1

A

GLOBAL / COUNTRY STUDY AND REPORT

ON

“Building and Brass Hardware Industry of Australia”

Submitted to

Gujarat Technological University

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ASMINISTRATION

UNDER THE GUIDANCE OF

Ashok Bantwa

Assistant Professor

Submitted by

MBA SEMESTER III/IV

----------------------------------------------------------------------------------------

Shree Jaysukhalal Vadhar Institute of Management Studies, Jamnagar

MBA PROGRAMME

Affiliated to Gujarat Technological University

Ahmedabad

2

Preface

Australia ranks as one of the best places to live in the world by all indices of income, human

development, healthcare and civil rights. The sixth-largest country in the world by land mass, its

comparatively small population is concentrated in the highly-urbanized east of the Australian

continent. Australia is the only country in the world to occupy a single continent. It is a land of

contrasts containing many different climates with unique flora and fauna found nowhere else on

Earth.

In the fast going world hardware parts and components have become very essential for

every major industry. Hardware industry has rapid grown in the current few years and it is

subsequent growth, development and encourages the economic boom in the several

industrialized country of the world, this sector is one of the largest and most important in the

global market. From construction to IT, textiles and from furniture to banking and biotech, we

can feel the presence of hardware products everywhere. Now a days different products &

varieties of hardware parts and components are available in the market. Also it is useful for the

decoration therefore it gives a different looks where fix it, whether in the building or other place.

This report is aimed at studying economic and business environment prevailing in

Australia and identification of business opportunities prevailing in building brass hardware

industry of Australia. The first part of report include demographic and economic overview of

Australia, overview of industries, trade and commerce prevailing in Australia, overview of

different economic sectors of selected country, Present Trade Relations and Business Volume

of different products with India and SWOT analysis of Australia.

Second part of the report contain an introduction to building and brass hardware industry

of Australia, Structure, Functions and Business Activities of selected industry, comparative

position of Australian building hardware industry with building hardware industry of India,

present position and trend of business with India and Gujarat. Policies and norms of Australia

for building hardware industry including norms for import, export, licensing, permissions,

taxations, Policies and Norms of India for Import or export to the Australia including licensing /

permission, taxation etc, Present Trade barriers for import export of building and brass

hardware products to Australia. Potential for importing and exporting building hardware material

to and from Australia, business opportunities in future and conclusion and suggestions.

3

Acknowledgement

We are very grateful first of all to Gujarat Technological University for giving such a

project work to us as a full credit subject. This indeed expands our horizons and gives

us a feeling that our management course is not just restricted to traditional and

conventional studies but it includes such kind of work which can be called as

contribution from us towards the economy of India.

We express our deepest and sincere gratitude towards our institute, JVIMS- Jamnagar,

for being fully supportive and giving us all the access and facilities that we needed to

complete this Herculean task.

We are finally very thankful to Dr. K J. Thankachan,- Director, JVIMS and Dr. Ajay D.

Shah- Dy. Director, JVIMS for being patient and very kind to us, supporting us,

correcting our errors and mistakes and also being there always as a information point

whereby we could get all the needed information which was difficult for us to collect for

completing this project.

4

Table of Content

Sr. No Topic Page No.

1 Preface 2

2 Acknowledgement 3

3 Part – 1 4

4 Introduction to Australia 5

5 Demographic Profile of Australia 8

6 Economic Overview of the Australia 12

7 Overview of Industries Trade and Commerce in Australia 21

8 Overview of Different Economic Sectors of Australia 27

9 Overview of Business and Trade at international Level 32

10 Present Trade Relations and Business Volume of Different Products with India

34

11 Part – 2 39

12 Introduction to Building Hardware Industry of Australia 40

13 Structure, functions and business activities of selected Industry 58

14 Comparative position of brass building hardware industry with India and Gujarat

77

15 Present Position and Trend of business with India during last 3 to 5 years

85

16 Policies and Norms of Selected Country for Selected Industry 90

17 Policies and Norms of India for Import and Export 100

18 Present Trade Barriers for Imports and exports 105

19 Business Opportunities in Future 112

20 Present trends of business between India and Australia during last 3-5 years

137

21 Potential for import export in India / Gujarat Market 143

22 Conclusion 145

5

GCR - Australia

Part – 1

6

Introduction

By taking into consideration all indices of income, healthcare, human development, civil

rights etc. Australia is considered as a one of the best places in the world to live.

Australia is sixth largest country in the world by land area. Its population is highy

concentrated in urban areas.1 Australia is the only country in the world occupying a

single continent. Australia is a land of disparity including many different climates with

distinctive flora and fauna.2

Country Background

Indigenous settlers came on the A ustralian continent about 40 thousand years before

the first Europeans began discovery in the 17th century. Capt. James COOK took

control of the east coast in the name of Great Britain. Commonwealth of Australia came

into existence through creation of six different colonies during 18th and 19th centuries. 3

By taking the advantage of its natural resources Australia made significant

development of its agriculture and manufacturing industries. In present scenario

Australia has made itself into an internationally competitive and highly advanced

economy. Australia became one of the fastest growing economy during the 1990,s.

Long term concerns of Australia includes pressure on infrastructure sector, ageing of

the population, and number of environmental issues such as frequent droughts.4

1 http://www.bbc.co.uk/news/world-asia-15674351 2 http://www.virtualoceania.net/australia/travel/overview.shtml 3 http://www.appliedlanguage.com/about-us/knowledge-hub/country-guides/australia/ 4 https://www.cia.gov/library/publications/the-world-factbook/geos/as.html

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Country Overview

Capital: Canberra

Population: 22.7 Million

Weights & Measures Metric

Language English

Currency: (AUD) Australian Dollar 100 cents equal 1 AUD Dollar

Time Zone: GMT + 10 hours

Area 7,682m sq km

Important facts about Australia,

Australia is world‘s smallest continent and is sixth largest country by total land

area

Australia is enriched with a coastline of 34,218 kilometers

With relatively old and least fertile soils, Australia is considered as a flattest

continent in world

Australia is credited to have lowest population density in world of 2.8 inhabitants

per square kilometer.

Per capita income of Australian people is sixth highest in world.

Australia is also credited to have second highest human development index in

the world

It also ranks high in number of international comparisons of national performance

like health,, education, quality of life, economic freedom and protection of civil

and political rights

School education up to age of 11 is compulsory in Australia

The adult literacy rate of Australia is 99 per cent

8

Chapter – 1

Demographic Profile of Australia

9

Demographic Profile of Australia

This section includes information about people and society of Australia.

1. Nationality: Australia

2. Population: 22,015,576 (July 2012 est.)

3. Population growth rate: 1.126% (2012 est.)

4. Birth rate: 12.33 births/1,000 population (2011 est.)

5. Death rate: 6.88 deaths/1,000 population (July 2011 est.)5

6. Net migration rate: 5.93 migrant(s)/1,000 population (2012 est.)

7. Urbanization: Urban population: 89% of total population (2010)

8. Ethnic Group:6

White 92%

Asian 7&

Aboriginal and other 1%

(Source: CIA World Fact Book)

9. Languages:7

English 78.5%

Chinese 2.5%

Italian 1.6%

Greek 1.3%

Arabic 1.2%

Vietnamese 1%

Other 8.2%

Unspecified 11.3%

(Source: CIA World Fact Book)

5. http://www.appliedlanguage.com/about-us/knowledge-hub/country-guides/australia/ 6 http://www.appliedlanguage.com/about-us/knowledge-hub/country-guides/australia/ 7 http://www.appliedlanguage.com/about-us/knowledge-hub/country-guides/australia/

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10. Religions:8

Australia is a religiously diverse country and has no official religion.

Protestant 27.4%

Anglican 18.7%

Uniting Church 5.7%

Presbyterian and Reformed 3%

Catholic 25.8%

Eastern Orthodox 2.7%

Other Christian 7.9%

Buddhist 2.1%

Muslim 1.7%

Other 2.4%

Unspecified 11.3%

None 18.7%

(Source: CIA World Fact Book)

11. Age Structure:

Age Group Percentage Male/Female Ratio

0-14 years 18.3% 2,040,848/1,937,544

15-64 years 67.7% 7,469,092/ 7,266,143

65 years and over 14% 1,398,576/ 1,654,508

(Source: CIA World Fact Book)

12. Median age:

Total 37.7 Years

Male 37 Years

Female 38.4 Years

(Source: CIA World Fact Book)

8 http://www.appliedlanguage.com/about-us/knowledge-hub/country-guides/australia/

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13. Major cities - population:9

Sydney 4.429 Million

Melbourne 3.853 million

Brisbane1 1.97 million

Perth 1.599 million

(Source: CIA World Fact Book)

14. Sex Ratio

At birth 1.06 male/female

Under 15 years 1.05 male/female

15 to 64 years 1.03 male/female

Above 65 years 0.85 male/female

Total Population 1 male/female

(Source: CIA World Fact Book)

15. Literacy:

Definition: age 15 and over can read and write

Total Population 99%

Male 99%

Female 99%

(Source: CIA World Fact Book)

16. Unemployment, youth ages 15-24:

Total Population 11.6 %

Male 12.6 %

Female 10.4%

(Source: CIA World Fact Book)

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Chapter – 2

Economic Overview of the Australia

13

Economic Overview of the Australia

Because of its ample natural resources in the form of wide reserves of iron ore, coal,

gold, copper, uranium, natural gas, and renewable energy sources, Australia has

became the center of attraction for investment.10

A series of key investments, such as the investment of US$40 billion Gorgon

Liquid Natural Gas project, will considerably expand the resources sector. Australia with

its large service sector is considered as one of the major exporter of natural reserves,

food and energy. Key doctrine of Australia‘s trade policy includes support for open trade

and the successful culmination of the Doha Round of multilateral trade negotiations,

particularly for agriculture and services. The Australian economy is growing at very high

rate for last 17 consecutive years.

Afterward, the former government introduced a fiscal stimulus package of US$50

billion to compensate the effect of the slowdown in world economy, while the Reserve

Bank of Australia reduced interest rates to historic lows. These policies - and continued

demand for commodities, especially from China - helped the Australian economy

bounce back after just one quarter of harmful growth.

The economy grew by 1.3% during 2009 - the best performance in the OECD - by 2.7%

in 2010, and by 3.0% in 2011. Unemployment in Australia is expected to reach 8-10%,

peaked at 5.7% in year 2009 and decreased to 5.0% in 2011.

As a result of an improvement in economic performance, the budget deficit is

expected to crest below 4.2% of Gross Domestic Product and the government could

return to budget surpluses as early as 2015. Australia is credited to be the first country

in the world to raise interest rates, with seven interest rate hikes during October 2009

and November 2010.11

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The economy of Australia is a developed, modern market economy with a GDP

of approximately US$1.23 trillion. in 2011.

It was the 13th largest national economy by nominal GDP and the 17th largest

measured by PPP adjusted GDP, representing about 1.7% of the World

economy.

Australia was also ranked the 19th largest importer and 19th largest exporter

The Australian economy is dominated by its service sector, representing 68% of

Australian GDP.

The agricultural and mining sectors (10% of GDP combined) account for 57% of

the nation's exports. The Australian economy is dependent on imported crude oil

and petroleum products, the economy‘s petroleum import dependency is around

80% - crude oil + petroleum products.

Rich in natural resources, Australia is a major exporter of agricultural products,

particularly wheat and wool, minerals such as iron-ore and gold, and energy in

the forms of liquified natural gas and coal.

The economy relies heavily on trade to remain stable, but with its location is far

from other well populated countries.

The economy has seen an extra boost from the expansion of the natural

resources mining industry and this looks set to continue for the near future.

1. GDP (purchasing power parity):

This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year.

Year 2003 2004 2005 2006 2007 2008 2009 2010

GDP (USD Million)

571.4 611.7 635.5 647.6 773 800.2 848.4 882.4

(Source: CIA World Fact Book)

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2. GDP - real growth rate

This entry gives GDP growth on an annual basis adjusted for inflation and

expressed as a percent. The growth rates are year-over-year, and not

compounded.

Year 2003 2004 2005 2006 2007 2008 2009 2010

GDP %

3 3.5 2.7 2.7 4.3 2.3 1.2 2.7

(Source: CIA World Fact Book)

3. GDP - per capita (PPP):

This entry shows GDP on a purchasing power parity basis divided by population

as of 1 July for the same year.

Year 2003 2004 2005 2006 2007 2008 2009 2010

GDP (USD )

29000 30700 31600 333003 37300 38100 39900 41000

(Source: CIA World Fact Book)

4. Shares of different sectors in the economy:

Service 71.2%

Industry 24.8

Agriculture 4%

(Source: CIA World Fact Book)

5. Inflation rate (consumer prices):

This entry furnishes the annual percent change in consumer prices compared

with the previous year's consumer prices.

Year 2003 2004 2005 2006 2007 2008 2009 2010

Inflation Rate

2.8% 2.3% 2.7% 3.8% 2.3% 4.4% 1.8% 2.9%

(Source: CIA World Fact Book)

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6. Total Imports:

Major imports by Australia include machinery and transport equipment,

telecommunication equipment and parts, computers and office machines,

petroleum products and crude oil.

Major imports by Australia include machinery and transport equipment,

computers and office machines, telecommunication equipment and parts, crude

oil and petroleum products. This entry provides a listing of the highest-valued

imported products; it sometimes includes the percent of total dollar value.

Year 2003 2004 2005 2006 2007 2008 2009 2010

Imports (USD Billion)

82.91 98.1 119.6 127.7 160 193.3 160.4 200.4

(Source: CIA World Fact Book)

7. Major Import Partners:

This entry provides a rank ordering of trading partners starting with the most

important; it sometimes includes the percent of total dollar value12

China 18.7%

US 11.1%

Japan 8.7%

Thailand 5.2%

Singapore 5.1%

Germany 5%

Malaysia 4.3%

(Source: CIA World Fact Book)

12 http://www.appliedlanguage.com/about-us/knowledge-hub/country-guides/australia/

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8. Total Exports:

Major exports by Australia include gold, wool, Coal, alumina, meat, iron ore, wheat,

transport equipment and machinery. This entry provides the total US dollar amount

of merchandise exports on an f.o.b. (free on board) basis. These figures are

calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP)

terms.

Year 2003 2004 2005 2006 2007 2008 2009 2010

Exports (USD Billion)

68.67 86.89 103 117 142.1 190.2 154.8 210.7

(Source: CIA World Fact Book)

9. Major Export Partners

This entry provides a rank ordering of trading partners starting with the most important; it sometimes includes the percent of total dollar value.

China 25.1%

Japan 18.9%

South Korea 8.9%

India 7.1%

US 4%

(Source: CIA World Fact Book)

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10. Unemployment rate:

Definition of Unemployment rate: This entry contains the percent of the labor force

that is without jobs. Substantial underemployment might be noted.

Year 2003 2004 2005 2006 2007 2008 2009 2010

Unemployment Rate

6% 5.1% 5.1% 4.9% 4.4% 4.2% 5.6% 5.1%

(Source: CIA World Fact Book)

11. Industrial production growth rate:

This entry gives the annual percentage increase in industrial production (includes

manufacturing, mining, and construction).

Year 2003 2004 2005 2006 2007 2008 2009 2010

Production Growth Rate

-0.1% 1.9% 1.1% -3.5% 4.1% 3% -4.1% 3%

(Source: CIA World Fact Book)

12. Debt – external:

This entry gives the total public and private debt owed to nonresidents repayable in

foreign currency, goods, or services. These figures are calculated on an exchange

rate basis, i.e., not in purchasing power parity (PPP) terms.

Year 2003 2004 2005 2006 2007 2008 2009 2010

Debt (USD Billion)

176.8 233.5 308.7 323.4 585.1 826.4 770.3 1094

(Source: CIA World Fact Book

19

13. Investment (Gross Fixed):

This entry records total business spending on fixed assets, such as factories,

machinery, equipment, dwellings, and inventories of raw materials, which provide

the basis for future production. It is measured gross of the depreciation of the

assets, i.e., it includes investment that merely replaces worn-out or scrapped capital.

Year 2003 2004 2005 2006 2007 2008 2009 2010

Imports (USD Billion)

25 25.32 25.9 26.8 27.3 28.7 28.3 27.4

(Source: CIA World Fact Book)

14. Current Account Balance

This entry records a country's net trade in goods and services, plus net earnings

from rents, interest, profits, and dividends, and net transfer payments (such as

pension funds and worker remittances) to and from the rest of the world during

the period specified. These figures are calculated on an exchange rate basis, i.e.,

not in purchasing power parity (PPP) terms.

Year Current Account Balance (USD)

2004 - 38,300,000,000

2005 -42,090,000,000

2006 41,620,000,000

2007 56,780,000,000

2008 -41,880,000,000

2009 41,330,000,000

2010 -35,230,000,000

(Source: CIA World Fact Book)

20

15. Central bank discount rate: 4.35% (31 December 2010 est.)13

This is the Reserve Bank of Australia's "cash rate target," or policy rate

16. Commercial bank prime lending rate: 7.8% (31 December 2011 est.)

This entry provides a simple average of annualized interest rates commercial

banks charge on new loans, denominated in the national currency, to their most

credit-worthy customers.

17. Major Industries:

Mining

Industrial and transportation equipment,

Food processing,

Chemicals,

Steel14

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Chapter – 3

Overview of Industries, Trade and

Commerce in Australia

22

Overview of Industries, Trade and Commerce

1. Trade and Commerce Overview:

Rich in natural resources, Australia has a largely affluent society and an open

and innovative economy, resulting in growing foreign investment over the past

decade.

Australia continues to be a strong advocate of increased trade liberalisation in

the World Trade Organization and plays an active role in global trade talks.

Australia‘s largest export market is China, followed by Japan, the Republic of

Korea, India, the United States, and the UK.

Strong political, economic and cultural links to the UK make Australia a more

significant market for UK exports than its comparatively small population

might suggest.

The UK is Australia‘s fifth largest two-way trading partner, worth A$22.6 billion

in 2010.

British investment in Australia increased A$34 billion in 2009 to reach A$499

billion, making the UK the country‘s second biggest foreign investor after the

US. And it is second largest foreign direct investor, worth with A$63 billion, or

14.5 per cent of the total.

Despite the global economic slowdown, UK foreign direct investment into

Australia increased by A$1.8 billion in the year to December 2009.

2. Trade Group Membership

If the goods are the produce or manufacture of New Zealand.(Based on % of

NZ origin content/manufacture), the Closer Economic Relations (CER)

between Australia and New Zealand provides for the possible elimination of

duty. 15

15 http://www.international-orders.com/content/view/38

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If goods are the produce or manufacture of Canada, the Canada and

Australia Trade Agreement (CANTRA) provides for possible elimination of

some duty rates.

Australia is also a party on the Convention of International Trade on

Endangered Species (Flora and Fauna), Montreal Protocol and Wassenauer

Agreement.

The Australia-United States Free Trade Agreement (AUSFTA) came into

force on 01/01/2005.

Austrade also provides practical advise for exporting to United state.

Australian custom service provides advise to importers on tariff changes

arising from the AUSFTA.16

3. Import Export Guidelines

I. Import Clearance Processes

All the imported goods in Australia are subject to clearance by the custom

authorities.

For goods with a value of $1000 (AUD) or greater, Importers are

responsible for obtaining a formal Customs clearance17

Consignments prized below $1000 (AUD) will be processed via a self

accessed declaration.

Customs does employ cost-recovery schemes for processing declarations.

The amount of cost is determined based on on whether the entry is

submitted as an electronic or manual declaration.18

Customs also provides assistance to the private importers to clear their

own goods.

16 http://www.fedex.com/us/international/irc/profiles/irc_au_profile.html?gtmcc=us 17 http://www.international-orders.com/content/view/38 18

http://www.international-orders.com/content/view/38

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Federal Express customs clearance service is included in the price of it's

FXIP service. Although, we do recover any direct fees associated with

processing declarations.19

II. Import Duties:

By classification of goods within the Australian Customs Tariff, the rates of

duty payable by the importer is decided.

In some situation, anti-dumping or countervailing measures, which result

in the imposition of additional rates of duty, may also apply.

A Customs processing fee applies to goods that require formal entry to

customs of $54.20 (AUD) which includes a $6.50 (AUD) quarantine fee for

which a declaration is lodged.20

III. Export Clearance Processes

Export entries are lodged electronically by a registered user of the ICS

(Integrated Cargo System) either as an owner or as an agent acting on

behalf of an owner; which may be prepared by the owner or an agent

appointed by the owner. 21

Before the goods are being lodged on the board or aircraft transporting

them out of Australia exporters must report all export details

The ICS operates 24 hours a day.

Provided there are no regulatory impediments, customs aims to transmit a

clearance within a few minutes of receipt of a complete and accurate

electronic entry22

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4. Tax Policies

There are many forms of taxes levied by Australian government. Individuals and

companies in Australia are required to pay taxes or charges to all levels of government:

local, state, and federal governments. Taxes are collected to pay for public services and

transfer payments.

Income taxes are considered as the most significant form of taxation in Australia,

and are collected by the central government through the Australian Taxation Office.

Australian GST revenue is collected by the Federal government, and then paid to the

states under a distribution formula determined by the Commonwealth Grants

Commission of Australia. Following are the kind of taxes.

I. Personal income taxes

Income taxes on individuals are imposed at the federal level. This is the most

significant source of revenue in Australia. The state governments do not impose

income taxes. Theses taxes in Australia are imposed on the personal income of

each person on a progressive basis, with the application of higher rates to the

people with higher level of income.

II. Capital gains tax

In Australia capital gain taxes are levied on capital gain arising from disposal,

sale or transfer of any capital assets except in case of specific exemptions.

III. Corporate taxes

Companies and corporations pay company tax on profits made by them.

Corporate taxes in Australia are calculated at flat rate of 30%. Taxes are paid on

corporate profit before its distribution to shareholders in the form of dividend.

IV. Goods and Services taxes

Entities registered for goods and service tax are required to pay value added tax

at the rate of 10%. A number of supplies are exempt from GST (e.g., many basic

foodstuffs, medical and educational services, exports), input-taxed (residential

26

accommodation, financial services, etc.), exempt (Government charges) or

outside the scope of GST.

V. Property taxes

Most of the local governments in Australia meet its funding requirement by

levying taxes on land value, industrial, residential and commercial properties. In

addition, some State governments levy tax on land values for investors and

primary residences of high value.

VI. Excise taxes

The Federal Government imposes excise taxes on goods such as cigarettes,

petrol, and alcohol.

27

Chapter – 4

Overview of Different Economic

Sectors of Australia

28

Overview of Different Economic Sectors of Australia

Australia possesses a well-diversified economy boosted by the strength of its services

and resources industries. In the past two decades, Australia has enjoyed a period of

uninterrupted economic growth – an average of 3.3 percent in real GDP growth

annually.

A vital component to this growth has been the gradual shift of markets by

Australia‘s industry sectors. Previously, Australia‘s industry sectors main focus was to

serve the needs of the European and North America markets; however Australia‘s

decision to turn its attentions to the East Asian markets, particularly China and Japan,

has coincided with Australia‘s recent economic progress. The following section include

brief profile of important Australian industries.

1. The Financial Services Industry

Australia has a sophisticated financial services sector and is ideally positioned as

a centre for the Asia-Pacific region. This is demonstrated by deep and liquid

financial markets and regional leadership in investment management as well as

in areas including infrastructure financing and structured products. The strength

of the financial services sector is underpinned by a mandated retirement savings

scheme, highly skilled and multilingual workforce and advanced business

infrastructure.

Finance and insurance is the fourth largest sector in Australia‘s economy,

generating 8.1 per cent or A$81 billion of real gross value added in 2007-08. This

contribution is up from 6.5 per cent two decades ago and its expansion has also

aided growth in related sectors such as communications, property and business

services.

Highly developed financial markets make Australia one of the major centres of

capital markets activity in Asia and Australia‘s large and mature financial services

sector has assets of more than A$4.3 trillion, which is equivalent to almost four

times GDP.

29

2. Infrastructure

Because of its vibrant economy and internationally renown lifestyle Australia

is growing at continuous rate over a period of time.

With significant rise in population Australian government has increased its

spending on important infrastructure projects with high emphasis on civil

engineering and construction sector.

Transport and utilities projects have become centre of attraction for long term

investment. With the objective of identifying priorities and reducing

impediments, Australian government had set up Export Infrastructure Task

Force

Looking at continuous and rising demand Australian government is expecting

more foreign companies to enter in Australian infrastructure development

market.

3. Biotechnology

Excellent research facilities, world-class scientists and a strong but flexible

regulatory regime have made Australia a powerhouse of biotechnology and

pharmaceutical innovation.

Australia is home to a thriving network of 470 biotechnology companies. Of

these, 49 per cent are involved in therapeutics, 15 percent in agricultural

biotechnology and 13 per cent in diagnostics.

In 2008, the BioIndustry Review reported that 399 alliances had been

announced involving Australian life science companies in the previous 12

months. Of these, over 70 per cent were with international organisations –

101 with North American organisations, 100 with European organisations and

57 with Asian organisations (Source: Hopper and Thorburn, 2008 BioIndustry

Review: Australia and New Zealand).

30

Australia has a well established medical device industry, a strong position in

nanobiotechnology and is internationally regarded for its expertise in stem cell

research.

4. Information Technology and Telecommunications

The listed IT and telecommunications sector consists of several large

corporates, including telecommunications carriers and numerous small to

medium sized businesses.

SMEs make up the majority of the sector and consist of telecommunications

distributors and resellers, IT consultancies and software developers and

vendors.

5. Agriculture

Australia‘s diverse climate enables it to sustain a wide variety of agribusiness

enterprises, including: tropical and temperate horticulture, coastal and inland

aquaculture, grain, oilseed and fibre production, dairy farming, livestock

farming, forestry and timber production

Australia is renowned for its high quality produce thanks to its geographic

isolation and stringent quarantine and monitoring procedures. A culture of

ongoing innovation also means the industry is highly competitive

internationally

Australia‘s agricultural sector presents valuable opportunities for new

investors within a stable investment and regulatory environment. The industry

is comprised of a large number of small operators, meaning there are low

barriers of entry for new players. There is increasing global demand,

particularly from the developed world, for Australian food products such as

beef and dairy

31

6. Consumer

Companies operating in the consumer sector are distinguished by the

discretionary or staple nature of their product offering.

Companies involved in the production and distribution of food and beverages

are considered to be staples, whereas companies involved in media, general

retailing and gambling make up the consumer discretionary sector.

7. Industrials and Materials

The industrial sector consists of a broad range of companies in construction

and engineering, infrastructure, transport and commercial services.

The materials sector (excluding metals and mining) includes producers of

agricultural commodities, fertilisers, paper and forestry products, chemicals

and building materials

32

Chapter – 5

Overview of Business and Trade at

international Level

33

Overview of Business and Trade at international

Level

Australia‘s trade policy is geared to increasing economic activity, liberalizing trade and

maximizing access for Australia in the international market place. Australia is an active

player in the WTO, in particular on agriculture. Australia is actively pursuing regional

and bilateral free trade agreements, which, it hopes, will deliver stronger trade and

economic growth.

FTA's have been completed with the US, Singapore, Thailand, New Zealand,

Chile and ASEAN, and negotiations are underway with China, Malaysia, Japan, Korea,

the Gulf Cooperation Council, Pacific islands (through the Pacific Agreement on Closer

economic Relations) and the Trans Pacific Partnership. Further bilateral FTA's with

India and Indonesia are also under consideration.

34

Chapter – 6

Present Trade Relations and Business

Volume of Different Products with

India

35

Present Trade Relations and Business Volume of

Different Products with India

1. Australia‟s Trade with India – Overview

India and Australia have a strong and productive bilateral partnership. Australian

exports to India are on the rise, India is now Australia‘s 4th biggest export market

underlining the importance of India as a major export and investment destination for

Australia. Australia‘s leading merchandise exports include Coal, Gold, Copper Ore,

Wool, Horticulture, etc. This makes India the fastest growing export market for Australia.

Services exports to India have also been growing rapidly with education leading

from the front. Australia is now the 2nd biggest overseas education destination for

Indian students. Indian tourist arrivals have also been on the rise contributing to

Australia‘s services exports to India.

Australia‘s exports include the minerals and fuels, energy investment and

collaboration on areas of joint significance.

2. India Australia Trade Relations

Though India Australia trade relations are active today its full potential has still

not been achieved. Which means that there exists substantial scope for

improvement in Australia India trade relations.

In year 2004-05 trade turnover between India and Australia reached a record A$

7.25

Over the corresponding figure of A$ 5.86 billion in 2003-2004 the amount of total

trade recorded an increase of about 23.7%

India‘s export to Australia was at A$ 1.22 billion at the end 2004-05.

India's import figure stood at A$ 4.87 billion In 2003- 2004, and it amplified by

24% in the next year to stand at A$ 6.05 billion.

The major items that Australia exports to India are as under:

o Copper and copper ores o Silver and platinum o Gold o Wool o Vegetables

36

o Electronic components o Telecommunication equipment

The major items that Australia imports from India include,

o Floor coverings o Precious and semi precious stones o Textile o Leather and leather goods o Agricultural products

Efforts have been made to promote India Australia trade relations through

establishment of Joint Ministerial Commission (JMC) and Joint Business Council

(JBC)

3. India‟s Merchandise Export to Australia

Though merchandise exports by India to Australia are varied but its volumes are not

very huge.

The man items are jwellery, pearls, precious and semiprecious stones, textile materials,

floor coverings, engineering goods, textile yarn, base metals, travel goods and

handbags, men‘s or boy‘s clothing, woman‘s or girl‘s clothing, plantation and agriculture

products, chemicals and related products etc.

4. India‟s merchandise imports from Australia

India‘s merchandise imports from Australia are restricted to a small range of primary

commodities such as copper & concentrates, silver and non ferrous metal scraps,

monetary gold, coal etc. It also include dried fruits, chickpeas, pulses, peas, apples and

manufactured items.

37

5. Major Australian Exports to India

Products Amount (A$m)

Non-monetary gold 7,125

Coal 5,532

Education 3,148

Copper ores and concentrates 1,180

Crude petroleum 499

6. Major Australian Imports from India

Products Amount (A$m)

Tourism 403

Pearls and gems 141

Rotating electric plant and parts 121

Jewellery 107

Medicaments (including veterinary) 87

7. Present Business Volume

o India was Australia‘s 4th largest export destination for its goods and 5th

largest trading partner in goods and services in 2010-11.

o Australia was India‘s eighth biggest trading partner in the year 2010-11.

o Bilateral trade in goods : A$ 17.82 bn. (US$17.66 bn.) (2010-11)*

o India's Exports : A$ 2.08 bn. (US$2.05 bn.) (2010-11)*

o India's Imports : A$ 15.74 bn. (US$ 15.58 bn.) (2010-11)*

o Main exports : Pearls & gems, Rotating electric plants, Jewellery Made-up

textiles, and Medicaments (incl. veterinary).

o Main imports : Coal, non-monetary gold, copper and copper ores, Crude

Petroleum, Fertilizers (excl. crudes) etc.

o Bilateral trade in services :A$ 3.19 bn. (US$ 3.15 bn.) (2010-11)

o India's Service Exports : A$0.69 bn. (US$ 0.68 bn.) (2010-11)

o India's Service Imports : A$ 2.5 bn. (US$ 2.47 bn.) (2010-11)

38

8. Opportunity for the Indian Co. in Australia

Over the past five years India has been the fastest growing market for

Australian exports.

The country‘s highly-skilled and multilingual workforce is a big plus for Indian

companies wanting to set up shop there.

India and Australia are exploring the possibility of a Free Trade Agreement

9. Sectors attractive to Indian entrepreneurs

If we look at the Indian economy, it is predominantly driven by the services

sector. There is a degree of expertise already in India in services but its

domestic expertise. There is a great opportunity to invest in international

services.

In the health and medical fields, Australia is quite advanced, but sometimes

quite short in funds to develop as commercially. Investment into that in

Australia would develop product and service delivery.

There is some very rich R&D concept and product development in Australia

that would benefit to link up with Indian commercialization power.

Tourism too. Here is a real opportunity that comes out of the economic

downturn, apart from the fact that people will have less money; they still want

to go somewhere. We will see more tourists. So investments into the tourism

sector in Australia will see rewards coming from that.

Sports is another area. India should invest some of the expertise that

Australia has in sports medicine, sports management, sports performance,

logistics, and bring in more money.

Year* 2005 - 06 2006 - 07 2007 - 08 2008 – 09 2009 - 10 2010 - 11

Total trade $10.12 bn.

$10.75 bn. $10.92 bn. $17.53 bn. $18.02 bn. $17.82 bn.

India‟s Exports $1.28 bn. $1.46 bn. $1.60 bn. $2.11 bn. $1.84 bn. $2.08 bn.

India‟s Imports $8.84 bn. $9.29 bn. $9.32 bn. $15.42 bn. $16.17 bn. $15.74 bn.

39

GCR - Australia

Part – 2 Building Hardware Industry

40

Chapter – 7

Introduction to Building Hardware

Industry of Australia

41

Introduction to Building Hardware Industry of

Australia

1. Industry Overview

In the fast going world hardware parts and components have become very essential for

every major industry. Hardware industry has rapid grown in the current few years and it

is subsequent growth, development and encourages the economic boom in the several

industrialized country of the world, this sector is one of the largest and most important in

the global market. From construction to IT, textiles and from furniture to banking and

biotech, we can feel the presence of hardware products everywhere. Now a days

different products & varieties of hardware parts and components are available in the

market. Also it is useful for the decoration therefore it gives a different looks where fix it,

whether in the building or other place.

The Building Supplies Wholesaling industry sells everything from plumbing

supplies and power tools to metal fasteners, awnings, and cement, paint and hardware

products. It also sells some timber products such as moldings‘, sashes, trusses,

cupboards, wardrobes and window units. The industry derives 70% of its revenue from

the supply of building materials to the housing construction market. Industry revenue is

expected to total $20.50 billion in 2011-12, down by 3.1% on the previous year. Industry

value added is about $4.10 billion, or 0.4% of Australia's GDP. Over the past five years,

revenue has increased by an annualized 0.5%, falling well short of the pace of

expansion in Australia's GDP (2.6%) and influenced by the divergent trends in the

downstream construction markets.

Building hardware often refered as architectural hardware or construction

hardware or home hardware and even finish hardware is involving all the hardware that

is required in building and construction. Building hardware serve for the decoration,

finishing and safety of buildings like the doors, drawers and windows. There is no Quota

system for Hardware. The constant increasing demand for luxurious building, people

42

would like to purchase unique building hardware products. Therefore the reputed

companies are manufacturing their business to higher value added products. These

building hardware products are describe below:

o Building Products

Building products & supplies can be broadly categorized into:

DoorHardware,Bathroom Hardware, Furniture Hardware, Safety & Security

Hardware,Plumbing Hardware, Cabinet Hardware, Window Hardware,Curtain Hardware

o Manufacturer & exporter of building hardware

Manufacturer and exporter countries like India, Australia, America, Canada, Saudi

Arabia, Taiwan, Sri Lanka, Malaysia, and Singapore. India is the largest country in

manufacturing and exporting of building hardware products.

2. The Australian Hardware Market

A steady growth of the markets for building materials and hardware, there is an

increasing demand for hardware products for interior decoration. The Australian

hardware market is developed rapidly in recent year. This market has grown

significantly over the last decade and is now generally accepted to include home

improvement, home leisure and building products. The market is currently estimated

to generate sales of approximately $22 billion per annum. The Australian hardware

market is manufacture and export of the many hardware products. Sales cover a

wide range of hardware products includes:

o Building products,

o Decorator products,

o Garden, nursery and outdoor leisure products,

o Home hardware,

o Tools and electrical and lighting products.

Australia's per capita hardware consumption is one of the highest in the world, with high

levels of home ownership and dry weather conditions.

43

3. Structure of building brass hardware market in Australia

Australia is having highly fragmented hardware market. Two major players in Australian

hardware market, Bunnings and BBC jointly control 13.2% market share of Australian

hardware market. Key features of Australian hardware market is as under.

o Mostly builders do everything from fitting doors and accessories to providing

the repair and maintenance services.

o The terms and condition for the fitting and selection of the hardware

components are mentioned in the contract.

o Customers have to select items from their display homes and then the price is

fixed.

o One‘s the contract is signed customers need to pay extra cost if they want to

add something more.

o All the facilities are there such as full bathroom, hot water system, air

conditions, security system, gas, cupboards, electric fittings, camera security

etc are provided by the builders.

o Bunnings is the biggest hardware warehouses in each suburb where each

everything in hardware components from high to low prices are available.

o We just have to move and were everything in the home is supplied by them.

44

4. Contribution and role of industry in Australian Economy

The construction industry is the fourth largest contributor to Gross Domestic Product

(GDP) in the Australian economy and plays a major role in determining economic

growth. In chain volume terms, the construction industry accounted for 6.8% of GDP in

2008-09, compared with 7.0% in 2007-08. The industry had previously experienced

seven consecutive years of growth as a proportion of GDP, since the introduction of the

Goods and Services Tax (GST) in 2000-01. As at May quarter 2009 the construction

industry employed 9.1% of the Australian workforce, making it Australia's fourth largest

industry.

The construction industry operates in both the private and public sectors,

engaging in three broad areas of activity; residential building, non-residential building

and engineering construction. Demand for, and supply of, these services is driven by

economic factors including population growth and consumer confidence, changes in

interest rates and inflation. Most recently, government policies affecting housing and

infrastructure projects have been an influence. The availability of resources, such as

labour and building materials, and changes within closely linked sectors (e.g.

agriculture, mining and manufacturing), also drive change in the industry.

There is a current media focus on the residential building component of construction,

highlighting low levels of housing availability and affordability in Australia's major cities.

In 2009, media interest centred around Australia's economic response to the Global

Financial Crisis (GFC), which saw increased Government funding for infrastructure.

Much attention has been given to the affect of government intervention in stimulating

economic growth and maintaining demand for labour, particularly for the construction of

residential and education buildings.

45

5. Major Players in Australian Hardware Market

This section includes brief profile of major players in Australian Hardware Market

I. Bunning Warehouse

There are various products which bunnings produce and therefore is the top most

company in Australia . Various lists of products which bunnings produce which are as

listed below:

Paint Accessories, Storage, Flooring, Kitchens, Bathrooms, Plumbing, Home Safety,

Doors and Gates, Ladders, Fixings, Building Supplies, Building Materials, Garden

Tools, Electrical, etc.

Bathroom and Kitchen Products by Bunnings

o Cooking Appliances :

Various kinds of facilities which are available for bathroom and kitchen by BUNNINGS

are explained as under

Various tools of brass used by bunnings in cooking appliances are as under :

Cooktops which is a cooking unit used for hotplates or burners

Ovens

Range hoods

Sink mixer

46

o Showers

Various varieties of showers are produced by bunnings as hardware brass industry . It

varies in size, shape, quality, etc.

o Lighting and Electrical Fittings

Interior lighting which they provides are as follows

Floor lamps

Mix and match lamps

Pendant lamps

Table lamps

o Hardware Items

Satin chrome trilock Trilock traditional leverset

47

Lockwood785 CYL4 slinding wind lockwood 001 deadlatch

This are some of the hardware products of Bunning which is used in doors, mirrors etc.

o Outdoor Fittings

Counter weight balance Tools used in outdoors fitting

o Tools and Hardware

Hand tools and tools storage include:

Cutting and cleaning tools

Driving Tools

Metal tool mboxes

Shaping tools

48

Services Provided by Bunnings

o Colour Consultant

o Colour Matching

o Gas Swap

o Hire Shop

o Installation

o Moving Planner

o Kids Activities

o Special Orders

o Trailer Hire

o Cutting Keys

o Hot Water Replacement

49

BUNNINGS AND SUSTAINABILITY :

Sustainability is important to BUNNINGS because fundamentally, it's the right thing to

do and customers and Team Members expect it. They make no claim to be perfect and

understand that the operations have an impact – both on the communities they live in

and more widely. As such, they are committed to reducing that impact and building a

more sustainable business.

The following are the benefits of sustainability :

1. Less water

2. Responsible sourcing

3. More education and awareness

The topmost competitor of Bunning is IKEA, which produces similar kinds of products as

Bunning‘s such as all interior decoration and biggest warehouses in world in Sydney.

Other competitors are ACC (Australain Construction Company), Masterton, etc,

50

II. “IKEA”

IKEA is the main competitor of BUNNING‘s. Following is the detail about it :

Products by „IKEA‟

o Eating

Serveware, Coffee & tea, Dinnerware, Cutlery, Glassware & jugs, Place mats & dining

textiles, Napkins.

o Desks

Cable management & accessories, Desks & computer desks, Table tops & legs.

51

o Children's IKEA

(Product name :- PATRULL FAST Safety gate, white)

Safety, Cot mattresses, Baby textiles, Changing tables & nursing, Storage furniture,

Children's tableware, Highchairs, Baby toys, Children's beds, Children's mattresses,

Children's textiles, Junior chairs, Toys & play, Cots, Children's mirrors, Small furniture,

Children's lighting, Storage system, Small storage.

o Cooking

Cooking accessories, Ovenware, Knives & chopping boards, Mixing & measuring tools,

Food storage & organising, Dish-washing accessories, Kitchen textiles, Frying pans &

woks, Pots & sauce pans, Bakeware, Kitchen utensils.

52

(Product name :- KONCIS Roasting tin with grill rack, stainless steel)

o Bathroom storage

Wash-stands, Wash-basins, Taps, Bathroom storage, Bathroom accessories,

(Product name :- GODMORGON/ BRÅVIKEN Wash-stand with 4 drawers, black-brown)

53

o Beds & mattresses

Queen & double beds, Single beds, Guest beds & day beds, Loft beds & bunk beds,

Headboards, Mattresses, Sofa-beds.

(Product name :- PUNKT Castor for soft floors)

o Chairs

Armchairs, Bar tables & chairs, Highchairs, Junior chairs, Stackable & foldable chairs,

Café furniture, Dining sets, Step stools & step ladders, Office chairs, Upholstered

chairs, Chair covers, Dining chairs, Stools & benches.

o Clothes storage

(Product name :- BJÄRNUM Folding hook)

Hooks & hangers, Wardrobes, Chests of drawers, Clothes organisers, Clothes storage

system, Racks & stands, Shoe cabinets, Shoe, coat & hat racks.

54

o Decoration

Candle holders & candles, Clocks, Frames & pictures, Plant pots & plants, Vases, bowls

& flowers.

o Flooring

(Product name :-RIGGA Clothes rack)

o Kitchen cabinets & appliances

Pantry, Knobs & handles, Wall panels, Step stools & step ladders, Interior fittings, Wall

storage, Ovens, Cookers, Hobs, Microwave ovens, Extractor hoods & filters,

Dishwashers, Free-standing kitchens, Kitchen cabinets, Kitchen islands & trolleys,

Kitchen taps & sinks Worktops.

o Lighting

Integrated lighting, Ceiling lamps, Children's lighting, Work lamps, Wall lamps,

Spotlights, LED lights, Bathroom lighting, Floor lamps, Light bulbs & batteries, Shades,

bases & cords, Table lamps.

o Product range :

The IKEA product range is wide in several ways. First, it's wide in function: you'll find

everything you need to furnish your home, from plants and living-room furnishings to

toys and whole kitchens. Second it's wide in style. The romantic at heart will find just as

much as the minimalist. And finally, by being coordinated, the range is wide in function

and style at the same time, and at all times. No matter which style you prefer, there is

something for everyone.

55

Anybody can make a good-quality product for a high price, or a poor-quality product for

a low price. But to make good products at low prices, you need to develop methods that

are both cost-efficient and innovative. That is why at IKEA they approach things a little

differently.

Design the price tag first

See things differently

Flat packing saves shipping cost

Responsibility for people and the environment

Good design and function

o Products and materials :

IKEA works to ensure that products and materials are adapted to minimise any negative

impact on the environment, and are safe for customers from a health perspective. As

part of business idea, they insist on keeping costs low and always try to use resources

wisely when designing the products. They strive to use renewable and recyclable

materials in products.

56

III. “ACC ”

ACC team have established a structure and a system that ensures that they maintain a

unimpaired respect for client relationships, traditional ethics and superb craftsmanship.

ACC provides experienced, expert service throughout the Gold Coast and Brisbane for:

o Developers of residential, commercial, retail and mixed-use construction projects

o Multi-storey, mid-rise unit blocks and developments

o Luxury homes

―Australian Construction Company… Saving you time, saving you money!‖

At ACC, the accomplishments and qualifications to provide any construction service for

any type of development, including: retail, commercial, residential, institutional, medical,

industrial and tourism projects.

Their experience is in building construction, project management and cost

planning has enabled ACC to develop an outstanding management team. This team

works closely with all contributors to the project - the developer, architect, designers,

consultants, etc. Architects and developers rely on ACC to turn their plans into reality,

with the least amount of stress, knowing that with the knowledge of the ACC team, they

can rest assured they would achieve a quality product in the fastest possible time. At

ACC, they offer the complete development service - from conception through building

completion and handover.

o Australian Construction Company: Luxury Homes

A tangible reality

Initial agreement

The contract

The building begins

The project

The keys to your new home

57

IV. “Masterton”

Masterton Homes Pvt Limited is a locally owned private company. Masterton obtain

their revenue from their operations in the house construction industry in Australia. The

company employs over 200 staff.

Masterton Homes have been building homes throughout NSW for 50 years and are one

of the most awards builders in Australia.

Masterton Homes builds and sells home designs that include :

o Single storey Designs

o Double storey designs

o Sloping Blocks $ Tri-Level

o Country Collection

o Duplex Designs

o New Life Series

This Company includes industries which are :

o House Construction in Australia

o Engineering Consultancy Services in Australia

o Multi- unit Apartment and Townhouse Construction in Australia

Masterton Brings excellence in building standards and customer service to each and

every home they build which is proven by continually winning industry awards for

innovative home designs.

58

Chapter – 8

Structure, functions and business

activities of selected Industry

59

Structure, functions and business activities of

selected Industry

1. Introduction

The brass parts industry is primarily an intermediate industry supplying a wide variety of

brass parts and components to almost all the engineering industries ranging from

electrical/ electronics industry to automobile industry. Its phenomenal growth could also

be ascribed to the growth and diversification of other engineering related sectors of the

industry. The brass parts industry has a heavy concentration in Jamnagar. The brass

parts manufactured in Jamnagar find their place in the overseas market to such an

extent that the area is considered to be on111e of the largest automobile and cycle tube

valve manufacturers in the world. Because of their precision and quality, these tube

valves are mainly exported in European and North American markets. The products are

marketed through various marketing channels to countries like U.K., USA, Canada,

Australia, Middle East, Europe, Africa, Sri Lanka, Pakistan, Indonesia, Malaysia,

Singapore, Japan, Bangladesh, etc.

From a few insignificant brass button making units in the cottage sector in the

early 40‘s, Jamnagar now has a vibrant full-fledged Rs.700 crore industry with almost

4,500 units engaged in manufacturing brass-parts, with a product range of as many as

10,000 items. This is besides the 3,500 home-based units, which support job and

manufacturing units with some odd labour-intensive jobs. A staggering 1, 50,000 people

earn their daily bread here.

60

2. History of brass part industry

The brass parts industries in Gujarat is mostly concentrated in an around Jamnagar

district which caters to the requirement of around 70% of the machine brass component

of the country and also in some quantity export to various countries. The brass parts

industry in Jamnagar supplies to wide ranging industries such as electrical appliances,

automobiles, bicycles, electronics, building hardware etc.

As per the account the brass parts industry in Jamnagar above 60 years old. It

started around the late 1940s as a result of downfall of the brass button making units.

The main cause for its downfall was the lack automated machines. They were not able

to meet the demand for the good qualities of buttons manufactured by them. This was

not the only reason the development of nylon buttons in Japan brought down the

demand by a huge margin. It because non feasible for the manufacturer to continues in

the competitive world of buttons. With minor changes in the available machinery the

brass button manufacturer changed their production into brass parts components. Their

led to the development of the brass machine manufacture in Jamnagar. Along with this

the casting also developed in Jamnagar. They were able to do it in a very cost effective

manner.

The brass part products in Jamnagar require a lot of machining activities like

turning, milling, grinding, drawing, boring, threading etc. Jamnagar known as the brass

city of India, has been an important industrial centre since long for brass related parts.

Jamnagar is inhabited by a various types of brass related work units which include

Brass foundry; Brass parts manufacturing, Electroplating and Extrusion units. There are

about 3500 brass related units alone in Jamnagar. Majority of these Brass units in

Jamnagar are in operation since last 15 to 20 years. All these units are located in

pockets of Shankartekri, MP Shah Udyognagar, Patel colony and Dared areas.

61

Jamnagar Brass cluster like many other clusters was in dire-straits with regard to

the energy efficiency and conservation. In almost all units, whether big or small, there

had been no conscious effort to take up energy conservation and energy efficiency

measures as a part of day to day operations. Many a times, the small scale

entrepreneur was not even aware of measures that could bring down the percentage

energy cost, which automatically brings down the manufacturing cost. Some of the

bigger units had experimented with few parameters to improve energy efficiency in the

units, but the results and outcome was confined to them only. All the units in Jamnagar

Brass cluster had been operating in traditional conditions and most of

equipments/utilities using in cluster were procured from the local suppliers. They are

making the equipments on their traditional expertise, which had remained unchanged

over the years. Till now there has been very little focus on energy conservation activities

in the units. Also, there have been no concrete external interventions as well to help the

small units come out of their shell and rise up to the necessary energy efficiency

benchmarks.

3. Raw material used:

The raw material requirement of the Jamnagar Brass cluster is met mainly from the

following three sources:

Old brass, copper and bronze utensils

Imported brass scrap and honey

Brass scrap from ship breaking yard

Majority of the raw material requirement in Jamnagar Brass cluster is met

through imports. The countries from which it is imported are USA, Singapore, Gulf and

European countries. The imported raw material is available mainly in three forms i.e.

Honey scrap, Dross of brass & Pale in the form of strips.

The quality of brass scrap and honey varies widely and its composition is not

uniform. Most of the times, this scrap is made of two to three different metals and the

job of the worker is generally to separate other metals (like aluminium, iron) from the

62

copper and brass. It is a tedious process but still practice in Jamnagar. Moreover the

separating process can never be 100% accurate and a lot of impurities and other metals

reach the foundry for melting. As a result the quality of casting is affected.

Technically speaking brass is an alloy of Copper and Zinc and ratio of these

products is 60:40 respectively. For getting the right products and good quality, it is

important that this composition is maintained. However, due to the heterogeneous

nature of the scrap (honey) and different alloying of the base metal, it becomes almost

impossible to maintain this ratio. As a result, the quality of the final product varies,

defects are produced and the rejection rate increases. Apart from the Brass scrap;

copper, zinc, led, other metal alloys and clay etc are used as raw material depends on

the final product requirement.

4. Products manufactured:

Major products manufactured in Jamnagar Brass cluster are:

Building hardware like Door & Window Hinges, Stoppers, Knobs, Studs, Handles

Sanitary & bathroom fittings Like Venetian Blinds, Hangers, Taps, Curtain fittings

Electronic & Electrical accessories like Socket pin, Battery terminal, switches,

tester, computer sockets

Automobile & Cycle tube valves, Industrial control valves

Agricultural Implements like Tractor accessories

Brass jewellery and Buttons like Necklace, Ear rings, Bracelet, Rings, Bangles

Various other precision machine components as per customers specification

Pen parts

The products manufactured in the Jamnagar Brass cluster weigh in a range from

1 gm to 10 kg and in terms of its length and diameter it varies from .05 mm to 60 cm.

The following figure shows the classification of Brass part manufacturing units based on

type of manufacturing product.

63

5. Present status of the industries

Jamnagar is known as a reputed brass parts manufacturing centre for more than half a

century. At present there are 4,500 units engaged in brass parts and component

manufacturing in Jamnagar. The industry gives direct employment to nearly 50,000

workers and nearly 1, 00,000 persons indirectly. Beside the 4,500 brass parts

manufacturing units, there are 130 electroplating and metal finishing units and about

400 brass foundries. These foundries cater to the needs for raw material of these local

enterprises. Of the 400 brass foundries, 20-25 are oil-fired and rests are coke-fired. It is

estimated that around 280-300mt of brass scrap is recycled every day.

The value of the products manufactured in this cluster Rs960 crore per annum.

Of this, Rs. 392 crore worth of brass parts is exported and the rest supplied to the

domestic market. While 95 per cent of the brass scrap is imported, exports of the brass

parts (especially bicycle tube valves, auto valves, battery terminals and cable glands,

builder hardware, safety razors, inserters and other electric items, grease nipple, pencil

sharpeners, precision computer and telecom parts and components, brass parts and

components used in aircraft/ space craft) is put at about 20 – 22 per cent of the total

turnover. Exports are growing at an annual rate of 15 per cent since the last 5 to 7

years.

The product-wise contribution of output is: Automobile and cycle tube valve-35

percent; Building Hardware-25 percent; Sanitary and bathroom fitting-15 percent;

Precision components-5 percent; other catagories-20 percent. As mentioned earlier,

brass parts and components have wide range of applications especially in the

engineering industry. Approximately 10,000 varieties of brass parts are manufactured in

this city. Most of these parts and components are turned in 5-10 sized. If we multiply

these sizes with the number of parts and component, the range becomes staggering.

Almost every day some new part or component is added to the list. However, most of

the entrepreneurs manufacturing these parts and components do not know the end use

of their product, as they work on the basis of drawings provided by their clients.

64

6. Global presence

The brass parts manufactured in Jamnagar finds its place in the overseas market

as well. Jamnagar is one of the largest automobile and cycle tube valve manufacturers

in the world. Because of its precision and quality, these tube valves are exported in

European and North American markets. The products are marketed through various

marketing channels to countries like U.K., USA, Canada, Middle East, Europe, Africa,

Sri Lanka, Pakistan, Indonesia, Malaysia, Singapore, Japan, Bangladesh, Italy,

Germany, Australia, France, Norway, Saudi Arabia, Yemen, Thailand, etc.

7. Factors behind the development of brass parts industry

in Jamnagar

The process of emergence of brass parts cluster in Jamnagar was spontaneous and not

induced. A few pioneering entrepreneurs started manufacturing screws, pins and bulb

holder. As their enterprises grew in volume and operation, others also followed.

Availability of raw material

Raw materials used in brass parts are brass honey, dross of brass, pales in the form of

strips and other scrap. This raw material became easily available in and around

Jamnagar at a reasonable price. As the industry grew the process of procuring raw

material, from within the country and abroad became more and more smooth. Other

inputs like coke, molasses and machines were also available locally.

Skilled manpower

Easy availability and low cost of labour was an important factor for the development of

the industries. Skilled manpower was easily available within the city and because of

higher payments, more and more agricultural labourers, marginal farmers and even salt-

workers started learning the skills of making brass parts. Also the level of agricultural

development was very low mainly due to scarcity of water so Brass Parts industry was

becoming an easy alternative for people. Due to the low-cost labour, getting brass parts

manufactured was becoming cheaper for the large industries as compared to imports of

these parts.

65

Customized machines

The Jamnagar is also known for its ability to manufacture customized machines.

Depending on the job, its configuration, local technicians were able to make desired

modifications in the existing machines. This provided flexibility in the process of

manufacturing, which is considered to be one of the most important facilitating factors

for the growth of the brass parts industries in Jamnagar.

Existence of well developed ports

Jamnagar has a pretty long coastline and the ports developed by Gujarat Maritime

Board (GMB) were well developed. GMB has developed two ports viz., Rosi Bandar &

Bedi Bandar. These ports had facilities of doing loading and unloading business in the

ship. These ports have really contributed in flourishing the export-import business not

only for brass parts manufacturing enterprises but also for enterprises involved in

manufacturing chemical, fertilizer, textile and salt. Moreover the strategic location of

Jamnagar made export-import business easier.

Flexible specialisation

There are about 10,000 varieties of brass parts manufactured in Jamnagar. The

entrepreneurs were able to make wide range of parts having different configuration,

dimensions and tolerances. Even the machines are customised locally and made

available in the market at reasonable prices. Disintegrated firms and subcontracting

arrangement made the manufacturing more flexible and specialised. Even when the

buyers placed orders of 200000 pieces of a particular size cycle tube valve and 25/30

pieces of other sizes cycle tube valves, the manufacturers were able to execute the

same.

The soil base

Though there is no apparent technical reason to support their clay, the entrepreneurs at

Jamnagar are of the opinion that the soil (―chikni mitti‖) composition also helped in

manufacturing quality brass castings. A composition of oil and sand is used in the mould

to a particular give shape and size to the brass parts. The more is the binding property

of soil and sand, the better is the quality of casting manufactured. The availability of

water also ushered the growth of the industries.

66

Patronage from govt. Of gujarat

The Industries Dept, Govt. of Gujarat has facilitated the growth of the industries by

providing basic infrastructure and loan on easy terms. In the year 1976, Gujarat

Industrial Development Corporation developed the GIDC industrial estate in Shankar

Tekri. Land, electricity, water and industrial sheds were also provided amply.

Entrepreneurship

Gujarat is well known for its entrepreneurs. People here, especially in Saurashtra region

(Jamnagar belongs to Saurashtra region of Gujarat) are very entrepreneurial in nature.

If they get slightest business opportunity they will not mind to jump on it. As some

pioneering people started the business and getting good return on their investment,

others did follow. This has happened with diesel engine cluster in Rajkot, Tiles cluster in

Morbi etc. The demonstration effect and the entrepreneurial and risk taking attitude of

the local people also paved the way for the growth of this cluster.

Market potential

There was enough potential in the domestic market for these parts manufactured

in Jamnagar. During the early years, electrical pins, holders, cycle tube valves were

marketed in Calcutta, Mumbai, Ludhiana and Delhi. It was the time when buyers from all

over the country were eager to get brass parts from Jamnagar and they were ready to

make book orders by making advance payments. Moreover, in the early 1960s, the

bicycle manufacturers within the country. Reduced their import substantially and started

procuring it from the domestic market.

Besides, in the late 70s, the leading cycle tube valve manufacturing countries like

Germany, Italy, USA, Japan changed their product line from tube valve to precision

components. They were interested in making high value products instead of low value

ones. They started concentrating more and more on premium product line to get higher

value for their product and greater return on their investment. This factor opened a new

avenue for the manufacturers at Jamnagar and they started exporting the cycle tube

valves to these developed countries during late 70s and early 80s. All these have

contributed for the emergence and growth of the brass parts industries at Jamnagar.

67

8. Jamnagar brass scenario:

Jamnagar has been recognized as most important industrial centre for brass parts so

Jamnagar is known as brass city in India. Various types of brass related work units

which include Brass foundry; Brass parts manufacturing, Electroplating and Extrusion

units are occupied in Jamnagar. There are about 3500 brass related units alone in

Jamnagar. Majority of these Brass units in Jamnagar are in operation since last 15 to 20

years. All these units are located in pockets of Shankartekri, MP Shah Udyognagar,

Patel colony and Dared areas. The brass part products in Gujarat require a lot of

machining activities like turning, milling, grinding, drawing, boring, threading etc.

9. Structure of brass parts industry in Jamnagar

The industry in Jamnagar is unique in the sense that almost 98 percent of the

production is carried out by small sector industries.

ENTREPRENEURS WHO IMPORTS SCRAPS AND HONEY

CASTING UNITS

MACHINING UNITS

PLATING UNITS

DEALERS, MERCHANT TRADERS, EXPORTER AND

MARKETING AGENTS

SUPPLIERS OF MACHINERY AND TOOLS, PACKAGING

MATERIALS ETC.

68

Category-1:

In the first step of structure there comes an entrepreneur who imports brass craps and

honey and then distributes it to the local manufacturers as per their requirement. For

booking orders more than 500 tons per annum entrepreneurs can get 10% discount on

import duty as per government policy. This policy has become specialized activity and

there are about 20 large importers in Jamnagar.

Category-2:

After the entrepreneurs from the first stage provides the scrap to the manufacturers then

comes casting unit at second stage. The imported scrap and honey and the locally

available pale and dross are melted in the foundry. The melted metal is then poured in

the mould to give different shapes and sizes. There are about 400 brass foundries

supplying the basic raw material (i.e. casting) to the machining units. Quality control and

standardization is very much important in this phase. This is one the most problematic

areas in Jamnagar and a lot of technological intervention are required to minimize

defects and produce quality castings.

Category-3:

This stage comprises Machining units. Jamnagar is known for brass machining

operation. Over here, by machining the casted component is given its final shape, size

and configuration. There are several types of machines available in Jamnagar like

drawing machine, slotting and drilling machines, turning machine, cutting and threading

machine, grinding machine, milling machine, etc. The most of the value addition is done

in the machining phase and there is lot of technicalities involved in the process of

manufacturing. Lot of technical training, technology up-gradation and implementation is

to be carried out in this machining phase. There are around 5,000 enterprises involved

in this brass parts machining business.

69

Category-4:

Plating units engaged in electroplating business are the main constituents of this

category. This is the last operation and defects in which can be immediately seen by the

customers. It is not necessary that all the brass parts needs to be plated before it

reaches the final customers. Only in specific products, for e.g: electronics and electrical

accessories, the process of electroplating is done. There are around 130 electroplating

units in Jamnagar. They are basically doing the job work for the large manufacturers.

Category-5:

This stage is comprised of dealers, merchant traders, exporters & marketing agents.

80% of the brass parts manufactured in the cluster are sold through these

dealers/traders. Only in limited number of cases manufacturers sell their products

directly to the customers. Most of the exporters are located in Mumbai, New Delhi &

Calcutta and the manufacturers are supplying their products to various exporters. There

are also big traders who procure and sell the product in the domestic market. About 250

small, medium and large traders/exporters are involved in this business.

Category-6:

In this category, there are suppliers of machinery and tools, other inputs like jigs and

fixtures, molasses, coke, crucible, furnace, measuring instrument, borax, packaging

material, etc. These supplies/ inputs are required in various stages of manufacturing

and finishing process. There could be 200 such players in this category.

70

10. SWOT analysis of brass industry

STRENGTHS WEAKNESS

Markets Markets

Strong presence in the domestic market Loosing ground in the international market

Ancillary arrangement with large industries Lack of information on customer

preferences in the international market

Developing trust and relationship in the long

run

Middlemen/ traders enjoying most of the

profits in the value chain

Not much import of brass parts (till date) ----------------------------------------------------

Technology Technology

Availability of customized machines Traditional method of production

Machines are available at low prices Low level of technological development

Demonstration effect Manufacturing defects and high rejection

rate

------------------------------------------------------ Problems with quality and productivity

Inputs availability Inputs availability

Raw material and other inputs available in

sufficient quantity.

Most of the raw materials are imported

----------------------------------------------------- High custom duties on raw material

Innovation capability Innovation capabilities

Ability to develop duplicate & customized

machines

Hardly any changes brought in design,

technology, process and marketing

Flexible operating practices ----------------------------------------------------

Skills Skills

Vast pool of skilled labourers Non-existence of technical training

institute

On-the-job learning possible No skill upgradation training for the

workers

Business Environment

Stable business environment till 1998

71

OPPORTUNITY THREATS

Markets Markets

Globalization can usher tremendous market

potential for the competitive firms

Competition is going to increase

Tariff and non-tariff barriers are depleting Overseas importers suddenly change their

sourcing country

Quality & productivity is the rule of the game Imports increasing in the coming years

Enterprises can join hands together for

international marketing & brand building

-------------------------------------------------

Technology Technology

Advent of latest technology through

intervention

Low level of technological development

can cause a major threat unless it is

changed/modernized

Increasing technological awareness among

entrepreneurs

Technology is an ever changing process

Tremendous enthusiasm on the part of the

industry actors

----------------------------------------------------

Brighter prospects of establishing Common

Facility Centre

---------------------------------------------------

Possibility of establishing R&D institutions or

laboratory

---------------------------------------------------

Inputs Availability Inputs Availability

Competition is going to make availability of

inputs cheaper and sufficient

Difficulty in encountering competition

unless raw material imports are made

cheaper

-------------------------------------------------- Quality of raw material

Innovation Capability Innovation Capability

Exposure visits, participating in exhibitions

making the entrepreneurs and technicians more

innovative Demonstration effect

Innovation is required in every facets of

business operations

Skills Skills

Increased awareness is likely to improve the

skill base of the workers

Skill base of the workers needs

upgradation to adopt latest technology

Business Environment

-------------------------------------------------- The changing business environment is

always a problem for the less enterprising

firms.

72

11. Industry structure analysis

The above figure depicts the Industry Structure Analysis of the Brass Parts Industry in

Jamnagar. This industry structure analysis determines firm level profitability,

competition, SME viability and prospect of growth.

The entry barrier in the above cluster is low because anyone can enter the

industry with a minimum investment of Rs. 30,000-50,000/-and inputs are available

plenty. There is no proprietary skills/ technology and there is hardly any product

differentiation and brand identification. But for some enterprises, customer loyalty is

very high. There are enterprises, which are supplying their parts, components to the

large industries and fixed clientele abroad for the last 20-25 years. Another positive

factor is the economies of scale. These two factors (customers loyalty and economies of

scale) pose some impediment for new firms entering into business. Adoption of latest

technology (which is a costlier affair) can certainly provide impetus for the growth of the

large firms. Moreover, enough emphasis should be given on brand building. Technology

and brand can serve as entry barriers.

The rivalry amongst firms is moderate as it is limited in the exporting market

front. Rivalry among firms can be made healthy by encouraging non-price competition

and product differentiation. Rivalry is moderated by the fact that the exit barrier is also

very low.

73

The bargaining power of the suppliers in the cluster is low and there are a large

number of suppliers available in the market. There is hardly any switching cost from one

supplier to another and no input differentiation. There is hardly any evidence of

suppliers forward integrating. The bargaining power of the suppliers can further be

reduced by forming hard networks for common bulk purchase.

So far bargaining power of the customers is concerned, it was found to be on the

higher side. There is hardly any product differentiation and the customers can switch

from one supplier to another. The switching cost is also very low. Moreover, customers

are quality and price sensitive. However, for some enterprises there is strong customer-

supplier relationship and the level of trust and loyalty is very high. Some customers of

the large industries do not want switch over to new supplier on the fear of getting bad

quality and not ―in-time‖ delivery. The bargaining power of the customers can be

reduced by forming consortium, promoting brand building and encouraging product

differentiation.

74

12. Types of operations:

Brass units in Jamnagar Brass cluster are engaged in three different types of

operations; those are:

Casting (Brass foundry & Extrusion)

Machining

Electroplating

Wiredrawing:

The brass rods are wire drawn to obtain fine finishing. This process is necessary to give

the brass rods an even surface before they are put to machines for turning.

Turning:

With the aid of dies and other tools the finished rods are turned into parts and

components. This is the main operation through which every brass parts and

component has to pass before other operations are performed on it.

Threading:

The turned parts are then put to threading operations. This operation is necessary only

for the parts requiring threads which are not a common feature to all the components.

JAMNAGAR

CASTING

MELTING SECTION

MOULDING SECTION

MACHINING

DRAWING/ SHAVING

TURNING/ CUTTING

DRILLING THREADING POLISHING

PLATING

GOLD, SILVER, ZINK,

NICKEL, COPPER ETC

PLATING

75

CASTING MACHINING PLATING

Drilling:

After drawing of threads, or as applicable, the parts are put to drilling operations and

drilled as required.

Grinding:

Parts required to be put through the grinding process are ground.

Slotting:

Parts requiring slots are put to slotting operation and the required numbers of slots are

made on the parts. The last three operations need not follow the order given above.

They can be interchanged according to the requirement of a part. They have been given

here to illustrate the main processes that go into making a whole part but need not

follow in every case.

Checking:

The finishing parts are then checked individually for machining and other defects and

defective ones segregated.

Packing:

Brass parts are packed in dozens, numbers, gross and kilogram as the packing nits

according as the nature of the parts and trade practice applicable to them.

13. Production process followed by brass industry

The manufacturing process of brass parts is comprised of three main operations.

Casting, Machining and Plating. Following chart depicts the process.

The brass scrap is melted at 1600 0C in the foundry. The same is poured in a

mould to get the final casting. The casted material, mostly brass rod/ wire is then goes

through various machining operations like drawing, cutting, milling, drilling, threading,

burnishing, etc. The machining process is job-specific and varies from one product to

another. The machined component, parts is then sent to plating shop for electroplating.

76

Some of the plating operations done in Jamnagar are: nickel plating, zinc plating,

copper plating, cadmium plating, silver plating, cobalt plating, gold plating, etc. The

plating is done as per the requirements of the customers and application of the parts in

the final product. For example, to get superior conductivity electrical parts are generally

copper or silver-plated.

77

Chapter – 9

Comparative position of brass building

hardware industry with India and

Gujarat

78

Comparative position of brass building hardware

industry with India and Gujarat

1. Construction and building Material

The construction industry is the second largest industry in India after agriculture.

It accounts for about 11% of India‘s GDP23. It makes significant contribution to the

national economy and provides employment to large number of people.

According to a study by ASSOCHAM, the burgeoning Indian construction industry,

currently worth $70 billion, will rise to US$120 billion by 2010.24The Commonwealth

Games - 2010 in New Delhi have thrown mega opportunities for Building Material

Companies, Construction Equipments & Technologies companies. The Govt. of India

has permitted FDI up to 100% for development of integrated townships in India last

year. India is now the second most favored destination for FDI, behind China The Indian

construction industry, an integral part of the economy and a conduit for a substantial

part of its development investment, is poised for growth on account of industrialization,

urbanization, economic development and people's rising expectations for improved

quality of living in the coming years

23

www.indianmirror.com/indian-industries/construction.html 24

www. I H S G L O B A L I N S I G H T. C O M / C O N S T R U C T I O N

79

2. Importance of construction infrastructure in India

As India continues down its path of development, infrastructure is no less important.

Although the Indian government has been proactive in building necessary infrastructure

in the energy, transportation, and urban sectors, additional investment is needed. India

is the fourth largest economy, with a GDP of US$1,242.8 billion in 200825. Between

2000 and 2008, India's GDP growth rate doubled from 5.7% in 2000 to 9.3% in 2007

before tapering to a robust 7.9% in 200826. The industrial sector has predominately

fueled this growth. During 2000-07, contributions by the industrial sector to India's total

value-added increased from 26.2% in 2000 to 29.4% in 200727. According to IHS Global

Insight, India's GDP is expected to continue along a robust growth path, albeit slower

than growth witnessed in recent years. Between 2008 and 2012, India's real GDP

growth will range between 6.5% and 8.2%28. During the same period, India's nominal

GDP growth will range from 9.3% in 2008 to 13.5% in 2012, with a negative growth rate

of 1.7% in 200929.

3. India‟s construction industry

Construction is an important part of the industrial sector and one of the core

sectors of India's economy. According to IHS Global Insight, US$175 billion was spent

on construction in India in 2007 after growing 156% since 200030. Out of US$175 billion,

US$140 billion was spent on nonresidential, and the remaining US$35 billion was spent

on residential construction. Construction spending is expected to increase to US$370

billion by the end of 2013, with residential totaling US$63 billion and nonresidential

registering US$307 billion. This represents a compound annual growth rate (CAGR) of

13.3%.31 IHS Global Insight's nonresidential construction forecast for India, including

major sub-categories— transportation, public health, energy, office, commercial,

institutional, and industrial— is expected to rise at a CAGR of 13.9% during 2007-13. 25

www. Otcrepoter.com 26

www. scribd.com 27

www.scribd.com/doc/35545727/India-Construction-1-7 28

WWW. I H S G L O B A L I N S I G H T. C O M / C O N S T R U C T I O N 29

WWW. I H S G L O B A L I N S I G H T. C O M / C O N S T R U C T I O N

30 www.otcreporter.com/Reportdetails.asp?rptid=347

31

www.indiaconstructionindustry.com

80

4. Evolution of Brass:

The introduction of metal changed the lives of the people in the ancient world. It made

agriculture easier, providing farmers with more efficient tools to work their land. The first

two metal and its alloy widely used by humans, copper (and its alloy brass) and gold are

still important in people‘s lives today.

There was tremendous change in the industrial revolution due to the production

of copper and its alloy beginning with a demand for more and better raw material. Brass

has long been the first material of choice in the construction of measuring instrument for

use of sea or in any moist, salt-laden atmosphere32.

5. Brief History of brass industries in India

The story of Indian Brass began during the age of the Indus Valley civilization i.e.

around 2400BC to 1700BC33. The extraction of this spread to other sites such as

Kalibangan in Rajasthan, Lothal in Gujarat and Laimabad in Maharashtra. The two most

well known sites are of course Mohanjodaro and Harappa.

6. History of Brass Industries in Gujarat

Gujarat has been the home of metal workers from as early ages. It was spread all over

the state. Brass parts are used in building hardware components. Builders' hardware, or

just builders hardware, is a group of metal hardware specifically used for protection,

decoration, and convenience in buildings. Building products do not make any part of a

building, rather they support them and make them work. It usually supports fixtures like

windows, doors, and cabinets. Common examples include door handles, door hinges,

bolts, latches, numerals, letter plates, switch plates, and door knockers. The brass

industry of Jamnagar is one of the largest in India. The brass parts industries are mostly

concentrated in an around Jamnagar district. It caters to the requirement of around 70%

32John Zronik, ―Metal Shapping our world‖, Published By Crabtree Publishing Company, Canada,

2005,

33

Damodar Dharmanand Kosambi, ―Ancient India: a history of its culture and civilization‖, The University

of Machigan, Panthoon Books, 1966, page-26.

81

of the machine brass component of the country34. It also export the brass to various

countries. The brass parts industry in Jamnagar supplies to wide ranging industries

such as electrical appliances, automobiles, bicycles, electronics, building hardware etc.

The following table shows the illustrative growth of brass parts industries in Jamnagar

Table No.1

GROWTH OF BRASS PART INDUSTRIES IN JAMNAGAR

Sr.no Year No.of units

1 1952 1

2 1954-55 15

3 1960-61 250

4 1967-68 700

5 1979-80 1500

6 1988 3000

7 1994 3500

8 1998 4500

9 2000 4000

10 2008 5000

11 2012* 5200 Source: Jamnagar factory owner‘s association

* Expected to be 5200 units in 2012.

The above table shows the emergence and growth of Brass part industries in

Jamnagar. It was started in 1952 with 1 unit. And in mid 1950‘s the number increased to

15. Then in 1980‘s the number rouse to 1500 units which showed a great increase. But

in 2000 the number decreased to 4000 units from 4500 in 1998 due to the recession

period. But again in 2008 it rouse to 5000.

34

S.P. Kashyap, Indira Hirway, ―Dynamic Development in Gujarat‖, Centre for Development Alternatives,

Ahmedabad, 2002,

82

7. CURRENT OUTPUT

So far output is concerned the value of products manufactured from this cluster is 300

crores per annum. Out of this, 30 crore worth of brass parts are exported and the rest

are consumed in the domestic market. The product wise contribution of the output is as

follows :

The following figure shows the classification of Brass part manufacturing units

based on type of manufacturing product.

Table No. 2

Classification of Brass part manufacturing units in Jamnagar Brass cluster

Products Proportion

Automobile and cycle tube valves 35%

Building hardware 25%

Sanitary and bathroom fittings 15%

Precision components 5%

Other categories 20% Source: WINROCK International India

GRAPH NO 1

35%

25%

15%

5%

20%

proportion

Automobile and cycle tube valves

Building hardware

Sanitary and bathroom fittings

Precision components

Other categories

83

Automobile and cycle tube valves and building hardware consist of 35% and 25%

respectively. 70% of machined brass components of the country is manufactured in

Jamnagar. Builders hardware is commonly available in brass, steel aluminium, stainless

steel, and iron. Main suppliers in the world of builders hardware mainly exist in China,

India, Mexico and some in the U.S.

8. Types of products Door hardware

Furniture hardware

Safety & security hardware

Plumbing hardware

Cabinet hardware

Window hardware

Curtain hardware

The products manufactured in the Jamnagar Brass cluster weigh in a range from 1 gm

to 10 kg and in terms of its length and diameter it varies from .05 mm to 60 cm. The

following figure shows the classification of Brass part manufacturing units based on type

of manufacturing product.

So from the above graph no 1 we can see that the building hardware unit of

Jamnagar brass part industries is second highest among the brass part manufacturing

units. Its scope in world market is very high.

So if we want to start the building hardware industry in Australia it will benefit us.

So the scope of starting the industry is very wide and especially the material of

building hardware which will be exported from Gujarat and Jamnagar will be of great

benefit in Australia as Jamnagar is the hub of brass industries. It is beneficial due to

following advantages.

84

9. Scope of industry in australia

So the scope of starting the industry is very large and especially the material of building

hardware which will be exported from Gujarat and Jamnagar will be of great benefit in

Australia as Jamnagar is the hub of brass industries.

o customization of machines available in the market

o availability of raw material

o enough potential market for these parts manufactured in Jamnagar

o easy availability of the labour

o low labour cost

o established GIDC industrial estate

o Establishment of ports

o strategic location

o flexible specialization

85

Chapter – 10

Present Position and Trend of business

with India during last 3 to 5 years

86

Present Position and Trend of business with

India during last 3 to 5 years

Bilateral merchandise trade between India and Australia for the calendar year 2010

stood at A$ 18.336 billion, higher by 11 % over last year 2009. Indian export to Australia

for the calendar year 2010 was A$ 1.967 billion a fall of 3.1 % , over the same period in

2009, while Indian imports from Australia stood at A$ 16.368 billion a rise of 13 % for

the same period.

87

Bilateral merchandise trade between India and Australia has increased by an annual

average of around 18 percent over the past five years to 2010. India was ranked fifth

among Australia's merchandise trading partners in 2009 - 10.

India‟s exports of merchandise goods to Australia.

India top ten exports represent around 38 % of its overall export to Australia. Diamonds

& gems, Jewellery and Medicaments were the top three commodities from India. India‘s

exports of merchandise goods to Australia have increased by an annual average of

around 11 percent over the past five years to 2010.

Indian top ten exports to Australia 2010

88

India‘s imports of merchandise goods from Australia. The main Imports include three

commodities – coal, non monetary gold and copper ores which account for 82 percent.

Coal was the dominant import in 2010. India‘s imports of merchandise goods increased

by an annual average of over 19.5 percent over the past five years to 2010.

Indian top ten imports from Australia 2010

89

Bilateral Trade in goods over the last five years 2006 to 2010.

Data Sources: Australian Bureau of Statistics &DFAT

90

Chapter – 11

Policies and Norms of Selected

Country for Selected Industry

91

Policies and Norms of Selected Country for

Selected Industry

There are various formalities and registrations to be made with different authorities

before an exporter can enter into export business and accept an export order.

Selection of name of the firm

An entrepreneur can choose any name for the firm he wants to start. It is desirable that

the name of the firms indicates that the business relates to export/import.

Approval to name of firm

There is no need to obtain prior approval of regional licensing authority of DGFT

(Directorate General of Foreign Trade) for the proposed name of business firm.

However, if the firm is planning to export readymade garments to any country; approval

from Apparel Export Promotion Council (AEPC) is required. The entrepreneur has to

apply to AEPC in the prescribed application form for the clearance of the name. Once

the name is approved, registration of firm in that name with AEPC is to be made within a

period of three months. After the registration is done, the firm would become registered

exporter.

Registration of Organization

The form of organization can be sole partnership, partnership firm under Indian

partnership act, 1932 or join stock company registered under the companies act, 1956.

Opening of Bank Account

The firm or company has to open a bank account with branch of a commercial bank,

authorized by reserve bank of India to deal in foreign exchange. The firm may require

pre and post shipment finance for its business

Obtaining Permanent Account Number

Export income is subject to a number of exemptions and deductions under the income

tax act. For claiming those exemptions and deductions, it is necessary for every

exporter to obtain permanent account number from the income tax authority.

92

Registration with Sales Tax Authorities

Exporter need not pay sales tax while making purchases meant for export. But for

availing the benefit, firm has to register with sales tax authorities and secure sales tax

number.

Importer - Exporter Code Number (IEC)

No export or import transaction can be made without obtaining an importer-exporter

code number. IEC number is a pre-condition for exports from and imports into India. IEC

number entitles to import or export any item of non-prohibited goods. This code number

is made compulsory now. The registered/head office of the applicant shall make an

application for grant of IEC number to the regional office of DGFT (known as Regional

Licensing Authority), having territorial jurisdiction over the firm, along with the following

documents: profile of the exporter/importer, demand draft from a bank for rs.1000 as

fees, certificate from the banker of the applicant, two copies of passport size of the

applicant, declaration on applicant‘s letterhead that there is no association of the

applicant‘s firm with caution listed firms. The licensing authority shall allot the IEC

number in prescribed format. There is no expiry date for iec number. This number is

invariably used in all documents particularly in bill of entry in case of imports and

shipping bill in case of exports.

Registration Cum Membership Certificate (RCMC)

It is obligatory for every exporter to register with appropriate Export Promotion Council

(EPC) and obtain registration cum membership certificate. Any person applying for

import or export license or any other benefit under the current EXIM policy is required to

obtain registration cum membership certificate (RCMC). The benefits provided in the

current EXIM policy are available only to those having valid RCMC with the receipt of

the certificate the exporter will be known as ―Registered Exporter‖.

93

Registration with Export Credit and Guarantee Corporation

(ECGC)

The exporter should also register with export credit and guarantee corporation of India

(ECGC) in order to secure export payments against political and commercial risks. It

also helps to get financial assistance from commercial banks and other financial

organization.

Registration with other authorities

It is desirable for the exporters to become members of local chamber of commerce,

productivity council or any other trade promotion organization recognized by the ministry

of commerce or industry. Local membership helps the exporters in different ways,

including in obtaining certificate of origin, which is vital for exporter to certain countries.

Registration for business identification number (BIN)

The exporters have to obtain pan based Business Identification Number (BIN) from

DGFT (Director General Foreign Trade) prior to filling for custom clearance of export

goods. Purpose of bin is to bring a common identification number to all persons dealing

with various regulatory agencies such as custom department, central excise etc.

Export Licensing

Many items of goods are free for exports without obtaining any license, if they do not

fall in the negative list. The negative list consist of goods the import or export of which is

prohibited, restricted or canalized.

Prohibited items

These items cannot be exported or imported. These items include wild life, exotic birds,

wood and wood products in the form of logs, timber, pulp and charcoal. These are the

items, export or import of which is restricted through license. They can be imported or

exported only in accordance with the regulations governing in this behalf.

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Canalized items

Goods which are canalized can be imported or exported through the canalizing agency,

specified in the negative list. So it is necessary for the exporter to check the nature of

the item before he enters into the contract or even makes efforts to secure the export

order. Needless to add, the items of export agreed upon should not be fall in the

negative/ banned list.

Import Export Policies

o Processes for import clearance

o Import Clearance Processes35

Custom clearance is compulsory for all goods imported into Australia.

For goods valued $1000 or above importers are required to obtain formal

custom clearance.

Self accessed declaration is required for the consignments valued below

$1000.

For processing declaration cost recovery schemes are used by custom.

Depending on the form of entry in electronic or manual declaration the

amount of cost is determined.

Customs also provide assistance to the private importers to clear their

own goods

o Document Requirements36

All shipments tendered to Federal Express should have an International

Airway Bill as well as a completed Commercial Invoice that covers each

of the following: currency (US dollars, AU dollars, etc); invoice terms

(FOB, CIF, etc); complete description of the goods; name and complete

address of the consignor and consignee; country of origin of the goods;

value of the outside packages; quantity of the goods, selling price of the

goods to the buyer; amounts of any freight or insurance costs associated

with the transport to Australia; labour costs incurred in packing the

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goods; amount of any royalties paid; any details that might affect the

selling price such as discounts, rebates, compensation, etc.

The customers are also required to obtain licences, permits, and

clearances as required by government policy

All multiple piece shipments (MPS) require a commercial invoice

detailing the contents of each individual package within the shipment.

o Valuation by Customs 37

Based on WTO‘s valuation agreement, customs determines the value of

goods imported into Australia.

Transaction value method is the most frequently used method used to

determine the custom value.

Transaction value method is based on the price actually paid for the

goods

The price paid or payable might be subject to adjustment. In some

cases this may also include additions for commissions or royalties not

included in the original price. Alternative valuation methods are

considered for determining the value of customs in case the price paid

cannot be accepted.

The customs value also includes all the costs incurred in the form of

foreign inland freight and foreign inland insurance.

Likewise, the customs value also include, the cost of outside packages

and labour for packing.

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o Import Duties38

Based on classification of goods within Australian customs tariff rates of

duty payable by the importer is determined.

In some situations, anti-dumping or countervailing measures, which

generally result in the imposition duties at additional rates, may also

apply.

For the goods that require formal entry to the customs, a custom

processing fee of $54.2 also applies.

o Antidumping39

Dumping arises when an exporter sells goods to an Australian importer

at a lower price than the goods are sold on the domestic market of the

country of export. Subsidisation occurs where government aid, by way

of subsidy or other forms of financial aid, is given to produce or export

goods. Australia is very vigilant in protecting local industry against

dumping and other unfair trading practices.

Whenever it is found that the dumping of goods is adversely affecting

any Australian business engaged in producing similar goods, the

remedial measures are taken to control it.

o Australia Import Prohibitions40

On behalf of government agencies customs often carry out the seizure of

goods entering into Australia

As prohibited goods are subject to change, importers are advised to pre

–check the goods covered by category of prohibited goods

The following is a non-comprehensive list of items that are prohibited

entry into Australia: goods bearing certain official emblems or designs

(i.e. ANZAC); goods bearing incorrect or misleading labels or markings;

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goods which infringe on trade marks, copyrights or Olympic insignia;

certain goods related to cultural heritage (i.e. goods from Papua New

Guinea); dangerous goods as defined by IATA; filament light globes,

Milk (except from New Zealand), All Meat Products,All Wood Products.

o Processes for Export Clearance41

Owner or an agent acting on behalf of owner may lodge the export

entries electronically by a registered user of Integrated Cargo System

Before the goods are lodged on a board or ship transporting them to

Australia, exporter must provide all the export details.

The Integrated Cargo System operates 24 hours a day.

Customs aims to transmit a clearance within a few minutes of receipt of

a complete and accurate electronic entry, provided there are no

regulatory impediments.

o Exemptions from export entry42

The following classes of Goods are exempt from export entry requirements:

Personal or household effects (including motor vehicles or pets) of a

passenger or crew of a ship or aircraft other than goods, which are

regarded as commercial consignments or are in commercial quantities.

A postal consignment that has a free on board (FOB) value not

exceeding $2000.00 (AUD) except for:

a) dutiable goods on which duty is unpaid;

b) excisable goods on which excise duty is unpaid;

c) goods on which a person intends to claim a drawback of customs duty or

excise duty;

d) goods which require any permit or permission.

e) Containers whether empty or loaded that belongs to a business in

Australia that is exported on a temporary basis to be re-imported.

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Goods which require an export permit are required to be entered for

export irregardless of any exemption(s) that might apply.

o Export Prohibitions43

In addition to the goods prohibited by regulation and/or law, the following

items are prohibited for export from Australia via FedEx Express

International Priority (FXIP) Service:

a) Dangerous goods as defined by International Air Transportation

Association (IATA)

b) Dry Ice

o Document Requirements44

Customs Officers may issue Restricted Goods Export Permits (RGPs)

for the exportation of firearms for non-commercial purposes that are part

of the accompanied or unaccompanied personal or household effects of

a passenger of a ship or aircraft.

RGP's are issued for privately owned non-military firearms where no

more than five firearms are exported in one consignment. RGP's are not

issued for firearms exported via the post, sent as gifts or sent overseas

for repair. Inquiries regarding the exportation of firearms qualifying

under the guidelines for the issue of RGPs should be directed to the

Customs office at the intended port of export. Where the proposed

exportation does not qualify under the guidelines, inquiries are to be

directed to the Department of Defence.

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Exporter‟s incentives & drawback:

o Advance license

Inputs required for manufacturing export products can be imported without payment of

custom duty under advance license. Since the raw materials can be imported before

exports of final product, the license issued for this purpose is called ―advance licenses‖.

An advance license is issued under duty exemption scheme to allow import of inputs,

which are physically incorporated in the export product.

o Duty Free Replenishment Certificate (DFRC)

DFRC is issued to a merchant exporter or manufacturer exporter for the duty free import

of inputs such as raw materials, components, intermediates, consumables, spare parts,

including packing materials to be used for export production.

o Duty Entitlement Passbook Scheme (DEPB)

Under the DEPB scheme, an exporter may apply for credit as a specified percentage of

fob value of exports, made in freely convertible currency. The credit shall be available

against such export products and at such rates as may be specified by the director

general of foreign trade (DGFT) by way of public notice issued in this behalf, for import

of raw materials, intermediates, components, parts, packaging materials, etc.

o Export Promotion Capital Goods Scheme (EPCG)

EPCG scheme was introduced by the EXIM policy of 1992-97 in order to enable

manufacturer exporter to import machinery and other capital goods for export

production at confessional or no customs duties at all. This facility is subject to export

obligation, i.e., the exporter is required to guarantee exports of certain minimum value,

which is in multiple of tit1e value of capital goods imported.

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Chapter – 12

Policies and Norms of India for Import

and Export

101

Policies and Norms of India for Import and

Export

India and Australia have several commonalities, which serve as a foundation

for closer cooperation and multifaceted interaction, on lines similar to what

India has developed with other Western countries. Both are strong, vibrant,

secular and multicultural democracies. They both have a free press and an

independent judicial system; the English language is an important link. Cricket,

and now the large numbers of Indian students coming to Australia for

education, are significant elements in awareness at the popular level. The relationship has grown in strength and importance since India‘s economic

reforms in the nineties and has made rapid strides in all areas - trade, energy

and mining, science & technology, information technology, education and

defense Australia is in India‘s extended neighbourhood, a point made by then

Australian Foreign Minister Stephen Smith when he made a key note address

in September 2008 at the University of Western Australia Despite the intersecting commonalities, India and Australia have only in recent

years been able to significantly enhance the relationship, reflected in the

decision taken in November 2009 during PM Rudd‘s visit to India, to take it to

the level of a strategic partnership.

Australia is India‘s eighth largest trading partner and India is Australia's fifth

largest. India‘s ranking among Australia‘s export destinations has risen from

twelfth to fourth in the period 2003-04 to 2009-10.

Trade is growing exponentially. From A$ 6.54 bn in 2003-04, trade in goods

and services between India and Australia reached A$ 21.01 billion (US$ 20.81

billion) in 2010-11. India‘s exports to Australia were A$ 2.77 billion (US$ 2.73

billion), while India‘s imports from Australia were A$ 18.93 billion (US$ 18.73

billion).

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India‘s export of goods to Australia in 2010-11 was A$ 2.08 bn (US$ 2.05 bn)

and India‘s import of goods was A$ 15.74 bn (US$ 15.58 bn). India‘s export of

services was A$ 0.69 bn (US$ 0.68 bn) and import of services was A$ 2.5 bn.

(A$ 2.47 bn). India‘s main service exports to Australia are computer and

information services and tourism. Main Australian service exports to India are

education, education-related travel and tourism.

India is Australia‘s largest export market for gold and chickpeas, second

largest market for coal and copper ores and third largest market for lead and

wool.

Four products – coal, non monetary gold, copper ores & concentrates and

petroleum – accounted for over 80 percent of India‘s imports from Australia,

with coal and gold being the dominant imports in 2010-11.

India‘s major exports to Australia in 2010-11 were pearls and gems, jewellery,

medicaments and passenger motor vehicles.

The India-Australia Joint Ministerial Commission was established in 1989 and

has held thirteen meetings to date, the last one in Canberra on 12 May 2011.

The Indian delegation for the JMC was led by Shri Anand Sharma, Minister for

Commerce & Industry. At the conclusion of the JMC, the two sides agreed to

commence negotiations for a Comprehensive Economic Cooperation

Agreement (CECA), which has now begun. India and Australia also

announced formal launching of the CEO Forum with Mr. Navin Jindal, MP as

co-chair on the Indian side and Mr. Lindsay Fox as co-chair on the Australian

side.

Dr. Craig Emerson, Trade Minister visited India in January 2011 to participate

in the Partnership Summit at Mumbai.

The signing of five Action Plans in 2008, in the areas of coal, mining, power,

petroleum & natural gas and new & renewable energy is significant,

underlining the importance of the natural resources sector in the bilateral

engagement.

Indian investment in Australia is growing. Major Indian investments in Australia

include that by India‘s Oswal Group (ammonia plant); Sterlite Industries

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(copper mines; Aditya Birla Group (copper mines); Gujarat NRE Co. (coal

mines); Asian Paints; Reliance has entered into a partnership agreement with

Uranium Exploration; IFFCO and Legend Holdings of Australia have entered

into an agreement involving investment of over A$ 100 mn by IFFCO in

Legend‘s phosphate projects with buyback arrangements; NMDC and Rio

Tinto have entered into an agreement for joint exploration in India, Australia

and other countries. TATAs have enhanced their investment in a mining joint

venture (led by Vale of Brazil) in Queensland. Tata Power and Australian

company Geodynamics have entered into an agreement involving Tata Power

taking an 11.4 per cent stake in Geodynamics for A$ 44.1 million. Petronet

LNG, New Delhi has signed an agreement with ExxonMobile in August 2009 to

source 1.5 mmtpa of LNG from the Gorgon Project, for 20 years starting from

2014. The Adani Group of India, owners of the country‘s largest private port

have acquired a coal mining prospect from Linc Resources in the Galilee

Basin in Queensland. The deal is valued at $1 billion. $500 million in cash paid

to Linc Resources and a royalty of $2 per tonne over 20 years. Adani has also

acquired rights to manage the Abbot Point Coal loading terminal for a period of

99 years at a cost of A$ 1.83 billion. Lanco Infratech made the biggest Indian

investment to date in Australia, spending almost A$ 850 million to buy Griffin

coal assets. GVK Power and Infrastructure is in the process of finalising

purchase of two thermal coalmines from Australia‘s Hancock Prospecting for

about US$ 2.4 billion. GVK Power and Infrastructure has finalised purchase of

two thermal coal mines from Australia‘s Hancock Prospecting for about US$

2.4 billion and is also investing in development of rail network from the mine to

the nearest port, which entails a total investment of U$10 bn. NMDC has

concluded the purchase of half stake in Perth based Legacy Iron Ore in

September and is conducting due diligence for the purchase of the Ridley

magnetite project of Atlas Iron Ore. Infosys has acquired Portland Group, a

sourcing and category management services firm in Australia for A$ 37 million.

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All the major Indian IT companies have a presence in Australia and are rapidly

growing. These include Infosys; Satyam Mahindra; TCS; HCL; Polaris

Software Lab Ltd; Birlasoft; NIIT; ICICI Infotech; Wipro; Mahindra-British

Telecom Ltd; i-Flex; igate; among others. Satyam Mahindra has the largest

roduct development centre outside India in Melbourne. At present, there are

no direct flights from Australia to India. Tourism is growing rapidly; 1,65,500

Australian tourists visited India in 2010 and 1,38,700 Indian tourists visited

Australia in 2010.

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Chapter – 13

Present Trade Barriers for Imports

and exports

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Present Trade Barriers for Imports and exports

There are major following kinds of trade related barriers in Australia.

Trade Policy:

For the Protection of industry for most of the past decades behind tariff protection,

Australia began to reduce its tariff including in its most protected industries such as

automobiles and textiles. The Australian economy has since reaped the rewards of tariff

reduction through lower prices of imported business inputs, increased productivity and

improved international competitiveness.

Import Controls:

There are no special requirements for applying an import licence, nor are there any

quotas on imports. However, under the Customs (prohibited Imports) Regulations,

controls take the form of a) an absolute prohibition meaning that import of these goods

is banned in any circumstances; and b) a restriction where imports are allowed only if

written authorization is obtained from the relevant authorities, or if compliance with

certain regulations is met. For some commodities, import permits are required to

facilitate clearance of goods.

Customs Valuation and Tariff

Australia adopted the Harmonized Commodity Description and Coding System (HS).

The Australian Government has planned for the progressive reduction of tariff protection

for local industry. The tariff reduction programme has already reduced 48% of

Australian tariff to zero and 35%. About 86% of tariff rates now range between zero and

5%, except certain automobile products and the textile, clothing and footwear

commodities. The average applied most-favoured-nation (MFN) rate for industrial

products is 4.6%, while the applied MFN tariff for agricultural products is less than 1%.

While there are several ways of valuing goods for customs purposes, the method most

applied is the transaction value based on the price actually paid for the imported goods.

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Customs Clearance (Permission):

Importers who want to clear their own goods should contact the Customs Information

and Support Centre for advice on Customs requirements and operating hours.

Customers should be aware of their obligations and base on their assessments of

import procedures. Penalties may be imposed for the submission of incorrect or

misleading information. Customs advises that purchasing goods over the Internet or

mail order are subject to customs controls. Restricted goods brought into the country

require an import permit. Goods may be imported duty and tax free if their value is

$1000 or less, with the exceptions of tobacco and alcoholic products. However, multiple

packages to the same addressee from a single consignor arriving at the same time are

liable for tax assessment.

Anti-dumping and Countervailing Duties

An applicant may apply for a dumping duty or a countervailing duty, when a

consignment of goods is imported or is likely to be imported and an Australian industry

producing the similar goods believes that, there exist reasonable grounds. For number

of countries including China and India Australia has initiated a number of anti-dumping

proceedings. Currently there are a number of mainland origin goods subject to

Australia's anti-dumping measures, including preserved pineapples, preserved

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Marking and Trade Descriptions:

Importers are required to ensure that goods entering Australia are correctly labeled. It is

an offence to import goods that do not bear a required trade description, or bear a false

trade description. Imported goods that require a trade description must be marked with

the name of the country in which the goods are made and a true description of the

goods in English language, with weight or quantity.

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Documentary Requirements:

Bill is required on all freight shipments. "To order" bills are permitted, Freight collect

shipments are generally acceptable. Certificate of Origin is not usually required except it

is specially requested by importers. Invoice should include name of vessel/carrier,

shipper and consignee, country of origin of the goods, marks and numbers, quantity and

weights, order date and number, selling price, method of payment etc. Other documents

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Product Standards and Consumer Protection:

Australia has maintained some standards requirements particularly quarantine and

health restrictions that have an impact on the free flow of goods. Laws provide

consumers with a ready cause of action against the manufactures or importers of

defective products. The Trade Practices Act prohibits restrictive or unfair trade

practices, misleading or deceptive conduct, false representations, deceptive offering of

gifts and prizes in connection with the sale or promotion of the goods and services.47

Custom Services:

The Australian Customs Service (ACS) for both barrier surveillance and commercial

compliance. Along with a range of obligations associated with goods procured from

overseas, an Australian importer is subject to import duty liability at a rate directly linked

with the tariff classification of the goods. These may vary depending on the nature of the

goods. Some industry sectors (such as the motor vehicle and textile clothing and

footwear) are given higher protection through tariffs than other industries. Australia

already has many tariff classifications (product categories) that are duty free (zero

rated) or, if not duty free in own right, most manufactured items imported from overseas

will only have a maximum of 5% levied on the export value or "free on board" cost

(FOB). The FOB being the basis, applying to Australia, with certain additions or

deductions, from which one compiles the Customs Value in arriving at the applicable

duty. Moreover, The goods which is imported from the New Zealand is totally duty free

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Customs will not permit the goods if it is from following criteria

1. Have a value over AUD $1,000.

2. Contain Alcohol or Tobacco of ANY quantity or value.

3. Contain Prohibited Imports listed on customs government‗s site.

TAX Provisions

o Sales Tax:

The Australian Taxation Office (ATO) whereby, generally speaking, a Sales Tax (known

as various ad valorem rates) is levied on imports into Australia. While there are

exemptions or concessions available through the various Tax Schedules or formal

rulings from the ATO, imports are taxable dealings. This tax (involving an increase in

the import cost level to arrive at a taxable value) is in addition to any Customs Duty. A

standard formula is used by the ATO to establish the tax liability, which ordinarily is

payable at time of importation. For wholesalers, a scheme operates to relieve this

burden of liability until later in the supply chain. From 1st July, 2000 Sales Tax was

transferred into Goods and Service Tax (GST) at rate of 10% on all the Goods &

Services provided. This is a value added tax levied on goods and services throughout

the supply chain, again with credits working to maintain equitability in the system. There

are very few exemptions.

o Australia Filing Requirements and Payment of Tax:

A company is usually required by the Australian Taxation Office (ATO) to have a tax

year of 12 months (except in its first year) synchronized with the end of the standard tax

year, which ends on June 30 each year. Only companies that are foreign controlled will

normally be allowed to vary their tax year dates to match that of their overseas

controlling entity. Annual tax returns for most companies are due by February 28 each

year, and companies generally pay their tax under the pay-as-you-go (PAYG) system in

either a single lump sum or in quarterly installments.

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Other Trade Related Barriers with Trade between India and

Australia

o Tariff reduction for trade in goods:

There are still major barriers to trade with India, despite recent reforms. Indian tariff

rates and trade barriers more generally remain among the highest in the world. In

addition to tariffs, India imposes various duties, such as safeguard and anti-dumping

duties, and non-tariff restrictions such as import bans and standards or certification

agreements. The Australia India Free Trade Agreement Feasibility study also identifies

this as an area that can immediately improve the trade relationship between our

countries, across a broad range of goods. Both India and Australia have committed to

trade liberalization over recent decades, but there is still more work to be done.

o Supporting the services sector:

The Indian Government in recent times has committed to the deregulation of services

sectors, including telecommunications and ICT. We also recognise the significant

changes that have occurred in the financial sector although foreign investment in

Banking and Insurance remains relatively less open. Education and Tourism as key

services sectors would benefit from greater promotion and profiling in market in order

for Australia to be considered a leading destination. Services and knowledge based

exports for both India and Australia are important to our future growth and sustainability,

any Agreement should recognise the importance the services sector.

o Recognising the role of private sector:

The role of the private sector and business community is critical to the success of any

Agreement. It must be a driving force for Australia and India. Private sector investment

and cooperation will drive the future of the Australia India relationship. There must

beongoing recognition and engagement with the sector to reap the benefits of any

future bilateral agreement. AIBC is well regarded by the Australian and Indian

Governments as having a significant role to play in facilitating the ongoing improvement

in Australia‘s trade and investment ties with India.

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o Facilitating investment:

The investment opportunities in both India and Australia are significant. To date they

have been hampered by significant bureaucratic overlaps. AIBC members have

reported cross-sectoral problems, where various ministries and bureaucracies do not

align in decision making and processing, which delays approvals and complicates the

requirements for global investors. Hurdles to investment must be addressed if we are to

build and grow the two way investment between our nations. Better understanding of

the culture and business models from Indian investors in Australia is also important.

o Resources and energy :

There is no doubt that trade and investment in resources and energy are critical to the

bilateral relationship. In many ways, Australian resources and energy exports to India

serve as a crucial motor of Indian economic growth. Whilst the exports of resources and

energy dominate Australia‘s trade with India, we have an opportunity to add to this in

expanding cooperation in mining services, expertise and technology to increase

productivity on both sides. Inherent in this relationship is continued cooperation and

investment between Australia and India in relation to low emission and renewable

energy climate change and sustainable development.

.

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Chapter – 14

Business Opportunities in Future

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Business Opportunities in Future

1. Introduction

Property and construction are the backbone of the Australian economy. It provides 14%

of nation‘s wealth and employees 7, 30,000 people. It has impact on other industries

also. If the industry uses its resources effectively than it would be more competitive.

Looking to the future is an important step in an industry. So the national initiative of

cooperative research for construction innovation Australia is taking a significant step

forward in establishing a vision for the future construction industry. Industry leaders and

members around the country have been consulted in order to refine the research for our

important industry.

2. An overview of brass industry

The brass parts industry is primarily an intermediate industry. Supplying a wide variety

of brass parts and components to almost all. The engineering industries ranging from

electrical/ electronics industry. To automobile industry. Its phenomenal growth could

also be ascribed. To the growth and diversification of other engineering related sectors.

Of the industry. The brass parts industry has a heavy concentration in, Jamnagar.

Jamnagar is famous known as ―CHOTTA KASHI‖, PARIS OF SAURASTRA.

Brass city etc. the origin of kingdom of NAWANAGAR former known as Jamnagar can

be tracked of the times of Jam Hala who crossed over the north and entered saurastra

and entered the greeted part of territory of haler. The districts head quarter is Jamnagar.

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3. Table showing growth of construction sector.

YEAR GDP

(CURRENT

PRICES) IN

CRORES.

GDP(CONSTRUCTION)IN

CRORES

%

CONTRIBUTION

OFGDP BY

CONSTRUCTION

SECTOR TO

TOTAL GDP.

2005 28,77,701 2,12,807 7.4

2006 32,82,385 2,64,173 8.0

2007 37,79,385 3,19,180 8.4

2008 43,20,892 3,76,266 8.7

2009 49,33,183 4,37,017 8.9

The Construction sector has been growing at a compounded annual growth rate

(CAGR) of about 11.1 per cent over the last eight years. The Construction sector

accounts for around9.0 per cent of GDP today. (The contribution of Construction to

GDP from 2005 to 2009 is given in Tables.)

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4. Opportunities

Knowing the market.

The building and construction industry has slowed down considerably after the

December 2006 coup. Between 2000 and 2006 there had been multi-million dollar

projects such as the Outrigger on the Reef, the Sofitel Resort and Spa, the Hilton, the

Radissons, Colonial/Motibhai Suva Central, MH City Centre, Mid-City Plaza and many

more.

Currently, private sector foreign investment remains subdued, however, the

interim Government advises it is committed to investing in capital works in the

infrastructure of roads, water and sewerage and there are plans for around a$170

million of capital works in water utilities alone by 2012. Road-related works and

government housing projects have been financed by Banks from Asian countries, which

has resulted in tethering of the bulk of delivery to these countries corporations.

Future opportunities

Growth of the Construction sector will also give a boost to many other economic

activities. It will stimulate substantial growth in the construction equipment industry as

well as a host of other down-stream industries like cement, steel, paints/chemicals,

fixture & fittings, bricks & tiles, non-ferrous metals/plastics/glass, timber and wood

based products.

The main opportunities in services are in the provision of consulting for designs,

management of building projects and construction as head contractor. The head

contractor then engages the local contractors to assist. Companies must be aware of

the long lead times from project conception to implementation.

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5. Brass parts manufactured in jamnagar

Jamnagar is associated with manufacture and export of Brass Precision Components,

Brass & M. S. Machine Screws, Brass Nuts & Bolts, Washers, Brass Molding Inserts,

Brass Building Hardware Fittings, Antique Brass Hinges, Antique Brass Handles, Tower

Bolts, Gate Hooks, and Ball Catchers etc. Operating from India, Jamnagar is committed

to provide customers with world class quality standards. The organization follows

international standards in the production of our products, ensuring global acceptance for

them. Jamnagar is a hub for Brass industry of India.

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Product Range

Jamnagar Brass Components India has been established as one of the leading

manufacturers and exporters of high quality brass hardware fittings. The products have

been appreciated both in the domestic as well as in the international market. They are

as follows:

Brass Electrical and Wiring Accessories

o Brass Cable Glands

o Brass Earthing Equipment and Accessories

o Brass Neutral Link

o Brass Line Taps

Brass Door Hinges/ Tower Bolts

Brass Hardware Fittings

o Brass Door Hinges

o Antique Brass Handles

o Tower Bolts

o Gate Hooks

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Quality

Jamnagar Brass Components in India Quality has been the utmost priority since the

very beginning. They closely monitor every section of our production process to ensure

quality that matches international standards.

6. Table showing different types of hardware.

SANITARY HARDWARE DOOR HARDWARE

FURNITURE HARDWARE PLUMBING HARDWARE

CONSTRUCTION HARDWARE

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We will now see all this four hardware in detail.

i. Sanitary hardware

Sanitary Hardware includes an extensive range of bath ware products and accessories

that are used to organize, decorate as well as to beautify the bathroom. Available in a

number of designs, styles and finishes sanitary hardware offers great value to the

sanitary representing the beauty & art.

Smart selection in bath hardware can be an all important design decision in

creating an ideal new bathroom. From Bathroom Shower and Sanitary Fittings to Towel

racks and Grab Bars, the wide line of bathroom hardware products come in a variety of

designs, style and material choices to compliment any decor.

With the heavy use, which comes with household bathrooms, the bath hardware

products are designed to withstand typical wear and tear.

Industry overview:

Sanitary hardware industry comprises establishments that are primarily engaged in the

manufacturing, supply & trade of the sanitary hardware, fittings and accessories.

With every passing year, companies are coming up with innovative products or

old products with new designs and features. With the increasing world population, the

demand for more houses and hence bathroom hardware products is also growing.

Government as well as private sector is making huge investments in the bath hardware

sector. Rapid urbanization and growth of number of residential facilities are also

deriving the demand for bath hardware products. Rising personal incomes and

increasing purchasing power parity are also contributing to the growth of this industry.

120

Types of sanitary hardware:

Some of the category of Sanitary Hardware Products includes:

o Towel Racks

o Towel Bars

o Towel Warmers

o Towel Hangers

o Robe Hooks

o Tumble Holders

o Soap Trays

o Toothbrush Holders

o Soap Holders

o Bathroom Mirrors

o Bath Seat

o Bathtubs

o Sanitary Fittings

Materials of sanitary hardware:

Some of the most popular materials used to manufacture stylish and luxurious bath

accessories. They come in a variety of possible colors and finishes to satisfy individual

tastes and preferences. These are as follows:

o Chrome,

o Brass,

o Steel.

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Finishes of sanitary hardware:

Some other finishes that manufacturers use for bath hardware products include-

o Stainless steel,

o Oil rubbed bronze,

o Satin nickel,

o Brushed satin nickel,

o Gold,

o Polished chrome,

o Darker browns with copper patina,

o Bronze and antique English‘s finishes, etc.

o Bathtubs

o Sanitary Fittings

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Growth drivers in sanitary hardware industry

Some of the key growth drivers of sanitary hardware industry are-

o Rising income of the people & businesses,

o Increasing urbanization, which is resulting in growing demand for sanitary

hardware,

o Rising investment in the construction sector both by domestic players as

well as MNCs,.

Opportunities in sanitary hardware industry:

Sanitary hardware has come a long way from its use as merely a basic functional

hardware to a decorative accessory with ability to give bathrooms a stylish update, tie a

design together. However, industry experts give significant importance to functionality

as well, as it makes the bath space work more efficiently.

Some of the factors that are influencing the current opportunity in sanitary hardware

industry are-

o Ergonomic issues,

o Open floor plans,

o Streamlined design trends,

o New technology,

o Demands of consumers for ease of use.

Though the opportunity in decorative sanitary hardware is towards a cleaner, simpler

look, its use to inculcate the personal style of individuals into their baths is also on the

rise. While many manufacturers are witnessing increasing demand towards simplicity in

decorative hardware ornate, lush look are still in opportunity. With the degree of eco-

protection awareness increasing among the people, manufactures are actually making

commendable attempts to design products, including flooring, surfacing, and

sustainable or recycled materials such as bamboo and cork.

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ii. Door hardware.

Door hardware is used for decorative hardware products which have emerged as an

inexperienced way adding a unique touch to your home. Different door parts as well as

unique door hardware not only ensures the proper functioning of door but enhances the

appearances as well as the the existing life of the door. These products come in a

variety of styles and finishes with antique and stylish finishes which is most popular

among the people who select the door hardware.

These products are generally made keeping in mind how user friendly they are. They

are several door hardware products which are manufactured keeping in mind the old

aged persons, disabled, and children.

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Types of door hardware:

o Door knobs

o Door hinges

o Door stops

o Door push plates

o Door panels

o Door knockers

o Door latches

o Door frames.

Materials of door hardware.

Door hardware products are using the materials such as brass, bronze, alluminium, iron

steel and stain less steel. Some of the methods that are used to make door hardware

casting, forging, and extrusion. They are made in such a way that satisfies the

customer‘s taste and preference. The materials which are used are as follows:

o Antique nickel

o Antique brass

o Satin chrome

o Satin brass

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Opportunities in door hardware industry.

Door hardware industry has undergone a huge transformation from function to

functional aesthetics, facilitating a variety of furnishes which can satisfy every consumer

demand. According to industry experts people look for stylish designs while buying their

door hardware. They are now more concerned about the appearance of their

doorknobs, levers, and hinges in relation to how they will match other items in their

home.

The technological advancements have taken door hardware into new level

in recent years as the facility access systems flourish in scope and complexity. For

instance, electronic door hardware enables doors to be locked and unlocked with the

use of a peripheral device - a simple electric push button, a motion sensor, or even

complicate access control equipment, such as a card reader or digital keypad.

Concern for environment is yet another social trend, which is influencing the door

hardware industry .a need has been aroused for industrial products which can support

the green initiatives through environmental conservation and preservation, Even though

production and developments are still undergoing some major changes, the trend

towards more environment friendly finishes is growing faster.

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iii. Furniture hardware.

Furniture hardware products include all components and fittings that are used to fix

designs and build furniture products. The primary functions of these products include

fixing different windows and doors, to help moving parts function smoothly, to enhance

attractiveness, comfort as well as the overall life of furniture products. Furniture

hardware comes in variety of models and types. Some of the important materials that

are used to make furniture hardware are cast iron, hand forged iron, brass, stainless

steel, and chrome. Some of the popular finishes for furniture hardware products include

– polished brass furnish polished chrome.

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Types of furniture hardware

o Hinges

o Latches

o Label holders

o Levelers

o Handles

o Casters

o Keyhole covers

o Furniture arms

Hardware a crucial component in furniture.

Furniture is used for sitting, resting, or storing materials is made from wood based

materials that do not affect the functioning directly. Furniture acquires beauty and safety

from its designs and its hardware. These attributes helps the furniture to give value and

advantage by furnishing beauty to the furniture.

Opportunity in furniture hardware industry.

Furniture has come a long way from its use as functional accessory for a decorative

hardware that gives a beautiful and unique look to the furniture products. Furniture

hardware products come in an extensive range of designs, styles and finishes to satisfy

the consumer demand. People are more concerned about the appearance of hardware

products.

In recent years the furniture hardware industry has extended its offerings to help

builders and facility. Interior and exterior furniture sets include various types of hardware

products that are designed to ensure durability and value which facilitate the style.

128

The volume of furniture hardware sold depends largely on the sale of furniture products

and the rise in personal income of individual and business. Imports of hardware

products are emerging as a major competive factor.

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iv. Building Hardware

The Brass Building Hardware Products are widely demanded in the market due to

the unmatched quality and performance in respective applications. The use of

optimum quality materials in the manufacturing of the Brass Building Hardware

ensures high durability, tensile strength and resistivity to adverse conditions.

Brass Hinges

The brass hinges\ hinge are known for their spectacular designs and durability ,

these are known for their flawless finish and thus , are widely used where doors

need to open up to 180 degree in order to clear the wall.

Brass Tower Bolt

These brass tower bolts are simple but elegant looking. Made of the best quality

brass metal, these stylish bolts are made to last for lifetime. The brass tower bolts

are beautifully designed and are perfect for office as well as home use.

Iron and Brass Aldrops

These aldrops are available in various ranges and specifications.moreover steel

aldrops are perfect in design and finish for window and door bolting purpose.

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Brass Khooti

These are durable, corrosion resistant and made up of best quality raw material

Baby Latches

These are Top Brass bay latch that comes with a wide section and with a Latch with

normal section.

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Gate Hooks

These are highly appreciated for its high durability and corrosion resistant features. It

is primarily used for providing firm support to windows and fabricated in accordance

with required standards.

Iron and Brass Aldrops

These aldrops are available in various ranges and specifications. Moreover, steel

aldrops are perfect in design and finish for window and door bolting purpose.

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Tower bolt

These are designed to perfection and have excellent finish as well as edges.

Brass Anchor Fitting Components

The imperial brass components are involved on the manufacture and supply of high-

quality brass anchor fittings. Products come from composed from high-end brass.

Product has a feature in its internal tapering module that makes it possible for the

anchor to expand and initiate the auto lock the suspension rod in an upright position.

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Opportunities in building hardware.

Brass building hardware ensures higher durability. People prefer these products

because they come from high-end brass. There is greater opportunity in building

hardware in future because of high end brass.

v. Plumbing Hardware

Plumbing hardware industry is an integral component of the economy of a country,

which is closely linked to the construction industry. The industry as a whole constitutes

one of the most largest and profitable employment in construction sector.48

Plumbing hardware products are fundamental to determine the water efficiency,

energy, sustainable site, fire protection, and pollution systems of commercial and

residential projects. The scope of the growth and development is expected to broaden

over the next decade as plumbing hardware plays a progressively important in the

environment conservation and green building design.49

Plumbing hardware products are important tools in regard to all plumbing

operations, such as plumbing fixtures for bathroom sinks, bathtubs, toilets, showers and

so on. When people require plumbing hardware, whether it is a small pipe, or a hinge or

whatever it may be, they are required to visit a specialty plumbing hardware store for all

of your plumbing hardware requirements.

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134

Type

Some of the important categories of plumbing hardware are,50

Plumbing pipes Pipe fittings Plumbing tubes

Tube fittings Hose fittings Valves

Copper in Plumbing Hardware:

Over the years, copper based plumbing hardware products have continually proved

themselves the most superior and reliable for all sort of water delivery and drainage

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135

systems. The metal is man‘s first and still most indestructible non-precious metal that is

used in a variety of plumbing applications51

With the fact copper resists corrosive elements better than any other engineered metal;

it long ago set the standards for plumbing applications. It was the natural outgrowth of

an economic system, which stressed economies of scale in production and sought

substitute materials, which would do the same work for less money in some cases; they

have found that some of the old, basic materials are still the best, still the most

economical, such as copper, as they give long trouble free performance. 52

In plumbing hardware industry, sales are driven by the construction and hardware

retailing industries. The profitability of companies depends largely on merchandising

and effective inventory management. The industry is high competitive, where small

businesses can compete with their larger counterparts by offering specialty products,

offering all the parts keeping specific customer requirements in mind, or delivering

superior service.53

Opportunities in plumbing industry:

The incorporation of information technology are into the different facets of building

design and construction industry and it is revolutionizing the plumbing hardware

industry. Sustainable and environment-friendly designs are a major focus of the

plumbing hardware industry. Demand is growing for more sophisticated and multi-

functional products. The current pace of innovation in the use of material is unparalleled

and more materials is being produced in a short span of time.

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136

Forecast:

According to experts, ―smart‖ home and bath products will be the hot trend in next

decade. In the ideal environment friendly home of tomorrow, toilets will flush water

recycled from the washing-machine or dish-washer. Certification of ―green plumbers‖

will be standard practice by the year 2015.54

Conclusion

we have seen all the four hardware in detail and there opportunity and by this

information we can conclude that there would be great demand of this type of hardware

in later years as people would like to have this type of hardware in future so we can say

that it would be greater opportunity for us to expand brass business in Australia. We can

analyze that construction sector is in growing phase and there is great opportunity if

India expands the brass construction business in Australia. There has been increase in

GDP of construction sector by 8%in 2009. Also there are four hardware shown in this

report which is highly popular among the people and also the demands of that hardware

are also increasing day by day.

There are almost four types of hardware they are sanitary, door, furniture, brass

and plumbing. Among them furniture hardware would have greater opportunity in future

as people are more concerned with their interior as well as exterior decoration of their

home.

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137

Chapter – 15

Present trends of business between

India and Australia during last 3-5 years

138

Present trends of business between India and

Australia during last 3-5 years

Recent years have seen remarkable growth in the trading relationship between India

and Australia, fuelled by the many complementarities between the two economies. Two-

way trade has grown in value from $3.3 billion in 2000 to $22.2 billion in 2010 — a rise

of 23.4 per cent per annum since 2000.

India is the world's largest democracy and is a market of 1.2 billion people. Its

youthful population, diversified economy and growth trajectory present significant

opportunity for Australian business, especially in the agriculture, energy, manufacturing

and services

Australian exports to India: A$16,412 million

Australian imports from India: A$1,967 million

India's principal export destinations: United Arab Emirates, USA, Chin

India's principal import sources: China, United Arab Emirates, USA

139

Top Export Products

Name of

Commodity

Apr 2005 -

Feb 2006

Apr 2006

- Feb

2007

Export

Value

of

Goods

Export

Value

of Goods

%Growth %Grow

th

%Shar

e

%Shar

e

Value (INR

in Crores)

Value

(US$ in

Millions)

Value

(INR in

Crores)

Value (US$

in Millions)

Value

(INR in

Crores)

Value

(US$

in

Million

s)

Value

(INR in

Crores

)

Value

(US$

in

Millio

ns)

INDIA EXPORT OF

MANUFACTURES

OF METALS

16,674.57 3,767.8

7

20,156.0

5

4,439.47 20.88 17.82 3.95 3.95

INDIA EXPORT OF

NON-FERROUS

METALS

4,923.14 1,112.4

6

14,323.1

9

3,154.76 190.94 183.58 2.81 2.81

INDIA EXPORT OF

FERRO ALLOYS

1,008.15 227.81 1,417.38 312.19 40.59 37.04 0.28 0.28

An FTA between India and Australia would be expected to address tariff and non-tariff

barriers. It would go beyond each country‘s commitments in the World Trade Organization

(WTO) and cover substantially all trade in goods.

140

Top Import Products

Name of

Commodity

Apr 2005 - Feb

2006

Apr 2006 - Feb

2007

Import Values

of Goods

Import Values

of Goods

%Grow

th

%Grow

th

%Sha

re

%Share

Values

(INR in

Crores)

Values

(US$ in

Million

s)

Values

(INR in

Crores)

Values

(US$ in

Million

s)

Values

(INR in

Crores)

Values

(US$ in

Million

s)

Value

s

(INR

in

Crore

s)

Values

(US$ in

Million

s)

India Import Of

- METALIFERS

ORES &

METAL

SCRAP

15,086.

80

3,409.0

9

34,051.

38

7,499.9

9

125.70 120.00 4.62 4.62

India Import Of

- NON-

FERROUS

METALS

7,287.5

5

1,646.7

3

10,830.

59

2,385.4

9

48.62 44.86 1.47 1.47

India Import Of

-

MANUFACTU

RES OF

METALS

4,816.9

1

1,088.4

5

6,431.9

1

1,416.6

6

33.53 30.15 0.87 0.87

141

Recent years have seen remarkable growth in the trading relationship between India

and Australia, fuelled by the many complementarities between the two economies.

Over the past five years, bilateral trade in goods and services has increased by 24 per

cent annually to US$16 billion in 2008-09. Two-way investment is also significant,

estimated at over US$1.5 billion including portfolio investment in 2008.

Investment

The higher GDP growth in India has been accompanied by an increase in the

investment rate and a somewhat larger increase in the savings rate. The rate of

domestic investment increased to 36 per cent of GDP in 2007. At the same time, the

rate of gross domestic savings increased from 21 per cent of GDP in the pre-reform

period to around 36 per cent.

Australian economy

Australia has a highly open, market-based and capital-intensive economy which is

currently enjoying a prolonged economic expansion, presently in its 18th year. It grew

by an average of 3.5 per cent from the early 1990s to 2009, but the global financial

crisis has had an impacted on rates of economic growth in Australia from late 2008 to

2009

142

Trends In India's Foreign Trade

India‘s merchandise exports reached a level US $ 126.3 billion during the year 2006-07

registering a growth of 22.5 per cent over the previous year. The Indian exports have

witnessed a sustained high growth rate of more than 20 per cent during the Tenth Plan

period. The performance has been very encouraging during the last three years wherein

exports grew at an average annual rate of 25.6 per cent in dollar terms. The growth of

exports, so far, has been in line with the targets set out in the Foreign Trade Policy

2004-09.

143

Chapter – 16

Potential for import export in India /

Gujarat Market

144

Potential for import export in India / Gujarat

Market

Demand of the products

According to the CIA World Factbook, Australia exports coal, gold, meat, wool, alumina,

iron ore, wheat, machinery and transport equipment and imports machinery and

transport equipment, computers and office machines, telecommunication equipment

and parts; crude oil and petroleum products.

India‘s merchandise exports to Australia are diverse but volumes are not very

large. India traditionally exports textiles and clothing to Australia. The main items are

pearls, precious, semi-precious stones, made-up articles -textile materials, floor

coverings, jewellery, textile yarn, engineering goods/ manufactures, manufactures of

base metal, footwear, travel goods & handbags, women's or girls', clothing, men‘s or

boys' clothing, and other commodities including chemicals and related products,

plantation & agricultural products. India‘s exports increased to A$ 2 billion in 2009.

This was 11 % higher than the corresponding figure of A$ 1.8 billion in 2008.

Generating sets & motors, pearls & gems, medicaments, jewellery,textile manufactures

and topped the export basket in 2009.

Potential of the products for export

India is having a huge potential for exporting goods to Australia. Specially talking about

the Jamnagar brass parts industry, the study says that Jamnagar fulfils only 0.01% of

the total demand of the world for brass building hardware products.

Considering this scenario, Jamnagar is having huge opportunity & potential market for

exporting brass products. And the above data also shows that the percentage of

construction industry in the GDP of the country is around 7% which is a huge

Percentage. It is also know to us that in Australia the construction business is not

concentrated to few players so we can excel in Australia.

145

Conclusion

After studying the demographic and economic environment of Australia and other

factors like position of different economic sectors, business and trade by Australia in

world market and with India and Gujarat, overview of building brass and hardware

industry of Australia, present position of trade and business with India, Australian and

Indian policies and norms for import and export and current and potential business

opportunities prevailing in the industry, it can be concluded that there exist promising

business opportunities in Australia for Indian and Gujarati entrepreneurs.

we have studied all the four hardware sectors in detail and their potential

opportunities and by this information we are concluding that there would be great

demand of this type of hardware in later years as people would like to have this type of

hardware in future so we can say that it would be greater opportunity for India and

Gujarat to expand brass business in Australia. We analyzed that construction sector is

in growing phase and there is great opportunity if India expands the brass construction

business in Australia. There has been increase in GDP of construction sector by 8%in

2009.