Global Country Study Report

On
‘Chemical Industry of New Zealand’
w.r.t Business Opportunities for
Gujarat and Tamil Nadu

Submitted By: Group 6

Submitted To: TMIMS (GTU)
 Members of Group 5
SRN En. No. Name of Student
SRN201783604197 168360592039 Mansatta Om Dineshkumar
SRN201783604032 168360592003 Ansari Anwar Abidhussain
SRN201783604077 168360592011 Bhojani Tejas Vinodbhai
SRN201783604166 168360592022 Guwalani Riya Kamalkumar
SRN201783604177 168360592027 Joshi Sohil Vinod
SRN201783604226 168360592049 Rangwani Mamta Jaikishan
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 Overview of New Zealand
Location Demographics Languages
• Country of islands • Population - 4.7 • Official Language
in south western Million – English, Maori
Pacific Ocean • 127th position in • Other Languages
• Situated at 1000 World – New Zealand
kms south of • 0.06% population Sign, Cook Islands
pacific islands of world Maori, Niue an ,
and 1500 kms Tokelauan
east of Australia.

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 Overview of New Zealand
Economics Political System

• 53rd largest country in the • Democratic country.

GDP. • Single house system of
• 68th largest country in PPP. parliament.
• Service sector 63% • 75 to 80% of New
• Manufacturing Sector Zealanders votes in general
16.5% election.
• Primary Sector 6.5%.
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 Overview of New Zealand

No religion
Undeclared 43%
4%
Exchange Rate Islam
2%
Year NZD INR
Anglican
2013 1 51.37 11%
Catholic
2014 1 49.53 12%
2015 1 45.07 Buddhism Christianity
2% 15%
2016 1 48.12 Other
religion
2017 1 46.37 Hinduism 2% 1%
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 List of Industries

Electricity,
Agriculture & Fishing &
Construction Gas, Water Manufacturing
Forestry Mining
services

Public
Financial & Rental, Hiring
Administration
Tourism Transport Insurance & Real Estate
, Defense &
Services services
Safety

Health care & Arts,

Education &
Social Recreation &
Training
Assistance other Services

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 New Zealand Trade (2016)
Exports $ 70.9billion
Export Goods & Services Dairy products, Tourism, Meat, Wool and wood products &
Education
Main Export Partners Australia-18.33%, China-17.07%, European Union-12.41%,
US-11.71% & Japan-5.50%
Imports $ 67.2 billion
Import Goods & Machinery and equipment, Vehicles and Aircraft,
Services Commercial services ,Tourism, Petroleum & Electronics

Main Import Partners European Union-18%, Australia-16.82%, China-16.07%, US-

11.76% & Japan-5.06%
Tolani Motwane Institute of Management Studies Source: StatsNZ 7
12/17/2019
 Overview of Chemical Industry
in Gujarat
 Gujarat is known as hub of chemical industry in India.
 Just to mention this Gujarat has share of 62% in
production of petrochemicals of India.
 While Gujarat also contributes its 55% share in other
chemical products of India & 18% share in chemical
products exports of India.

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 Contribution of Chemical Industry
in India’s GDP
Particulars Contribution
Chemical Industry’s Contribution in India GDP 2.11%

Indian Chemical Industry’s Contribution in Global Market of 2.5%

Chemical
Chemical Industry’s contribution in India’s Export 6%

Chemical Industry generated business in 2014 (in US Dollars) 118 Billion

Growth Rate of chemical industry 14%

12/17/2019 Source: Global Accessibility Tolani Motwane Institute of Management Studies 9
 Major Players of Chemical Industry
in Gujarat

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 Special Benefits for Chemical
Industry in Gujarat

PCPIR Region.

Good Connectivity with PCPIR Region.

100% FDI is Permissible.

Three SCZ (Special Chemical Zones)

R&D and Centre of Excellence.

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 Justification for Selection of
Industry
 The imports of chemicals by New Zealand from India had
increased which was 67,977 thousand US dollars in 2011
increased to 84,887 thousand US dollars by the end of
2016.
 India contributes major share in exports of chemicals to
New Zealand from South-Asian region.
 In India Gujarat is considered as a preferred state for
chemical industries as the government supports them in
providing world class infrastructure, skilled workforce
and raw materials.
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 STEEPLED Analysis: Social Factors
Social Factors New Zealand Gujarat
Risk factor They are Risk takers. They are Risk takers

Punctuality Strictly follows schedules. People of Gujarat tends to be late &

start the work late.
Gender Equality First country to grant women voting Gender Equality may not seen to
rights. exists but it exits below the surface.
Religion Not over-religious, main festivals are Religion affects in unique way, main
Christmas & Easter. festivals are Navratri & Diwali.
Emotion Display of affection is acceptable . Public affections with the same
gender, brothers or sisters are
normal.
Colours More acceptable are Red, Blue & More acceptable are Saffron,
White. White & Green
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 STEEPLED Analysis: Technological Factors
New Zealand Gujarat
Digital Technologies: The ‘2015 Business i-create: Cisco System Ltd. to develop centre
Growth Agenda has main focus on digital of excellence in Gujarat.
technologies.
R & D: The spending on R&D as percentage R & D: Specialized R&D institution for over 35
of GDP has increase but is still low compared applied research & government assistance is
to other countries. also provided.
ICT: New Zealand firms are average & slow GIS: Main focus is MSME, student, faculties
adapter of ICT. or individual with passion of innovation.

Innovation Performance: NZ ranks 21st out of GIFT City: A smart city with many unique
127 economies in Innovation performance. features.

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 STEEPLED Analysis:
Economic Factors
New Zealand (2016) Gujarat (2015-16)
GDP 181 Billions US Dollar 158 Billions US Dollar

GDP Growth 3% 6.70%

Unemployment 5.2% 0.9%

Monetary Policy Regulated by Reserve Bank of NZ. Regulated by RBI.

Fiscal Policy To improve economic health of the To improve the growth

nation & to provide services on performance of economy &
sustained basis. ensuring social justice to
people of India.
Source - Country Economy, IBEF, TOI
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 STEEPLED Analysis: Ecological Factors
New Zealand Gujarat
Eco-Labelling Trust: The programme is Eco-Labelling Scheme: Ministry of
started by New Zealand Government which Environment & Forest introduced this
is known as ECNZ. scheme in 1991 based on some criteria.
Water Management: New requirements are Waste Water Management: All industrial
been introduced by government to improve units are required to install ETP.
the quality of water in rivers & lakes.
Sustainable Development: In September Gujarat Pollution Control Board: The
2015, UN signed upto 17 Sustainable board is managing different programs &
Developments Goals (SDGs) which is known also had introduced many schemes.
as Agenda 2030.
Green Chemistry: Principles of green Swachh Bharat Mission: Many activities
chemistry is agreed by NZ since 2001. are undertaken for cleanliness of area &
reuse of resources.
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 STEEPLED Analysis:
Political Factors
New Zealand Gujarat
Political Parties Ruling Party is National Party & Ruling Party is BJP &
Opponent Party is Labour Party. Opponent Party is National
Congress.
Political Stability Strong Strong
Ease of Doing NZ is ranked 1st in terms of ease of Gujarat is ranked 3rd in
Business doing business in world by World terms of ease of doing
Bank. business in India.
Best in Doing NZ is ranked 2nd in terms of best Gujarat is ranked 3rd in
Business country for doing business in terms of best state for
world by Forbes Magazine. doing business in India.

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 STEEPLED Analysis: Legal Factors
New Zealand Gujarat
Constitution NZ does not have written The Indian Constitution is
constitution like other largest constitution in the world
countries.
Corporate Tax 28% 25 % to 35%
GST Mostly 15% Mostly 18%

Law pertaining to Hazardous substances & New Environment Management,

Chemicals organism Act, New Zealand Specific Chemical Category,
Chemical Regulation Chemical Safety & Emergency,
Compliance, New Zealand Other relevant to chemical
Inventory of Chemical, Health & management.
Safety Work Act, NZCCID, NZIoC.
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 STEEPLED Analysis: Ethical Factors
New Zealand Gujarat
Corporate Social Responsibility: By Corporate Social Responsibility for
statistics from OECD on NZ it known that chemicals: The units that are produced are
New Zealand is not performing very well. adhering to the guidelines of state
pollution control board.
Other Ethical factors: Sustainability score Social Audit: The companies that does
card, Worker and customer safety, Product social audit in Gujarat are:
stewardship, Security of the product and Hindalco.
customer accreditation, Supporting Tata chemicals.
communities, Site environmental
management and compliance, Ethical
business practices and good governance &
Environmental data.

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 STEEPLED Analysis: Demographic Factors
New Zealand Gujarat
Population 4,717,280 67,600,992 (2017)
Birth rate 13.4% (2014) 20.8% (2013)
Death Rate 7.3% (2014) 6.8% (2013)
Fertility Rate 2.03 live births per woman 2.3 live births per woman.
Life Expectancy Male: 79.1 years Male: 66 years
Female: 83.3 years Female: 70.5 years
Age Structure - 0-14 years 19.76% 27.71%
15-24 years 13.56% 17.99%
25-54 years 40.05% 40.91%
55-64 years 11.7% 7.3%
65 years and above 14.94% 6.09%
12/17/2019 Source: Index
Mundi Tolani Motwane Institute of Management Studies 20
 SWOT Analysis of New Zealand
Strengths Weakness
• Stable Political System • High Volatility of price of raw material.
• High Literacy Rate • Research & Development
• Socially progressive Culture • Gaps in policy, design & Training
• 60% electricity is generated from • Underutilization of capacity
renewable energy source
Opportunities
New Zealand Threats
• Barriers of new entry • Possibility of future multinational
• Reduce Carbon Emission competition
• Developing economy & increase in • Regulatory action of government
demand for agriculture • Currency fluctuation
• Adopting new manufacturing techniques

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 SWOT Analysis of Gujarat
Strengths Weakness
• PCPIR Region • Low availability of skilled force
• Infrastructure Facility • Lack of adequate raw material
• Environment friendly practices for ETP • Low investment in R & D
• Strong Government Support • Scale of production

Opportunities
Gujarat Threats
• Huge Untapped Potential • Government rules & regulation
• Development of LNG terminals • Lower China’s production cost
• Government scheme PCPIR • Global competition
• Opportunity in Reverse SEZ • Industries product price

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 Overview of Tamil Nadu
Demographics Language Natural Resources

• Population - 77.8 • Main language - • The state accounts

million Tamil for country’s
• Growth Rate - • Other Languages - • 81% Lignite
1.56% English, Telugu, • 75% Vermiculite
• Literacy - 80.33% Kannada, • 69% Dunite
• Sex ratio - 995 Malayalam, Urdu
• 59% Garnet
& Marathi.
• 52%
Molybdenum
• 30% Titanium
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 Connectivity of Gujarat & TN

Roadway Railway Airway Seaway

• 1972 kms • 1715 kms • 1466 kms • 3070 kms
• 32-36 Hrs • 31-33 Hrs • 2.5 Hrs • A week
• Via NH 48 or • 55-57 • Fares- 3000-
50 kms/Hr Avg 6000 Rs
Speed

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 Major Industries in Tamil Nadu

Textiles Electronics Automotive

Leather Fireworks

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 Overview of Chemical Industry in
Tamil Nadu
 Three Major Clusters.
 Facility to manufacture variety of products.
 Major Exporter.
 2500 Chemical factories.
 Tamil Nadu accounts for 7% of total chemical production
of India.
 Growth rate was 25% from 2008 to 2012.

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 Major Players of Chemical Industry in
Tamil Nadu

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 Special Benefits for Chemical
Industry in TN by Government

Stamp Duty Concession

Environmental Protection Infrastructure Subsidy

Capital Subsidy

Electricity Tax Exemption

Mega Project Incentives

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 SWOT Analysis of
Chemical Industry In TN
Strength Weakness
• Diverse Manufacturing Base • PCPIR at development stage
• Easy Availability of Skilled Manpower • Less Government support
• PCPIR Region Announcement • Western states are more preferred
• Strong Connectivity • Low Investment in R&D
• Cheap Hydroelectricity Power
Tamil Nadu Threats
Opportunities
• SEZ & Reverse SEZ • 100% FDI is allowed
• Government Support in Tech centers. • Water bodies are adversely affected
• Other developed sectors such as • Cost of raw material of China is low.
automotive, firecracker & agriculture

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 Bilateral Trade Opportunities
Opportunity for State

NZ & NZ & Tamil

Gujarat Nadu
New Zealand can establish trade New Zealand can establish trade
relation with Gujarat for products relation with Tamil Nadu for
such as chemical, textiles, cement, products such as automotive ,
electrical, engineering, soda ash & leather, textiles, electronics, &
vegetable oil as these are main fireworks.
industries of Gujarat
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 Bilateral Trade Opportunities
Opportunity for New Zealand

NZ & NZ & Tamil

Gujarat Nadu
Can take advantages of various Can take advantages of
opportunities for trade of various opportunities for trade
chemicals with Gujarat due to of chemicals with Tamil Nadu
presence of world class players, due to factors such variety of
PCPIR, government support, chemicals, 3 major chemical
robust demand & many more cluster, rise in demand &
factors. many more.
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 Bilateral Trade Opportunities
Government Approach

NZ & NZ & Tamil

Gujarat Nadu

• FDI Policy • FDI policy

• Three SCZ • Vision 2023
• R&D & Centre of Excellence • High Power Infrastructure
Committee

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 Bilateral Trade Opportunities
Import & Export Connectivity

NZ & NZ & Tamil

Gujarat Nadu

40 ports( 1 Major & 12 Minor), 23 ports ( 3 Major & 20 Minor),

One International Airport Four International Airport

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 Bilateral Trade Opportunities
Business Ranking

NZ & NZ & Tamil

Gujarat Nadu

Gujarat ranks 3rd in terms of ease TN ranks 18th in terms of ease

of doing business & ranks 1st for of doing business & ranks 3rd
fresh investment in India. for fresh investment in India.

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 Tolani Motwane Institute of Management
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Studies