground level elevation of 1.5 metres (4 ft 11 in) above sea level,

it is the planet's lowest country.[15] It is also the country with the lowest natural

highest point in the world, at 2.4 metres (7 ft 10 in).[15] Forecasts predicting

future inundation of the Maldives due to rising sea levels are of great concern to

its people.

Demographic profile of the country

Population: 393,595 (July 2014 est.)

Age structure: 0-14 years: 21% (male 42,154/female 40,490)

15-24 years: 23.4% (male 53,760/female 38,385)



65 years and over: 4.3% (male 7,974/female 8,807)

(2014 est.)

Dependency ratios: total dependency ratio: 50 %

youth dependency ratio: 42.7 %

elderly dependency ratio: 7.4 %

potential support ratio: 13.6 (2014 est.)

Median age: total: 27.1 years

male: 27.3 years

female: 26.7 years (2014 est.)

Population growth rate: -0.09% (2014 est.)

Birth rate: 15.59 births/1,000 population (2014 est.)

Death rate: 3.84 deaths/1,000 population (2014 est.)+


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Net migration rate: -12.67 migrant(s)/1,000 population (2014 est.)

Urbanization: Urban population: 41.2% of total population (2011)

rate of urbanization: 3.91% annual rate of change

(2010-15 est.)

Major cities population: MALE (capital) 132,000 (2011)

Sex ratio: at birth: 1.05 male(s)/female

0-14 years: 1.04 male(s)/female




65 years and over: 0.94 male(s)/female

total population: 1.34 male(s)/female (2014 est.)

Mother's mean age at first

birth:

23.9

note: median age at first birth among women 25-29

(2009 est.)

Infant mortality rate: Total: 24.59 deaths/1,000 live birthsMale: 27.01 deaths/1,000 live birthsFemale: 22.04 deaths/1,000 live births (2014 est.)

Life expectancy at birth: Total population: 75.15 yearsMale: 72.86 yearsFemale: 77.55 years (2014 est.)

Total fertility rate: 1.76 children born/woman (2014 est.)

Contraceptive prevalence

rate:

34.7% (2009)

HIV/AIDS - adult prevalencerate:

0.1% (2012 est.)

HIV/AIDS - people living withHIV/AIDS:

NA


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HIV/AIDS deaths: Fewer than 100 (2009 est.)

Drinking water source: Improved:urban: 99.5% of populationrural: 97.9% of population

total: 98.6% of population

Unimproved:urban: 0.5% of populationrural: 2.1% of populationtotal: 1.4% of population (2012 est.)

Sanitation faci li ty access: Improved:urban: 97.5% of populationrural: 99.6% of populationtotal: 98.7% of population

Unimproved:urban: 2.5% of populationrural: 0.4% of populationtotal: 1.3% of population (2012 est.)

Nationality: Noun: Maldivian(s)Adjecti ve: Maldivian

Ethnic groups: South Indians, Sinhalese, Arabs

Religions: Sunni Muslim (official)

Languages: Dhivehi (official, dialect of Sinhala, script derived fromArabic), English (spoken by most government officials)

Literacy: Definition: age 15 and over can read and writeTotal population: 98.4%Male: 98.4%Female: 98.4% (2006 est.)

School li fe expectancy:(primary to tertiary

education):

Total: 13 yearsMale: 13 years

Female: 13 years (2003)

Education expenditures: 6.8% of GDP (2011)

Maternal mortality rate: 60 deaths/100,000 live births (2010)

Children under the age of 5years underweight:

17.8% (2009)


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Health expenditures: 8.5% of GDP (2011)

Physicians density: 1.6 physicians/1,000 population (2007)

Hospital bed density: 4.3 beds/1,000 population (2009)

Obesity - adult prevalencerate:

12.9% (2008)

Economic overview

Tourism, Maldives' largest economic activity, accounts for nearly 30% of GDP

and more than 60% of foreign exchange receipts. Fishing is the second leading

sector, but the fish catch has dropped sharply in recent years.

Agriculture and manufacturing continue to play a lesser role in the economy,

constrained by the limited availability of cultivable land and the shortage of

domestic labor.

Lower than expected tourist arrivals and fish exports, combined with high

government spending on social needs, subsidies, and civil servant salaries

contributed to a balance of payments crisis, which was temporarily eased with

a $79.3 million IMF Stand-By agreement.

However, after the first two disbursements, the IMF withheld subsequent

disbursements due to concerns over Maldives' growing budget deficit, and the

government has been seeking other sources of budgetary support ever since. New Goods and Services Tax (GST) on tourism introduced in January 2011,

on general goods and services in October 2011, and a new Business Profit Tax

introduced in July 2011 have provided a boost to revenue.

GDP (purchasing power parity)

$3.073 billion (2013 est.)

$2.97 billion (2012 est.)

$2.945 billion (2011 est.)

note: data are in 2013 US dollars

GDP (off icial exchange rate)

$2.27 billion (2013 est.)


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GDP - real growth rate

3.5% (2013 est.)

0.9% (2012 est.)

6.5% (2011 est.)

GDP - per capita (PPP)

$9,100 (2013 est.)

$9,000 (2012 est.)

$9,000 (2011 est.)

note: data are in 2013 US dollars

GDP - composition by sector

agriculture: 3%

industry: 17%

services: 80% (2012 est.)

Population below poverty line

16% (2008)

Labor force

159,700 (2012)

Labor force - by occupation

agriculture: 3%

industry: 17%

services: 80% (2012 est.)

Unemployment rate

28% (2012 est.)

14.5% (2010 est.)

Unemployment, youth ages 15-24

total: 22.2%

male: 15.5%

female: 30.5% (2006)

Household income or consumption by percentage share

lowest 10%: 1.2%

highest 10%: 33.3% (FY09/10)


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Distribution of family income - Gini index

37.4 (2004)

Budget

revenues: $638 millionexpenditures: $917 million (2012 est.)

Taxes and other revenues

28.1% of GDP (2012 est.)

Budget surplus (+) or deficit (-)

-12.3% of GDP (2012 est.)

Inflation rate (consumer prices)

5.1% (2012 est.)

16.7% (2011 est.)

Central bank discount rate

7% (31 December 2012 est.)

6.96% (31 December 2011 est.)

Geographic location

The Maldives lies in two rows of atolls in the Indian Ocean, just across the

equator. The country is made up of 1,190 coral islands formed around 26 natural

ring-like atolls, spread over 90,000 square kilometers.

Each atoll in the Maldives is made of a coral reef encircling a lagoon, with deep

channels dividing the reef ring. A string of islands take their places among this

atoll ring; each island has its own reef encircling the island lagoon. The reefs ofthe islands, alive with countless types of underwater creatures and vibrant corals,

protect the islands from wind and wave action of the surrounding vast oceans.

Ninety-nine percent of the Maldives is made up of sea. The people of the islands

are widely dispersed across the atolls, with about 200 inhabited islands. About 90


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islands are developed as tourist resort and the rest are uninhabited or used for

agriculture and other livelihood purposes.

Currency & exchange rates1 Maldivian Rufiyaa equals 4.00 Indian Rupee

Exchange Rate

Rufiyaa per US Dollar rates:

The rate for the US Dollar is determined by the MMA. The midpoint of exchange

rate is 12.85 Rufiyaa and the rate is permitted to fluctuate within the 20% band,

i.e. between 10.28 Rufiyaa and 15.42 Rufiyaa.

National anthem

"Qaumii Salaam" (Dhivehi: ; National Salute) is the current

national anthem of the Maldives. The lyrics were written by Muhammad Jameel

Didi in 1948, and the melody was composed by Sri Lankan maestro Pandith

Amaradeva.

Recent developments in Maldives

Since the country was recommended for graduation in 2004, GDP has continued

to grow. In December 2004, the country was hit by a tsunami following the 2004

Indian Ocean earthquake.

The tsunami left a total of 108 people dead and about 12,000 persons displaced.It also caused property damage of about $400 million, or some 40 per cent of the

GDP in 2004. GDP per capita contracted by 11.3 per cent in 2005. Subsequently,

as a result of the global financial crisis in 2008, fewer tourists visited the country

negatively.


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Impacting on the tourism industry -- the dominant sector in the island economy.

After contracting by 4.7 per cent (in dollar terms) in 2009, the economy rebounded

strongly in 2010. It recorded a growth rate of 9.9 per cent, largely driven by

tourism.

The country is facing twin deficits in the fiscal and external fronts. The current

account deficit decreased temporarily in 2009, as a result of the recession in that

year, bit widened since then. It reached $463 million in 2010 (see table 2) and is

estimated to further worsen to $647 million in 2011, about 30 per cent of GDP.

The increasing deficit reflects higher global commodity prices as well as larger

import demand, triggered by the economic recovery in 2010, which offset the

positive impact the rebound in tourism had on the current account.

The fiscal deficit reached 23.3 per cent of GDP in 2009, largely due to

expansionary fiscal policies to support the depressed domestic demand but is

expected to subsequently fall to 12.8 per cent of GDP in 2011 in view of the fiscal

adjustment measures, supported by the IMF.

The IMF programmed calls for fiscal adjustments to improve the countrys fiscal

sustainability. It includes tax reforms, cuts in wages of public workers, increases in

electricity tariffs and subsidy cuts.

Overview of industr ies, trade and commerce in the

country of study

List of industries

Agriculture

Agricultural Greenhouses

Animal Feed

Aquaculture Equipment

Fishing Nets

Fishing Ropes

Fresh Vegetables


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Business Services

Advertising

Business Travel Services

Logistics Services

Air Freight

Sea Freight

Shipping

Construction & Real Estate

Hotels

Food & Beverage

Alcohol

Fish & Seafood

Crab

Health & Medical

Ambulatory Product

Contribut ion of industries in national GDP

The Maldives is a small economy with limited natural resources and thus a narrow

economic base, heavy dependence on tourism services and fisheries makes the

economy and trade vulnerable to exogenous shocks.

Although the economy is relatively open with trade in goods and services

accounting for over 150% of GDP in 2009, tariffs remain relatively high and state

involvement is prevalent in many sectors.

Tourism and related activities, such as transport and communications, dominate

services, contributing to as much as 70% of GDP.


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(1) Fisheries And Agriculture

Despite its declining share of GDP (from over 7% in 2002 to 5% in 2009), the

fisheries sector continues to be of major importance to the Maldives economy. It

accounted for nearly all (98.4%) merchandise exports and employed 11% of the

total workforce in 2009.

The share of agriculture in GDP has declined to 2% and employment in the sector

has also fallen. However, agriculture continues to be important with respect to

food security and employment opportunities, with 40% of the rural population

employed in some manner in the sector.

(2) Manufacturing

The share of manufacturing in GDP has declined from nearly 9% in 2003 to 7% in

2009. Main industries include fish processing, boat building, handicrafts, furniture,

food and beverage products, PVC pipes, and soap, shipbuilding & shipping.

Development of the manufacturing sector is limited due to the low level of

domestic demand and limited skilled labour. As a result manufacturing in the

Maldives is dependent on imported materials and skilled and unskilled labour.

(3) Energy

The Maldives is almost entirely dependent on imported fuel for its energy needs.

Electricity generation accounts for almost 80% of the imported fuel. Until recently,

the State Electricity Company Limited (STELCO) provided electricity to 28 islands,

including Male.

STELCO had an installed capacity of 52 MW and over 70% of the electricity it

generated was consumed in Male. Furthermore, almost 60% of all electricity

(STELCO and private generation) is consumed by the resorts. Electricity is

charged at domestic, commercial, and government rates; transmission losses are

low at 7%, and theft is negligible.


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(4) Transport/ shipping

The transport and communications sector contributed over 19% to GDP in

2009, up from 14.2% in 2003.

Due to the nature of the Maldives' geography, maritime transport services are

the most widely used mode of transport, followed by air transport services.

Export import statistics


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Major players of shipping industry in Maldives

1. Villa Shipping and Trading Company Pvt. Ltd

2. Alliance Management Services co.Pvt Ltd3. Alpha Maldives Pvt Ltd.

4. Alpha Mike Services Pvt. Ltd.

5. Antrac Maldives Pvt. Ltd

6. Island Sailors (Pvt) Ltd

7. Mald Links Management Pvt Ltd

8. Maldives National Shipping Ltd

9. Real Seahawks Maldives Pvt Ltd

10.Seline Pvt Ltd.

11.Sunrise Maldives Private Limited


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ABOUT SHIPPING

INDUSTRY OF

MALDIVES


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Overview of shipping industry

In 1948, a public limited company was established in Sri Lanka with the name of

Maldives National Trading Corporation (Ceylon) Ltd. (it is also known as MNTC).

Its majority of equity shares were held by the Government of Maldives.

This company engaged in trading and chartering steamers to carry grain and

food commodities to the Maldives. In 1957 and 1958 MNTC purchased its first

two cargo ships. Then company grew steadily over the years and more ships

were added to the fleet establishing regular shipping services from Ceylon to the

Indian sub-continent and extended to the Arabian Gulf, Red Sea and the Middle

East.

The Maldives Shipping Limited (MSL) was incorporated in Maldives in May 1967

with 3 ships and by 1980 the company owned over 40 ships. Shipping: The

Maldives has an active merchant shipping fleet consisting of ten cargo ships, one

container vessel and an oil tanker.

The countrys largest shipping company is the Government-owned Maldives

Shipping Management Ltd but most of the importing and exporting of Maldives

do private companies. Though Maldives has traditionally relied on fishing it also

had developed a modest merchant fleet in the region called Maldives Shipping

Limited (MSL).


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But today shipping is a minor actor in the Maldives where only two industries

dominate the economy. Fishing provides most employment to the inhabitants.

Though the major foreign exchange controls by the tourism. The importance

stems like Shipbuilding, i.e., encompassing shipyards, the marine equipment

manufacturers and a large number of service and knowledge providers from the

fact a nation's need to manufacture and repair its own Navy and vessels that

support its primary industries.

Maldives shipping industry of bi lateral trade

opportunities with India

The relations between the India and Maldives have been closed in strategic,

economic, and military cooperation. India contributed to maintaining security on

the island nation and agreement with respect to its strategic interest in the Indian

Ocean. India and Maldives have developed close strategic, military, economic

and cultural relations. India has supported Maldives' policy of keeping regional

issues and struggles away from itself, and the latter has seen friendship with

India as a source of help as well as a counter-balance to Sri Lanka, which is in

proximity to the island nation and its largest trading partner. India and Maldives officially decided their boundary in 1976, although a minor

diplomatic incident occurred in 1982 when the brother of the President of

Maldives Maumoon Abdul Gayoom declared that the neighboring. Minicoy Island

that belonged to India was a part of Maldives; Maldives quickly and officially

denied that it was laying claim to the island. India and Maldives signed a

complete trade agreement in 1981. Both nations are founding members of the

South Asian Association for Regional Cooperation (SAARC), the South Asian

Economic Union and signatories to the South Asia Free Trade Agreement.

Indian and Maldivian leaders have maintained high-level contacts and

consultations on regional issues.


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There are various relationships between India & Maldives & it will helpful to build

good business relationship. The relationship with Maldives which are as under

Bilateral relation

Operation Relation

Commercial Relation

Military Relation

India and Maldives share ethnic, linguistic, cultural, religious and commercial

links steeped in antiquity and enjoy close, cordial and multi-dimensional relations.

India was among the first to recognize Maldives after its independence in 1965

and to establish diplomatic relations with the country. India established its

mission at the level of CDA in 1972 and resident High Commissioner in 1980.

Maldives opened a fully fledged High Commission in New Delhi in November

2004, at that time one of its only four diplomatic missions worldwide.

Political relations

Bilateral relations have been nurtured and strengthened by regular contacts at

the highest levels. Since establishment of diplomatic relations, almost all the

Prime Ministers of India visited the Maldives. Former President Gayoom made a

number of visits to India.

President Mohamed Nasheeds first visit to abroad after assuming office was to

India in December 2008. In October 2009, President Nasheed attended the Delhi

High Level Conference on Climate Change and Technology Transfer. In 2010

President Nasheed visited India twice, first in January for the CII-Partnership

Summit in Chennai and in October for attending the Opening ceremony of the

19th Commonwealth Games in New Delhi. In the current year, PresidentNasheed made an official visit in February 2011.

On international issues Maldives had consistently supported India in multilateral

fora, such as the UN, the Commonwealth, the NAM and the SAARC. Maldives


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was one of the first countries to convey its support for the candidature of Shri

Kamalesh Sharma as the Commonwealth Secretary General.

Maldives also co-sponsored the G-4 draft resolutions on UN reforms. India has

extended support to Maldives candidature for a non-permanent seat in the UNSecurity Council for the term 2019-20.

Bilateral Assistance

Wherever possible, India has been offering assistance to Maldives in its

developmental process. The major projects executed by India are:

(i) Indira Gandhi Memorial Hospital: (IGMH) during former Prime Minister Shri

Rajiv Gandhis visit to Male in 1986, it was agreed to establish a medical

complex in Male with Indian assistance. Accordingly, the 200-bed hospital was

established at an estimated cost of Rs.42.5 crores and inaugurated in April 1995.

IGMH, Male now serves as the most advanced tertiary care hospital in Maldives

and is easily the most visible symbol of Indias assistance to the Maldives.

Though at present, the Government of Maldives is responsible for

managing/running the hospital, Government of India continues to offer

substantial assistance to the institution. During the visit of Honble Prime Minister

of India Dr. Manmohan Singh to Maldives in November 2011, Government of

India signed an agreement to undertake major renovation of IGMH at a total cost

of Rs.37.24 crores.

(ii) Faculty of Engineering Technology (FET):

Maldives Institute of Technical Education (MITE) was set up as a grant-in-aid

project of Government of India in 1996. Having a capacity to train at least 200

students a year in various technical/vocational disciplines, MITE was renamed as

Faculty of Engineering Technology

(FET) in order to better reflect the academic programmes conducted by it, is

functioning well.


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Detail of shipping industry wi th respect to Gujarat

Sub segments of the shipping industry

Sea transport systems in today's shipping market have evolved into three

separate but closely connected segments: bulk shipping, liner shipping and

specialized shipping.

1. Bulk shipping

The bulk shipping industry carries large parcels of raw materials and bulky semi-

manufactures. This is a very distinctive business. Bulk vessels handle few

transactions, typically completing about six voyages with a single cargo each

year, so the average revenue depends on a dozen of negotiations per ship each

year. In addition, service levels are usually low so little overhead is required to

run the ships and organize the cargo.

2. Linear shipping

The liner service transports small parcels of general cargo, which includes

manufactured and semi-manufactured goods and many small quantities of bulk

commodities. Because there are so many parcels to handle on each voyage, this

is an organization-intensive business. In addition, the transport leg forms part of

an integrated production operation, so speed, reliability and high service levels

are important. With so many transactions the business relies on published prices,

though nowadays the prices are negotiated with major customers as part of

service agreement.

3. Specialized shipping

Specialized shipping services transport difficult cargoes of which the five most

important are cars, forest product, refrigerated cargo, chemicals and liquefied

gas. These trades fall somewhere between bulk and liner. Service provides in


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these trades invest in specialized ships and offer higher service levels than bulk

shipping.

Contribution of shipping industry in national GDP

The world's largest ship breaking yard is in Gujarat near Bhavnagar at Alang.

The shipping sector contributes to around 2 % of GDP and provides employment

for thousands of people with handsome salary.

Major players of shipping industry & its sub segments with their

market share

1. ABG shipyard limited

ABG Shipyard is a part of the ABG Group of companies with diversified business

interests. Established in 1985, it is headquartered in Mumbai. It has shipbuilding

operations in Surat and Dahej in Gujarat. Following its acquisition of Western

India Shipyard Limited in October 2010, it operates a ship repair unit in Goa

which is the largest ship maintenance facility in India.

2. Port & SEZ limited Adani

Adani Ports and Special Economic Zone Limited (APSEZ) is Indias largest

private multi-port operator. APSEZ is a part of the Adani Group, an integrated

infrastructure corporation. The company (earlier known as Mundra Port & Special

Economic Zone Ltd) changed its name to "Adani Ports and Special Economic

Zone Limited" on January 6, 2012.[2] While earlier the company had one

operational port at Mundra, it today operates across six ports in India.


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3. Mundra Port

Mundra is a census town in Kutch district in the Indian state of Gujarat. Mundra

Port is the largest private port in India.Mundra was well known for salt and spice

trading in the past and now more for tie-dye and block-print textiles. The harbor is

virtually unusable today, and only small local fishing craft navigate its silted

waterways up the river.

4. Alang

Alang is a census town in Bhavnagar district in the Indian state of Gujarat. In the

past three decades, its beaches have become a major worldwide centre for ship

breaking. The longest ship ever built 'Knock Nevis' was sailed to and beached

here for demolition in December 2009.

5. Essar shipping port

Now Essar Shipping Ports & Logistics Limited is an Indian shipping and logistics

corporation with a focus on transportation solutions for the global energy

bussiness. The company is a part of Essar Group. It was started in 1945 and

incorporated in 2010. The company is listed in Bombay Stock Exchange BSE:

500630. The company headquarters is located in Mumbai.

The company's fleet handles a daily average of eight million barrels of crude oil,

320,000 barrels of petroleum products and 355,000 tons of dry bulk cargo. The

company currently has a fleet of 26 vessels, with an additional 12 new ships on

order. It provides contract drilling services to global oil majors, with a fleet of 13

onshore rigs and one semi-submersible offshore rig; two new jack-up rigs on

order. Essar Shipping Ports & Logistics Ltd was the first Indian shipping company

to obtain the International Safety Management Code (ISM) in 1995 and is also

ISO 14001 certified.


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6. Kandla port

The Port of Kandla Special Economic Zone (KASEZ) was the first special

economic zone to be established in India and in Asia. Established in 1965, the

Port of Kandla SEZ is the biggest multiple-product SEZ in the country. Kandla is

the first Export Processing Zone in India. Covering over 310 hectares, the special

economic zone is just nine kilometers from the Port of Kandla. Today, the Port of

Kandla is India's hub for exporting grains and importing oil and one of the

highest-earning ports in the country. Major imports entering the Port of Kandla

are petroleum, chemicals, and iron and steel and iron machinery, but it also

handles salt, textiles, and grain. A town has grown up on the port with a school

and hotel etc.

7. Gujarat Pipavav Port Limi ted

Port Pipavav, Indias first port in the private sector, is a port on the West Coast of

India for containers, bulk and liquid cargo. Its lead promoter is APM Terminals,

one of the largest container terminal operators in the world. The services include

pilotage/towage, cargo handling and logistics support. Port Pipavav is located in

Saurashtra, Gujarat, at a distance of 90 km South of Amreli, 15 km South ofRajula and 140 km South West of Bhavnagar. The port handles both bulk,

container and liquid cargo.


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Local taxes & duties applicable in shipping industry

The policies followed by Indian shipping industry are explained here. There is a

need for the Government to grant special status to coastal shipping so as to

exempt it from Customs and other procedures that apply to the bigger cargo-

carrying vessels. Taxation policies of India are

Corporate tax

Till now, the Indian shipping companies had to pay corporation tax at the rate of

36.75% or the minimum alternate tax at 7.5%. The industry also enjoyed benefits

under Section 33 AC of Income Tax Act. Additionally shipping companies now

have the option of choosing between corporate tax and tonnage tax. Thisbenefit, is restricted to ocean going vessels to make them competitive with

vessels registered under other national flags, and is not available to coastal

shipping.

Personal Income Tax:

The present system of income tax differentiates against the seafarers employed

on Indian coastal vessels. Indian seafarers who are engaged on foreign vessels

for 183 days or more in a year or on an Indian vessel, which work outside Indian

territorial waters for more than 183 days in a year, are entitled to non-resident

status and pay no taxes. This dispirits officers and seafarers from enlisting on

coastal ships and makes it all the more obligatory to appraise the aptitude

requirements and improve the emoluments.

Capital Intensive nature:

Shipping is a capital-intensive industry. In India, the cost of capital is higher

compared to many other countries. To raise equity capital, shipping should

attract investors. To enhance investor appeal for developing a larger equity base

and encouraging larger investment in coastal shipping, time-bound solutions

would have to be found for many of the complicated and vexing problems such


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as levy of Customs duty on spares, stores and bunkers imported by coastal

operators etc confronted by the sector. Unlike other industries, the benefits of

waiver from payment of import duty in shipping are available only to the

intermediary (SRUs) who imports the spares and not to the end-user (ship

owner) in the coastal shipping business.

Ship Acquisition

The coastal tonnage in India has been more or less dormant. One of the reasons

for this, apart from the productivity of coastal shipping, is the complexity in getting

finance at low interest rates. Although coastal ships are also permitted to external

commercial borrowing, they are effectively not in position to do so as they do not

earn in foreign exchange.

Import Licensing

India maintains a negative import list of products subject to various forms of

nontariff regulation. The negative list is currently divided into three categories:

banned or prohibited items (e.g., tallow); restricted items that require an import

license (e.g., livestock products); and "canalized" items (e.g., petroleum

products,) importable only by government trading monopolies subject to cabinetapproval regarding timing and quantity.

Standards, Testing, Labeling, and Certification: In early 2009, the GOI revised its

mandatory certification compliance list, which now includes 85 specific

commodities. The revised list includes such products as milk powder, infant

formula, bottled drinking water, certain types of cement, household and similar

electrical appliances, gas cylinders, certain steel products and multi-purpose dry

cell batteries. Products on the mandatory certification list must be certified forsafety by the Bureau of Indian Standards (BIS) before the products are allowed

to enter the country.


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High customs and excise Duty on capital investment

The government levies 35% duty on all capital equipments such as cranes,

plasma cutting machines, and other material handling equipment purchased for

running a shipyard.

Duty on sale of ships to Indian Shipping Companies

The materials and parts imported for building ships are exempted from payment

of custom duties but these ships once built are treated as imported ships and a

custom duty of 5.0% is levied on them

Any special benefi ts given by state government to the

shipping industry

A change of government seems to have done the trick, with domestic ship-

owners believing that better days lie ahead. The incumbent National

Democratic Alliance (NDA) government led by Prime Minister Narendra

Modi, who hails from Gujarat province on the west coast of India and home to

the worlds largest ship breaking yard, Alang has promised active support

for the local shipping community after taking office in May.

From the outset, the shipping ministry has supported demands of the Indian

National Ship owners Association (Insa), including the rationalization of tax

for seafarers employed on Indian-flag ships, and allowing Indian owners to

flag tonnage abroad while still being regarded as part of the national fleet.

The proposed policy for seafarers, which is expected to benefit 50,000

working on Indian-flag vessels and likely to be implemented soon, will

calculate the time they are non-residents from the date of embarkation at any

Indian port. At present, it begins only when a vessel enters foreign waters and

does not include time sailing between Indian ports. According to officials at


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the National Union of Seafarers of India (NUSI), Indian seafarers will not be

liable for income tax if, in any financial years, they exceed more than 183

days on foreign-going Indian-flag tonnage. It means a 30% net saving and an

incentive to remain under the Indian flag.

The initiative aims to provide long-term cargoes for Indian ships, making it

easier for local ship-owners to source credit from financial institutions that

have been reluctant due to the current volatility and high risk associated with

shipping assets, the officials say. It will enable Indian owners to expand their

fleets.


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STEEPLED

ANALYSIS


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STEEPLED analysis of shipping industry in Maldives

Social Analysis

In terms of Millennium Development Goals, the Maldives is currently one of the

most advanced countries in Asia and certainly the most advanced in South Asia.

In 2003, the literacy rate among females aged 15 and above reached 97% and

the net primary school enrolment rate has risen rapidly from 38% to 92% over the

last three decades. Poverty in the Maldives stems primarily from regional

disparities in living conditions related to the remoteness of the islands and the

lack of infrastructure and social services in the atolls. Although the countrys

current GDP per capita is one of the highest in South Asia, significant disparitiesexist in income distribution. Just fewer than half the populations earn less than

$1.25 per day and the average income of three quarters of the population is

$1.60 per day. The population of the Maldives is relatively young, with 44% under

14 years of age.

Technological Analysis

As a result the numbers of unemployed youths are increasing, partly because of

their poor education and partly because of the limited job opportunities available.

It is not surprising therefore that drug abuse has become a serious problem in

the Maldives, especially among young, unemployed males who are the most

vulnerable group. Three quarters of the prison population are serving sentences

for drug offences, and the authorities have yet to develop a strategy to tackle the

problem. Giving the small size of the country, there is a shortage of labor, which

leads employers to offer competitive pay and conditions to attract workers. In

terms of workers rights, there is no national laws governing health and safety

conditions on the workplace, and the country does not recognize the right to join

trade unions, which effectively do not exist. Furthermore, the country is not a

member of the International Labour Organization.


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Economic Analysis

The small size of its economy, which is largely dependent on tourism and

fisheries, makes the Maldives vulnerable to external shocks. The low-lying

islands of which the country is composed are particularly vulnerable to natural

risks, as witnessed by the economic recession following the tsunami of

December 2004. The countrys lack of land-based natural and mineral resources

means that virtually all economic production is highly dependent on imports,

creating a heavy dependence on foreign exchange earnings. Intensive

agricultural production is limited because of the hypercalcic soil. All staple food

stuffs are basic necessities and items for the tourism industry have to be

imported.

Environmental Analysis

The environment of the Maldives is extremely fragile and vulnerable. The country

is extremely dispersed and fragmented population makes the development

problems of the Maldives very unique. Many islands are not more than one meter

high so that the threats of climate change and the constant rise in sea levels are

a major concern, raising fears that the country could disappear. Environmental

issues are consequently fundamental to the Maldives and have been

mainstreamed into most policies. The country has adopted strong environmental

laws but lacks the necessary technical capacity to enforce them effectively.

There is also a lack of ownership of the numerous recommendations and policies

that have been made by various development agencies.

Political Analysis

The Republic of Maldives has a parliamentary style of government with a strongexecutive. The country has a largely Muslim population and the laws of the

country are consistent with Islamic Shariah law. The Office of the President is

the most powerful political institution. The President appoints the Cabinet and

members of the judiciary and is both the Chief of State and Head of Government.

The President is also Commander in Chief of the armed forces, Minister of


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Defense and National Security, Minister of Finance and Treasury, and Governor

of the Maldivian Monetary Authority. Women have the right to vote in all elections

and are eligible for candidature to elected bodies and all public positions, except

that of Head of State. The present Constitution, which came into force in 1998,

does not provide for an independent judiciary and therefore could be subject to

executive influence. The President has the authority to review High Court

decisions and through his power is to appoint and dismiss judges without

confirmation by the Peoples Majlis, and he can influence the judiciary.

Legal Analysis

Maldives has following acts to guide trade for the investors. The original Acts of

Parliaments are passed in Maldives language Dhivehi Acts of Parliament

(Statutes) Maldives. The acts for trade in Maldives are

Civil Aviation Act of Maldives 2001 Maldives Civil Aviation Act came into force

in 2001. This Act makes provision in respect of the registration and operation of

civil aircraft in the Maldives; construction, registration, operation and use of civil

aerodromes; other matters relating to civil aircraft and aerodromes; and safety of

civil aviation in the Maldives.

Companies Act of Maldives 1996 The Companies Act of Maldives provides the

basis for formation, registration and running of companies in the Maldives.

Consumer Protection Act 1996 This Act provides for the establishment and

protection of the rights of consumers.

Contract Act 1991 The Law of Contract 1991 provides definitions of contract

and its element such as offer, acceptance and termination of offer etc. Fisheries Act 1987 The Fisheries Act is called the The Fisheries Law of

Maldives. This Act is the basis for formulation of fisheries regulations and

fisheries management and development in the Maldives.

Foreign Investment Act 1979 This is the Act that provides Law on Foreign

Investments in the Republic of Maldives. This Law No. 25/79 (Law on Foreign


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Investment in the Republic of Maldives) was amended by the Citizens Majlis 1

February 1989 and came into effect on 9 February 1989.

Sale of Goods Act 1991 This Act defines the terms, rights and definitions of

related words. It describes the rules of delivery, fitness for purpose, sale to third

party and buyers remedy for breach of contract etc.

Tourism Act 1999 The Maldives Tourism Act provides for the determination of

zones and islands for the development of tourism in the Maldives; the leasing of

islands for development as tourist resorts, the leasing of land for development as

tourist hotels and tourist guesthouses, the leasing of places for development as

marinas, the management of all such facilities; and the operation of tourist

vessels, diving centers and travel agencies, and the regulation of persons

providing such services.

Ethical Analysis

The success of shipping companies often rests with the trustworthiness of your

employees. Thats because youre obligated to deliver the products youve been

entrusted with to their final destination on time, complete, and in good condition.

Hence, ethics play a very important role in shipping industry.

1. Accurate travel logs2. Safe Practices

3. Stringent regulations imposed within shipping industry

4. Internal management practices

5. External (market-related)

Demographic Analysis

The population of Maldives is not very diverse. Most of the people follow thesame religion. Approximately 46.25 % of the population is in the age group of 25-

54 years. Maldives has a population growth rate of -0.09%. It has notable sex

ratio of 1.04 male(s)/female.


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STEEPLED analysis of shipping industr y in India

Social Analysis

Population in India is second highest in the world. As of 2010, Indias

population is estimated to be 1.18 billion. India ranks 139th globally under

medium human development category according to human development

index (HDI). Due to significant changes in economic reforms undertaken

during the industrial revolution in 1991, India has transformed itself to one of

the fastest growing economies in world. India is also a strong member of

Commonwealth of Nations, SAARC, and WTO. Indias strong 55,000 military

personnels are serving in 35 UN peacekeeping operations across 4continents.

Technological Analysis

Technologies significantly affect humans ability to control and adapt to their

natural environments. Technological development like printer, telephones and

internet to name a few have narrowed physical barriers to communication and

allowed human to interact freely on a global scale. However, not all

technology innovations are good for society like development of nuclear and

other weapons which only create destruction. In recent times, more

encouragement is being given to new technologies which are environment

friendly. Shipping industry is majorly dependent on technology which fastens

the movement of goods and ships data processing, control the increased

throughput, better delivery and communication, reducing fuel consumption

and costs. We will see some of the benefits of technology to revolutionize the

shipping industry.


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Economic Analysis

Economic factors are as important as political factors that affect not only this

industry but every industry in every corner of the world. Change in economic

conditions at domestic or at international level mostly affects the functioning of

shipping industry; following are some of the economic factors that may affect

shipping industry. Exchange Rates are required for determining the custom

duties and excise duties, assessment of import and export goods, payment of

duties etc. These rates are not uniform and fluctuate daily in line with demand-

supply factors existing in international markets. The Indian government used to

inform the shipping authority about the monthly exchange rate, through monthly

notification. This ensures that dealing and communication between trade bodies

and government agencies, in respect of duties and value of goods is uniformed

across all ports and across all custom houses throughout India, instead of

different rates and different value.

Environmental Analysis

The UNs Intergovernmental Panel on Climate Change (IPCC) believes that

global warming is largely due to increase in CO2 levels and other greenhouse

gasses which are caused by human activity all over the world. Perhaps the most

dramatic evidence of this change is that about half of the Arctic ice has

disappeared over the last 20 years. From a CO2 emissions perspective, shipping

is one of the most climate-friendly ways to transport goods with very less amount

of CO2 emissions. It is essential to make sure that ships emit low carbon

footprint, not only to help climate but also to remain competitive. Globalization

requires the transportation of goods between countries.


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Political Analysis

Shipping industry in India is administered by central government through

Ministry of Shipping with the individual responsibility to plan policies,

programme and its implementation. Every port in India is governed under Major

Port Trust Act 1963 and Indian Ports Act 1980 and administered independently

by board of trustees under direct orders from central government.

Legal Analysis

Law is a system of rules and regulations usually enforced through a set of

institutions, government or international organizations. Legal factors are related

to the legal environment in which firms operates which elaborate rights and

responsibilities in variety of ways. International trade and in particular shipping

industry functioning is too influenced with changes in these legal factors. We will

look at some of the main acts on which shipping industry is dependant

internationally as well as domestically.

1. The Dock Workers (Regulation of Employment) Act 1948:

Dock worker means a person employed or to be employed in any port in

connection with the loading, unloading, movement or storage of cargo from ship

or vessel.

2. The Essential Commodities Act 1955 :

This act gives powers to government to regulate or prohibit production, supply

and distribution of essential commodities for commerce and trade in India. This

factor is positively affects the shipping industry, because as the government

prevents production, the suppliers will import more goods from the foreign tomeet the high demands of products. As the import increase, it will results into the

beneficial for shipping industry in a way of transferring or movement of goods

from one place to another.


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Ethical Analysis

Shipping being an industry which is open to all kinds of uncertainty has been

inconstant need of finding ways to reduce it. Its ability to deliver the cargo

effectively, that is without loss or damage.

Matters concerning safety in general.

The fair apportionment of losses in connection with damage en route between

ship and cargo carried, and

Ways to guard oneself from the effects of perils of the sea. The desire to

address the above general concerns of the shipping business has been

unchanging for centuries. Shipping, in its widest possible sense, has been able to

develop practices which have been effective in reducing the level of uncertainty

in those, and other fields as well.

Demographic Analysis

India has more land than any other country except United States, and largest

water covered area after Canada and United States. Indian life revolves mostly

around agriculture and allied activities in small villages, where the vast majority of

Indians live. As per the 2001 census, 72.2% of the population lives in about

638,000 villages and the remaining 27.8% lives in more than 5,100 towns and

over 380 urban areas. In languages Hindi is used by over 80% of population in

India followed by Muslim (13.4%), Christian (2.4%) and Sikhs (1.3%). Muslim

population in India is third largest in world after Indonesia and Pakistan. 57% of

population in India is between age group 15-59 years while around 35% of

population is below 15 years. Literacy rate in India is 64.8% overall distributed

between urban (79.9%) and rural areas (58.7%). This factor is positively affects

the shipping industry, as difference in location, demand people will demanddifferent things and import of it will increase the shipping business.


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Comparative analysis of STEEPLED

Factors India Maldives

Social Population in India is

second highest in the

world. India has

transformed itself to one

of the fastest growing

economies in world.

The population of the

Maldives is relatively young.

In terms of Millennium

Development Goals, the

Maldives is currently one of

the most advanced countries

in Asia and certainly the

most advanced in SouthAsia.

Technological High Encouragement of

adopting technology.

Shipping industry is

majorly dependent on

technology which fastens

the movement of goods

and ships data

processing, control the

increased throughput,

better delivery and

communication, reducing

fuel consumption and

costs.

low encouragement of

adopting technology due to

small size of country &

shorter of labour therefore

Maldives shipping industry

uses technology for fastest

movement of goods & ship

data processing but lower

delivery and communication.

Economic Change in economic

conditions at domestic or

at international level

mostly affects the

functioning of shipping

The countrys lack of land-

based natural and mineral

resources means that

virtually all economic

production is highly


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industry, following are

some of the economic

factors that may affect

shipping industry.

Exchange Rates are

required for determining

the custom duties and

excise duties,

assessment of import

and export goods,

payment of duties etc.

dependent on imports,

creating a heavy

dependence on foreign

exchange earnings.

Environmental From a CO2 emissions

perspective, shipping is

one of the most climate-

friendly ways to transport

goods with very less

amount of CO2

emissions. It is essential

to make sure that shipsemit low carbon footprint,

not only to help climate

but also to remain

competitive.

Many islands are not more

than one meter high so that

the threats of climate change

and the constant rise in sea

levels are a major concern

so that environment of

Maldives is extremely fragile

and vulnerable.

Political Shipping industry in India

is administered by central

government through

Ministry of Shipping

with the individual

responsibility to plan

policies, program and its

implementation.

The Republic of Maldives

has a parliamentary style of

government with a strong

executive. The country has a

largely Muslim population

and the laws of the country

are consistent with Islamic

Shariah law. The Office of


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the President is the most

powerful political institution

which is administered all the

industry in Maldives.

Legal Legal factors are related

to the legal environment

in which firms operates

which elaborate rights

and responsibilities in

variety of ways. . We will

look at some of the main

acts on which shipping

industry is dependant

internationally as well as

domestically such as The

Dock Workers

(Regulation of

Employment) Act 1948,

The EssentialCommodities Act 1955.

Maldives are involved

various act for trade in

Maldives are : civil aviation

act,2001, consumer

protection act 1996, contract

act 1991 etc

Ethical Ethics play a very

important role in shipping

industry such as

Accurate travel logs, Safe

Practices, Stringent

regulations imposed

within shipping industry

Ethics play a very important

role in shipping industry such

as Accurate travel logs , Safe

Practices, Stringent

regulations imposed within

shipping industry.

Demographic Literacy rate, language,

population etc factor are

positively affects the

Literacy rate, growth rate etc

factors of Maldives is

involving the shipping


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shipping industry, as

difference in location,

demand people will

demand different things

and import of it will

increase the shipping

business.

industry.


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SWOT ANALYSIS


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SWOT analysis of shipping industry of Maldives

Strength

Presence in the shipping Market for more than 3 decades

Dedicated Managerial & Seagoing staff who have been in employment for

more than two decades

Safe Navigation & propulsion management for all types of ships (Dry Bulk,

Tankers, Containers, Reefers)

Serving exclusively a particular group of owners for 3 decades - speaks for

loyalty & commitment

Expertise in operating old tonnage worldwide at a very competitive dailyoperating cost.

Up to date technological skills

All services / management control under one roof which no management

company in the world can match.

Weakness

Uncertainty in markets.

Financial Institutions (Banks) more careful with Lending policies / stopped

ships lending

Assets (Ships) values frequent fluctuations.

Low freight rates.

Old fleet unattractive to new crew.

Business location still not popular with big ship owners for having ship

management head office in Mumbai.


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Opportunity

Optimize shipping routes and step up expansion in emerging markets.

Ship Management services diversification to modern young and new tonnage

of bulk carriers including Tankers, Reefers, and containers.

Strategic alliances and joint ventures.

Diversification to ship owning business.

Diversification to Total ship Management Business for other worldwide ship

owners other than existing group.

Threats

Economic slowdown

Currency fluctuation

Changes in regulations of various countries

Sudden influx of new tonnage

Many shipping companies closing down or merging

Cost cutting trend for infrastructures

Swot Analysis Of Shipping Industry In Gujarat/India

Strengths

India has access to two major shipping routes

More than 7500 km coastline including the island territories

Widespread ports and workable merchant fleet

Fleet expansion by major domestic shipping companies

Sustained rise in the volume of exports with revival growth in themanufacturing sector

Large number of Indian sea farers

More than 1 billion citizens to drive the import demand


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Weakness

The underinvestment in the Indias maritime sector has affected the

development of ports in the country

Inefficient judiciary system slow development of new port infrastructure

High levels of bureaucracy prevents the government funding from

developing new port projects in the country

Tax structure not allowing the Indian manufacturers to be competitive

Opportunities

Indian shipping companies having acquisitions with foreign shipping

companies

More than USD $4bn is expected to be invested in India's port sector.

New major container terminals being developed at the port of Chennai and

Mumbai

Cargo volumes are expected to grow with an average of 16.5% year on

year in the coming 5-10 years

Threats

Major developments taking place in Sri Lanka's port sector may reduce

demand for transshipment services at Southern Indian ports.

A government tax on iron ore exports may lead to a fall in bulk shipments

at major export terminals.

India's ports have suffered from congestion during 2011, potentially

slowing the country's growth trajectory


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ABOUT STATE

STUDY:UTTAR

PRADESH


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Overview Of Uttar Pradesh

Population of Uttar Pradesh

Current Population of Uttar

Pradesh in 2013

207,644,568

Population of Uttar Pradesh in

2012

203,573,106

Population of Uttar Pradesh in

2011

199,581,477

Sex Ratio in Uttar Pradesh 908 females per 1,000 males

Literacy Rate 70%

The multicultural state of Uttar Pradesh is currently home to 16% of India's total

population. Uttar Pradesh plays a key role in Economic development of India as it

tops the chart in most populous state of India.

The state also holds top position in high population growth rate in India. UttarPradesh has witnessed a rapid growth in its population in the last 50 years. Each

year, the state adds more people to its ever increasing population than any other

state in India. From 1991 to 2001, Population of Uttar Pradesh increased by 26%,

thus indicating that state has a high population growth rate.

Population density in UP (Uttar Pradesh) currently stands at 828 people per

square kilometer, making it one of the densely populated states in India.

Allahabad is the most populated district in the state.


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Growth of Population in Uttar Pradesh

Year Population Growth Rate

1951 60,274,000 -

1961 70,144,000 +16.4%

1971 83,849,000 +19.5%

1981 105,137,000 +25.4%

1991 132,062,000 +25.6%

2001 166,198,000 +25.8%

2011 199,581,477 +20.1%

Offic ial Language of Uttar Pradesh

The languages of state administration are Hindi, established by the Uttar

Pradesh Official Language Act, 1951, and Urdu, established by the

Amendment to the same in 1989.

Natural Resources

1. Important Rivers:

Ganga, Yamuna, Gomti, Ramganga & Ghaghara.

2. Forests :

Forests constitute about 12.8% of the total geographical area of the state. The

Himalayan region and the terai and bhabhar area in the Gangetic plain have most

of the forests. The Vindhyan forest consists mostly of scrub. The districts of

Jaunpur, Ghazipur and Ballia have no forest land, while 31 other district have less

forest area.

3. Minerals:

The minerals found in Uttar Pradesh include limestone which is found in

Guruma-Kanach- Bapuhari in Mirzapur district and Kajrahat in Sonebhadra

district; dolomite which is found in Mirzapur, Sonebhadra and Banda, glass-

sand found in Karchhana tehsil of Allahabad district, Karwi in Banda district


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and Mau district; marble found in Mirzapur and Sonebhadra; bauxite found

in Rajhgewan in Banda district; non-plastic fireclay found in Bansi, Makri-

Khoh area of Mirzapur district; and Uranium found in Lalitpur district.

Besides, Barytes and Edalusite are found in the districts of Mirzapur and

Sonebhadra. Sand-stone, pebbles, reh, salt punter, marang, sand and other

minor minerals are also found in the State.

MAJOR INDUSTRIES

Information Technology,

Agro Processing,

Tourism,

Mineral-Based Industries,

Textiles, Handloom And Handicrafts,

Food Processing And Sports Goods.

Contribut ion in GDP

Uttar Pradesh is the third largest economy in India after Maharashtra and

Tamil Nadu. Uttar Pradesh gross state domestic product for 2004 is

$339.5 billion by PPP and $80.9 billion by nominal.

After partition, the new Uttar Pradesh state produces about 92% of the

output of the old Uttar Pradesh state.Between 1999 and 2008, the

economy grew only 4.4% per year, one of the lowest rates in India.

But between 2007 and 2011 under the Mayawati govt, the economy grew

at over 7% GDP growth rate in the time when Indian economy faced the

melt down due to global recession.


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Overview of sugar industry

Uttar Pradesh sugar industry is one of the largest industries in the Indian

economy. The lavish measures in form of new promotional policies for the Uttar

Pradesh sugar industry by state government of Uttar Pradesh was introduced at

a time when it was much needed to further boost the growth of the Uttar Pradesh

sugar industry. The improvements in the plant capacity and the introduction of

new techniques which enables the optimization of the existing plant capacities

has the further made the growth definite.

Contribut ion of sugar industry in national GDP

Country is now the second largest sugar producer in the world and despite the

largest consumption base in the world is self-sufficient and is also able to

generate exportable surpluses. Sugar industry is around 3% of the gross

domestic production contribution in the country. The Indian share in global sugar

production has risen from 5% to 15% in the last five decades. In the same period

Indias share in global sugar consumption has gone up from 5% to 13%.


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Major player of sugar industry with their market share

1. BALRAMPUR CHINI MILS LTD. is one of the largest integrated sugar

manufacturing companies in India It was incorporated in 1975 under the

Companies Act. The company has sugar factories located in U.P. having an

aggregate crushing capacity of 76,500 tons per day. Its allied business consists

of manufacturing and marketing of Sugar, Molasses, Bagasse, Ethyl Alcohol &

Ethanol, generation and selling of power and manufacturing and marketing of

organic manure. Since 1990, the company has been engaged in entering into

various agreements and setting up of various sugar plants. BCML acquired a

controlling stake in 1990, in Babhnan Sugar Mill Ltd, later in April 1998, in

Tulsipur Sugar Co. Ltd. In March 2003, BCML installed a bagasse based co-

generation power plant. In 2003-2004 it set up an integrated sugar complex at

Haidergarh. Various greenfield sugar projects were set up at Akbarpur,

Mankapur, Kumbhi & Gularia in UP. The net profits (after tax) for the eighteen

months ended on March 2011 was Rs.16,441 lacs.

2. BAJAJ HINDUSTHAN LTD. is a part of the Bajaj Group. It is Indias Number

One Sugar manufacturing company. BHL is also Indias largest ethanol producer.It has fourteen sugar plants, all located in UP Golagokarannath, Palia Kalan and

Khambarkhera (district Lakhimpur Kheri), Barkhera (district Pilibhit), Kinauni

(district Meerut), Gangnauli (district Saharanpur), Thanabhavan and Budhana

(district Muzaffarnagar), Bilai (district Bijnore), Maqsoodapur (district

Shahjahanpur), Pratappur (district Deoria), Rudauli (district Basti), Kundarkhi

(district Gonda) and Utraula (district Balrampur). These plants have aggregate

sugarcane crushing capacity of 136,000 TCD and a distillery capacity to produce

800,000 liters of alcohol per day. The company currently produces 38 million

litres of ethanol in a year. Sugar is the main product of the company. It is

produced in L-31, M-31, S-31, L-30, M-30 and S-30 out of which maximum

production is of 31 colour sugar. There are various by-products that are produced


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during sugar manufacturing process like Molasses, Bagasse, Fly Ash & Press

Mud.

3. DWARIKESH SUGAR INDUSTRIES LTD. is an integrated business house

primarily engaged in the manufacture of sugar and its allied products. Dwarikesh

is today a fast-growing industrial group with a strong presence in diversified fields

such as sugar manufacturing, power and ethanol/industrial alcohol production. It

has a combined capacity of 21,500 tons of sugar per day. The plants are located

in Bijnor district of Uttar Pradesh, at Dwarikesh Nagar (Najibabad), Dwarikesh

Puram (Afzalgarh) and at Dwarikesh Dham, Tehsil Faridpur, District- Bareilly.

During the quarter ended March 2011, the company reported profit of Rs 175.36

million.

4. TRIVENI ENGINEERING & INDUSTRIES LTD.

is a part of the Triveni group of companies, whose main business includes sugar

& engineering. It is amongst the largest manufacturer of sugar in India. Its

Products ranges from Sugar & molasses to Power generation. It has current

cane crushing capacity of 61,000 TCD & seven production facilites at Khatauli,

Deoband, Ramkola, Sabitgarh, Chandanpur, Raninagal and Milak Narainpur. All

the seven sugar factories are located in the state of Uttar Pradesh. In all the

factories, double suphitation process is followed for sugar production.

The sugar is sold under the brand name of Shagun.

The company started the co-generation of electricity in Deoband and Khatauli

which makes the production process more cost efficient. Molasses, the by-

product generated during the manufacture of sugar is fermented and distilled and

variants of alcohol are manufactured. The 160,000 litre distillery unit is located at

Muzaffarnagar. Company has 150 KLPD Ethanol plant at Muzaffarnagar. It has

started supplying Ethanol to oil marketing company from Dec10.


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Local taxes and duties applicable in sugar industry in UP

India, the world's biggest sugar producer behind Brazil, is set to produce a

surplus for a fifth straight year to September 2015, swelling stocks and keepinglocal prices below the cost of production.

Because of lower sugar prices, money-losing mills are defaulting on loans and

banks have refused working capital to most mills in the biggest cane producing

state of Uttar Pradesh.

"Mills are bleeding because of surplus production in the last four years, lower

retail prices of sugar and higher prices of cane," said Abinash Verma, director

general of the Indian Sugar Mills Association.

SWOT analysis of sugar industry in UP

Strengths

Most modern plants and equipment Well planned infrastructure

Abundant and Assured plan of Sugarcane

Power Supply to state grid

Lowest Process Losses

Highly skilled and motivated workforce

Self sufficient in power and water

Sugar Industry is tax contributor to the government provides employment

to the farmers.


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Weaknesses

Cyclical Industry

Highly regulated Industry

Virtually No control over Raw Material Price

Lackadaisical attitude of government in providing infrastructure such as

roads etc

India is the Largest Consumer of Sugar leads to shortage of Sugar, Health

Problems.

Indian sugar Factories uses the old technology leads to low production,

losses.

Opportunities

Machinery that can be upgraded for higher capacities

Opportunity to get into value added business

Opportunity to set up bagasse based paper plant

Sugar is widely use especially in drinks, Ice Cream lead to Industry growth.

Huge Potential to increase the productivity of Sugar cane by up gradating

Technology.

Threats

Import of Sugar

Frequent changes in Government Policies

Sugar Industry is controlled by Politicians which affects the growth.

Monsoon could affect the industry leads to low production.

Competition with the Brazil and World Market.


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FINDINGS &

BIBLIOGRAPHY


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Findings

The islands gained independence from the British Empire in 1965, and in 1968

became a republic ruled by a president and an authoritarian government.

As of 2005, the Maldives had a merchant fleet of 16 vessels with 1,000 GRT or

more, totaling 57,118 GRT, serving worldwide destinations, and all controlled by

Maldives Shipping Ltd., a public enterprise.

2% gdp consist in shipping industry

Export of goods and services consist 111.32% of GDP, As in import of goods and

services consist 112.28% of GDP.

The countrys largest shipping company is the Government-owned MaldivesShipping Management Ltd but most of the importing and exporting of Maldives

do private companies. Though Maldives has traditionally relied on fishing it also

had developed a modest merchant fleet in the region called Maldives Shipping

Limited (MSL).

Till now, the Indian shipping companies had to pay corporation tax at the rate of

36.75% or the minimum alternate tax at 7.5%.

the new Uttar Pradesh state produces about 92% of the output of the old Uttar

Pradesh state.Between 1999 and 2008, the economy grew only 4.4% per year

Uttar Pradesh is the third largest economy in India after Maharashtra and Tamil

Nadu. Uttar Pradesh gross state domestic product for 2004 is $339.5 billion by

PPP and $80.9 billion by nominal.

Coastal shipping is a new opportunity on the horizon for India's economic

development. Coastal shipping's potential lies in transporting less time critical

freight. It represents an environmentally beneficial and cost effective alternative

to rail and road modes, for bulk cargo shipped over long distances. Also it doesnot require the same infrastructure investment or maintenance.


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At the end of the day shipping is still the cheapest way to run large volumes of

cargo long distances by a mile. One does not have to construct a highway.

Traders would need to have a channel but once they get out to sea it is blue

water. They do not have to maintain anything, apart from your channel.


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Bibliography

http://en.wikipedia.org/wiki/Maldives

http://en.wikipedia.org/wiki/Industries_in_Maldives

http://www.encyclopedia.com/topic/Maldives.aspx

http://maldiveisle.com/economy.htm

http://www.managementparadise.com/forums/principles-management-p-o-

m/208694-pest-analysis-gap.html

http://en.wikipedia.org/wiki/Economy_of_the_Maldives

http://di.dk/SiteCollectionDocuments/DIBD/sektoranalyser/The%20Indian%20Mar

ine%20-%20Shipping%20Industry_2013.pdf

http://en.wikipedia.org/wiki/Adani_Ports_%26_SEZ_Limited

http://en.wikipedia.org/wiki/ABG_Shipyard

http://en.wikipedia.org/wiki/Mundra

http://en.wikipedia.org/wiki/Alang

http://en.wikipedia.org/wiki/Essar_Shipping

http://en.wikipedia.org/wiki/Kandla http://en.wikipedia.org/wiki/Port_Pipavav

http://en.wikipedia.org/wiki/Economy_of_Gujarat

http://www.tradewindsnews.com/weekly/346328/New-national-government-

raises-spirits-of-shipowners

http://www.ship.gr/agents/maldives.htm

http://international.gtu.ac.in/GCSR/768-Srilanka-

Transportation%20and%20Logistics%20industry.pdf

http://international.gtu.ac.in/GCSR/796-Nepal%20Transportaion%20Sector.pdf

http://www.caanepal.org.np/downloads/ineco/Strategic%20Analysis%20SWOT.p

df


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http://www.transport-

research.info/Upload/Documents/201204/20120404_135706_22177_FUSETRA_

D41_swot.pdf

https://www.google.co.in/?gws_rd=ssl#q=steeple+analysis+transportation+in+maldives

http://international.gtu.ac.in/Report_Select.aspx

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QjCNEccRasFBmRJBjKQWnUC08KV694Kg&sig2=8vP9setVAXA7ze5MfWKJAg

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http://international.gtu.ac.in/GCSR/735-Cambodia-Shipping.pdf

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%20Shipping%20Industry.pdf

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%20Shipping%20Industry.pdf


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