NORTH EAST INDIA BAMBOO FURNITURE PICK-ABAMBOO PICK-ABAMBOO GROUP MEMBER Harleenkaur Isser Samarth singh Ritik Razdan Gopal Krushna Patra Harshita Sharma Richa Beck Subhamoy Dhali 21020241137 21020241122 21020241077 21020241092 21020241093 21020241115 21020241131 SPECIALIZATIONS Export of Furniture's Design of Bamboo furniture Manufacturer of Bamboo Furniture GUIDED BY Prof. Smita Santoki GET IN TOUCH www.linkedin.com/compa ny/pick-a-bamboo/ www.facebook.com/picka bamboo/ TABLE OF CONTENTS SECTOR SPEAK Introduction 04 Sector Details 05 Bamboo Furniture 06 Swot Analysis 08 SECTOR STATUS Insights of Indian Furniture Sector 09 Insights of Indian Bamboo Furniture 10 Covid Impact 12 MARKING MARKETS Exports of bamboo furniture Globally 13 Chambers of commerce 13 EXPLORING EXPORTS ENTRY Why Italy over other countries? 16 Mode of entry Chamber of Commerce and Embassy FTA, International Exhibition and Trade fair 17 Target Country Response 18 19 21 SECTOR SPEAK INTRODUCTION Bamboo the 'Green Gold' of North East Often described as ‘Vegetal Steel’, ‘Green Gold’ or ‘the Wise Man’s Timber’. Northeast India is geographically nestled in one of the most biodiversity-rich regions of the world. An invaluable gift of nature to the north east region. Accounts for over 65% of the country’s total bamboo resources. Unique features The humble grass can grow up to a height of 25 feet in 23 days while trees take close to 10 years to achieve the same height. The wet climate and the resultant moist and fertile soil further give impetus to the growth of this plant species. Bamboo crops absorb carbon dioxide and can generate up to 35% more oxygen than the same amount trees. it does not require chemicals, pesticides, fertilizers or watering to grow. Appropriate climate facilitates large scale of production of bamboo. It is perceived as one of the most important NonTimber Forest Product (NTFP) in the world. It is responsible for the contribution for our country’s rural economic development Bamboo improves, rather than depletes soil quality. Bamboo has a stronger structure than steel and is widely used in the construction industry Bamboo shoots are rich in fibre and potassium and have been a part of the daily diet in Asian countries for decades Unique Application Environmental ecological restoration reforestation Medicinal Bamboo vinegar used medicinally to treat eczema, and other skin diseases, and as an antiinflammatory and antifungal Raw material Food Industry 04 Paper Industry Sector Details Sector Over View India is the world’s second largest cultivator of bamboo after China, with 136 species and 23 genera spread over 13.96 million hectares. Total growing area of bamboo in north east region is 10,687 sq. km which is 61.36% of the total forest area. Over 1600 bamboo species in the world. India reportedly has about 120-150 species (about 15 commercial species) 31.5 million hectares of bamboo grown across the world. India has 30% of worlds bamboo resources- 15.69 million hectares. India taps one tenth of its bamboo potential contributing to 4% share of global market for bamboo products. Andhra Pradesh 6.4% Rest of India 16% North east region 42.6% Odisha 8.5% Chhattisgarh 8.5% Maharastra Madhya Pradesh 8.5% 9.6% Bamboo available in India Sikkim Arunachal Pradesh Manipur Assam Meghalaya Nagaland Tripura Mizoram 0 5,000 10,000 15,000 Bamboo area in north east in sq km In India In the north east region No of genera 29 16 No of Species 148 89 Total area under Bamboo(million hectare) 14.1 3.1 Bamboo resources across the country and North east region 05 BAMBOO FURNITURE T he National Bamboo Mission recognizes 13 commercial bamboo species in India of which in general the best quality is available in the NER: Bambusa balcooa, B.bambos, B.nutans, B.pallida, B tulda, B.vulgaris var. vulgaris, Dendrocalamus asper, D.giganteus, D. hamiltonii, D.strictus, Melocanna baccifera,Ochlandratra vancorica and O.parvifolia With a population of 1.3 billion inhabitants, India is one of the largest economies in the world that has experienced remarkable development in recent years. According to CSIL, India is the 4 th largest furniture-consuming country and the 5thlargest furniture producer at a global level. The Indian domestic furniture market is expected to expand at a CAGR of 12.91% during 2020- 24. Various furniture companies such as Pepperfry, FabFurnish, HomeTown, Urban Company, and others are creating huge demand from these online channels. With the changing consumer trends about design and functionality, as well as sensitivity to climate issues, bamboo furniture holds huge potential. With furniture having been identified by DPIIT as one of the critical ‘manufacture in India’ sectors, introduction to bamboo furniture designers and manufacturers to major buyers including Fab India, IKEA India, William Sonoma, Obetee. etc has been initiated. These are to be taken forward for traditional bamboo cane furniture, contemporary knock down ‘pack in a box’ furniture as well as from bamboo wood. SCHOOLS OFFICE HOMES Product profile : Bamboo can be used to produce virtually any kind of furniture, depending on the processing method, but is most commonly used for chairs, sofas, bookshelves, cabinets, tables and beds. Bamboo furniture is considered an excellent substitute for wood furniture, both in strength and quality. Traditional bamboo furniture has the added benefits of being lightweight, elegant and natural. On the other hand, laminated bamboo furniture, while it doesn’t retain the same organic characteristics of raw bamboo culms, more versatility to designers and is highly durable. In both cases, bamboo’s fast growth rate can an attractive point of difference to wood furniture, especially in western markets, where sustainability of the source is an increasingly important factor. S ocio-economic benefits : Bamboo-based industries are particularly attractive for those with limited capital. At the farm level, bamboo can be harvested in short rotation cycles, and can be cultivated with minimal agricultural inputs on small units of land that are unsuitable for food crops. It can thus a low-maintenance, regular income option for smallholder farmers and households. In addition, many of the components needed for making furniture, such as bamboo nails and bamboo splits, can be produced at the household level, which can provide an important source of income and empowerment to women and other disadvantaged groups. 06 North East Bamboo Furniture Bamboo is a rapid growing grass with an impressive variability. Bamboo is an excellent source for furniture production. The chemical composition and mechanical properties of the bamboo culm allow a broad use such as construction material. Bamboo furniture has been called as a green or eco-friendly material for furniture since the natural resources are being depleted. HS CODE It has some positive features like mechanical strength, easy process ability and availability in many tropical and subtropical areas which confer it attributes to become a renewable material as substitute of wood. Many wood processing companies have recently come to prefer bamboos for sustainable building material and furniture design with the growing trends in environment awareness. It can be used both in building structure, interior design and furniture structures to make long-lasting and competitive products due of its many advantages. PRODUCTS 94038200 Bamboo Furniture 94015200 Seats of Bamboo 07 SWOT ANALYSIS Strength Bamboo from north east are hard and durable to use It gives a beautiful and aesthetic look to the products High return on investment and can start with small amount of raw materials Good market potential Customer are aware of the value of bamboo furniture Cost of production is low Opportunity Handicrafts of bamboos are highly demanded. Development and innovation can be done in the design and quality. The knowledge of a proper processing of bamboo is needs to be well distributed. Light weight furniture which would be easy to move around. Green furniture Weakness Perception about bamboo furniture that it is not durable Low business literacy with the entrepreneurs and the group People many opt this as their part time thing to do Requires preservation (susceptibility to cracks and fungus) Highly susceptibility to fire Irregular shape of bamboo makes it difficult to work with it Threat Face a lot of competition Product substitution from wood. Comparing prices to cheaper mass produced articles such as plastic. Bamboo parquet is just a fashion trend and the interest in the product might diminish in the future The increasing popularity of synthetic materials as replacements for natural materials in interior and exterior applications is a threatening trend for bamboo and other natural materials 08 Sector Status INDIAN FURNITURE SECTOR INSIGHTS The growth in the infrastructure sectors, like real estate is responsible for the increased demand for commercial furniture in India. Increased per capita income of the middle class is boosting the Indian home furniture market. According to CSIL, India is the 4th largest furniture consuming country and 5th largest furniture producing country in the world. Moreover, the country is well-known for producing carved furniture and other specialized bamboo furniture. These are the key growth drivers of the home furniture industry in India. Major players in the industry include: PepperFry, FabFurnish, HomeTown, Urban Company and others. Ease of doing business policies in india also contributes to the success of establishment of this sector. The Indian domestic furniture market is expected to expand at CAGR of 09 12.91% during 2020-2024. INDIAN BAMBOO FURNITURE SECTOR India is the world’s second largest cultivator of bamboo after China, with 136 species and 23 genera spread over 13.96 million hectares. India’s annual bamboo production is estimated at upwards of 13.96 million tonnes. However, despite all this, the country’s share in the global bamboo trade and commerce is only 4 per cent. Nearly a quarter of total bamboo production in India is used by pulp industries & remainder is utilized for making a range of products. With the changing trends about design and functionability, as well as sensitivity to climate issues, bamboo furniture holds huge potential. With furniture being identified by DPIIT as one of the critical sectors for Make in India, introduction to bamboo furniture designers and manufacturers to major buyers has been initiated. Current Status of Bamboo in India Bamboo is known to be one of the Greatest Building Materials available today. Today, the diminishing wood resource and restriction on forest cutting has resulted in shifting the focus towards more renewable, environment friendly and widely available building material 10 Due to its rapid growth, adaptability to most climatic conditions, superior to most juvenile fast growing wood, Bamboo emerges as a very suitable alternative to the conventionally used resources. The ability of Bamboo to grow fast makes it an attractive harvest for farmers since it provides quick cash returns to them as compared to traditional cash harvest and timber yielding trees Additionally, government initiatives aimed at tackling the problem of erosion in forests and increasing awareness for the use of environment-friendly resources are further expected to propel the market in the upcoming years. Pioneers in this field are Kerala State Bamboo Corporation Ltd, Epitome Bamboowood Products, Ballarpur Industries Limited (BILT), Amlai Paper Mill, Green Gold Bamboo Tech Pvt. Ltd., Kolan India, Green Gold Bamboo Tech Pvt. Ltd., etc. In December 2017, the Indian Parliament passed a bill to declassify bamboo as a tree, thereby creating lucrative growth opportunities for mid- & small-scale manufacturers to produce processed bamboo products. These government policies are expected to provide new avenues for market growth. National Bamboo Mission: The Govt of India Under the National Bamboo Mission(NBM) has promoted the Bamboo Production and adopted methods to increase the area under bamboo cultivation It creates a complete value chain for the growth of Bamboo sector The scheme, directly and indirectly, benefits the farmers, local artisans, and associated people engaged in the bamboo sector, inclusive of the associated industries. 11 ANNUAL ALLOCATION OF FUNDS UNDER NATIONAL BAMBOO MISSION TO NORTH EAST STATES AMOUNT IN LAKHS PERCENTAGE INCREASE OR DECREASE Sl.no STATE 2018-19 2019-20 1 ASSAM 500 1494 1127.43 MANIPUR 450 MIZORAM 950 792 -19.95 NAGALAND 623.83 796 2 3 4 5 ARUNACHAL PRADESH Sl.no STATE 2020-21 +66.53 1 ASSAM 700 1355 +16.79 2 781 +42.38 3 MANIPUR 650 200 +21.63 4 5 MIZORAM NAGALAND 700 +55.84 6 SIKKIM 600 -0.82 7 TRIPURA 1000 Total 4650 6 SIKKIM 344.45 780 7 TRIPURA 1230 1220 Total 5225.71 7218 ARUNACHAL PRADESH +27.60 800 Covid Impact Why exports increased during pandemic? The increase in export can be attributed to two major factors which are ease in barriers for exports due to classification of bamboo as grass and not as a tree in 2017. During the pandemic government came up with various measures to ease exports. The global demand for the goods and commodities grew at a faster pace but the rise in price was slow. So most of the exporters were flushed with orders. As the exporters and logistic service providers have learnt to plan better and minimize the scope for disruptions. Most exporters managed to renegotiate with buyers and get better prices that take into consideration the higher logistics costs. Year Value(in lakh) Quantity(in 000's) 2018-19 45.89 500 2019-20 112.27 1127.43 2020-21 211.40 450 2021-22 36.11 950 The value of the bamboo furniture exported increased by 87.57% from 2019-20 to 2020-21, the major pandemic period where several disruptions in trade were observed. 12 Chambers of Commerce MARKING MARKETS India-Dubai Chamber of Commerce & Industry(IDCCI): Exports of bamboo furniture Globally Below are the countries which imported the highest dollar value worth of Bamboo from India in 2020-21. The table below shows that the top 3 countries which import Bamboo furniture from North eastern states of India are UAE, Netherlands and Portugal. The IDCCI is the primary governing body which facilities the trade relations between India and UAE. IDCCI cooperates with competent authorities in seeking members’ feedback on laws ,regulations and procedures relevant to enhancing the attractiveness of India & Dubai’s business environment. It also promotes social, cultural, recreational and educational activities for its members and their families. It is highly active chamber which conducts over 35 business and social events per year. Offers community service initiatives that are focused on offering business project support to low-income or disadvantaged entrepreneurs. 150 Value in Lakh Quantity in 000"s Netherland Denmark 100 50 0 UAE Portugal Germany Bamboo Furniture exports to different Countries 13 IDCCI provides various services to its members in order to update their knowledge and upgrade facilities: Seminars and workshops on matters relating to India-Dubai trade and Industry Participation in Trade fairs and exhibitions Organizing Buyer seller meet Promotion of Membership Interest Reports on specific sectors Corporate and financial information on potential buyers Setting up of Sales network Scouting and Selection of Staff Market analysis and identification of Investment and trade opportunities. Assistance in acquiring and in setting up factories and industrial units DUBAI -INDIA RETAIL SUMMIT Indo Dutch Chamber of Commerce: The Indo Dutch Chamber of Commerce(IDCBS) strengthens relations between the two countries in the fields of business and commerce. Indo Dutch Partnership mainly operates across water, Port Development, Logistics ,Healthcare ,Agriculture and Creative Industries. IDC Launching event For constant upgradation of facilities and providing updates to its members, IDCBS organizes seminars, business gatherings, workshops, bilateral meetings and roundtables. This business network is now active in some of the Indian Metropolitan Cities: Delhi(Embassy), Mumbai ,Bangalore, Hyderabad and Ahmedabad. IDCBS's proven track record of over 25 years in strengthening ties between the Indian and Dutch communities is demonstrated by its keenness to continuously seek ways to increase visibility to the larger Dutch companies looking to enter India, and equally, help Indian companies to set up base 14 in The Netherlands. Chamber of Commerce Portugal-India(CCPI) The CCPI fosters sustainable business at the corporate level between Portugese companies and their Indian Counter parties. The Chamber is a non profit private law association, governed by statuses and applicable law. The Chamber has been very active in maintaining synergies and eliminating trade barriers between the two parties. CCPI recommends professionals who can provide a comprehensive service for any foreign investor wishing to purchase property and apply for Portugal Golden Visa. It coordinates with Embassies and Consulates in both countries and accompany members if required to meet with potential Indian clients. It creates conditions with the government and institutions in Portugal to facilitate the vision and change the political rhetoric to include India as an additional nexus in their promotional strategy. Chamber Name India Dubai Chamber of Commerce (IDCCI) Indo Dutch Chamber of Commerce (IDCBS) Chamber of Commerce PortugalIndia (CCPI) Updates to Members Upgrading facilities Yes Yes Yes Yes Yes Yes 15 EXPLORING EXPORTS Why Italy over other countries? ENTRY Italy Eco-Sustainability-Over the years the concept of sustainability has become more and more conscious in the hearts of Italians and Bamboo products being known for their enduring and sustainable properties, would be the best choice to export to Italian Markets. It is an ecosustainable choice because the bamboo plant can grow up to one meter a day and entirely regenerates after 5 years – preventing soil erosion and absorbing CO2 four times faster than forests. Also Italy is ranked 15th in Global Sustainability Index Cost-effectiveness – Although the highest quality bamboo flooring in the market, Floor bamboo is still very competitive (30% cheaper than oak). 16 Market attractiveness: Due to people being more concerned about Environmental issues all across the globe, people are shifting towards more sustainable options. Italy is ranked 15th In Global Sustainability Index and being inclined towards Sustainability and Cost Effectiveness, it would be a perfect market for Indian Exporters to enter and mark their presence. As far as exporters’ profitability is concerned, mass production coupled with the cheap raw material and labor would lead to economies of scale. Competitive advantage: The major countries that are exporting bamboo furniture to Italy include USA, Vietnam, Indonesia, Thailand, China and EU. In comparison to the EU, India provides cheaper labor and Raw materials, whereas in comparison to other southeast Asian countries India provides better Government regulations. Company capabilities: The Indian subcontinent has nearly 89 bamboo species providing a rich diversity. The country has cheap labor that provides a cost effective benefit. Indian Handicrafts are known all over the world for their unique style and appearance. The traditional bamboo furniture of north east is world renowned and quite in demand especially due to the local tribes and artisans adding a unique touch. Better government policies: Since 2005,the Indian Govt. has taken various steps like the National Bamboo Mission(NBM) to promote bamboo business in and across boundaries. Challenges: Despite having a booming bamboo industry in India, the Geographical distance between India and Italy poses a major challenge in effective trade practices. However, Pick a Bamboo has overcome this hindrance by tying up with a third party logistics company, thereby ensuring timely delivery. MODE OF ENTRY B2C: Direct Export Mode. In this, we will export furniture or product to an ultimate importer or buyer in Italy. Payment will be made by the importer himself/herself. Payment will be received to the exporter’s bank A/c. B2B: Distributer Export Mode In this, we will export to a particular company who is interested in buying Bamboo Furniture to sell it to the ultimate consumers in Italy. Payment will be made by the company itself. Payment will be received to the exporter’s bank A/c. 17 Indo Italian Chamber of Commerce: Both the counties share a joint Chamber of Commerce known as The Indo-Italian Chamber of Commerce and Industry (IICCI). It accounts today for around 1000 members, from diverse sectors and industries, and has a panIndia presence, with its head office in Mumbai, regional offices in New Delhi, Kolkata, Chennai, and Bangalore. The IICCI offers an Integrated Package of Services to support Indian and Italian companies in specific sectors to make an entry and to develop their presence in the markets of relevance. IICCI organizes a wide range of events throughout the year: from Italian language courses to webinars and web masterclasses, from workshops and technical round-tables to conferences and seminars, from food & wine tastings to products launches and exhibitions, from business meetings to promotional roadshows. Embassies of India and Italy Indian Embassy is situated in Rome, Italy which maintains diplomatic relations and represent Indian interest in dealing with the govt. of Italy Indian Ambassador to Italy - Dr. Neena Malhotra Indian Embassy at Italy Italy Embassy at New Delhi India Italy has an Embassy in New Delhi and consulate generals in Mumbai and Kolkata. Italy Ambassador to India - Vincenzo de Luca 18 Free Trade Agreements (FTA) A Free trade Agreement (FTA) is an agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services. India and the European Union (EU) has recently announced their decision to resume negotiations for a balanced and comprehensive trade agreement after a gap of eight years The negotiations for the ambitious free trade agreement, launched in 2007, were suspended in 2013 amidst difference on crucial issues, including tariff rules and market access. Economic cooperation between the two sides has been grown despite the stalled FTA negotiations. Although India and the EU have not been able to tap into each other’s strengths, there is tremendous opportunity to overcome long-standing differences in trade relations. India, with its much-hyped demographic dividend, offers unparalleled markets to EU investors and an enabling FTA can accrue wide ranging economic gains to all stakeholders. Growth in India-EU trade and investment flows will be a win-win for both. A mutually beneficial FTA, will also support India’s need for technology transfer as it intends to build capacity to become part of global value chains. Exhibition organized by Export Promotion Council EPCH(Export Promotion Council for handicraft ) set up the India Pavilion that came up vibrantly with a variety of Indian crafts at the 24th edition of AF-L’ Artigiano in Fiera, Milan, Italy, an important annual event to promote handcrafted products from various parts of the world to Italy and other European markets. This edition featured more than 3200 exhibitors from 110 countries at the RHO Fiera Exhibition Centre, Milan. One of the EPCH participants Shri Suresh Chandra Das from Tripura demonstrate cane & bamboo craft skills through live training at the fair. Handicrafts of India have been known the world over for the exquisite and intricate craftsmanship. 19 24th edition of AF-L’ Artigiano in Fiera, Milan, Italy This pavilion was inaugurated by Mr. Shantmanu, IAS, Development Commissioner (handicrafts), Ministry of Textiles, Govt of India. He had a discussion about crafts and guided fellow participants about the current marketing scenario of Italy and requirement of further improvement in design, material, packaging in Italian market and interacted with the master craft persons deputed by O/o DCH to showcase and create direct market linkages with the overseas buyers. The Indian Handicrafts industry has been contributing substantially to the exports of India as also providing employment in the rural areas as well as city. More than six million Craftsperson’s are directly employed in the sector all over the country. Many millions are indirectly employed by the handicrafts sector in India in various aspects of manufacturing, processing, designing, packaging, presentation, research and analysis, marketing, shipping and exports. 20 TARGET COUNTRY RESPONSE 21 References 1. http://indiadubaichamber.com/services.html 2. https://www.idcbs.in/gallery.php#launching-events 3. http://www.ccpi.pt/welcome 4. https://www.nbm.nic.in/Documents/Letters/AnnualAllocation2020-21-NBM.pdf.pdf 5. https://www.nbm.nic.in/Documents/Letters/AnnualAllocation2020-21-NBM.pdf.pdf 6. https://www.inbar.int/ 7. https://www.indiastat.com/ 8. https://commerce.gov.in/ 9. https://www.sentinelassam.com/north-east-indianews/bamboo-the-green-gold-of-north-east-522723 10. https://worldbamboo.net/ 11. https://www.indiaitaly.com/ 12. https://www.dgft.gov.in/CP/ THANK YOU