Sanjeevani Private Ltd

8/4/2019 Sanjeevani Private Ltd.

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Sanjeevani

Private Ltd.

About the company

Our company Sanjeevani Private Ltd deals with ayurvedic

medicines. We are merchant exporters of Ayurvedic

Medicines i.e. we buy the medicines from the

manufacturer and then sell them to foreign buyers.

Ayurvedic medicines are a gift of India’s rich heritage.

Ayurvedic medicine is an ancient system of health care

that is native to the Indian subcontinent. It is presently in

daily use by millions of people in India, Nepal, and Sri

Lanka. The word "Ayurveda" is formed by words ā yus

meaning "life", "life principle", or "long life" and the word

veda, which refers to a system of "knowledge". Thus

"Ayurveda" roughly translates as the "knowledge of life",

or "knowledge of a long life”. Ayurvedic Medicines have no

side effects.

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

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

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

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



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Our Supplier

Our supplier for the product is Dollar Company Private Ltd.

Dollar Company Pvt. Ltd. (an ISO 9001-2000 Certified

Company) started in 1943 and has been manufacturing

quality medicines for the past six decades. Established by

Mr. T. Durairajan, it is now being run by Mr. D.

Parthasarathy, his son, the Managing Director of the

Company. Mr. Parthasarathy is a Graduate in the field of

Pharmacy and has been at the helm of affairs of the

company, both in manufacturing and marketing for the

past three decades. Both allopathic and ayurvedic

products are manufactured at the factory in Tondiarpet,

Chennai.

Being satisfied with the growing domestic market for all of

its products, Company now wants to enter export market.

To enter the foreign market they have tied up with us i.e.

Sanjeevani Private Ltd. We have a joint venture of three

years.



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Our Products

1. Acidity and Indigestion (For Children)

Dosage: Syrup

Uses: Gives instant relief to infants and babies crying

due to gripe. Also helps to relieve stomach pain

caused by acidity and indigestion.

2. Pain Relief

Dosage: Tablet

Uses: Pain, Sprain, Rheumatic Pain & Swelling

3. Asthma Relief

Dosage: Syrup

Uses: In allergic cough, bronchitis, Dry irritating

cough & cough with expectoration.

4. Stress Relief

Dosage: Capsule

Uses: Gives relief from stress and losses your

muscles



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5. Liver Disorder

Dosage: Capsules

Uses: Good for Jaundice, Hepatitis, Liver Dysfunction



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Market for the product

In today’s dynamic world, the entire globe is considered as

one market. For our product, we are going to divide the

entire market into numerous segments where there is an

awareness of Indian culture, Ayurveda in particular. These

segments would include countries with the large number

of Indian population.

The segments are:-

• USA

• UK

• Australia

• Indian sub-continent (Nepal & Sri Lanka)

• Other European countries

These segments are selected after careful consideration of

various factors like political restriction, scope of exporter's

selected product, demand stability, preferential treatment

to products from developing countries, market penetrationby competitive countries and products, distance of

potential market, transport problems, language problems,

tariff and non-tariff barriers, distribution infrastructure,

size of demand in the market, expected life span of

market and product requirements, sales and distribution

channels.



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For this purpose we have taken help from

Pharmexil.



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Selecting prospective buyers

We will select agent/s in the prospective countries.

This is the list of prospective agents:-

1. AYURMEDICA LIMITED - United Kingdom ( Vipin Patel )

2. INDIA NAGAR - Netherlands ( Sadhana Dubey )

3. ARYAN TRADING COMPANY - United Kingdom ( Nitin Kanani

)

4. BLUESKY HERBAL - United States ( Krishna Prasad )

5. KMK IMPORTS - United States ( K.M.Kendall )

6. CULT SMOKING - Italy ( Sandro Giatti )

7. MOORJANI GROUP COMPAGNIE - Guadeloupe ( Hritesh K.

Moorjani)



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Formalities&Procedures



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Bank Formalities

An exporter has to select a bank which undertakes all

banking formalities connected with negotiations of

documents and realization of export procedures. A current

account is operated for export business. The bank must be

authorized to deal in foreign exchange.

Duly signed application form should be supported by the

following documents to open a current account in any

commercial bank:-

• Copy of registration of companies

• Signature of trader, secretary, chairman

• 2 Passport size of each individual

• Signature of a person who has account in any bank



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Registering with Regional Licensing

The Customs Authorities will not allow you to import or

export goods into or from India unless you hold a valid IEC

number. For obtaining IEC number you should apply to

Regional Licensing Authority the duly signed application

form should be supported by the following documents:

• Letter head from the bank with stamp and

signature to the Director General of Foreign Trade

(DGFT).

• Bank Receipt (in duplicates)/Demand Draft for

payment of the fee of Rs. 1,200/- in the name of

DGFT

• Certificate from the Banker of the applicant firm.

•

Two copies of Passport size photographs of theapplicant duly attested by the banker to the

applicants.

• A copy of Permanent Account Number issued by

Income Tax Authorities. If PAN has not been

allotted, a copy of application of PAN submitted to

Income Tax Authorities.• A copy of export profile

• Copy of the registrar of companies certificate

The Regional Licensing Authority concerned will on merits

grant an IEC number to the applicant. The number should

normally be given within 3 days provided the application is

complete in all respects and is accompanied by the



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prescribed documents.



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Register With Export Promotional

Council

In order to enable you to obtain benefits/concession under

the export-import policy, you are required to register

yourself with an appropriate export promotion agency by

obtaining registration-cum- membership certificate.

As we are dealing with Ayurvedic medicines we have to

register ourselves with Pharmaceutical Export Promotional

Council (PHARMEXIL). Pharmaceuticals Export Promotion

Council (PHARMEXCIL) has been set up on 12.5.2004. With

its notification No.61 dt. 16.3.2005, Director General of

Foreign Trade made Pharmexil the sole agency to issue

RCMCs to all Pharma exporters. The duly signed

application form should be supported by the following

documents:

• An application for registration should be

accompanied by a self certified copy of the Importer-

Exporter code number issued by the Regional

Licensing Authority concerned

• Bank certificate in support of the applicant's financial

soundness.

• As we are registering as a manufacturer exporter, we

gave the copy of registration with registrar of

companies



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In Pharmexil we have used MAI scheme. Market

Access Initiatives (MAI) Scheme is an Export Promotion

Scheme envisaged to act as a catalyst to promote India’s

export on a sustained basis. The scheme is formulated on

focus product-focus country approach to evolve specific

market and specific product through market

studies/survey.



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Export Credit Insurance

Export credit insurance protects you from the

consequences of the payment risks, both political and

commercial. It enables you to expand your overseas

business without fear of loss. Further, it creates a

favorable climate for you under which you can hope to get

timely and liberal credit facilities from the banks at home.

You can obtain Export Credit Insurance from the Export

Credit and Guarantee Corporation of India Limited. We

have used the standard policy to protect against the risk

of not receiving payment while trading with overseas

buyers on short-term credit. We have taken commercial

risks policy.

Benefits of Commercial Risks policy

• Insolvency of the Buyer.

• Failure of the buyer to make the payment due within

a specified period normally 4 months from the due

date.• Buyer’s failure to accept the goods, subject to certain

conditions.



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Acquire License

As we export medicines we need to be aware of specific

licensing requirements. We deal with medicines within the

European Union so we must be licensed in same way as

for sales within the UK. Export license is required for

following things also:

Export of Canalized Items: An application for export of

canalized items mentioned in ITC (HS) Classifications of

Export and Import items may be made to the Director

General of Foreign Trade.

Trade Fairs/Exhibitions: Any Indian wishing to organize

any Trade Fair/Exhibition in India or abroad, would be

required to obtain a certificate from an officer of the rank

not below that of an Under Secretary to the Government

of India, in the Ministry of Commerce, or an Officer of India

Trade Promotion Organization, duly authorized by its

chairman in this behalf, to the effect that such exhibition,

fair or as the case may be, similar show or display, has

been approved or sponsored by the Government of India

in the Ministry of Commerce or the India Trade Promotion

Organization and the same is being held in public interest.

Gifts/Spares/Replacement Goods: For export of gifts,

indigenous/imported spares and replacement goods in

excess of the prescribed ceiling/period, an application may

be made to the Director General of Foreign Trade.



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Export through Courier Service: Import/Exports

through a registered courier service are permitted as per

the Notification issued by the Department of Revenue.

However, importability/exportability of such items shall be

regulated in accordance with the policy.



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Export Procedures is divided into 3

stages:-

1. Pre Shipment

2. Shipment

3. Post Shipment



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Pre Shipment Stage

• Receipt of Confirmed Order

• Obtaining a Letter of Credit

• Obtaining Export License

• Obtaining Pre Shipment Finance

• Procurement of goods

• Packaging and marking

• Pre Shipment Inspection

• Central Excise Clearance

• ECGC Cover



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Appointing Agents

We have appointed N. H. DESAI & CO. It was established

in 1960. It is one of the select few to be licensed as a

Custom House Agents, is today one of the leading service

providers for Import and Export trade by Sea and Air. The

Company offers its clients a single point total logistics

solutions and tailor made packages with a special focus on

services which includes packing, door to door movement,

warehousing, Insurance, refunds, claims, liaisons with

D.G.F.T. etc.

N.H.DESAI & Co.

Address:

29, Anand Bhavan, 3rd Floor,

290, Shahid Bhagatsingh Road,

Mumbai-400 001, India.

Tel: +91 22 2262 1527/2265 0649

+91 22 2269 4023

Fax: +91 22 2262 5428



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Shipment Stage

• Reservation of space in the ship

• Arrangement of Internal Transport from Warehouse

• Preparation & Processing of Shipment Documents



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Post Shipment Stage

• Submission of Documents by the agent to the

exporter

• Shipment advice to importer

• Preparation of Documents to the Bank for

Negotiations

• Dispatch of Documents

• Documentary bill of exchange

• Letter of Indemnity

•

Realizations of Export Proceeds

• Processing of GR Form



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Finance

Financial assistance to the exporters is generally provided

by Commercial Banks, before shipment as well as after

shipment of the said goods. The assistance provided

before shipment of goods is known as pre-shipment

finance and that provided after the shipment of goods is

known as post-shipment finance

Pre-shipment finance

• An application for pre-shipment advance should be

made along with the following documents:

• export order/contract or L/C etc. in original

• Exporter or Export/Trading/Star Trading House

stating that they have not/will p 7 3 not avail

themselves of packing credit facility against the

same transaction for the same purpose till the

original packing credit is liquidated.

• Copy of Exporter's Code Number

• Appropriate policy/guarantee of the ECGC.

Post-shipment finance

Post-shipment finance is the finance provided against

shipping documents. It is also provided against duty

drawback claims. It is provided in the following forms:

• Purchase of Export Documents drawn under Export

Order: Purchase or discount facilities in respect of



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export bills drawn under confirmed export

order are generally granted to the customers who are

enjoying Bill Purchase/Discounting limits from the

Bank. As in case of purchase or discounting of export

documents drawn under export order, the security

offered under L/C by way of substitution of credit-

worthiness of the buyer by the issuing bank is not

available, the bank financing is totally dependent

upon the credit worthiness of the buyer, i.e. the

importer, as well as that of the exporter or the

beneficiary.

• Advances against Export Bills Sent on Collection: It

may sometimes be possible to avail advance against

export bills sent on collection. In such cases the

export bills are sent by the bank on collection basis

as against their purchase/discounting by the bank.

Advance against such bills is granted by way of a

'separate loan' usually termed as 'post-shipment

loan'. This facility is, in fact, another form of post-

shipment advance and is sanctioned by the bank on

the same terms and conditions as applicable to the

facility of Negotiation/Purchase/Discount of export

bills. A margin of 10 to 25% is, however, stipulated in

such cases

• Advance against Goods Sent on Consignment Basis:

When the goods are exported on consignment basis

at the risk of the exporter for sale and eventual

remittance of sale proceeds to him by the



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agent/consignee, bank may finance against

such transaction subject to the customer enjoying

specific limit to that effect. However, the bank should

ensure while forwarding shipping documents to its

overseas branch/correspondent to instruct the latter

to deliver the document only against Trust

Receipt/Undertaking to deliver the sale proceeds by

specified date, which should be within the prescribed

date even if according to the practice in certain

trades a bill for part of the estimated value is drawn

in advance against the exports.

• Advance against Undrawn Balance: In certain lines of

export it is the trade practice that bills are not to be

drawn for the full invoice value of the goods but to

leave small part undrawn for payment after

adjustment due to difference in rates, weight, quality

etc. to be ascertained after approval and inspection

of the goods. Banks do finance against the undrawn

balance if undrawn balance is in conformity with the

normal level of balance left undrawn in the particular

line of export subject to a maximum of 10% of the

value of export and an undertaking is obtained from

the exporter that he will, within 6 months from due

date of payment or the date of shipment of the

goods, whichever is earlier surrender balance

proceeds of the shipment

• Advance against Retention Money: Banks also grant

advances against retention money, which is payable



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within one year from the date of shipment, at

a concessional rate of interest up to 90 days. If such

advances extend beyond one year, they are treated

as deferred payment advances which are also eligible

for concessional rate of interest.

• Negotiation of Export documents Drawn under L/C



Foreign Exchange Rates

As per 21/02/2008:-

United Kingdom

1 British Pound = 78.23539 Indian Rupee

1 Indian Rupee (INR) = 0.01278 British Pound (GBP)

Netherlands

1 Euro = 59.11755 Indian Rupee

1 Indian Rupee (INR) = 0.01692 Euro (EUR)

United States

1 U.S. Dollar = 40.105 Indian Rupee

Italy



Guadeloupe

