After a proper marketing research and an accurate competitive prices analysis of Spices, come to the conclusion that, in general, there is a high difference between the production and the retail price. In specific, there is an increase value in order of 300-400% from manufacturing to the retail and 200-250% in wholesale. Moreover Indian products, in this sector, are famous and appreciate all over the world.
METHODOLOGY:
Artex Ventures made his own research in the market to find the best manufacture ready to work and satisfy the international requirement.
Thanks to the vastness and diversity of weather, India offers a high variety and quantity of products. In the same time, get a full scenario is also difficult, if not impossible, but through an accurate research and experience in the market, our staff could provide a short list of the best deal available in the market.
The market investigation took almost 3 months, during this time a lot of information and data were collected and analyzed.
The main matter is the quality, so on the suppliers of the final list, our staff made a personal control to check the information provided and make the required laboratory test.
In the follow table are reported prices for different products and different variety of each one.
PRODUCT AVAILABLE:
Turmeric
Origin:
Andhra Pradesh
QUALITY
INR/kg
€/kg
PremiumPowder
160
2
Regular Powder
100
1.20
Roots
80
1
Coriander
Origin:
Punjab
QUALITY
INR/kg
€/kg
Premium Powder
160
2
Regular Powder
100
1.20
Seeds regular
80
1
Seed premium
90
1.15
Black Pepper
Origin:
Andhra Pradesh
QUALITY
INR/kg
€/kg
Premium Powder
780
9.50
Regular Powder
300
3.90
Seeds
320
4
White Pepper
Origin:
Andhra Pradesh
QUALITY
INR/kg
€/kg
PremiumPowder
880
10.50
Seeds
624
7.80
Ginger
Origin:
Andhra Pradesh
QUALITY
INR/kg
€/kg
PremiumPowder
200
2.50
Regular Powder
100
1.25
Fresh Root
45
0.50
Dry Root
260
3.20
The following description is based on the White Pepper, but can be taken as an example for the others spices.
The spices offered you above are only some of the ones available in the market. Indian market is famous all over the world for the spices quality and varieties. So, do not hesitate to contact us for more details or more information on costs and time. For example, others spices available are like:
* Green Cardamom * Black Cardamom * Cinnamon * Cloves * Sesame * Cumin * Taj pat * Star Anise * Tamarind * Fenugreek * Asafetida * Red Chilly
Please, don’t hesitate to contact us to have further information or for any enquired. Our team is ready to collaborate with you for any needs and request.
STAGES AND COMPOSITE COST
* Spice (Black Pepper): It is a renowned spice all over the world present in a lot of dishes in different parts of the world. In the follow table are reports the best product price at this moment, but the final price will be define at the purchasing moment.
DESCRIPTION
PRICE INR + 5% GST
Price per Kg (€)
Per Tons (€)
GST/VAT
PremiumPowder
780
9.50
9500
5%
Regular Powder
300
3.90
3900
5%
The costs are reported in Table N.1 B.P Premium & N.2 B.P. Standard
* Packaging: the selection of it depend at firstly of the product’s characteristics: * Quality check: it is very important to show the size and quality of the product. So for this in preferable a transparent bag or boxes where it is easy to verified. * Quantity: for the final customers, in general it is preferable a small quantity since they are expensive and culturally preferable in small quantity to preserve the quality. It is also recommend resalable packages since they are used occasionally and in small portions. * Preservation: sometimes is also suggest a vacuum preservation of the product to warranty the quality and safe space during the transportation.
Grams
Price INR
GST 18%
100
3
0,54
150
3
0,54
200
3,5
0,63
250
3,5
0,63
500
4
0,72
7500
4
0,72
1000
5
0,90
The costs are reported in Table N.1 B.P Premium & N.2 B.P. Standard
Small Plastic Bottles: since the majority of spices are renowned and at contact with the air they lose their flavor and quality, another solution is in small plastic bottles.
Price INR
GST 18%
Ml
1,95
0,35
25
2
0,36
50
2,7
0,49
100
3,85
0,69
175
4,7
0,85
250
7,2
1,30
500
12
2,16
1000
Branding and Logo:The characteristics, shape, size of the label depends on the company’s needs. The logo and label can be also develop from our company in accordingly to the requirement of the final destination.
The costs are reported in Table N.1 B.P Premium & N.2 B.P. Standard.
* Packaging and Wholesale Packing: Another key point is to define the optimal route to send the products. In accordingly will be decide which kind and conditions of packing are required. It is important to calculate all the cost and considers different scenarios. Whenever a product has to be send abroad, it is important to consider the Pellet shape. The transportation company will provide the exactly size and shape in which the packaging has to fit. Moreover the way will be plan has to consider the wholesale part also (for example cannot be taken a single product, but a package of 12/20 products).
The costs are reported in Table N.1 B.P Premium & N.2 B.P. Standard.
* Terms of delivery and payment
STAGE
PAYMENT
TIMING
Spice
100% Advance
Immediately available
Packaging
100% Advance
Production and delivery of goods 25-30 days
Label
100% Advance
Production and delivery of goods 5-10 days
Packing boxes
100% Advance
Production and delivery of goods 5-10 days
Delivery services
100% Advance
Depends of the mode
Table N.1 Calculation of the cost of Black Pepper Premium
Black Pepper Premium
Grams
1
tax 5%
2
Tax 18%
3
tax 5%
4
tax 5%
Ʃ INR
Ʃ TAX
TOT INR
TOT
€
100
80
4
3
0.54
0.4
0.02
0.63
0.03
84.03
4.59
88.62
1.11
150
120
6
3
0.54
0.5
0.03
1.26
0.06
124.76
6.63
131.39
1.64
200
160
8
3.5
0.63
0.6
0.03
2.52
0.13
166.62
8.79
175.41
2.19
250
200
10
3.5
0.63
0.7
0.04
4.41
0.22
208.61
10.89
219.50
2.74
500
400
20
4
0.72
0.8
0.04
6.19
0.31
410.99
21.07
432.06
5.40
750
600
30
4
0.72
1
0.05
6.14
0.31
611.14
31.08
642.22
8.03
1000
800
40
5
0.9
1.3
0.07
12.34
0.62
818.64
41.58
860.22
10.75
The prices shown in the table are in the local Indian currency (INR), the final price is calculated in € with an exchange rate of € 1 = INR 80. Obviously this value is indicative, it depends on the exchange rate at the time of the agreement.
Table N. 2 Calculation of the cost of Black Pepper Standard
Black Pepper Standard
Grams
1
tax 5%
2
Tax 18%
3
tax 5%
4
tax 5%
Ʃ INR
Ʃ TAX
TOT INR
TOT
€
100
80
4
3
0.54
0.4
0.02
0.63
0.03
84.03
4.59
88.62
1.11
150
120
6
3
0.54
0.5
0.03
1.26
0.06
124.76
6.63
131.39
1.64
200
160
8
3.5
0.63
0.6
0.03
2.52
0.13
166.62
8.79
175.41
2.19
250
200
10
3.5
0.63
0.7
0.04
4.41
0.22
208.61
10.89
219.50
2.74
500
400
20
4
0.72
0.8
0.04
6.19
0.31
410.99
21.07
432.06
5.40
750
600
30
4
0.72
1
0.05
6.14
0.31
611.14
31.08
642.22
8.03
1000
800
40
5
0.9
1.3
0.07
12.34
0.62
818.64
41.58
860.22
10.75
The prices shown in the table are in the local Indian currency (INR), the final price is calculated in € with an exchange rate of € 1 = INR 80. Obviously this value is indicative, it depends on the exchange rate at the time of the agreement.
NOTE:
* The calculation does not include the cost of delivery to the manufacturer in India of: * Packaging * Labels ( customize information) * Packing boxes ( transportation logistic) * Transportation from the Spices manufactures to the packing factory * The calculation does not include the cost of shipping finished products from the manufacturing plant to the port of Mumbai. Due to the fact that the technical task for wholesale packaging was not given, the calculation does not include consumables for wholesale packaging and bulk packaging of goods.
* Export Costs The final product will be ready for the international market, only after fulfil the following points:
* Additional laboratory tests for certification and obtaining a European certificate (in India, 1 test for 50 $ ) * Goods’ delivery to the Customer: the final price of delivery can be calculated only with complete information about the order (Fill in the form No. 5) * Customs brokerage services. * Customs clearance: duty and VAT. * Banking financial services (1% of the contract amount)
* Service Cost: depends of mutual factors: order size, frequency, conditions, and request. We will inform you about our percentage after understanding the previously points.
We are looking forward to build a mutual beneficial corporation between our companies. Please feel free to ask us any kind of information, we are ready to answer all your questions.