IRC – INDO ROMANIAN COUNCIL – For a holistic development of India’s manufacturing & export sectors, we need to develop an ecosystem that provides for easier, faster and reliable access to Indian Goods abroad. To achieve this goal, IRC–Indo Romanian Council, Center Of External Relations is planning to launch a project – Indian Manufacturers as Exporters (IME).The project aims at achieving this goal with a practical approach backed by experienced and dedicated manpower in the line of International Trade. IME will be a bold effort towards perpetual presence of Indian products in Europe with base ports being, Bucharest in Romania and Berlin in Germany. Indo Romanian Council (IRC) will work towards creating a BRAND NAME and GOODWILL for Indian products in Europe through 2 other firms Indian Bazaars Abroad (IBA) in India and s.c. EVA EXPO SRL (EES)in Romania. IBA will look into commercial aspects of collecting and exporting Indian products to Europe and EES will look into the commercial aspects of imports, custom clearances, display, retail sale, online sales, wholesale and participation in trade fairs in Europe. TOTAL TRAVEL TIME BY CAR FROM BUCHAREST TO BERLIN is 20 HOURS by road, DISTANCE 1750kms – passing through HUNGARY, AUSTRIA & CZECH REPUBLIC.
Setting up of the project INDIAN MANUFACTURERS AS EXPORTERS (IME) in Bucharest/Romania and Berlin / Germany is a bold step in the making and is in line with the views expressed by our Vice President, during his recent visit to Romania (18-20TH Sept. 2018). The concept can be considered to be in continuation to the project - India Trade Services (ITS) undertaken up by FIEO in 2008-09 and is envisaged keeping in mind the Working Paper No. 1/2017-DEA by the Ministry Of Finance, Dept. Of Economic Affairs titled –REVIVING AND ACCELERATING INDIA’S EXPORTS:POLICY ISSUES & SUGGESTIONS, BY Dr. H.A.C. Prasad. The idea behind this project will be to make exports from India as simple, as sale across the counter and to encourage individual artisans, skilled labour, entrepreneurs, Home & Cottage Industries and micro &small Enterprises to be export compliant and – TO DO DIRECT EXPORTS. Exports to be more demand based rather than supply based. Products will be - Handicrafts (marble; metal and wood); furniture; kitchen utensils; leather items; fashion jewellery; fabrics and garments. In doing so, this will also make Indian goods more competitive in the international markets and provide livelihood to more and more Indian families by diversifying the export benefits. IRC will register itself with all the export promotion Councils and Chambers in all over Europe and will collaborate with s.c.EVA EXPO SRL which is a company incorporated in Romania since 2009 & was incorporated under the pilot project of Federation of Indian Export Organization (FIEO) in 2008.EVA EXPO SRL is promoted in Romania as UNIVERSE OF INDIA. It has been widely covered in the Romanian newspapers. The sole Administrator of this company is the promoter and Director General of IRC – Indo Romanian Council, Mr. Akshey Gupta, who has vast experience of over 30 years in International Trade and is also a Non Resident Tax Payee of Australia. In its endeavor, IRC will start initially with a shop & a warehouse in Bucharest Romania. There are plans to also buy a shop in Berlin / Germany, in due course. There will be a regular movement of goods from Bucharest/ Romania to Berlin/ Germany. In transit there will be stop-over at Budapest-Hungary; Vienna-Austria & Prague-Czech Republic. The company will have franchise agreements with retail chain stores in France; Italy; U.K. & Spain and will actively participate in all major trade fairs in Europe. It will have its own website to promote online sales and will be doing direct retail sales and wholesale from its base ports in Berlin-Germany and Bucharest-Romania. All export orders will be transferred to the actual manufacturer in India for direct supply to the foreign buyer, under the Council’s supervision and overall responsibility. The Council will also encourage Indians to open their own companies & to participate in Trade Fairs, in Europe. Genuine Indian manufacturers will be assisted with Visa formalities, storage facilities, and short stay accommodation facilities in Europe if they so require, to the maximum extent possible. To meet these objectives, in the initial stage the company intends to purchase goods worth Rs. 1 Crore from 400 Indian manufacturers for FOB values ranging from Rs.5,000/- to Rs.2,00,000/-, to be exported to Romania for display, retail and wholesale & for procuring export orders from Europe. The order values and the list of Indian suppliers will keep increasing in accordance with analysis report of the sales in Europe of these initial purchases. For the initial capital and working requirements the Council is applying for funds from Ministry of Commerce under the Market Access Initiative Scheme under Sl. no. 2 (Marketing, Branding, Publicity campaigning and Cataloguing) of showrooms, warehouses and display in international stores or local distribution networks, subject to a ceiling of Rs.5 crore per project per annum for the first year. On the 5th and final year of operation, there will be 50:50 contributions from public and private sector in the project after which the project shall be self-sustaining to promote Indian exports in a big way on the international stage.
This project aims to devise an effective strategy, so that Indian manufacturers are encouraged to export directly and there is an organisation representing them abroad :
| To initiate and energise the project INDIAN MANUFACTURERS AS EXPORTERS.(IME) |
To register a company in Bucharest to look into the working aspects in Europe. |
| 1. To get manufacturers - micro, small and medium enterprises and also individuals, entrepreneurs and cottage & Home industries to become members and join hands in the project. 2. Register the council (IRC) with all Commercial establishment and Councils in Europe. 3. The Council (IRC) will work as a bridge for Indian and European businessman to be able crossover in a more relaxed, confident and a better understood and appreciated environment. Will also help in coordination between all members and associates for smooth running of the project. 4. Making visa availability easy for genuine business people. 5. The Council will effectively & aggressively advertise Indian products and ensure quality products being imported from India into Europe and that there is 100% compliance of the terms of contract in any business deal. 6. The council will assist and encourage Indian and European businessmen to open up their business offices in each other’s country. 7. The council will also assist its members to individually participate in foreign trade fairs by ensuring hassle free – custom clearances, storage & sale of unsold goods after the trade fairs. |
To have 2 shops in Romania, one is Bucharest and another in Constanta (the beach city of Romania). 2. To have a warehouse in Bucharest. 3. Regular movement of goods from Bucharest to Berlin and vice versa. 4. To have franchise agreements with various major retail chain of Europe. 5. To participate & organise trade fairs in Europe with Indian product. 6. Initially in the 1st year, this Commercial European arm of the project will import Rs. 1 Cr. worth of goods directly from Indian artisans and small manufacturers, which will be exported and put on display, retail sale, and online sale and for booking future export orders. The sales shall be repatriated to India as export sale proceeds in foreign exchange. This money shall be used for new purchases & this cycle shall be an on-going process of the project. This will encourage small manufacturers to consider exports as a new market for their products. 7. The Indian goods so imported will be widely advertised and also be made available for online purchase to the European community through it online website. 8. After, will consider opening another such setup in Berlin/Germany with regular movement of goods carrier from Bucharest to Berlin and covering other Major European cities. |
As highlighted above, the IME will have Indian manufacturers as participants will
engage EVA Expo for the display, sale and promotion of Indian goods in Europe.
The main objective of the project will be achieved in accordance with the following
set plan:-
The project will act as an impetus to the Indian skilled and talented self-employed
sector, entrepreneurs, Cottage & Home Industries and also small and medium
enterprises. It will boost manufacturing sector and exports to Europe, Balkan States
and Nordic countries by creating – new foreign markets for Indian products as well
as new foreign buyers. It will help revive small and medium size manufacturing
units, provide back up support to them, open up new foreign markets for Indian
products with permanent display & sale centers in Europe and encourage effective
participation in trade fairs and exhibitions by Indian manufacturers. It will also
provide the required guidance, regarding prevailing trends and colors of the Western
markets to the Indian manufacturers, from time to time.
Aims & approach.
The primary aims of this project are to ensure :-
1) At least 25% of the MSMEs and individual artisans, to be actively involved in direct exports, especially manufacturing units.
2) To make exports for Indian manufacturers as simple and easy, as sale across the
counter with all paper work and export norms being looked after by the project
management, if so required.
3) To make Indian exports more demand based rather than supply based.
4) Encourage European whole sale buyers, to import directly from India.
5) Create a brand value for Indian products.
The project will represent, display and promote sale of Indian manufactured goods
in Europe, with special focus on Romania; Hungary; Austria; Czech Republic &
Germany with franchise stores in Italy, France, Spain and other Nordic countries.
Besides consumer goods, project aims to encourage export of capital goods from
India.
WE PROPOSE TO ACHIEVE THESE AIMS BY:-
a) Opening a showroom and warehouse in Bucharest (Romania) and register
participants – Indian individuals, entrepreneurs, cottage and home industry;
Micro and small enterprises.
b) IME will engage with EVA EXPO SRL, an Indian Company set up in Romania in
2009. This company was incorporated under the umbrella of Federation of Indian
Export Organisations (FIEO), when FIEO had undertaken such a project in 2008,
to create markets for Indian products in Eastern Europe. EVA Expo will take up
the responsibility for the incorporation, promotion, display and sale of the Indian
products across Europe and also participate & organize various exhibitions in
Europe with display and sale of Indian goods.
c) The Indian arm of the project – INDIAN BAZAARS ABROAD with registered
address as 4Q, 4th floor; DCM Building, 16 Barakhamba Road, New Delhi -
110001 will be directly interacting & communicating with the units and
individual artisans who will be interested in producing/sending the goods for
exports to this set-up in Romania and will also plan the logistics & packing
requirements of goods from India to Europe.
d) The ideology behind these plans is to represent ‘Brand India’ in Europe. This
idea will exponentially increase the accessibility of Indian made products all
across Europe, Nordic countries and the Balkan states, and also encourage
investments in India by European businessmen. It will encourage and promote
to create new importers for Indian products, in these countries. The project will
be a permanent, self sustaining setup in Europe, as an Indian Trade
Representative Office.