Tea Exchange Bharath Limited – Outline of a Study Proposal for establishment of the exchange and meeting the various objectives stated therein Background: The TEA EXCHNAGE BHARATH LIMITED was incorporated under the Companies Act 1956 on the 23rd of March 2006. The company has obtained the commencement of business certificate on the 31st of May 2006 to fulfill the wide objects and to give a boost to the economy of the Tea Market. Presently, the Company is having its registered office at # 1, Shreeji Complex, Gray’s Hill Road, Coonoor, The Nilgiris, Tamil Nadu and corporate office at 608-609, Vaibhav Cine Multiplex (INOX), Vaishali Nagar, Jaipur, Rajasthan. Further, the company proposes to open its marketing offices / Tea Lab in all states across all the states of India to boost its business. The Company’s promoters are in Tea trading business since early 1985. They have started the full phase business operations from Coonoor Tamil Nadu as a commission agent of Tea and formed a company in the name and style of “The Vinayaka Tea Company." At # 01, Shreeji Complex, Gray's Hill Road Coonoor, Tamil Nadu. The business has been running successfully and the business turnover was about Rs 200 crores in the period 2007 – 08. The company has also successfully delivered the various products of tea to wholesale internal buyers in bulk quantity across all the states in India The business operations of Tea Exchange Bharath Limited is yet to commence. The objectives of the company would be the following: • Establishment of a common platform for tea sellers and wholesale buyers across India using an e-auction solution • Build a brand awareness for its own tea unit • Set up an educational institute with Tea as the main subject that would be covered at the institute • Build a global research and development centre in the field of Tea • Broadcast a Tea TV channel • Open marketing offices and Tea testing laboratpories across all stated of India • To establish an organization called “OTTEC” (Organization of Tea Traders of Exporting Countries). Scope and Objectives of the Study: The scope of work is to work closely with the senior executives of Tea Exchange Bharath Limited to help them realize their objectives. In the process, the outcome will be in terms of a report or a suggested business plan. The report shall detail the feasibility of each of the objectives mentioned above, the issues with each of the objectives as well as prioritize the objectives in terms of importance as well as implementability. The report shall also try and provide for timeline for the implementation schedule. Methodology: The study team will conduct detailed discussions with various officials of Tea Exchaneg Bharath Limited as well as other related players in the market for arriving at the required information to be able to generate answers to the objectives mentioned above. The team will analyze all secondary sources of data and information and synthesize all the information thus obtained. Tea Exchange Bharath Limited is also expected to provide the required data to conduct the study and should arrange for all the necessary meetings with concerned executives for any clarifications. Expected output from the study: The expected output from this exercise is as follows: 1. A draft report containing the teams’ analysis and recommendations to the issues listed above based on the information and conclusions obtained through the process of engagement with Tea Exchange Bharath Limited executives at various levels as well as analysis of data from secondary sources. Based on this draft report, we expect to have detailed discussions with the Tea Exchange Bharath Limited executives about the feasibility of the recommendations made in the draft report. 2. Submit our final report incorporating the final set of agreed recommendations to Tea Exchange Bharath Limited. Time Period: The project is expected to take 90 days to complete, subject to the availability of the information (in terms of the discussions with Tea Exchange Bharath Limited executives) from Tea Exchange Bharath Limited. Any delay in obtaining the information could lead to a longer time period for the project being completed. The project will start upon receipt of the award letter from Tea Exchange Bharath Limited. Faculty Team: The faculty team shall consist of Professors Sankarshan Basu, V. Ranganathan and Trilochan Sastry of the Indian Institute of Management, Bangalore. Commercials: • The professional fee payable to faculty for the project will be Rs. 18, 00, 000/-. Service tax shall be as applicable. • All incidental expenditures in connection with travel and stay related to work on this project shall be reimbursed by Tea Exchange Bharath Limited on an actual basis. It is expected that the team will have to visit Jaipur a couple of times, the company’s offices in Coonoor as well as to the different centres of Tea auction at present. • Tea Exchange Bharath Limited will also pay an amount equal to Rs. 75,000/- towards research assistance. • The payment schedule shall is as follows: o 50% along with the award letter from Tea exchange Bharath Limited. o The balance 50% shall be payble on submission of the final report to Tea Exchange Bharath Limited. • All payments need to be made in favour of “Indian Institute of Management Bangalore”.
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