New market entry(WAREEN TEA LTD.) in russian tea industry

                              Company Background  (Warren tea Ltd)

 - The Company was incorporated on 31st May 1977 in the state of Assam.

 - Warren Tea Limited is the flagship of the Warrens group.

 - Cultivation of tea plantations, manufacture of machinery for processing 
    tea.

 - Carry on the business as warehousemen, shippers and exporters.

 - 14 tea estates with total planted area under tea measuring about 
    6,078 hectare.   

 - Warren Tea Limited produces 16 million kg of tea annually.

 - The produce of the Company is savoured across 50 countries.

 - One of the largest bulk tea producers in India and in the world.

                           Current International Business
      
             The company exports its products to the Kingdom,Ireland United,Germany,Pakistan,North America,Iran, and the Middle East.

                                  Why Go GLOBAL ?

  - There is a opportunities for profit to the company because of Lower
    costs and higher prices

  - Company have a Competitive advantages in new markets

  - To increase sales, revenues, and profit

  - Limited home market

  - Increase in production capacity

  - Russia which is a  top location for global retail business in the world.

  - Global consumers' tastes are converging. Easier to of a globally

     standardized product.

  - Domestic competition entering in the international markets or russia.

     i.e.  J.V. Gokal’s entry in to the Russian market.

                                        Why Russia ?

            - The fastest growing  Economy

            - Real GDP Growth ↑ 11% & Growth rate is 3.28 in 2010

            - 70% of Russians' income is disposable vs. around 40% in the West

            - Investors pouring money into improved storage facilities,logistic,

              infrastructure.

           -  Improving financial services, banking infrastructure.

           - FDI into Russia  reach $60 billion in 2010, an increase of about 16%

              Compared to the value in 2009.

              
                                 Political Factors

           - Supporting the e-governance Russia .

           - Government focus on expanding base of manufacturing.

           - New reforms targeting bureaucracy and corruption

           - Bsiness 2 Business e-commerce

           - To attract  more Foreign Direct Investment

           - Infrastructure development

         
                    Forecast of Tea Volumes by Sub-sector: 2010-2012

                Opportunities for Indian Tea Companies in the Russian Tea Market

           •  Total value of Russian tea imports in 2009 was $308.97 million, 
              which is nearly 14% of the global market

           •  Largest importer of tea in the world

           •  Retail volume growth rates of 15% & 12% in black standard tea bags 
             and black specialty tea bags respectively, in 2009.

                Entry mode - Joint Venture
                                                                             Warren tea Ltd can enter into joint venture    with local Russian tea     industry like.....

              1. Orimi Trade

              2. MOSCOW Tea factory limited company.

                                   Conclusion

             • Business relation between Russia and India are better

             • India tea industry have a great opportunities to enter in russian market.

             • Benefited of world largest importer country.