REPORT OF TRADE DELEGATION TO KIEV (UKRAINE) & MOSCOW (RUSSIA) FROM 10TH TO 20TH SEPT., 2006 The Wool & Woollens Export Promotion Council organized the visit of Trade Delegation consisting of leading manufacturers & exporters of wool & wool blended products i.e. shawls, stoles, felts, made-ups and woollen/acrylic knitwears to Kiev & Moscow from 10th to 20th Sept., 2006 under Focus CIS Programme of the Ministry of Commerce & Industry, Govt. of India. The visit of the delegation was also a part of overall strategy formulated by the Council to diversify India’s presence in various markets. The main objective of the visit was to explore the possibilities for further strengthening the trade in textiles and to renew existing contacts with the CIS Region. The delegation held discussions with senior representatives of the industry and trade associations in Kiev and Moscow. The following member-exporters were selected to participate in this delegation after going through the Company Profile & the range of the products dealt by them and after identifying the product suitability for the market. Members of the Trade Delegation: 1 Mr. Sonam Dawa, Tel: 91-1902-253607, 251626 Neelkanth Kullu Shawls, M-91-98163-04350 The Mall, Manali, Dist. Kullu, Email: Himachal Pradesh-175 131. firstname.lastname@example.org 2 Mr. Deepak Agarwal Tel: 91-22-28514752, 28510086 Eastern Trading Company, Fax: 91-22-26233592 Unit 17, Building 15, Email: email@example.com Samhita Complex, A.K. Road, Andheri (E), Mumbai-400 072. 3 Mr. Gagandeep Singh, Tel: 91-161-5036464, 2701130 Eros International, M-98159-96464 236/2, Gupta Road, Fax: 91-161-2701252 Industrial Area-A, Email: firstname.lastname@example.org Ludhiana-141 008. 4 Mr. Naresh Goel, Tel: 91-180-2646513 Naresh Impex, Fax: 91-180-2662376 2375, NHBC, Email: email@example.com Panipat-132 103. 5 Mr. Sunil Dusija Tel: 91-22-26732364, 66925847, Sujay Exports (India), 26370848 (R) C-17, Kilfire House, M-91-98211-32667 Dalia Industiral Area, Fax: 91-22-26730305 New Link Road, Andheri (W), Email: firstname.lastname@example.org Mumbai-400 053. 6 Mr. Mukesh Kumar Singhal Tel: 91-11-25226775, 22353806 Roli Impex Pvt. Ltd., M-91-98111-16505 F-180, Dilshad Colony, Fax: 91-11-22353123 New Delhi-110 095. Email: email@example.com 7 Mr. Yog Malhotra, Tel: 91-161-5012111, 5026348, OPK Knits, 2510519 185/1, G T Road, Fax: 91-161-2510116 P.O. Dhandari Kalan, Email: firstname.lastname@example.org Ludhiana (Punjab). In addition to the constituent members from the above members, Shri R K Gupta, Offtg. Executive Director was deputed for this delegation. VIST TO KIEV (UKRAINE) FROM 11TH TO 13TH SEPT., 2006 Situated on the Dnipro River, Kiev is the capital city of the Ukraine. After a rough and turbulent history, the town has become an interesting array of old and new buildings. More and more of the culture is being influenced by the characteristics of both Western and European customs, yet the Ukrainians that live here still cling proudly to tradition. The largest city of Ukraine, Kiev is a leading industrial, commercial, and cultural center. Food processing (notably the processing of beet sugar), metallurgy, and the manufacture of machinery, machine tools, rolling stock, chemicals, building materials, and textiles are the major industries. The economy of Ukraine is an emerging free market, with a gross domestic product that has experienced double-digit growth in recent years. Formerly a major component of the economy of the Soviet Union (both in industry and agriculture), Ukraine's economy experienced major fluctuations during the 1990s, including hyperinflation and drastic falls in economic output; GDP growth was first registered in 2000, and reforms are continuing. Kiev has a continental humid climate, although it has changed significantly during recent decades due to global climate changes. The warmest months are June, July, and August, with mean temperatures of 13.8 to 24.8°C (56.9 to 76.7°F). The coldest are December, January, and February, with mean temperatures of −4.6 to -1.1°C (23.7 to 30.0°F). The highest ever temperature recorded in the city was 39.4°C (103.0°F) on 31 July 1936. The coldest temperature ever recorded in the city was -32.2°C (-26.0°F) on 7 & 9 February, 1929. Snow cover usually lies from mid-November to the end of March, with the frost-free period lasting 180 days on average, but surpassing 200 days in recent years. India’s Exports of wool & wool blended products to Ukraine 2004-2005 Rs. 2581.01 Lakhs 2005-2006 Rs. 2622.45 Lakhs Meetings of the delegation in Kiev The delegation stayed in Kiev from 10th to 13th Sept., 2006 and met leading buyers as per the appointments fixed by the Embassy of India in Kiev. A Buyer Seller Meet was also organized in the premises of Ukrainian Chamber of Commerce & Industry (UCCI) with the help of Indian Embassy in Kiev. Around 11 leading industrialist from Kiev had attended the BSM. Delegation members displayed the samples which were highly appreciated by the Ukrainian Buyers. The delegation also visited some of the well- known Departmental Stores, Showrooms to study the pattern of consumer demand and fashion trends in the market. The members received good response from the buyers and as a result, sample orders worth Rs. 5 Crores were secured and large number of enquiries were also generated which are likely to materialize into firm orders. A list showing names of the Ukrainian Companies who had attended the Buyer-Seller Meet on 12th Sept., 06 is enclosed at Annexure I. The Council is grateful to Shri K P M Raman, First Secretary, Embassy of India, Ukraine & The Ukrainian Chamber of Commerce & Industry who have made all arrangements to make this Buyer-Seller Meet successful. We are also thankful to Shri Debabrata Saha, Ambassador for inviting us at his residence & guidance extended by him to our members regarding Ukrainian Market. VISIT TO MOSCOW (RUSSIA) FROM 14TH TO 20TH SEPT., 2006 The delegation stayed in Moscow from 14th to 20th Sept., 06 & met leading buyers as per the appointments fixed by the Embassy of India in Moscow. A Buyer-Seller Meet was organized in the Office of the Embassy where leading importers from the surrounding areas were invited on 15th Sept., 06. About 25 Russian Companies had attended the Buyer Seller Meet and they have appreciated the range of Woollen Products displayed by the member-exporters. As a result of this visit, the members of the delegation have secured orders worth Rs. 10 Crores & a large of enquiries were also generated which are likely to materialize into firm orders. The members also observed that buyers in general liked Indian Woolen Products as compared to the Products from China & other developing Countries because of their quality, range & designs etc. A list of the Russian Buyers who attended the Buyer Seller Meet is enclosed at Annexure II. In addition to the appointments fixed by the Embassy, the members of the delegation also visited some of the leading departmental stores, buying houses as per the list provided by the Indian Embassy in Moscow to see the range of Products displayed by them. A copy of these departmental stores is also enclosed at Annexure III. Moscow is exposed to cold winters, warm and mild summers, and very brief spring and autumn seasons. Typical high temperatures in the warm months of July and August are around 20°C (68°F); in the winter, temperatures normally drop to approximately -12°C (10°F). Monthly rainfall totals vary minimally throughout the year, although the precipitation levels tend to be higher during the summer than during the winter. In 2006, Mercer Management Consulting named Moscow the world's most expensive city, ahead of perennial winner Tokyo, due to the stable Russian ruble as well as increasing housing prices within the city. Some prices are considerably higher for the foreign visitor than for locals. A significant portion of Russia's profits and development is concentrated in Moscow as many multi-national corporations have branches and offices in the city. Since the Russian financial crisis in late 1998, various business sectors in Moscow have shown exponential rates of growth. Primary industries in Moscow include the chemical, metallurgy, food, textile, furniture, and machinery industries. Despite the economic growth experienced in Moscow since the dawn of the twenty-first century, many industries have undergone various crises in recent years. The city of Moscow remains one of Russia's major industrial centers. India’s Exports of wool & wool blended products to Russia 2004-2006 Rs. 5526.29 Lakhs 2005-2006 Rs. 623.28 Lakhs We are extremely thankful to Mr. Satbir Singh, Minister (Economy), Embassy of India, Moscow for the support & cooperation extended to the members of the delegation & in fixing up appointments with the leading buyers. Conclusions: The Council has faced great difficulty in getting the Visa for visiting Ukraine & Moscow. Inspite of recommendations of our Indian Embassy in Kiev, two members of the delegation could not get Visa to visit Kiev. It is therefore, suggested that Visas should be given speedily for encouraging Business visits to develop contacts with the buyers. The discussions and the information gathered during the visit of the delegation will facilitate the formulation of appropriate strategies for increasing Indian textile exports to the CIS Region. The exports of wool & wool blended products to CIS countries have gone down after disintegration despite the efforts made by the Government in increasing exports and also by individual exporters. The main reasons that affect our trade are Customs Regulations and inadequate banking facilities i.e. difficulties in realization of payments. Due to cold climate conditions, the CIS region offer huge opportunities and ample scope for increasing exports of woollen products from India to these countries. However, after the visit of the exporters, it is felt that the export to these countries can increase only if Banking Channel and Customs Regulations are strengthen and exporters can get realization of the export proceeds immediately after sending the goods. If these problems are solved, the exports can increase to CIS countries. As a follow-up of this visit, the Council is also participating in Textilexpo, Moscow which is to be held from 27 th –30th March, 07. Keeping in view, the difficulties being faced by the exporters in realization of the export proceeds, the Council is planning to open a Showroom cum Warehouse in Moscow, Tashkent & Almaty. Acknowledgements The support of the Indian Embassies in Kiev & Moscow was significant in organizing the visit of trade delegation. The Council is very grateful to the Indian Embassies for extending such help and co-operation. The Council is also thankful to the Ministry of Commerce & Industry, Government of India for approving this activity under Focus CIS Programme and for the members of the delegation for their co-operation in organizing the visit.
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