APPENDIX 1: STK’S PRODUCT RANGE

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APPENDIX 1: STK’S PRODUCT RANGE

STK has a huge product range. Altogether, they produce 800 different types of stamping ink which meet diverse requirements. There are ones who are fast or slow drying, waterproof or washable ones, lightfast ones, temperature-fast ones, weatherproof ones, and many more.

Generally, the products can be divided into nine different categories, namely stamp pads and office stamping inks, textile and leather stamping inks, special stamping inks for metals and plastics, stamping inks for food and food packaging, marking inks, special stamp pads, etching inks and accessories, luminous stamping ink, and diverse stamping inks and cleaning agents.

The stamp pads and office stamping inks are divided into products containing oil and those without oil. The product range without oil comprises stamp pads and endorsing ink, security stamping of documents (e.g. cheques or bonds) and scanner-proof ink, for e.g. bank receipts, which cannot be read by a scanner and which thus causes no interferences. Furthermore, ink for metal stamps like stamping machines and stamping ink especially for children’s games (with bright, vivid, and non-toxic colours) belong to this category.

Products with oil involve stamping ink for metal hand stamps and numbering machines.

Scanner-proof ink with oil is similar to the one without oil but it is pigment-based for metal stamps. Another type is stamping ink for mikroporous stamps which can be used for initial or re-inking of mikroporous stamps and for ink rollers of some marking machines.

The colour for franking machines is suitable for inking the ink rollers from the outside and according to the regulations of the German Federal Post Office.

The textile and leather stamping inks include inks for waterproof stamping textiles with mainly natural fibres like cotton, silk, and rayon, as well as for leather, suiting cloth, and woollen blankets.

Further, inks that can be washed out are offered.

Special stamping inks for metals and plastics can be used either for photopolymer, rubber, and metal stamps or for machine stamping by automatic marking machines. Materials which can be stamped by these inks are diverse, including varnished woods and tin-plate, unvarnished metals, metal foils, rubber, and various plastics. Other special inks are for stamping numbering machines, x-ray films, reverses of photographs, food packaging, or for aniline printing processes of untreated and varnished metal sheets and woods of lighter

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colours. Furthermore, parchment, bicycle tubes, sheet iron, several types of plastic (foils), glass, enamel, china, ceramics, foam, and high gloss brochures can be stamped. Some of them are high-temperature (or oils, petrol, or alcohol) resistant, others are weather- and waterproof, or light resistant.

Examples for stamping inks for food and food packaging comprise stamping ink for inspectors of butcher’s meat, cheese and egg stamping ink. Additionally, STK offers inks for marking food packaging such as plastic bags, yoghurt cup lids, glass bottles, and milk cartons.

Products which can be marked with stamping ink include absorbent bases such as untreated wood or paper sacks, and fast drying weatherproof and fast-to-light inks especially for flexo-print machines to mark cartons, raw wood, and jute sacks. For non- absorbent bases like cement, iron barrels, varnished and galvanized cans, there are inks available as well.

Since stamp pads often desiccate, STK developed one that re-inks itself, and which is usable with rubber and photopolymer stamps on light or dark metals, plastics, rubbers, etc. These are part of the special stamp pads.

Etching inks and accessories include steel etching ink for steel products made of carbon steel used to make tools (razor blades, saw- blades, tools, machine parts). Here the stamp impressions turn black and do not smear. Another product of this type is bronze oxide which is used in the bronzing industry to brown iron, steel, brass, and copper.

Luminous stamping inks are mainly used on human skin (but also cardboards, paper, plastics, and metals), which are invisible in daylight but flash up under UV light. It is employed at entry checks in discotheques and for controlling markings on packaging.

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Finally, diverse stamping inks and cleaning agents are welding electrode stamping ink (which are up to 600° C heat-resistant inks for marking welding electrodes), and stamping inks for fire hoses and other rubber articles, price stamping ink (for all kinds of sales packaging). Further, there exists ink for stamping paper packaging materials which is used in the medical

sector because it can be steam-sterilized and sterilized by gamma rays. Detergents for cleaning stamps are also available.

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APPENDIX 2: THE CURRENT STATE OF STK’S INTERNAL CHARACTERISTICS

To explore STK’s internal characteristics, the questionnaire proposed by Mühlbacher et al.

(1999:305-309) was sent to and filled out by the company manager, Sabine Kupietz.

BUSINESS BACKGROUND

Please respond to all of the questions. Mark the answer that corresponds to your response.

1. Which of the following best describes your product line?

A. Products

(1) Components / raw materials (4) Consumer products (2) Industrial products (5) Agricultural goods (3) Commercial products

B. Services

(1) Health care (4) Consulting

(2) Education (5) Publishing / printing

(3) Engineering (6) Computer

C. Intermediaries (e.g. export trading company, export marketing company)

2. Approximately how long has your firm been in business?

(a) Less than 2 years (c) 6 to 10 years

(b) 2 to 5 years (d) Over 10 years

3. Approximately how many full time employees does your company have?

(a) Under 20 (c) 50 to 99

(b) 20 to 49 (d) 100 or more

4. Approximately what were your gross sales last year?

(a) Under 1 million (c) 6 to 10 million

(b) 1 to 5 million (d) Over 11 million

5. The growth rate of your company sales over the past 3 years has been:

(a) Less than satisfactory (did not take advantage of potential).

(b) Satisfactory (moderate success).

(c) Very satisfactory (used full potential).

6. Which of the following best describes your sales and distribution activity?

(a) We have our own sales / distribution organization.

(b) We do not have our own sales / distribution organization.

7. Which of the following best describes your scope of marketing?

(a) We sell primarily to a few customers – locally.

(b) We sell to a few customers – locally and internationally.

(c) We sell to a large customer base – primarily locally.

(d) We sell to a large customer base – locally and internationally.

8. Currently, your senior management is likely to:

(a) Maximize profitability rather than sales growth.

(b) Be moderately interested in sales growth.

(c) Be highly interested in sales growth.

→

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XXI

9. Over the next 3 to 5 years, your management is likely to:

(a) Avoid new business ventures.

(b) Cultivate new business opportunities selectively.

(c) Develop new business opportunities aggressively.

10. Which of the following best describes your firm:

(a) Currently not exporting.

(b) Exporting by selling to middlemen in Germany.

(c) Exporting directly to foreign agents.

(d) Exporting directly to foreign distributors.

(e) Exporting directly to foreign .customers.

11. Access to external funds for expansion purposes or working capital has:

(a) Not been a problem at all.

(b) Been a moderate problem.

(c) Been a serious problem.

12. Currently, alliances and cooperation with other companies are:

(a) Not existing.

(b) Existing but not very valuable.

(c) Existing and very valuable.

13. Your staff’s knowledge of foreign cultures and business customs is:

(a) Adequate for most markets.

(b) Adequate for selected markets.

(c) Inadequate for any market.

14. In terms of past exposure to international business, your staff has:

(a) No international transaction experience.

(b) Limited international transaction experience.

(c) Extensive international transaction experience.

15. Members of your management:

(a) Are fluent in the language and culture of India.

(b) Have limited knowledge of language and culture of India.

(c) Have no knowledge of language and culture of India.

16. Resources for foreign market development can be freed:

(a) Without endangering home market position or long-term prospects.

(b) Only at the risk of sacrificing domestic market position.

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MOTIVATION FOR GOING INTERNATIONAL

1. Dispose of excess products / utilize excess production capacity.

(a) Strongly agree (d) Disagree

(b) Agree (e) Strongly disagree

(c) Unknown / not sure

2. Export by filling unsolicited orders only.

3. Benefit solely by stabilizing seasonal market fluctuations.

4. Contribute to company’s general long-term expansion.

5. Enhance firm’s competitiveness by acquiring new markets.

6. Extend the valuable life cycle of existing products.

7. Supplement domestic sales with occasional export sales.

8. Reduce risks by selling to diverse markets.

9. Exploit the firm’s unique technology and know-how.

10. Improve overall return on investment.

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MANAGEMENT COMMITMENT

1. Top management has reservations about entering international markets.

2. Exporting will be limited to sales to middlemen in Germany.

3. Adequate funds will be set aside to develop foreign markets.

4. Management will spend at least 10% of their time for international expansion.

5. The product is unique, differentiated, or represents advanced technology.

6. The production process is exclusive to your firm.

7. Company research and development level exceeds industry average.

8. Price is competitive in the domestic market.

9. Product has sufficient advantages over competing products.

10. Product requires special German license to export.

11. Product requires special storage (e.g. controlled temperature).

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APPENDIX 3: THE QUESTIONNAIRE

The development of the questionnaire

The setting up of the questionnaire was following Blythe (2001) suggestions for writing survey questions. These are:

- “Questions need to be short, simple, and unambiguous.

- Questions should not be leading – in other words, they should not direct the respondent towards a particular answer.

- The questionnaire’s introduction should be persuasive, and must qualify the respondent as belonging in the sample.

- The answers must be capable of analysis, preferably by computer.

- Questions must be necessary and relevant to the study.

- The respondent must have the information needed to answer the question.

- Respondents must be willing to answer the questions. If the questions get too personal, people will not respond.

- Questions must be specific. Avoid asking two questions at once. […]

- Hypothetical questions should be avoided. […]” (2001:85)

One hypothetical question is used, though, which is the one of whether the respondents think that problems in business negotiations were due to cultural factors. Of course, the answers to this question cannot be seen as representative but still they provide an insight of whether culture can be seen as influencing negotiations by any means - or at least whether the respondents felt misunderstood.

Before the questionnaire was sent to the potential respondents, it was piloted on other business students in order to rewrite the questions if they were difficult to understand.

The cover letter

___________________________________________________________________________

Sehr geehrte Damen und Herren,

Mein Name ist Astrid Seehafer, ich studiere an der Rijksuniversiteit Groningen in den Niederlanden und schreibe gerade meine Masterarbeit. Dabei beschäftige ich mich u.a. mit den Exportmöglichkeiten deutscher Klein- und Mittelbetriebe nach Indien. Um einen generellen Eindruck von möglichen Problemen und wichtigen Aspekten diesbezüglich zu bekommen, habe ich einen Fragebogen (s.

Anhang) entwickelt. Wenn Sie selbst bereits nach Indien exportieren sollten, wäre ich Ihnen sehr dankbar, wenn Sie diesen ausfüllen und an mich zurückschicken würden. Natürlich werde ich Ihre Angaben vertraulich behandeln und lediglich eine generelle Auswertung in meine Arbeit einbringen, die nicht auf Ihre Firma zurückzuführen ist.

Mit freundlichen Grüßen, Astrid Seehafer

___________________________________________________________________________

The questionnaire

Please see the following pages for the final questionnaire.

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Fragebogen

Name der Firma: Datum:

Haupttätigkeitsgebiet:

___________________________________________________________________________

• In welche indischen Staaten/Regionen exportieren Sie?

⁪ Andaman und Nicobar Inseln ⁪ Lakshadweep

⁪ Andhra Pradesh ⁪ Madhya Pradesh

⁪ Arunachal Pradesh ⁪ Maharashtra

⁪ Assam ⁪ Manipar

⁪ Bihar ⁪ Meghalaya

⁪ Chandigarh ⁪ Mizoram

⁪ Chhattisgarh ⁪ Negaland

⁪ Dadra und Nagar Haveli ⁪ Orissa

⁪ Daman und Diu ⁪ Pondicherry

⁪ Delhi ⁪ Punjab

⁪ Goa ⁪ Rajasthan

⁪ Gujarat ⁪ Sikkim

⁪ Haryana ⁪ Tamil Nadu

⁪ Himachal Pradesh ⁪ Tripura

⁪ Jammu und Kashmir ⁪ Uttaranchal

⁪ Jharkhand ⁪ Uttar Pradesh

⁪ Karnataka ⁪ West Bengal

⁪ Kerala

• Aus welchen Gründen haben Sie begonnen, nach Indien zu exportieren?

_____________________________________________________________________

• Wie sind Ihre Geschäftsbeziehungen nach Indien entstanden? (z.B. Kontaktaufbau Ihrerseits? Über Messen? Über Marketing? Über Ihren Ruf?)

_____________________________________________________________________

• Als Sie anfingen, nach Indien zu exportieren, hatten Sie irgendwelche spezifischen Probleme dabei?

⁪ Nein, überhaupt nicht.

⁪ Ja, etwas.

⁪ Ja, sehr.

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• Wenn ja, kreuzen Sie doch bitte an, um welche Probleme es sich dabei handelte und als wie gravierend Sie diese Probleme einschätzen:

geringes Problem → → erhebliches Problem

⁪ Politisch O O O O

nähere Erläuterung:___________________________________________________

___________________________________________________________________

⁪ Gesetze im allgemeinen O O O O

___________________________________________________________________

⁪ Importbeschränkungen O O O O

___________________________________________________________________

⁪ Zollabwicklung O O O O

___________________________________________________________________

⁪ Umweltgesetze O O O O

___________________________________________________________________

⁪ Hohe lokale (indische) Konkurrenz

O O O O

___________________________________________________________________

⁪ Hohe lokale (Importe aus anderen Ländern) Konkurrenz

O O O O

nähere Erläuterung (aus welchen Ländern):_________________________________

___________________________________________________________________

⁪ Unterschiedliches Preisniveau O O O O

___________________________________________________________________

⁪ Transport / Logistik O O O O

___________________________________________________________________

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⁪ Verhandlungsprobleme mit dortigen Geschäftskunden / -partnern (z.B. Probleme mit der Zuverlässigkeit auf der indischen Seite; etwa: Termine einzuhalten, keine klaren Ansprechpartner, Probleme mit der Bezahlung)

geringes Problem → → erhebliches Problem

O O O O

___________________________________________________________________

Glauben Sie, dass diese Probleme aus kulturellen Unterschieden resultierten? Wenn ja, in welcher Hinsicht? Wenn nein, was mag sonst der Grund gewesen sein?______

___________________________________________________________________

⁪ Sprachprobleme O O O O

___________________________________________________________________

⁪ Soziale Aspekte (z.B. “buy Indian“, Nicht-Regierungs-Organisationen)

O O O O

___________________________________________________________________

⁪ Welches waren von den genannten (wenn überhaupt) die gravierendsten Probleme, und/oder waren einige nicht genannt?

___________________________________________________________________

• Vor wie vielen Jahren haben Sie begonnen, nach Indien zu exportieren?

⁪ Vor weniger als 1 Jahr.

⁪ 1-5 Jahren.

⁪ Vor mehr als 5 Jahren.

Wenn Sie vor mehr als einem Jahr begonnen haben, nach Indien zu exportieren, wie haben Sie oben genannte Probleme (falls vorhanden) gelöst? (z.B. Mittelspersonen,

„Vermittlungsprovisionen“)_______________________________________________

_____________________________________________________________________

Bestehen einige der Probleme noch immer? Wenn ja, welche?___________________

_____________________________________________________________________

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• Exportieren Sie immer noch nach Indien?

⁪ Nein. → Wieso nicht?____________________________________________

⁪ Ja. → Hat es sich positiv oder negativ entwickelt? Was waren die Gründe?

_______________________________________________________

• Haben Sie Hilfe der deutsch-indischen Handels- oder Wirtschaftskammer in Anspruch genommen? Wenn ja, was waren Ihre Erfahrungen?__________________________________

___________________________________________________________________________

• Sehen Sie Perspektiven, den Export zu steigern? Wenn nein, warum nicht?______________

__________________________________________________________________________

• Haben Sie schon einmal erwogen, in Indien zu produzieren? Wieso haben Sie es (bislang) nicht getan?________________________________________________________________

__________________________________________________________________________

• Gibt es generelle Bedingungen, die ein Exporteur erfüllen muss, um überhaupt nach Indien zu exportieren? Wenn ja, welche?_______________________________________________

__________________________________________________________________________

• Ist Qualität der Produkte für die indische Seite ein wesentlicher Kauffaktor?_____________

__________________________________________________________________________

• Würden Sie heute noch einmal versuchen, nach Indien zu exportieren? Wenn ja, wieso?

Wenn nein, wieso nicht?______________________________________________________

__________________________________________________________________________

___________________________________________________________________________

Ich danke Ihnen sehr herzlich für Ihre Hilfe!!

Mit den Auswertungen soll u.a. versucht werden, Exportmöglichkeiten für deutsche Firmen nach Indien zu erarbeiten.

Bei Interesse an den Ergebnissen dieser Umfrage, geben Sie doch bitte Ihre Email-

Kontaktadresse an.

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APPENDIX 4: INDIA’S DIVERSITY

India is the world’s most diverse country in ethnic, linguistic, and religious terms, and it has extreme social disparities (German Federal Foreign Office, 2002). On the following pages, this is depicted in several maps which can be differentiated into demographic, socio-cultural, and economic maps (all were taken from http://www.mapsofindia.com).

Demographic maps

Figure A4.1: Inhabitants according to state (2002)

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XXX

Figure A4.2: Population density according to state (2001)

Figure A4.3: Cities with more than one million inhabitants (2001)

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XXXI Socio-cultural maps

Figure A4.4: Distribution of Languages (2001)

Figure A4.5: Religions

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XXXII Figure A4.6: Literacy rate (2002)

Economic maps

Figure A4.7: Income per capita according to states (1997/1998)

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XXXIII

Figure A4.8: Level of economic development (2001)

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APPENDIX 5: IMPORTANT FIGURES ON INDIA

Population development:

In 1871, 211.7 million people lived in India, and also in 1921 it was ‘only’ 251.2 million.

During that period, the annual population growth rate was still under 1%. However, then it began to increase, so that in 1961, there were already 439.1 million, in 1991 845.3 million, and in 2003, 1.064 billion inhabitants, which can be seen in Figure A5.1.

Figure A5.1: Population development

(Source: Dyson et al., 2004)

* The number for 2026 and 2051 are the estimates of the World Bank.

Literacy

Figure A5.2: Literacy rates

Progress in literacy rates (according to gender)

0 10 20 30 40 50 60 70 80

1961 1971 1981 1991 2001

Male Female All

(Source: Dyson et al., 2004:132) Population development (in millions)

1027,1 1572

361 213,5

0 400 800 1200 1600 2000

187 1

1881 1891

1901 1911

1921 1931

1941 1951

1961 1971

198 1

1991 2001

2026* 2051*

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XXXV Gross domestic product:

Figure A5.3: GDP development 1950-2003

GDP development 1950-2003

0 5.000 10.000 15.000 20.000 25.000 30.000

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2003

in billions of national currency

(Source: http://www.econstats.com)

Figure A5.4: GDP growth rates

GDP growth rates 1951-2003

-15 -10 -5 0 5 10 15 20 25

195 1

195 5

1959 1963

196 7

197 1

197 5

197 9

1983 198

7 199

1 199

5 199

9 2003

percentage

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XXXVI Industrial production:

Figure A5.5: Industrial production growth rates 1961-2003 Industrial production growth rates 1961-2003

-2,00 0,00 2,00 4,00 6,00 8,00 10,00 12,00 14,00

1961 1965

1969 1973

1977 1981

1985 1989

1993 1997

2001 200

5

(Sources: http://www.econstats.com, http://www.economywatch.com)

Foreign trade

Figure A5.6: Percentage changes in foreign trade

Percentage changes in foreign trade

0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00 40,00

1998 1999 2000 2001 2002 2003 2004 2005

Exports Imports

(Sources: http://www.econstats.com; Ernst & Young India, 2005b)

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XXXVII Figure A5.7: Development of Indian exports

Indian exports

0 500 1000 1500 2000 2500 3000

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2003

billions of national currency

Figure A5.8: Development of Indian imports Indian imports

0 500 1000 1500 2000 2500 3000 3500

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2003

billions of national currency

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XXXVIII Trade between Germany and India

Figure A5.9: Trade between Germany and India

Trade between India and Germany (in billion euro)

3,3

2,8

2,4

2,3

2,1

1,8

1,9

0,7 1,4 2,2 3,4

2,9

2,6

2,5

2,1

0,5 1,3 2,1

0 0,5 1 1,5 2 2,5 3 3,5 4

1980 1990 1997 1998 1999 2000 2001 2002 2003 2004 2005

Indian imports from Germany Indian exports to Germany

(Sources: Deutsche Auslandshandelskammer 2005b; German embassy, 2005)

Figure A5.10: Structure of German exports to India

Structure of German exports to India in 2003 (The five most important product types)

other products 36%

Electrical engineering

8%

Chemicals 8%

Mechatronics 9%

Electronics 9%

Engines 30%

(Source: Deutsche Auslandshandelskammer, 2005b)

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APPENDIX 6: IMPORTANT ECONOMIC LAWS

Indian Contract Act (1872)

The Indian Contract Act was established in 1872 and it regulates the common law principles of contracts, whereby it is oriented at the codes governing the law of contracts in other countries. In that, it is also very similar to the German Contract Act since it specifies, e.g., that a contract is only valid if both parties consent and are legally competent (Ernst & Young India 2005a). Furthermore, sections 182 to 238 of the Act govern principal-agent relations which is important for importers who wish to use an agent or distributor. Mainly it specifies that a premature termination of an agreement with a principal requires a compensation to be paid to the agent unless the agent is guilty of misconduct.

If an importing company to India wishes to use a distributor, it should ensure that he has an office or is located in Delhi. That may increase the chance that policy changes and government procurement notices are received timely. Additionally, it is important to know that marketing subsidiaries of foreign companies are not allowed by Indian law, so that a distributor is the sole distribution possibility. This exclusive agency agreement is thus the most frequent used type of distribution contracts in India (University of Missouri, 1993).

Intellectual property rights protection

Intellectual property covers copyrights, trademarks, confidential information, and patents. In India, the laws and regulations concerning these areas are still undergoing changes and are still in the process of being adapted to the corresponding laws in developed countries.

However, to meet the requirements of the GATT and WTO, India is obliged to provide minimum standards in the different areas of intellectual property (ibid.). Nevertheless, the USTR (Office of the United States Trade Representatives) argued that India’s unreasonable intellectual property protection (especially in the area of patent protection) is still inadequate and ineffective which burdens and restricts foreign commerce. Furthermore, India is not a member of the Paris Convention (Icon Group, 2000).

Copyright Act (1957)

“A copyright is an intangible, incorporeal right granted by the statute to the author or originator of a work whereby he obtains sole and exclusive privilege of reproducing the work for a limited period” (Ernst & Young India, 2005a:70). The copyright law in India has been changed from time to time to keep track of the changing requirements, especially of the technological developments like computer software or digital technology. Now it fully reflects the requirements of the Berne Convention on Copyrights, while India is also party to the Geneva Convention for the Protection of Rights of Producers of Phonograms, to the Universal Copyright Convention, and to the World Intellectual Property Organization(ibid.).

However, the enforcement responsibility of these copyright laws is given to the individual state governments, and because of different documentary and procedural requirements, only a few cases have been dealt with recently (Icon Group, 2000).

Trademarks Act (1999)

A trademark is used to distinguish a product from other ones, and it may consists of a (invented) word, signature, brand, label, name written in a particular style, special shape of the good, a combination of colours, and so forth. Under the Trademarks Act (1999), trademarks for goods and services (including collective marks) can be registered in India – also when it is a foreign trademark. There is an appellate board responsible for speedy disposal of appeals, for improvement the applications, for simplification of procedures for

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registration, for enlarging the scope of the permitted use of the trademark, and for the prohibition on the use of someone else’s trademark. Furthermore, the Act is compatible with the TRIPS (intellectual property) agreement of the WTO (Ernst & Young India, 2005a).

However, the registration of a trademark license is still highly bureaucratic and time- consuming (Icon Group, 2000).

Geographical Indication of Goods Act (1999)

Geographical indication means identifying where a good comes from, and when quality, reputation, or other characteristics of that good are especially attributable to its geographical origin. The Geographical Indication of Goods Act (1999) was designed to protect the use of geographical indication from infringements, and to defend consumers from confusion and deception. That is why all names and trademarks have to be marked with the country of origin, and the bill of lading, while the commercial invoice and packing list must show the country of origin, description, quantity, and value of goods. Applications for the Geographical Indication of Goods can be received from the Geographical Indications Registry at Chennai (Ernst & Young India, 2005a).

Indian Patents Act (1970)

“A patent is a monopoly right granted to a person for the invention of a new and useful article, improvement of an existing article, or formulation [of] a new process for making an article”

(ibid.:73). The Indian Patents Act (1970) assures for the grant, revocation, registration, license, assignment, and infringement of patents. Infringement is punishable under the Act, meaning that any person who undertakes anything to which only the patent owner is entitled to undertake (without a license grant of the patent owner), will be punished. At present, the Indian government is undertaking a project to improve and modernize the patent offices (located in Calcutta, New Delhi, Chennai, and Mumbai), and in order to fulfil the obligations of the WTO agreement, India has become an active member of the International Convention for the Protection of Industrial Property, GATT, and TRIPS agreement (ibid.). Nevertheless, India’s patent protection has to be considered as weak by international comparison (Icon Group, 2000).

Despite these intellectual property rights, the EU is worried about provisions related to compulsory licensing (e.g. for the only reason that it is an imported good and not produced in India) and unclear provisions which may lead to TRIPs-contradictory practices over time (e.g.

the exclusion of special types of innovations from patentability) (European Commission, 2004).

Anti-trust regulations

Since any forms of trust or monopolies minimize the normal market competition and yields undesirable price controls, anti-trust regulations are designed to protect the free enterprise from the open market. This is done by making illegal private conspiracy complots and coalitions formed to minimize competition, mainly by price-fixing (entities agreeing to set fixed market prices) or unfair allocation of markets or customers (entities agreeing to limit their areas of trade). The Indian anti-trust regulatory framework comprises the following three legislations.

Monopolies and Restricted Trade Practices Act (1969)

The Monopolies and Restricted Trade Practices (MRTP) Act governs the activities and practices of all industrial enterprises which are engaged in the production, storage, supply, or distribution of goods, and it particularly prohibits the following three practices:

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• Restrictive trade practice: which restricts competition by manipulating prices or affecting the flow of supplies of goods.

• Unfair trade practice: e.g. falsely representing the characteristics, performances, benefits of a product

• Monopolistic trade practice: with the effect of maintaining price levels unreasonably high or preventing / limiting competition.

Nevertheless, there are exceptions to the restrictive trade practices (which are called gateways), specifically when there is a public interest for allowing restricted competition (Ernst & Young India, 2005a).

Competition Act (2002)

The Competition Act, which shall replace the MRTP Act, tries to promote and sustain competition in markets (by prohibiting anti-competitive agreements), protect the interest of consumers (by prohibiting the abuse of dominant positions), ensure freedom of trade (by regulating combinations), and provide for the establishment of the quasi-judicial body CCI (i.e. the establishment of it and specifying its powers, functions, and duties).

Consumer Protection Act (1986)

The Consumer Protection Act serves the purpose of protecting consumer interests by establishing consumer councils to settle disputes, by requiring entities not to employ ‘unfair’

or ‘restrictive’ trade practices, and by ensuring that consumers do not suffer defective goods.

However, India is generally afflicted with a slow bureaucracy and regulatory bodies to tackle monopoly and fair trade regulations (Icon Group, 2000).

Arbitration and Conciliation Act (1996)

Arbitration is a legal proceeding to settle a dispute by a third party, which is chosen by both sides of the quarrel (Pons, 1999). The Act has been decreed, besides other reasons, to cover domestic and international arbitration, to make provisions for a fair and efficient arbitration procedure, and to minimize the role of the courts in the process. It is essentially based on the Model Law on International Commercial Arbitration implemented by the United Nations Commission on International Trade Law, of which the most important feature is that its laws have harmonized the concepts on arbitration of the different legal systems the world. (Ernst &

Young India, 2005a)

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APPENDIX 7: MAJOR INDUSTRIES

Table A7.1: Major industries in the individual states

State Major industries

Andaman and Nicobar Islands n.a.

Andhra Pradesh Automobile and auto components industries Bulk drug and pharmaceuticals

Horticulture Poultry farming Spices

Mines, and minerals

Textiles and apparel industry IT industry

Arunachal Pradesh Timber, rice, and oils mills Soap and candle making

Sericulture (for production of raw silk) Handicrafts

Assam Agriculture (mainly)

Textile manufacturing Cement production Oil refining

Bihar Agriculture (mainly): rice, sugar, edible oil Power

Textiles Oil refinery

Engineering industries Tobacco

IT industry

Chandigarh Soft drinks

Electric meters Antibiotics

Electronic components and equipment Bio-medical equipment

Tractor parts

Cement pipes and tiles Washing machines

Chhattisgarh Agriculture Dadra and Nagar Haveli Agriculture

Daman and Diu Agriculture

Fishing

Delhi n.a.

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XLIII

Goa Fisheries cultivation

Electronic industry Mining

Iron ore Arts and crafts Handicrafts

Pottery and terra-cotta Brass metal ware craft Wood turning

Crochet and embroidery Bamboo craft

Fiber craft

Jute macrame craft Coconut mask carving

Gujarat Agro and food processing

Bio technology

Chemical and allied industry Drugs and pharmaceuticals

Engineering industry (incl. automotive industry) Gems and Jewellery

Information and IT enables services Mining and mineral based industry Textile industry and apparel Tourism

Haryana Automobile and auto parts

Bicycle industry Tractors industry Machinery industry Consumer durables Handloom & handicrafts Sanitary ware & glassware Scientific instruments

Himachal Pradesh TRADITIONAL:

Handicrafts Handlooms Wool

Khadi and village industry Wax based industry SUNRISE INDUSTRIES:

Bio technology

Agro and food processing industry Floriculture

Herbal and medical plants Tea

POTENTIAL FOR:

Forest based industry IT

Recreation and entertainment industry

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XLIV

Jammu and Kashmir Minerals

Gems and jewellery Floriculture

Horticulture Electronics Tourism

Jharkhand Coal

Cooking coal Copper Iron ore

Mica, bauxite, quartz, ceramics (largest steel plant)

Karnataka Automobiles

Electronics and telecommunication Agro food processing

Apparel IT

Bio technology Handicraft Tourism

Kerala Sea food and marine products

Textiles and garments Spices

Electronics

Minerals and clay based products Bio technology

Light engineering Petro chemicals Rubber products Herbal products Tourism

Computer software

Lakshadweep Coconut cultivation

Mushroom and vanilla cultivation Coir sector

Madhya Pradesh Optical fibres

Automobiles Soya beans Processing Cement Fertilizer Paper and pulp Tyre and tubes gases Electronics

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XLV

Maharashtra Automobiles

Food processing Leather

Floriculture

Manipur Agriculture (mainly)

Pharmaceuticals Steel re-rolling Plywood

Bamboo chipping Cement

Electronics

Meghalaya Cement

Plywood

Beverage factories Electronics Fruits and crops

Mizoram Agriculture

SMALL SCALE INDUSTRIES:

Sericulture

Handloom and handicrafts Sawmills and furniture Oil refining

Grain milling Ginger processing

Nagaland Agriculture (90%)

Sugar mill and distillery Bricks

Television Molasses mill Rice mills

Fruit-canning plants Paper and pulp Plywood

Cabinet and furniture

Orissa Agriculture

Forest based industry

Minerals (fero alloy, aluminium) Cement

Paper Sugar Fertilizer Iron and steel Handloom IT

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XLVI

Pondicherry Hardware IT industry

Agro based industries Bio technology Auto components Metals

Textiles Leather Tourism

Punjab Animal husbandry

Electronics Pharmaceuticals Poultry farming Textiles

Machine manufacturing IT

Rajasthan Mineral based industries

Agro based industries

Sikkim Agriculture (mainly)

Fruit hams and juices Bakery products Beer

Plastic goods

Wristwatches and leather goods Traditional handicraft

Tourism

Tamil Nadu Mineral based industry

Leather Engineering Pharmaceuticals

Cotton textile and hosiery Readymade garments Agro based industry Chemicals

UPCOMING INDUSTRIES:

Electronics Software

Consumer durables Biotech food Food processing

Rubber and plastic products Tourism

Hotels

Financial services

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XLVII

Tripura Modern agriculture (mainly)

SMALL SCALE:

Cottage (weaving, carpentry, basketry) Tea, sugar, canned fruit

Agricultural implements Bricks

Footwear

Spinning, jute, steel mills Plywood

Pharmaceutics

Uttaranchal Agriculture

Uttar Pradesh n.a.

West Bengal Leather

Tea Jute

Engineering Paper

(Source: Economy watch, 2005)

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XLVIII

APPENDIX 8: INDIAN COMPETITORS

Below, a list of all addresses of the seven largest stamping ink manufacturers in India can be found.

1. Chintan Industries

61, Anand Industrial Estate, M.S. Road, Raghunath Nagar, Thane – 400 604

Phone: 0091-22-2583 2758 Fax: 0091-22-2583 7097

Website: http://chintanind.com 2. Industrial Research Corporation Mr. J. Rajaram

19, 12^th Main Road Malleshwaram West Bangalore 560 055

Phone: 0091-80-2334 1567 / 2335 1585 / 2340 0394 Fax: 0091-80-2331 2659

Website: http://www.brilindia.com 3. Kores International Pvt. Ltd.

Mr. Brain Dsouza Kores House,

Off. Dr. E. Moses Road, Worli, Mumbai 400 018, Maharashtra Phone: 0091-22-2496 4636 Fax: 0091-22-2495 0401

Website: http://www.kores-india.com 4. Kraycol Stationery Pvt. Ltd.

1, P.P. Industrial Estate, Deepanjali Nagar, Bangladore 560 026

Phone: 0091-80-2674 5617 / 2674 5742

5. National Industries Mr. Ajay Grover

K-30, Kirti Nagar, New Delhi, 110 015

Phone: 0091-11-2545 3658 / 3093 2500

Email: national_industries1955@yahoo.com

6. Sri Sathya Sai Industries Mr. Y.H. Solanki

Hari-Kanchan, Plot No-176 Sector-21

Nerul, Navi Mumbai, 400 706 Phone: 0091-22-2771 0145 Fax: 0091-22-2770 6910

Email: yudhviram@hotmail.com 7. Zebra Stationery

10, Chhapra Bldg, R.K. Vaidya Road, Dadar (W)

Mumbai, 400 028 Phone: 0091-22-2430 6793 / 2430 2023 Fax: 0091-22-2436 2023

Email: sales@zebrastationery.com Website: http://www.zebrastationery.com

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XVIII

APPENDIX 9: EXHIBITIONS IN INDIA

Table A9.1: Exhibitions in India

Date Place and topic Visitors

06.07.2005 - 12.07.2005

Coimbatore (Indien) INTEC - Industrial Trade Fair

n.a.

14.11.2005 - 17.11.2005

Chandigarh (Indien)

TEXTECH - International Exhibition an Conference on Textile Technology n.a.

14.11.2005 - 27.11.2005

New Delhi (Indien)

IITF - India International Trade Fair

3,080,000 (1999) Dezember

2005

Hyderabad (Indien)

World of Food India - Internationale Fachmesse für die Lebensmittel- Industrie

3,314 (2004) 06.12.2005 -

07.12.2005

Coimbatore (Indien)

Deutsches Textilmaschinensymposium Indien

n.a.

08.12.2005 - 10.12.2005

IFE India - Food & Drink Show

n.a.

Januar 2006 Chennai (Madras) (Indien) India International Leather Fair

45,000 (1998) Januar 2006 New Delhi (Indien)

IIGF - India International Garment Fair

672 (2003) 12.01.2006 -

17.01.2006

AUTO EXPO - Indian Automotive Industry Exhibition

800,000 (2004) 23.01.2006 -

25.01.2006

Componex/electronicIndia - International Conference and Exhibition of Electronic Components, Materials and Production Equipment

24,359 (2005) 09.02.2006 -

14.02.2006

PLASTINDIA – Internationale Fachausstellung und Kongress für die Kunststoffindustrie

500,000 (2000) 16.02.2006 -

20.02.2006

Bangalore (Indien)

Indiawood - Internationale Fachmesse für Holzbearbeitungsmaschinen und Fertigungszubehör

12,000 (2004) 28.02.2006 -

04.03.2006

TEX-STYLES INDIA - International Fair for Fabrics, Yarns, Thread, Textiles, Made-Up and Home Textiles, Furnishings and Accessories

8,285 (2005) März 2006 New Delhi (Indien)

AAHAR - Internationale Fachausstellung Maschinen und Ausrüstungen für die Nahrungsmittelverarbeitung

200,000 (2003) März 2006 New Delhi (Indien)

WISITEX - World Instrumentation and Industrial Electronics Symposium and Exhibition

130,000 (1994) März 2006 Kalkutta (Indien)

ILGF - International Leather Goods Fair

3,045 (2002) Juni 2006 New Delhi (Indien)

GARTEX - International Garment Machinery, Textiles and Accessories Exhibition

11,000 (1999) Juli 2006 Coimbatore (Indien)

INTEC - Industrial Trade Fair

n.a.

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XVIII

→ Juli 2006 New Delhi (Indien)

GARMENTECH INDIA - International Garment Machinery & Accessories

21,516 (2000) Juli 2006 New Delhi (Indien)

DILF - Delhi International Leather Fair

15,000 (1998) August 2006 New Delhi (Indien)

IIGF - India International Garment Fair

672 (2003) September

2006 Hyderabad (Indien)

International FoodTec India - International Exhibition and Conference for Food Processing and Packaging, Ingredients, Beverages, Cooling and Refrigeration

incl.

INDPAK - International Exhibition & Conference for the Packaging Industry

9,367 (2004)

12,480 (1998) September

2006

INDPAK - International Exhibition & Conference for the Packaging Industry

12,480 (1998) September

2006

BAUCONINDIA - International Exhibition & Seminars on Construction Technologies, Machinery, Material, Methods + Building Services

3,500 (2004) November

2006

IITF - India International Trade Fair

3,080,000 (1999) November

2006

Textile Processing India - Garment Production Technology and Textile Processing & Conference

n.a.

Dezember 2006

Pune (Indien)

AUTO - Indian Automobile Trade Fair

n.a.

Dezember 2006

World of Food India - Internationale Fachmesse für die Lebensmittel- Industrie

3,314 (2004) Januar 2007 Mumbai (Bombay) (Indien)

Global Food & Hospitality - Internationale Messe für Nahrungsmittel und Nahrungsmittelmaschinen

26,000 (2003) (Source: Auma, 2005)