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					                                Index



                Content                  Page No.
          Executive Summary                 2
              Introduction                 3-4`
                Inverter                    5

          A Brief-Bangladesh               6-10
            Inverter Industry             11-15
            Entering Market               16-24
       Distribution & Advertising         24-27
               Conclusion                  28
              Bibliography                 29
                 Annex.

    1. Profile of the Existing Players    30-38
          2. Legal Formalities            39-42




1
                                  Executive Summary


As the Asian market are enticing more and companies from the west. How could a
company which has been a market leader in its sector, could watch others enjoying the
market. The company i am talking of is Emerson Electric (HQ- US).

                                                        After venturing into Indian
market and taking on the other biggies, the company has now decided to think about
other Asian markets, especially Bangladesh (a growing economy). In this report I have
covered geographical information, demographies and political information. All over the
world millions of people are deprived of power. Especially in Bangladesh the situation is
worse not only because of political violence, but also the power (electricity is adding) is
adding to the situation. The current Deficit of power in Bangladesh is 877MW. And that
power is served to only 35-40% of population, rest all are miles away from it. The
inverter industry in Bangladesh is not new or as if we can take advantage of first comer,
lots of players are already present in the market.

                                             Most of the players are local manufacturers
or importers (registered as a company), having a deep market knowledge as well the
reach. And among the outsiders are Chinese or Japanese players who are eating the
market on the grounds of price and technology. By this I am very sure that competition is
going to be intense. Porters five forces model has cleared the whole situation of inverter
industry in terms of new comers, suppliers, buyers, industry, and substitutes. And also the
4Ps of marketing which we need to know or decide before entering into Bangladeshi
market have also been explained.

                               In this report I have also given the names and the profiles
of the persons who directly or indirectly deal in inverter or related products. That would
be helping us in appointing the dealers and distributors for our product. As we are
venturing into a country whose political situation is very turbulent. So when need to
know all the details related to the registering the property, getting the license, export-
import formalities, and also the workforce legalities.

                      After knowing this we have to decide which way to enter the
Bangladesh market either by exporting, or appointing franchisee, joint venture,
consortium etc. All the information given in this report may not be sufficient, but will
surely give and overview or outlook for venturing into Bangladesh market.




2
                             Introduction

Demand for electricity will always be more than the supply. Because as the supply will
increase the demand or consumption will also increase and hence will widen up the gap
between the supply and demand. In order to bridge this gap between supply and demand
electrical gadgets have been launched in the market. The product which we will be
discussing on is inverter. Inverter is not a new product in the market, but as the
companies are getting new markets to trade, needs are getting modified and the old
gadgets like generators are getting obsolescent, inverters are more and more becoming
the first choice of consumers. The device which stores the electrical energy in the form of
direct current. And when required it is supplied to the required appliances. Emerson
network power India pvt. Ltd. is the major player in the Indian market and is a subsidiary
of Electrical Giant Emerson Electric USA.

Global Scenario
In 2005, total energy production was 2626 billion kWh. The increase over the last five
years (218 TWh) is equal to the output from 30 large new nuclear plants. Yet between
1999 and2005, there was a net increase of only two reactors (and 15GW). The rest of the
improvement is due to better performance from existing units. In a longer perspective,
from1990 to 2005, world capacity rose by 44 GW (13.5%, due both to net addition of
new plants and uprating some established ones) and electricity production raised 725
billion kWh (38%).The relative contributions to this increase were: new construction
36%, uprating 7% and availability increase 57%.More than one quarter of the world's
reactors have load factors of more than 90%, and two thirds do better than 75%, as
compared with about a quarter of them in 1990.Major Countries in Nuclear Power
Generation


                      World Electricty generation in 2005




                                            Nuclear ,
                                              16%
                                                                               Nuclear
           Coal, 40%                                                           Hydro
                                                  Hydro, 19%                   Oil
                                                                               Gas
                                                                               Coal
                                             Oil, 10%
                          Gas, 15%




3
Market size - Approximately 1.7billion people or 400 million households donot have
access to electricity. And the consumption of electricity is expected to be 600quadrillions
BTUs by 2020 (i.e. 59% more than of 1999).


            Market Size – Million of people without electricity




    Source- International Energy Agency




4
                                   Inverter




                                                                Transfer
                          Fast Mains AC                         Switch
                              Sensing
                               Circuit




        Battery
        Charger
                         Battery              AC/DC
                                                                           Inverter



Explanation:

Two parallel lines are shown, one line which is carrying the fast Mains sensing circuit,
connects the Main power supply to the other consumer durables through switchover
circuit. Till the time Main power supply is there the Battery connected through another
line gets recharged through battery recharger preceding it. There is certain time period
for battery to get fully charge to support the durables connected to it.

When the supply of electricity gets break, the switchover circuit comes into action. It
breaks the circuit between line 1 and the switch connected to durables and connects the
line 2 to the switch. And the supply starts within few seconds.




5
                                     A Brief - Bangladesh


                                               People's Republic of Bangladesh is located
                                               between Burma and India, bordering Bay of
                                               Bengal and is in south Asia.
                                               The total area of Bangladesh is 144,000sq.km
                                                (Land-
                                               133,910sq. Km, Water 10,090 sq.Km).
                                               The population of Bangladesh is 147,365,352
                                               (July 2006 est.). On an encouraging note,
                                               growth has been a steady 5-6% for the past
                                               several years.
                                               The Majority of Population is Muslim (i.e.,
                                               88%) and Hindus are in minority with 10% and
                                               the others are 2%.

POWER SECTOR IN BANGLADESH –

The coverage of electricity in Bangladesh is limited with only about a third of the population
having access to electricity. Power distribution networks are concentrated in urban areas with
insufficient rural coverage (only about 19% of rural households connected to electricity against
80% urban). And also the urban households have a share of 80% and their rural counterparts
are having only remaining 20% of electricity. Poorer rural households have little access to
electricity, mostly using kerosene for lighting. For mechanized irrigation, farmers rely much
more on diesel (90%) than on electricity. The quality of service by power utilities is poor and
the per capita generation at around 158 kilowatt hours (kWh) a year is also among the lowest in
the world. Electricity consumption in Bangladesh grew at an average annual rate of 8.1%
during the last ten years. Identical growth in electricity demand is expected to be maintained
during the next ten years. The current net generating capacity of the country is about 4,120
megawatts (MW) as against an installed capacity of over 5000MW, while the peak demand is
about 4,700 MW (Table1).

Shortage of electricity and unreliable supply are costly to the economy. Frequent and
prolonged load-shedding causes large losses to industrial production and disrupts economic
activities. This also discourages consumers from regularly paying their bills.
Extensive recourse to captive power by the export-oriented industries raises production cost
and reduces export competitiveness. Bangladesh Power Development Board (BPDB) and
Dhaka Electric Supply Authority (DESA), two of the three (the other being Rural
Electrification Board (REB) key state-owned power utilities with huge system losses are
financially distressed and are unable to pay their debts. The Government has long serviced the
domestic and foreign debts of these enterprises out of government revenues, effectively
providing large subsidies to the power sector but shouldering unsustainable budgetary burdens.
The Government also provided direct support through equity injection, grants and loans. The
large future investment needs of the power sector entities will add new debt service burdens.


     6
Losses of BPDB and DESA cannot be supported any further by the Government without
depriving other important sectors e.g. health and education, competing for limited government
resources. The heavy subsidies provided to power are also inefficient and inequitable.
Although the public sector power utilities are incapable of meeting the rising electricity
demand due to the lack of financial resources, private sector potential to respond to this need
has not been fully harnessed. Bangladesh faces an anticipated shortfall of about 2,000 MW of
generating capacity by 2010 and over 5,500MW by 2015, requiring substantial domestic and
foreign investment for building up adequate capacity. The Consumption of electricity in
various segments is as follows : Domestic -41%, Commercial- 8%, Industrial-44%, Irrigation-
5% and others-2%. Half of the population is below poverty line.




     GEOGRAPHY, POLITICAL AND CULTURAL

     Geographic information

     Geographic coordinates:             24 00 N, 90 00 E
     Map references:                      Asia
     Area: total:                        144,000 sq km
     Land:                               133,910 sq km
     Water:                              10,090 sq km
     Area -                              comparative: slightly smaller than Iowa
     Land boundaries:                    total: 4,246 km
     Border countries:                   Burma 193 km, India 4,053 km
     Coastline:                          580 km
     Maritime claims: territorial sea:   12 nm
     Contiguous zone:                    18 nm
     Exclusive economic zone:            200 nm
     Continental shelf:                   up to the outer limits of the continental margin
     Terrain: mostly flat                hilly in southeast
     Alluvial plain;
     Elevation extremes:                 lowest point: Indian Ocean 0 m
     Highest point:                      Keokradong 1,230 m




     7
Climate: tropical; mild winter (October to March); hot, humid summer (March to June);
Humid, warm rainy monsoon (June to October)


POLITICAL INFORMATION


Politically Bangladesh is very unstable. There are 30-40 active political parties: largest
ones include Bangladesh Nationalist Party (BNP), the Awami League (AL), the Jatiya
Party, and the Jamaat-e-Islami Party. Bangladesh is a member of south Asian Association
for regional cooperation (SAARC), along with Bhutan, India, Nepal, Pakistan and
srilanka. Despite serious problems related to a dysfunctional political system, weak
governance, and pervasive corruption, Bangladesh remains one of the few democracies in
the Muslim world. Bangladeshis regard democracy as an important legacy of their bloody
war for independence, and vote in large numbers. However, the practice and
understanding of democratic concepts is often shallow. Bangladesh is generally a force
for moderation in international forums, and it is also a long-time leader in international
peacekeeping operations. Its activities in international organizations, with other
governments, and its regional partners to promote human rights, democracy, and free
markets are coordinated and high profile. In May 2005, Bangladesh became a member of
the United Nations Human Rights Council.

Bangladesh lies at the strategic crossroads of South and Southeast Asia. Potential terrorist
movements and activities in or through Bangladesh pose a potentially serious threat to
India, Nepal, Bhutan, and Burma, as well as Bangladesh itself.

The Bangladesh Government routinely denies Indian allegations that Indian insurgents in
northeast India operate out of Bangladesh and that extremist Islamist forces are
overwhelming Bangladesh’s traditionally moderate character. It also denies there is any
international terrorist presence in Bangladesh. The Bangladesh government, however,
banned a number of Islamic extremist groups in recent years.



Demography

The Population of Bangladesh is 147,365,352. The Urban and the rural population is in
the ratio of 20 % is to 80%.




8
       Rural - Urban


                                 20%




          80%


                  Urban Population
                  Rural Population



Rural population – 117892282 and the urban population of Bangladesh is 29473070.4.
The most important thing in this is, out of total electricity connections urban area is
having 80% connections and the rural area is with only 20%.


    Male-Female                Female Population
                               Male Population




                                        ,49%


    51%




The Female population in Bangladesh is 72209022. And the population of Male is
75156330. But the ratio is declining year by year.




9
                                Age wise Distribution
                   4%


                                       33%




      63%



     0-14 years        15-64 years      65 years and over




Age structure for the year 2006 is as follows

      0-14 years: 32.9% (male 24,957,997/female 23,533,894)

      15-64 years: 63.6% (male 47,862,774/female 45,917,674)

      65 years and over: 3.5% (male 2,731,578/female 2,361,435) (2006 est.)



The number of people watching T.V. Using Internet and connected by a phone is

                                                                  Telecomm.
                                                                  Users            23000000
     25000000                                                     Television
                                                                  Users            10000000
     20000000
                                                                  Internet Users     500000
     15000000

     10000000

      5000000

            0
     Telecomm. Users                1
                            Television Users     Internet Users



It is very important to analyze this information. This afterwards will be helping us to
decide ou target consumers




10
INVERTER INDUSTRY IN BANGLADESH


Inverter market in Bangladesh is in nascent stage. Generator has always been priority of
the consumers. And as already said that almost 70% of people donot have access to
electricity. So having inverter in absence of electricity is of no use. And also with the
help of World Bank and Asian development bank the people of Bangladesh have devised
another alternate way to get power i.e. through Solar and Biofuel.

But slowly and steadily Generators are getting obsolete. And another reason for growth in
inverter market is heavy load shedding. The inverters players along with there profiles are
as follows…..


Advanced Power Solution Ltd.
        Business type: manufacturer, retail sales, wholesale supplier, importer
        Product types: backup power systems, packaged power systems, computer and
         electronic components, DC to AC power inverters.
        Address: Islam Manson 2nd floor, 56, Dilkusha C/A, Dhaka-1000, Dhaka, Dhaka
         Bangladesh 1000



Sun'NRG
        Business type: manufacturer, retail sales, wholesale supplier, exporter, importer
        Product types: solar charge controllers, DC lighting, LED lighting, DC to AC
         power inverters.
        Address: 61/A Lake Circus, Kalabagan, Dhaka, Bangladesh Bangladesh



VoltSmith Technology
        Business type: retail sales, wholesale supplier, importer
        Product types: computer software, computer and electronic components, DC to
         AC power inverters, uninterruptible power supplies UPS, telecommunications
         power systems, backup power systems.
        Address: Suite#2D, House#41, Road#9/A, Dhanmondi, Dhaka, Dhaka
         Bangladesh 1205




11
 Porter’s Five Forces Model
It would be very important to discuss the profiles of the other players in the market. So
that it would be helpful for us in selecting the national distributor or dealer for our entry
into Bangladesh.

Description

The Five Forces model of Porter is an Outside-in business unit strategy tool that is used
to make an analysis of the attractiveness (value) of an industry structure. The Competitive
Forces analysis is made by the identification of 5 fundamental competitive forces:

        1.    Entry of competitors. How easy or difficult is it for new entrants to start
        competing, which barriers do exist.
        2.    Threat of substitutes. How easy can a product or service be substituted,
        especially made cheaper.
        3.    Bargaining power of buyers. How strong is the position of buyers. Can
        they work together in ordering large volumes.
        4.    Bargaining power of suppliers. How strong is the position of sellers. Do
        many potential suppliers exist or only few potential suppliers, monopoly?
       5.     Rivalry among the existing players. Does a strong competition between
              the existing players exist? Is one player very dominant or are all equal in
              strength and size.

               Sometimes a sixth competitive force is added:

        6.     Government.

Porter's Competitive Forces model is probably one of the most often used business
strategy tools. It has proven its usefulness on numerous occasions. Porter's model is
particularly strong in thinking Outside-in.

Threat of New Entrants depends on:
            Economies of scale.
            Capital / investment requirements.
            Customer switching costs.
            Access to industry distribution channels.
            Access to technology.
            Brand loyalty. Are customers loyal?
            The likelihood of retaliation from existing industry players.
            Government regulations. Can new entrants get subsidies?


12
Threat of Substitutes depends on:
            Quality. Is a substitute better?
            Buyers' willingness to substitute.
            The relative price and performance of substitutes.
            The costs of switching to substitutes. Is it easy to change to another
             product?

Bargaining Power of Suppliers depends on:
             Concentration of suppliers. Are there many buyers and few dominant
       suppliers?
             Branding. Is the brand of the supplier strong?
             Profitability of suppliers. Are suppliers forced to raise prices?
             Suppliers threaten to integrate forward into the industry (for example:
       brand manufacturers threatening to set up their own retail outlets).
             Buyers do not threaten to integrate backwards into supply.
             Role of quality and service.
             The industry is not a key customer group to the suppliers.
             Switching costs. Is it easy for suppliers to find new customers?

Bargaining Power of Buyers depends on:
       Concentration of buyers. Are there a few dominant buyers and many sellers in
         the industry?
        Differentiation. Are products standardized?
        Profitability of buyers. Are buyers forced to be tough?
        Role of quality and service.
        Threat of backward and forward integration into the industry.
        Switching costs. Is it easy for buyers to switch their supplier?

Intensity of Rivalry depends on:
              The structure of competition. Rivalry will be more intense if there are lots
               of small or equally sized competitors; rivalry will be less if an industry has
               a clear market leader.
              The structure of industry costs. Industries with high fixed costs encourage
               competitors to manufacture at full capacity by cutting prices if needed.
              Degree of product differentiation. Industries where products are
               commodities (e.g. steel, coal) typically have greater rivalry.
              Switching costs. Rivalry is reduced when buyers have high switching
               costs.



13
              Strategic objectives. If competitors pursue aggressive growth strategies,
               rivalry will be more intense. If competitors are merely "milking" profits in
               a mature industry, the degree of rivalry is typically low.
              Exit barriers. When barriers to leaving an industry are high, competitors
        tend to exhibit greater rivalry

Threat of New entrants

This factor is a really a big Problem. Because already lot of players are present in the
market. And the current power situation of Bangladesh is enticing the new ones.

Economies of scale is high, which in turn make a big profit for the players.And again the
capital investment required is low. Its not necessary to have your own manufacturing
facility, either you can outsource or import that others. It saves a lot of initial
investment.All you need to have is market Knowledge and Market reach.

Access to industry distribution channels, again this also helps new commers a lot . But
this is highly dis-organized, because there is lot of regional imbalance.

Access to technology is also easy and helps in bringing more and more players in the
market. Reason for this is , some chinese players are present which are making the price
as well as technology very mundane.



Brand loyalty , is also on the lower side as far as inverter brands are concerned

The likelihood of retaliation from existing industry players, as already lot of players are
present so no one to one rivalry is there in the market.

Threat of Substitutes:

Substitute to inverters are generators, Bioenergy, Solar energy devices. And this also
poses a high competition. Because only 35-45% of bangladesh is having access to
power. In that also solar and Bio energy contributes.As these ( substitutes) are the
products on which lot of research has already been done, and they are made for meeting
the basic as well secondary requirements of the customer. So quality of the products is
always on the higher side. As far as buyer’s willingness is concerned they are ready to
change if they get a product with low price. The cost of switching to substitute is high.

Bargaining power of supplier:

As said there is lot of potential in the market, and lots of players are already present in the
market. And that makes lot of customer available to choose for suppliers. Easy
accessibility to technology makes forward integration very easy option for the suppliers.


14
Bargaining power of Buyers

Again there are lot of customer in the market. But as already said that forward and
backward integration is always an easy option ( if you can control the cost). And many
times the supplier turns into the customer. So its all equal, and is in equilibrium.
Technology can be the big differentiator in terms of product differentiation. Because
most of the players donot invest in research and development. As inverter is a product
whose success in the market depends on the after sales service provided to the customer.

Intensity of rivalry

As there are lot of small and equally sized players, so competition and rivalry are
intense.As far as leadership is concerned, there is no absolute market leader. Inverter is
not a commodity, but still competition has became very intense. Because players always
try to fight on the price basis.




15
                       ENTERING BANGLADESH MARKET


As Bangladesh Inverter Market is quite similar to Indian market, so the approach to enter
the bangla market would be same as it would have been in case of Indian market.
Bangladesh is having different Power supply as well as the electricity rate in different
areas i.e. western Bangladesh is very much deprived of power than eastern Part. The
power which western part gets from eastern part is very much discontinuous and also
proves to be costly to the power board of Bangladesh. The country government with the
help of Asian Devlop. Bank, World bank has devised other alternatives. By this I mean
that, most of the Bangladesh is still not getting power, and the areas which are getting are
getting it through some other ways( means our inverter will not find place there) . So we
will be targeting eastern cities and only some of the western cities. By this I also mean to
say that there are many small towns and cities which are not covered by REB. And
another major problem is that, transmission lines have reached the places but not the
power.

To decide our target customer we will be taking this below mentioned data into
consideration. The table tells us that number of people with T.V. are 10,000,000. This is a
very big number. In this number of people watching Colour T.V. are 65% of it (i.e. 65,
00,000). So our segments of customer are those people who watch colour T.V.

The country currently has about 8.5 million power connections covering around 50
million consumers.




                        25000000

                        20000000

                        15000000

                        10000000

                         5000000

                               0
                        Telecomm. Users            1
                                           Television Users     Internet Users



                        Telecomm.
                        Users                                 23000000
                        Television
                        Users                                 10000000
                        Internet Users                          500000




16
And as we are targeting domestic consumer, the consumption of electricity among
different user categories are



TARGETING

So the customer whom we will be targeting will be the head of the Family that is the male
head of the Family. And the Families there are ardent Muslims with very conservative
thoughts. So the decision making is in the hands of the head of the family.


POSITIONING
Most of the products (inverter) sold in Bangladesh are either China made, in-house
Manufacturing, or are imported. So the Cost of the inverter is quite Low in comparison
to Indian Market.



In positioning, we need to know the price tactics of various inverter players in
Bangladesh market. As in Bangladesh, various local manufacturers and Chinese players
are already present; the low price segment is quite powerful. The other players who are
either in Avg. prevailing price band or are above it, enjoys a little market share.

We should position ourselves as a world leader in electric technology who knows best
about the electric technology and understands the requirement of customer very well.


4P’s

        Product

        Price




17
                Skimming Price




          Avg. Prevailing Price
          Band
          (Emerson Inverter)                                              T3

                                                           T2

              Chinese                                                c2
              Players                       T1

                                                     c1


            Penetration price




         Place

         Promotion


Place -

                                            Company
                                        (No manufacturing)




                                        National Distributor




                                              Dealers
                                  (Dealing in Solar, or Bio energy
                                            instruments)


18
As already mentioned above that there is no need of having a manufacturing facility in
Bangladesh. So having a company subsidiary in Bangladesh will solve our purpose. The
national distributor in Bangladesh would be given wholesale responsibility of selling in
Bangladesh. But as we will be in commanding position, so we can have some say in
appointing the dealers. For appointing dealers in areas other that Dhaka and Chittagong
we can catch the guys who are dealing in solar and Bio energy instruments

When a company makes a commitment to go international. it must choose an entry
strategy. This decision should reflect an analysis of market potential, company
capabilities and the degree of marketing involvement. The approach to foreign marketing
can range from minimal investment with infrequent and indirect exporting with little
thought given to market development, to large investment of capital and management in
an effort to capture and maintain a permanent, specific share of world markets.
Depending on the firm’s objective and market characteristics, either approach can be
profitable. Even though companies begin with modest export involvement, experience
and expansion into large numbers of foreign markets increase the number of entry
strategy used. In fact , a company in various country markets may employ a variety of
entry modes since each country market poses a different set of conditions. A company
has four different modes of foreign market entry from which to select :




  Export
 Exporting


          The internet
            The internet



                            Contractual Agreement



                                                Direct Foreign Investment


Exporting-

Exporting can be either Direct or indirect. With direct exporting the company      sells to a
customer in another country. Being a very common approach it decreases the risk of
financial loses. While in indirect exporting the company sells to a buyer in the home




19
   country who in turn exports the product. Early motives for exporting often are to skim the
   cream from the market or gain business to absorb overhead. Direct Exporting will be the
   better option in comparison to indirect exporting.


   The internet-

   Initially internet marketing should be focused on domestic sales. Although in its infancy
   the internet should not be overlooked as a foreign market entry method. It may look
   surprising but large number of companies started receiving order from customers. But
   this will not applicable in our case (if only this method is used), as our product is a
   consumer durable and also an in demand product.
   Contractual Agreements-



   Contractual Agreements are long term, non equity associations between a company and
   another in a foreign market. Contractual Agreements generally involve the transfer of
   technology, process, trademarks or human skills. In short, they serve as a means of
   transfer of knowledge rather than equity




         Licensing


                         Franchising


                                        Joint venture


                                                         Consortia



Licensing-

A means of establishing a foothold in foreign markets without large capital outlays is
licensing. Patent rights and the rights to use technological processes are granted in foreign
licensing. It is a favorite strategy for small and medium sized companies although by no
means limited to such companies.




   20
It should be used in the case when capital scarcity, import restrictions forbids the entry into
market. Or in a case when a country is sensitive to foreign ownership. Although it is at least
possible way of entering into a market but the risk and headaches is less than direct
investment. But it’s not a good option for our company to go through this strategy.

Franchising-

Franchising is a rapidly growing form of licensing in which the franchisor provides a
standard package of products, system and management services, and the franchisee provides
market knowledge, capital and personal involvement in management. The combination of
skills permits flexibity in dealing with local market conditions and yet provides the parent
firm with a reasonable degree of control. The franchisor can follow through on marketing of
the products to the point of final sale. It is an important form of vertical market integration.
Franchising is the fastest growing market-entry strategy. In this the foreign laws and
regulations are friendlier towards the franchising because it tends to foster local ownership,
operations and employment. There are two types of franchising: Master and Local
Franchising. Although franchising enables a company to expand quickly with minimum
capital, there are costs associated with servicing franchisees. Means product might change in
different countries according to the taste.




Joint Ventures

Besides serving as a means of lessening political and economic risks by the amount of the
partner’s contribution to the venture, JVs provide a less-risky way to enter markets that pose
legal and cultural barriers than would be the case in an acquisition of an existing strategy. It
is different from other in that it is a partnership of two or more participating companies that
have joined forces to create a separate legal entity. Four factors are associated with joint-
ventures:

   1. Joint Ventures are established, seprate,legal entities:
   2. They acknowledge intent by the partners to share in the management of the JV:
   3. They are partnerships between legally incorporated entities such as companies,
      chartered organizations, or government and not between individuals
   4. Equity positions are held by each of the partners.

   Local partners can often lead the way through legal mazes and provides the outsider with
   help in understanding cultural nuances. And a JV can attractive to an international
   marketer.

   1. When it enables a company o utilize the specialized skills of a local partners;
   2. When it allows the market the marketer to gain access to




   21
Consortia

Consortia and JV are similar to each other and could be classified as such as except for two
unique characteristics:
   1. They typically involve a large number of participants
   2. They frequently operate in a country or market in which none of the participants is
       currently active.

Consortia are developed for pooling financial and managerial resources and to lessen risk


Manufacturing

Its direct foreign investment. A company may manufacture locally to capitalize on low-cost
labour, to avoid high import taxes, to avoid high cost of transportation to market, to gain
access to raw material, and or as means of gaining entry into market


After having a look at the report on Bangladesh by world report, Manufacturing in
Bangladesh is not a good option.




 Ease of...                           2006 rank       2005 rank         Change in rank
 Doing Business                           88              81                   -7
 Starting a Business                      68              63                   -5
 Dealing with Licenses                    67              64                   -3
 Employing Workers                        75              75                   0
 Registering Property                    167              167                  0
 Getting Credit                           48              41                   -7
 Protecting Investors                     15              15                   0
 Paying Taxes                             72              69                   -3
 Trading Across Borders                  134              132                  -2
 Enforcing Contracts                     174              174                  0
 Closing a Business                       93              87                   -6




 Starting a Business




 22
   Indicator                                               Bangladesh      Region     OECD

   Procedures (number)                                                 8       7.9      6.2

   Time (days)                                                      37        32.5     16.6

   Cost (% of income per capita)                                  87.6        46.6      5.3

   Min. capital (% of income per capita)                            0.0        0.8     36.1




The challenges of launching a business are shown below. Included are: the number of steps
entrepreneurs can expect to go through to launch, the time it takes on average, and the cost
and minimum capital required as a percentage of gross national income (GNI) per capita.

 Dealing with licenses

   Indicator                                             Bangladesh        Region     OECD

   Procedures (number)                                            13         16.1       14.0

   Time (days)                                                   185        226.6      149.5

   Cost (% of income per capita)                               272.3        375.7        72.




   Shown above are the procedures, time, and costs to build a warehouse, including
   obtaining necessary licenses and permits, completing required notifications and
   inspections, and obtaining utility connections.

Employing Workers

   Indicator                                              Bangladesh       Region     OECD

   Difficulty of Hiring Index                                      11         41.8      27.0

   Rigidity of Hours Index                                         40         25.0      45.2

   Difficulty of Firing Index                                      40         37.5      27.4

   Rigidity of Employment Index                                    30         34.8      33.3

   Nonwage labor cost (% of salary)                                0.0         6.8      21.4

   Firing costs (weeks of wages)                                  51.0        71.5      31.3




   The difficulties that employers face in hiring and firing workers are shown below. Each
   index assigns values between 0 and 100, with higher values representing more rigid
   regulations. The Rigidity of Employment Index is an average of the three indices.



   23
Registering Property

   Indicator                                               Bangladesh          Region      OECD

   Procedures (number)                                               8            5.8         4.7

   Time (days)                                                     425          118.6       31.8

   Cost (% of property value)                                     10.5            5.3         4.3


The ease with which businesses can secure rights to property is shown below. Included are
the number of steps, time, and cost involved in registering propert


Closing a Business

   Indicator                                                  Bangladesh        Region     OECD

   Time (years)                                                          4.0       3.6        1.4

   Cost (% of estate)                                                    8.0       6.3        7.1

   Recovery rate (cents on the dollar)                                24.9        19.5      74.0




The time and cost required to resolve bankruptcies is shown below. The data identifies
weaknesses in existing bankruptcy law and the main procedural and administrative
bottlenecks in the bankruptcy process. The recovery rate, expressed in terms of how many
cents on the dollar claimants recover from the insolvent firm, is also shown.

After going through the above reports by World Bank. Having a manufacturing facility in
Bangladesh is not advisable, I there could be many reason for it. Some of them are Work
force problems, registering Property, strikes, turbulent political situation in Bangladesh. So it
would be very risky to invest so much in Bangladesh initially

After analyzing above mentioned data, having a fully owned subsidiary (but no
manufacturing) would be a good option for the company.



How to go about distribution in Bangladesh; Distribution Pattern

The company needs a general awareness of the patterns of distribution that confront them in
world market places. Nearly every international trading firm is forced by the structure of the
market to use at least some middleman in the distribution arrangement.



   24
Foreign Country Middlemen

Using Foreign-country Middlemen moves the manufacturer closer to the market and involves
the company more closely with problems of language, physical distribution,
communications, and financing. Foreign middlemen may be agents or merchants; they may
be associated with the parent company to various degrees; or they may be hired for
temporarily hired for special purposes. Some of the most important foreign-country
middlemen are manufacturer’s representatives and foreign distributors.

Manufacturer’s Representatives

Manufacturer’s representatives are agent middlemen who take responsibility for a producer’s
goods in a city, regional market area, entire country, or several adjacent countries. When
responsible for a entire country, the middlemen is often are called a sole agent. The
manufacturer’s representative is widely used in distribution of industrial goods overseas and
is an excellent representative for any type of manufactured consumer goods.

Foreign manufacturer’s representative has a variety of titles, including sales agent, resident
sales agent, exclusive agent, commission agent, and indent agent. They take no credit,
exchange, or market risk but deal strictly as field sales representatives. They do not arrange
for shipping or for handling and usually do not take physical possession. Manufacturers who
wish the type of control and intensive market coverage their own sales force would afford,
but who cannot field one, may find the manufacturer’s representative a satisfactory choice

Distributors

A foreign distributor is a merchant middleman. This intermediary often has exclusive sales
rights in a specific country and works in close cooperation with the manufacturer. The
distributor has a relatively high degree of dependence on supplier companies, and
arrangements are likely to be on a long run, continuous basis. Working through distributors
permits the manufacturer a reasonable degree of control over prices, promotional effort,
inventory, servicing and other distribution functions.

Foreign country brokers

Brokers are agents who deal largely in commodities and food products. The foreign brokers
are typically part of small brokerage firms operating in one country or in few contiguous
countries. Their strength is in having good continuing relationships with customers and
providing speedy market coverage at allow cost.

Managing Agents and compradors




   25
A managing agent conducts business within foreign nation under an exclusive contract
arrangement with the parent company. Compensation is usually on the basis of cost plus a
specified percentage of the profits managed company.



Dealers

Anyone who has a continuing relationship with a supplier in buying goods is considered a
dealer. More specifically, dealers are middlemen selling industrial goods or durable
consumer goods direct to customers; dealers are in the last step of the channel distribution


After considering the ranking given by World Bank to Bangladesh, having a national
distributor or a whole sale agent in Bangladesh would be a very good option. By this we
will save a lot of time. By this we would also be in better commanding position and the
distributor would also be very much dependent on us. Working through distributors will
permits us a reasonable degree of control over prices, promotional effort, inventory,
servicing and other distribution functions.




ADVERTISING


Intense competition for world markets and the increasing sophistication of foreign
consumer’s have lead to a need for more sophisticated advertising strategies. Increased costs,
problems of coordinating advertising programs in multiple countries, and desire for a
common worldwide company or product image have caused MNCs to seek greater control
and efficiency without sacrificing local responsiveness. Whether to have a centralized or de-
centralized policy for advertising is also a very important question to be answered.

One of the most widely debated policy areas pertains to the degree of specialized advertising
necessary from country to country. One view sees advertising customized for each country or
region because every country is seen as posing a special problem. Executives with this
viewpoint argue that the only way to achieve adequate and relevant advertising is to develop
separate campaign for each country. At the other extreme are those who suggest that
advertising should be standardized for all markets of the world and overlook regional
differences altogether.




   26
Plan Globally - Act Locally

A product is more than a physical item ; it is a bundle of satisfaction the buyer receives. This
package of satisfactions or utilities includes the primary function of the product along with
many other benefits imputed by the values and customs of the culture. Different culture often
seeks the same value or benefits from the primary function of a product.

Other that the primary functions of the product, different culture, different nations desire
different values, features from the product. There are many products which produce different
expectations beyond the common benefits sought by all. Thus, many companies follow a
strategy of pattern advertising, a global advertising strategy with a standardized basic
message allowing some degree of modification to meet local situations.

The other creative challenges

    Legal tax considerations

    Language Limitation

    Cultural Diversity

    Media Limitation

    Product and Cost Limitation




   27
                            Conclusion


Every business depends upon the success of its product and the positive ROI. Bangladesh
Economy is growing at a very healthy rate. After studying things like risk factor (Political
),market size, competitors, distribution channel and the Profile of various existing
players.

The conclusion is very clear that , Bangladesh is a promising market for the inverters.




28
Bibliography
Websites

        The worldbankgroup.com
        Energy.sourceguide.com
        Unescaap.org
        NEP.com
        Asiatradehub.com
        Bangladesh Sangbad Sangstha (BSS).org



BOOKS

International Marketing- Dr. R. Chandran

International Marketing- Catero Graham




29
Profiles of the who deals either in inverter or related products


Bengal Import Export Marketing & Buying Corp.



         We wish to business relationship with your company.

         Business type: retail sales, wholesale supplier, exporter
         Product types: air cooling systems, alternative homes and buildings, alternative
          fuel vehicles, air filtering and purification systems, alternative fuel vehicles, air
          heating systems.
         Address: 28, Kazi Nazrul Islam Avenue, 2nd Floor, Zohura Market,Banglamotor,
          Dhaka, xxx Bangladesh 1000
         Telephone: 01817534381
         FAX: 880-2-9560830



SUN-NRGey Bangladesh

Joint Investment Request for assembling of PV Solar Panel. 40% Loan @ 6% Interest
and 10-Years re-payment available in Bangladesh.

         Business type: manufacturer
         Product types: solar charge controllers, solar electric power systems, solar
          electric power systems, Solar Home System, Solar LED Lantern, Solar
          Community System, EPS, IPS,.
         Address: 61/A - Lake Circus, Kalabagan, Dhaka, Bangladesh 1205
         Telephone: 880-2-914.3721
         FAX: 880-2-865.2513
         Web Site: http://www.sun-nrg.org




Howlader Shipping Lines

         Business type: exporter
         Product types: marine power systems.



30
        Address: Eneses Chamber (2nd Floor), 1102, Nur Ahmed Sarak,, Chittagong,
         Bangladesh 4000
        Telephone: 88-031-613368
        FAX: 88-031-637639, 617138
        Web Site: http://www.howlader.com

Centre for Energy Studies
        Business type: research institution
        Product types: Research on Renewable Energy Systems, Organizing Training
         programs and Seminars on Energy related issues, publications like Journals and
         Proceedings.
        Service types: research services
        Address: Ramna, Dhaka, Dhaka, Bangladesh 1000
        Telephone: 880 2 8614640-4
        FAX: 880 2 8613046
        Web Site: http://www.buet.edu

Quantumcloud
        Business type: importer, publisher
        Product types: computer software, publications, computer and electronic
         components.
        Address: 220/1 rokeya sarani, Dhaka, Dhaka Bangladesh 1207
        Telephone: 011090930
        Web Site: http://www.quantumcloud.com

Advanced Power Solution Ltd.

        Business type: manufacturer, retail sales, wholesale supplier, importer
        Product types: backup power systems, packaged power systems, computer and
         electronic components, DC to AC power inverters.
        Address: Islam Manson 2nd floor, 56, Dilkusha C/A, Dhaka-1000, Dhaka, Dhaka
         Bangladesh 1000
        Telephone: 880-2-7170083

AKB Group

        Business type: manufacturer, exporter
        Product types: fluorescent lighting, fluorescent light bulbs.
        Address: 109, Khatungonj, Chittagong, Bangladesh 4000
        Telephone: 880-31-636471,624506,621872

Al-Hamza Enterprise

        Business type: wholesale supplier, importer


31
        Product types: compact fluorescent lighting fixtures and ballasts, fluorescent
         light bulbs.
        Address: 85New Circular Road, 207 Ayesha Shopping Complex, Malibagh.,
         Dhaka-1217, Bd Bangladesh 1217
        Telephone: 880-11-848287

AMAZ-K Technotrade Ltd.

        Business type: Exporter, Importer, Manufacturer, Publisher
        Product types: Computer and electronic components, computer software,
         publications, Web-Design and hosting, zinc chloride batteries, appliances,
         Handicrafts, Consumer products.
        Address: 43, Mymensingh Road, (Banglamotor link road), Dhaka, Bangladesh
         1000
        Telephone: 880-2-9663727
        FAX: 880-2-8629019

Bengal Trade Int.l'/ Bengal It.

        Business type: wholesale supplier, importer
        Product types: computer and electronic components, energy efficient homes and
         buildings, water pumps, appliances, capacitor batteries, alternative home and
         building construction materials, any kinds of new items wish to marketing in
         Bangladesh.
        Address: 3/7 Akik Mhal 4C Naya Platan Dhaka , Dhaka , Dhaka Bangladesh
         1000
        Telephone: 880-2-8360788.
        FAX: 880-2-8360788

Era Filling & Service Station

        Business type: retail sales, wholesale supplier, importer
        Product types: alternative fuel vehicles, air cooling systems, air filtering and
         purification system components, air filtering and purification systems, air cooling
         systems.
        Address: Bsec Bhaban(Level 4), 102 Kazi Nazrul Islam Avenue, Kawran Bazar,
         Dhaka Bangladesh 1215
        Telephone: +8802 8130924
        FAX: +8802 8126212

First Bangladesh Technologies

        Product types: photovoltaic systems, wind energy systems (small), solar water
         heating systems.
        Service types: consulting, installation, project development services
        Address: H - 64, Road 17, Block E, Banani, Dhaka, Dhaka Bangladesh 1213


32
        Telephone: (880 2) 88 11 768
        FAX: (880 2) 8828836

General Battery Company Ltd.

        Business type: manufacturer, retail sales, wholesale supplier
        Product types: lead acid batteries, emergency backup batteries, DC powered
         appliances, uninterruptible power supplies UPS.
        Address: 192, Shahid Syed Nazrul Islam Swarani. (5 Bijoy Nagar), Dhaka,
         Bangladesh 1000
        Telephone: 880-2-9330236 , 880-2-9349304
        FAX: 880-2-9332548
        E-mail: Send Email to General Battery Company Ltd.

Haque and Company Dry Cell Ltd.

        Business type: manufacturer
        Product types: carbon zinc batteries.
        Address: 85/A New Eskaton Road, Dhaka, Dhaka Bangladesh 1000
        Telephone: 0088 01711593599
        FAX: 0088028318188

Inter.biz Limited

        Product types: alternative fuel vehicles.
        Address: Navana Tower, 11th Floor, Type-B, 45 Gulshan Avenue, Circle-1,
         Dhaka, Bangladesh 1212
        Telephone: +880-2-9888811, 9888813, 9889063

Jute Expo Trading Ltd.

        Business type: importer
        Product types: gas turbine electric generators.
        Address: Amin Court 5Th Floor, 62-63 Motijheel C/A.,, Dhaka, Bangladesh
         1000
        Telephone: 880-2-9564948
        FAX: 880-2-9553175

Kare group of Industry

        Business type: manufacturer, wholesale supplier, exporter, importer
        Address: Corporate House#324, Road#3, Baitul Aman Housing Society,
         Shamoly, Adabar, Dhaka, Mohammadpur Bangladesh 1207
        Telephone: 880-9130241,9111613, 8318947, 8361534
        FAX: 9114237




33
Luna Lite Co., (Bd.) Ltd.

        Business type: Manufacturer and Exporter
        Product types: Multi-chip LED (Dia-2,4.25,5.5,7,20mm),Based LED Indicating
         Lamp, Pilot Lamp (LED, Neon), LED Lighting , Push Button Lamp/Switch.
         Lighting Items with controller circuit..
        Address: Plot # 4 & 5, Sector 4/A , Export Processing Zone., Chittagong,
         Chittagong Bangladesh 4223
        Telephone: +88 031- 740953 , - 740987
        FAX: +880 31 740018

Macro Corporation

        Product types: gas turbine electric generators, steam turbine electric generators,
         cogeneration systems, hydro energy system components (large), we are promoting
         business for all types of steam and gas turbine power generation units, and supply
         of spare parts and services..
        Address: 37 , Kakrail, ( V.I.P. Road ) , Dhaka 1000, Dhaka Bangladesh 1000
        Telephone: 880-189-216192
        FAX: 88802-9341963

Megatek Engineering LTD

        Business type: distributor
        Product types: Electric generators.
        Address: 8 Jasimuddin Avenue Sector 3 Uttara Model Town, Dhaka, DHAKA
         Bangladesh 1230
        Telephone: 880 2 891556

Meiji Products & services Ltd

        Business type: retail sales, importer
        Product types: refrigerators and freezers, appliances, air cooling systems.
        Address: 17,New Eskaton Road,Alhaj Samsuddin Mansion,7th floor,Mogbazar,
         Dhaka, Dhaka Bangladesh 1000
        Telephone: 00-88-02-8359438,88-02-9354091
        FAX: 88-02-9355826

NAAF Chemicals

        Business type: manufacturer, exporter, importer
        Product types: zinc sulphide, zinc ammonium chloride (single, double, triple),
         Zinc Oxide (min. 99%), Zinc Chloride solution (48%, 60%, 72% or required
         concentration).
        Address: 84 (2nd floor), Aziz Super Market, Shahbagh, Dhaka, Bangladesh 1000
        Telephone: 9665353


34
Oceanic Technology

        Business type: manufacturer, exporter
        Product types: computer software.
        Service types: project development services
        Address: 168/1, Boro Mogh Bazar Dhaka-1217, Dhaka-1217, Bangladesh 1217
        Telephone: 008802407520

Overseas Parts Agencies

        Business type: wholesale supplier, importer,
        Product types: fluorescent lighting, compact fluorescent lighting fixtures and
         ballasts, fluorescent light bulbs, compact fluorescent lighting, electric cars,
         compact fluorescent lighting fixtures and ballasts, automobile bulbs & automobile
         spare parts..
        Address: 315 Dewan Chamber (1St.Fl.),Suite#12,Dewanhat,, Chittagong-4100,
         Bangladesh 4100
        Telephone: 880-31-721845

Panjary Trade International Limited

        Business type: importer
        Product types: water pumps.
        Address: 101/B, Malibagh Chawdhuripara, Dhaka, Bangladesh 1219
        Telephone: +880 2 8360909

Power-Gen

        Business type: retail sales, wholesale supplier, exporter
        Product types: gas turbine electric generators, marine power systems, heat
         exchangers, capacitor batteries, refrigerators and freezers, hydroelectric turbines
         (small).
        Address: 418 C.D.A Market, Pahartali, Chittagong, Chittagong, Bangladesh 0880
        Telephone: 031-752576

Rahimafrooz Renewable Energy Limited

        Business type: Integrator and Installer of Solar PV systems, Electronics
         assembler
        Product types: Solar Home Lighting, Solar Street Lighting, Solar Water Heating,
         Solar Water Pumping, Lanterns, Telecommunication and Navigation solutions,
         large centralized systems..
        Address: 260-B Tejgaon Industrial Area, 1st Floor,, Dhaka, Bangladesh 1208
        Telephone: 00880-2-8832206, 8832207, 8832208
        FAX: 00880-2-8832209




35
Raisa International

        Business type: importer
        Product types: solar cooking systems, solar water pumping systems.
        Service types: installation
        Address: North Aouchpara, Mollabari Bazar, Tongi, Gazipur, Bangladesh
         Bangladesh
        Telephone: 0188181453

Rolex Battery Co

        Business type: manufacturer, importer
        Product types: lead acid batteries, lead acid batteries, lead acid batteries, lead
         acid batteries, lead acid batteries, Lead Acid Battery Related Accessories.
        Address: 5 Wise Ghat Road, Dhaka, Bangladesh 1100
        Telephone: 0088027392574

        Business type: importer, trade association
        Product types: GAS TURBINE SPARE PARTS FOR ELECTRICAL POWER
         STATION.
        Address: 205/2 Elephant Road(Ist Fl), Dhaka-1205, Bangladesh, Dhaka, Dhaka
         Bangladesh 1205
        Telephone: +880-2-9677628
        E-mail: Send Email to Saj Engineering & Trading Co.

Sano Corporation

        Business type: wholesale supplier, importer
        Product types: hybrid power systems, gas turbine electric generators, solar
         cooking systems, solar roofing systems, backup power systems, home automation,
         Large Project Representation for Power Plant, Transmission Lines, Bridges,
         Roads & Highways etc.
        Address: Sabbir Tower (3rd fl), 3/4 A Purana Paltan, Dhaka, Bangladesh 1000
        Telephone: +880173006168

Santa Enterprise

        Business type: retail sales, importer
        Product types: gas turbine electric generators, portable power systems, air
         cooling systems, .
        Address: 190 Fakirapool(1st floor) ,Motijheel, Dhaka, Dhaka Bangladesh 1204
        Telephone: 0088-01715202990

Sun'NRG

        Business type: manufacturer, retail sales, wholesale supplier, exporter, importer


36
        Product types: solar charge controllers, DC lighting, LED lighting, DC to AC
         power inverters.
        Address: 61/A Lake Circus, Kalabagan, Dhaka, Bangladesh Bangladesh 1229
        Telephone: +880 2 914 3721
        FAX: +880 2 914 6181

TechnoLink International

        Business type: wholesale supplier, service, trade association, importer,
         contractor, engineering
        Product types: automotive starting batteries, telecommunication batteries, lead
         calcium batteries, battery chargers, nickel cadmium batteries, lead acid batteries,
         Solar systems.
        Address: 120/17/1 Kabi Benazir Bagan, Shahjahanpur, Dhaka, Dhaka
         Bangladesh 1217
        Telephone: 880-2-9351548
        FAX: 880-2-9351548

United Exim Corporation.(Attn.: Firoj Alam Bhuiyan)

        Business type: manufacturer, wholesale supplier, exporter, importer
        Product types: i)Solar Energy ii)IPS iii)UPS iv) Brand Electric Motors v) Water
         Pumps vi) Escalators vii) Elevators/Lifts (Good quality) viii) Colored Glasses for
         high rise buildings ix) Generators x) Air Conditioners .
        Address: House 15, Road 9, Pisciculture HS, Shekhertek, Mohammadpur,
         Dhaka, Bangladesh Bangladesh 1207
        Telephone: 880-2-9123707
        FAX: 880-2-9115452

VoltSmith Technology

        Business type: retail sales, wholesale supplier, importer
        Product types: computer software, computer and electronic components, DC to
         AC power inverters, uninterruptible power supplies UPS, telecommunications
         power systems, backup power systems.
        Address: Suite#2D, House#41, Road#9/A, Dhanmondi, Dhaka, Dhaka
         Bangladesh 1205
        Telephone: 880-2-9135775

World Business Mart

        Business type: manufacturer, wholesale supplier, importer
        Product types: solar charge controllers, photovoltic module, Solar Radio, Solar
         Siren, Complete lamp shade including inverter, Plastic lamp shade.
        Service types: Solar Power
        Address: 14/1, Middle Paikpara, Mirpur-1, Dhaka-1216 Bangladesh 1216


37
        Telephone: 88029011620
        FAX: 88029011620

Xebec & Partners Limited

        Business type: manufacturer, retail sales, wholesale supplier, importer
        Product types: solar electric power systems, telecommunication batteries,
         fluorescent lighting, marine power systems, remote home power systems, wind
         energy systems (large).
        Service types: installation, construction, maintenance and repair services
        Address: H-71 (2nd Floor) New Airport Road, Amtoli, Mohakhali, Dhaka1212
         Bangladesh
        Telephone: 880 2 988 2024
        FAX: 880 2 882 5379




38
Starting a business - Formalities


Procedure 1.    Verify with the Registrar of Joint Stock Companies and Firms the uniqueness of the
                proposed company name;


Time to         5 days                                      Cost to BDT 305
complete:                                                complete:


Procedure 2.    Two lawyers verify the Memorandum and Articles of Association


Time to         1 day                                       Cost to USD 100 (may vary)
complete:                                                complete:


Procedure 3.    Buy Adhesive Stamp from Treasury for Memorandum and Articles of Association.


Time to         1 day                                       Cost to BDT 5000
complete:                                                complete:


Procedure 4.    File documents with the Registrar of Joint Stock Companies and Firms for
                registration


Time to         14 days                                     Cost to BDT 4800
complete:                                                complete:


Procedure 5.    Make a company seal.


Time to         1 day                                       Cost to USD 1
complete:                                                complete:


Procedure 6.    Register with the tax authority


Time to         9 days                                      Cost to BDT 2000 (incidental charges)
complete:                                                complete:


Procedure 7*.   Register for VAT


Time to         7 days (simultaneous with                   Cost to no charge
complete:       procedure 6)                             complete:


Procedure 8.    Obtain a trade license.


Time to         6 days                                      Cost to BDT 5,000 (2,000
complete:                                                complete: governement fee)




39
Export-Import



Nature of Export Procedures (2006)                         Duration (days)      US$ Cost


Documents preparation                                             24              200


Inland transportation and handling                                3               150


Customs clearance and technical control                           4               125


Ports and terminal handling                                       4               427


Totals:                                                           35              902


Nature of Import Procedures (2006)                         Duration (days)      US$ Cost


Documents preparation                                             36              300


Customs clearance and technical control                           9               150


Ports and terminal handling                                       10              587


Inland transportation and handling                                2               250


Totals:                                                           57             1,287


Import documents                          Export documents


Bill of lading                            Bill of lading


Cargo manifest                            Certificate of origin


Certificate of origin                     Commercial invoice


Collection order                          Customs export declaration form


Commercial invoice                        Export permit or licenses


Customs cargo release form                Packing list


Customs import declaration form           Pre-shipment inspection clean report of findings




40
Customs transit document


Equipment interchange receipt


Import license


Packing list


Pre-shipment inspection clean report of findings


Ship arrival notice


Stowage plan


Technical standard/health certificate


Terminal charges receipt




Registering Property

Procedure 1*.    Verify the record of rights from the Land Office (also known as Land Revenue
                 Office)


Time to          15 - 60           Cost to BDT 2,000
complete:        days           complete:


Procedure 2*.    Obtain a copy of the 1913 cadastral survey from the land records office


Time to          7 days            Cost to BDT 2000
complete:                       complete:


Procedure 3*.    Obtain Permission from the RAJUK to transfer ownership of the property


Time to          60 days           Cost to BDT 3,500
complete:                       complete:


Procedure 4.     Obtain the non-encumbrance certificate from the relevant Sub-registry office


Time to          2-3 days          Cost to BDT 500-700
complete:                       complete:


Procedure 5.     Prepare deed of transfer and pay stamp duty


Time to          1 day             Cost to 5% of property value (Stamp duty)
complete:                       complete:




41
Procedure 6.    Pay capital gains tax, registration fee, VAT and other taxes at a designated bank


Time to         1 day             Cost to Capital Gains Tax (5%)+ VAT (1.5%) + local
complete:                      complete: government tax (2%) + registration fee (2.5%)


Procedure 7*.   Apply for registration at the relevant Sub-registry


Time to         180-540           Cost to Already paid in Procedure 9
complete:       days           complete:


Procedure 8*.   Register the change in ownership at the Land Revenue Office


Time to         45 - 60           Cost to BDT 5,000
complete:       days           complete:




42

				
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