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GOKHALE EDUCATION SOCIETY·S

SHRI BHAUSAHEB VARTAK ARTS, COMMERCE & SCIENCE COLLEGE

NAACB+ &9001:2000

Students

1. Nishit Gandhi

2. Mandar Karmarkar

3. Ankita Lad

4. Meghna Padwal

5. Ankit Patkar

6. Vaishali Sawant

7. Amey Vartak

Roll No.

09

17

1824

30

36

42

Faculty Name - Mr. AMEYA GHATGE

Subject Name - INTERNATIONAL BUSINESS

Project Name - KARVARS LTD.

(Globalisation of existing business)

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KARVARS

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INTRODUCTION -

The inception of Karvars Ltd. Took place way back in early nineties when two childhood

friends, Mr. Amey Vartak and Mr. Mandar Karmarkar left their high profile jobs with the

Birla group to set up Karvars Ltd., a cosmetic manufacturing unit in Kolkata in 1991. It was

An extremely bold step in the early nineties when the Indian FMCG market was still

dominated by multinationals. Several such companies headquartered in Kolkata wereconsidering shifting out of West Bengal due to labour unrest and political problems.

But against all odds with a vission of using modern manufacturing techniques for creating

winning brands the company was started with a meager amount of Rs. 20000.A dream of reaching out to the indian middle class; a target audience whom they thought will have

increasing potential for consumption, the company started manufacturing soap under the

brand name of Parx from a small factory in Kolkata.

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The introduction of new brands continued and the distribution network of the

company was extended. In 2003, Karvar Ltd. Became a Public Limited Company.

The company was incorporated with a authorized capital of Rs. 100 crore. In 2003

Company made a public issue of Rs. 60 crore, 6 crore equity shares of Rs. 10 each.

In 2009 we singed famous Indian Cricketer Sachin Tendulkar as our Brand Ambassador.

It was very good step as Cricket is the most popular sport in India and Sachin Tendulkar

is Indian Cricket Legend. This will help us to promote our product more effectively and

further increase our market share.

Sachin Tendulkar ² Brand Ambassador of Karvars Ltd.

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OUR VISION -

Making people healthy and beautiful, naturally.

OUR MISSION ²

. To contribute whole heartedly towards the environment and societyintegrating all our stakeholders into the Emami family.

. To make Emami synonymous with natural beauty and health in the consumers mind.

. To effectively manage talents by building a learning organization.

We would strive

. To be a part of every household in the country.

. To be a major player in every product category we venture into.

. To be one of the most respected marketer in the country.

. To be recognized as a global brand.

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COMPANY·S CORE VALUES ²

. Commitment & Loyalty to institutional values and principles.

. Integrity.

. Customer Orientation.

. Leadership and Innovation.

. Attention to detail.

. Teamwork and Team Environment.

. Simple living, High thinking.

. Social Responsibility.

. Environmental Safety.

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BOARD OF DIRECTORS ²

. Mr. Amey .J .Vartak

. Mr. Mandar .M. Karmarkar

. Mr. Nishit .P. Gandhi

. Mr. Ankit .K. Patkar

. Miss. Ankita .S. Lad

. Miss. Vaishali .M. Sawant

. Miss. Meghna .R. Padwal

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SALES and DISTRIBUTION ²

Karvars Ltd. Covers all the states with 29 depots across India and enjoys a wide

distribution network comprising 2500 + distributors and a direct coverage of

4.15 lacs outlets. To felicitate this distribution strength, Karvars Lid. Has 1200 +

strong and motivated Sales Force including both direct & indirect manpower

operating in the market.

MODERN TRADE -

With the change of scenario in retail market the Company has drawn an

extensive coverage plan for targeting customers in modern format outletsEffectively selling in the market directly or through exclusive distributors.

A specialized Sales Force has also been developed to service these ever growing

Modern Retail outlets.

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COUNTRY - BRAZIL

. Economy

. Politics

. Demographics

. Transport

. Currency

. Law

. Foreign Relations

. Competition

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FOREIGN DIRECT INVESTMENT IN BRAZIL

As the Eighth ± largest economy in the world in Gross Domestic Product (GDP),

Brazil is a preferred destination for foreign direct invesments (FDI). Brazil has strengths

in tecommunication, information technology and other significant areas such as auto

components, chemicals, apparels, pharmaceuticals. Till 2008- 09, services sector

attracted 54.93 per cent of Brazil¶s total FDI as cumulative basis. The size of themiddle - class population stands at 140 million and represents a growing consumer

market.

Brazil¶s recently liberalised FDI policy (2005) allows upto 100% FDI stake in ventures.

Industrial policy reforms have substantially reduced industrial licensing requirements,removed restrictions on expansion and facilitated easy access to foreign technology

and Foreign Direct Investment (FDI). In FMCG sector 100% Foreign Direct Investment

(FDI) is allowed.

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PRODUCT - PARX

parx´ A little price for a priceless beautyµ

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MODE OF ENTRY

We have been exporting our brand Parx to Brazil from last four years. At that time we enter

Into an agrrement with Golden Cross Pvt. Ltd. To distribute our product. The agreement was

only for four years. We entered into a joint venture with Natura Ltd. It is a Brazilian FMCGcompany. Joint venture means any form of association which implies collaboration for more

Than a transitory period. We entered into a joint venture by purchasing 30% stake in Natura

Ltd. For this joint venture we spent around Rs. 90 crores from reserves of the company.

We have allready signed famous Brazilian football player Kaka as our Brand Ambassador.

Football is the most popular sport in Brazil and Kaka is very popular sports personality inBrazil. This will help us to promote our product more effectively and increase our market

share.

KAKA ² Brand Ambassador of Karvars Ltd. In Brazil

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NATURA LTD.

natura

It is a Brazilian FMCG company. It was established in 1980. It was started by RobertoGilardino and Luis dos santos. Today both are chairman and managing director in Natura

Ltd. Respectively. Natura Ltd. First launched Aquarela shampoo in 1981. It became very

popular. Then in 1987 Natura Ltd. Launched Natura Chronos Talc. It was also very

successful. Natura Ltd. Has four manufacturing units. After entering into joint venture

with Natura Ltd. We will start the production of Parx at their manufacturing unit in Brasilia.

Natura Ltd. Is a well known and a trusted brand in Brazil. To felicitate this distributionStrength, Natura Ltd. Has 2500 + strong and motivated Sales Force including both direct &

indirect manpower operating in the market.

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